Stricken language would be deleted from and underlined language would be added to present law.
Act 628 of the Regular Session
*MLD262* 03-27-2023 10:34:15 MLD262
State of Arkansas As Engrossed: S3/7/23 H3/27/23 1
94th General Assembly A Bill 2
Regular Session, 2023 SENATE BILL 354 3
4
By: Senators K. Hammer, J. English 5
By: Representative Cavenaugh 6
7
For An Act To Be Entitled 8
AN ACT TO CREATE THE STATE BOARD OF APPRA ISERS, 9
ABSTRACTERS, AND HOM E INSPECTORS; TO TRA NSFER THE 10
DUTIES OF THE ARKANS AS ABSTRACTERS' BOAR D, THE 11
ARKANSAS HOME INSPEC TOR REGISTRATION BOA RD, AND THE 12
ARKANSAS APPRAISER L ICENSING AND CERTIFI CATION BOARD 13
TO THE STATE BOARD OF APPRA ISERS, ABSTRACTERS, AND 14
HOME INSPECTORS; TO ABOLISH THE ARKANSAS ABSTRACTERS' 15
BOARD, THE ARKANSAS HOME INSPECTOR REGIS TRATION 16
BOARD, AND THE ARKAN SAS APPRAISER LICENS ING AND 17
CERTIFICATION BOARD; TO DECLARE AN EMERGE NCY; AND FOR 18
OTHER PURPOSES. 19
20
21
Subtitle 22
TO TRANSFER THE DUTIES OF CERTAIN BOARDS 23
TO THE STATE BOARD OF APPRAISERS, 24
ABSTRACTERS, AND HOME INSPECTORS; AND TO 25
DECLARE AN EMERGENCY. 26
27
28
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 29
30
SECTION 1. DO NOT CODIFY. Abolition of Arkansas Abstracters' Board. 31
(a) The Arkansas Abstracters' Board is abolished, and its authority, 32
duties, functions, records, contracts, personnel, property, and unexpended 33
balances of appropriations, allocations, and other funds, including the 34
functions of budgeting or purchasing are transferred to the State Board of 35
Appraisers, Abstracters, and Home Inspectors . 36 As Engrossed: S3/7/23 H3/27/23 SB354
2 03-27-2023 10:34:15 MLD262
(b) The Arkansas Abstracters' Board's statutory powers, duties, and 1
functions, including the function s of budgeting or purchasing, records, 2
contracts, personnel, property, and unexpended balances of appropriations, 3
allocations, and other funds are transferred to the State Board of 4
Appraisers, Abstracters, and Home Inspectors . 5
(c)(1) The abolishment of t he Arkansas Abstracters' Board does not 6
affect the orders, rules, directives, registration, licensing, or standards 7
made or promulgated by the Arkansas Abstracters' Board before the effective 8
date of this act. 9
(2) The orders, rules, directives, registra tion, licensing, or 10
standards of the Arkansas Abstracters' Board shall continue to be in effect 11
until they are amended or repealed under authority given by law. 12
13
SECTION 2. DO NOT CODIFY. Abolition of Arkansas Home Inspector 14
Registration Board. 15
(a) The Arkansas Home Inspector Registration Board is abolished, and 16
its authority, duties, functions, records, contracts, personnel, property, 17
and unexpended balances of appropriations, allocations, and other funds, 18
including the functions of budgeting or purch asing are transferred to the 19
State Board of Appraisers, Abstracters, and Home Inspectors . 20
(b) The Arkansas Home Inspector Registration Board's statutory powers, 21
duties, and functions, including the functions of budgeting or purchasing, 22
records, contracts, personnel, property, and unexpended balances of 23
appropriations, allocations, and other funds are transferred to the State 24
Board of Appraisers, Abstracters, and Home Inspectors . 25
(c)(1) The abolishment of the Arkansas Home Inspector Registration 26
Board does not affect the orders, rules, directives, registration, licensing, 27
or standards made or promulgated by the Arkansas Home Inspector Registration 28
Board before the effective date of this act. 29
(2) The orders, rules, directives, registration, licensing, o r 30
standards of the Arkansas Home Inspector Registration Board shall continue to 31
be in effect until they are amended or repealed under authority given by law. 32
33
SECTION 3. DO NOT CODIFY. Abolition of Arkansas Appraiser Licensing 34
and Certification Board. 35
(a) The Arkansas Appraiser Licensing and Certification Board is 36 As Engrossed: S3/7/23 H3/27/23 SB354
3 03-27-2023 10:34:15 MLD262
abolished, and its authority, duties, functions, records, contracts, 1
personnel, property, and unexpended balances of appropriations, allocations, 2
and other funds, including the functions of b udgeting or purchasing are 3
transferred to the State Board of Appraisers, Abstracters, and Home 4
Inspectors. 5
(b) The Arkansas Appraiser Licensing and Certification Board's 6
statutory powers, duties, and functions, including the functions of budgeting 7
or purchasing, records, contracts, personnel, property, and unexpended 8
balances of appropriations, allocations, and other funds are transferred to 9
the State Board of Appraisers, Abstracters, and Home Inspectors . 10
(c)(1) The abolishment of the Arkansas Appraiser Licensing and 11
Certification Board does not affect the orders, rules, directives, 12
registration, licensing, or standards made or promulgated by the Arkansas 13
Appraiser Licensing and Certification Board before the effective date of this 14
act. 15
(2) The orders, rules, directives, registration, licensing, or 16
standards of the Arkansas Appraiser Licensing and Certification Board shall 17
continue to be in effect until they are amended or repealed under authority 18
given by law. 19
20
SECTION 4. Arkansas Code § 14 -15-205(b)(3), concerning professional 21
development recognition payments for county assessors, is amended to read as 22
follows: 23
(3) To the extent moneys are available, county assessors, full -24
time employees of county assessors' offices, and state employees who activ ely 25
work with ad valorem taxes designated as certified residential appraisers by 26
the Arkansas Appraiser Licensing and Certification Board State Board of 27
Appraisers, Abstracters, and Home Inspectors or as certified professional 28
designees by the International Association of Assessing Officers shall 29
annually receive a professional development recognition payment in an amount 30
not to exceed one thousand dollars ($1,000). 31
32
SECTION 5. Arkansas Code § 17-11-302(a), concerning certificate of 33
registrations, and application to the Arkansas Abstracters' Board, is amended 34
to read as follows: 35
(a) Any person desiring to become a registered abstracter under this 36 As Engrossed: S3/7/23 H3/27/23 SB354
4 03-27-2023 10:34:15 MLD262
chapter shall make application to the Arkansas Abstracters' Board State Board 1
of Appraisers, Abstracters, and Home Inspectors for registration. 2
3
SECTION 6. Arkansas Code § 17 -11-303 is amended to read as follows: 4
17-11-303. Certificate of registration — Examination. 5
The examination required under t his chapter shall be in the form of 6
written interrogatories as may be prescribed by the Arkansas Abstracters' 7
Board State Board of Appraisers, Abstracters, and Home Inspectors to 8
determine the proficiency of the applicant. 9
10
SECTION 7. Arkansas Code § 17 -11-304(a), concerning certificate of 11
registration, issuance, or reapplication under the Arkansas Abstracters' 12
Board, is amended to read as follows: 13
(a) If the applicant satisfactorily passes the examinations, the 14
applicant shall be certified as a registe red abstracter, and the certificate 15
provided for shall be issued to him or her. The privileges granted by the 16
certificate shall continue unless revoked, as provided in this chapter, or 17
unless the certificate is otherwise surrendered to the Arkansas Abstracters' 18
Board State Board of Appraisers, Abstracters, and Home Inspectors . 19
20
SECTION 8. Arkansas Code § 17 -11-305(a), concerning temporary 21
certificates of registration for abstracters, is amended to read as follows: 22
(a) The Arkansas Abstracters' Board State Board of Appraisers, 23
Abstracters, and Home Inspectors upon application to it the board by any 24
person succeeding to the ownership of any abstract plant or business by any 25
means other than by purchase, or any person who by reason of the incapacity 26
of any registered abstracter owner of any abstract plant or business is 27
required to assume the operation of the abstract plant or business, may grant 28
to the person without examination a temporary certificate of registration. 29
30
SECTION 9. Arkansas Code § 17 -11-320 is amended to read as follows: 31
17-11-320. Certificate of authority required. 32
No person, firm, or corporation shall engage in the business of 33
abstracting in this state until a certificate of authority has been issued to 34
the person, firm, or corporation by the Arkansas Abstracters' Board State 35
Board of Appraisers, Abstracters, and Home Inspectors . 36 As Engrossed: S3/7/23 H3/27/23 SB354
5 03-27-2023 10:34:15 MLD262
1
SECTION 10. Arkansas Code § 17 -11-321(a), concerning the application 2
and issuance of certificates of authority for abstracters, is amended to read 3
as follows: 4
(a) Any person, firm, or corporation desiring to engage in the 5
business of abstracting in this state shall make application to the Arkansas 6
Abstracters' Board State Board of Appraisers, Abstracters, and Home 7
