By Wentworth S.B. No. 634
74R5232 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 2, 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 Sec. 2. PURPOSE. This law is enacted to:
1-8 (1) conform state law provisions relating to the
1-9 regulation of real estate appraisers to the requirements adopted
1-10 under Title XI, Financial Institutions Reform, Recovery, and
1-11 Enforcement Act of 1989 (12 U.S.C. Section 3331 et seq.); and
1-12 (2) protect the public, consumers, and end users with
1-13 respect to appraisals by and appraisal-related products of persons
1-14 subject to this Act.
1-15 SECTION 2. Section 3, Texas Appraiser Licensing and
1-16 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
1-17 is amended by amending Subdivision (1) and adding Subdivisions
1-18 (15), (16), and (17) to read as follows:
1-19 (1) "Appraisal" means the act or process of estimating
1-20 value or an estimate of value <a written statement used in
1-21 connection with a federally related transaction that is
1-22 independently and impartially prepared by a licensed or certified
1-23 appraiser that states an opinion of the defined value of an
1-24 adequately described property as of a specific date that is
2-1 supported by the presentation and analysis of relevant market
2-2 information>.
2-3 (15) "Complete appraisal" means an appraisal performed
2-4 without invoking the departure provision.
2-5 (16) "Departure provision" means a limited departure
2-6 from a requirement of the Uniform Standards of Professional
2-7 Appraisal Practice that is:
2-8 (A) classified as a specific guideline rather
2-9 than a binding requirement; and
2-10 (B) permitted only if the result of the
2-11 departure is not confusing or misleading and the specific guideline
2-12 from which the appraiser departs is reported.
2-13 (17) "Limited appraisal" means an appraisal in which
2-14 the departure provision is invoked.
2-15 SECTION 3. Section 5(a), Texas Appraiser Licensing and
2-16 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
2-17 as amended by Chapters 416 and 980, Acts of the 73rd Legislature,
2-18 Regular Session, 1993, is amended to read as follows:
2-19 (a) The board shall <may>:
2-20 (1) adopt rules for the licensing and certification of
2-21 real estate appraisers in this state in accordance with this Act
2-22 and consistent with<, but no more stringent than,> applicable
2-23 federal law;
2-24 (2) establish categories of appraiser certification
2-25 and appraiser licensing, consistent with the categories of
2-26 appraiser certification and appraiser licensing recognized by the
2-27 Appraiser Qualifications Board, the Appraisal Standards Board, and
3-1 the Appraisal Subcommittee, and prescribe qualifications for each
3-2 category that comply with <are no more stringent than> the
3-3 qualifications set forth <required> by the Appraiser Qualifications
3-4 Board, the Appraisal Standards Board, and the Appraisal
3-5 Subcommittee for each category;
3-6 (3) adopt rules relating to the education and
3-7 experience requirements for certification and licensing as an
3-8 appraiser in a manner that is consistent with<, but no more
3-9 stringent than,> the guidelines <threshold requirements> adopted by
3-10 the Appraiser Qualifications Board and required by <or> the
3-11 Appraisal Subcommittee;
3-12 (4) adopt rules relating to the qualifying examination
3-13 required for certification or licensing as an appraiser under this
3-14 Act;
3-15 (5) adopt rules requiring <establishing a code of
3-16 professional conduct and ethics for> a certified or licensed
3-17 appraiser to comply with <that meets the> standards of competency,
3-18 professional conduct, and ethics generally accepted by the
3-19 Appraisal Subcommittee and prescribed by the Uniform Standards of
3-20 Professional Appraisal Practice, as adopted by the Appraisal
3-21 Foundation;
3-22 (6) establish reasonable fees to implement this Act,
3-23 including an application fee for certification or licensing, an
3-24 examination fee, a renewal fee for a certificate or license, a
3-25 federal appraiser registry fee, and other appropriate fees;
3-26 (7) adopt rules relating to continuing education
3-27 requirements for a licensed or certified appraiser;
4-1 (8) adopt rules relating to the standards for the
4-2 development of an <a written> appraisal and the conveyance of an
4-3 appraisal report by a certified or licensed appraiser that are
4-4 consistent with <the appraisal regulations adopted by a federal
4-5 financial institution regulatory agency or> the Uniform Standards
4-6 of Professional Appraisal Practice;
4-7 (9) grant or deny an application for the certification
4-8 and licensing of a real estate appraiser; <and>
4-9 (10) request and, if necessary, compel by subpoena the
4-10 attendance of witnesses for examination under oath and the
4-11 production for inspection and copying of books, accounts, records,
4-12 papers, correspondence, documents, and other evidence relevant to
4-13 the investigation of alleged violations of this Act;<.>
4-14 (11) <(10)> institute an action in its own name in a
4-15 district court of Travis County against a person, firm,
4-16 corporation, partnership, or any other group or combination of
4-17 persons to enjoin a violation of this Act or a rule adopted by the
4-18 board under this Act with the attorney general as legal advisor to
4-19 the board to provide any necessary legal assistance;
4-20 (12) <(11)> adopt rules as necessary to conform with
4-21 the minimum written standards of the Appraisal Subcommittee by
4-22 incorporating the Uniform Standards of Professional Appraisal
4-23 Practice; and
4-24 (13) <(12)> conduct disciplinary proceedings with
4-25 regard to certified and licensed appraisers in this state <except
4-26 in circumstances when an appraiser is required to be licensed or
4-27 certified by another state agency to perform property appraisals>.
