H.B. No. 2644
1-1 AN ACT
1-2 relating to the regulation of real estate appraisers; providing
1-3 civil and criminal penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 3(14), Texas Appraiser Licensing and
1-6 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
1-7 is amended to read as follows:
1-8 (14) "State licensed real estate appraiser" means a
1-9 person who is licensed under this Act.
1-10 SECTION 2. Section 5, Texas Appraiser Licensing and
1-11 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
1-12 is amended to read as follows:
1-13 Sec. 5. Powers and duties of board. The board may:
1-14 (1) adopt rules for the licensing and certification of
1-15 real estate appraisers in this state in accordance with this Act
1-16 and consistent with, but no more stringent than, applicable federal
1-17 law;
1-18 (2) establish categories of appraiser certification
1-19 and appraiser licensing, consistent with the categories of
1-20 appraiser certification and appraiser licensing recognized by the
1-21 Appraiser Qualifications Board, the Appraisal Standards Board, and
1-22 the Appraisal Subcommittee, and prescribe qualifications for each
1-23 category that are no more stringent than the qualifications
1-24 required by the Appraiser Qualifications Board, the Appraisal
2-1 Standards Board, and the Appraisal Subcommittee for each category;
2-2 (3) adopt rules relating to the education and
2-3 experience requirements for certification and licensing as an
2-4 appraiser in a manner that is consistent with, but no more
2-5 stringent than, the threshold requirements adopted by the Appraiser
2-6 Qualifications Board or the Appraisal Subcommittee;
2-7 (4) adopt rules relating to the qualifying examination
2-8 required for certification or licensing as an appraiser under this
2-9 Act;
2-10 (5) adopt rules establishing a code of professional
2-11 conduct and ethics for a certified or licensed appraiser that meets
2-12 the standards generally accepted by the Appraisal Subcommittee and
2-13 prescribed by the Uniform Standards of Professional Appraisal
2-14 Practice;
2-15 (6) establish reasonable fees to implement this Act,
2-16 including an application fee for certification or licensing, an
2-17 examination fee, a renewal fee for a certificate or license, a
2-18 federal appraiser registry fee, and <any> other appropriate fees
2-19 <fee required by law>;
2-20 (7) adopt rules relating to continuing education
2-21 requirements for a licensed or certified appraiser;
2-22 (8) adopt rules relating to the standards for the
2-23 development of a written appraisal by a certified or licensed
2-24 appraiser that are consistent with the appraisal regulations
2-25 adopted by a federal financial institution regulatory agency or the
2-26 Uniform Standards of Professional Appraisal Practice; <and>
2-27 (9) grant or deny an application for the certification
3-1 and licensing of a real estate appraiser;
3-2 (10) institute an action in its own name in a district
3-3 court of Travis County against a person, firm, corporation,
3-4 partnership, or any other group or combination of persons to enjoin
3-5 a violation of this Act or a rule adopted by the board under this
3-6 Act with the attorney general as legal advisor to the board to
3-7 provide any necessary legal assistance;
3-8 (11) adopt rules as necessary to conform with the
3-9 minimum written standards of the Appraisal Subcommittee; and
3-10 (12) conduct disciplinary proceedings with regard to
3-11 appraisers in this state except in circumstances when an appraiser
3-12 is required to be licensed or certified by another state agency to
3-13 perform property appraisals.
3-14 SECTION 3. Sections 6(a), (b), (f), and (i), Texas Appraiser
3-15 Licensing and Certification Act (Article 6573a.2, Vernon's Texas
3-16 Civil Statutes), are amended to read as follows:
3-17 (a) The Texas Appraiser Licensing and Certification Board is
3-18 created as an independent subdivision of the Texas Real Estate
3-19 Commission. The board is composed of eight members appointed by
3-20 the governor with the advice and consent of the senate and the
3-21 executive secretary of the Veterans' Land Board or that person's
3-22 designee, who shall serve as a voting member of the board.
3-23 (b) An appointment to the board must be made without regard
3-24 to race, color, religion, sex, disability <handicap>, familial
3-25 status, national origin, or <the> membership in any appraisal
3-26 organization of the appointee.
