By: Counts H.B. No. 2644
73R5929 JMM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of real estate appraisers.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3(14), Texas Appraiser Licensing and
1-5 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
1-6 is amended to read as follows:
1-7 (14) "State licensed real estate appraiser" means a
1-8 person who is licensed under this Act.
1-9 SECTION 2. Section 5, Texas Appraiser Licensing and
1-10 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
1-11 is amended to read as follows:
1-12 Sec. 5. Powers and duties of board. The board may:
1-13 (1) adopt rules for the licensing and certification of
1-14 real estate appraisers in this state in accordance with this Act
1-15 and consistent with, but no more stringent than, applicable federal
1-16 law;
1-17 (2) establish categories of appraiser certification
1-18 and appraiser licensing, consistent with the categories of
1-19 appraiser certification and appraiser licensing recognized by the
1-20 Appraiser Qualifications Board, the Appraisal Standards Board, and
1-21 the Appraisal Subcommittee, and prescribe qualifications for each
1-22 category that are no more stringent than the qualifications
1-23 required by the Appraiser Qualifications Board, the Appraisal
1-24 Standards Board, and the Appraisal Subcommittee for each category;
2-1 (3) adopt rules relating to the education and
2-2 experience requirements for certification and licensing as an
2-3 appraiser in a manner that is consistent with, but no more
2-4 stringent than, the threshold requirements adopted by the Appraiser
2-5 Qualifications Board or the Appraisal Subcommittee;
2-6 (4) adopt rules relating to the qualifying examination
2-7 required for certification or licensing as an appraiser under this
2-8 Act;
2-9 (5) adopt rules establishing a code of professional
2-10 conduct and ethics for a certified or licensed appraiser that meets
2-11 the standards generally accepted by the Appraisal Subcommittee and
2-12 prescribed by the Uniform Standards of Professional Appraisal
2-13 Practice;
2-14 (6) establish reasonable fees to implement this Act,
2-15 including an application fee for certification or licensing, an
2-16 examination fee, a renewal fee for a certificate or license, a
2-17 federal appraiser registry fee, and <any> other appropriate fees
2-18 <fee required by law>;
2-19 (7) adopt rules relating to continuing education
2-20 requirements for a licensed or certified appraiser;
2-21 (8) adopt rules relating to the standards for the
2-22 development of a written appraisal by a certified or licensed
2-23 appraiser that are consistent with the appraisal regulations
2-24 adopted by a federal financial institution regulatory agency or the
2-25 Uniform Standards of Professional Appraisal Practice; <and>
2-26 (9) grant or deny an application for the certification
2-27 and licensing of a real estate appraiser; and
3-1 (10) institute an action in its own name in a district
3-2 court of Travis County against a person, firm, corporation,
3-3 partnership, or any other group or combination of persons to enjoin
3-4 a violation of this Act or a rule adopted by the board under this
3-5 Act with the attorney general as legal advisor to the board to
3-6 provide any necessary legal assistance.
3-7 SECTION 3. Sections 6(a), (b), (f), and (i), Texas Appraiser
3-8 Licensing and Certification Act (Article 6573a.2, Vernon's Texas
3-9 Civil Statutes), are amended to read as follows:
3-10 (a) The Texas Appraiser Licensing and Certification Board is
3-11 created as an independent subdivision of the Texas Real Estate
3-12 Commission. The board is composed of eight members appointed by
3-13 the governor with the advice and consent of the senate and the
3-14 executive secretary of the Veterans' Land Board or that person's
3-15 designee, who shall serve as a voting member of the board.
3-16 (b) An appointment to the board must be made without regard
3-17 to race, color, religion, sex, disability <handicap>, familial
3-18 status, national origin, or <the> membership in any appraisal
3-19 organization of the appointee.
3-20 (f) The appointed members of the board shall hold office for
3-21 terms of two years. Two appraiser members and two public members
3-22 shall serve terms that expire on January 31 of each odd-numbered
3-23 year. Two appraiser members and two public members shall serve
3-24 terms that expire on January 31 of each even-numbered year. An
3-25 appointed member qualifies by taking the constitutional oath of
3-26 office within 15 days after appointment. At a regular meeting in
3-27 February of each year, the members of the committee shall elect
4-1 from among the membership a chair <chairman>, a vice-chair
4-2 <vice-chairman>, and a secretary. No appointed member may serve
4-3 for more than three consecutive two-year terms.
