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H.B. 149

             1     

REAL ESTATE APPRAISER AMENDMENTS

             2     
1999 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Gerry A. Adair

             5      AN ACT RELATING TO REAL ESTATE; REVISING AND RENAMING THE REAL ESTATE
             6      APPRAISER LICENSING AND CERTIFICATION ACT; REVISING AND RENAMING THE
             7      REAL ESTATE APPRAISER LICENSING AND CERTIFICATION BOARD; PHASING OUT
             8      STATE-REGISTERED APPRAISERS; CREATING A CLASSIFICATION OF
             9      STATE-LICENSED APPRAISERS; AND MAKING TECHNICAL CHANGES.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          61-2b-1, as enacted by Chapter 212, Laws of Utah 1990
             13          61-2b-2, as last amended by Chapter 199, Laws of Utah 1998
             14          61-2b-3, as last amended by Chapter 131, Laws of Utah 1996
             15          61-2b-6, as last amended by Chapter 131, Laws of Utah 1996
             16          61-2b-7, as last amended by Chapters 131 and 243, Laws of Utah 1996
             17          61-2b-8, as last amended by Chapter 245, Laws of Utah 1991
             18          61-2b-9, as enacted by Chapter 212, Laws of Utah 1990
             19          61-2b-10, as last amended by Chapter 162, Laws of Utah 1993
             20          61-2b-11, as enacted by Chapter 212, Laws of Utah 1990
             21          61-2b-13, as last amended by Chapter 131, Laws of Utah 1996
             22          61-2b-14, as last amended by Chapter 131, Laws of Utah 1996
             23          61-2b-15, as last amended by Chapter 131, Laws of Utah 1996
             24          61-2b-16, as last amended by Chapter 162, Laws of Utah 1993
             25          61-2b-17, as last amended by Chapter 131, Laws of Utah 1996
             26          61-2b-18, as enacted by Chapter 212, Laws of Utah 1990
             27          61-2b-19, as enacted by Chapter 212, Laws of Utah 1990


             28          61-2b-20, as enacted by Chapter 212, Laws of Utah 1990
             29          61-2b-21, as enacted by Chapter 212, Laws of Utah 1990
             30          61-2b-22, as last amended by Chapter 199, Laws of Utah 1998
             31          61-2b-23, as enacted by Chapter 212, Laws of Utah 1990
             32          61-2b-24, as enacted by Chapter 212, Laws of Utah 1990
             33          61-2b-25, as enacted by Chapter 212, Laws of Utah 1990
             34          61-2b-26, as last amended by Chapter 245, Laws of Utah 1991
             35          61-2b-27, as enacted by Chapter 212, Laws of Utah 1990
             36          61-2b-28, as last amended by Chapter 199, Laws of Utah 1998
             37          61-2b-29, as last amended by Chapter 199, Laws of Utah 1998
             38          61-2b-31, as last amended by Chapter 199, Laws of Utah 1998
             39          61-2b-32, as enacted by Chapter 212, Laws of Utah 1990
             40          61-2b-33, as enacted by Chapter 212, Laws of Utah 1990
             41          61-2b-34, as last amended by Chapter 245, Laws of Utah 1991
             42          61-2b-36, as last amended by Chapter 131, Laws of Utah 1996
             43          61-2b-38, as last amended by Chapter 245, Laws of Utah 1991
             44          61-2b-39, as enacted by Chapter 212, Laws of Utah 1990
             45          61-2b-40, as last amended by Chapter 131, Laws of Utah 1996
             46      ENACTS:
             47          61-2b-10.5, Utah Code Annotated 1953
             48          61-2b-15.6, Utah Code Annotated 1953
             49          61-2b-30.5, Utah Code Annotated 1953
             50      REPEALS:
             51          61-2b-15.5, as last amended by Chapter 131, Laws of Utah 1996
             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Section 61-2b-1 is amended to read:
             54           61-2b-1. Title.
             55          This chapter is known as the "Real Estate Appraiser [Registration] Licensing and
             56      Certification Act."
             57          Section 2. Section 61-2b-2 is amended to read:
             58           61-2b-2. Definitions.


             59          As used in this chapter:
             60          (1) (a) "Appraisal" means an unbiased analysis, opinion, or conclusion relating to the
             61      nature, quality, value, or utility of specified interests in, or aspects of, identified real estate or
             62      identified real property.
             63          (b) Appraisals shall be classified by the nature of the assignment as a valuation appraisal,
             64      an analysis assignment, or a review assignment in accordance with the following definitions:
             65          (i) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that estimates
             66      the value of an identified parcel of real estate or identified real property at a particular point in
             67      time.
             68          (ii) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that relates
             69      to the nature, quality, or utility of identified real estate or identified real property.
             70          (iii) "Review assignment" means an unbiased analysis, opinion, or conclusion that forms
             71      an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
             72      assignment.
             73          (2) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as an
             74      Illinois not-for-profit corporation on November 30, 1987.
             75          (3) (a) "Appraisal report" means any communication, written or oral, of an appraisal.
             76          (b) An appraisal report shall be classified by the nature of the assignment as a valuation
             77      report, analysis report, or review report in accordance with the definitions provided in Subsection
             78      (1)(b).
             79          (c) The testimony of a person relating to the person's analyses, conclusions, or opinions
             80      concerning identified real estate or identified real property is considered to be an oral appraisal
             81      report.
             82          (4) "Board" means the Real Estate Appraiser [Registration] Licensing and Certification
             83      Board that is established [under this chapter to provide technical assistance and make
             84      recommendations to the division and perform certain ancillary functions] in Section 61-2b-7 .
             85          (5) "Certified appraisal report" means a written or oral appraisal report that is certified [as
             86      such] by a state-certified general appraiser or state-certified residential appraiser. [The certification
             87      of an appraisal report by a state-certified real estate appraiser represents to the public that the
             88      appraisal report meets the appraisal standards established under this chapter.]
             89          (6) (a) (i) "Consultation service" means an engagement to provide a real estate valuation


             90      service analysis, opinion, conclusion, or other service that does not fall within the definition of
             91      appraisal.
             92          (ii) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
             93      review assignment [as provided in Subsection (1)(b)].
             94          (b) Regardless of the intention of the client or employer, if a person prepares an unbiased
             95      analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to be an
             96      appraisal and not a consultation service.
             97          (7) "Contingent fee" means a fee or other form of compensation, payment of which is
             98      dependent on or conditioned by:
             99          (a) the reporting of a predetermined analysis, opinion, or conclusion by the person
             100      performing the analysis, opinion, or conclusion; or
             101          (b) achieving a result specified by the person requesting the analysis, opinion, or
             102      conclusion.
             103          (8) "Division" means the Division of Real Estate of the Department of Commerce.
             104          (9) "Federally related transaction" means any real estate related transaction which is
             105      required by federal law or by federal regulation to be supported by an appraisal prepared by a state
             106      certified appraiser.
             107          (10) "Real estate" means an identified parcel or tract of land including improvements if
             108      any.
             109          (11) "Real estate appraisal activity" means the act or process of making an appraisal of real
             110      estate or real property and preparing an appraisal report.
             111          (12) "Real estate related transaction" means:
             112          (a) the sale, lease, purchase, investment in, or exchange of real property or an interest in
             113      real property, or the financing of such a transaction;
             114          (b) the refinancing of real property or an interest in real property; or
             115          (c) the use of real property or an interest in real property as security for a loan or
             116      investment, including mortgage-backed securities.
             117          (13) "Real property" means one or more defined interests, benefits, or rights inherent in
             118      the ownership of real estate.
             119          (14) "Senior appraiser" means a person grandfathered under this chapter who holds a
             120      current, valid state registration as a real estate appraiser whose registration was issued to the person