3-27 (f) The appointed members of the board shall hold office for
4-1 terms of two years. Two appraiser members and two public members
4-2 shall serve terms that expire on January 31 of each odd-numbered
4-3 year. Two appraiser members and two public members shall serve
4-4 terms that expire on January 31 of each even-numbered year. An
4-5 appointed member qualifies by taking the constitutional oath of
4-6 office within 15 days after appointment. At a regular meeting in
4-7 February of each year, the members of the committee shall elect
4-8 from among the membership a chair <chairman>, a vice-chair
4-9 <vice-chairman>, and a secretary who together form the executive
4-10 committee. No appointed member may serve for more than three
4-11 consecutive two-year terms.
4-12 (i) If the chair <chairman> of the board has knowledge that
4-13 a potential ground for removal exists, the chair <chairman> shall
4-14 immediately notify the governor.
4-15 SECTION 4. Section 7, Texas Appraiser Licensing and
4-16 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
4-17 is amended to read as follows:
4-18 Sec. 7. Powers and duties of commissioner. The commissioner
4-19 shall:
4-20 (1) disseminate information and administer <enforce>
4-21 rules adopted by the board under this Act;
4-22 (2) review an application for the certification or
4-23 licensing of a real estate appraiser and make a recommendation for
4-24 final action to the board;
4-25 (3) review and make recommendations to the board
4-26 concerning the adoption of rules relating to:
4-27 (A) the licensing and certification examination;
5-1 (B) education and experience requirements for
5-2 licensing and certification;
5-3 (C) continuing education for a licensed or
5-4 certified appraiser;
5-5 (D) standards of professional practice and
5-6 ethics for a certified or licensed appraiser;
5-7 (E) standards for a real estate appraisal
5-8 performed by a certified or licensed appraiser; and
5-9 (F) the fees <fee> to be established by the
5-10 board to be charged for the implementation of this Act;
5-11 (4) collect fees established by the board; and
5-12 (5) <conduct any reviews and make recommendations as
5-13 the board may prescribe by rule regarding disciplinary actions for
5-14 a licensed or certified appraiser and the enforcement of this Act;
5-15 and>
5-16 <(6)> perform any other duty prescribed by the board
5-17 under this Act.
5-18 SECTION 5. Section 9(e), Texas Appraiser Licensing and
5-19 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
5-20 is amended to read as follows:
5-21 (e) An applicant for certification or licensing must furnish
5-22 under oath, on an affidavit <a> form prescribed by the board, a
5-23 statement that the applicant has the equivalent of 2,000 hours of
5-24 experience in performing appraisals. If a consumer complaint or
5-25 peer complaint is brought against the applicant alleging fraud,
5-26 incompetency, or malpractice and the board finds the complaint is
5-27 reasonable or if the board determines other just cause exists for
6-1 requiring further information, the board may obtain the additional
6-2 information or documentation requested by:
6-3 (1) requiring the applicant to complete a form,
6-4 prescribed by the board, that includes detailed listings of
6-5 appraisal experience showing, for each appraisal claimed by the
6-6 applicant, the city or county where the appraisal was performed,
6-7 the type and description of the building or property appraised, the
6-8 approaches to value utilized in the appraisal, the actual number of
6-9 hours expended on the appraisal, and other information determined
6-10 to be appropriate by the board; or
6-11 (2) engaging in other research determined to be
6-12 appropriate by the board<, information on the applicant's real
6-13 estate appraisal experience for each year that experience is
6-14 claimed by the applicant. The form must include a cumulative total
6-15 of hours expended in each area of acceptable appraisal experience.
6-16 If after investigation the board determines that a preponderance of
6-17 evidence exists that fraud or misrepresentation occurred at the
6-18 time of application, the board may request additional information
6-19 on the appraisal experience. That form must include information as
6-20 to the city or county, the type and description of the building or
6-21 property appraised, and the number of hours expended for each
6-22 appraisal. The board may not request further documentation of an
6-23 applicant's experience unless a consumer complaint or peer
6-24 complaint of fraud, incompetency, or malpractice is substantiated
6-25 through a formal hearing process held under this Act or the board
6-26 determines that other just cause exists for reviewing further
6-27 documentation>.