Inspectors for a certificate of authority. 8
9
SECTION 11. Arkansas Code § 17 -11-322(b), concerning the expiration 10
and renewal of certificates of authority for abstracters, is amended to read 11
as follows: 12
(b) Current and subsisting certificates of authority shall be 13
renewed as provided for in this section for a one-year period upon payment of 14
a renewal fee in the sum to be set by the Arkansas Abstracters' Board State 15
Board of Appraisers, Abstracters, and Home Inspectors . 16
17
SECTION 12. Arkansas Code § 17 -11-324(a)(1)(A), concerning the bond, 18
insurance, or personal surety for abstracters, is amended to read as follows: 19
(a)(1)(A) Before the certificate of authority is issued, the applicant 20
shall file with the Arkansas Abstracters' Board State Board of Appraisers, 21
Abstracters, and Home Inspecto rs a bond approved by the board conditioned 22
upon the payment by the applicant of any and all damages that may be 23
sustained by or may accrue to any person, firm, or corporation for whom the 24
applicant may compile, make, or furnish abstracts of title by reaso n of or on 25
account of any error, deficiency, or mistake in any abstract or certificate, 26
or any continuation, made or issued by the abstracter over its authorized 27
signature and seal. 28
29
SECTION 13. Arkansas Code § 17 -11-340(a), concerning the revocation of 30
certificates for abstracters, is amended to read as follows: 31
(a) The Arkansas Abstracters' Board State Board of Appraisers, 32
Abstracters, and Home Inspectors is authorized, after a hearing as provided 33
in § 17-11-341, to cancel and revoke any certificate o f registration issued 34
to any person under the provisions of this chapter: 35
(1) For a violation of any of the provisions of this chapter; 36 As Engrossed: S3/7/23 H3/27/23 SB354
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(2) Upon a conviction of the holder of such a certificate of a 1
crime under § 17-3-102; or 2
(3) If the board finds the holder to be guilty of habitual 3
carelessness or of fraudulent practices in the conduct of the business of 4
abstracting. 5
6
SECTION 14. Arkansas Code § 17 -11-341(a)(1), concerning the revocation 7
of certificates, procedures and appeals for abstracte rs, is amended to read 8
as follows: 9
(a)(1) Upon a verified complaint's being filed with the Arkansas 10
Abstracters' Board State Board of Appraisers, Abstracters, and Home 11
Inspectors or upon the board's own motion filing a complaint charging the 12
holder of a certificate of registration with a violation of any of the 13
provisions of this chapter, or conviction of a crime under § 17 -3-102, or 14
habitual carelessness or fraudulent practices in the conduct of the business 15
of abstracting, or charging the holder of a ce rtificate of authority with 16
failure to furnish the bond or bonds, or other securities, required by § 17 -17
11-324, or with failing to have employed a registered abstracter as provided 18
in § 17-11-301, or with a violation of any of the provisions of this chapte r, 19
the board shall immediately notify in writing by registered mail, with return 20
receipt, the holder of the certificate of the filing of the complaint and 21
furnish the holder with a copy of the complaint. 22
23
SECTION 15. Arkansas Code § 17 -11-342 is amended to read as follows: 24
17-11-342. Seal. 25
Any licensee under this chapter shall provide a seal, which shall have 26
stamped on the license the name of the licensee, and shall deposit with the 27
Arkansas Abstracters' Board State Board of Appraisers, Abstracters, an d Home 28
Inspectors an impression of the seal and the names of all persons authorized 29
to sign certificates to abstracts on behalf of the licensee. 30
31
SECTION 16. Arkansas Code § 17 -11-401 is repealed. 32
17-11-401. Creation — Members. 33
(a) The Arkansas Abstracters' Board is created. 34
(b)(1) The board shall consist of five (5) members appointed by the 35
Governor, subject to confirmation by the Senate, for a term of six (6) years. 36 As Engrossed: S3/7/23 H3/27/23 SB354
7 03-27-2023 10:34:15 MLD262
(2) Two (2) members shall: 1
(A) Be actively involved in the making of abstracts of 2
real estate titles in this state for a period of at least five (5) years 3
before appointment; and 4
(B) Serve an initial term of six (6) years. 5
(3) Two (2) members shall: 6
(A) Be citizens of this state; and 7
(B) Serve an initial term of four (4) years. 8
(4) One (1) member shall: 9
(A) Be knowledgeable of the abstract business; and 10
(B) Serve an initial term of two (2) years. 11
(c) A vacancy on the board caused by death, resignation, or otherwise 12
shall be filled by appointment o f the Governor, subject to confirmation by 13
the Senate. 14
(d)(1) A member may be appointed to successive terms. 15
(2) No two (2) members shall be appointed from the same county. 16
(e)(1) Each member shall serve without compensation. 17
(2) However, a membe r may be entitled to receive travel and 18
expense reimbursement in accordance with § 25 -16-901 et seq. 19
20
SECTION 17. Arkansas Code § 17 -11-402 is repealed. 21
17-11-402. Organization and proceedings. 22
(a) The Arkansas Abstracters' Board shall elect a chair and a 23
secretary-treasurer. 24
(b) The chair and secretary -treasurer of the board shall have the 25
power to administer oaths. 26
(c) The board shall have a seal and shall have the power to compel the 27
attendance of witnesses. 28
29
SECTION 18. Arkansas Code § 17-11-403 is amended to read as follows: 30
(a)(1) The Arkansas Abstracters' Board State Board of Appraisers, 31
Abstracters, and Home Inspectors shall keep a register and shall record the 32
following information in the register: 33
(A) The name and the place of business of each applicant 34
for registration and certification; 35
(B) A notation of the action taken by the board on each 36 As Engrossed: S3/7/23 H3/27/23 SB354
8 03-27-2023 10:34:15 MLD262
application for registration and each application for certification; 1
(C) The date upon which each certificate o f registration 2
and each certificate of authority are issued; and 3
(D) Such other information as the board deems appropriate. 4
(2) The board shall maintain such other records, registers, and 5
files as may be necessary for the proper administration of it s duties under 6
this subchapter chapter. 7
(b) The board may adopt rules for the proper administration of its 8
powers and duties and the carrying out of the purposes of this subchapter 9
chapter. 10
11
SECTION 19. Arkansas Code § 17 -14-103(8), concerning the defi nitions 12
in the Arkansas Appraiser Licensing and Certification Act, is repealed. 13
(8) “Board” means the Arkansas Appraiser Licensing and 14
Certification Board established under the Arkansas Appraiser Licensing and 15
Certification Act, § 17 -14-101 et seq., § 17-14-201 et seq., and § 17 -14-301 16
et seq.; 17
18
SECTION 20. Arkansas Code § 17 -14-103(26), concerning the definitions 19
in the Arkansas Appraiser Licensing and Certification Act, is amended to read 20
as follows: 21
(26) “State-registered appraiser” means any per son who has 22
satisfied the requirements for a state -registered appraiser credential as set 23
forth in § 17-14-307 or requirements as may have been determined by the 24
Arkansas Appraiser Licensing and Certification Board State Board of 25
Appraisers, Abstracters, a nd Home Inspectors and who may perform appraisals 26
on any type of property except when the purpose of the appraisal is for use 27
in federally related transactions; 28
29
SECTION 21. Arkansas Code § 17 -14-104(c)(1), concerning, exceptions to 30
registration, licensi ng, or certification under the Arkansas Appraiser 31
Licensing and Certification Act, is amended to read as follows: 32
(c)(1) Except as provided in subsection (b) of this section, 33
appraisers, when providing appraisal reports or appraisal services in 34
nonfederally related transactions, who become licensed or certified by the 35
Arkansas Appraiser Licensing and Certification Board State Board of 36 As Engrossed: S3/7/23 H3/27/23 SB354
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Appraisers, Abstracters, and Home Inspectors are subject to the Arkansas 1
Appraiser Licensing and Certification Act, § 17 -14-101 et seq., § 17-14-201 2
et seq., and § 17-14-301 et seq., in all matters involving appraisal 3
services, including transactions below the federally established threshold. 4
5
SECTION 22. Arkansas Code § 17 -14-105(c), concerning the rights and 6
privileges of appraisers, is amended to read as follows: 7
(c) An appraiser shall not perform or be employed to perform an 8
appraisal where the property that is subject to the assignment lies within 9
the borders of the State of Arkansas without first being state -registered, 10
state-licensed, registered apprentice, or state -certified by the Arkansas 11
Appraiser Licensing and Certification Board State Board of Appraisers, 12
Abstracters, and Home Inspectors . 13
14
SECTION 23. Arkansas Code § 17 -14-106(a), concerning the absence of 15