             121      based on the person's experience or designation as a member in good standing in an appraisal
             122      organization that is a member of the Appraisal Foundation.
             123          (15) "State-certified general appraiser" means a person who holds a current, valid
             124      certification as a state-certified general appraiser issued [to him] under the provisions of this
             125      chapter. [The state-certified general appraiser classification consists of those persons who meet
             126      the requirements for certification relating to the appraisal of all types of real estate.]
             127          (16) "State-certified residential appraiser" means a person who holds a current, valid
             128      certification as a state-certified residential real estate appraiser issued [to him] under the provisions
             129      of this chapter. [The state-certified residential appraiser classification consists of those persons
             130      who meet the requirements for certification that relate to the appraisal of residential real estate in
             131      federally related transactions.]
             132          (17) "State-licensed appraiser" means a person who holds a current, valid license as a
             133      state-licensed appraiser issued under the provisions of this chapter.
             134          [(17)] (18) "State-registered appraiser" means a person who holds a current, valid state
             135      registration as a real estate appraiser issued [to him] under the provisions of this chapter. [The
             136      state-registered appraiser classification consists of those persons who meet the requirements for
             137      registration that relate to the appraisal of all types of real estate in transactions that are not federally
             138      related transactions.]
             139          [(18)] (19) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             140      conclusion relating to the nature, quality, value, or utility or identified real estate or identified real
             141      property that is prepared by a person who is employed or retained to act, or would be perceived
             142      by third parties or the public as acting, as a disinterested third party in rendering the analysis,
             143      opinion, or conclusion.
             144          Section 3. Section 61-2b-3 is amended to read:
             145           61-2b-3. License or certification required.
             146          (1) [It] Except as provided in Subsection (2), it is unlawful for anyone to prepare, for
             147      valuable consideration, an appraisal, an appraisal report, a certified appraisal report, or perform
             148      a consultation service relating to real estate or real property in this state without first being
             149      registered, licensed, or certified in accordance with the provisions of this chapter.
             150          (2) This section does not apply to:
             151          (a) a real estate broker or sales agent as defined by Section 61-2-2 licensed by this state


             152      who, in the ordinary course of his business, gives an opinion:
             153          (i) regarding the value of real estate;
             154          (ii) to a potential seller or third party recommending a listing price of real estate; or
             155          (iii) to a potential buyer or third party recommending a purchase price of real estate;
             156          (b) an employee of a company who states an opinion of value or prepares a report
             157      containing value conclusions relating to real estate or real property solely for the company's use;
             158          (c) any official or employee of a government agency while acting solely within the scope
             159      of his duties, unless otherwise required by Utah law;
             160          (d) an auditor or accountant who states an opinion of value or prepares a report containing
             161      value conclusions relating to real estate or real property while performing an audit;
             162          (e) an individual, except an individual who is required to be registered, licensed, or
             163      certified under this chapter, who states an opinion about the value of property in which he has an
             164      ownership interest;
             165          (f) an individual who states an opinion of value if no consideration is paid or agreed to be
             166      paid for the opinion and no other party is reasonably expected to rely on the individual's appraisal
             167      expertise;
             168          (g) an individual, such as a researcher or a secretary, who does not render significant
             169      professional assistance, as defined by the board, in arriving at a real estate appraisal analysis,
             170      opinion, or conclusion; or
             171          (h) an attorney authorized to practice law in this state who, in the course of his practice,
             172      utilizes an appraisal report governed by this chapter or who states an opinion of the value of real
             173      estate.
             174          (3) No opinion of value or report containing value conclusions exempt under Subsection
             175      (2) may be referred to as an appraisal.
             176          Section 4. Section 61-2b-6 is amended to read:
             177           61-2b-6. Duties and powers of division.
             178          (1) The division shall have the following powers and duties:
             179          (a) The division shall:
             180          (i) receive applications for [registration] licensing as a [state-registered] state-licensed
             181      appraiser;
             182          (ii) establish appropriate administrative procedures for the processing of [such] licensing


             183      applications;
             184          (iii) issue [registrations] licenses to qualified applicants pursuant to the provisions of this
             185      chapter; and
             186          (iv) maintain a registry of the names and addresses of individuals who are currently
             187      [registered] licensed as [state-registered] state-licensed appraisers under this chapter.
             188          (b) The division shall:
             189          (i) receive applications for certification as a state-certified general appraiser[,] or
             190      state-certified residential appraiser[, or senior appraiser] under this chapter;
             191          (ii) establish appropriate administrative procedures for the processing of [such]
             192      certification applications;
             193          (iii) issue certificates to qualified applicants pursuant to the provisions of this chapter; and
             194          (iv) maintain a registry of the names and addresses of individuals who are currently
             195      registered, licensed, or certified [as state-certified general appraisers, state-certified residential
             196      appraisers, or senior appraisers] under this chapter.
             197          (c) The division shall hold public hearings under the direction of the board.
             198          (d) (i) The division shall, at its option, solicit bids and enter into contracts with one or
             199      more educational testing services or organizations for the preparation of a bank of questions and
             200      answers approved by the board for [registration] licensing and certification examinations; and
             201          (ii) administer or contract for the administration of licensing and certification examinations
             202      as may be required to carry out its responsibilities under this chapter.
             203          (e) The division shall provide administrative assistance to the board by providing to the
             204      board the facilities, equipment, supplies, and personnel that are required to enable the board to
             205      carry out its responsibilities under this chapter.
             206          (f) The division shall assist the board in upgrading and improving the quality of the
             207      education and examinations required under this chapter.
             208          (g) The division shall assist the board in improving the quality of the continuing education
             209      available to persons registered, licensed, and certified under this chapter.
             210          (h) The division shall assist the board with respect to the proper interpretation or
             211      explanation of the Uniform Standards of Professional Appraisal Practice as required by Section
             212      61-2b-27 when an interpretation or explanation becomes necessary in the enforcement of this
             213      chapter.


             214          (i) The division shall collect all registration, licensing, and certification fees required or
             215      permitted by this chapter.
             216          (j) The division may:
             217          (i) investigate complaints against persons registered, licensed, or certified under this
             218      chapter;
             219          (ii) subpoena witnesses and the production of books, documents, records, and other papers;
             220          (iii) administer oaths; and
             221          (iv) take testimony and receive evidence concerning all matters within its jurisdiction.
             222          (k) The division may promote research and conduct studies relating to the profession of
             223      real estate appraising and sponsor real estate appraisal educational activities.
             224          (l) The division shall adopt, with the concurrence of the board, rules for the administration
             225      of this chapter pursuant to Title 63, Chapter 46a, Utah Administrative Rulemaking Act, that are
             226      not inconsistent with the provisions of this chapter or the constitution and laws of this state or of
             227      the United States.
             228          (m) The division shall employ an appropriate staff to investigate allegations that persons
             229      registered, licensed, or certified under this chapter failed to comply with the terms and provisions
             230      of this chapter.
             231          (n) The division may employ such other professional, clerical, and technical staff as may
             232      be necessary to properly administer the work of the division under this chapter.
             233          (2) (a) The division shall register expert witnesses who are not otherwise registered,
             234      licensed, or certified under this chapter to appear in all administrative and judicial tax proceedings
             235      to provide evidence related to the valuation of real property that is assessed by the tax commission,
             236      provided that the:
             237          (i) registration is limited to a specific proceeding;
             238          (ii) registration is valid until the proceeding becomes final;
             239          (iii) applicant pays [the standard] a registration fee [charged by] to the division;
             240          (iv) applicant provides the applicant's name, address, occupation, and professional
             241      credentials; and
             242          (v) applicant signs a sworn statement that:
             243          (A) the applicant is competent to render an appraisal and to testify as an expert witness in
             244      the proceeding; and