4-4 (i) If the chair <chairman> of the board has knowledge that
4-5 a potential ground for removal exists, the chair <chairman> shall
4-6 immediately notify the governor.
4-7 SECTION 4. Section 7, Texas Appraiser Licensing and
4-8 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
4-9 is amended to read as follows:
4-10 Sec. 7. Powers and duties of commissioner. The commissioner
4-11 shall:
4-12 (1) disseminate information and administer <enforce>
4-13 rules adopted by the board under this Act;
4-14 (2) review an application for the certification or
4-15 licensing of a real estate appraiser and make a recommendation for
4-16 final action to the board;
4-17 (3) review and make recommendations to the board
4-18 concerning the adoption of rules relating to:
4-19 (A) the licensing and certification examination;
4-20 (B) education and experience requirements for
4-21 licensing and certification;
4-22 (C) continuing education for a licensed or
4-23 certified appraiser;
4-24 (D) standards of professional practice and
4-25 ethics for a certified or licensed appraiser;
4-26 (E) standards for a real estate appraisal
4-27 performed by a certified or licensed appraiser; and
5-1 (F) the fees <fee> to be established by the
5-2 board to be charged for the implementation of this Act;
5-3 (4) collect fees established by the board; and
5-4 (5) <conduct any reviews and make recommendations as
5-5 the board may prescribe by rule regarding disciplinary actions for
5-6 a licensed or certified appraiser and the enforcement of this Act;
5-7 and>
5-8 <(6)> perform any other duty prescribed by the board
5-9 under this Act.
5-10 SECTION 5. Section 9(e), Texas Appraiser Licensing and
5-11 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
5-12 is amended to read as follows:
5-13 (e) An applicant for certification or licensing must furnish
5-14 under oath, on an affidavit <a> form prescribed by the board a
5-15 statement that the applicant has the equivalent of 2,000 hours of
5-16 experience in performing appraisals. The board shall request and
5-17 review further documentation of an applicant's experience if the
5-18 board determines that a preponderance of evidence exists that fraud
5-19 or misrepresentation occurred at the time of the applicant's
5-20 application for licensing or certification or if a consumer
5-21 complaint or peer complaint is brought against the applicant
5-22 alleging fraud, incompetency, or malpractice or if the board
5-23 determines other just cause exists for requiring further
5-24 information. The board may obtain the additional information or
5-25 documentation requested by:
5-26 (1) requiring the applicant to complete a form,
5-27 prescribed by the board, that includes detailed listings of
6-1 appraisal experience showing, for each appraisal claimed by the
6-2 applicant, the city or county where the appraisal was performed,
6-3 the type and description of the building or property appraised, the
6-4 approaches to value utilized in the appraisal, the actual number of
6-5 hours expended on the appraisal, and other information determined
6-6 to be appropriate by the board; or
6-7 (2) engaging in other research determined to be
6-8 appropriate by the board<, information on the applicant's real
6-9 estate appraisal experience for each year that experience is
6-10 claimed by the applicant. The form must include a cumulative total
6-11 of hours expended in each area of acceptable appraisal experience.
6-12 If after investigation the board determines that a preponderance of
6-13 evidence exists that fraud or misrepresentation occurred at the
6-14 time of application, the board may request additional information
6-15 on the appraisal experience. That form must include information as
6-16 to the city or county, the type and description of the building or
6-17 property appraised, and the number of hours expended for each
6-18 appraisal. The board may not request further documentation of an
6-19 applicant's experience unless a consumer complaint or peer
6-20 complaint of fraud, incompetency, or malpractice is substantiated
6-21 through a formal hearing process held under this Act or the board
6-22 determines that other just cause exists for reviewing further
6-23 documentation>.