5-1 SECTION 4. Sections 9(a)-(c) and (e)-(g), Texas Appraiser
5-2 Licensing and Certification Act (Article 6573a.2, Vernon's Texas
5-3 Civil Statutes), are amended to read as follows:
5-4 (a) To become a state certified real estate appraiser, a
5-5 person must:
5-6 (1) pass the real estate appraiser certification
5-7 examination required under Section 10 of this Act;
5-8 (2) successfully complete the number and type of
5-9 classroom hours required by the guidelines of the Appraiser
5-10 Qualifications Board for the levels of certification that may from
5-11 time to time be approved; and
5-12 (3) present evidence satisfactory to the board that
5-13 the applicant has at least the minimum number of <2,000> hours of
5-14 experience in appraisals over the specified number <a minimum> of
5-15 <two> calendar years as required by the guidelines of the Appraiser
5-16 Qualifications Board.
5-17 (b) To become a state licensed real estate appraiser, a
5-18 person must:
5-19 (1) pass the real estate appraiser licensing
5-20 examination required by Section 10 of this Act;
5-21 (2) successfully complete at least the minimum number
5-22 of <75> classroom hours in subjects determined by the board to be
5-23 related to real estate appraisal, including 15 classroom hours of
5-24 coverage of the Uniform Standards of Professional Appraisal
5-25 Practice; and
5-26 (3) present evidence satisfactory to the board that
5-27 the applicant has the equivalent of 2,000 hours of experience in
6-1 appraisals.
6-2 (c) Acceptable appraisal experience for the purposes of the
6-3 determination of the qualifications of an applicant for
6-4 certification or licensing under this Act includes the categories
6-5 recognized by the guidelines of the Appraiser Qualifications Board
6-6 <a fee and staff appraisal, an ad valorem tax appraisal, an
6-7 appraisal review, an appraisal analysis, real estate counseling, a
6-8 highest and best use analysis, a feasibility analysis, a
6-9 feasibility study, or teaching of appraisal courses>. Any one or
6-10 any combination of these categories may be acceptable for the
6-11 completion of the experience requirement <1,000 hours of credit
6-12 each year. An applicant may receive not more than 500 hours of
6-13 credit each year from the teaching of appraisal courses>.
6-14 Experience as a real estate lending officer of a financial
6-15 institution or as a real estate broker is acceptable experience if
6-16 the experience includes the actual performance or professional
6-17 review of real estate appraisals. An hour of experience means 60
6-18 minutes expended in one or more of the acceptable appraisal
6-19 experience areas recognized <designated> by this Act. Calculation
6-20 of the hours of experience must be based solely on actual hours of
6-21 experience.
6-22 (e) An applicant for certification or licensing must furnish
6-23 under oath, on an affidavit form prescribed by the board, a
6-24 statement that the applicant has the required number <equivalent>
6-25 of <2,000> hours of experience in performing appraisals as set out
6-26 in the guidelines of the Appraiser Qualifications Board.
6-27 (f) The board shall adopt a reliable method to validate the
7-1 evidence of education and experience submitted by an applicant for
7-2 certification or licensing by relying on appropriate sampling
7-3 techniques applied to at least 30 percent of the applications
7-4 received by the board.
7-5 (g) If a consumer complaint or peer complaint is brought
7-6 against an <the> applicant, certified appraiser, or licensed
7-7 appraiser <alleging fraud, incompetency, or malpractice> and the
7-8 board finds the complaint is reasonable or if the board determines
7-9 other just cause exists for requiring further information, the
7-10 board may obtain the additional information or documentation
7-11 requested by:
7-12 (1) requiring the applicant, certified appraiser, or
7-13 licensed appraiser to complete a form, prescribed by the board,
7-14 that includes detailed listings of appraisal experience showing,
7-15 for each appraisal claimed by the applicant, the city or county
7-16 where the appraisal was performed, the type and description of the
7-17 building or property appraised, the approaches to value utilized in
7-18 the appraisal, the actual number of hours expended on the
7-19 appraisal, and other information determined to be appropriate by
7-20 the board; or
7-21 (2) engaging in other research determined to be
7-22 appropriate by the board.
7-23 (h) <(f)> An applicant for licensing or certification must
7-24 satisfy the board as to the applicant's honesty, trustworthiness,
7-25 and integrity.