7-1 SECTION 6. Sections 10(a), (b), and (e), Texas Appraiser
7-2 Licensing and Certification Act (Article 6573a.2, Vernon's Texas
7-3 Civil Statutes), are amended to read as follows:
7-4 (a) The board shall prescribe an appraiser examination. The
7-5 examination must be written and must be approved by the Appraisal
7-6 Foundation or its successor agency. The examination must be
7-7 consistent with, but no more stringent than, the Uniform State
7-8 Certification/Licensing Examination guidelines endorsed by the
7-9 Appraiser Qualifications Board. The board may contract with a
7-10 testing service to administer the examination. The testing service
7-11 may collect an examination fee from an applicant for certification
7-12 or licensing.
7-13 (b) An application to take the examination must be on a form
7-14 prescribed by the board <and be accompanied by an examination fee>.
7-15 (e) An applicant for licensing or certification must achieve
7-16 the minimum score required or approved by the Appraiser
7-17 Qualifications Board, whichever is less, to pass an examination.
7-18 The board shall notify each person taking an examination whether
7-19 the person has passed or failed the examination not later than:
7-20 (1) the 31st day after the examination date; or
7-21 (2) if the examination is graded or reviewed by a
7-22 national testing service, the 31st day after the date on which the
7-23 board <department> receives the results from the national testing
7-24 service.
7-25 SECTION 7. Section 12, Texas Appraiser Licensing and
7-26 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
7-27 is amended to read as follows:
8-1 Sec. 12. ENFORCEMENT PROCEEDINGS <INVESTIGATION;
8-2 SANCTIONS>. (a) Except as otherwise provided by this Act,
8-3 proceedings under this Act shall be conducted in accordance with
8-4 the Administrative Procedure and Texas Register Act (Article
8-5 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
8-6 amendments <The commissioner may investigate the actions of a
8-7 state certified or state licensed appraiser and may make
8-8 recommendations to the board on an administrative sanction,
8-9 including revocation of a license or certification, for the
8-10 violation of this Act or a rule adopted under this Act>.
8-11 (b) A complaint that alleges that an appraiser licensed or
8-12 certified under this Act has violated a rule of professional
8-13 conduct adopted by the board shall be filed with the board. The
8-14 complaint process under this section may be initiated by any
8-15 person, including a member of the board, by filing with the board a
8-16 written complaint on an affidavit form prescribed by the board.
8-17 The board may, on its own motion, file a formal complaint against
8-18 an appraiser licensed or certified under this Act.
8-19 (c) On receipt of a complaint or on its own motion, the
8-20 board shall review and investigate alleged acts or omissions that
8-21 the board believes constitute cause for disciplinary action. To
8-22 determine if probable cause exists for a hearing on a complaint, an
8-23 investigator designated by the chair of the board shall investigate
8-24 the allegations contained in a complaint. If the board determines
8-25 that the complaint does not present facts that constitute a basis
8-26 for disciplinary action, the board may not take further action.
8-27 (d) The chair of the board with the advice and consent of
9-1 the executive committee may appoint a peer investigative committee
9-2 consisting of three real estate appraisers certified or licensed
9-3 under this Act. The chair of the investigative committee must be
9-4 an appraiser member of the board. Each remaining member of the
9-5 committee shall certify to the board that the member is familiar
9-6 with the appraisal process in the appraisal to be reviewed. The
9-7 investigative committee shall review and determine the facts of the
9-8 complaint and submit a written report to the board in a timely
9-9 manner.
9-10 (e) For the purposes of an investigation of a complaint, the
9-11 board may subpoena witnesses, books, papers, records, and other
9-12 evidence to determine whether the board should institute a
9-13 contested case proceeding.
9-14 (f) On completion of an investigation, a written report
9-15 containing statements of fact, the recommendations of the
9-16 investigator, and the position or defense of the investigated
9-17 appraiser shall be submitted by the investigator for the board to
9-18 determine what further action is necessary. Based on the report,
9-19 the board may:
9-20 (1) order that the matter be further investigated;
9-21 (2) permit the appraiser who is the subject of the
9-22 complaint to appear before the board for an informal discussion as
9-23 provided by Subsection (g) of this section regarding the alleged
9-24 violation;
9-25 (3) determine that probable cause does not exist to
9-26 believe that a violation occurred and dismiss the case; or
9-27 (4) determine that probable cause that a violation
10-1 occurred exists and proceed with a contested case hearing as the
10-2 complainant.