liability under the Arkansas Appraiser Licensing and Certification Act , is 16
amended to read as follows: 17
(a) Financial institutions or affiliates hiring the services of 18
appraisers registered, licensed, or certified by the Arkansas Appraiser 19
Licensing and Certification Board State Board of Appraisers, Abstracters, and 20
Home Inspectors in nonfederally related transactions, including transactions 21
below the federally established threshold, shall not be liable to any party 22
asserting damages due to the alleged actions of the appraiser, nor shall the 23
financial institution or affiliate be sub ject to any requirements to report 24
to the board regarding such transactions other than as may be required by the 25
Arkansas Appraiser Licensing and Certification Act, § 17 -14-101 et seq., § 26
17-14-201 et seq., and § 17 -14-301 et seq., and the rules promulgate d by the 27
board. 28
29
SECTION 24. Arkansas Code § 17 -14-201 is amended to read as follows: 30
17-14-201. Composition — Membership — Chair. 31
(a) There is created the Arkansas Appraiser Licensing and 32
Certification Board State Board of Appraisers, Abstracters, an d Home 33
Inspectors, to be composed of ten (10) eleven (11) members as follows: 34
(1) Seven (7) Five (5) practicing certified or licensed 35
appraisers as follows: 36 As Engrossed: S3/7/23 H3/27/23 SB354
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(A) At least five (5) four (4) of the appraiser members of 1
the board shall be state -certified appraisers; 2
(B) No more than two (2) appraiser members shall reside in 3
the same congressional district of the four (4) Arkansas congressional 4
districts; and 5
(C) The seven (7) five (5) practicing appraiser members 6
shall be representative of the va rious disciplines found in the appraisal 7
profession, including without limitation residential appraisal, commercial 8
and industrial appraisal, forestry and timberland appraisal, rural appraisal, 9
and any other appraisal discipline that may be affected by the Arkansas 10
Appraiser Licensing and Certification Act, § 17 -14-101 et seq., § 17-14-201 11
et seq., and § 17-14-301 et seq.; 12
(2) One (1) board member shall be a representative of financial 13
institutions familiar with the appraisal process; 14
(3) One (1) senior citizen and consumer representative; and 15
(4) One (1) consumer representative Three (3) registered home 16
inspectors; and 17
(5) One (1) person who is actively involved in the making of 18
abstracts of real estate titles in the state or is knowledgeable ab out the 19
abstract business for a minimum of (5) years before appointment . 20
(b)(1) The Governor shall appoint the members of the board subject to 21
confirmation by the Senate and may remove a member for cause. 22
(2) At least five (5) four (4) real estate appraiser members 23
appointed to the board shall be members in good standing of: 24
(A) A state or regional chapter of a nationally recognized 25
real estate appraisal organization that requires an individual to have 26
qualified appraisal experience , education, and testing in order to become a 27
designated member and to adhere to standards of professional practice in 28
order to retain such a designation; or 29
(B) The Association of Consulting Foresters of America, 30
Inc., Arkansas Chapter. 31
(c)(1)(A) The term of each appraiser board member shall be three (3) 32
years. 33
(B) The financial member representative, the senior 34
citizen representative, and the consumer representative shall have three -year 35
terms. 36 As Engrossed: S3/7/23 H3/27/23 SB354
11 03-27-2023 10:34:15 MLD262
(2) Upon expiration of their terms, members of t he board shall 1
continue to hold office until the appointment and qualification of their 2
successors. 3
(3) No person shall serve as a member of the board for more than 4
two (2) consecutive terms. 5
(d) The members of the board will select a state-certified appraiser 6
chair. 7
(e) Each member of the board may receive expense reimbursement and 8
stipends in accordance with § 25 -16-901 et seq. 9
10
SECTION 25. Arkansas Code § 17 -14-202 is amended to read as follows: 11
17-14-202. Powers and duties — Reporting standards — Qualification 12
standards. 13
(a) The Arkansas Appraiser Licensing and Certification Board State 14
Board of Appraisers, Abstracters, and Home Inspectors may establish, 15
maintain, report, and periodically update meaningful qualification standards 16
for state-licensed, registered apprentice, and state -certified appraisers 17
practicing in the State of Arkansas, including testing, experience, and 18
educational requirements that: 19
(1) Are adequate to demonstrate knowledge and competency; and 20
(2) Will further demons trate the continued compliance with: 21
(A) All applicable federal law and regulations, including 22
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act 23
of 1989, and related requirements of the federal financial institutions 24
regulatory agencies; and 25
(B) The minimum standards and qualifications as 26
promulgated by the Appraisal Standards Board and the Appraiser Qualifications 27
Board of the Appraisal Foundation. 28
(b) The Arkansas Appraiser Licensing and Certification Board State 29
Board of Appraisers, Abstracters, and Home Inspectors may adopt, maintain, 30
report, and periodically update minimum reporting standards for state -31
registered, state-licensed, registered apprentice, and state -certified 32
appraisers practicing in the State of Arkansas. The reporting standards 33
shall: 34
(1) Be equivalent to the Uniform Standards of Professional 35
Appraisal Practice as promulgated by the Appraisal Standards Board of the 36 As Engrossed: S3/7/23 H3/27/23 SB354
12 03-27-2023 10:34:15 MLD262
Appraisal Foundation; and 1
(2) At all times seek compliance with: 2
(A) All applicable federal law and regulations, including 3
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act 4
of 1989, and related requirements of the federal financial institutions 5
regulatory agencies; and 6
(B) The minimum standards as promulgated by the Appraisal 7
Standards Board of the Appraisal Foundation. 8
9
SECTION 26. Arkansas Code § 17 -14-203 is amended to read as follows: 10
17-14-203. Powers and duties — In general. 11
In accordance with these general powers and duties, the Arkansas 12
Appraiser Licensing and Certification Board State Board of Appraisers, 13
Abstracters, and Home Inspectors shall: 14
(1) Perform all duties and functions necessary to carry out this 15
chapter; 16
(2)(A) Receive applications for registering, licensing, and 17
certification. 18
(B) The application shall include the applicant's consent 19
to a state criminal background check and a national fingerprint -based 20
criminal background check performed by the Federal Bureau of Investigation in 21
compliance with federal law and r egulations; 22
(3) Establish administrative procedures for processing 23
applications; 24
(4)(A)(i) Approve and issue registration, licenses, and 25
certificates to qualified applicants or disapprove applications for 26
registering, licensing, and certification for applicants who do not meet the 27
minimum requirements as prescribed in this chapter. 28
(ii) The minimum requirements shall include a 29
determination that the applicant possesses a background that does not call 30
into question public trust or the applicant's fitness for registration, 31
licensure, or certification. 32
(B) All application materials and records submitted to the 33
Arkansas Appraiser Licensing and Certification Board State Board of 34
Appraisers, Abstracters, and Home Inspectors shall be retained by the 35
Arkansas Appraiser Licensing and Certification Board State Board of 36 As Engrossed: S3/7/23 H3/27/23 SB354
13 03-27-2023 10:34:15 MLD262
Appraisers, Abstracters, and Home Inspectors ; 1
(5)(A) Maintain a roster of the names, addresses, email 2
addresses, and telephone numbers of all persons licensed and certified under 3
the Arkansas Appraiser Licensing and Certification Act, § 17 -14-101 et seq., 4
§ 17-14-201 et seq., and § 17 -14-301 et seq., and, in accordance with 5
sections 1103(a)(3) and 1109(a)(1) of Title XI of the Financial Institutions 6
Reform, Recovery, and Enforcement Act of 1989, shall submit this roster 7
monthly to the Appraisal Subcommittee. 8
(B) This roster may be published and periodically updated 9
and provided to all interested parties at cost; 10
(6)(A) Establish by rule the minimum examination, education, 11
experience, and continuing education requirements for state -registered, 12
state-licensed, registered apprentice, and state -certified appraisers. 13
(B)(i) The criteria for a state -registered appraiser shall 14
be less rigorous than the criteria for a state -licensed appraiser. 15
(ii) The criteria for a state -licensed appraiser 16
shall be less rigorous than the criteria for a state -certified appraiser. 17
However, the criteria will ensure that licensed appraisers have sufficient 18
