H.B. 271

1

APPRAISALS AND APPRAISERS
2 AMENDMENTS
3 2001 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Gerry A. Adair
6 This act modifies the Real Estate Appraiser Licensing and Certification Act and the
7 Property Tax Act. The act amends sections relating to the authority of appraisers in order
8 to comply with federal guidelines. The act makes technical changes to appraisal provisions
9 of the Property Tax Act to reflect changes made in appraiser terminology.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 17-17-2, as last amended by Chapter 133, Laws of Utah 2000
13 59-2-701, as last amended by Chapter 117, Laws of Utah 1999
14 59-2-702, as last amended by Chapter 5, Laws of Utah 1991
15 59-2-703, as last amended by Chapter 173, Laws of Utah 1994
16 61-2b-10, as last amended by Chapter 117, Laws of Utah 1999
17 61-2b-13, as last amended by Chapter 117, Laws of Utah 1999
18 61-2b-17, as last amended by Chapter 117, Laws of Utah 1999
19 Be it enacted by the Legislature of the state of Utah:
20 Section 1. Section 17-17-2 is amended to read:
21 17-17-2. Assessor to be state qualified -- Vacancy -- Filling vacancy.
22 (1) In addition to the requirements of Section 17-16-1 , any person elected to the office of
23 county assessor after November 1, 1993, shall be a [state-registered,] state-licensed[,] or
24 state-certified appraiser as defined in Title 61, Chapter 2b, prior to the expiration of [24] 36
25 months from the day on which his term of office begins.
26 (2) (a) If an assessor fails to meet the requirement of this section, the assessor's office is
27 automatically vacant.

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

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

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

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

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

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

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

Office of Legislative Research and General Counsel