10-3 (g) The board may permit an appraiser under investigation an
10-4 opportunity to appear before the board for a voluntary informal
10-5 discussion of the facts and circumstances of an alleged violation
10-6 on the board's motion or on request of the appraiser. The informal
10-7 discussion constitutes part of the board's investigation of the
10-8 pending disciplinary case and the facts discussed at the informal
10-9 discussion may be considered by the board if the case proceeds to a
10-10 contested case hearing. The board may seek a consent order as
10-11 provided by Subsection (h) of this section at the time of the
10-12 informal discussion.
10-13 (h) The board may negotiate a settlement and enter into a
10-14 consent order with an appraiser who is under investigation. An
10-15 appraiser member of the board designated by the chair and the
10-16 attorney general may agree to negotiate a settlement under this
10-17 subsection. A proposed consent order shall be presented to the
10-18 board for approval and shall be binding if approved by the board
10-19 and signed by the board chair and the appraiser. A board member
10-20 who participates in negotiation of a consent order is not
10-21 disqualified from participating in adjudication of the contested
10-22 case that results from the negotiations. Consent to negotiation by
10-23 the appraiser constitutes waiver of the right to notice and the
10-24 opportunity to be heard under the Administrative Procedure and
10-25 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
10-26 Statutes) and its subsequent amendments during the settlement
10-27 negotiations. A prosecuting attorney may discuss informal
11-1 settlement with the board chair or a representative of the board.
11-2 If the parties agree to a consent order, a statement of charges
11-3 shall be filed with the consent order.
11-4 (i) The board, in its discretion and in lieu of prosecuting
11-5 a first-time violator of the rules of professional conduct adopted
11-6 by the board, may enter into a consent agreement as provided by
11-7 this subsection. An appraiser member of the board, designated by
11-8 the chair, and the attorney general may agree to negotiate a
11-9 consent agreement. The proposed consent agreement shall be
11-10 presented to the board for approval and shall be binding if
11-11 approved by the board and signed by the board chair and the
11-12 appraiser. Failure by the appraiser to comply with the terms of
11-13 the agreement constitutes grounds for prosecution.
11-14 (j) A certified or licensed appraiser who files a complaint
11-15 against another certified or licensed appraiser that the board
11-16 determines to be frivolous is liable for a civil penalty. At the
11-17 request of the board, the attorney general or a district or county
11-18 attorney may institute a civil action in district court to collect
11-19 a civil penalty under this subsection. A civil penalty under this
11-20 subsection may not be less than $500 or more than $10,000. A civil
11-21 penalty recovered in a suit instituted under this subsection shall
11-22 be deposited in the state treasury to the credit of the general
11-23 revenue fund.
11-24 SECTION 8. The Texas Appraiser Licensing and Certification
11-25 Act (Article 6573a.2, Vernon's Texas Civil Statutes) is amended by
11-26 adding Section 12A to read as follows:
11-27 Sec. 12A. CONTESTED CASE PROCEEDINGS. (a) The board shall
12-1 provide notice to the parties of a contested case hearing stating
12-2 the time and place of the hearing. The notice must contain a
12-3 statement requiring the appraiser to submit an answer as required
12-4 by Subsection (b) of this section not later than the 20th day after
12-5 the date of receipt of the notice. The notice, together with a
12-6 statement of charges, shall be personally delivered or mailed to
12-7 the appraiser by certified mail, return receipt requested, not
12-8 later than the 30th day before the hearing date. The statement of
12-9 charges shall be prepared by the prosecuting attorney and must
12-10 state the acts or omissions with which the appraiser is charged,
12-11 including the standards of professional practice or professional
12-12 conduct rules alleged to have been violated. The statement must be
12-13 in sufficient detail to enable the preparation of the appraiser's
12-14 defense.
12-15 (b) The answer filed by the appraiser must contain the
12-16 following:
12-17 (1) the name, address, and telephone number of the
12-18 appraiser;
12-19 (2) a specific statement regarding any or all
12-20 allegations in the complaint in the form of admissions or denials
12-21 and containing any explanations, remarks, or statement of
12-22 mitigating circumstances the appraiser determines to be relevant;
12-23 and
12-24 (3) any additional facts or information the appraiser
12-25 determines to be relevant to the investigation and that may assist
12-26 in the determination of the case.
12-27 (c) A statement of charges and notice of hearing prepared by
13-1 the board shall be reviewed and approved by the attorney general.
