Download Zipped Amended WP 9 HB0271.ZIP 12,007 Bytes
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 271

             1     

APPRAISALS AND APPRAISERS

             2     
AMENDMENTS

             3     
2001 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Gerry A. Adair

             6      This act modifies the Real Estate Appraiser Licensing and Certification Act and the
             7      Property Tax Act. The act amends sections relating to the authority of appraisers in order
             8      to comply with federal guidelines. The act makes technical changes to appraisal provisions
             9      of the Property Tax Act to reflect changes made in appraiser terminology.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          17-17-2, as last amended by Chapter 133, Laws of Utah 2000
             13          59-2-701, as last amended by Chapter 117, Laws of Utah 1999
             14          59-2-702, as last amended by Chapter 5, Laws of Utah 1991
             15          59-2-703, as last amended by Chapter 173, Laws of Utah 1994
             16          61-2b-10, as last amended by Chapter 117, Laws of Utah 1999
             17          61-2b-13, as last amended by Chapter 117, Laws of Utah 1999
             18          61-2b-17, as last amended by Chapter 117, Laws of Utah 1999
             19      Be it enacted by the Legislature of the state of Utah:
             20          Section 1. Section 17-17-2 is amended to read:
             21           17-17-2. Assessor to be state qualified -- Vacancy -- Filling vacancy.
             22          (1) In addition to the requirements of Section 17-16-1 , any person elected to the office of
             23      county assessor after November 1, 1993, shall be a [state-registered,] state-licensed[,] or
             24      state-certified appraiser as defined in Title 61, Chapter 2b, prior to the expiration of [24] 36
             25      months from the day on which his term of office begins.
             26          (2) (a) If an assessor fails to meet the requirement of this section, the assessor's office is
             27      automatically vacant.


             28          (b) (i) In the event of a vacancy under this section, the county executive shall fill the
             29      vacancy in the manner provided for in Sections 17-53-104 and 20A-1-508 . However, a person
             30      selected to fill the vacancy must be a [state-registered,] state-licensed[,] or state-certified appraiser
             31      within six months after assuming the office of county assessor.
             32          (ii) If a [state-registered,] state-licensed[,] or state-certified appraiser cannot be found to
             33      fill a vacancy which resulted from the requirements of this section, the county executive may
             34      contract with a [state-registered,] state-licensed[,] or state-certified appraiser from outside the
             35      county to fill the remainder of the term in the office of county assessor.
             36          Section 2. Section 59-2-701 is amended to read:
             37           59-2-701. Appraisal by certified or licensed appraisers only -- Certification of elected
             38      county assessors.
             39          (1) Any person performing an appraisal for purposes of establishing fair market value of
             40      real estate or real property for the assessment roll shall be the holder of an appraiser's certificate[,]
             41      or license[, or registration] issued by the Division of Real Estate under Title 61, Chapter 2b, except
             42      uncertified[,] or unlicensed[, or unregistered] appraiser trainees may, for up to [24] 36 months after
             43      the date of hire or appointment as an appraiser trainee, appraise property under the direction of a
             44      holder of an appraiser's certificate or [registration] license issued by the division.
             45          (2) The limitations on appraisal authority under Subsections 61-2b-10 (1) and (2) and
             46      Section 61-2b-13 do not apply to a person performing an appraisal for purposes of establishing fair
             47      market value for the assessment roll.
             48          [(2)] (3) The commission may prescribe additional requirements for any person performing
             49      an appraisal for purposes of establishing fair market value for the assessment roll.
             50          [(3)] (4) The commission may, by rule, establish qualifications for personal property
             51      appraisers exempt from [registration] licensure under Title 61, Chapter 2b, Real Estate Appraiser
             52      [Registration] Licensing and Certification Act.
             53          [(4)] (5) It is the duty of a county assessor, as established in Section 17-17-1 , to ensure that
             54      the assessor's office is in compliance with this section and any additional rules or requirements for
             55      property appraisers established by the commission.
             56          Section 3. Section 59-2-702 is amended to read:
             57           59-2-702. Education and training of appraisers -- Continuing education for
             58      appraisers and county assessors.


