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SENATE FLOOR VERSION
March 3, 2021
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 758 By: Pugh
An Act relating to the Real Estate Appr aiser Board;
amending 59 O.S. 2011, Section s 858-703, 858-705.1,
as amended by Section 1, Chapter 90, O.S.L. 201 9,
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
858-705.1, 858-706 and 858-709), which relate to
definitions, chairperson duties, powers of Board,
duties of Insurance Department and application for
certification; adding definition; deleting certain
duties of chairperson; authorizing employmen t of
director for certain purposes; stating position as
unclassified; stating authority of director; making
employees state 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; providin g 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:
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Section 858-703. As used in the Oklahoma Certified Real Estate
Appraisers Act:
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, w ater, 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 I nstitutions 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. Titl e XI of the Financial
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Institutions Reform, Recove ry, and Enforcement Act (FIRREA) of 1989
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 E state
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 report 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 licensed, 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 st andards
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
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appraisal management companies ’ credentialing and enforcement
programs; serves as l iaison between the Board and other state and
federal entities and professional organizations; direc ts and
coordinates the day-to-day operations of the Board including
training staff, budgeting and ensuring adherence to the Oklahoma
Open Meeting Act and the Oklahoma 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 appr aiser” 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 Appraiser s 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 assignme nt.
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The term “specialized services” may include valuation work and
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 render ing 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 858-705.1,
as amended by Section 1, Chapter 90, O.S.L. 2019 (59 O.S. Supp.
2020, Section 858-705.1), is amended to read as follows:
Section 858-705.1. A. In addition to the seven (7) appointed
members of the Board, the Insurance Commissioner shall serve as ex -
officio Chairperson of the Bo ard, voting only in ca se of a tie.
B. As Chairperson, the Insurance Commissioner, in addition to
his duties prescribe d by law as Insurance Commissioner on September
1, 1991, shall be required to perform the following duties, for
which duties he shall be p aid an additional Twel ve Thousand Dollars
($12,000.00) annually, payable monthly from appropriations made to
the Insurance Department:
1. Keep records of the proceedings of the Board;
2. Call special meetings of the Board when in th e judgment of
the chairperson it is necessar y or proper to do so;
3. Procure appropriate examination questions and answers which
shall meet criteria established by the Appraisal Qualifications
Board of the Appraisal Foundation and approved by the Board;
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4. Develop guidelines for administration of and grading of the
examinations in accordance with standards promulgated by the
Appraisal Qualifications Board of the Appraisal Foundation and
approved by the Board;
5. Prepare and file an annual report with the Speaker of the
House of Representatives, the President Pro Tempore of the Senate ,
and the Governor detailing the number of applicants for the
examination and the pass/fail rate;
6. Formulate a study to evaluate the number of appraisers
licensed or certified by the state on a countywide basis an d report
to the Speaker of the House, the President Pro Tem pore of the
Senate, and the Governor concerning whether the re is a shortage of
qualified appraisers in the state;
7 5. Establish and maintain a recordkeepi ng system approved by
the Board to monitor compliance with the continuing education
requirements imposed by law;
8 6. Make recommendations to the Board concer ning the
establishment of administrative procedures for conducting
disciplinary proceedings pursu ant to the provisions of the Oklahoma
Certified Real Estate Appraisers Act;
9 7. Develop a procedure appr oved by the Board whereby persons
aggrieved by the actions of a licensed or certified appraiser may
file complaints with the Board;
10 8. Annually compile and file a report with the Speaker of
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the House of Representatives, President Pro Tempore of the Senate ,
and the Governor detailing the number of complaints received by the
Board, the resulting number of investigations and hearings conducted
and the final disposition of these matters;
11 9. Prepare and file a report with the Speaker of the House
of Representatives, the President Pro Tempore of the Senate, and the
Governor evaluating the impac t of the voluntary
licensure/certification program on futur e appraisers and recommend
whether an appraiser trainee or apprenticeship program should be
instituted; and
12 10. Submit to the Speaker of the House of Representatives,
the President Pro Tempore of the Senate , and the Governor on or
before January 1, 199 4, a report evaluating the impact of the
licensure/certification requirements imposed by the Oklah oma
Certified Real Estate Appraisers Act on the appraiser and banking
industry and include in the report any recommend ations for
amendments to the Oklahoma Ce rtified Real Estate Appraisers Act.
SECTION 3. 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 Certifi ed
Real Estate Appraisers Act.
B. The Board shall have the following powers and duties:
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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 th e 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 this state and shall
be in the unclassified service;
3. Employees of the Board shall be considered unclassified
employees of the Insurance Department only for the purpose o f
administrative support provided by the Insurance Department ;
4. The Director is authorized to employ tempor ary 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 certifi ed real estate appraisers 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 Appr aisal Foundation;
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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 regulatio n and with respect 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;
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 cer tificates pursuant to
the disciplinary proce edings 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.
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In the exercise of all pow ers and the performance of all duties
provided in this act the Oklahoma Certified Real Estate Appraisers
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 liabl e
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 4. AMENDATORY 59 O.S. 2011, Section 858-707, is
amended to read as follows:
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, equipment and
furnishings, IT support, payroll and employee ben efit administration
and processing, and travel and expense reimbursement, and shall
manage the Board’s funds at the direction of the Board. The
Insurance Department shall be en titled to reimbursement for the
annual cost of providing administrative support. Upon invoice and a
written directive of any expenditure approved by the Director, the
Insurance Department shall process and ma ke payment for the
expenditure from Board funds within fifteen (15) business days of
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receipt of the writte n directive from the Board. All other Board-
directed expenditures shall be processed according to 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
5. 6. To assist the Board in such other manner as may be
requested.
SECTION 5. 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 Insurance Department on for ms 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 858-709A of this
title.
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B. Appropriate fees, as fixed by the Department pu rsuant to
Section 858-708 of this title, must accompany all applications for
renewal certification.
C. At the time of filing an applicatio n for certification, 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 Ap praisers Act.
D. In accordance with Sect ion 3351 of Title 12 of the United
States Code, the Board shall recog nize, on a temporary basis, t he
certification or license of an appraiser issued by another state if:
1. The property to be ap praised is part of a federally related
transaction, as define d in the federal real estate appraisal reform
amendments;
2. The appraiser’s business is of a tem porary nature 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 of the United
States Code, that rec ognizes, on a temporary basis, the
certification or license of an Oklahom a appraiser in their state; or
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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 sta te in which a
cause of action may arise due to the person ’s actions as a state
licensed or certified real estate appraiser; or
2. In the county in which the plaintiff may reside.
The consent also shall stipulate an d 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 co urts to be as valid
and binding as if person al service had been made upon the applicant
in Oklahoma. In case any pro cesses or pleading mentioned in the
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 li censed or certified real estate appraiser to
whom the processes or pleadings are directed.
SECTION 6. This act shall becom e effective July 1, 2021.
SECTION 7. It being immediately necessary for the preservati on
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
March 3, 2021 - DO PASS AS AMENDED