             245          (B) the appraisal and testimony to be offered shall be in accordance with the Uniform
             246      Standards of Professional Appraisal Practice adopted by the board.
             247          (b) The provisions of [this subsection] Subsection (2)(a) shall be effective for all
             248      administrative and judicial property tax proceedings related to the valuation of real property that
             249      is assessed by the tax commission, including those filed but which are not final as of May 3, 1994.
             250          (3) The division shall be immune from any civil action or criminal prosecution for
             251      initiating or assisting in any lawful investigation of the actions of or participating in any
             252      disciplinary proceeding concerning a person registered, licensed, or certified pursuant to this
             253      chapter if the action is taken without malicious intent and in the reasonable belief that the action
             254      was taken pursuant to the powers and duties vested in the members of the division under this
             255      chapter.
             256          Section 5. Section 61-2b-7 is amended to read:
             257           61-2b-7. Board established -- Composition -- Qualifications -- Terms of office --
             258      Expenses.
             259          (1) (a) There is established a Real Estate Appraiser [Registration] Licensing and
             260      Certification Board which shall consist of seven members[, two of whom shall be public members,
             261      three of whom shall be state-certified appraisers, one of whom shall be a state-registered appraiser,
             262      and] as follows:
             263          (i) one state-licensed appraiser;
             264          (ii) three state-certified appraisers;
             265          (iii) two members of the general public; and
             266          (iv) the Commissioner of the Department of Financial Institutions or his designee.
             267          (b) All members of the board shall be appointed by the governor with the advice and
             268      consent of the Senate.
             269          [(2) The appraisers appointed to the first board shall possess a minimum of five years of
             270      active experience as real estate appraisers or shall be designated members in good standing of a
             271      real estate appraisal organization that is a member of the Appraisal Foundation or an appraisal
             272      organization whose standards and requirements of membership are approved by the Appraisal
             273      Foundation and that as of January 1, 1990, required appraisal experience, appraisal education, and
             274      testing to become a designated member, and adherence to generally accepted standards of
             275      professional appraisal practice in order to retain that designation.]


             276          [(3) The board member who is the state-registered appraiser shall be a state-registered
             277      appraiser at the time of that person's appointment, but shall not be precluded from becoming a
             278      state-certified appraiser during his term.]
             279          [(4) ] (2) (a) Except as required by Subsection (2)(b), as terms of current board members
             280      expire, the governor shall appoint each new member or reappointed member to a four-year term
             281      beginning on July 1.
             282          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the time
             283      of appointment or reappointment, adjust the length of terms to ensure that the terms of board
             284      members are staggered so that approximately half of the board is appointed every two years.
             285          (c) Upon the expiration of his term, a member of the board shall continue to hold office
             286      until the appointment and qualification of his successor.
             287          (d) No person may serve as a member of the board for more than two consecutive terms.
             288          [(5)] (3) (a) When a vacancy occurs in the membership for any reason, the replacement
             289      shall be appointed for the unexpired term.
             290          (b) The governor may remove a board member for cause.
             291          [(6)] (4) The public members of the board may not be [registered] licensed or certified
             292      under this chapter.
             293          [(7)] (5) The board shall meet at least quarterly to conduct its business. Public notice shall
             294      be given for all board meetings.
             295          [(8)] (6) The members of the board shall elect a chair annually from among the members
             296      to preside at board meetings. A quorum of the board shall be four members.
             297          [(9)] (7) (a) (i) Members who are not government employees shall receive no
             298      compensation or benefits for their services, but may receive per diem and expenses incurred in the
             299      performance of the member's official duties at the rates established by the Division of Finance
             300      under Sections 63A-3-106 and 63A-3-107 .
             301          (ii) Members may decline to receive per diem and expenses for their service.
             302          (b) (i) State government officer and employee members who do not receive salary, per
             303      diem, or expenses from their agency for their service may receive per diem and expenses incurred
             304      in the performance of their official duties from the commission at the rates established by the
             305      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             306          (ii) State government officer and employee members may decline to receive per diem and


             307      expenses for their service.
             308          Section 6. Section 61-2b-8 is amended to read:
             309           61-2b-8. Duties of board.
             310          The board shall provide technical assistance to the division relating to real estate appraisal
             311      standards and real estate appraiser qualifications and shall have the following responsibilities,
             312      powers, and duties:
             313          (1) The board shall:
             314          (a) determine the experience, education, and examination requirements appropriate for
             315      persons registered or licensed under this chapter;
             316          (b) determine the experience, education, and examination requirements appropriate for
             317      persons certified under this chapter in compliance with the minimum requirements of Financial
             318      Institutions Reform, Recovery, and Enforcement Act of 1989, [except for the education
             319      requirements of Sections 61-2b-10 and 61-2b-14 ,] and consistent with the intent of this chapter;
             320      and
             321          (c) develop programs to upgrade and improve the experience, education, and examinations
             322      as required under this chapter[; and].
             323          [(d) determine the experience, education, and examinations that should be required and
             324      implemented by the division.]
             325          (2) The experience, education, and examination requirements established by the board for
             326      persons certified under this chapter shall be the minimum criteria established by the Appraiser
             327      Qualification Board of the Appraisal Foundation, [except for the education requirements of
             328      Sections 61-2b-10 and 61-2b-14 ] unless, after notice and a public hearing held in accordance with
             329      the provisions of Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the board has found
             330      that the minimum criteria are not appropriate for state-certified appraisers in this state in which
             331      case the board shall recommend appropriate criteria to the Legislature.
             332          (3) The board shall determine the continuing education requirements appropriate for the
             333      renewal of licenses and certifications issued under this chapter, develop programs to upgrade and
             334      improve continuing education, and recommend to the division available continuing education
             335      courses that meet the requirements of this chapter.
             336          (4) The board shall consider the proper interpretation or explanation of the Uniform
             337      Standards of Professional Appraisal Practice as required by Section 61-2b-27 when an


             338      interpretation or explanation becomes necessary in the enforcement of this chapter, and when the
             339      Appraisal Standards Board of the Appraisal Foundation has not as yet issued an interpretation or
             340      explanation, and shall recommend to the division the appropriate interpretation or explanation that
             341      the division should adopt as a rule under this chapter.
             342          (5) The board shall develop and establish or approve the examination specifications and
             343      the minimum score required to pass the examinations for licensure and certification.
             344          (6) The board shall review the:
             345          (a) bank of questions and answers that comprise the examination for persons licensed and
             346      certified under this chapter;
             347          (b) procedure that is established for selecting individual questions from the bank of
             348      questions for use in each scheduled examination; and
             349          (c) questions in the bank of questions and the related answers to determine whether they
             350      meet the examination specifications established by the board.
             351          (7) (a) The board shall conduct administrative hearings, not delegated by the board to an
             352      administrative law judge, in connection with all disciplinary proceedings under Sections 61-2b-30
             353      and 61-2b-31 concerning persons registered, licensed, or certified under this chapter and their
             354      failure to comply with the provisions of this chapter and the Uniform Standards of Professional
             355      Appraisal Practice as adopted under Section 61-2b-27 .
             356          (b) The board shall issue in each administrative hearing a decision that contains findings
             357      of fact and conclusions of law.
             358          (c) When a determination is made that a person registered, licensed, or certified under this
             359      chapter has violated any provision of this chapter, the division shall implement disciplinary action
             360      determined by the board.
             361          (8) The members of the board shall be immune from any civil action or criminal
             362      prosecution for any disciplinary proceeding concerning a person registered, licensed, or certified
             363      under this chapter if the action is taken without malicious intent and in the reasonable belief that
             364      the action taken was taken pursuant to the powers and duties vested in the members of the board
             365      under this chapter.
             366          (9) The board shall require and pass upon proof necessary to determine the honesty,
             367      competency, integrity, and truthfulness of each applicant for original or renewal registration,
             368      licensure, or certification.


             369          Section 7. Section 61-2b-9 is amended to read:
             370           61-2b-9. Licensure or certification required -- Application.
             371          Any individual who prepares or causes to be prepared an appraisal, an appraisal report, or
             372      a certified appraisal report in this state, in order to lawfully engage in such activity in this state,
             373      shall:
             374          (1) make application in writing for registration, licensure, or certification as provided in
             375      this chapter in the form as the division may prescribe; and
             376          (2) become registered, licensed, or certified under this chapter.
             377          Section 8. Section 61-2b-10 is amended to read:
             378           61-2b-10. State-licensed appraiser -- Authority and qualifications.
             379          (1) A [state-registered] state-licensed appraiser is authorized to appraise all types of real
             380      property in this state if the appraisal:
             381          (a) is not performed in conjunction with a federally related transaction; or
             382          (b) does not exceed the [dollar amount] transaction value permitted under the Financial
             383      Institutions Reform, Recovery, and Enforcement Act of 1989, and related federal regulations.
             384          (2) A [state-registered] state-licensed appraiser may not issue a certified appraisal report.
             385          (3) To qualify as a [state-registered] state-licensed appraiser, an applicant must:
             386          (a) be of good moral character; [and]
             387          (b) pass the licensing examination with a satisfactory score as determined by the board;
             388          [(b)] (c) successfully complete not less than [75] 90 classroom hours in courses of study
             389      approved by the board that relate to:
             390          (i) real estate appraisal;
             391          (ii) the Uniform Standards of Professional Appraisal Practice; and
             392          (iii) ethical rules to be observed by a real estate appraiser as required by Section
             393      61-2b-27 [.]; and
             394          (d) possess the minimum number of hours of experience in real property appraisal as
             395      established by rule.
             396          (4) The courses of study under Subsection (3)(b) shall be conducted by:
             397          (a) an accredited university, college, or junior college;
             398          (b) an approved appraisal society, institute, or association; or
             399          (c) such other school as the board may approve.