experience and training to perform appraisals for transactions within and in 19
compliance with Title XI of the Financial Institutions Reform, Recovery, and 20
Enforcement Act of 1989. 21
(C) These rules shall at all times be equivalent to the 22
minimum appraiser-qualification criteria as promulgated by the Appraiser 23
Qualifications Board of the Appraisal Foundation for state -licensed, 24
registered apprentice, and state -certified appraisers performing federally 25
related transactions. 26
(D) With respect to examinations, these rules shall at all 27
times require minimum examination contents that are equivalent to the 28
national uniform examination content as promulgated by the Appraiser 29
Qualifications Board of the Appraisal Foundation and shall provide for the 30
selection and utilization of a testing service acceptable to the Appraiser 31
Qualifications Board of the Appraisal Foundation. 32
(E)(i) Every application for registering, licensing, and 33
certifying shall be accompanied by an application fee and a criminal 34
background check fee that the Arkansas Appraiser Licensing and Certification 35
Board State Board of Appraisers, Abstracters, and Home Inspectors may 36 As Engrossed: S3/7/23 H3/27/23 SB354
14 03-27-2023 10:34:15 MLD262
establish by rule. 1
(ii) However, the Arkansas Appraiser Licensing and 2
Certification Board State Board of Appraisers, Abstracters, and Home 3
Inspectors, at its discretion, may direct each applicant to pay the actual 4
cost of the examination fee directly to a testing service engaged by the 5
Arkansas Appraiser Licensing and Certification Board State Board of 6
Appraisers, Abstracters, and Home Inspectors to administer the examination. 7
(F)(i) The application fee to upgrade a credential from 8
registered apprentice to state -licensed or to state -certified shall not 9
exceed one hundred dollars ($100). 10
(ii) The application fee to upgrade a credential 11
from state-licensed to state-certified shall not exceed fifty dollars 12
($50.00). 13
(G) The total annual resident registering, licensing, 14
certification, and application fees established by the Arkansas Appraiser 15
Licensing and Certification Board State Board of Appraisers, Abstracters, and 16
Home Inspectors shall not exceed three hundred dollars ($300), excluding fees 17
for: 18
(i) Applicable examination and federal pass -through 19
fees; and 20
(ii) Criminal background check fees. 21
(H) Courses, schools, seminars, and any oth er educational 22
programs must be recognized by the Arkansas Appraiser Licensing and 23
Certification Board State Board of Appraisers, Abstracters, and Home 24
Inspectors as acceptable to satisfy registration, licensing, and 25
certification standards and continuing education requirements under the 26
Arkansas Appraiser Licensing and Certification Act, § 17 -14-101 et seq., § 27
17-14-201 et seq., and § 17 -14-301 et seq.; 28
(7)(A) Establish administrative procedures for disciplinary 29
proceedings conducted under the Arkansas Appraiser Licensing and 30
Certification Act, § 17 -14-101 et seq., § 17-14-201 et seq., and § 17 -14-301 31
et seq. 32
(B) The administrative procedures shall include provisions 33
for the suspension and revocation of registration, licenses, and certificates 34
and the enforcement of civil penalties concurrent with existing statutes 35
regarding civil procedures; 36 As Engrossed: S3/7/23 H3/27/23 SB354
15 03-27-2023 10:34:15 MLD262
(8) Subpoena and issue subpoena duces tecum and to bring before 1
it the State Board of Appraisers, Abstracters, and Home Inspectors any person 2
in this state, and to take testimony by deposition, in the same manner as 3
prescribed by law in judicial proceedings in the courts of this state or to 4
require production of any records relevant to any inquiry or hearing by the 5
Arkansas Appraiser Licensing and Certification Board State Board of 6
Appraisers, Abstracters, and Home Inspectors ; 7
(9) Recommend procedures necessary to assure the ready 8
availability to appraisers in the state of adequate and reliable information 9
regarding property prices and the terms and condition s of real estate and 10
real property transactions and related financing; 11
(10) Establish administrative procedures for the setting, 12
charging, and collecting of fees necessary for the operation of the Arkansas 13
Appraiser Licensing and Certification Board State Board of Appraisers, 14
Abstracters, and Home Inspectors and to concurrently collect and submit to 15
the proper agency as prescribed under Section 1109(a)(4) of the Financial 16
Institutions Reform, Recovery, and Enforcement Act of 1989 and any other 17
related federal law, any additional fees that may from time to time be 18
required to be paid by appraisers whose practices include the appraisal of 19
properties included in federally related transactions; 20
(11) Be authorized to adopt and enforce such administrative 21
rules as may be necessary to comply with state law and federal law with 22
specific reference to Title XI of the Financial Institutions Reform, 23
Recovery, and Enforcement Act of 1989 as it exists today and as it may be 24
amended and adopted by the Appraisal Subcom mittee; and 25
(12)(A)(i) Obtain a state criminal background check performed by 26
the Identification Bureau of the Division of Arkansas State Police and a 27
national fingerprint -based criminal background check performed by the Federal 28
Bureau of Investigation i n compliance with federal law and regulations for 29
all applicants for a real property appraiser registration, license, or 30
certification to determine if the applicant possesses a background that does 31
not call into question public trust or the applicant's fit ness for 32
registration, licensure, or certification. 33
(ii) Subdivision (12)(A)(i) of this section applies 34
to an application for a state -registered appraiser credential, an application 35
for a registered apprentice appraiser credential, an application to u pgrade 36 As Engrossed: S3/7/23 H3/27/23 SB354
16 03-27-2023 10:34:15 MLD262
an existing appraiser credential, an application to reinstate an appraiser 1
credential that has been inactive for more than twelve (12) months, and an 2
application for a new reciprocal appraiser credential. 3
(iii) Subdivision (12)(A)(i) of this se ction does 4
not apply to an application for a temporary practice permit. 5
(B) An applicant shall provide all information requested 6
by the Arkansas Appraiser Licensing and Certification Board State Board of 7
Appraisers, Abstracters, and Home Inspectors to assist making the 8
determination. 9
(C) Factors to consider in making the determination 10
include without limitation whether the applicant: 11
(i) During the five (5) years immediately preceding 12
the date of the application was convicted of, or pled guilty or nolo 13
contendere to, a crime that would call into question the applicant's fitness 14
for registration, licensure, or certification, including without limitation a 15
crime involving: 16
(a)(1) An act substantially related to the 17
qualifications, functions, or duties of an appraiser. 18
(2) A crime or act may be deemed 19
substantially related to the qualifications, functions, or duties of an 20
appraiser if, to a substantial degree, the crime or act evidences present or 21
potential unfitness of a person applyin g for or holding a real property 22
appraiser credential to perform the functions authorized by the credential; 23
(b) Taking, appropriating, or retaining the 24
funds or property of another; 25
(c) Forging, counterfeiting, or altering an 26
instrument affecting the rights or obligations of another; 27
(d) Evasion of a lawful debt or obligation, 28
including without limitation a tax obligation; 29
(e) Trafficking in narcotics or controlled 30
substances; 31
(f) Violation of a relation of trust or 32
confidence; 33
(g) Theft of personal property or funds; 34
(h) An act of violence or threatened violence 35
against persons or property; or 36 As Engrossed: S3/7/23 H3/27/23 SB354
17 03-27-2023 10:34:15 MLD262
(i) A sexually related crime or act under § 5 -1
14-101 et seq.; 2
(ii) Has had an appraiser registration, license, 3
certification, or credential of any type revoked in any governmental 4
jurisdiction; 5
(iii) Performed any act which if done by an 6
appraiser would be grounds to revoke or suspend the appraiser's license or 7
certification; 8
(iv) Knowingly made a false statement of material 9
fact required to be disclosed in an application for any professional license 10
or certification; 11
(v) Has been prohibited from participating in the 12
affairs of an insured depository institution under Section 19(a) of the 13
Federal Deposit Insurance Act, 12 U.S.C. § 1829; 14
(vi) Misrepresented facts or information on the 15
appraiser registration, license, or certification application; or 16
(vii) Cheated on an examination for a real property 17
appraiser registration, license, or cer tification. 18
19
SECTION 27. Arkansas Code § 17 -14-204(a), concerning meetings, quorum, 20