6-24 SECTION 6. Sections 10(a), (b), and (e), Texas Appraiser
6-25 Licensing and Certification Act (Article 6573a.2, Vernon's Texas
6-26 Civil Statutes), are amended to read as follows:
6-27 (a) The board shall prescribe an appraiser examination. The
7-1 examination must be written and must be approved by the Appraisal
7-2 Foundation or its successor agency. The examination must be
7-3 consistent with, but no more stringent than, the Uniform State
7-4 Certification/Licensing Examination guidelines endorsed by the
7-5 Appraiser Qualifications Board. The board may contract with a
7-6 testing service to administer the examination. The testing service
7-7 may collect an examination fee from an applicant for certification
7-8 or licensing.
7-9 (b) An application to take the examination must be on a form
7-10 prescribed by the board <and be accompanied by an examination fee>.
7-11 (e) An applicant for licensing or certification must achieve
7-12 the minimum score required or approved by the Appraiser
7-13 Qualifications Board, whichever is less, to pass an examination.
7-14 The board shall notify each person taking an examination whether
7-15 the person has passed or failed the examination not later than:
7-16 (1) the 31st day after the examination date; or
7-17 (2) if the examination is graded or reviewed by a
7-18 national testing service, the 31st day after the date on which the
7-19 board <department> receives the results from the national testing
7-20 service.
7-21 SECTION 7. Section 12, Texas Appraiser Licensing and
7-22 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
7-23 is amended to read as follows:
7-24 Sec. 12. ENFORCEMENT PROCEEDINGS <INVESTIGATION;
7-25 SANCTIONS>. (a) Except as otherwise provided by this Act,
7-26 proceedings under this Act shall be conducted in accordance with
7-27 the Administrative Procedure and Texas Register Act (Article
8-1 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
8-2 amendments <The commissioner may investigate the actions of a
8-3 state certified or state licensed appraiser and may make
8-4 recommendations to the board on an administrative sanction,
8-5 including revocation of a license or certification, for the
8-6 violation of this Act or a rule adopted under this Act>.
8-7 (b) A complaint that alleges that an appraiser licensed or
8-8 certified under this Act has violated a rule of professional
8-9 conduct adopted by the board shall be filed with the board. The
8-10 complaint process under this section may be initiated by any
8-11 person, including a member of the board, by filing with the board a
8-12 written complaint on an affidavit form prescribed by the board.
8-13 The board may, on its own motion, file a formal complaint against
8-14 an appraiser licensed or certified under this Act.
8-15 (c) On receipt of a complaint or on its own motion, the
8-16 board shall review and investigate alleged acts or omissions that
8-17 the board believes constitute cause for disciplinary action. To
8-18 determine if probable cause exists for a hearing on a complaint, an
8-19 investigator designated by the chair of the board shall investigate
8-20 the allegations contained in a complaint. If the board determines
8-21 that the complaint does not present facts that constitute a basis
8-22 for disciplinary action, the board may not take further action.
8-23 (d) The chair of the board may appoint a peer investigative
8-24 committee consisting of three real estate appraisers certified or
8-25 licensed under this Act. Each member of the committee shall
8-26 certify to the board that the member is familiar with the appraisal
8-27 process in the appraisal to be reviewed. The chair of the
9-1 investigative committee must be an appraiser member of the board.
9-2 The investigative committee shall review and determine the facts of
9-3 the complaint and submit a written report to the board in a timely
9-4 manner.
9-5 (e) For the purposes of an investigation of a complaint, the
9-6 board may subpoena witnesses, books, papers, records, and other
9-7 evidence to determine whether the board should institute a
9-8 contested case proceeding.
9-9 (f) On completion of an investigation, a written report
9-10 containing statements of fact, the recommendations of the
9-11 investigator, and the position or defense of the investigated
9-12 appraiser shall be submitted by the investigator for the board to
9-13 determine what further action is necessary. Based on the report,
9-14 the board may:
9-15 (1) order that the matter be further investigated;
9-16 (2) permit the appraiser who is the subject of the
9-17 complaint to appear before the board for an informal discussion as
9-18 provided by Subsection (g) of this section regarding the alleged
9-19 violation;
9-20 (3) determine that probable cause does not exist to
9-21 believe that a violation occurred and dismiss the case; or
9-22 (4) determine that probable cause that a violation
9-23 occurred exists and proceed with a contested case hearing as the
9-24 complainant.