7-26 (i) <(g)> An applicant for licensing or certification shall
7-27 be given credit toward fulfilling the requirements of Subsections
8-1 (a)(2) and (b)(2) of this section for classroom hours taken in the
8-2 course of becoming licensed as a real estate broker or salesman or
8-3 for taking professional development or continuing education
8-4 courses, whether as a real estate broker or salesman or as an
8-5 employee of a financial institution engaged in real estate-related
8-6 financial transactions, if the classroom hours satisfy the
8-7 requirements set forth by the guidelines of the Appraiser
8-8 Qualifications Board.
8-9 SECTION 5. Sections 13(c) and (d), Texas Appraiser Licensing
8-10 and Certification Act (Article 6573a.2, Vernon's Texas Civil
8-11 Statutes), are amended to read as follows:
8-12 (c) The board shall collect from each licensed or certified
8-13 appraiser an annual registry fee established by the board in an
8-14 amount not to exceed <$25 or> the <maximum> amount required by the
8-15 Appraisal Subcommittee. The fee shall be transmitted to the
8-16 Appraisal Subcommittee <council> on an annual basis.
8-17 (d) All registry fees collected by the board shall be
8-18 deposited in the state treasury to the credit of a special fund to
8-19 be known as the appraiser registry fund. The board shall send the
8-20 fees to the Appraisal Subcommittee <council> as required by federal
8-21 law.
8-22 SECTION 6. Section 14(b), Texas Appraiser Licensing and
8-23 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
8-24 is amended to read as follows:
8-25 (b) A license or certification may be renewed on payment of
8-26 a renewal fee prescribed by the board and on furnishing evidence
8-27 satisfactory to the board <and the Appraiser Qualifications Board>
9-1 that the holder of the license or certification has completed <any>
9-2 continuing education requirements that comply with the guidelines
9-3 of the Appraisal Qualifications Board and are imposed by rule under
9-4 this Act, met the experience requirements of this Act, and complied
9-5 with the guidelines <any minimum or maximum requirements> of the
9-6 Appraiser Qualifications Board. The board shall accept as
9-7 continuing education any educational offering that complies with
9-8 the guidelines of the Appraiser Qualifications Board that
9-9 <continuing education> a licensed or certified appraiser was
9-10 awarded by a national appraiser organization approved by the board
9-11 as a provider of qualifying appraisal education.
9-12 SECTION 7. Sections 15(c), (d), and (f), Texas Appraiser
9-13 Licensing and Certification Act (Article 6573a.2, Vernon's Texas
9-14 Civil Statutes), are amended to read as follows:
9-15 (c) A person registered with the board under this section
9-16 may appraise real property in this state without holding a license
9-17 or certification issued under this Act if:
9-18 (1) the state, commonwealth, or territory licensing
9-19 and certification program under which the person holds a license or
9-20 certification has not been disapproved by the Appraisal
9-21 Subcommittee; and
9-22 (2) <the real property being appraised is part of a
9-23 federally related transaction; and>
9-24 <(3)> the appraiser's business in this state is of a
9-25 temporary nature not to exceed 60 days.
9-26 (d) If the board determines that another state has
9-27 <substantially equivalent> certification or licensure requirements
10-1 that have not been disapproved by the Appraisal Subcommittee <to
10-2 those of this state>, an applicant who is certified or licensed
10-3 under the laws of that state may obtain certification as a state
10-4 certified real estate appraiser or licensure as a state licensed
10-5 real estate appraiser in this state under terms and conditions set
10-6 <determined> by the board. The terms and conditions must comply
10-7 with the minimum criteria for certification or licensure issued by
10-8 the Appraiser Qualifications Board of the Appraisal Foundation.
10-9 The fee charged to an appraiser from another state and the form
10-10 submitted by the appraiser for reciprocity must be comparable to
10-11 the fee and form required by the state where the appraiser is
10-12 certified or licensed.
10-13 (f) An application may not be accepted from <for> an
10-14 applicant from a state that refuses to offer reciprocal treatment
10-15 to residents of this state who are certified or licensed real
10-16 estate appraisers.
10-17 SECTION 8. Section 21(a), Texas Appraiser Licensing and
10-18 Certification Act (Article 6573a.2, Vernon's Texas Civil Statutes),
10-19 is amended to read as follows:
10-20 (a) A person commits an offense if the person knowingly or
10-21 intentionally violates Section 4(c) of this Act or knowingly or
10-22 intentionally furnishes false information in connection with an
10-23 affidavit filed under Section 9 <9(e)> of this Act.
10-24 SECTION 9. This Act takes effect September 1, 1995.
10-25 SECTION 10. The importance of this legislation and the
10-26 crowded condition of the calendars in both houses create an
10-27 emergency and an imperative public necessity that the
11-1 constitutional rule requiring bills to be read on three several
11-2 days in each house be suspended, and this rule is hereby suspended.