and voting by the Arkansas Appraiser Licensing and Certification Board, is 21
amended to read as follows: 22
(a) The Arkansas Appraiser Licensing and Certification Board State 23
Board of Appraisers, Abstracters, and Home Inspectors shall meet not less 24
frequently than twice each calendar year to conduct its business. 25
26
SECTION 28. Arkansas Code § 17 -14-204(e), concerning quorum 27
requirements, is amended to read as follows: 28
(e)(1) A quorum of the board shall be six (6) five (5) members, 29
provided that four (4) must be state -licensed or state-certified appraisers . 30
(2) No binding decisions or regulatory changes may be made by 31
the board in the absence of a quorum. 32
33
SECTION 29. Arkansas Code § 17-14-205(a), concerning the hearings, 34
review, and access to records under the Arkansas Appraiser Licensing and 35
Certification Act, is amended to read as follows: 36 As Engrossed: S3/7/23 H3/27/23 SB354
18 03-27-2023 10:34:15 MLD262
(a) In fulfilling its duties under the Arkansas Appraiser Licensing 1
and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17 -14-2
301 et seq., the Arkansas Appraiser Licensing and Certification Board State 3
Board of Appraisers, Abstracters, and Home Inspectors shall comply with the 4
Arkansas Administrative Procedure A ct, § 25-15-201 et seq., and any person 5
aggrieved by any rule or other actions of the board for which an appeal is 6
not provided for in the Arkansas Administrative Procedure Act, § 25 -15-201 et 7
seq., may appeal to the Pulaski County Circuit Court. 8
9
SECTION 30. Arkansas Code § 17 -14-206(a), concerning complaints and 10
disciplinary procedures under the Arkansas Appraiser Licensing and 11
Certification Act, is amended to read as follows: 12
(a) Upon its own motion or upon written complaint of any person and 13
after notice and hearing as prescribed by the Arkansas Administrative 14
Procedure Act, § 25-15-201 et seq., the Arkansas Appraiser Licensing and 15
Certification Board State Board of Appraisers, Abstracters, and Home 16
Inspectors may suspend or revoke the registration, license, or certification 17
of any registrant, licensee, or certificate holder and issue a fine up to the 18
amount of one thousand dollars ($1,000) per violation occurrence or take any 19
other appropriate disciplinary action for: 20
(1) Violation of any provisio n of the Arkansas Appraiser 21
Licensing and Certification Act, § 17 -14-101 et seq., § 17-14-201 et seq., 22
and § 17-14-301 et seq.; 23
(2) Falsifying any application for licensure or certification or 24
otherwise providing any false information to the board; 25
(3) [Repealed.] 26
(4) Any actions demonstrating untrustworthiness, incompetence, 27
dishonesty, gross negligence, material misrepresentation, fraud, or unethical 28
conduct in any dealings subject to the Arkansas Appraiser Licensing and 29
Certification Act, § 17 -14-101 et seq., § 17-14-201 et seq., and § 17 -14-301 30
et seq.; 31
(5) Adjudication of insanity; 32
(6) Use of advertising or solicitation that is false, 33
misleading, or is otherwise deemed unprofessional by the board; 34
(7) Employing directly or indirectly a ny unlicensed person to 35
perform any actions subject to the Arkansas Appraiser Licensing and 36 As Engrossed: S3/7/23 H3/27/23 SB354
19 03-27-2023 10:34:15 MLD262
Certification Act, § 17 -14-101 et seq., § 17-14-201 et seq., and § 17 -14-301 1
et seq.; 2
(8) Habitual or excessive use of intoxicants or illegal drugs; 3
or 4
(9) Failure to meet continuing education requirements within the 5
proper time period. 6
7
SECTION 31. Arkansas Code § 17 -14-305(a)(1), concerning compliance 8
with uniform standards and code of ethics, seals, and licensing and 9
certification documents under the Arkansas Appraiser Licensing and 10
Certification Act, is amended to read as follows: 11
(a)(1) Each state-registered appraiser, each state -licensed appraiser, 12
each registered apprentice appraiser, and each state -certified appraiser 13
shall comply with the Uniform St andards of Professional Appraisal Practice 14
and Code of Ethics code of ethics adopted by the Arkansas Appraiser Licensing 15
and Certification Board State Board of Appraisers, Abstracters, and Home 16
Inspectors and shall authenticate all written appraisal reports with a seal 17
that shall indicate the registration, license, or certification number. 18
19
SECTION 32. Arkansas Code § 17 -14-306(b)(1), concerning additional 20
licenses and nonresidents under the Arkansas Appraiser Licensing and 21
Certification Act, is amended to read as follows: 22
(b)(1) If, in the determination by the Arkansas Appraiser Licensing 23
and Certification Board State Board of Appraisers, Abstracters, and Home 24
Inspectors, another state is deemed to have substantially equivalent 25
licensing and certification requirements, an applicant who is licensed or 26
certified under the laws of the other state may obtain a nonresident license 27
or certificate as a state -licensed appraiser or a state -certified appraiser 28
in this state upon such terms and conditions as may be determined by the 29
board. 30
31
SECTION 33. Arkansas Code § 17-14-307(1), concerning minimum 32
qualifying requirements for registered appraisers, is amended to read as 33
follows: 34
(1) Make application to th e Arkansas Appraiser Licensing and 35
Certification Board State Board of Appraisers, Abstracters, and Home 36 As Engrossed: S3/7/23 H3/27/23 SB354
20 03-27-2023 10:34:15 MLD262
Inspectors on approved forms which shall include an affidavit that states 1
that the appraiser has read and understands: 2
(A) The current edition of th e Uniform Standards of 3
Professional Appraisal Practice; 4
(B) The board's statutes; and 5
(C) The board's rules; 6
7
SECTION 34. Arkansas Code § 17 -14-308(a)(2)(B)(ii)(b), concerning a 8
violation of law, civil penalties, injunctions, and venue under the Arkansas 9
Appraiser Licensing and Certification Act, is amended to read as follows: 10
(b) Withholding payment for an appraisal based 11
upon a bona fide dispute concerning the appraiser's compliance with the 12
appraisal standards adopted by the Arkansas Appraiser Licensing and 13
Certification Board State Board of Appraisers, Abstracters, and Home 14
Inspectors under this chapter. 15
16
SECTION 35. Arkansas Code § 17 -14-402(9), concerning the definition of 17
“board” under the Arkansas Appraiser Licensing and Certificati on Act, is 18
repealed. 19
(9) “Board” means the Arkansas Appraiser Licensing and 20
Certification Board established under the Arkansas Appraiser Licensing and 21
Certification Act, § 17 -14-101 et seq., § 17-14-201 et seq., and § 17 -14-301 22
et seq.; 23
24
SECTION 36. Arkansas Code § 17-14-403 is amended to read as follows: 25
17-14-403. Registration of appraisal management companies required. 26
A person shall not act as an appraisal management company or perform 27
appraisal management services in this state unless registered by the Arkansas 28
Appraiser Licensing and Certification Board State Board of Appraisers, 29
Abstracters, and Home Inspectors . 30
31
SECTION 37. Arkansas Code § 17 -14-404 is amended to read as follows: 32
17-14-404. Rulemaking authority. 33
The Arkansas Appraiser Licensing and Certification Board State Board of 34
Appraisers, Abstracters, and Home Inspectors may adopt rules to implement, 35
administer, and enforce this subchapter, including without limitation to 36 As Engrossed: S3/7/23 H3/27/23 SB354
21 03-27-2023 10:34:15 MLD262
prescribe: 1
(1) Forms and procedures for submitting infor mation to the 2
board; 3
(2) Standards of practice for a person registered under this 4
subchapter; and 5
(3) Standards for the operation of appraisal management 6
companies. 7
8
SECTION 38. Arkansas Code § 17 -14-405(a)(1), concerning the 9
requirements for regis tration for an appraisal management company, is amended 10
to read as follows: 11
(a)(1) Before acting or offering to act as an appraisal management 12
company in this state, a person shall make written application on the forms 13
provided on the official website of the Arkansas Appraiser Licensing and 14
Certification Board State Board of Appraisers, Abstracters, and Home 15
Inspectors to the board for registration accompanied by the fee and bond 16
established by the board. 17
18
SECTION 39. Arkansas Code § 17 -14-406(a)(1), concerning the fees and 19
renewals for registration of appraisal management companies, is amended to 20
read as follows: 21
(a)(1) The Arkansas Appraiser Licensing and Certification Board State 22
Board of Appraisers, Abstracters, and Home Inspectors shall establish by rule 23
an application fee for an initial application or an application for renewal 24
not to exceed one thousand five hundred dollars ($1,500) to be paid by each 25
appraisal management company seeking registration under this subchapter. 26
27
SECTION 40. Arkansas Code § 17-14-407(a)(2), concerning registrant 28
responsibilities and duties, is amended to read as follows: 29
(2) Provide to the Arkansas Appraiser Licensing and 30
