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Regular Session, 2014
HOUSE BILL NO. 1018
BY REPRESENTATIVE HOFFMANN
REAL ESTATE: Provides relative to the Louisiana Real Estate Appraisers Law
AN ACT1
To amend and reenact R.S. 37:3394(D), 3396(B), (D), and (F)(2), 3397(B)(1),2
(3)(introductory paragraph) and (d) through (f),(4), and (5), 3398(A), 3401(B) and3
(C)(3), 3408(B), (C)(2), and (E), and 3410, and to enact R.S. 37:3392(13), 3397.1,4
and 3409(E)(4), and to repeal R.S. 37:3397(B)(6), (C), and (D), 3398(D), and5
3401(D), relative to the Louisiana Real Estate Appraisers Law; to provide for board6
terms; to apply for license qualifications; to provide relative to criteria for license7
classifications and continuing education requirements; to provide relative to8
examinations; to provide relative to nonresident licenses; to provide relative to9
disciplinary proceedings; to provide for standards for the development and10
communication of real estate appraisers; and to provide for related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 37:3394(D), 3396(B), (D), and (F)(2), 3397(B)(1), (3)(introductory13
paragraph) and (d) through (f),(4), and (5), 3398(A), 3401(B) and (C)(3), 3408(B), (C)(2)14
and 3410 are hereby amended and reenacted and R.S. 37:3392(13), 3397.1, and 3409(E)(4)15
are hereby enacted to read as follows: 16
§3392. Definitions17
As used in this Chapter, the following words have the meaning ascribed to18
them in this Section unless the context clearly indicates otherwise:19
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(13) "In good standing" means the status of a licensee who has complied1
with all explicit license obligations thereby having unabated authority to conduct2
license activities.3
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§3394. Louisiana Real Estate Appraisers Board5
* * *6
D. All members shall be appointed for three-year terms. All terms shall7
commence thirty days after the appointment, and all members shall serve until their8
successors have been appointed and qualified. Vacancies occurring in the9
membership of the board for any reason shall be filled by appointment by the10
governor for the unexpired term. Upon expiration of their terms, members of the11
board shall continue to hold office until the appointment and qualification of their12
successors. No person shall be appointed for more than two three consecutive terms.13
The appointing authority may remove a member for cause.14
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§3396. Applications16
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B. Appropriate fees, as set forth in R.S. 37:3407, must shall accompany all18
applications for examination, experience review, and license renewal certification.19
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D.(1) Licenses shall be granted only to persons who have attained the age21
of eighteen years, who hold a high school diploma or its equivalent, and who bear22
a good reputation for honesty, trustworthiness, integrity, and competence to perform23
real estate appraisals and only after satisfactory proof of such qualifications has been24
presented to the board. satisfied the minimum education, examination, and25
experience requirements mandated by the Appraisal Qualifications Board (AQB) of26
the Appraisal Foundation and published in the most current version of the Real27
Property Appraiser Qualification Criteria, or any subsuqent amendments and28
regulations issued pursuant thereto.29 HLS 14RS-1445 ORIGINAL
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(2) All applicants for a real estate appraiser license shall undergo a1
background screening, as mandated by the Appraiser Qualifications Board (AQB)2
of the Appraisal Foundation and prescribed by the board.3
(2)(3) When an applicant has been convicted of forgery, embezzlement,4
obtaining money under false pretense, larceny, extortion, conspiracy to defraud, or5
theft, or has been convicted of a felony or a crime of moral turpitude in any court of6
competent jurisdiction, such untrustworthiness of the applicant or the conviction7
itself may be sufficient grounds for refusal to issue a license.8
(3) (4) When an applicant has made a false statement of material fact on his9
application, such false statement may in itself be sufficient grounds for refusal to10
issue a license.11
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F.13
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(2) An applicant whose license, or its equivalent, has been revoked shall15
meet all requirements of an initial applicant and shall present evidence of completion16
of fifteen hours of continuing education for each renewal period, or portion thereof,17
following the date on which the license, or its equivalent, was revoked.18
§3397. License classifications; criteria19
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B.(1)(a) Applicants for a real estate appraiser trainee license shall be subject21
to the following: training and direct supervision by a certified appraiser who has22