13-2 The attorney general shall provide legal representation for the
13-3 public interest in all proceedings before the board. An assistant
13-4 attorney general assigned to prosecute a contested case before the
13-5 board may not represent the board in that case but shall represent
13-6 the public interest.
13-7 (d) A contested case hearing may be conducted before a
13-8 majority of the board members and shall be open to the public. The
13-9 board may provide for an administrative law judge to act as
13-10 presiding officer to conduct the hearing for the board. The
13-11 designated presiding officer shall be in control of the proceedings
13-12 and may administer oaths, admit or exclude testimony or other
13-13 evidence, and rule on all motions and objections. The presiding
13-14 officer or other board members may conduct direct examination of
13-15 the witnesses at any stage of the witness's testimony. Contested
13-16 proceedings shall be recorded either by mechanical or electrical
13-17 means or by a certified shorthand reporter. The proceedings or
13-18 part of the proceedings shall be transcribed at the request of any
13-19 party, with the expense of the transcription charged to the
13-20 requesting party. The recording, stenographic notes, or
13-21 transcription of oral proceedings shall be filed with and
13-22 maintained by the board for not less than five years from the date
13-23 of the decision in the proceedings.
13-24 (e) A subpoena for books, papers, records, witnesses, or
13-25 other evidence shall be issued to a party on request. The
13-26 commissioner of the board shall issue subpoenas for both parties on
13-27 reasonable cause shown. A request may be verbal or written and
14-1 must specify the documents sought and the full names and addresses
14-2 of the witnesses sought. Discovery procedures applicable to a
14-3 civil action are available to the parties in a proceeding under
14-4 this Act. A party or the board may petition the district court for
14-5 its enforcement of a subpoena. If a proper showing is made, the
14-6 district court shall order the person to obey the subpoena.
14-7 (f) The board and presiding officer may conduct a hearing or
14-8 enter an order or judgment as the board determines appropriate for
14-9 an appraiser who received proper notice of the hearing but who
14-10 fails to appear in person at the hearing. The appraiser shall be
14-11 bound by the results of the hearing to the same extent as if the
14-12 appraiser had appeared.
14-13 (g) Before testimony may be presented in a contested case
14-14 hearing, the record must show the identities of the board members
14-15 present, of the presiding officer, and of the parties and their
14-16 representatives and must reflect that all testimony is being
14-17 recorded. The appraiser who is the subject of the proceeding may
14-18 challenge any member of the board for cause before the commencement
14-19 of the hearing. The members of the board, with the challenged
14-20 member abstaining, shall decide by a majority vote whether cause
14-21 exists for the challenge and whether the challenged member may
14-22 participate in the hearing. The board shall set dates, times, and
14-23 rules for hearings and shall rule on all issues. Hearings shall be
14-24 conducted in the following order, subject to modification at the
14-25 discretion of the board:
14-26 (1) the presiding officer shall read a summary of the
14-27 charges and answers to the charges and other responsive pleadings
15-1 filed by the appraiser before the hearing;
15-2 (2) the assistant attorney general representing the
15-3 public interest before the board shall make a brief opening
15-4 statement, including a summary of charges and the witnesses and
15-5 documents to support the charges;
15-6 (3) the appraiser may make an opening statement,
15-7 including the names of any witnesses the appraiser may call;
15-8 (4) evidence shall be presented for the state,
15-9 including a summary made at the close of the evidence on behalf of
15-10 the state;
15-11 (5) evidence shall be presented for the appraiser;
15-12 (6) rebuttal evidence may be presented for the state;
15-13 (7) rebuttal evidence may be presented for the
15-14 appraiser; and
15-15 (8) closing arguments are made first for the state,
15-16 then for the appraiser, and finally for the state on rebuttal.
15-17 (h) The presiding officer may grant immunity from
15-18 disciplinary action before the board to a witness only on the
15-19 unanimous vote of all members of the board hearing the case. The
15-20 official record of the hearing must include the reasons for
15-21 granting the immunity.
15-22 (i) Copies of documents offered as evidence at the hearing
15-23 shall be provided to opposing parties. Copies shall also be
15-24 provided to members of the board. To the extent the appraiser
15-25 believes the appraiser is being asked to reply to accusations,
15-26 charges, innuendos, or facts for the first time in the hearing, the
15-27 appraiser may respond to the evidence to the board either in
16-1 writing or at a subsequent scheduled meeting of the board.
