1-1 By: Counts (Senate Sponsor - Harris of Tarrant) H.B. No. 2644
1-2 (In the Senate - Received from the House May 17, 1993;
1-3 May 19, 1993, read first time and referred to Committee on State
1-4 Affairs; May 22, 1993, reported favorably by the following vote:
1-5 Yeas 7, Nays 0; May 22, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the regulation of real estate appraisers; providing
1-24 civil and criminal penalties.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section 3(14), Texas Appraiser Licensing and
1-27 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
1-28 is amended to read as follows:
1-29 (14) "State licensed real estate appraiser" means a
1-30 person who is licensed under this Act.
1-31 SECTION 2. Section 5, Texas Appraiser Licensing and
1-32 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
1-33 is amended to read as follows:
1-34 Sec. 5. Powers and duties of board. The board may:
1-35 (1) adopt rules for the licensing and certification of
1-36 real estate appraisers in this state in accordance with this Act
1-37 and consistent with, but no more stringent than, applicable federal
1-38 law;
1-39 (2) establish categories of appraiser certification
1-40 and appraiser licensing, consistent with the categories of
1-41 appraiser certification and appraiser licensing recognized by the
1-42 Appraiser Qualifications Board, the Appraisal Standards Board, and
1-43 the Appraisal Subcommittee, and prescribe qualifications for each
1-44 category that are no more stringent than the qualifications
1-45 required by the Appraiser Qualifications Board, the Appraisal
1-46 Standards Board, and the Appraisal Subcommittee for each category;
1-47 (3) adopt rules relating to the education and
1-48 experience requirements for certification and licensing as an
1-49 appraiser in a manner that is consistent with, but no more
1-50 stringent than, the threshold requirements adopted by the Appraiser
1-51 Qualifications Board or the Appraisal Subcommittee;
1-52 (4) adopt rules relating to the qualifying examination
1-53 required for certification or licensing as an appraiser under this
1-54 Act;
1-55 (5) adopt rules establishing a code of professional
1-56 conduct and ethics for a certified or licensed appraiser that meets
1-57 the standards generally accepted by the Appraisal Subcommittee and
1-58 prescribed by the Uniform Standards of Professional Appraisal
1-59 Practice;
1-60 (6) establish reasonable fees to implement this Act,
1-61 including an application fee for certification or licensing, an
1-62 examination fee, a renewal fee for a certificate or license, a
1-63 federal appraiser registry fee, and <any> other appropriate fees
1-64 <fee required by law>;
1-65 (7) adopt rules relating to continuing education
1-66 requirements for a licensed or certified appraiser;
1-67 (8) adopt rules relating to the standards for the
1-68 development of a written appraisal by a certified or licensed
2-1 appraiser that are consistent with the appraisal regulations
2-2 adopted by a federal financial institution regulatory agency or the
2-3 Uniform Standards of Professional Appraisal Practice; <and>
2-4 (9) grant or deny an application for the certification
2-5 and licensing of a real estate appraiser;
2-6 (10) institute an action in its own name in a district
2-7 court of Travis County against a person, firm, corporation,
2-8 partnership, or any other group or combination of persons to enjoin
2-9 a violation of this Act or a rule adopted by the board under this
2-10 Act with the attorney general as legal advisor to the board to
2-11 provide any necessary legal assistance;
2-12 (11) adopt rules as necessary to conform with the
2-13 minimum written standards of the Appraisal Subcommittee; and
2-14 (12) conduct disciplinary proceedings with regard to
2-15 appraisers in this state except in circumstances when an appraiser
2-16 is required to be licensed or certified by another state agency to
2-17 perform property appraisals.
2-18 SECTION 3. Sections 6(a), (b), (f), and (i), Texas Appraiser
2-19 Licensing and Certification Act (Article 6573a.2, Vernon's Texas
2-20 Civil Statutes), are amended to read as follows:
2-21 (a) The Texas Appraiser Licensing and Certification Board is
2-22 created as an independent subdivision of the Texas Real Estate
2-23 Commission. The board is composed of eight members appointed by
2-24 the governor with the advice and consent of the senate and the
2-25 executive secretary of the Veterans' Land Board or that person's
2-26 designee, who shall serve as a voting member of the board.
2-27 (b) An appointment to the board must be made without regard
2-28 to race, color, religion, sex, disability <handicap>, familial
2-29 status, national origin, or <the> membership in any appraisal
2-30 organization of the appointee.