Certification Board State Board of Appraisers, Abstracters, and Home 31
Inspectors the information required by § 4-20-105(a) concerning the 32
organization's agent for service of process and within five (5) business days 33
any changes to the information. 34
35
SECTION 41. Arkansas Code § 17 -14-408(b)(5), concerning prohibited 36 As Engrossed: S3/7/23 H3/27/23 SB354
22 03-27-2023 10:34:15 MLD262
activities for appraisal manage ment companies, is amended to read as follows: 1
(5) Enter into contracts or agreements with an independent 2
appraiser for the performance of appraisal services unless the independent 3
appraiser is licensed or certified in good standing with the Arkansas 4
Appraiser Licensing and Certification Board State Board of Appraisers, 5
Abstracters, and Home Inspectors ; 6
7
SECTION 42. Arkansas Code § 17 -14-409(a)(1), concerning the registry 8
of applicants and roster for appraisal management companies, is amended to 9
read as follows: 10
(a)(1) The Executive Director of the Arkansas Appraiser Licensing and 11
Certification Board State Board of Appraisers, Abstracters, and Home 12
Inspectors shall keep a register of all applicants for registration. 13
14
SECTION 43. Arkansas Code § 17 -14-409(b)(1), concerning the registry 15
of applicants and roster for appraisal management companies, is amended to 16
read as follows: 17
(b)(1) The executive director shall keep a current roster showing the 18
names and addresses of all appraisal management compani es registered with the 19
Arkansas Appraiser Licensing and Certification Board State Board of 20
Appraisers, Abstracters, and Home Inspectors . 21
22
SECTION 44. Arkansas Code § 17 -14-410(a), concerning disciplinary 23
authority, enforcement, and hearings for appraisal management companies, is 24
amended to read as follows: 25
(a) The Arkansas Appraiser Licensing and Certification Board State 26
Board of Appraisers, Abstracters, and Home Inspectors may deny, suspend, 27
revoke, or refuse to issue or renew the registration of an a ppraisal 28
management company under this subchapter or may restrict or limit the 29
activities of an appraisal management company or a person who owns an 30
interest in or participates in the business of an appraisal management 31
company if the board finds that any of the following circumstances apply to 32
the applicant, a registrant, or a partner, member, manager, officer, 33
director, managing principal, controlling person, or a person occupying a 34
similar status or performing similar functions, or a person directly or 35
indirectly controlling the applicant or registrant: 36 As Engrossed: S3/7/23 H3/27/23 SB354
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(1) The person's application for registration when filed or 1
after filing contained a statement that in light of the circumstances under 2
which it was made is false or misleading with respect to a material fact; 3
(2) The person has violated or failed to comply with this 4
subchapter; 5
(3) The person has pleaded guilty or nolo contendere to or been 6
found guilty of: 7
(A) A felony listed under § 17 -3-102; or 8
(B) Within the past ten (10) years: 9
(i) A misdemeanor involving mortgage lending or real 10
estate appraising; or 11
(ii) An offense involving breach of trust or 12
fraudulent or dishonest dealing; 13
(4) The person is permanently or temporarily enjoined by a court 14
of competent jurisdictio n from engaging in or continuing any conduct or 15
practice involving appraisal management services or operating an appraisal 16
management company; 17
(5) The person is the subject of an order of the board or any 18
other state appraisal management company regulat ory agency denying, 19
suspending, or revoking the person's privilege to operate as an appraisal 20
management company; 21
(6) The person acted as an appraisal management company while 22
not properly registered by the board; or 23
(7) The person failed to pay the proper filing or renewal fee 24
under this subchapter. 25
26
SECTION 45. Arkansas Code § 17 -14-411(a), concerning injunctive relief 27
and criminal penalties, is amended to read as follows: 28
(a) The Arkansas Appraiser Licensing and Certification Board State 29
Board of Appraisers, Abstracters, and Home Inspectors may appear in its own 30
name in a circuit court of competent jurisdiction to obtain injunctive relief 31
to prevent a person from violating this subchapter. 32
33
SECTION 46. Arkansas Code § 17 -14-413(b), concerning the compensation 34
of appraisers, is amended to read as follows: 35
(b) An appraiser who is aggrieved under this section may file a 36 As Engrossed: S3/7/23 H3/27/23 SB354
24 03-27-2023 10:34:15 MLD262
complaint with the Arkansas Appraiser Licensing and Certification Board State 1
Board of Appraisers, Abstracters, and Home Inspec tors against the appraisal 2
management company. 3
4
SECTION 47. Arkansas Code § 17 -14-414 is amended to read as follows: 5
17-14-414. Appraisal review. 6
Any employee of an appraisal management company or an independent 7
contractor of the appraisal management c ompany who performs a Uniform 8
Standards of Professional Appraisal Practice Standard 3 appraisal review of 9
an appraisal report on a property located in this state shall be an appraiser 10
with the proper level of appraiser credential issued by the Arkansas 11
Appraiser Licensing and Certification Board State Board of Appraisers, 12
Abstracters, and Home Inspectors . 13
14
SECTION 48. Arkansas Code § 17 -52-302(b), concerning the purpose and 15
intent of licensing home inspectors, is amended to read as follows: 16
(b) The purpose of the Arkansas Home Inspector Registration Board 17
State Board of Appraisers, Abstracters, and Home Inspectors created under 18
this subchapter shall be to: 19
(1) Administer and enforce the provisions of this subchapter; 20
(2) Promote a business atmosph ere that will protect consumers of 21
home inspection services; 22
(3) Oversee an ongoing program to develop high -level skills in 23
home inspectors; and 24
(4) Encourage the presence of a viable home inspection industry 25
in Arkansas. 26
27
SECTION 49. Arkansas Code § 17-52-304 is repealed. 28
17-52-304. Arkansas Home Inspector Registration Board — Creation — 29
Members. 30
(a) There is created the Arkansas Home Inspector Registration Board . 31
(b) The board shall consist of seven (7) members, to be appointed by 32
the Governor as follows: 33
(1) Four (4) members shall be registered home inspectors; 34
(2) One (1) member shall be a licensed real estate professional; 35
(3) One (1) member shall be a licensed real estate appraiser; 36 As Engrossed: S3/7/23 H3/27/23 SB354
25 03-27-2023 10:34:15 MLD262
and 1
(4) One (1) member shall be an at -large member who shall serve 2
as a consumer advocate. 3
(c)(1) The initial members appointed under subsection (b) of this 4
section shall determine their terms of office by drawing lots to result in 5
two (2) home inspector members and two (2) noninspector memb ers serving two-6
year terms and two (2) home inspector members and one (1) noninspector member 7
serving one-year terms. 8
(2) Successor appointed members shall serve two -year terms. 9
(d) Any vacancy that occurs on the board shall be filled by the 10
Governor for the remainder of the unexpired term. 11
(e) Board members shall serve not more than three (3) consecutive 12
terms of office. 13
(f) The consumer advocate member of the board shall call the first 14
meeting and shall serve as chair of the first meeting. 15
(g) If funds are available, members of the board may receive expense 16
reimbursement according to § 25 -16-902. 17
18
SECTION 50. Arkansas Code § 17 -52-305 is repealed. 19
17-52-305. Meetings. 20
(a) The Arkansas Home Inspector Registration Board shall physically 21
meet not fewer than two (2) times each calendar year to conduct the business 22
of the board. 23
(b) The board may conduct any additional meetings in person, by 24
telephone conference call, or by other electronic means. 25
(c) Dates, times, and places of meetings shal l be decided by a 26
majority vote of the board members. 27
(d)(1) At the first meeting, a chair and all other officers needed to 28
conduct the business of the board shall be elected. 29
(2) Except for the election of the initial board officers, all 30
officers shall be elected in May of each year and shall serve for twelve -31
month terms. 32
(e) Written notice shall be given to each member of the board of the 33
time and place of each meeting at least ten (10) calendar days before the 34
scheduled date of the meeting. 35
(f) The minutes of all meetings shall be recorded by an administrative 36 As Engrossed: S3/7/23 H3/27/23 SB354
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secretary and made a permanent part of the records of the board no later than 1
seven (7) calendar days after the respective meeting. 2
(g) A majority of the members of the board shall con stitute a quorum 3
for transacting any business of the board. 4
5
SECTION 51. Arkansas Code § 17 -52-306 is amended to read as follows: 6