9-25 (g) The board may permit an appraiser under investigation an
9-26 opportunity to appear before the board for a voluntary informal
9-27 discussion of the facts and circumstances of an alleged violation
10-1 on the board's motion or on request of the appraiser. The informal
10-2 discussion constitutes part of the board's investigation of the
10-3 pending disciplinary case and the facts discussed at the informal
10-4 discussion may be considered by the board if the case proceeds to a
10-5 contested case hearing. The board may seek a consent order as
10-6 provided by Subsection (h) of this section at the time of the
10-7 informal discussion.
10-8 (h) The board may negotiate a settlement and enter into a
10-9 consent order with an appraiser who is under investigation. An
10-10 appraiser member of the board designated by the chair and the
10-11 attorney general may agree to negotiate a settlement under this
10-12 subsection. A proposed consent order shall be presented to the
10-13 board for approval and shall be binding if approved by the board
10-14 and signed by the board chair and the appraiser. A board member
10-15 who participates in negotiation of a consent order is not
10-16 disqualified from participating in adjudication of the contested
10-17 case that results from the negotiations. Consent to negotiation by
10-18 the appraiser constitutes waiver of the right to notice and the
10-19 opportunity to be heard under the Administrative Procedure and
10-20 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
10-21 Statutes) and its subsequent amendments during the settlement
10-22 negotiations. A prosecuting attorney may discuss informal
10-23 settlement with the board chair or a representative of the board.
10-24 If the parties agree to a consent order, a statement of charges
10-25 shall be filed with the consent order.
10-26 (i) The board, in its discretion and in lieu of prosecuting
10-27 a first-time violator of the rules of professional conduct adopted
11-1 by the board, may enter into a consent agreement as provided by
11-2 this subsection. An appraiser member of the board, designated by
11-3 the chair, and the attorney general may agree to negotiate a
11-4 consent agreement. The proposed consent agreement shall be
11-5 presented to the board for approval and shall be binding if
11-6 approved by the board and signed by the board chair and the
11-7 appraiser. Failure by the appraiser to comply with the terms of
11-8 the agreement constitutes grounds for prosecution.
11-9 SECTION 8. The Texas Appraiser Licensing and Certification
11-10 Act (Article 6573a.2, Vernon's Texas Civil Statutes) is amended by
11-11 adding Section 12A to read as follows:
11-12 Sec. 12A. CONTESTED CASE PROCEEDINGS. (a) The board shall
11-13 provide notice to the parties of a contested case hearing stating
11-14 the time and place of the hearing. The notice must contain a
11-15 statement requiring the appraiser to submit an answer as required
11-16 by Subsection (b) of this section not later than the 20th day after
11-17 the date of receipt of the notice. The notice, together with a
11-18 statement of charges, shall be personally delivered or mailed to
11-19 the appraiser by certified mail, return receipt requested, not
11-20 later than the 30th day before the hearing date. The statement of
11-21 charges shall be prepared by the prosecuting attorney and must
11-22 state the acts or omissions with which the appraiser is charged,
11-23 including the standards of professional practice or professional
11-24 conduct rules alleged to have been violated. The statement must be
11-25 in sufficient detail to enable the preparation of the appraiser's
11-26 defense.
11-27 (b) The answer filed by the appraiser must contain the
12-1 following:
12-2 (1) the name, address, and telephone number of the
12-3 appraiser;
12-4 (2) a specific statement regarding any or all
12-5 allegations in the complaint in the form of admissions or denials
12-6 and containing any explanations, remarks, or statement of
12-7 mitigating circumstances the appraiser determines to be relevant;
12-8 and
12-9 (3) any additional facts or information the appraiser
12-10 determines to be relevant to the investigation and that may assist
12-11 in the determination of the case.
12-12 (c) A statement of charges and notice of hearing prepared by
12-13 the board shall be reviewed and approved by the attorney general.
12-14 The attorney general shall provide legal representation for the
12-15 public interest in all proceedings before the board. An assistant
12-16 attorney general assigned to prosecute a contested case before the
12-17 board may not represent the board in that case but shall represent
12-18 the public interest.