2-31 (f) The appointed members of the board shall hold office for
2-32 terms of two years. Two appraiser members and two public members
2-33 shall serve terms that expire on January 31 of each odd-numbered
2-34 year. Two appraiser members and two public members shall serve
2-35 terms that expire on January 31 of each even-numbered year. An
2-36 appointed member qualifies by taking the constitutional oath of
2-37 office within 15 days after appointment. At a regular meeting in
2-38 February of each year, the members of the committee shall elect
2-39 from among the membership a chair <chairman>, a vice-chair
2-40 <vice-chairman>, and a secretary who together form the executive
2-41 committee. No appointed member may serve for more than three
2-42 consecutive two-year terms.
2-43 (i) If the chair <chairman> of the board has knowledge that
2-44 a potential ground for removal exists, the chair <chairman> shall
2-45 immediately notify the governor.
2-46 SECTION 4. Section 7, Texas Appraiser Licensing and
2-47 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
2-48 is amended to read as follows:
2-49 Sec. 7. Powers and duties of commissioner. The commissioner
2-50 shall:
2-51 (1) disseminate information and administer <enforce>
2-52 rules adopted by the board under this Act;
2-53 (2) review an application for the certification or
2-54 licensing of a real estate appraiser and make a recommendation for
2-55 final action to the board;
2-56 (3) review and make recommendations to the board
2-57 concerning the adoption of rules relating to:
2-58 (A) the licensing and certification examination;
2-59 (B) education and experience requirements for
2-60 licensing and certification;
2-61 (C) continuing education for a licensed or
2-62 certified appraiser;
2-63 (D) standards of professional practice and
2-64 ethics for a certified or licensed appraiser;
2-65 (E) standards for a real estate appraisal
2-66 performed by a certified or licensed appraiser; and
2-67 (F) the fees <fee> to be established by the
2-68 board to be charged for the implementation of this Act;
2-69 (4) collect fees established by the board; and
2-70 (5) <conduct any reviews and make recommendations as
3-1 the board may prescribe by rule regarding disciplinary actions for
3-2 a licensed or certified appraiser and the enforcement of this Act;
3-3 and>
3-4 <(6)> perform any other duty prescribed by the board
3-5 under this Act.
3-6 SECTION 5. Section 9(e), Texas Appraiser Licensing and
3-7 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
3-8 is amended to read as follows:
3-9 (e) An applicant for certification or licensing must furnish
3-10 under oath, on an affidavit <a> form prescribed by the board, a
3-11 statement that the applicant has the equivalent of 2,000 hours of
3-12 experience in performing appraisals. If a consumer complaint or
3-13 peer complaint is brought against the applicant alleging fraud,
3-14 incompetency, or malpractice and the board finds the complaint is
3-15 reasonable or if the board determines other just cause exists for
3-16 requiring further information, the board may obtain the additional
3-17 information or documentation requested by:
3-18 (1) requiring the applicant to complete a form,
3-19 prescribed by the board, that includes detailed listings of
3-20 appraisal experience showing, for each appraisal claimed by the
3-21 applicant, the city or county where the appraisal was performed,
3-22 the type and description of the building or property appraised, the
3-23 approaches to value utilized in the appraisal, the actual number of
3-24 hours expended on the appraisal, and other information determined
3-25 to be appropriate by the board; or
3-26 (2) engaging in other research determined to be
3-27 appropriate by the board<, information on the applicant's real
3-28 estate appraisal experience for each year that experience is
3-29 claimed by the applicant. The form must include a cumulative total
3-30 of hours expended in each area of acceptable appraisal experience.
3-31 If after investigation the board determines that a preponderance of
3-32 evidence exists that fraud or misrepresentation occurred at the
3-33 time of application, the board may request additional information
3-34 on the appraisal experience. That form must include information as
3-35 to the city or county, the type and description of the building or
3-36 property appraised, and the number of hours expended for each
3-37 appraisal. The board may not request further documentation of an
3-38 applicant's experience unless a consumer complaint or peer
3-39 complaint of fraud, incompetency, or malpractice is substantiated
3-40 through a formal hearing process held under this Act or the board
3-41 determines that other just cause exists for reviewing further
3-42 documentation>.
3-43 SECTION 6. Sections 10(a), (b), and (e), Texas Appraiser
3-44 Licensing and Certification Act (Article 6573a.2, Vernon's Texas
3-45 Civil Statutes), are amended to read as follows:
3-46 (a) The board shall prescribe an appraiser examination. The
3-47 examination must be written and must be approved by the Appraisal
3-48 Foundation or its successor agency. The examination must be
3-49 consistent with, but no more stringent than, the Uniform State
3-50 Certification/Licensing Examination guidelines endorsed by the
3-51 Appraiser Qualifications Board. The board may contract with a
3-52 testing service to administer the examination. The testing service
3-53 may collect an examination fee from an applicant for certification
3-54 or licensing.