17-52-306. Powers and duties of the board. 7
The Arkansas Home Inspector Registration Board State Board of 8
Appraisers, Abstracters, and Home Inspectors may: 9
(1) Perform the duties and functions appropriate and necessary 10
to carry out the provisions of this subchapter; 11
(2) Review, approve, or reject registration applications and 12
issue registration certificates to applicant s; 13
(3) Establish a mandatory continuing education program designed 14
to upgrade the professional skills and knowledge of home inspectors 15
practicing in Arkansas; 16
(4)(A) Establish administrative procedures for disciplinary 17
proceedings conducted according to the provisions for this subchapter. 18
(B) The procedures shall include provisions for the 19
suspension and revocation of registration and enforcement of civil penalties; 20
(5) Establish procedures for processing and resolving complaints 21
against home inspectors conducting home inspections in Arkansas; 22
(6) Authorize disbursement of the funds collected into the 23
Arkansas Home Inspectors Registration Fund; 24
(7) Employ legal counsel to represent it in any proceedings when 25
legal counsel is required; 26
(8) Develop competency exams for home inspectors; 27
(9) Establish a standard of practice and code of ethics for home 28
inspectors; 29
(10) Enter into agreements with other states, territories, 30
districts, or possessions of the United States concerning registr ation or 31
licensing requirements acceptable between Arkansas and the other entities; 32
(11) Maintain working files as it deems necessary; 33
(12) Contract for administrative support services and meet 34
financial obligations of those contracts using moneys from the fund; 35
(13)(A) Develop and implement a means for conducting internet 36 As Engrossed: S3/7/23 H3/27/23 SB354
27 03-27-2023 10:34:15 MLD262
board meetings, which may be observed by the public in real time. 1
(B) Public participation in the meetings may be permitted 2
in accordance with rules developed by the board; 3
(14) Establish and maintain an internet site website devoted to 4
home inspection registration and related subjects; and 5
(15) [Repealed.] 6
(16) Establish educational requirements for registration to 7
begin after July 1, 2004, including the standards and procedures for approval 8
of educational programs if the maximum number of hours required shall not 9
exceed ninety (90) classroom hours. 10
11
SECTION 52. Arkansas Code § 17 -52-307(a), concerning hearings, 12
reviews, and access to records of the Arkansas Home Inspector Registration 13
Board, is amended to read as follows: 14
(a) As part of an investigation or as a condition of renewal, the 15
Arkansas Home Inspector Registration Board State Board of Appraisers, 16
Abstracters, and Home Inspectors may require a home inspe ctor to submit in 17
writing home inspection reports and other documents to be reviewed by the 18
board. 19
20
SECTION 53. Arkansas Code § 17 -52-308(a), concerning complaints and 21
disciplinary procedures of the Arkansas Home Inspector Registration Board, is 22
amended to read as follows: 23
(a) Disciplinary hearings conducted by the Arkansas Home Inspector 24
Registration Board State Board of Appraisers, Abstracters, and Home 25
Inspectors for the purpose of determining whether to levy civil penalties 26
under this subchapter and for the purpose of determining whether to revoke or 27
suspend any registration, license, or certificate issued under this 28
subchapter shall be open public meetings conducted as provided for in the 29
Freedom of Information Act of 1967, § 25 -19-101 et seq., unless otherwise 30
superseded by provisions of this subchapter. 31
32
SECTION 54. Arkansas Code § 17 -52-309(b)(1), concerning Arkansas Home 33
Inspector Registration Board violations of law, civil penalties, injunctions, 34
and venue, is amended to read as follows: 35
(b)(1) Upon application by the Arkansas Home Inspector Registration 36 As Engrossed: S3/7/23 H3/27/23 SB354
28 03-27-2023 10:34:15 MLD262
Board State Board of Appraisers, Abstracters, and Home Inspectors , a court 1
may grant an injunction, restraining order, or other order as may be 2
appropriate to enjoin a person from: 3
(A) Offering to engage or engaging in the performance of 4
any acts or practices for which registration is required by this subchapter 5
after a showing that the acts or practices were performed or offered to be 6
performed without a certificate of registration; or 7
(B) Engaging in any practice or business authorized by a 8
certificate of registration issued under this subchapter upon a showing that 9
the holder presents a substantial probability of serious danger to the 10
health, safety, or welfare of any resident of thi s state or client of the 11
certificate holder. 12
13
SECTION 55. Arkansas Code § 17 -52-310(a), concerning continuing 14
education for home inspectors, is amended to read as follows: 15
(a) The Arkansas Home Inspector Registration Board State Board of 16
Appraisers, Abstracters, and Home Inspectors shall implement requirements for 17
home inspectors to successfully complete continuing education annually as a 18
condition to registration renewal. 19
20
SECTION 56. Arkansas Code § 17 -52-311 is amended to read as follows: 21
17-52-311. Role of Secretary of the Department of Labor and Licensing 22
Custodian of records . 23
(a)(1) The Secretary of the Department of Labor and Licensing 24
Executive Director of the State Board of Appraisers, Abstracters, and Home 25
Inspectors shall be the custodian of permanent, official, home inspector 26
registration files and shall maintain permanent records of all home inspector 27
registration applications received since the enactment of this subchapter. 28
(2) The secretary executive director shall maintain the 29
permanent records of the Arkansas Home Inspector Registration Board State 30
Board of Appraisers, Abstracters, and Home Inspectors . 31
(b) The secretary executive director shall receive and process 32
applications for initial registration and r enewal of registration. 33
34
SECTION 57. Arkansas Code § 17 -52-312(e), concerning the Arkansas Home 35
Inspectors Registration Fund, is amended to read as follows: 36 As Engrossed: S3/7/23 H3/27/23 SB354
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(e) The Arkansas Home Inspector Registration Board State Board of 1
Appraisers, Abstracters, and Home Inspectors will process disbursements of 2
those funds as necessary in the administration of this subchapter. 3
4
SECTION 58. Arkansas Code § 17 -52-313(a)(1) and (2), concerning the 5
disposition of funds from the Arkansas Home Inspector Registration Board , are 6
amended to read as follows: 7
(a)(1) The Secretary Executive Director of the Arkansas Home Inspector 8
Registration Board State Board of Appraisers, Abstracters, and Home 9
Inspectors shall receive, disburse, and account for all income paid to or 10
received by the Arkansas Home Inspector Registration Board State Board of 11
Appraisers, Abstracters, and Home Inspectors . 12
(2) The Secretary Executive Director of the Arkansas Home 13
Inspector Registration Board State Board of Appraisers, Abstracters, and Home 14
Inspectors shall institute a system of books and financial records 15
satisfactory to the Secretary of the Department of Finance and 16
Administration. 17
18
SECTION 59. Arkansas Code § 17 -52-313(a)(4), concerning the 19
disposition of funds from the Arkansas Home Ins pector Registration Board, is 20
amended to read as follows: 21
(4) The Secretary Executive Director of the Arkansas Home 22
Inspector Registration Board State Board of Appraisers, Abstracters, and Home 23
Inspectors shall deposit all funds of the board that he or she receives with 24
the State Treasury within forty -eight (48) hours, excluding holidays and 25
Sundays, after he or she receives the funds. 26
27
SECTION 60. Arkansas Code § 17 -52-315(a), concerning an application 28
for registration as a home inspector, is amended to read as follows: 29
(a) Any person applying for registration or renewal of registration as 30
a home inspector shall submit to the Arkansas Home Inspector Registration 31
Board State Board of Appraisers, Abstracters, and Home Inspectors : 32
(1) An application under oath upon a form to be prescribed by 33
the board; 34
(2) A current certificate of insurance issued by an insurance 35
company licensed or surplus lines approved to do business in this state that 36 As Engrossed: S3/7/23 H3/27/23 SB354
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states that the applicant has procured general liability ins urance in the 1
minimum amount of one hundred thousand dollars ($100,000) and, if applicable, 2
workers' compensation insurance; and 3
(3) The required registration or registration renewal fee with 4
the application. 5
6
SECTION 61. Arkansas Code § 17 -52-316(a)(1), concerning fees and 7
reimbursements for the Arkansas Home Inspector Registration Board, is amended 8
to read as follows: 9
