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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. 37:3396(B), (D), and (F)(2), 3397(B)(1), (3)(introductory2
paragraph) and (d) through (f), (4), and (5), 3398(A), 3401(B), (C)(introductory3
paragraph) and (3), 3408(B), (C)(2), and (E), and 3410(A), to enact R.S.4
37:3392(13), 3397.1, and 3409(E)(4), and to repeal R.S. 37:3397(B)(6), (C), and (D),5
3398(D), and 3401(D), relative to the Louisiana Real Estate Appraisers Law; to6
provide for board terms; to provide relative to license qualifications; to provide7
relative to criteria for license classifications and continuing education requirements;8
to provide relative to examinations; to provide relative to nonresident licenses; to9
provide relative to disciplinary proceedings; to provide for standards for the10
development and communication of real estate appraisers; and to provide for related11
matters.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 37:3396(B), (D), and (F)(2), 3397(B)(1), (3)(introductory paragraph)14
and (d) through (f), (4), and (5), 3398(A), 3401(B), (C)(introductory paragraph) and (3),15
3408(B), (C)(2), and (E), and 3410(A) are hereby amended and reenacted and R.S.16
37:3392(13), 3397.1, and 3409(E)(4) are hereby enacted to read as follows: 17
§3392. Definitions18
As used in this Chapter, the following words have the meaning ascribed to19
them in this Section unless the context clearly indicates otherwise:20
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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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§3396. Applications5
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B. Appropriate fees, as set forth in R.S. 37:3407, must shall accompany all7
applications for examination, experience review, and license renewal certification.8
* * *9
D.(1) Licenses shall be granted only to persons who have attained the age10
of eighteen years, who hold a high school diploma or its equivalent, and who bear11
a good reputation for honesty, trustworthiness, integrity, and competence to perform12
real estate appraisals and only after satisfactory proof of such qualifications has been13
presented to the board. satisfied the minimum education, examination, and14
experience requirements mandated by the Appraiser Qualifications Board (AQB) of15
the Appraisal Foundation and published in the most current version of the Real16
Property Appraiser Qualification Criteria, including any subsequent amendments and17
regulations issued pursuant thereto.18
(2) All applicants for a real estate appraiser license shall undergo a19
background screening as mandated by the Appraiser Qualifications Board (AQB) of20
the Appraisal Foundation and prescribed by the board.21
(2)(3) When an applicant has been convicted of forgery, embezzlement,22
obtaining money under false pretense, larceny, extortion, conspiracy to defraud, or23
theft, or has been convicted of a felony or a crime of moral turpitude in any court of24
competent jurisdiction, such untrustworthiness of the applicant or the conviction25
itself may be sufficient grounds for refusal to issue a license.26 HLS 14RS-1445 REENGROSSED
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(3) (4) When an applicant has made a false statement of material fact on his1
application, such false statement may in itself be sufficient grounds for refusal to2
issue a license.3
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F.5
* * *6
(2) An applicant whose license, or its equivalent, has been revoked shall7
meet all requirements of an initial applicant and shall present evidence of completion8
of fifteen hours of continuing education for each renewal period, or portion thereof,9
following the date on which the license, or its equivalent, was revoked.10
§3397. License classifications; criteria11
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B.(1)(a) Applicants for a real estate appraiser trainee license shall be subject13
to the following training and direct supervision by a certified appraiser who meets14
all of the following qualifications:15
(i) Has been licensed as a certified real estate appraiser for at least three16
years prior to becoming a supervising appraiser.17
(ii) Is in good standing as a certified residential or certified general real18
estate appraiser.19
(a) The Competency Provision of the Uniform Standards of Professional20
Appraisal Practice (USPAP).21
(b) Training and direct supervision by an appraiser who is licensed and in22
good standing as a residential real estate appraiser or a general real estate appraiser.23
Both the trainee applicant and the supervising appraiser shall complete a24
course that complies, at minimum, with the specifications for course content25
established by the Appraiser Qualifications Board (AQB) of the Appraisal26
Foundation. The course shall be oriented toward the requirements and27
responsibilities of supervising appraisers and expectations for trainee appraisers.28
The course shall be completed by the trainee appraiser prior to obtaining a trainee29 HLS 14RS-1445 REENGROSSED
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appraiser license and by the supervising appraiser prior to supervising a trainee1
appraiser. The supervising appraiser shall not have been subject to any disciplinary2
action within the last three years that affects the supervisor's legal eligibility to3
engage in appraiser practice. The appraiser trainee is permitted to have more than4
one supervising appraiser. The scope of work for the real estate appraiser trainee is5
limited to the appraisal of those properties that the supervising real estate appraiser6
is licensed to appraise.7
(c) Completion of seventy-five classroom hours of qualifying education, or8
its equivalent, in core education subjects that include thirty hours of basic appraisal9
principles, thirty hours of basic appraisal procedures, and the fifteen-hour National10
Uniform Standards of Professional Appraisal Practice course, or its equivalent, and11
passage of a final examination in each course. These hours may be credited toward12
the educational requirement for all appraiser license classifications.13
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(3) The real estate appraiser trainee shall maintain a separate appraisal log15
for each supervising licensed appraiser that includes, at a minimum, the following16
information for each appraisal:17
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(d) Description of work performed by the appraiser trainee and supervising19
appraiser.20
(e) Number of actual work hours.21
(f) Name, signature, and state license number of the supervising licensed22
appraiser.23
(4) All As a prerequisite to license renewal, all appraiser trainees who have24
been licensed in excess of two years shall be required to obtain continuing education25
that is the equivalent to fifteen of fourteen classroom hours of instruction continuing26
education per calendar for each year.27
(5) The real estate appraiser trainee shall be entitled to obtain copies of28
appraisal reports prepared by the trainee. The supervising appraiser shall keep29 HLS 14RS-1445 REENGROSSED
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copies of the trainee appraisal reports for a period of at least five years or at least two1
years after final disposition of any judicial proceeding in which testimony is given,2
whichever period expires last.3
§3397.1. Certified residential and certified general appraisers; continuing education4