3-55 (b) An application to take the examination must be on a form
3-56 prescribed by the board <and be accompanied by an examination fee>.
3-57 (e) An applicant for licensing or certification must achieve
3-58 the minimum score required or approved by the Appraiser
3-59 Qualifications Board, whichever is less, to pass an examination.
3-60 The board shall notify each person taking an examination whether
3-61 the person has passed or failed the examination not later than:
3-62 (1) the 31st day after the examination date; or
3-63 (2) if the examination is graded or reviewed by a
3-64 national testing service, the 31st day after the date on which the
3-65 board <department> receives the results from the national testing
3-66 service.
3-67 SECTION 7. Section 12, Texas Appraiser Licensing and
3-68 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
3-69 is amended to read as follows:
3-70 Sec. 12. ENFORCEMENT PROCEEDINGS <INVESTIGATION;
4-1 SANCTIONS>. (a) Except as otherwise provided by this Act,
4-2 proceedings under this Act shall be conducted in accordance with
4-3 the Administrative Procedure and Texas Register Act (Article
4-4 6252-13a, Vernon's Texas Civil Statutes) and its subsequent
4-5 amendments <The commissioner may investigate the actions of a
4-6 state certified or state licensed appraiser and may make
4-7 recommendations to the board on an administrative sanction,
4-8 including revocation of a license or certification, for the
4-9 violation of this Act or a rule adopted under this Act>.
4-10 (b) A complaint that alleges that an appraiser licensed or
4-11 certified under this Act has violated a rule of professional
4-12 conduct adopted by the board shall be filed with the board. The
4-13 complaint process under this section may be initiated by any
4-14 person, including a member of the board, by filing with the board a
4-15 written complaint on an affidavit form prescribed by the board.
4-16 The board may, on its own motion, file a formal complaint against
4-17 an appraiser licensed or certified under this Act.
4-18 (c) On receipt of a complaint or on its own motion, the
4-19 board shall review and investigate alleged acts or omissions that
4-20 the board believes constitute cause for disciplinary action. To
4-21 determine if probable cause exists for a hearing on a complaint, an
4-22 investigator designated by the chair of the board shall investigate
4-23 the allegations contained in a complaint. If the board determines
4-24 that the complaint does not present facts that constitute a basis
4-25 for disciplinary action, the board may not take further action.
4-26 (d) The chair of the board with the advice and consent of
4-27 the executive committee may appoint a peer investigative committee
4-28 consisting of three real estate appraisers certified or licensed
4-29 under this Act. The chair of the investigative committee must be
4-30 an appraiser member of the board. Each remaining member of the
4-31 committee shall certify to the board that the member is familiar
4-32 with the appraisal process in the appraisal to be reviewed. The
4-33 investigative committee shall review and determine the facts of the
4-34 complaint and submit a written report to the board in a timely
4-35 manner.
4-36 (e) For the purposes of an investigation of a complaint, the
4-37 board may subpoena witnesses, books, papers, records, and other
4-38 evidence to determine whether the board should institute a
4-39 contested case proceeding.
4-40 (f) On completion of an investigation, a written report
4-41 containing statements of fact, the recommendations of the
4-42 investigator, and the position or defense of the investigated
4-43 appraiser shall be submitted by the investigator for the board to
4-44 determine what further action is necessary. Based on the report,
4-45 the board may:
4-46 (1) order that the matter be further investigated;
4-47 (2) permit the appraiser who is the subject of the
4-48 complaint to appear before the board for an informal discussion as
4-49 provided by Subsection (g) of this section regarding the alleged
4-50 violation;
4-51 (3) determine that probable cause does not exist to
4-52 believe that a violation occurred and dismiss the case; or
4-53 (4) determine that probable cause that a violation
4-54 occurred exists and proceed with a contested case hearing as the
4-55 complainant.
4-56 (g) The board may permit an appraiser under investigation an
4-57 opportunity to appear before the board for a voluntary informal
4-58 discussion of the facts and circumstances of an alleged violation
4-59 on the board's motion or on request of the appraiser. The informal
4-60 discussion constitutes part of the board's investigation of the
4-61 pending disciplinary case and the facts discussed at the informal
4-62 discussion may be considered by the board if the case proceeds to a
4-63 contested case hearing. The board may seek a consent order as
4-64 provided by Subsection (h) of this section at the time of the
4-65 informal discussion.
