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ACT No. 213
Regular Session, 2014
HOUSE BILL NO. 1018
BY REPRESENTATIVE HOFFMANN
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
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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
(3) (4) When an applicant has made a false statement of material fact on his27
application, such false statement may in itself be sufficient grounds for refusal to28
issue a license.29
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F.1
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(2) An applicant whose license, or its equivalent, has been revoked shall3
meet all requirements of an initial applicant and shall present evidence of completion4
of fifteen hours of continuing education for each renewal period, or portion thereof,5
following the date on which the license, or its equivalent, was revoked.6
§3397. License classifications; criteria7
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B.(1)(a) Applicants for a real estate appraiser trainee license shall be subject9
to the following training and direct supervision by a certified appraiser who meets10
all of the following qualifications:11
(i) Has been licensed as a certified real estate appraiser for at least three12
years prior to becoming a supervising appraiser.13
(ii) Is in good standing as a certified residential or certified general real14
estate appraiser.15
(a) The Competency Provision of the Uniform Standards of Professional16
Appraisal Practice (USPAP).17
(b) Training and direct supervision by an appraiser who is licensed and in18
good standing as a residential real estate appraiser or a general real estate appraiser.19
Both the trainee applicant and the supervising appraiser shall complete a20
course that complies, at minimum, with the specifications for course content21
established by the Appraiser Qualifications Board (AQB) of the Appraisal22
Foundation. The course shall be oriented toward the requirements and23
responsibilities of supervising appraisers and expectations for trainee appraisers.24
The course shall be completed by the trainee appraiser prior to obtaining a trainee25
appraiser license and by the supervising appraiser prior to supervising a trainee26
appraiser. The supervising appraiser shall not have been subject to any disciplinary27
action within the last three years that affects the supervisor's legal eligibility to28
engage in appraiser practice. The appraiser trainee is permitted to have more than29
one supervising appraiser. The scope of work for the real estate appraiser trainee is30 ENROLLEDHB NO. 1018
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limited to the appraisal of those properties that the supervising real estate appraiser1
is licensed to appraise.2
(c) Completion of seventy-five classroom hours of qualifying education, or3
its equivalent, in core education subjects that include thirty hours of basic appraisal4
principles, thirty hours of basic appraisal procedures, and the fifteen-hour National5
Uniform Standards of Professional Appraisal Practice course, or its equivalent, and6
passage of a final examination in each course. These hours may be credited toward7
the educational requirement for all appraiser license classifications.8
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(3) The real estate appraiser trainee shall maintain a separate appraisal log10
for each supervising licensed appraiser that includes, at a minimum, the following11
information for each appraisal:12
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(d) Description of work performed by the appraiser trainee and supervising14
appraiser.15
(e) Number of actual work hours.16
(f) Name, signature, and state license number of the supervising licensed17
appraiser.18
(4) All As a prerequisite to license renewal, all appraiser trainees who have19
been licensed in excess of two years shall be required to obtain continuing education20
that is the equivalent to fifteen of fourteen classroom hours of instruction continuing21
education per calendar for each year.22
(5) The real estate appraiser trainee shall be entitled to obtain copies of23
appraisal reports prepared by the trainee. The supervising appraiser shall keep24
copies of the trainee appraisal reports for a period of at least five years or at least two25
years after final disposition of any judicial proceeding in which testimony is given,26
whichever period expires last.27 ENROLLEDHB NO. 1018
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§3397.1. Certified residential and certified general appraisers; continuing education1
As a prerequisite to license renewal, all certified residential and certified2
general appraisers shall complete the equivalent of fourteen hours of continuing3
education instruction per calendar year.4
§3398. Examination5
A. A license as a real estate appraiser shall not be issued in any class other6
than real estate appraiser trainee unless the applicant demonstrated through a written7
examination process that he or she possesses the following: has passed a qualifying8
examination approved by the Appraiser Qualifications Board (AQB) of the Appraisal9
Foundation for such license.10
(1) Knowledge of technical terms commonly used in or related to real estate11