As a prerequisite to license renewal, all certified residential and certified5
general appraisers shall complete the equivalent of fourteen hours of continuing6
education instruction per calendar year.7
§3398. Examination8
A. A license as a real estate appraiser shall not be issued in any class other9
than real estate appraiser trainee unless the applicant demonstrated through a written10
examination process that he or she possesses the following: has passed a qualifying11
examination approved by the Appraiser Qualifications Board (AQB) of the Appraisal12
Foundation for such license.13
(1) Knowledge of technical terms commonly used in or related to real estate14
appraising, appraisal report writing, and economic concepts applicable to real estate15
appropriate to the type of license sought.16
(2) Basic understanding of real estate law.17
(3) Adequate knowledge of theories of depreciation, cost estimating,18
methods of capitalization, and the mathematics of real estate appraisal.19
(4) Understanding of the principles of land economics, real estate appraisal20
processes, and of problems likely to be encountered in the gathering, interpreting,21
and processing of data in carrying out appraisal disciplines.22
(5) Understanding of the standards for the development and communication23
of real estate appraisals as provided in this Chapter.24
(6) Understanding of the types of misconduct for which disciplinary25
proceedings may be initiated against a state licensed real estate appraiser, as set forth26
in this Chapter.27
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§3401. Nonresident license; temporary registration; reciprocity1
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B. A nonresident An applicant who has complied with the provisions of3
Subsection A of this Section may apply for a license as a real estate appraiser in this4
state by conforming to all of the provisions of this Chapter relating to real estate5
appraisers. in accordance with Subsection (b) of Section 1122 of the Financial6
Institutions Reform, Recovery, and Enforcement Act of 1989.7
C. A nonresident real estate appraiser certified or licensed in another8
jurisdiction may make appraisals on a temporary basis only if each all of the9
following conditions are met:10
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(3) The nonresident appraiser has registered with the board on the prescribed12
form and has provided the board with each of the following:13
(a) A license or certification history from the jurisdiction in which he is14
currently certified or licensed verifyi ng that his certification or license is valid and15
in good standing.16
(c) Payment payment of the temporary registration fee specified in R.S.17
37:3407(A)(7).18
(d) Written recognition of the fact that this registration is of a temporary19
nature.20
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§3408. Continuing education requirements22
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B. The basic continuing education requirements for renewal of a license shall24
be the completion of not less than thirty classroom hours twenty-eight hours, or its25
equivalent, in courses which that have received the approval of the board. As part26
of this requirement, the applicant shall complete a minimum of seven classroom27
hours of instruction covering the Uniform Standards of Professional Appraisal28
Practice every renewal period.29 HLS 14RS-1445 REENGROSSED
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C. In lieu of meeting the requirements of Subsection B of this Section, an1
applicant for renewal may present evidence of the following:2
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(2)(a) Participation, other than as a student, in educational processes and4
programs in real property appraisal theory, practices, or techniques, including but not5
limited to teaching, program development, and preparation of textbooks,6
monographs, articles, and other instructional materials, all to be approved by the7
board.8
(b) No more than half of the continuing education credit shall be granted for9
participation pursuant to this Paragraph.10
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E. In making recommendations pursuant to Paragraph D(1) (D)(1) of this12
Section, the board shall give favorable consideration to courses of instruction,13
seminars, and other real property appraisal education courses or programs previously14
or hereafter developed by or under the auspices of professional appraisal15
organizations and utilized by those associations for purposes of designation,16
certification, or recertification of the members of the association.17
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§3409. Disciplinary proceedings19
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E. It shall be the duty of each licensed real estate appraiser to notify the21
board within ten days by registered or certified mail or by hand delivery of the22
following actions:23
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(4) Any sanction imposed on the appraiser by another jurisdiction.25
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§3410. Standards for the development and communication of real estate appraisals27
A. A licensed real estate appraiser shall comply with generally accepted28
standards of professional practice in the development and communication of29 HLS 14RS-1445 REENGROSSED
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appraisals of real estate located in this state and with generally accepted ethical rules1
of conduct as contained in the "Uniform Standards of Professional Appraisal2
Practice", or its successor, as approved by the Appraisal Subcommittee of the3
Federal Financial Institutions Examination Council, Appraisal Standards Board of4
the Appraisal Foundation or its successor.5
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Section 2. R.S. 37:3397(B)(6), (C), and (D), 3398(D), and 3401(D) are hereby7
repealed in their entirety.8
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 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.
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 Appraiser Qualifications Board (AQB) of the Appraisal
Foundation and published in the most current version of the Real Property Appraiser
Qualification Criteria, including 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 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. HLS 14RS-1445 REENGROSSED
HB NO. 1018
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are additions.
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 demonstrates 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 AQB of the Appraisal Foundation for such license.
Present law provides requirements for continuing education.
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 Appraisal Standards Board of the Appraisal Foundation or its
successor.
(Amends R.S. 37:3396(B), (D), and (F)(2), 3397(B)(1), (3)(intro. para.), and (d)-(f), (4), and
(5), 3398(A), 3401(B), (C)(intro. para.) and (3), 3408(B), (C)(2), (E), and 3410(A); 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)) HLS 14RS-1445 REENGROSSED
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Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Commerce to the original
bill.
1. Removed proposed changes to allow members of the La. Real Estate Appraisers
Law to serve three consecutive terms.
2. Made technical corrections and changes to clarify language.
House Floor Amendments to the engrossed bill.
1. Made technical amendments.