             59          (1) The commission shall conduct, at its own expense, a program of education and training
             60      of appraisal personnel preparatory to the examination of applicants for appraisers' and assessors'
             61      [registration and] certification or licensure required by Section 59-2-701 .
             62          (2) To ensure that the assessment of property will be performed in a professional manner
             63      by competent personnel, meeting specified professional qualifications, the commission shall
             64      conduct a continuing program of in-service education and training for county assessors and
             65      property appraisers in the principles and practices of assessment and appraisal of property. For this
             66      purpose the commission may cooperate with educational institutions, local, regional, state, or
             67      national assessors' organizations, and with other appropriate professional organizations. The
             68      commission may reimburse the participation expenses incurred by assessors and other employees
             69      of the state or its subdivisions whose attendance at in-service training programs is approved by the
             70      commission.
             71          Section 4. Section 59-2-703 is amended to read:
             72           59-2-703. Commission to assist county assessors -- Appraisers provided upon request
             73      -- Costs of services -- Contingency fee arrangements prohibited.
             74          (1) The commission shall, upon request and pursuant to mutual agreement, provide county
             75      assessors with technical assistance and appraisal aid. It shall provide [registered or] certified or
             76      licensed appraisers who, upon request of the county assessor and pursuant to mutual agreement,
             77      shall perform appraisals of property and other technical services as needed by the county assessor.
             78      The costs of these services shall be computed by the commission upon the basis of the number of
             79      days of services rendered. Each county shall pay to the commission 50% of the cost of the services
             80      which they receive.
             81          (2) (a) Both the commission and counties may contract with a private firm or an individual
             82      to conduct appraisals.
             83          (b) Notwithstanding Title 63, Chapter 2, Government Records Access and Management
             84      Act, the commission and counties may disclose the name of the taxpayer and the taxpayer's address
             85      to the contract appraiser. A private appraiser is subject to the confidentiality requirements and
             86      penalty provisions provided in Title 63, Chapter 2, Part 8, [Government Records Access and
             87      Management Act] Remedies.
             88          (c) Neither the commission nor a county may contract with a private firm or an individual
             89      under a contingency fee arrangement to assess property or prosecute or defend an appeal. An


             90      appraisal that has been prepared on a contingency fee basis may not be allowed in any proceeding
             91      before a county board of equalization or the commission.
             92          Section 5. Section 61-2b-10 is amended to read:
             93           61-2b-10. State-licensed appraiser -- Authority and qualifications.
             94          (1) A state-licensed appraiser is authorized to appraise [all types of real property in this
             95      state if the appraisal: (a) is not performed in conjunction with a federally related transaction; or
             96      (b) does not exceed the] complex and noncomplex 1-4 family residential units in this state having
             97      a transaction value permitted under the Financial Institutions Reform, Recovery, and Enforcement
             98      Act of 1989, and related federal regulations.
             99          (2) A state-licensed appraiser is also authorized to appraise vacant or unimproved land
             99a      h HAVING A TRANSACTION VALUE PERMITTED UNDER THE FINANCIAL INSTITUTIONS REFORM,
             99b      RECOVERY, AND ENFORCEMENT ACT OF 1989, AND RELATED FEDERAL REGULATIONS h that
             100      is utilized for 1-4 family purposes or for which the highest and best use is 1-4 family purposes and
             101      subdivisions for which a development analysis/appraisal is not necessary.
             102          [(2)] (3) A state-licensed appraiser may not issue a certified appraisal report.
             103          [(3)] (4) To qualify as a state-licensed appraiser, an applicant must:
             104          (a) be of good moral character;
             105          (b) pass the licensing examination with a satisfactory score as determined by the board;
             106          (c) successfully complete not less than 90 classroom hours in courses of study approved
             107      by the board that relate to:
             108          (i) real estate appraisal;
             109          (ii) the Uniform Standards of Professional Appraisal Practice; and
             110          (iii) ethical rules to be observed by a real estate appraiser as required by Section 61-2b-27 ;
             111      and
             112          (d) possess the minimum number of hours of experience in real property appraisal as
             113      established by rule.
             114          [(4)] (5) The courses of study under Subsection (3)(b) shall be conducted by:
             115          (a) an accredited university, college, or junior college;
             116          (b) an approved appraisal society, institute, or association; or
             117          (c) such other school as the board may approve.
             118          [(5)] (6) The board shall require and pass upon proof necessary to determine the honesty,
             119      competency, integrity, and truthfulness of each applicant.
             120          Section 6. Section 61-2b-13 is amended to read:


             121           61-2b-13. State-certified appraisers -- Authority.
             122          (1) A state-certified residential appraiser is authorized to appraise all types of real estate
             123      which a state-licensed appraiser is authorized to appraise. [In addition, a]
             124          (2) A state-certified residential appraiser is also authorized to appraise 1-4 unit residential
             125      real estate [in federally related transactions so long as net income capitalization analysis is not
             126      required by the terms of the assignment. A state-certified residential appraiser is also authorized
             127      to appraise building lots, vacant land, and subdivisions in federally related transactions so long as
             128      discounted cash flow analysis is not required by the terms of the assignment] without regard to
             129      transaction value or complexity.
             130          (3) A state-certified residential appraiser is not authorized to appraise subdivisions for
             131      which a development analysis/appraisal is necessary.
             132          [(2)] (4) A state-certified general appraiser is authorized to appraise all types of real estate
             133      and real property.
             134          Section 7. Section 61-2b-17 is amended to read:
             135           61-2b-17. State-certified, state-licensed, and state-registered appraisers --
             136      Restrictions on use of terms -- Conduct prohibited.
             137          (1) (a) The terms "state-certified general appraiser," "state-certified residential appraiser,"
             138      "state-licensed appraiser," "state-registered appraiser," and "senior appraiser" may only be used to
             139      refer to an individual who is certified, licensed, or registered under this chapter and may not be
             140      used following, or immediately in connection with, the name or signature of a firm, partnership,
             141      corporation, or group, or in any manner that it might be interpreted as referring to a firm,
             142      partnership, corporation, group, or to anyone other than the individual who is certified, registered,
             143      or licensed under this chapter.
             144          (b) This requirement shall not be construed to prevent a state-certified general appraiser
             145      from signing an appraisal report on behalf of a corporation, partnership, firm, or group practice if
             146      it is clear that only the individual is certified and that the corporation, partnership, firm, or group
             147      practice is not.
             148          (c) Except as provided in Section 61-2b-25 , no certificate, registration, or license may be
             149      issued under the provisions of this chapter to a corporation, partnership, firm, or group.
             150          (2) (a) No person other than a state-certified general appraiser or state-certified residential
             151      appraiser, may assume or use any title, designation, or abbreviation likely to create the impression


             152      of certification in this state as a real estate appraiser.
             153          (b) No person other than a state-licensed appraiser may assume or use any title,
             154      designation, or abbreviation likely to create the impression of licensure in this state as a real estate
             155      appraiser.
             156          (3) (a) Only an individual who has qualified under the certification requirements of
             157      Sections 61-2b-14 and 61-2b-15 is authorized to prepare and sign a certified appraisal report
             158      relating to real estate or real property in this state.
             159          (b) If a certified appraisal report is prepared and signed by a state-certified residential
             160      appraiser, the certified appraisal report shall state, immediately following the signature on the
             161      report, "State-Certified Residential Appraiser."
             162          (c) If a certified appraisal report is prepared and signed by a state-certified general
             163      appraiser, the certified appraisal report shall state, immediately following the signature on the
             164      report, "State-Certified General Appraiser."
             165          (d) An appraisal report prepared by a state-licensed appraiser shall state, immediately
             166      following the signature on the report, "[State-licensed] State-Licensed Appraiser[,]." [along with
             167      a disclosure that the appraisal may not qualify for federally related transactions.]
             168          (e) When signing a certified appraisal report, a state-certified appraiser shall also place on
             169      the report, immediately below his signature, a seal on the report showing his certificate number
             170      and its expiration date.
             171          (f) A state-certified residential appraiser may not prepare a certified appraisal report
             172      outside his area of expertise as defined in Section 61-2b-13 . However, a state-certified residential
             173      appraiser may prepare an appraisal report for any type property for which a state-licensed appraiser
             174      is authorized to appraise under Section 61-2b-10 .
             175          (g) A state-licensed appraiser or state-registered appraiser who assisted in the preparation
             176      of a certified appraisal report is authorized to cosign the certified appraisal report.
             177          (4) A person who has not qualified under either Section 61-2b-14 or 61-2b-15 may not
             178      describe or refer to any appraisal or appraisal report relating to real estate or real property in this
             179      state by the terms "certified appraisal" or "certified appraisal report."





Legislative Review Note
    as of 1-24-01 6:45 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]