been licensed for at least three years prior to becoming a supervising appraiser and23
is in good standing as a certified residential or certified general real estate appraiser.24
(a) The Competency Provision of the Uniform Standards of Professional25
Appraisal Practice (USPAP).26
(b) Training and direct supervision by an appraiser who is licensed and in27
good standing as a residential real estate appraiser or a general real estate appraiser.28 HLS 14RS-1445 ORIGINAL
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Both the trainee applicant and the supervising appraiser shall be required to1
complete a course that complies, at minimum, with the specifications for course2
content established by the Appraiser Qualifications Board (AQB) of the Appraisal3
Foundation. The course shall be oriented toward the requirements and4
responsibilities of supervising appraisers and expectations for trainee appraisers.5
The course shall be completed by the trainee appraiser prior to obtaining a trainee6
appraiser license and by the supervising appraiser prior to supervising a trainee7
appraiser. The supervising appraiser shall not have been subject to any disciplinary8
action within the last three years that affects the supervisor's legal eligibility to9
engage in appraiser practice. The appraiser trainee is permitted to have more than10
one supervising appraiser. The scope of work for the real estate appraiser trainee is11
limited to the appraisal of those properties that the supervising real estate appraiser12
is licensed to appraise.13
(c) Completion of seventy-five classroom hours of qualifying education, or14
its equivalent, in core education subjects that include thirty hours of basic appraisal15
principles, thirty hours of basic appraisal procedures, and the fifteen-hour National16
Uniform Standards of Professional Appraisal Practice course, or its equivalent, and17
passage of a final examination in each course. These hours may be credited toward18
the educational requirement for all appraiser license classifications.19
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(3) The real estate appraiser trainee shall maintain a separate appraisal log21
for each supervising licensed appraiser that includes, at a minimum, the following22
information for each appraisal:23
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(d) Description of work performed by the appraiser trainee and supervisor25
appraiser.26
(e) Number of actual work hours.27
(f) Name, signature, and state license number of the supervising licensed28
appraiser.29 HLS 14RS-1445 ORIGINAL
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(4) All As a prerequisite to license renewal, all appraiser trainees who have1
been licensed in excess of two years shall be required to obtain continuing education2
that is the equivalent to fifteen of fourteen classroom hours of instruction continuing3
education per calendar for each year.4
(5) The real estate appraiser trainee shall be entitled to obtain copies of5
appraisal reports prepared by the trainee. The supervising appraiser shall keep6
copies of the trainee appraisal reports for a period of at least five years or at least two7
years after final disposition of any judicial proceeding in which testimony is given,8
whichever period expires last.9
§3397.1. Certified residential and certified general appraisers; continuing education10
As a prerequisite to license renewal, all certified residential and certified11
general appraisers shall be required to complete the equivalent of fourteen hours of12
continuing education instruction per calendar year.13
§3398. Examination14
A. A license as a real estate appraiser shall not be issued in any class other15
than real estate appraiser trainee unless the applicant demonstrated through a written16
examination process that he or she possesses the following: has passed a qualifying17
examination approved by the Appraser Qualifications Board (AQB) of the Appraisal18
Foundation for such license.19
(1) Knowledge of technical terms commonly used in or related to real estate20
appraising, appraisal report writing, and economic concepts applicable to real estate21
appropriate to the type of license sought.22
(2) Basic understanding of real estate law.23
(3) Adequate knowledge of theories of depreciation, cost estimating,24
methods of capitalization, and the mathematics of real estate appraisal.25
(4) Understanding of the principles of land economics, real estate appraisal26
processes, and of problems likely to be encountered in the gathering, interpreting,27
and processing of data in carrying out appraisal disciplines.28 HLS 14RS-1445 ORIGINAL
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(5) Understanding of the standards for the development and communication1
of real estate appraisals as provided in this Chapter.2
(6) Understanding of the types of misconduct for which disciplinary3
proceedings may be initiated against a state licensed real estate appraiser, as set forth4
in this Chapter.5
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§3401. Nonresident license; temporary registration; reciprocity7