16-2 However, the assistant attorney general assigned to prosecute the
16-3 case before the board shall be allowed to continue to present
16-4 evidence during the hearing.
16-5 (j) By a majority vote of the members hearing the contested
16-6 matter, the board shall make findings of fact and conclusions of
16-7 law and may take one or more of the following actions:
16-8 (1) dismissal of the charges, including an order that
16-9 the file in the case is confidential;
16-10 (2) suspension or revocation of the appraiser's
16-11 license or certification;
16-12 (3) imposition of a period of probation with or
16-13 without conditions;
16-14 (4) a requirement that the appraiser submit to
16-15 reexamination for licensing or certification as an appraiser;
16-16 (5) a requirement that the appraiser participate in
16-17 additional professional education or continuing education;
16-18 (6) issuance of a public or private reprimand or a
16-19 warning;
16-20 (7) issuance of a consent order; or
16-21 (8) imposition of an administrative penalty, the
16-22 amount of which shall be set at the discretion of the board at an
16-23 amount that may not exceed $1,000 for each violation or $5,000 for
16-24 multiple violations in one hearing, to be paid not later than the
16-25 20th day after the date of final disposition of the case.
16-26 (k) Not later than the 20th day after the date of issuance
16-27 of a final decision, a party may file an application with the board
17-1 for a rehearing stating the specific grounds for rehearing and the
17-2 relief sought. The application shall be denied if it is not
17-3 granted before the 20th day after the date of service on the
17-4 commissioner of the board. The decision made on the conclusion of
17-5 the original proceeding may not be reversed or modified for
17-6 procedural, evidentiary, or other error that did not cause
17-7 substantial injustice to the parties. The decision made on a
17-8 rehearing may incorporate by reference any and all parts of the
17-9 decision made at the conclusion of the original proceeding. On
17-10 rehearing, the board shall consider facts not presented in the
17-11 original proceeding if:
17-12 (1) the facts arose after the original proceeding was
17-13 concluded;
17-14 (2) the party offering the evidence could not
17-15 reasonably have provided the evidence at the original proceedings;
17-16 or
17-17 (3) the party offering the additional evidence was
17-18 misled by any party as to the necessity for offering the evidence
17-19 at the original proceeding.
17-20 (l) The final decision of the board shall be filed with the
17-21 commissioner. A copy of the decision and order shall immediately
17-22 be sent by certified mail, return receipt requested, to the
17-23 appraiser's last known address or may be served as in the manner of
17-24 an original notice on the appraiser.
17-25 (m) A person whose certificate or license has been revoked
17-26 or suspended by the board may apply to the board for reinstatement
17-27 in accordance with the terms of the order of revocation or
18-1 suspension. If the order of revocation or suspension does not
18-2 establish terms on which reinstatement may occur, an initial
18-3 application for reinstatement may not be made until the first
18-4 anniversary of the date the order became effective and successive
18-5 applications may not be made more often than once every two years.
18-6 (n) Final decisions of the board relating to disciplinary
18-7 actions, including consent agreements and consent orders, may be
18-8 transmitted to other states and made available to the public.
18-9 (o) A member of the board is entitled to quasi-judicial
18-10 immunity from suit for actions as a member of the board, provided
18-11 the actions are in compliance with the law.
18-12 SECTION 9. Section 13(a), Texas Appraiser Licensing and
18-13 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
18-14 is amended to read as follows:
18-15 (a) The board shall maintain a roster of individuals who
18-16 have received a state certification or a state license under this
18-17 Act. The roster must indicate the type of <whether any> license or
18-18 certification for each individual listed <is a transitional license
18-19 or certification or a temporary certification>.
18-20 SECTION 10. Section 14(b), Texas Appraiser Licensing and
18-21 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
18-22 is amended to read as follows:
18-23 (b) A license or certification may be renewed on payment of
18-24 a renewal fee prescribed by the board and on furnishing evidence
18-25 satisfactory to the board and the Appraiser Qualifications Board
18-26 that the holder of the license or certification has completed any
18-27 continuing education requirements imposed by rule under this Act,
19-1 met the experience requirements of this Act, and complied with any
19-2 minimum or maximum requirements of the Appraiser Qualifications
19-3 Board. The board shall accept as continuing education any
19-4 continuing education a licensed or certified appraiser was awarded
19-5 by a national appraiser organization approved by the board as a
19-6 provider of qualifying appraisal education.