4-66 (h) The board may negotiate a settlement and enter into a
4-67 consent order with an appraiser who is under investigation. An
4-68 appraiser member of the board designated by the chair and the
4-69 attorney general may agree to negotiate a settlement under this
4-70 subsection. A proposed consent order shall be presented to the
5-1 board for approval and shall be binding if approved by the board
5-2 and signed by the board chair and the appraiser. A board member
5-3 who participates in negotiation of a consent order is not
5-4 disqualified from participating in adjudication of the contested
5-5 case that results from the negotiations. Consent to negotiation by
5-6 the appraiser constitutes waiver of the right to notice and the
5-7 opportunity to be heard under the Administrative Procedure and
5-8 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
5-9 Statutes) and its subsequent amendments during the settlement
5-10 negotiations. A prosecuting attorney may discuss informal
5-11 settlement with the board chair or a representative of the board.
5-12 If the parties agree to a consent order, a statement of charges
5-13 shall be filed with the consent order.
5-14 (i) The board, in its discretion and in lieu of prosecuting
5-15 a first-time violator of the rules of professional conduct adopted
5-16 by the board, may enter into a consent agreement as provided by
5-17 this subsection. An appraiser member of the board, designated by
5-18 the chair, and the attorney general may agree to negotiate a
5-19 consent agreement. The proposed consent agreement shall be
5-20 presented to the board for approval and shall be binding if
5-21 approved by the board and signed by the board chair and the
5-22 appraiser. Failure by the appraiser to comply with the terms of
5-23 the agreement constitutes grounds for prosecution.
5-24 (j) A certified or licensed appraiser who files a complaint
5-25 against another certified or licensed appraiser that the board
5-26 determines to be frivolous is liable for a civil penalty. At the
5-27 request of the board, the attorney general or a district or county
5-28 attorney may institute a civil action in district court to collect
5-29 a civil penalty under this subsection. A civil penalty under this
5-30 subsection may not be less than $500 or more than $10,000. A civil
5-31 penalty recovered in a suit instituted under this subsection shall
5-32 be deposited in the state treasury to the credit of the general
5-33 revenue fund.
5-34 SECTION 8. The Texas Appraiser Licensing and Certification
5-35 Act (Article 6573a.2, Vernon's Texas Civil Statutes) is amended by
5-36 adding Section 12A to read as follows:
5-37 Sec. 12A. CONTESTED CASE PROCEEDINGS. (a) The board shall
5-38 provide notice to the parties of a contested case hearing stating
5-39 the time and place of the hearing. The notice must contain a
5-40 statement requiring the appraiser to submit an answer as required
5-41 by Subsection (b) of this section not later than the 20th day after
5-42 the date of receipt of the notice. The notice, together with a
5-43 statement of charges, shall be personally delivered or mailed to
5-44 the appraiser by certified mail, return receipt requested, not
5-45 later than the 30th day before the hearing date. The statement of
5-46 charges shall be prepared by the prosecuting attorney and must
5-47 state the acts or omissions with which the appraiser is charged,
5-48 including the standards of professional practice or professional
5-49 conduct rules alleged to have been violated. The statement must be
5-50 in sufficient detail to enable the preparation of the appraiser's
5-51 defense.
5-52 (b) The answer filed by the appraiser must contain the
5-53 following:
5-54 (1) the name, address, and telephone number of the
5-55 appraiser;
5-56 (2) a specific statement regarding any or all
5-57 allegations in the complaint in the form of admissions or denials
5-58 and containing any explanations, remarks, or statement of
5-59 mitigating circumstances the appraiser determines to be relevant;
5-60 and
5-61 (3) any additional facts or information the appraiser
5-62 determines to be relevant to the investigation and that may assist
5-63 in the determination of the case.
5-64 (c) A statement of charges and notice of hearing prepared by
5-65 the board shall be reviewed and approved by the attorney general.
5-66 The attorney general shall provide legal representation for the
5-67 public interest in all proceedings before the board. An assistant
5-68 attorney general assigned to prosecute a contested case before the
5-69 board may not represent the board in that case but shall represent
5-70 the public interest.