appraising, appraisal report writing, and economic concepts applicable to real estate12
appropriate to the type of license sought.13
(2) Basic understanding of real estate law.14
(3) Adequate knowledge of theories of depreciation, cost estimating,15
methods of capitalization, and the mathematics of real estate appraisal.16
(4) Understanding of the principles of land economics, real estate appraisal17
processes, and of problems likely to be encountered in the gathering, interpreting,18
and processing of data in carrying out appraisal disciplines.19
(5) Understanding of the standards for the development and communication20
of real estate appraisals as provided in this Chapter.21
(6) Understanding of the types of misconduct for which disciplinary22
proceedings may be initiated against a state licensed real estate appraiser, as set forth23
in this Chapter.24
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§3401. Nonresident license; temporary registration; reciprocity26
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B. A nonresident An applicant who has complied with the provisions of28
Subsection A of this Section may apply for a license as a real estate appraiser in this29
state by conforming to all of the provisions of this Chapter relating to real estate30 ENROLLEDHB NO. 1018
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appraisers. in accordance with Subsection (b) of Section 1122 of the Financial1
Institutions Reform, Recovery, and Enforcement Act of 1989.2
C. A nonresident real estate appraiser certified or licensed in another3
jurisdiction may make appraisals on a temporary basis only if each all of the4
following conditions are met:5
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(3) The nonresident appraiser has registered with the board on the prescribed7
form and has provided the board with each of the following:8
(a) A license or certification history from the jurisdiction in which he is9
currently certified or licensed verifying that his certification or license is valid and10
in good standing.11
(c) Payment payment of the temporary registration fee specified in R.S.12
37:3407(A)(7).13
(d) Written recognition of the fact that this registration is of a temporary14
nature.15
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§3408. Continuing education requirements17
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B. The basic continuing education requirements for renewal of a license shall19
be the completion of not less than thirty classroom hours twenty-eight hours, or its20
equivalent, in courses which that have received the approval of the board. As part21
of this requirement, the applicant shall complete a minimum of seven classroom22
hours of instruction covering the Uniform Standards of Professional Appraisal23
Practice every renewal period.24
C. In lieu of meeting the requirements of Subsection B of this Section, an25
applicant for renewal may present evidence of the following:26
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(2)(a) Participation, other than as a student, in educational processes and28
programs in real property appraisal theory, practices, or techniques, including but not29
limited to teaching, program development, and preparation of textbooks,30 ENROLLEDHB NO. 1018
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monographs, articles, and other instructional materials, all to be approved by the1
board.2
(b) No more than half of the continuing education credit shall be granted for3
participation pursuant to this Paragraph.4
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E. In making recommendations pursuant to Paragraph D(1) (D)(1) of this6
Section, the board shall give favorable consideration to courses of instruction,7
seminars, and other real property appraisal education courses or programs previously8
or hereafter developed by or under the auspices of professional appraisal9
organizations and utilized by those associations for purposes of designation,10
certification, or recertification of the members of the association.11
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§3409. Disciplinary proceedings13
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E. It shall be the duty of each licensed real estate appraiser to notify the15
board within ten days by registered or certified mail or by hand delivery of the16
following actions:17
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(4) Any sanction imposed on the appraiser by another jurisdiction.19
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§3410. Standards for the development and communication of real estate appraisals21
A. A licensed real estate appraiser shall comply with generally accepted22
standards of professional practice in the development and communication of23
appraisals of real estate located in this state and with generally accepted ethical rules24
of conduct as contained in the "Uniform Standards of Professional Appraisal25
Practice", or its successor, as approved by the Appraisal Subcommittee of the26
Federal Financial Institutions Examination Council, Appraisal Standards Board of27
the Appraisal Foundation or its successor.28
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Section 2. R.S. 37:3397(B)(6), (C), and (D), 3398(D), and 3401(D) are hereby1
repealed in their entirety.2
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: