BILL ANALYSIS
S.B. 634
By: Wentworth (Counts)
5-16-95
Committee Report (Unamended)
BACKGROUND
Guidelines that are amended and adopted by the Appraiser
Qualifications Board and recognized by the Appraisal Subcommittee
necessitate that current Texas statutes be amended to comply with
the revised guidelines regulating real estate appraisers.
PURPOSE
S.B. 634 sets forth regulatory provisions of real estate
appraisers.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the Texas Appraiser Licensing and Certification Board under
SECTION 2, and SECTION 4 of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 3, Article 6573a.2, V.T.C.S. (Texas
Appraiser Licensing and Certification Act), by amending Subdivision
(1) and adding Subdivisions (15), (16), (17), (18), and (19), to
redefine "appraisal," and to define "complete appraisal,"
"departure provision," "evaluation," "limited appraisal," and
"self-contained report."
SECTION 2. Amends Section 5(a), Article 6573a.2, V.T.C.S., to set
forth authorizations for the Texas Appraiser Licensing and
Certification Board (board).
SECTION 3. Amends Section 6, Article 6573a.2, V.T.C.S., by adding
Subsection (l) to require the board to be subject to Chapter 325,
Government Code (Texas Sunset Act), and be subject to sunset review
in the next regular session of the legislature following the date
of the federal government's action, if the federal government
removes the requirements for the preparation or use of an appraisal
by federally regulated financial institutions. Provides that the
board is abolished and this Act expires on the 90th day after the
last day of the regular session of that legislature unless
continued in existence by that legislature as provided by that
chapter.
SECTION 4. Amends Sections 9(a), (c) and (e)-(g), Article 6573a.2,
V.T.C.S., as follows:
(a) Sets forth requirements for a person to become a state
certified real estate appraiser.
(c) Provides that acceptable appraisal experience includes
the categories recognized by the guidelines of the Appraisal
Subcommittee, rather than various appraisals and analyses.
Authorizes any combination of the categories to be acceptable
for completion of the experience requirement, rather than
1,000 hours of credit each year. Deletes a provision
prohibiting an applicant from receiving more than 500 hours of
credit each year. Makes a nonsubstantive change.
(e) Requires the board to adopt a reliable method to verify
the evidence of education submitted by an applicant for
certification or licensing.
(f) Requires the board to adopt a reliable method to verify
the evidence of acceptable appraisal experience submitted by
an applicant for certification or licensing by relying on
appropriate sampling techniques applied to not more than five
percent of the applications received by the board. Provides
that the applicant has at least 60 days after the date of
selection to prepare any records, if an application is
selected to be verified. Prohibits the information required
by the board from being more than the information the board
may obtain under Subsections (h)(1) and (2) of this section.
(g) Requires an applicant for certification or licensing to
furnish under oath a statement that the applicant has the
required number, rather than the 2,000, hours of experience in
performing appraisals as set out in the guidelines recognized
by the Appraisal Subcommittee.
(h) Authorizes the board to obtain information, if a consumer
complaint or peer complaint that is brought against an
applicant alleging fraud, incompetency, or malpractice and the
board finds the complaint is reasonable or if the board
determines other just cause exists for requiring further
information. Makes conforming changes.
(i) and (j) Redesignate Subdivisions (f) and (g). Makes
conforming changes.
SECTION 5. Amends Article 6573a.2, V.T.C.S., by adding Section 9A,
as follows:
Sec. 9A. ALTERNATIVE METHODS OF LICENSING. (a) Authorizes
an applicant to apply to the board to take the examination
under Section 10 of this Act, if an applicant for appraiser
trainee classification can demonstrate to the board that the
applicant has, after completing the applicant's classroom
education requirements, failed to secure sponsorship from at
least two certified appraisers to obtain the 2,000 hours of
acceptable experience required for licensing.
(b) Requires an applicant under this section who passes the
examination required under Section 10 of this Act and who
meets any other requirements for licensing, except for the
actual appraisal experience requirement, to be licensed by
the board.
(c) Requires an applicant receiving a license under
Subsection (b) of this section to complete the actual
appraisal experience requirement not later than the 60th
month after the date the license was issued. Provides that
failure to complete the appraisal experience requirement by
that date or to report completion of a portion of the
person's appraisal experience requirement each renewal
period constitutes grounds for the automatic revocation of
the license.
SECTION 6. Amends Sections 13(c) and (d), Article 6573a.2,
V.T.C.S., as follows:
(c) Deletes a requirement that the board collect from each
licensed or certified appraiser an annual registry fee
established by the board in an amount not to exceed $25 or the
maximum amount required by the Appraisal Subcommittee.
Requires the fee to be transmitted to the Appraisal
Subcommittee regularly as required by federal law, rather than
the Federal Financial Institutions Examination Council
(council), on an annual basis.
(d) Deletes a requirement that the board sent the fees to the
council as required by federal law.
SECTION 7. Amends Section 14(b), Article 6573a.2, V.T.C.S., to
require the board to accept as continuing education any educational
offering that complies with the guidelines recognized by the
Appraisal Subcommittee that a licensed or certified appraiser was
awarded by a national appraiser organization. Makes conforming
changes.
SECTION 8. Amends Sections 15(c), (d), and (f), Article 6573a.2,
V.T.C.S., as follows:
(c) Deletes real property being appraised as part of a
federally related transaction from the types of real property
a registered person is authorized to appraise without holding
a license.
(d) Authorizes an applicant who is certified or licensed
under the laws of another state, of which the Appraisal
Subcommittee has not disapproved the certification or
licensure requirements, to obtain certification as a state
certified or licensed real estate appraiser. Requires the
terms and conditions to comply with the minimum criteria for
certification or licensure recognized by the Appraisal
Subcommittee, rather than the Appraiser Qualifications Board
of the Appraisal Foundation.
(f) Prohibits acceptance of an application from an applicant
from a state that refuses to offer reciprocal treatment to
residents of this state who are certified or licensed real
estate appraisers.
SECTION 9. Amends Section 18(b), Article 6573a.2, V.T.C.S., to
provide that this Act does not prohibit a person duly authorized by
law from performing or providing an evaluation of real property for
another.
SECTION 10. Amends Section 21(a), Article 6573a.2, V.T.C.S., to
provide that a person commits an offense if the person violates
Section 4(c) or furnished false information in connection with an
affidavit filed under Section 9 of this Act.
SECTION 11. Effective date: September 1, 1995.
SECTION 12. Emergency clause.
SUMMARY OF COMMITTEE ACTION
SB 634 was considered in a Formal Meeting on May 16, 1995. The
Chair laid out SB 634, and explained the bill. There was no
objection. Rep. Jones moved that the full committee adopt SB 634,
and that it be reported favorably to the full House with the
recommendation that it do pass and be printed and placed on the
Local and Consent Calendar. The motion prevailed by the following
vote: AYES: 7, NAYS: 0, ABSENT: 2.