             400          (5) The board shall require and pass upon proof necessary to determine the honesty,
             401      competency, integrity, and truthfulness of each applicant.
             402          Section 9. Section 61-2b-10.5 is enacted to read:
             403          61-2b-10.5. State-registered appraisers -- Authority -- Transition to state-licensed
             404      or state-certified appraisers.
             405          (1) Any person who was registered as a state-registered appraiser under this chapter prior
             406      to May 3, 1999, shall have the same authority as a state-licensed appraiser under this chapter for
             407      as long as the registration of that person remains current but in no event after May 3, 2001.
             408          (2) No new registrations shall be issued by the division except as provided in Subsection
             409      61-2b-6 (2).
             410          (3) The division may renew registrations of persons who were previously registered as
             411      state-registered appraisers under this chapter until May 3, 2001. All registrations renewed under
             412      this Subsection (3) shall expire on May 3, 2001.
             413          (4) Any person who was registered as a state-registered appraiser under this chapter prior
             414      to May 3, 1999, may have that registration converted to a license or certification if that person
             415      meets the requirements for licensure or certification under this chapter.
             416          Section 10. Section 61-2b-11 is amended to read:
             417           61-2b-11. Curriculum to be determined by board.
             418          In making its determinations with respect to the courses of study required by Section
             419      61-2b-10 , the board shall give weight to courses which teach one or more of the following:
             420          (1) knowledge of technical terms commonly used in or related to real estate appraising,
             421      appraisal report writing, and economic concepts applicable to real estate;
             422          (2) an understanding of the basic principles of land economics, the basic principles of the
             423      real estate appraisal process, and the problems likely to be encountered in gathering, interpreting,
             424      and processing the data required in the real estate appraisal process;
             425          (3) an understanding of the standards for the development and communication of real
             426      estate appraisals as provided in this chapter;
             427          (4) an understanding of the ethical rules that a real estate appraiser is required to observe;
             428          (5) knowledge of theories of depreciation, cost estimating, methods of capitalization, and
             429      the mathematics of real estate appraisal;
             430          (6) an understanding of basic real estate law; and


             431          (7) an understanding of the types of misconduct for which disciplinary proceedings may
             432      be initiated against a person [registered] licensed under this chapter.
             433          Section 11. Section 61-2b-13 is amended to read:
             434           61-2b-13. State-certified appraisers -- Authority.
             435          [(1) A senior appraiser is authorized to appraise all types of real property in this state if the
             436      appraisal either:]
             437          [(a) is not performed in conjunction with a federally related transaction;]
             438          [(b) does not exceed the dollar amount permitted under the Financial Institutions Reform,
             439      Recovery, and Enforcement Act of 1989, and related federal regulations; or]
             440          [(c) is one which may be performed by a state registered appraiser under this chapter.]
             441          [(2)] (1) A state-certified residential appraiser is authorized to appraise all types of real
             442      estate which a[ state-registered] state-licensed appraiser is authorized to appraise. In addition, a
             443      state-certified residential appraiser is authorized to appraise 1-4 unit residential real estate in
             444      federally related transactions so long as net income capitalization analysis is not required by the
             445      terms of the assignment. A state-certified residential appraiser is also authorized to appraise
             446      building lots, vacant land, and subdivisions in federally related transactions so long as discounted
             447      cash flow analysis is not required by the terms of the assignment.
             448          [(3)] (2) A state-certified general appraiser is authorized to appraise all types of [residential
             449      and nonresidential] real estate and real property.
             450          Section 12. Section 61-2b-14 is amended to read:
             451           61-2b-14. State-certified residential appraiser -- Application.
             452          (1) Each applicant for certification as a residential appraiser shall provide to the division
             453      evidence [of]:
             454          (a) of completion of the certification examination with a satisfactory score as determined
             455      by the board; [and]
             456          (b) of satisfactory completion of not less than 120 classroom hours of education or their
             457      equivalent as required under this chapter[.];
             458          [(2) (a) For applicants applying for certification on or before December 31, 1997, as a
             459      prerequisite to taking the examination for state-certified residential appraiser, an applicant shall
             460      present evidence satisfactory to the division that the applicant possesses the equivalent of two years
             461      of full-time experience in real property appraisal, as defined by the board.]


             462          [(b) For applicants applying for certification on or after January 1, 1998, the applicant shall
             463      provide to the division evidence that:]
             464          [(i)] (c) that the applicant possesses [2,500 or more] the minimum number of hours of
             465      experience in real property appraisal[, or its equivalent as defined by the board] as established by
             466      rule; and
             467          [(ii)] (d) that the experience required under Subsection [(2)(b)] (1)(a), or the equivalent,
             468      was acquired within a reasonable period, as determined by the board, immediately preceding the
             469      filing of the application for certification.
             470          [(3)] (2) Upon request by the division, the applicant shall also make available to the
             471      division for examination, a detailed listing of the real estate appraisal reports, or file memoranda
             472      for each year for which experience is claimed and a sample of appraisal reports which the applicant
             473      has prepared in the course of his appraisal practice.
             474          [(4)] (3) (a) To meet the 120 classroom hours required by Subsection (1)(b), an applicant
             475      must successfully complete courses of study approved by the board which relate to real estate
             476      appraisal theory and practice, including a course of study approved by the board which relates
             477      specifically to the Uniform Standards of Professional Appraisal Practice adopted under Section
             478      61-2b-27 , to the ethical rules to be observed by a real estate appraiser, and to the provisions of this
             479      chapter.
             480          (b) The courses of study referred to in [this section] Subsection (3)(a) must be conducted
             481      by:
             482          (i) an accredited university, college, or junior college;
             483          (ii) an approved appraisal society, institute, or association; or
             484          (iii) such other school as may be approved by the board.
             485          Section 13. Section 61-2b-15 is amended to read:
             486           61-2b-15. State-certified general appraiser -- Application -- Qualifications.
             487          (1) Each applicant for certification as a general appraiser shall provide to the division
             488      evidence [of]:
             489          (a) of completion of the certification examination with a satisfactory score as determined
             490      by the board; [and]
             491          (b) of satisfactory completion of [the education required under this chapter.] not less than
             492      180 classroom hours of education or their equivalent as required under this chapter;


             493          [(2) (a) For applicants applying for certification on or before December 31, 1997, as a
             494      prerequisite to taking the examination for state-certified general appraiser, an applicant shall
             495      present evidence satisfactory to the division that the applicant possesses the equivalent of two years
             496      of full-time experience in real property appraisals, as defined by the board.]
             497          [(b) For applicants applying for certification on or after January 1, 1998, the applicant shall
             498      provide to the division evidence that:]
             499          [(i)] (c) that the applicant possesses [3,000] the minimum number of hours of experience
             500      in real property appraisal[, or its equivalent as defined by the board] as established by rule; and
             501          [(ii)] (d) that the experience required under Subsection [(2)(b)] (1)(c), or the equivalent,
             502      was acquired within a reasonable period, as determined by the board, immediately preceding the
             503      filing of the application for certification.
             504          [(3) (a) (i) An applicant for state-certified general appraiser who submits an application
             505      on or before December 31, 1997, shall provide to the division evidence of satisfactory completion
             506      of not less than 165 classroom hours approved by the board or their equivalent as determined by
             507      the board.]
             508          [(ii) An applicant applying for state-certified general appraiser who submits an application
             509      on or after January 1, 1998, shall provide to the division evidence of satisfactory completion of not
             510      less than 180 classroom hours approved by the board, or their equivalent as determined by the
             511      board.]
             512          [(b) The classroom hours described in Subsections (3)(a)(i) and (ii) shall include a course
             513      of study that relates]
             514          (2) To meet the 180 classroom hours required by Subsection(1)(b), an applicant must
             515      successfully complete courses of study approved by the board which relate to real estate appraisal
             516      theory and practice, including a course of study approved by the board which relates specifically
             517      to the Uniform Standards of Professional Appraisal Practice adopted under Section 61-2b-27 , to
             518      the ethical rules to be observed by a real estate appraiser, and to the provisions of this chapter.
             519          Section 14. Section 61-2b-15.6 is enacted to read:
             520          61-2b-15.6. Conversion of senior appraisers to state-licensed appraisers.
             521          (1) Any person who was registered under this chapter as a senior appraiser prior to May
             522      3, 1999, shall automatically have his registration converted to a license as a state-licensed
             523      appraiser.


