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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 758 By: Pugh
AS INTRODUCED
An Act relating to the Real Estate Appr aiser Board;
amending 59 O.S. 2011, Section s 858-703, 858-706, as
amended by Section 1, Chapter 97 O.S.L. 2014, 858-
707, and 858-709, as amended by Section 2, Chapter
97, O.S.L. 2014 (59 O.S. Supp. 2020, Sect ions 858-706
and 858-709), which relate to definitions, powers of
Board, duties of Insurance Depa rtment and application
for certification; adding definition; authorizing
employment of director for certain purposes; stating
position as unclassified; stating authority of
director; making employees sta te employees; providing
certain employees are employe es of the Insurance
Department; providing for hire of temporary employees
for certain purpose; expanding powers and duties of
the Insurance Department to support the Appraiser
Board; providing for certain reimbursements and
expenditures; stating method to request
reimbursement; setting time for certain payments;
providing for other expenditures; modifying language;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 59 O.S. 2011, Section 858-703, is
amended to read as follows:
Section 858-703. As used in the Oklahoma Certified Real Estate
Appraisers Act:
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1. “Appraisal” or “real estate appraisal ” means an analysis,
opinion or conclusion rela ting to the nature, quality, value or
utility of specified interests in, or aspects of, identified real
estate other than oil, gas, coal, water, and all other energy and
nonfuel mineral and elements or the value of underground space to be
used for storage of commodities or for the disposal of waste unless
they are appraised as part of a federally related transaction
covered by the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989. An appraisal may be classified by subject
matter into either a valuation or an analysis. A “valuation” is an
estimate of the value of real estate or real property. An
“analysis” is a study of real estate or real property other than
estimating value;
2. “Appraisal report” means any written or oral communication
of an appraisal;
3. “Appraisal Subcommittee ” means the subcommittee created by
Title XI of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989;
4. “Appraiser Qualifications Board ” (AQB) means the independent
board appointed by the Board of Trustees of the Appraisal
Foundation. The AQB establishes educational, experience, and
examination criteria for appraisers. Title XI of the Financial
Institutions Reform, Recovery, and Enforcement Act (FI RREA) of 1989
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requires that state certifi ed appraisers must meet the minimum
qualifications set by the AQB;
5. “Board” means the Real Estate Appraiser Board established
pursuant to the provisions of the Oklahoma Certified Real Estate
Appraisers Act;
6. “Certification” shall refer to either a tr ainee appraiser, a
state licensed appraiser, a stat e certified residential appraiser or
a state certified general appraiser;
7. “Certified appraisal or certified appraisal report ” means an
appraisal or appraisal re port given or signed and certified as suc h
by a trainee appraiser, a state licensed, state c ertified
residential or state certified general real estate appraiser. When
identifying an appraisal or appraisal report as “certified”, the
trainee, state license d, state certified residential or state
certified general real estate appraiser must indicat e which type of
certification is held. A certified appraisal or appraisal report
represents to the public that it meets the appraisal standards
defined in the Oklahoma Certified Real Estate Appraisers Act ;
8. “Chairperson” means the chairperson of the Re al Estate
Appraiser Board;
9. “Department” means the Oklahoma Insurance Department;
10. “Director” means the individual employed by the Board who
is responsible for supervising the regulation of appr aiser and
appraisal management companies ’ credentialing and enforcement
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programs; serves as l iaison between the Board and other state and
federal entities and professional organizations; directs and
coordinates the day-to-day operations of the Board including
training staff, budgeting and ensuring adherence to the Open Meeting
Act and Open Records Act;
11. “Real estate” means an identified parcel or tract of land,
including improvements, if any;
11. 12. “Real property” means one or more defined interests,
benefits, and rights inherent in the owners hip of real estate;
12. 13. “Trainee, state licensed, state certified residential
or state certified general real estate appraiser ” means a person who
develops and communicat es real estate appraisals and who holds a
current, valid certificate issued to such p erson for either general
or residential real estate pursuant to provisions of the Oklahoma
Certified Real Estate Appraisers Act;
13. 14. “Appraisal assignment ” means an engagement for which an
appraiser is employed or retained to act, or would be perceived by
third parties or the public as acting, as a disinterested third
party in rendering an unbiased analysis, opinion, or conclusion
relating to the nature, quality, value , or utility of specified
interests in, or aspects of, identified real estate; and
14. 15. “Specialized services ” means those appraisal services
which do not fall within the definition of appraisal assignment.
