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.