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B. A nonresident An applicant who has complied with the provisions of9
Subsection A of this Section may apply for a license as a real estate appraiser in this10
state by conforming to all of the provisions of this Chapter relating to real estate11
appraisers. in accordance with Subsection (B) of Section 1122 of the Financial12
Institutions Reform, Recovery, and Enforcement Act of 1989.13
C. A nonresident real estate appraiser certified or licensed in another14
jurisdiction may make appraisals on a temporary basis only if each all of the15
following conditions are met:16
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(3) The nonresident appraiser has registered with the board on the prescribed18
form and has provided the board with each of the following:19
(a) A license or certification history from the jurisdiction in which he is20
currently certified or licensed verifying that his certification or license is valid and21
in good standing.22
(b) Repealed by Acts 2003, No. 341, §3.23
(c) Payment payment of the temporary registration fee specified in R.S.24
37:3407(A)(7).25
(d) Written recognition of the fact that this registration is of a temporary26
nature.27
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§3408. Continuing education requirements1
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B. The basic continuing education requirements for renewal of a license shall3
be the completion of not less than thirty classroom hours twenty-eight hours, or its4
equivalent, in courses which that have received the approval of the board. As part5
of this requirement, the applicant shall complete a minimum of seven classroom6
hours of instruction covering the Uniform Standards of Professional Appraisal7
Practice every renewal period.8
C. In lieu of meeting the requirements of Subsection B of this Section, an9
applicant for renewal may present evidence of the following:10
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(2)(a) Participation, other than as a student, in educational processes and12
programs in real property appraisal theory, practices, or techniques, including but not13
limited to teaching, program development, and preparation of textbooks,14
monographs, articles, and other instructional materials, all to be approved by the15
board.16
(b) No more than half of the continuing education credit shall be granted for17
participation pursuant to this Paragraph.18
* * *19
E. In making recommendations pursuant to Paragraph D(1) of this Section,20
the board shall give favorable consideration to courses of instruction, seminars, and21
other real property appraisal education courses or programs previously or hereafter22
developed by or under the auspices of professional appraisal organizations and23
utilized by those associations for purposes of designation, certification, or24
recertification of the members of the association.25
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§3409. Disciplinary proceedings27
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E. It shall be the duty of each licensed real estate appraiser to notify the1
board within ten days by registered or certified mail or by hand delivery of the2
following actions:3
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(4) Any sanction imposed on the appraiser by another jurisdiction.5
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§3410. Standards for the development and communication of real estate appraisals7
A. A licensed real estate appraiser shall comply with generally accepted8
standards of professional practice in the development and communication of9
appraisals of real estate located in this state and with generally accepted ethical rules10
of conduct as contained in the "Uniform Standards of Professional Appraisal11
Practice", or its successor, as approved by the Appraisal Subcommittee of the12
Federal Financial Institutions Examination Council, Standards Board of the13
Appraisal Foundation or its successor.14
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Section 2. R.S. 37:3397(B)(6), (C), and (D), 3398(D), and 3401(D) are hereby16
repealed.17
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)]
Hoffmann HB No. 1018
Abstract: Amends the La. Real Estate Appraisers Law.
Present law provides that no member of the La. Real Estate Appraisers Board shall be
appointed for more than 2 consecutive terms.
Proposed law provides that no member of the La. Real Estate Appraisers Board shall be
appointed for more than 3 consecutive terms.
Present law provides that appraiser licenses shall be granted only to persons who have
attained the age of 18 years, who hold a high school diploma or its equivalent, and who bear
a good reputation for honesty, trustworthiness, integrity, and competence to perform real
estate appraisals and only after satisfactory proof of such qualifications has been presented
to the board. HLS 14RS-1445 ORIGINAL
HB NO. 1018
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are additions.
