HLS 12RS-1271 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 823
BY REPRESENTATIVE GREENE
REAL ESTATE/APPRAISERS: Provides with respect to licensure requirements for
appraisal management companies
AN ACT1
To amend and reenact R.S. 37:3415.3(B)(10) and (11) and to enact R.S. 37:3415.3(C),2
relative to appraisal management companies; to require a surety bond as a condition3
for obtaining and maintaining an appraisal management company license; to provide4
for the form of the bond; to provide for the amount of the bond; to provide for claims5
against the bond; to authorize a deposit of cash or security in lieu of the bond; to6
require restoration of the face amount of the bond; to provide for applicability; to7
provide for an effective date; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 37:3415.3(B)(10) and (11) are hereby amended and reenacted and10
R.S. 37:3415.3(C) is hereby enacted to read as follows: 11
ยง3415.3. License required; bond required12
* * *13
B. The license required by Subsection A of this Section shall, at a minimum,14
include the following information:15
* * *16
(10) Proof that the entity has obtained and maintains a surety bond that meets17
the requirements of Subsection C of this Section.18 HLS 12RS-1271 ORIGINAL
HB NO. 823
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are additions.
(11) An irrevocable Uniform Consent to Service of Process, pursuant to this1
Chapter.2
(11) Any other information required by the board.3
C.(1) Every applicant for a license or the renewal of a license shall obtain4
and maintain a surety bond in the amount of twenty thousand dollars. The surety5
bond shall:6
(a) Be in the form prescribed by the board pursuant to regulations duly7
promulgated by it.8
(b) Accrue to the state for the benefit of a claimant against the registrant to9
secure the faithful performance of the licensee obligations under this Chapter.10
(2) The aggregate liability of the surety shall not exceed the principal sum11
of the bond.12
(3) A party having a claim against the licensee may bring suit directly on the13
surety bond, or the board may bring suit on behalf of the party having a claim against14
the licensee.15
(4) Consumer claims shall be given priority in recovering from the bond.16
(5) A deposit of cash or security may be accepted in lieu of the surety bond.17
(6) If a claim reduces the face amount of the bond, the bond shall be18
annually restored upon renewal of the licensee's registration.19
Section 2. The provisions of R.S. 37:3415.3.(B)(10) and (C) shall apply to any new20
or renewed license after December 31, 2011, and only upon promulgation of rules by the21
board concerning the provisions of R.S. 37:3415.3.(B)(10) and (C).22
Section 3. This Act shall become effective upon signature by the governor or, if not23
signed by the governor, upon expiration of the time for bills to become law without signature24
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If25
vetoed by the governor and subsequently approved by the legislature, this Act shall become26
effective on the day following such approval.27 HLS 12RS-1271 ORIGINAL
HB NO. 823
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are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Greene HB No. 823
Abstract: Requires a surety bond as a condition for obtaining and maintaining an appraisal
management company license.
Present law prohibits an entity from directly or indirectly engaging or attempting to engage
in business as an appraisal management company, directly or indirectly engaging or
attempting to perform appraisal management services, or advertising or holding itself out as
engaging in or conducting business as an appraisal management company without first
obtaining a license issued by the La. Real Estate Appraisers Board.
Present law requires the license to, at a minimum, include the following information:
(1)The name of the entity seeking a license.
(2)The business address of the entity seeking a license.
(3)The phone contact information of the entity seeking a license.
(4)If the entity is not a corporation that is domiciled in this state, the name and contact
information for the company's agent for service of process in this state.
(5)The name, address, and contact information of any individual, corporation,
partnership, or other business entity that has any ownership interest in the appraisal
management company.
(6)The name, address, and contact information for a controlling person.
(7)Certification that the entity has a system and process in place to verify that a person
being added to the appraiser panel of the appraisal management company holds an
appraisal license in good standing.
(8)Certification that the entity has a system in place to review the work on a periodic
basis of all independent appraisers that are performing real estate appraisal services
for the appraisal management company to ensure that the real estate appraisal
services are being conducted in accordance with Uniform Standards of Professional
Appraisal Practice.
(9)Certification that the entity maintains a detailed record for five years of each real
estate appraisal service request that it receives and an itemized list of all fees
contracted with each appraiser who performs real estate appraisal services for the
appraisal management company.
(10)An irrevocable Uniform Consent to Service of Process.
(11) Any other information required by the board.
Proposed law retains present law but repeals the board's authority to request other
information and adds a requirement of proof that the entity has obtained and maintains a
surety bond that meets the requirements of proposed law. HLS 12RS-1271 ORIGINAL
HB NO. 823
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are additions.
Proposed law requires every applicant for a license or the renewal of a license to obtain and
maintain a surety bond in the amount of $20,000.
Proposed law requires the surety bond to:
(1)Be in the form prescribed by the board pursuant to regulations duly promulgated by
it.
(2)Accrue to the state for the benefit of a claimant against the registrant to secure the
faithful performance of the licensee obligations under proposed law.
Proposed law provides that the aggregate liability of the surety shall not exceed the principal
sum of the bond.
Proposed law authorizes a party having a claim against the licensee to bring suit directly on
the surety bond, or the board to bring suit on behalf of the party having a claim against the
licensee.
Proposed law provides that consumer claims shall be given priority in recovering from the
bond.
Proposed law provides that a deposit of cash or security may be accepted in lieu of the surety
bond.
Proposed law requires that, if a claim reduces the face amount of the bond, the bond shall
be annually restored upon renewal of the licensee's registration.
Proposed law provides that the surety bond requirement shall apply to any new or renewed
license after Dec. 31, 2011, and only upon promulgation of rules by the board concerning
proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 37:3415.3(B)(10) and (11); Adds R.S. 37:3415.3(C))