             524          (2) The division shall issue licenses to all persons qualified under Subsection (1).
             525          (3) The division may not issue any new registrations as senior appraisers.
             526          Section 15. Section 61-2b-16 is amended to read:
             527           61-2b-16. Certification and licensing examinations.
             528          (1) [Except as provided in Section 61-2b-15.5 , an] An original certification or license may
             529      only be issued to a person who is of good moral character and has demonstrated through a written
             530      examination process that he possesses:
             531          (a) knowledge of technical terms commonly used in or related to real estate appraising,
             532      appraisal report writing, and economic concepts applicable to real estate;
             533          (b) an understanding of the basic principles of land economics, the basic principles of the
             534      real estate appraisal process, and the problems likely to be encountered in gathering, interpreting,
             535      and processing the data that is required in the real estate appraisal process;
             536          (c) an understanding of the standards for the development and communication of real
             537      estate appraisals as provided in this chapter;
             538          (d) an understanding of the ethical rules that a real estate appraiser is required to observe;
             539          (e) knowledge of theories of depreciation, cost estimating, methods of capitalization, and
             540      the mathematics of real estate appraisal that are appropriate for the classification of certification
             541      or licensure for which the applicant has applied;
             542          (f) knowledge of other principles and procedures appropriate for the classification of
             543      certification or licensure for which the applicant has applied;
             544          (g) an understanding of basic real estate law; and
             545          (h) an understanding of the types of misconduct for which disciplinary proceedings may
             546      be initiated against a person certified or licensed under this chapter.
             547          (2) The board shall require and pass upon proof necessary to determine the honesty,
             548      competency, integrity, and truthfulness of each applicant.
             549          Section 16. Section 61-2b-17 is amended to read:
             550           61-2b-17. State-certified and state-licensed appraisers -- Restrictions on use of terms
             551      -- Conduct prohibited.
             552          (1) (a) The terms "state-certified general appraiser," "state-certified residential appraiser,"
             553      "state-licensed appraiser," "state-registered appraiser," and "senior appraiser" may only be used to
             554      refer to an individual who is certified, licensed, or registered under this chapter and may not be


             555      used following, or immediately in connection with, the name or signature of a firm, partnership,
             556      corporation, or group, or in any manner that it might be interpreted as referring to a firm,
             557      partnership, corporation, group, or to anyone other than the individual who is certified, registered,
             558      or licensed under this chapter.
             559          (b) This requirement shall not be construed to prevent a state-certified general appraiser
             560      from signing an appraisal report on behalf of a corporation, partnership, firm, or group practice if
             561      it is clear that only the individual is certified and that the corporation, partnership, firm, or group
             562      practice is not.
             563          (c) Except as provided in Section 61-2b-25 , no certificate, registration, or license may be
             564      issued under the provisions of this chapter to a corporation, partnership, firm, or group.
             565          (2) (a) No person other than a state-certified general appraiser[,] or state-certified
             566      residential appraiser, [or senior appraiser as defined in this chapter] may assume or use [that title
             567      or] any title, designation, or abbreviation likely to create the impression of certification in this state
             568      as a [state-certified] real estate appraiser.
             569          (b) No person other than a state-licensed appraiser may assume or use any title,
             570      designation, or abbreviation likely to create the impression of licensure in this state as a real estate
             571      appraiser.
             572          (3) (a) Only an individual who has qualified under the certification requirements of
             573      Sections 61-2b-14 and 61-2b-15 is authorized to prepare and sign a certified appraisal report
             574      relating to real estate or real property in this state.
             575          (b) If a certified appraisal report is prepared and signed by a state-certified residential
             576      appraiser, the certified appraisal report shall state, immediately following the signature on the
             577      report, "State-Certified Residential Appraiser."
             578          (c) If a certified appraisal report is prepared and signed by a state-certified general
             579      appraiser, the certified appraisal report shall state, immediately following the signature on the
             580      report, "State-Certified General Appraiser."
             581          (d) An appraisal report prepared by a [senior] state-licensed appraiser shall state,
             582      immediately following the signature on the report, ["Senior] "State-licensed Appraiser," along with
             583      [the explanation of limitations regarding] a disclosure that the appraisal may not qualify for
             584      federally related transactions [required under Subsection 61-2b-15.5 (3)(b)].
             585          (e) When signing a certified appraisal report, a state-certified appraiser shall also place on


             586      the report, immediately below his signature, a seal on the report showing his certificate number
             587      and its expiration date.
             588          (f) A state-certified residential appraiser may not prepare a certified appraisal report
             589      outside his area of expertise as defined in Section 61-2b-13 . However, a state-certified residential
             590      appraiser may prepare an appraisal report for any type property for which a [state-registered]
             591      state-licensed appraiser is authorized to appraise under Section 61-2b-10 .
             592          (g) [A person registered under Section 61-2b-10 or certified under Section 61-2b-15.5 ] A
             593      state-licensed appraiser or state-registered appraiser who assisted in the preparation of a certified
             594      appraisal report is authorized to cosign the certified appraisal report.
             595          (4) A person who has not qualified under either Section 61-2b-14 or 61-2b-15 may not
             596      describe or refer to any appraisal or appraisal report relating to real estate or real property in this
             597      state by the terms "certified appraisal" or "certified appraisal report."
             598          Section 17. Section 61-2b-18 is amended to read:
             599           61-2b-18. Application for certification, registration, or licensure.
             600          (1) Applications for original certification, registration as an expert witness, or licensure
             601      and renewal of certification, registration, or licensure shall be made in writing to the division on
             602      forms approved by the division.
             603          (2) The payment of the appropriate fee, as fixed by the division with the concurrence of
             604      the board in accordance with Section 63-38-3.2 , must accompany all applications for original
             605      certification, registration as an expert witness, or licensure and renewal of certification,
             606      registration, or licensure.
             607          (3) (a) At the time of filing an application for original certification, registration as an
             608      expert witness, or licensure or for renewal of certification, registration, or licensure, each applicant
             609      shall sign a pledge to comply with the Uniform Standards of Professional Appraisal Practice and
             610      the ethical rules to be observed by an appraiser that are established under Section 61-2b-27 for
             611      [state-certified general appraisers and state-certified residential] certified, registered, or licensed
             612      appraisers under this chapter.
             613          (b) Each applicant shall also certify that he understands the types of misconduct, as set
             614      forth in this chapter, for which disciplinary proceedings may be initiated against persons certified,
             615      registered, or licensed under this chapter.
             616          Section 18. Section 61-2b-19 is amended to read:


             617           61-2b-19. Expiration of registration, license, or certification.
             618          (1) The initial registration, license, or certification issued under this chapter expires on the
             619      expiration date indicated on the registration, license, or certificate.
             620          (2) A renewal registration, license, or certification issued under this chapter expires two
             621      years from the date of issuance except as provided in Section 61-2b-10.5 .
             622          (3) The scheduled expiration date of the registration, license, or certification shall appear
             623      on the registration, license, or certification document and no other notice of its expiration need be
             624      given to its holder.
             625          Section 19. Section 61-2b-20 is amended to read:
             626           61-2b-20. Renewal of registration, license, or certification.
             627          (1) To obtain a renewal of a registration, license, or certification under this chapter, the
             628      holder of a current, valid registration, license, or certification shall, in compliance with procedures
             629      established by the division and the board, make application and pay the prescribed fee to the
             630      division prior to the expiration date of the registration, license, or certification then held.
             631          (2) The application for renewal of a registration, license, or certification shall be
             632      accompanied by evidence in the form prescribed by the division of having completed the
             633      continuing education requirements for renewal specified in this chapter.
             634          (3) A registration, license, or certification expires if it is not renewed on or before its
             635      expiration date.
             636          (a) For a period of 30 days after the expiration date, a registration, license, or certification
             637      may be reinstated upon payment of a renewal fee and a late fee determined by the division and the
             638      board in addition to satisfying the continuing education requirements specified in Section 61-2b-40
             639      [for certified appraisers].
             640          (b) After the 30-day period, and until six months after the expiration date, the registration,
             641      license, or certification may be reinstated by paying a renewal fee and a reinstatement fee
             642      determined by the division and the board in addition to satisfying the continuing education
             643      requirements specified in Section 61-2b-40 [for certified appraisers].
             644          (4) A person who does not renew his registration, license, or certification within six
             645      months after the expiration date shall be [reregistered] relicensed or recertified as prescribed for
             646      an original application.
             647          Section 20. Section 61-2b-21 is amended to read:


             648           61-2b-21. Denial of licensure or certification.
             649          The division may, upon compliance with the provisions of Title 63, Chapter 46b, [the]
             650      Administrative Procedures Act, deny the issuance of a registration, license, or certification to an
             651      applicant on any of the grounds enumerated in this chapter.
             652          Section 21. Section 61-2b-22 is amended to read:
             653           61-2b-22. Licensing or certification requirements for nonresidents -- Temporary
             654      permits -- Revocation.
             655          (1) Each applicant for registration, licensure, or [for] certification under this chapter who
             656      is not a resident of this state shall submit with his application an irrevocable consent that service
             657      of process upon him may be made by delivery of the process to the director of the division if, in
             658      an action against the applicant in a court of this state arising out of the applicant's activities as a
             659      real estate appraiser in this state, the plaintiff cannot, in the exercise of due diligence, obtain
             660      personal service upon the applicant.
             661          (2) A nonresident of this state who has complied with the provisions of Subsection (1) may
             662      obtain a registration, license, or certification in this state by complying with all of the provisions
             663      of this chapter relating to registration, licensure, or certification.
             664          (3) A nonresident of this state who has complied with the provisions of Subsection (1) may
             665      obtain a temporary [registration] license or certification to perform a contract relating to the
             666      appraisal of real estate or real property in this state. To qualify for the issuance of a temporary
             667      [registration] license or certification, an applicant must:
             668          (a) submit an application on a form approved by the division;
             669          (b) submit evidence that he is [registered] licensed or certified in the state in which he
             670      primarily conducts business;
             671          (c) certify that no formal charges alleging violation of state appraisal [registration]
             672      licensing or certification laws have been filed against the applicant by the applicant's state of
             673      domicile; and
             674          (d) pay an application fee in an amount established by the division with the concurrence
             675      of the board.
             676          (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             677      division, with the concurrence of the board, shall make rules establishing the duration of a
             678      temporary permit and procedures for renewal of a temporary permit.


             679          (5) A temporary permit issued under this section shall be immediately and automatically
             680      revoked if the appraiser's license or certification is suspended or revoked in the appraiser's state
             681      of domicile.
             682          (6) Any person whose license or certification has been revoked under Subsection (5) is
             683      entitled to a postrevocation hearing to challenge the revocation. The hearing shall be conducted
             684      in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
             685          Section 22. Section 61-2b-23 is amended to read:
             686           61-2b-23. Reciprocal licensure.
             687          An applicant for [registration] licensure or certification in this state who is [registered]
             688      licensed or certified under the [law] laws of any other state, territory, or district may obtain a
             689      [registration] license or certification in this state upon the terms and conditions determined by the
             690      division and the board, if, in the determination of the division and the board:
             691          (1) the state, territory, or the District of Columbia is considered to have substantially
             692      equivalent [licensure] licensing laws for real estate appraisers;
             693          (2) the laws of that state, territory, or the District of Columbia accord substantially equal
             694      reciprocal rights to a person [registered] licensed or certified and in good standing in this state; and
             695          (3) no formal charges alleging violation of state appraisal [registration] licensing or
             696      certification laws have been filed against the applicant by the applicant's state of domicile.
             697          Section 23. Section 61-2b-24 is amended to read:
             698           61-2b-24. Licensing or certification documents -- Assigned number to be used on
             699      contracts -- Surrender of documents upon suspension -- Inspection of documents.
             700          (1) The division shall issue to each person registered, licensed, or certified under this
             701      chapter a document stating that the person has been registered, licensed, or certified under this
             702      chapter and specifying the expiration date of the registration, license, or certification.
             703          (2) (a) A registration, license, or certification document issued under this chapter shall bear
             704      a registration, license, or certification number assigned by the division.
             705          (b) The [certificate] assigned number shall be used in all statements of qualification,
             706      contracts, or other instruments used by the registration, license, or certificate holder when reference
             707      is made to his status as [a] being registered, licensed, or certified under this chapter.
             708          (3) Registration, licensing, and certification documents remain the property of the state.
             709      Upon any suspension or revocation of a registration, license, or certification under this chapter, the


             710      individual holding the respective documents shall immediately return the document to the division,
             711      together with any stamps or seals used for certified appraisal reports.
             712          (4) The division shall maintain and keep open for public inspection during office hours
             713      a complete and properly indexed record of all registration, licensing, and certification documents
             714      issued, registrations, licenses, and certifications renewed, and registrations, licenses, and
             715      certifications revoked, cancelled, or suspended under the provisions of this chapter. A copy of any
             716      such record shall be made available to the public, upon application to the division, at a price per
             717      copy as fixed by the division.
             718          Section 24. Section 61-2b-25 is amended to read:
             719           61-2b-25. Other law unaffected.
             720          Nothing contained in this chapter shall be considered to prohibit any person registered,
             721      licensed, or certified under this chapter from engaging in the practice of real estate appraising as
             722      a professional corporation or a limited liability company in accordance with the provisions of Title
             723      16, Chapter 11, [the] Professional Corporation Act or Title 48, Chapter 2b, Utah Limited Liability
             724      Company Act.
             725          Section 25. Section 61-2b-26 is amended to read:
             726           61-2b-26. Principal place of business -- Display of documents.
             727          (1) Each person registered, licensed, or certified under this chapter shall designate and
             728      maintain a principal place of business and shall conspicuously display his registration, license, or
             729      certification.
             730          (2) Upon any change of his principal business location or home address, a person
             731      registered, licensed, or certified under this chapter shall promptly give notice in writing to the
             732      division within ten business days of the change.
             733          (3) A nonresident registrant, licensee, or certificate holder [may] is not [be] required to
             734      maintain a place of business in this state if he maintains an active place of business in his state of
             735      domicile.
             736          Section 26. Section 61-2b-27 is amended to read:
             737           61-2b-27. Professional conduct -- Uniform standards.
             738          (1) (a) Each person registered, licensed, or certified under this chapter must comply with
             739      generally accepted standards of professional appraisal practice and generally accepted ethical rules
             740      to be observed by a real estate appraiser.