12-19 (d) A contested case hearing may be conducted before a
12-20 majority of the board members and shall be open to the public. The
12-21 board may provide for an administrative law judge to act as
12-22 presiding officer to conduct the hearing for the board. The
12-23 designated presiding officer shall be in control of the proceedings
12-24 and may administer oaths, admit or exclude testimony or other
12-25 evidence, and rule on all motions and objections. The presiding
12-26 officer or other board members may conduct direct examination of
12-27 the witnesses at any stage of the witness's testimony. Contested
13-1 proceedings shall be recorded either by mechanical or electrical
13-2 means or by a certified shorthand reporter. The proceedings or
13-3 part of the proceedings shall be transcribed at the request of any
13-4 party, with the expense of the transcription charged to the
13-5 requesting party. The recording, stenographic notes, or
13-6 transcription of oral proceedings shall be filed with and
13-7 maintained by the board for not less than five years from the date
13-8 of the decision in the proceedings.
13-9 (e) A subpoena for books, papers, records, witnesses, or
13-10 other evidence shall be issued to a party on request. The
13-11 commissioner of the board shall issue subpoenas for both parties on
13-12 reasonable cause shown. A request may be verbal or written and
13-13 must specify the documents sought and the full names and addresses
13-14 of the witnesses sought. Discovery procedures applicable to a
13-15 civil action are available to the parties in a proceeding under
13-16 this Act. A party or the board may petition the district court for
13-17 its enforcement of a subpoena. If a proper showing is made, the
13-18 district court shall order the person to obey the subpoena.
13-19 (f) The board and presiding officer may conduct a hearing or
13-20 enter an order or judgment as the board determines appropriate for
13-21 an appraiser who received proper notice of the hearing but who
13-22 fails to appear in person at the hearing. The appraiser shall be
13-23 bound by the results of the hearing to the same extent as if the
13-24 appraiser had appeared.
13-25 (g) Before testimony may be presented in a contested case
13-26 hearing, the record must show the identities of the board members
13-27 present, of the presiding officer, and of the parties and their
14-1 representatives and must reflect that all testimony is being
14-2 recorded. The appraiser who is the subject of the proceeding may
14-3 challenge any member of the board for cause before the commencement
14-4 of the hearing. The members of the board, with the challenged
14-5 member abstaining, shall decide by a majority vote whether cause
14-6 exists for the challenge and whether the challenged member may
14-7 participate in the hearing. The board shall set dates, times, and
14-8 rules for hearings and shall rule on all issues. Hearings shall be
14-9 conducted in the following order, subject to modification at the
14-10 discretion of the board:
14-11 (1) the presiding officer shall read a summary of the
14-12 charges and answers to the charges and other responsive pleadings
14-13 filed by the appraiser before the hearing;
14-14 (2) the assistant attorney general representing the
14-15 public interest before the board shall make a brief opening
14-16 statement, including a summary of charges and the witnesses and
14-17 documents to support the charges;
14-18 (3) the appraiser may make an opening statement,
14-19 including the names of any witnesses the appraiser may call;
14-20 (4) evidence shall be presented for the state,
14-21 including a summary made at the close of the evidence on behalf of
14-22 the state;
14-23 (5) evidence shall be presented for the appraiser;
14-24 (6) rebuttal evidence may be presented for the state;
14-25 (7) rebuttal evidence may be presented for the
14-26 appraiser; and
14-27 (8) closing arguments are made first for the state,
15-1 then for the appraiser, and finally for the state on rebuttal.
15-2 (h) The presiding officer may grant immunity from
15-3 disciplinary action before the board to a witness only on the
15-4 unanimous vote of all members of the board hearing the case. The
15-5 official record of the hearing must include the reasons for
15-6 granting the immunity.
15-7 (i) Copies of documents offered as evidence at the hearing
15-8 shall be provided to opposing parties. Copies shall also be
15-9 provided to members of the board. To the extent the appraiser
15-10 believes the appraiser is being asked to reply to accusations,
15-11 charges, innuendos, or facts for the first time in the hearing, the
15-12 appraiser may respond to the evidence to the board either in
15-13 writing or at a subsequent scheduled meeting of the board.
15-14 However, the assistant attorney general assigned to prosecute the
15-15 case before the board shall be allowed to continue to present
15-16 evidence during the hearing.