6-1 (d) A contested case hearing may be conducted before a
6-2 majority of the board members and shall be open to the public. The
6-3 board may provide for an administrative law judge to act as
6-4 presiding officer to conduct the hearing for the board. The
6-5 designated presiding officer shall be in control of the proceedings
6-6 and may administer oaths, admit or exclude testimony or other
6-7 evidence, and rule on all motions and objections. The presiding
6-8 officer or other board members may conduct direct examination of
6-9 the witnesses at any stage of the witness's testimony. Contested
6-10 proceedings shall be recorded either by mechanical or electrical
6-11 means or by a certified shorthand reporter. The proceedings or
6-12 part of the proceedings shall be transcribed at the request of any
6-13 party, with the expense of the transcription charged to the
6-14 requesting party. The recording, stenographic notes, or
6-15 transcription of oral proceedings shall be filed with and
6-16 maintained by the board for not less than five years from the date
6-17 of the decision in the proceedings.
6-18 (e) A subpoena for books, papers, records, witnesses, or
6-19 other evidence shall be issued to a party on request. The
6-20 commissioner of the board shall issue subpoenas for both parties on
6-21 reasonable cause shown. A request may be verbal or written and
6-22 must specify the documents sought and the full names and addresses
6-23 of the witnesses sought. Discovery procedures applicable to a
6-24 civil action are available to the parties in a proceeding under
6-25 this Act. A party or the board may petition the district court for
6-26 its enforcement of a subpoena. If a proper showing is made, the
6-27 district court shall order the person to obey the subpoena.
6-28 (f) The board and presiding officer may conduct a hearing or
6-29 enter an order or judgment as the board determines appropriate for
6-30 an appraiser who received proper notice of the hearing but who
6-31 fails to appear in person at the hearing. The appraiser shall be
6-32 bound by the results of the hearing to the same extent as if the
6-33 appraiser had appeared.
6-34 (g) Before testimony may be presented in a contested case
6-35 hearing, the record must show the identities of the board members
6-36 present, of the presiding officer, and of the parties and their
6-37 representatives and must reflect that all testimony is being
6-38 recorded. The appraiser who is the subject of the proceeding may
6-39 challenge any member of the board for cause before the commencement
6-40 of the hearing. The members of the board, with the challenged
6-41 member abstaining, shall decide by a majority vote whether cause
6-42 exists for the challenge and whether the challenged member may
6-43 participate in the hearing. The board shall set dates, times, and
6-44 rules for hearings and shall rule on all issues. Hearings shall be
6-45 conducted in the following order, subject to modification at the
6-46 discretion of the board:
6-47 (1) the presiding officer shall read a summary of the
6-48 charges and answers to the charges and other responsive pleadings
6-49 filed by the appraiser before the hearing;
6-50 (2) the assistant attorney general representing the
6-51 public interest before the board shall make a brief opening
6-52 statement, including a summary of charges and the witnesses and
6-53 documents to support the charges;
6-54 (3) the appraiser may make an opening statement,
6-55 including the names of any witnesses the appraiser may call;
6-56 (4) evidence shall be presented for the state,
6-57 including a summary made at the close of the evidence on behalf of
6-58 the state;
6-59 (5) evidence shall be presented for the appraiser;
6-60 (6) rebuttal evidence may be presented for the state;
6-61 (7) rebuttal evidence may be presented for the
6-62 appraiser; and
6-63 (8) closing arguments are made first for the state,
6-64 then for the appraiser, and finally for the state on rebuttal.
6-65 (h) The presiding officer may grant immunity from
6-66 disciplinary action before the board to a witness only on the
6-67 unanimous vote of all members of the board hearing the case. The
6-68 official record of the hearing must include the reasons for
6-69 granting the immunity.
6-70 (i) Copies of documents offered as evidence at the hearing
7-1 shall be provided to opposing parties. Copies shall also be
7-2 provided to members of the board. To the extent the appraiser
7-3 believes the appraiser is being asked to reply to accusations,
7-4 charges, innuendos, or facts for the first time in the hearing, the
7-5 appraiser may respond to the evidence to the board either in
7-6 writing or at a subsequent scheduled meeting of the board.
7-7 However, the assistant attorney general assigned to prosecute the
7-8 case before the board shall be allowed to continue to present
7-9 evidence during the hearing.