19-7 SECTION 11. Section 15, Texas Appraiser Licensing and
19-8 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
19-9 is amended by adding Subsections (d)-(j) to read as follows:
19-10 (d) If the board determines that another state has
19-11 substantially equivalent certification or licensure requirements to
19-12 those of this state, an applicant who is certified or licensed
19-13 under the laws of that state may obtain certification as a state
19-14 certified real estate appraiser or licensure as a state licensed
19-15 real estate appraiser in this state under terms and conditions
19-16 determined by the board. The terms and conditions must comply with
19-17 the minimum criteria for certification or licensure issued by the
19-18 Appraiser Qualifications Board of the Appraisal Foundation. The
19-19 fee charged to an appraiser from another state and the form
19-20 submitted by the appraiser for reciprocity must be comparable to
19-21 the fee and form required by the state where the appraiser is
19-22 certified or licensed.
19-23 (e) An applicant for certification or licensure under this
19-24 Act who is not a resident of this state shall submit with the
19-25 application for certification or licensure an irrevocable consent
19-26 that service of process in an action against the applicant arising
19-27 out of the applicant's activities as a state certified real estate
20-1 appraiser or state licensed real estate appraiser in this state may
20-2 be made by delivery of the process to the commissioner of the
20-3 board, if the plaintiff in the action cannot, in the exercise of
20-4 due diligence, effect personal service on the applicant. If
20-5 process is served as provided by this subsection, the commissioner
20-6 shall immediately mail a copy of the materials served on the
20-7 commissioner by ordinary mail to the state certified real estate
20-8 appraiser or state licensed real estate appraiser at both the
20-9 appraiser's principal place of business and residence address.
20-10 (f) An application may not be accepted for an applicant from
20-11 a state that refuses to offer reciprocal treatment to residents of
20-12 this state who are certified or licensed real estate appraisers.
20-13 (g) The board shall seek verification from an applicant's
20-14 home state that the applicant's certification or license is valid
20-15 and in good standing. A reciprocal certificate or license may not
20-16 be issued without the verification required by this subsection.
20-17 (h) The holder of a certificate or license by reciprocity
20-18 must pay the federal registry fee and other fees that the board may
20-19 impose.
20-20 (i) A reciprocal certificate or license expires on the same
20-21 date that the certificate or license held by the applicant in the
20-22 applicant's home state expires or on the first anniversary of the
20-23 date the reciprocal certificate or license was issued, whichever
20-24 date occurs first.
20-25 (j) A reciprocal certificate or license is renewable under
20-26 terms and conditions determined by the board.
20-27 SECTION 12. Section 17, Texas Appraiser Licensing and
21-1 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
21-2 is amended to read as follows:
21-3 Sec. 17. Appraiser trainees. (a) The board may authorize a
21-4 person certified <or licensed> under this Act to sponsor an
21-5 appraiser trainee. An appraiser trainee may have more than one
21-6 sponsor. Each <The> certified <or licensed> appraiser and the
21-7 prospective appraiser trainee shall apply to the board for approval
21-8 of the appraiser trainee on a form prescribed by the board. The
21-9 board may set reasonable application and annual renewal fees for an
21-10 appraiser trainee. A prospective trainee must:
21-11 (1) be a citizen of the United States or a lawfully
21-12 admitted alien;
21-13 (2) be at least 18 years of age;
21-14 (3) be a legal resident of this state for at least 60
21-15 days immediately before the filing of the application; and
21-16 (4) satisfy the board as to the prospective trainee's
21-17 honesty, trustworthiness, and integrity.
21-18 (b) An appraiser trainee approved by the board may perform
21-19 an appraisal under the direction of one or more sponsors <the
21-20 trainee's sponsor>, one of whom <who> shall sign the appraiser
21-21 trainee's reports. A sponsor who signs a report shall <and> be
21-22 responsible to the public and to the board for the conduct of the
21-23 appraiser trainee. An appraiser trainee may co-sign a report under
21-24 this subsection. The board may reprimand an appraiser trainee or
21-25 suspend or revoke an appraiser trainee's authority to act as an
21-26 appraiser trainee for a violation of this Act or a rule adopted
21-27 under this section. A disciplinary proceeding involving an
22-1 appraiser trainee is governed by the Administrative Procedure and
22-2 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
22-3 Statutes).