The term “specialized services ” may include valuation work and
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analysis work. Regard less of the intention of the client or
employer, if the appraiser would be perceived by third parties or
the public as acting as a disinterested third party in rendering an
unbiased analysis, opinion or conclusion, the work is classified as
an appraisal assignment and not “specialized services ”.
SECTION 2. AMENDATORY 59 O.S. 2011, Section 858-706, as
amended by Section 1, Chapter 97, O.S.L. 2014 (59 O.S. Supp. 2020,
Section 858-706), is amended to read as follows:
Section 858-706. A. The Board shall promulgate rules and
regulations to implement the provisions of the Oklahoma Certified
Real Estate Appraisers Act.
B. The Board shall have the following powers and duties:
1. The Real Estate Appraiser Board may employ a Director to
oversee the organization and activities of the Board and to ensure
compliance with rules promulgated by the Board. The Director shall
perform such other duties as the Board may prescr ibe. The salary of
the Director shall be set by the Board. The position of Director
shall be an unclassified position ;
2. Board employees shall be hired by and subject to the
supervision and control of the Director or designee. Persons
employed by the Board shall serve at the direction and pleasure of
the Director. All employees are employees of the State of Oklahoma
and shall be in the unclassified service ;
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3. Employees of the Board shall be considered unclassified
employees of the Oklahoma Insurance Dep artment only for the purpose
of administrative support provided by the Oklahoma Insurance
Department;
4. The Director is authorized to employ temporary workers or
contract labor as may be required to properly administer the
Oklahoma Certified Real Estate Appraisers Act;
5. To further define by regulation and with respect to each
category of Oklahoma certified real estate ap praisers the type of
educational experience, appraisal experience, and equivalent
experience that will meet the requirements of the Okl ahoma Certified
Real Estate Appraisers Act, as approved by the Appraiser
Qualification Board of the Appraisal Foundation;
2. 6. To establish the examination specifications for each
category of Oklahoma certified real estate appraiser;
3. 7. To approve or disapprove applications for certification
and issue certificates;
4. 8. To further define by regulation and with respec t to each
category of Oklahoma certified real estate appraiser, the continuing
education requirements for the renewal of certification that will
meet the requirements of the Oklahoma Certified Real Estate
Appraisers Act as approved by the Appraiser Qualification Board of
the Appraisal Foundation;
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5. 9. To review from time to time the standards for the
development and communication of real estate app raisals provided in
the Oklahoma Certified Real Estate App raisers Act and to adopt
regulations explaining and interpreting the standards;
6. 10. To establish administrative procedures for disciplinary
proceedings conducted pursuant to the provisions of the Ok lahoma
Certified Real Estate Apprai sers Act;
7. 11. To censure, suspend and revoke certificates pursuan t to
the disciplinary proceedings provided in the Oklahoma Certified Real
Estate Appraisers Act; and
8. 12. To perform such other functions and duties as may b e
necessary in carrying out the pro visions of the Oklahoma Certified
Real Estate Appraisers Act.
In the exercise of all powers and the performance of all duties
provided in this act, the Board shall comply with the procedures
provided in the Administrative Procedures Act.
C. Actions of the Board shall not be subject to review by the
Department.
D. The members of the Board shall not be held civilly liable
for any action taken in good faith by the Board in its official
capacity pursuant to law unless such a ction is arbitrary and
capricious.