7-10 (j) By a majority vote of the members hearing the contested
7-11 matter, the board shall make findings of fact and conclusions of
7-12 law and may take one or more of the following actions:
7-13 (1) dismissal of the charges, including an order that
7-14 the file in the case is confidential;
7-15 (2) suspension or revocation of the appraiser's
7-16 license or certification;
7-17 (3) imposition of a period of probation with or
7-18 without conditions;
7-19 (4) a requirement that the appraiser submit to
7-20 reexamination for licensing or certification as an appraiser;
7-21 (5) a requirement that the appraiser participate in
7-22 additional professional education or continuing education;
7-23 (6) issuance of a public or private reprimand or a
7-24 warning;
7-25 (7) issuance of a consent order; or
7-26 (8) imposition of an administrative penalty, the
7-27 amount of which shall be set at the discretion of the board at an
7-28 amount that may not exceed $1,000 for each violation or $5,000 for
7-29 multiple violations in one hearing, to be paid not later than the
7-30 20th day after the date of final disposition of the case.
7-31 (k) Not later than the 20th day after the date of issuance
7-32 of a final decision, a party may file an application with the board
7-33 for a rehearing stating the specific grounds for rehearing and the
7-34 relief sought. The application shall be denied if it is not
7-35 granted before the 20th day after the date of service on the
7-36 commissioner of the board. The decision made on the conclusion of
7-37 the original proceeding may not be reversed or modified for
7-38 procedural, evidentiary, or other error that did not cause
7-39 substantial injustice to the parties. The decision made on a
7-40 rehearing may incorporate by reference any and all parts of the
7-41 decision made at the conclusion of the original proceeding. On
7-42 rehearing, the board shall consider facts not presented in the
7-43 original proceeding if:
7-44 (1) the facts arose after the original proceeding was
7-45 concluded;
7-46 (2) the party offering the evidence could not
7-47 reasonably have provided the evidence at the original proceedings;
7-48 or
7-49 (3) the party offering the additional evidence was
7-50 misled by any party as to the necessity for offering the evidence
7-51 at the original proceeding.
7-52 (l) The final decision of the board shall be filed with the
7-53 commissioner. A copy of the decision and order shall immediately
7-54 be sent by certified mail, return receipt requested, to the
7-55 appraiser's last known address or may be served as in the manner of
7-56 an original notice on the appraiser.
7-57 (m) A person whose certificate or license has been revoked
7-58 or suspended by the board may apply to the board for reinstatement
7-59 in accordance with the terms of the order of revocation or
7-60 suspension. If the order of revocation or suspension does not
7-61 establish terms on which reinstatement may occur, an initial
7-62 application for reinstatement may not be made until the first
7-63 anniversary of the date the order became effective and successive
7-64 applications may not be made more often than once every two years.
7-65 (n) Final decisions of the board relating to disciplinary
7-66 actions, including consent agreements and consent orders, may be
7-67 transmitted to other states and made available to the public.
7-68 (o) A member of the board is entitled to quasi-judicial
7-69 immunity from suit for actions as a member of the board, provided
7-70 the actions are in compliance with the law.
8-1 SECTION 9. Section 13(a), Texas Appraiser Licensing and
8-2 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
8-3 is amended to read as follows:
8-4 (a) The board shall maintain a roster of individuals who
8-5 have received a state certification or a state license under this
8-6 Act. The roster must indicate the type of <whether any> license or
8-7 certification for each individual listed <is a transitional license
8-8 or certification or a temporary certification>.
8-9 SECTION 10. Section 14(b), Texas Appraiser Licensing and
8-10 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
8-11 is amended to read as follows:
8-12 (b) A license or certification may be renewed on payment of
8-13 a renewal fee prescribed by the board and on furnishing evidence
8-14 satisfactory to the board and the Appraiser Qualifications Board
8-15 that the holder of the license or certification has completed any
8-16 continuing education requirements imposed by rule under this Act,
8-17 met the experience requirements of this Act, and complied with any
8-18 minimum or maximum requirements of the Appraiser Qualifications
8-19 Board. The board shall accept as continuing education any
8-20 continuing education a licensed or certified appraiser was awarded
8-21 by a national appraiser organization approved by the board as a
8-22 provider of qualifying appraisal education.
8-23 SECTION 11. Section 15, Texas Appraiser Licensing and
8-24 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
8-25 is amended by adding Subsections (d)-(j) to read as follows:
8-26 (d) If the board determines that another state has
8-27 substantially equivalent certification or licensure requirements to
8-28 those of this state, an applicant who is certified or licensed
8-29 under the laws of that state may obtain certification as a state
8-30 certified real estate appraiser or licensure as a state licensed
8-31 real estate appraiser in this state under terms and conditions
8-32 determined by the board. The terms and conditions must comply with
8-33 the minimum criteria for certification or licensure issued by the
8-34 Appraiser Qualifications Board of the Appraisal Foundation. The
8-35 fee charged to an appraiser from another state and the form
8-36 submitted by the appraiser for reciprocity must be comparable to
8-37 the fee and form required by the state where the appraiser is
8-38 certified or licensed.