             741          (b) Generally accepted standards of professional appraisal practice are currently evidenced
             742      by the Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal
             743      Foundation.
             744          (c) After a public hearing held in accordance with provisions of Title 63, Chapter 46a,
             745      [the] Utah Administrative Rulemaking Act, the board shall adopt and may make modifications of
             746      or additions to the Uniform Standards of Professional Appraisal Practice as the board considers
             747      appropriate to comply with the Financial Institutions Reform, Recovery, and Enforcement Act of
             748      1989.
             749          (2) If the Appraisal Standards Board of the Appraisal Foundation modifies the Uniform
             750      Standards of Professional Appraisal Practice, issues supplemental appraisal standards which it
             751      considers appropriate for residential real estate appraisers or for general real estate appraisers, or
             752      issues ethical rules to be observed by a real estate appraiser and requests the board to consider the
             753      adoption of the modified or supplemental standards or ethical rules, the board shall schedule a
             754      public hearing pursuant to the provisions of Title 63, Chapter 46a, [the] Utah Administrative
             755      Rulemaking Act, for the purpose of deciding whether or not it should require the modified or
             756      supplemental standards or the ethical rules to be observed by persons registered, licensed, or
             757      certified under this chapter.
             758          (3) If, after the notice and public hearing the board finds that the modified or supplemental
             759      standards or the ethical rules issued by the Appraisal Standards Board of the Appraisal Foundation
             760      are appropriate for persons registered, licensed, or certified under this chapter, the board shall
             761      recommend rules requiring all persons registered, licensed, or certified under this chapter to
             762      observe the modified or supplemental standards or the ethical rules.
             763          (4) A copy of each such rule adopted by the division shall be mailed to the business
             764      address of each person currently registered, licensed, or certified under this chapter.
             765          Section 27. Section 61-2b-28 is amended to read:
             766           61-2b-28. Enforcement -- Investigation -- Orders -- Hearings.
             767          (1) The division may investigate the actions of any person registered, licensed, or certified
             768      under this chapter, or an applicant for registration, licensure, certification, or renewal, and may
             769      initiate an agency action in accordance with Title 63, Chapter 46b, Administrative Procedures Act,
             770      to impose disciplinary action on a person registered, licensed, or certified under this chapter or to
             771      deny issuance to an applicant of an original or renewal registration, license, or certification.


             772          (2) The division may subpoena witnesses, take evidence, and require by subpoena duces
             773      tecum the production of books, papers, contracts, records, other documents, or information
             774      relevant to the investigation. The division may serve subpoenas by certified mail. Each failure
             775      to respond to a subpoena by a person registered, licensed, or certified under this chapter is
             776      considered to be a separate violation of this chapter.
             777          (3) (a) If the director has reason to believe that any person has been or is engaging in acts
             778      constituting violations of this chapter, and if it appears to the director that it would be in the public
             779      interest to stop these acts, he shall issue and serve upon the person an order directing that person
             780      to cease and desist from those acts.
             781          (b) Within ten days after receiving the order, the person upon whom the order is served
             782      may request an adjudicative proceeding.
             783          (c) Pending the hearing, the cease and desist order shall remain in effect.
             784          (d) If a request for hearing is made, the division shall follow the procedures and
             785      requirements of Title 63, Chapter 46b, Administrative Procedures Act.
             786          (4) (a) After the hearing, if the board agrees that the acts of the person violate this chapter,
             787      the board shall issue an order making the cease and desist order permanent.
             788          (b) If no hearing is requested and if the person fails to cease the acts, or after discontinuing
             789      the acts, again commences the acts, the [executive] director shall commence an action in the name
             790      of the Department of Commerce and Division of Real Estate, in the district court in the county in
             791      which the acts occurred or where the person resides or carries on business, to enjoin and restrain
             792      the person from violating this chapter.
             793          (5) The remedies and action provided in this section do not limit, interfere with, or prevent
             794      the prosecution of any other remedies or actions including criminal proceedings.
             795          Section 28. Section 61-2b-29 is amended to read:
             796           61-2b-29. Disciplinary action -- Grounds.
             797          The board may order disciplinary action against any person registered, licensed, or certified
             798      under this chapter. Board action may include revoking, suspending, or placing a person's
             799      registration, license, or certification on probation, denying a person's original or renewal
             800      registration, license, or certification, ordering remedial education, and imposing a civil penalty
             801      upon a person not to exceed $1,000 per violation based on any of the following grounds for
             802      disciplinary action:


             803          (1) procuring or attempting to procure a registration, license, or certification under this
             804      chapter by fraud or by making a false statement, submitting false information, or making a material
             805      misrepresentation in an application filed with the division;
             806          (2) paying money or attempting to pay money other than the fees provided for by this
             807      chapter to any member or employee of the division to procure a registration, license, or
             808      certification under this chapter;
             809          (3) an act or omission in the practice of real estate appraising which constitutes dishonesty,
             810      fraud, or misrepresentation;
             811          (4) entry of a judgment against a registrant, licensee, or certificate holder on grounds of
             812      fraud, misrepresentation, or deceit in the making of an appraisal of real estate;
             813          (5) a guilty plea to a criminal offense involving moral turpitude which is held in abeyance,
             814      or a conviction, including a conviction based upon a plea of guilty or nolo contendere, of a
             815      criminal offense involving moral turpitude;
             816          (6) engaging in the business of real estate appraising under an assumed or fictitious name
             817      not properly registered in this state;
             818          (7) paying a finder's fee or a referral fee to a person not registered, licensed, or certified
             819      under this chapter in connection with an appraisal of real estate or real property in this state;
             820          (8) making a false or misleading statement in that portion of a written appraisal report that
             821      deals with professional qualifications or in any testimony concerning professional qualifications;
             822          (9) violating or disregarding any provision of this chapter, an order of the board, or any rule
             823      issued under this chapter;
             824          (10) violation of the confidential nature of governmental records to which a person
             825      registered, licensed, or certified under this chapter gained access through employment or
             826      engagement as an appraiser by a governmental agency;
             827          (11) acceptance of a contingent fee for performing an appraisal as defined in Subsection
             828      61-2b-2 (1) if in fact the fee is or was contingent upon the appraiser reporting a predetermined
             829      analysis, opinion, or conclusion or is or was contingent upon the analysis, opinion, conclusion, or
             830      valuation reached or upon the consequences resulting from the appraisal assignment;
             831          (12) unprofessional conduct as defined by statute or rule; or
             832          (13) any other conduct which constitutes dishonest dealing.
             833          Section 29. Section 61-2b-30.5 is enacted to read:


             834          61-2b-30.5. Reinstatement of license or certification.
             835          (1) An individual who has had an appraiser registration, license, or certification revoked
             836      under this chapter may not apply for renewal of that registration, license, or certification, but may
             837      apply for licensure or certification as prescribed for an original license or certification subject to
             838      the limitations in Subsection (2).
             839          (2) An applicant for licensure, certification, or for registration as an expert witness under
             840      Subsection (1):
             841          (a) may not apply for licensure or certification until at least five years after the date of
             842      revocation of the applicant's original registration, license, or certification; and
             843          (b) is not entitled to credit for experience gained prior to the date of revocation in
             844      determining whether the applicant meets the experience requirement for licensure or certification.
             845          Section 30. Section 61-2b-31 is amended to read:
             846           61-2b-31. Disciplinary hearing process.
             847          (1) Before disciplinary action may be taken by the board against a registrant, licensee, or
             848      certificate holder, the division shall notify the registrant, licensee, or certificate holder and
             849      commence an adjudicative proceeding.
             850          (2) If, after the hearing, the board determines that the registrant, licensee, or certificate
             851      holder has violated this chapter, the board may impose disciplinary action by written order as
             852      provided in Section 61-2b-29 .
             853          (3) The board may conduct hearings with the assistance of an administrative law judge or
             854      may delegate hearings to an administrative law judge. If the hearing is delegated by the board to
             855      an administrative law judge, the judge shall submit written findings of fact, conclusions of law,
             856      and a recommended order to the board for its consideration.
             857          (4) (a) Any applicant, registrant, licensee, certificate holder, or person aggrieved, including
             858      the complainant, may obtain judicial review of any adverse ruling, order, or decision of the board.
             859      Any appeal shall be governed by the Utah Rules of Appellate Procedure.
             860          (b) If the applicant, registrant, licensee, or certificate holder prevails in the appeal and the
             861      court finds that the state action was undertaken without substantial justification, the court may
             862      award reasonable litigation expenses to the applicant, registrant, licensee, or certificate holder as
             863      provided under Title 78, Chapter 27a, Small Business Equal Access to Justice Act.
             864          Section 31. Section 61-2b-32 is amended to read:


             865           61-2b-32. Licensure or certification prerequisite to suit for compensation.
             866          No person engaged in the business of real estate appraising in this state or acting in the
             867      capacity of a real estate appraiser in this state may bring or maintain any action in any court of this
             868      state to collect compensation for the performance of real estate appraisal services for which
             869      registration, licensure, or certification is required by this chapter without alleging and proving that
             870      he was the holder of a valid registration, license, or certification in this state at all times during the
             871      performance of such services.
             872          Section 32. Section 61-2b-33 is amended to read:
             873           61-2b-33. Criminal penalty -- Licensure or certification following conviction.
             874          (1) Any person required by this chapter to be registered, licensed, or certified who engages
             875      in real estate appraisal activity in this state without obtaining a registration, license, or certification
             876      or who violates any provision of this chapter is guilty of a class B misdemeanor punishable by a
             877      $1,000 fine and up to six months in jail and shall be ineligible to apply for a registration, license,
             878      or certificate for a period of one year from the date of his conviction of the offense.
             879          (2) The division, in its discretion, may grant a registration, license, or certification to a
             880      person ineligible pursuant to Subsection (1) within the one-year period upon application and after
             881      an administrative hearing.
             882          Section 33. Section 61-2b-34 is amended to read:
             883           61-2b-34. Recordkeeping requirements.
             884          (1) All persons registered, licensed, or certified under this chapter shall retain for a period
             885      of five years the original or a true copy of:
             886          (a) each written contract engaging his services for real estate or real property appraisal
             887      work;
             888          (b) each appraisal report prepared or signed by him; and
             889          (c) all supporting data assembled and formulated by the appraiser in preparing each
             890      appraisal report.
             891          (2) The five-year period for retention of records is applicable to each engagement of the
             892      services of the appraiser and begins upon the date of the delivery of each appraisal report to the
             893      client unless, within the five-year period, the appraiser is notified that the appraisal or the appraisal
             894      report is involved in litigation, in which event the records must be maintained for five years, or two
             895      years following the date of the final disposition of the litigation, whichever is longer.


             896          (3) Upon reasonable notice, all persons registered, licensed, or certified under this chapter
             897      shall make all records required to be maintained under this chapter available to the division for
             898      inspection and copying.
             899          Section 34. Section 61-2b-36 is amended to read:
             900           61-2b-36. Contingent fees.
             901          (1) A person registered, licensed, or certified under this chapter who enters into an
             902      agreement to perform an appraisal as defined in Subsection 61-2b-2 (1) may not accept a contingent
             903      fee.
             904          (2) A person registered, licensed, or certified under this chapter who enters into an
             905      agreement to provide consultation services as defined in Subsection 61-2b-2 (6)(a)(i) may be paid
             906      a fixed fee or a contingent fee.
             907          (3) (a) If a person registered, licensed, or certified under this chapter enters into an
             908      agreement to perform consultation services for a contingent fee, this fact shall be clearly stated in
             909      each oral statement.
             910          (b) In addition to the requirements of Subsection (3)(a), if a person registered, licensed,
             911      or certified under this chapter prepares a written consultation report or summary, letter of
             912      transmittal, or certification statement for a contingent fee, the person shall clearly state in the
             913      report, summary, letter of transmittal, or certification statement that the report is prepared under
             914      a contingent fee arrangement.
             915          Section 35. Section 61-2b-38 is amended to read:
             916           61-2b-38. Division to publish roster of appraisers.
             917          The division shall prepare and issue at least once each calendar year a roster [showing the
             918      name and place of business of each person registered or certified under this chapter] of appraisers
             919      containing the information required by the Federal Financial Institutions Examination Council.
             920      A copy of the roster shall be made available to the public, upon application to the division, at a
             921      reasonable price per copy, as determined by the division. The division shall transmit the roster to
             922      the Federal Financial Institutions Examinations Council at least annually.
             923          Section 36. Section 61-2b-39 is amended to read:
             924           61-2b-39. License history.
             925          The division may, upon payment of a fee in an amount specified in rule, issue a [Certificate
             926      of Standing] verified license history to any person registered, licensed, or certified under this


             927      chapter.
             928          Section 37. Section 61-2b-40 is amended to read:
             929           61-2b-40. Continuing education requirements.
             930          (1) As a prerequisite to renewal of a registration, license, or certification, [a person
             931      certified under this chapter] the applicant for renewal shall present evidence satisfactory to the
             932      division of having met the continuing education requirements of this section. [On or after January
             933      1, 1998, a person registered under this chapter shall also meet the continuing education
             934      requirements of this section.]
             935          [(2) (a) For any person certified under this chapter whose certification expires on or before
             936      December 31, 1997, the continuing education requirement for renewal of certification shall be the
             937      completion by the applicant, during the two-year period immediately preceding the filing of an
             938      application for renewal, of not less than 20 classroom hours of instruction in courses or seminars
             939      that have received the approval of the board.]
             940          [(b)] (2) For any person registered, licensed, or certified under this chapter [whose
             941      registration or certification expires on or after January 1, 1998], the continuing education
             942      requirement for renewal of registration, licensure, or certification shall be the completion by the
             943      applicant, during the two-year period immediately preceding the filing of an application for
             944      renewal, of not less than 28 classroom hours of instruction in courses or seminars that have
             945      received the approval of the board.
             946          (3) The division may adopt rules for the implementation of the provisions of this section
             947      to assure that each person renewing his registration, license, or certification under this chapter has
             948      a working knowledge of current real estate appraisal theories, practices, and techniques that will
             949      enable the person to provide competent real estate appraisal services to the members of the public
             950      with whom that person deals in a professional relationship under the authority of that person's
             951      registration, license, or certificate.
             952          (4) An amendment or repeal of a rule adopted by the division under this section shall not
             953      operate to deprive a person [certified] of credit toward renewal of that person's registration,
             954      license, or certification for any course of instruction that is successfully completed by the applicant
             955      prior to the date of the amendment or repeal of the [regulation] rule.
             956          (5) In lieu of meeting the requirements set forth in [this section] Subsection (2) and
             957      applicable rules, an applicant for [recertification] renewal may satisfy all or part of the continuing


             958      education requirements by presenting evidence of the following:
             959          (a) completion of an educational program of study determined by the board to be
             960      equivalent, for continuing education purposes, to courses or seminars approved by the board; or
             961          (b) participation other than as a student in educational processes and programs approved
             962      by the board that relate to real property appraisal theory, practices, or techniques including
             963      teaching, program development, and preparation of textbooks, monographs, articles, and other
             964      instructional materials.
             965          (6) The board shall develop and propose to the division rules for the implementation of
             966      the provisions of this section to assure that a person who renews his registration, license, or
             967      certification has a working knowledge of current real estate appraisal theories, practices, and
             968      techniques that will enable the person to provide competent real estate appraisal services to the
             969      members of the public with whom that person deals in a professional relationship under the
             970      authority of that person's registration, license, or certification. These rules shall prescribe:
             971          (a) policies and procedures to be followed in obtaining board approval of courses of
             972      instruction and seminars;
             973          (b) standards, policies, and procedures to be used by the division in evaluating an
             974      applicant's claims of equivalency; and
             975          (c) standards, monitoring methods, and systems for recording attendance to be employed
             976      by course and seminar sponsors as a prerequisite to division approval of courses and seminars for
             977      credit.
             978          (7) (a) A person whose registration, license, or certification has been revoked or suspended
             979      as the result of a disciplinary action taken by the board may not apply for reinstatement unless the
             980      person presents evidence of completion of the continuing education requirement that is provided
             981      in this chapter for renewal.
             982          (b) The continuing education required under Subsection (7)(a) shall not be imposed upon
             983      an applicant for reinstatement who has been required by the division to successfully complete the
             984      examination for licensure or certification required by Section 61-2b-20 as a condition to
             985      reinstatement.
             986          Section 38. Repealer.
             987          This act repeals:
             988          Section 61-2b-15.5, Senior appraisers.






Legislative Review Note
    as of 2-2-99 7:54 PM


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

Office of Legislative Research and General Counsel


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