15-17 (j) By a majority vote of the members hearing the contested
15-18 matter, the board shall make findings of fact and conclusions of
15-19 law and may take one or more of the following actions:
15-20 (1) dismissal of the charges, including an order that
15-21 the file in the case is confidential;
15-22 (2) suspension or revocation of the appraiser's
15-23 license or certification;
15-24 (3) imposition of a period of probation with or
15-25 without conditions;
15-26 (4) a requirement that the appraiser submit to
15-27 reexamination for licensing or certification as an appraiser;
16-1 (5) a requirement that the appraiser participate in
16-2 additional professional education or continuing education;
16-3 (6) issuance of a public or private reprimand or a
16-4 warning;
16-5 (7) issuance of a consent order; or
16-6 (8) imposition of an administrative penalty, the
16-7 amount of which shall be set at the discretion of the board at an
16-8 amount that may not exceed $1,000 for each violation or $5,000 for
16-9 multiple violations in one hearing, to be paid not later than the
16-10 20th day after the date of final disposition of the case.
16-11 (k) Not later than the 20th day after the date of issuance
16-12 of a final decision, a party may file an application with the board
16-13 for a rehearing stating the specific grounds for rehearing and the
16-14 relief sought. The application shall be denied if it is not
16-15 granted before the 20th day after the date of service on the
16-16 commissioner of the board. The decision made on the conclusion of
16-17 the original proceeding may not be reversed or modified for
16-18 procedural, evidentiary, or other error that did not cause
16-19 substantial injustice to the parties. The decision made on a
16-20 rehearing may incorporate by reference any and all parts of the
16-21 decision made at the conclusion of the original proceeding. On
16-22 rehearing, the board shall consider facts not presented in the
16-23 original proceeding if:
16-24 (1) the facts arose after the original proceeding was
16-25 concluded;
16-26 (2) the party offering the evidence could not
16-27 reasonably have provided the evidence at the original proceedings;
17-1 or
17-2 (3) the party offering the additional evidence was
17-3 misled by any party as to the necessity for offering the evidence
17-4 at the original proceeding.
17-5 (l) The final decision of the board shall be filed with the
17-6 commissioner. A copy of the decision and order shall immediately
17-7 be sent by certified mail, return receipt requested, to the
17-8 appraiser's last known address or may be served as in the manner of
17-9 an original notice on the appraiser.
17-10 (m) A person whose certificate or license has been revoked
17-11 or suspended by the board may apply to the board for reinstatement
17-12 in accordance with the terms of the order of revocation or
17-13 suspension. If the order of revocation or suspension does not
17-14 establish terms on which reinstatement may occur, an initial
17-15 application for reinstatement may not be made until the first
17-16 anniversary of the date the order became effective and successive
17-17 applications may not be made more often than once every two years.
17-18 (n) Final decisions of the board relating to disciplinary
17-19 actions, including consent agreements and consent orders, may be
17-20 transmitted to other states and made available to the public.
17-21 (o) A member of the board is entitled to quasi-judicial
17-22 immunity from suit for actions as a member of the board, provided
17-23 the actions are in compliance with the law.
17-24 SECTION 9. Section 13(a), Texas Appraiser Licensing and
17-25 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
17-26 is amended to read as follows:
17-27 (a) The board shall maintain a roster of individuals who
18-1 have received a state certification or a state license under this
18-2 Act. The roster must indicate the type of <whether any> license or
18-3 certification for each individual listed <is a transitional license
18-4 or certification or a temporary certification>.
18-5 SECTION 10. Section 14(b), Texas Appraiser Licensing and
18-6 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
18-7 is amended to read as follows:
18-8 (b) A license or certification may be renewed on payment of
18-9 a renewal fee prescribed by the board and on furnishing evidence
18-10 satisfactory to the board and the Appraiser Qualifications Board
18-11 that the holder of the license or certification has completed any
18-12 continuing education requirements imposed by rule under this Act,
18-13 met the experience requirements of this Act, and complied with any
18-14 minimum or maximum requirements of the Appraiser Qualifications
18-15 Board. The board shall accept as continuing education any
18-16 continuing education a licensed or certified appraiser was awarded
18-17 by a national appraiser organization approved by the board as a
18-18 provider of qualifying appraisal education if the continuing
18-19 education was required for the appraiser to be recertified with
18-20 that organization.