8-39 (e) An applicant for certification or licensure under this
8-40 Act who is not a resident of this state shall submit with the
8-41 application for certification or licensure an irrevocable consent
8-42 that service of process in an action against the applicant arising
8-43 out of the applicant's activities as a state certified real estate
8-44 appraiser or state licensed real estate appraiser in this state may
8-45 be made by delivery of the process to the commissioner of the
8-46 board, if the plaintiff in the action cannot, in the exercise of
8-47 due diligence, effect personal service on the applicant. If
8-48 process is served as provided by this subsection, the commissioner
8-49 shall immediately mail a copy of the materials served on the
8-50 commissioner by ordinary mail to the state certified real estate
8-51 appraiser or state licensed real estate appraiser at both the
8-52 appraiser's principal place of business and residence address.
8-53 (f) An application may not be accepted for an applicant from
8-54 a state that refuses to offer reciprocal treatment to residents of
8-55 this state who are certified or licensed real estate appraisers.
8-56 (g) The board shall seek verification from an applicant's
8-57 home state that the applicant's certification or license is valid
8-58 and in good standing. A reciprocal certificate or license may not
8-59 be issued without the verification required by this subsection.
8-60 (h) The holder of a certificate or license by reciprocity
8-61 must pay the federal registry fee and other fees that the board may
8-62 impose.
8-63 (i) A reciprocal certificate or license expires on the same
8-64 date that the certificate or license held by the applicant in the
8-65 applicant's home state expires or on the first anniversary of the
8-66 date the reciprocal certificate or license was issued, whichever
8-67 date occurs first.
8-68 (j) A reciprocal certificate or license is renewable under
8-69 terms and conditions determined by the board.
8-70 SECTION 12. Section 17, Texas Appraiser Licensing and
9-1 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
9-2 is amended to read as follows:
9-3 Sec. 17. Appraiser trainees. (a) The board may authorize a
9-4 person certified <or licensed> under this Act to sponsor an
9-5 appraiser trainee. An appraiser trainee may have more than one
9-6 sponsor. Each <The> certified <or licensed> appraiser and the
9-7 prospective appraiser trainee shall apply to the board for approval
9-8 of the appraiser trainee on a form prescribed by the board. The
9-9 board may set reasonable application and annual renewal fees for an
9-10 appraiser trainee. A prospective trainee must:
9-11 (1) be a citizen of the United States or a lawfully
9-12 admitted alien;
9-13 (2) be at least 18 years of age;
9-14 (3) be a legal resident of this state for at least 60
9-15 days immediately before the filing of the application; and
9-16 (4) satisfy the board as to the prospective trainee's
9-17 honesty, trustworthiness, and integrity.
9-18 (b) An appraiser trainee approved by the board may perform
9-19 an appraisal under the direction of one or more sponsors <the
9-20 trainee's sponsor>, one of whom <who> shall sign the appraiser
9-21 trainee's reports. A sponsor who signs a report shall <and> be
9-22 responsible to the public and to the board for the conduct of the
9-23 appraiser trainee. An appraiser trainee may co-sign a report under
9-24 this subsection. The board may reprimand an appraiser trainee or
9-25 suspend or revoke an appraiser trainee's authority to act as an
9-26 appraiser trainee for a violation of this Act or a rule adopted
9-27 under this section. A disciplinary proceeding involving an
9-28 appraiser trainee is governed by the Administrative Procedure and
9-29 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
9-30 Statutes).
9-31 SECTION 13. Section 18, Texas Appraiser Licensing and
9-32 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
9-33 is amended to read as follows:
9-34 Sec. 18. Broker's or salesman's license not required;
9-35 exemptions. (a) A person certified or licensed under this Act or
9-36 approved as an appraiser trainee under this Act <section> is not
9-37 required to be licensed as a real estate broker or salesman under
9-38 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
9-39 Statutes), and its subsequent amendments, <this Act> to appraise
9-40 real property in this state. A person certified or licensed as an
9-41 appraiser by another state is not required to be licensed as a real
9-42 estate broker or salesman <under this Act> to appraise real
9-43 property in this state <in connection with a federally related
9-44 transaction for which a federal financial institution's regulatory
9-45 agency or the Resolution Trust Corporation or its successor has
9-46 required the use of a state certified or licensed appraiser>.