SECTION 3. AMENDATORY 59 O.S. 2011, Section 858-707, is
amended to read as follows:
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Section 858-707. The Insurance Department shall have the
following powers and duties:
1. The Department shall provi de administrative support for the
Board including, but not limited to, office space, equipme nt and
furnishings, IT support, payroll and employee benefit administrat ion
and processing, and travel and expense reimbursement, and shall
manage the Board’s funds at the direction of the Board. The
Oklahoma Insurance Department shall be entitled to reim bursement for
the annual cost of providing said administrative support. Upon
invoice and a written directive of expenditure approved by the
Director, the Oklahoma Insurance Department shall process and ma ke
payment for said expenditure from Board funds wi thin fifteen (15)
business days of receipt of the written directive from t he Board.
All other Board-directed expenditures shall be processed according
to Oklahoma Insurance Department policy ;
2. To receive application for Oklahoma certification;
2. 3. To establish the administrative procedures for processing
applications for Oklahoma certification;
3. 4. To maintain a registry of the names and addresses of
people certified pursuant to the provisions of the Oklahoma
Certified Real Estate Appraisers Act a nd transmit such registry to
the Appraisal Subcommittee;
4. 5. To retain records and all application materials submitted
to it; and
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5. 6. To assist the Board in such other manner as may be
requested.
SECTION 4. AMENDATORY 59 O.S. 2011, Section 858-709, as
amended by Section 2, Chapter 97, O.S.L. 2014 (59 O.S. Supp. 2020,
Section 858-709), is amended to read as follows:
Section 858-709. A. Applications for original certification,
renewal certification and examinat ions shall be made in writing to
the Oklahoma Insuran ce Department on forms approved by the Real
Estate Appraiser Board. Effective January 1, 2015, applicants for
original certification must submit to a criminal history r ecords
search that complies with S ection 4 of this act.
B. Appropriate fees, as fixed by the Department pursuant to
Section 858-708 of this title, must accompany all applications for
renewal certification.
C. At the time of filing an application for cert ification, each
applicant shall sign a pledge to comply with the standards set forth
in the Oklahoma Certified Real Estate Appraisers Act, and state that
such applicant understands the types of misconduct for which
disciplinary proceedings may be initiated against an Oklahoma
certified real estate appraiser, as set forth in the Oklahoma
Certified Real Estate Appraisers Act.
D. In accordance with Section 3351 of Title 12 of the United
States Code, the Board shall recog nize, on a temporary basis, the
certification or license of an appraiser issued by another state if:
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1. The property to be ap praised is part of a federally related
transaction, as defined in the federal real estate appraisal reform
amendments;
2. The appraiser’s business is of a temporary nat ure and
certified by the appraiser ;
3. The appraiser registers the temporary practice with the
Board and pays fees as provided herein; and
4. The appraiser resides in or is working out of a state that
is also in compliance with Section 3351 of Title 12 o f the United
States Code, that rec ognizes, on a temporary basis, the
certification or license of an Oklahoma appraiser in their state; or
5. As otherwise approved by the Board.
E. The applicant or any person registe ring with the Board for
temporary practice shall file an irrevocable cons ent that suits and
actions may be commenced against s uch person:
1. In the proper court of any county of this state in which a
cause of action may arise due to the person ’s actions as a state
licensed or certified real es tate appraiser; or
2. In the county in which the plaintiff may reside.
The consent also shall stipulate and agree that service of
process or pleadings on the person shall be made by service upon the
Board as the person’s agent and held in all courts to be as valid
and binding as if person al service had been made upon the applicant
in Oklahoma. In case any processes or pleading mentioned in the
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case is served upon the Board, it shall be by duplicate copies, one
of which shall be filed with the Board administrator Board’s
Director and the other immediately forwarded by registered mail to
the nonresident state licensed or certified real estate appraiser to
whom the processes or pleadings are directed.
SECTION 5. This act shall become effectiv e July 1, 2021.
SECTION 6. It being immediately necessary for the preservati on
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and afte r its passage and approval.
58-1-840 NP 1/21/2021 2:01:40 PM