Proposed law repeals provisions of present law and provides that appraiser licenses shall be
granted to persons who satisfied the minimum education, examination, and experience
requirements mandated by the Appraisal Qualifications Board (AQB) of the Appraisal
Foundation and published in the most current version of the Real Property Appraiser
Qualification Criteria, or any subsequent amendments and regulations issued pursuant
thereto.
Proposed law provides that all applicants for a real estate appraiser license shall undergo a
background screening, as mandated by the Appraiser Qualifications Board (AQB) of the
Appraisal Foundation and prescribed by the board.
Present law provides that a licensee whose license, or its equivalent, has been revoked meet
all requirements of an initial applicant and shall present evidence of completion of 15 hours
of continuing education for each renewal period, or portion thereof, following the date on
which the license, or its equivalent, was revoked.
Proposed law provides an applicant whose license has been revoked shall meet all
requirements of an initial applicant and shall present evidence of completion of continuing
education for each renewal period, or portion thereof, following the date on which the
license was revoked.
Present law provides that applicants for a real estate appraiser trainee license, a certified
residential real estate appraiser license, and a general real estate appraiser license shall be
subject to certain standards, training, completion of qualifying education hours, and must
undertake certain duties.
Proposed law makes changes to requirements in present law.
Present law provides that a license as a real estate appraiser shall not be issued in any class
other than real estate appraiser trainee unless the applicant demonstrated through a written
examination process that he or she possesses the following:
(1)Knowledge of technical terms commonly used in or related to real estate appraising,
appraisal report writing, and economic concepts applicable to real estate appropriate
to the type of license sought.
(2)Basic understanding of real estate law.
(3)Adequate knowledge of theories of depreciation, cost estimating, methods of
capitalization, and the mathematics of real estate appraisal.
(4)Understanding of the principles of land economics, real estate appraisal processes,
and of problems likely to be encountered in the gathering, interpreting, and
processing of data in carrying out appraisal disciplines.
(5)Understanding of the standards for the development and communication of real
estate appraisals as provided in this Chapter.
(6)Understanding of the types of misconduct for which disciplinary proceedings may
be initiated against a state licensed real estate appraiser, as set forth in this Chapter.
Proposed law provides that a license as a real estate appraiser shall not be issued in any class
other than real estate appraiser trainee unless the applicant has passed a qualifying
examination approved by the Appraiser Qualifications Board (AQB) of the Appraisal
Foundation for such license.
Present law provides requirements for continuing education. HLS 14RS-1445 ORIGINAL
HB NO. 1018
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are additions.
Proposed law makes changes to requirements for continuing education.
Proposed law provides that it is the duty of each licensed real estate appraiser to notify the
board within 10 days by registered or certified mail or by hand delivery of any sanction
imposed on the appraiser by another jurisdiction.
Present law provides that a licensed real estate appraiser shall comply with generally
accepted standards of professional practice in the development and communication of
appraisals of real estate located in this state and with generally accepted ethical rules of
conduct as contained in the "Uniform Standards of Professional Appraisal Practice", or its
successor, as approved by the Appraisal Subcommittee of the Federal Financial Institutions
Examination Council, or its successor.
Proposed law provides that a licensed real estate appraiser shall comply with generally
accepted standards of professional practice in the development and communication of
appraisals of real estate located in this state and with generally accepted ethical rules of
conduct as contained in the "Uniform Standards of Professional Appraisal Practice", or its
successor, as approved by the Standards Board of the Appraisal Foundation or its successor.
(Amends R.S. 37:3394(D), 3396(B), (D), and (F)(2), 3397(B)(1), (3)(intro. para.) and (d)-(f),
(4), and (5), 3398(A), 3401(B) and (C)(3), 3408(B), (C)(2) and (E), and 3410; Adds R.S.
37:3392(13), 3397.1, and 3409(E)(4); Repeals R.S. 37:3397(B)(6), (C), and (D), 3398(D),
and 3401(D))