9-47 (b) This Act does not prohibit:
9-48 (1) a real estate broker or salesman licensed under
9-49 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
9-50 Statutes) but not licensed or certified under this Act from
9-51 performing an appraisal in a nonfederally related transaction; <or>
9-52 (2) the requirement of a real estate broker's or
9-53 salesman's license for an appraisal in nonfederally related
9-54 transactions by a person not licensed or certified under this Act;
9-55 or
9-56 (3) a real estate broker or salesman licensed under
9-57 The Real Estate License Act (Article 6573a, Vernon's Texas Civil
9-58 Statutes) and its subsequent amendments from giving an opinion in
9-59 the ordinary course of the broker's or salesman's business to a
9-60 potential seller or third party as to the recommended listing price
9-61 of real estate or to a potential purchaser or third party as to the
9-62 recommended purchase price of real estate if the opinion given
9-63 under this subdivision is not referred to as an appraisal.
9-64 SECTION 14. Section 21, Texas Appraiser Licensing and
9-65 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
9-66 is amended to read as follows:
9-67 Sec. 21. OFFENSES. (a) A person commits an offense if the
9-68 person knowingly or intentionally violates Section 4(c) of this Act
9-69 or knowingly or intentionally furnishes false information in
9-70 connection with an affidavit filed under Section 9(e) of this Act.
10-1 (b) An offense under this section is a Class B <C>
10-2 misdemeanor.
10-3 SECTION 15. This Act takes effect September 1, 1993.
10-4 SECTION 16. (a) A member of the Texas Appraiser Licensing
10-5 and Certification Board immediately before the effective date of
10-6 this Act continues to serve as a member of the board on or after
10-7 the effective date of this Act for the remainder of the member's
10-8 term. The governor shall make appointments to the board on or
10-9 after the effective date of this Act as terms of members of the
10-10 board expire and vacancies occur on the board, as follows:
10-11 (1) the first and third appraiser member appointment
10-12 and the first and third public member appointment made on or after
10-13 the effective date of this Act shall be for terms that expire on
10-14 January 31 of the odd-numbered year following the appointment; and
10-15 (2) the second and fourth appraiser member appointment
10-16 and the second and fourth public member appointment made on or
10-17 after the effective date of this Act shall be for terms that expire
10-18 on January 31 of the even-numbered year following the appointment.
10-19 (b) The change in law made by this Act to the application
10-20 requirements for licensing or certification as a real estate
10-21 appraiser applies only to a license or certificate issued on or
10-22 after the effective date of this Act.
10-23 (c) The change in law made by this Act to the enforcement
10-24 procedures and contested case procedures under Sections 12 and 12A,
10-25 Texas Appraiser Licensing and Certification Act (Article 6573a.2,
10-26 Vernon's Texas Civil Statutes), as amended and as added by this
10-27 Act, applies only to a proceeding initiated on or after the
10-28 effective date of this Act. A proceeding initiated before the
10-29 effective date of this Act is governed by the law in effect on the
10-30 date the proceeding was initiated, and the former law is continued
10-31 in effect for that purpose.
10-32 SECTION 17. The importance of this legislation and the
10-33 crowded condition of the calendars in both houses create an
10-34 emergency and an imperative public necessity that the
10-35 constitutional rule requiring bills to be read on three several
10-36 days in each house be suspended, and this rule is hereby suspended.
10-37 * * * * *
10-38 Austin,
10-39 Texas
10-40 May 22, 1993
10-41 Hon. Bob Bullock
10-42 President of the Senate
10-43 Sir:
10-44 We, your Committee on State Affairs to which was referred H.B.
10-45 No. 2644, have had the same under consideration, and I am
10-46 instructed to report it back to the Senate with the recommendation
10-47 that it do pass and be printed.
10-48 Rosson,
10-49 Vice-Chairman
10-50 * * * * *
10-51 WITNESSES
10-52 FOR AGAINST ON
10-53 ___________________________________________________________________
10-54 Name: Roger Miller x
10-55 Representing: Foundation Appraisers
10-56 City: Austin
10-57 -------------------------------------------------------------------
10-58 Name: Paul Bierschwale x
10-59 Representing: Foundation Appraisers
10-60 City: Junction
10-61 -------------------------------------------------------------------
10-62 Name: Lynda P Vine x
10-63 Representing: Foundation Appraisers
10-64 City: San Antonio
10-65 -------------------------------------------------------------------