(a)(1) The Arkansas Home Inspector Registration Board State Board of 10
Appraisers, Abstracters, and Home Inspectors may set registration and renewal 11
fees not to exceed three hundred dollars ($300) per year. 12
13
SECTION 62. Arkansas Code § 17 -52-317(a)(1), concerning certificates 14
of registration issued by the Arkansas Home Inspector Registration Board, is 15
amended to read as follows: 16
(a)(1) Certificates of registration shall be issued by the Arkansas 17
Home Inspector Registration Board State Board of Appraisers, Abstracters, and 18
Home Inspectors to an applicant after compliance with the registration or 19
renewal requirements of this subchapter and approval by the board . 20
21
SECTION 63. Arkansas Code § 17 -52-318(b), concerning insurance 22
required of home inspectors, is amended to read as follows: 23
(b) All policies and certificates shall provide that cancellation or 24
renewal of the policy shall not be effective unless and until at least ten 25
(10) days' notice of cancellation or nonrenewal has been received in writing 26
by the Arkansas Home Inspector Registration Board State Board of Appraisers, 27
Abstracters, and Home Inspectors . 28
29
SECTION 64. Arkansas Code § 17-52-319(b), concerning standards of care 30
for home inspectors, is amended to read as follows: 31
(b) All home inspections conducted for compensation in this state 32
shall be conducted according to the standards of practice and code of ethics 33
set forth by the Arkansas Home Inspector Registration Board State Board of 34
Appraisers, Abstracters, and Home Inspectors . 35
36 As Engrossed: S3/7/23 H3/27/23 SB354
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SECTION 65. Arkansas Code § 17 -52-320(b), concerning limitations of 1
damages against home inspectors, is amended to read as follows: 2
(b) Disciplinary action taken against a home inspector by the Arkansas 3
Home Inspector Registration Board State Board of Appraisers, Abstracters, and 4
Home Inspectors shall not in and of itself be the basis for civil or criminal 5
action. 6
7
SECTION 66. Arkansas Code § 19-6-415 is amended to read as follows: 8
19-6-415. Arkansas Abstracters' Board Fund. 9
The Arkansas Abstracters' Board Fund shall consist of those special 10
revenues as specified in § 19 -6-301(93), there to be used for the 11
maintenance, operation, and impro vement of the Arkansas Abstracters' Board 12
State Board of Appraisers, Abstracters, and Home Inspectors . 13
14
SECTION 67. Arkansas Code § 22 -6-601(c)(2)(C), concerning the sale 15
procedure for state agencies, is amended to read as follows: 16
(C) The appraiser shall be licensed and certified by the 17
Arkansas Appraiser Licensing and Certification Board State Board of 18
Appraisers, Abstracters, and Home Inspectors . 19
20
SECTION 68. Arkansas Code § 25 -16-903(5), concerning stipends for 21
state boards, is amended to read a s follows: 22
(5) Arkansas Appraiser Licensing and Certification Board State 23
Board of Appraisers, Abstracters, and Home Inspectors ; 24
25
SECTION 69. Arkansas Code § 25 -43-1102(1), concerning state entities 26
transferred to the Department of Labor and Licensing , is repealed. 27
(1) The Arkansas Abstracters' Board, created under § 17 -11-401; 28
29
SECTION 70. Arkansas Code § 25 -43-1102(2), concerning state entities 30
transferred to the Department of Labor and Licensing, is amended to read as 31
follows: 32
(2) The Arkansas Appraiser Licensing and Certification Board 33
State Board of Appraisers, Abstracters, and Home Inspectors , created under § 34
17-14-201; 35
36 As Engrossed: S3/7/23 H3/27/23 SB354
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SECTION 71. Arkansas Code § 25 -43-1102(4), concerning state entities 1
transferred to the Department of Labor and Licens ing, is repealed. 2
(4) The Arkansas Home Inspector Registration Board , created 3
under § 17-52-304; 4
5
SECTION 72. TEMPORARY LANGUAGE. DO NOT CODIFY. Transition provisions — 6
Appointment of members of the State Board of Appraisers, Abstracters, and 7
Home Inspectors — Terms. 8
(a) As soon as practical after the effective date of this act, the 9
Governor shall appoint all board member positions to the State Board of 10
Appraisers, Abstracters, and Home Inspectors , subject to confirmation by the 11
Senate. 12
(b)(1) The initial terms of the board members shall be staggered as 13
follows: 14
(A) The following six (6) positions shall serve terms 15
expiring April 15, 2024: 16
(i) Two (2) appraiser members; 17
(ii) Two (2) home inspector members; 18
(iii) The financial institution representative; and 19
(iv) The abstracter representative; and 20
(B) The following five (5) positions shall serve terms 21
expiring April 15, 2025: 22
(i) Three (3) appraiser members; 23
(ii) One (1) home inspector member; and 24
(iii) One (1) representative of senior citizens and 25
consumers. 26
(2) The initial terms described in subdivision (b)(1) of this 27
section shall not count against the prohibition under § 17 -14-201(c)(3) of 28
serving no more than two (2) consecutive terms. 29
30
SECTION 73. TEMPORARY LANGUAGE. DO NOT CODIFY. Transition provisions — 31
Board members — Duties. 32
Upon the effective date of this section: 33
(1) The members of the Arkansas Abstracters’ Board and the 34
Arkansas Home Inspector Registration Board are removed; 35
(2) The members of the Arkansas Appraiser Licensing and 36 As Engrossed: S3/7/23 H3/27/23 SB354
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Certification Board shall continue to serve and shall exercise the powers and 1
duties assigned to the Arkansas Appraiser Licensing and Certification Board, 2
the Arkansas Abstracters’ Board, and the Arkansas Home Inspector Registration 3
Board until the State Board of Appraisers, Abstracters, and Home Inspectors 4
is duly appointed; and 5
(3) The staff of the Arkansas Abstracters’ Board and the 6
Arkansas Home Inspect or Registration Board shall report to the Director of 7
the Arkansas Appraiser Licensing and Certification Board. 8
9
SECTION 74. EMERGENCY CLAUSE. 10
(a) It is found and determined by the General Assembly of the State of 11
Arkansas that it is important to the citizens of Arkansas that state 12
government services be provided in an efficient and cost -effective manner; 13
that the consolidation of state boards that perform similar functions and 14
serve similar constituencies is an effective way to achieve both operation al 15
efficiencies and economies of scale; that this act abolishing and 16
transferring the duties of the Arkansas Abstracter’s Board, the Arkansas Home 17
Inspector Registration Board, and the Arkansas Appraiser's Board to the State 18
Board of Appraisers, Abstracter s, and Home Inspectors will increase the 19
effectiveness of the industries regulated by the board and protect the 20
citizens' safety and property; that Section 73 of this act is immediately 21
necessary to obtain cost efficiencies and streamline the provision of 22
government services without delay for the benefit of Arkansas taxpayers to 23
allow services that preserve the health, safety, and property of Arkansas 24
citizens. Therefore, an emergency is declared to exist, and Section 73 of 25
this act being immediately necess ary for the preservation of the public 26
peace, health, and safety shall become effective on: 27
(1) The date of its approval by the Governor; 28
(2) If the bill is neither approved nor vetoed by the Governor, 29
the expiration of the period of time during wh ich the Governor may veto the 30
bill; or 31
(3) If the bill is vetoed by the Governor and the veto is 32
overridden, the date the last house overrides the veto. 33
(b) It is found and determined by the General Assembly of the State of 34
Arkansas that all sections of this bill except for Section 73 are important 35
to the citizens of Arkansas as they will allow state government services to 36 As Engrossed: S3/7/23 H3/27/23 SB354
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be provided in an efficient and cost -effective manner; that this act 1
abolishing and transferring the duties of the Arkansas Abstra cter’s Board, 2
the Arkansas Home Inspector Registration Board, and the Arkansas Appraiser's 3
Board to the State Board of Appraisers, Abstracters, and Home Inspectors 4
should become effective on July 1, 2023, to coincide with the appropriation 5
bills of the Department of Labor and Licensing and ensure that the State 6
Board of Appraisers, Abstracters, and Home Inspectors provides its expanded 7
vital services as the transfer of duties is implemented and does not 8
experience any issues with funding under the transfer of duties. Therefore, 9
an emergency is declared to exist, and this act being necessary for the 10
preservation of the public peace, health, and safety shall become effective 11
on July 1, 2023, except as provided in subsection (a) of this section. 12
13
/s/K. Hammer 14
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APPROVED: 4/11/23 17
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