18-21 SECTION 11. Section 15, Texas Appraiser Licensing and
18-22 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
18-23 is amended by amending Subsection (c) and adding Subsections
18-24 (d)-(j) to read as follows:
18-25 (c) A person registered with the board under this section
18-26 may appraise real property in this state without holding a license
18-27 or certification issued under this Act if:
19-1 (1) the state, commonwealth, or territory licensing
19-2 and certification program under which the person holds a license or
19-3 certification has not been disapproved by the Appraisal
19-4 Subcommittee; and
19-5 (2) <the real property being appraised is part of a
19-6 federally related transaction; and>
19-7 <(3)> the appraiser's business in this state is of a
19-8 temporary nature not to exceed 60 days.
19-9 (d) If the board determines that another state has
19-10 substantially equivalent certification or licensure requirements to
19-11 those of this state, an applicant who is certified or licensed
19-12 under the laws of that state may obtain certification as a state
19-13 certified real estate appraiser or licensure as a state licensed
19-14 real estate appraiser in this state under terms and conditions
19-15 determined by the board. The terms and conditions must comply with
19-16 the minimum criteria for certification or licensure issued by the
19-17 Appraiser Qualifications Board of the Appraisal Foundation.
19-18 (e) An applicant for certification or licensure under this
19-19 Act who is not a resident of this state shall submit with the
19-20 application for certification or licensure an irrevocable consent
19-21 that service of process in an action against the applicant arising
19-22 out of the applicant's activities as a state certified real estate
19-23 appraiser or state licensed real estate appraiser in this state may
19-24 be made by delivery of the process to the commissioner of the
19-25 board, if the plaintiff in the action cannot, in the exercise of
19-26 due diligence, effect personal service on the applicant. If
19-27 process is served as provided by this subsection, the commissioner
20-1 shall immediately mail a copy of the materials served on the
20-2 commissioner by ordinary mail to the state certified real estate
20-3 appraiser or state licensed real estate appraiser at both the
20-4 appraiser's principal place of business and residence address.
20-5 (f) An application may not be accepted for an applicant from
20-6 a state that refuses to offer reciprocal treatment to residents of
20-7 this state who are certified or licensed real estate appraisers.
20-8 (g) The board shall seek verification from an applicant's
20-9 home state that the applicant's certification or license is valid
20-10 and in good standing. A reciprocal certificate or license may not
20-11 be issued without the verification required by this subsection.
20-12 (h) The holder of a certificate or license by reciprocity
20-13 may not be required to pay the federal registry fee and other fees
20-14 that the board may impose.
20-15 (i) A reciprocal certificate or license expires on the same
20-16 date that the certificate or license held by the applicant in the
20-17 applicant's home state or on the first anniversary of the date the
20-18 reciprocal certificate or license was issued, whichever date occurs
20-19 first.
20-20 (j) A reciprocal certificate or license is renewable under
20-21 terms and conditions determined by the board.
20-22 SECTION 12. Section 17, Texas Appraiser Licensing and
20-23 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
20-24 is amended to read as follows:
20-25 Sec. 17. Appraiser trainees. (a) The board may authorize a
20-26 person certified <or licensed> under this Act to sponsor an
20-27 appraiser trainee. An appraiser trainee may have more than one
21-1 sponsor. Each <The> certified <or licensed> appraiser and the
21-2 prospective appraiser trainee shall apply to the board for approval
21-3 of the appraiser trainee on a form prescribed by the board. The
21-4 board may set reasonable application and annual renewal fees for an
21-5 appraiser trainee. A prospective trainee must:
21-6 (1) be a citizen of the United States or a lawfully
21-7 admitted alien;
21-8 (2) be at least 18 years of age;
21-9 (3) be a legal resident of this state for at least 60
21-10 days immediately before the filing of the application; and
21-11 (4) satisfy the board as to the prospective trainee's
21-12 honesty, trustworthiness, and integrity.
21-13 (b) An appraiser trainee approved by the board may perform
21-14 an appraisal under the direction of one or more <the> trainee's
21-15 sponsors <sponsor>, who shall sign the appraiser trainee's reports.
21-16 A sponsor who signs a report shall <and> be responsible to the
21-17 public and to the board for the conduct of the appraiser trainee.
21-18 An appraiser trainee may co-sign a report under this subsection.
