BILL ANALYSIS



C.S.H.B. 612
By: Counts
4-26-95
Committee Report (Substituted)


BACKGROUND


Current law in the licensing and certification program for Texas
real estate appraisers is inadequate and certain changes need to be
made in order to bring this Act in compliance with various federal
laws.  In this bill Texas law is to be no more stringent than
federal laws which govern the process of real estate appraisal. 
Provisions for enforcement of the licensing and certification
program are limited and need to be expanded.  Also provisions for
rulemaking authority for the Texas Appraiser Licensing and
Certification Board need to be current and a part of the Act. 

PURPOSE

CSHB 612 streamlines procedures and clarifies the parameters under
which the Texas Appraiser Licensing and Certification Board
operates.  It also will allow the TALCB to adopt rules that will
conform with minimum written standards of the Appraisal
Subcommittee by incorporating the Uniform Standards of Professional
Appraisal Practice.

RULEMAKING AUTHORITY

This Act gives the Texas Appraiser Licensing and Certification
Board the authority to adopt rules to implement the provisions of
the law and establish fees in accordance with SECTION 2 of the
bill, and in SECTION 4 of the bill.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 3, Texas Appraiser Licensing and
Certification Act (Art. 6573a.2, V.T.C.S.). Amends the definition
of appraisal.  Provides a complete definition of appraisal. 
Provides definition of Departure Provision.  Definition of
evaluation.  Definition of limited appraisal.   Definition of self-contained report

SECTION 2:  Amends Section 5(a), Texas Appraiser Licensing and
Certification Act (Art. 6573a.2, V.T.C.S.). Amends the section on
powers and duties of the Board. The Changes
     to 5 (a) (2) and 5 (a) (3) are technical and for clarification
purposes.  The changes 
     to 5 (a) (5) Texas statue will comply with current directives. 
5 (a) (8) differentiates
     between the function of performing and reporting an appraisal.
     5(a)(11) and 5(a)(12) are to make Texas statute comply with
current directives.

SECTION 3:  Amends Section 6, Texas Appraiser Licensing and
Certification Act (Art. 6573a.2, V.T.C.S.).  Provides for sunset
review if federal requirements are abolished.

SECTION 4:  Amends Section 9(a), (c) and (e)-(j), Texas Appraiser
Licensing and Certification Act (Art. 6573a.2, V.T.C.S.).  Changes
Licensing and Certification Requirements
     9 (a) and 9 (g) amends the criteria establishing guidelines
for the education and 
     experience requirements for certified and licensed appraisers.
     The changes to 9(c) are made to recognize that area that
constitutes acceptable appraisal 
     experience may from time to time be amended.
     9(e) and 9(f) have been added so that Texas statute will
comply with current directives.


SECTION 5:  Amends Texas Appraiser Licensing and Certification Act
(Art. 6573a.2, V.T.C.S.). By adding Section 9A ALTERNATIVE METHODS
OF LICENSING
     (a) Addition to allow individuals who are unable to find
sponsorship as an appraiser   trainee to become licensed.

SECTION 6:  Amends Section 13(c) and (d) Texas Appraiser Licensing
and Certification Act (Art. 6573a.2, V.T.C.S.).  Technical changes
to clarify fees as to amount, and where the fees forwarded on a
quarterly basis instead of annually.

SECTION 7:  Amends Section 14(b) Texas Appraiser Licensing and
Certification Act (Art. 6573a.2, V.T.C.S.).  Addresses and amends
requirements for continuing education.  Approval is given to either
qualifying ed or continuing ed.

SECTION 8:  Amends Section 15(c), (d), and (f) Texas Appraiser
Licensing and Certification Act (Art. 6573a.2, V.T.C.S.).  Provides
for Nonresident Appraiser on temporary basis
     not to exceed 60 days. (d) Out of state appraiser can be
licensed if they meet
     terns and conditions set by the board (f) Out of state
applicant must be from reciprocal 
     treatment state.

SECTION 9:  Amends Section 18(b), Texas Appraiser Licensing and
Certification Act (Art. 6573a.2, V.T.C.S.).  Adds the definition of
evaluation to the statute.

SECTION 10:  Amends Section 21(a), Texas Appraiser Licensing and
Certification Act (Art. 6573a.2, V.T.C.S.).  Addresses the offense
of intentionally furnishing false information.

SECTION 11:    Effective date.  September 1, 1995

SECTION 12:    Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

As substituted, SECTION 1 of the CSHB 612 would amend Article
6573a2, by amending §(1) and adding §(15), (16), (17), (18) and
(19) of the Texas Appraiser Licensing and Certification Act in §3
(1) to amend the definition of appraisal, and in §(15) provides a
complete clarification of the definition of appraisal.  §(16) is
definition of Departure Provision, §(17) definition of evaluation,
§(18) definition of limited appraisal and §(19) provides a
definition of Self-contained Report.  All of this language appears
for the first time in the committee substitute.

SECTION 2 of the substitute replaces SECTION 1 of the original
bill.  5(a) is where the original bill began with §(a) the board
may: §(1) speaks to adoption of rules and adds in accordance with
this Act, deletes as provided by. In §(2) the substitute use set
forth in place of required concerning qualifications. §(3) adds,
guideline recognized by and deletes, threshold requirements adopted
by the Appraiser Qualifications Board or, §(5) addresses adoption
of rules by deleting, establishing a code of professional conduct
and ethics for, and adds new language in the substitute, to comply
with, and of competency and professional conduct and ethics.  §(8)
changes wording by striking, a written  and adding, and the
conveyance of an appraisal report, also the sentence that states,
the appraisal regulations adopted by a federal financial
institution regulatory agency or, is stricken.  §(10) is omitted
from the substitute, this section addressed subpoena powers, and
other powers involved in investigation of alleged violations of the
Act.  The new §(10) provides for the institution of action in
Travis County, with advice from the attorney general for violation
of the rules of this Act, replacing §(11) of the original
legislation, under the renumbering in the substitute.

The language from SECTION 2 of the original bill which amends
Section 10(a) of the Act was not included in the committee
substitute.

SECTION 7 of the substitute replaces SECTION 3 of the original
bill, and goes on to amend Section 14(b) of the Act to strike out
language regarding the Appraiser Qualifications Board.

SECTION 1,3,4,5,6,8,9,10 are new language added to the committee
substitute to clarify and specify the intent of the legislation. 
SECTION 11 and 12 in the substitute replace the emergency clause
and effective date found in SECTION 4 and 5 of the original
legislation.


SUMMARY OF COMMITTEE ACTION

HB 612 was heard in a Public Hearing on April 26, 1995.  The Chair
laid out HB 612, and recognized the author Rep. Counts to explain
the bill.  Rep. Jones offered a complete committee substitute, and
moved that the full committee adopt CSHB 612.  There was no
objection.  The Chair recognized the following persons to testify
in favor of the bill:
     Ms. Lynda P. Vine, FACT-Foundation Appraisers Coalition of
Tx.;
The Chair recognized the following persons to testify as a Resource
Witness, registering neutral on the bill:
     Mr. Renil C. Liner, Tx. Appraiser Licensing and Certification
Board;
The Chair recognized Rep. Counts to close on the bill.  The Chair
recognized  members for questions.  Rep. Yarbrough moved that the
full committee adopt HB 612 as substituted, and that it be reported
favorably to the full House with the recommendation that it do pass
and be printed.  The motion prevailed by  the following vote: AYES:
5, NAYS: 0, ABSENT: 4.