22-4 SECTION 13. Section 18, Texas Appraiser Licensing and
22-5 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
22-6 is amended to read as follows:
22-7 Sec. 18. Broker's or salesman's license not required;
22-8 exemptions. (a) A person certified or licensed under this Act or
22-9 approved as an appraiser trainee under this Act <section> is not
22-10 required to be licensed as a real estate broker or salesman under
22-11 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
22-12 Statutes), and its subsequent amendments, <this Act> to appraise
22-13 real property in this state. A person certified or licensed as an
22-14 appraiser by another state is not required to be licensed as a real
22-15 estate broker or salesman <under this Act> to appraise real
22-16 property in this state <in connection with a federally related
22-17 transaction for which a federal financial institution's regulatory
22-18 agency or the Resolution Trust Corporation or its successor has
22-19 required the use of a state certified or licensed appraiser>.
22-20 (b) This Act does not prohibit:
22-21 (1) a real estate broker or salesman licensed under
22-22 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
22-23 Statutes) but not licensed or certified under this Act from
22-24 performing an appraisal in a nonfederally related transaction; <or>
22-25 (2) the requirement of a real estate broker's or
22-26 salesman's license for an appraisal in nonfederally related
22-27 transactions by a person not licensed or certified under this Act;
23-1 or
23-2 (3) a real estate broker or salesman licensed under
23-3 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
23-4 Statutes) and its subsequent amendments from giving an opinion in
23-5 the ordinary course of the broker's or salesman's business to a
23-6 potential seller or third party as to the recommended listing price
23-7 of real estate or to a potential purchaser or third party as to the
23-8 recommended purchase price of real estate if the opinion given
23-9 under this subdivision is not referred to as an appraisal.
23-10 SECTION 14. Section 21, Texas Appraiser Licensing and
23-11 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
23-12 is amended to read as follows:
23-13 Sec. 21. OFFENSES. (a) A person commits an offense if the
23-14 person knowingly or intentionally violates Section 4(c) of this Act
23-15 or knowingly or intentionally furnishes false information in
23-16 connection with an affidavit filed under Section 9(e) of this Act.
23-17 (b) An offense under this section is a Class B <C>
23-18 misdemeanor.
23-19 SECTION 15. This Act takes effect September 1, 1993.
23-20 SECTION 16. (a) A member of the Texas Appraiser Licensing
23-21 and Certification Board immediately before the effective date of
23-22 this Act continues to serve as a member of the board on or after
23-23 the effective date of this Act for the remainder of the member's
23-24 term. The governor shall make appointments to the board on or
23-25 after the effective date of this Act as terms of members of the
23-26 board expire and vacancies occur on the board, as follows:
23-27 (1) the first and third appraiser member appointment
24-1 and the first and third public member appointment made on or after
24-2 the effective date of this Act shall be for terms that expire on
24-3 January 31 of the odd-numbered year following the appointment; and
24-4 (2) the second and fourth appraiser member appointment
24-5 and the second and fourth public member appointment made on or
24-6 after the effective date of this Act shall be for terms that expire
24-7 on January 31 of the even-numbered year following the appointment.
24-8 (b) The change in law made by this Act to the application
24-9 requirements for licensing or certification as a real estate
24-10 appraiser applies only to a license or certificate issued on or
24-11 after the effective date of this Act.
24-12 (c) The change in law made by this Act to the enforcement
24-13 procedures and contested case procedures under Sections 12 and 12A,
24-14 Texas Appraiser Licensing and Certification Act (Article 6573a.2,
24-15 Vernon's Texas Civil Statutes), as amended and as added by this
24-16 Act, applies only to a proceeding initiated on or after the
24-17 effective date of this Act. A proceeding initiated before the
24-18 effective date of this Act is governed by the law in effect on the
24-19 date the proceeding was initiated, and the former law is continued
24-20 in effect for that purpose.
24-21 SECTION 17. The importance of this legislation and the
24-22 crowded condition of the calendars in both houses create an
24-23 emergency and an imperative public necessity that the
24-24 constitutional rule requiring bills to be read on three several
24-25 days in each house be suspended, and this rule is hereby suspended.