21-19 The board may reprimand an appraiser trainee or suspend or revoke
21-20 an appraiser trainee's authority to act as an appraiser trainee for
21-21 a violation of this Act or a rule adopted under this section. A
21-22 disciplinary proceeding involving an appraiser trainee is governed
21-23 by the Administrative Procedure and Texas Register Act (Article
21-24 6252-13a, Vernon's Texas Civil Statutes).
21-25 SECTION 13. Section 18, Texas Appraiser Licensing and
21-26 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
21-27 is amended to read as follows:
22-1 Sec. 18. Broker's or salesman's license not required;
22-2 exemptions. (a) A person certified or licensed under this Act or
22-3 approved as an appraiser trainee under this Act <section> is not
22-4 required to be licensed as a real estate broker or salesman under
22-5 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
22-6 Statutes), and its subsequent amendments, <this Act> to appraise
22-7 real property in this state. A person certified or licensed as an
22-8 appraiser by another state is not required to be licensed as a real
22-9 estate broker or salesman <under this Act> to appraise real
22-10 property in this state <in connection with a federally related
22-11 transaction for which a federal financial institution's regulatory
22-12 agency or the Resolution Trust Corporation or its successor has
22-13 required the use of a state certified or licensed appraiser>.
22-14 (b) This Act does not prohibit:
22-15 (1) a real estate broker or salesman licensed under
22-16 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
22-17 Statutes) but not licensed or certified under this Act from
22-18 performing an appraisal in a nonfederally related transaction; <or>
22-19 (2) the requirement of a real estate broker's or
22-20 salesman's license for an appraisal in nonfederally related
22-21 transactions by a person not licensed or certified under this Act;
22-22 or
22-23 (3) a real estate broker or salesman licensed under
22-24 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
22-25 Statutes), and its subsequent amendments, from giving an opinion in
22-26 the ordinary course of the broker's or salesman's business to a
22-27 potential seller or third party as to the recommended listing price
23-1 of real estate or to a potential purchaser or third party as to the
23-2 recommended purchase price of real estate if the opinion given
23-3 under this subdivision is not referred to as an appraisal.
23-4 SECTION 14. Section 21(b), Texas Appraiser Licensing and
23-5 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
23-6 is amended to read as follows:
23-7 (b) An offense under this section is a Class B <C>
23-8 misdemeanor.
23-9 SECTION 15. This Act takes effect September 1, 1993.
23-10 SECTION 16. (a) A member of the Texas Appraiser Licensing
23-11 and Certification Board immediately before the effective date of
23-12 this Act continues to serve as a member of the board on or after
23-13 the effective date of this Act for the remainder of the member's
23-14 term. The governor shall make appointments to the board on or
23-15 after the effective date of this Act as terms of members of the
23-16 board expire and vacancies occur on the board, as follows:
23-17 (1) the first and third appraiser member appointment
23-18 and the first and third public member appointment made on or after
23-19 the effective date of this Act shall be for terms that expire on
23-20 January 31 of the odd-numbered year following the appointment; and
23-21 (2) the second and fourth appraiser member appointment
23-22 and the second and fourth public member appointment made on or
23-23 after the effective date of this Act shall be for terms that expire
23-24 on January 31 of the even-numbered year following the appointment.
23-25 (b) The change in law made by this Act to the application
23-26 requirements for licensing or certification as a real estate
23-27 appraiser apply only to a license or certificate issued on or after
24-1 the effective date of this Act.
24-2 (c) The change in law made by this Act to the enforcement
24-3 procedures and contested case procedures under Sections 12 and 12A,
24-4 Texas Appraiser Licensing and Certification Act (Article 6573a.2,
24-5 Vernon's Texas Civil Statutes), as amended and as added by this
24-6 Act, apply only to a proceeding initiated on or after the effective
24-7 date of this Act. A proceeding initiated before the effective date
24-8 of this Act is governed by the law in effect on the date the
24-9 proceeding was initiated, and the former law is continued in effect
24-10 for that purpose.
24-11 SECTION 17. The importance of this legislation and the
24-12 crowded condition of the calendars in both houses create an
24-13 emergency and an imperative public necessity that the
24-14 constitutional rule requiring bills to be read on three several
24-15 days in each house be suspended, and this rule is hereby suspended.