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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 4107 By: Grego
AS INTRODUCED
An Act relating to professions and occupations;
amending 59 O.S. 2021, Section 858 -723, which relates
to the Oklahoma Certified Real Estate Appraisers Act;
requiring bond with certain complaints filed;
mandating forfeiture of bond for frivolous
complaints; proscribing use of forfeited bonds; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STA TE OF OKLAHOMA:
SECTION 1. AMENDATORY 59 O.S. 2021, Section 858 -723, is
amended to read as follows:
Section 858-723. A. The Real Estate Appraiser Board, after
notice and opportunity for a hearing, pursuant to Article II of the
Administrative Procedures Act, may issue an order imposing one or
more of the following penalties whenever the Board finds, by clear
and convincing evidence, that a certificate holder has violated any
provision of the Oklahoma Certified Real Estate Appraise rs Act, or
rules promulgated pursuant thereto:
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1. Revocation of the certificate with or without the right to
reapply;
2. Suspension of the cert ificate for a period not to exceed
five (5) years;
3. Probation, for a period of time and under such terms and
conditions as deemed appropriate by the Board;
4. Stipulations, limitations, restrictions, and conditions
relating to practice;
5. Censure, including specific redress, if appropriate;
6. Reprimand, either public or private;
7. Satisfactory completion of an educational program or
programs;
8. Administrative fines as authorized by the Oklahoma Certified
Real Estate Appraisers Act; and
9. Payment of costs expended by the Board for any legal fees
and costs and probation and monitoring fees including, but not
limited to, administrative costs, witness fees and attorney fees.
B. 1. Any administrative fine imposed as a result of a
violation of the Oklahoma Certified Real Estate Appraisers Act or
the rules of the Board promulgated pursuant thereto shall not:
a. be less than Fifty Dollars ($50.00) and shall not
exceed Two Thousand Dollars ($2,000.00) for each
violation of this act or the rules of the Board, or
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b. exceed Five Thousand Dollars ($5,000.00) for all
violations resulting from a single incident or
transaction.
2. All administrative fines shall be paid within thirty (30)
days of notification of the certificate holder by the Board of the
order of the Board imposing the administrative fine, unless the
certificate holder has entered into an agreement wit h the Board
extending the period for payment.
3. The certificate may be suspended until any fine imposed upon
the licensee by the Board is paid.
4. Unless the certificate holder has entered into an agreement
with the Board extending the period for paymen t, if fines are not
paid in full by the licensee within thirty (30) days of the
notification by the Board of the order, the fines shall double an d
the certificate holder shall have an additional thir ty-day period.
If the double fine is not paid within the additional thirty-day
period, the certificate shall automatically be revoked.
5. All monies received by the Board as a result of the
imposition of the administrative fine provided for in this secti on
shall be deposited in the Oklahoma Certified Real Esta te Appraisers
Revolving Fund created pursuant to Section 858 -730 of this title.
C. The rights of any holder under a certificate as a trainee,
state licensed, state certified residential or state cer tified
general real estate appraiser may be revoked or su spended, or the
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holder of the certificate may be otherwise disciplined pursuant to
the provisions of the Oklahoma Certified Real Estate Appraiser s Act,
upon any of the grounds set forth in this secti on. The Board may
investigate the actions of a trainee, state licensed, state
certified residential or state certified general real estate
appraiser, and may revoke or suspend the rights of a certifica te
holder or otherwise discipline a trainee, state lic ensed, state
certified residential or state certified gen eral real estate
appraiser for any of the following acts or omissions:
1. Procuring or attempting to procure a certificate pursuant to
the provisions of the Oklahoma Certified Real Estate Appraisers Act
by knowingly making a false statement, knowingly sub mitting false
information, refusing to provide complete information in response to
a question in an application for certification or through any form
of fraud or misrepresentation;
2. Failing to meet the minimum qualifications established
pursuant to the provisions of the Oklahoma Certified Real Estate
Appraisers Act;
3. Paying money other than provided for by the Oklahoma
Certified Real Estate A ppraisers Act to any member or employee of
the Board to procure a certificate pursuant to the Oklahoma
Certified Real Estate Appraisers Act;
4. A conviction, including a conviction based upon a plea of
guilty or nolo contendere, of a felony crime that sub stantially
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relates to the practice of real estate appr aisals or poses a
reasonable threat to public safety;
5. An act or omission involving dishonesty, fraud, or
misrepresentation with the intent to substantially benefit the
certificate holder or another person or with the intent to
substantially injure anot her person;
6. Violation of any of the standards for the development or
communication of real estate appraisals as provided in the Oklahoma
Certified Real Estate Appraisers Act;
7. Failure or refusal without good cause to exercise reasonable
diligence in developing an appraisal, preparing an appraisal report
or communicating an appraisal;
8. Negligence or incompetence in developing an appraisal, in
preparing an appraisal report, or in communicating an appraisal;
9. Willfully disregarding or violating an y of the provisions of
the Oklahoma Certified Real Estate Appraisers Act or the regulations
of the Board for the administration and enforcement of the
provisions of the Oklahoma Certified Real Estate Ap praisers Act;
10. Accepting an appraisal assignment w hen the employment
itself is contingent upon the appraise r reporting a predetermined
estimate, analysis or opinion, or where the fee to be paid is
contingent upon the opinion, conclusion, or valuation r eached, or
upon the consequences resulting from the ap praisal assignment;
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11. Violating the confidential natur e of governmental records
to which the appraiser gained access through employment or
engagement as an appraiser by a governmental agency;
12. Entry of a final civil judgment against the person on
grounds of deceit, fraud, or willful or knowing misrepresen tation in
the making of any appraisal of real property;
13. Violating any of the provisions in the code of ethics set
forth in this act; or
14. Failing to at any time properly identify themselves
according to the specific type of certification held.
D. In a disciplinary proceeding based upon a civil judgment,
the trainee, state licensed, state certified residential or state
certified general rea l estate appraiser shall be afforded an
opportunity to present matters in mitigation and extenuation, but
may not collaterally attack the civil judgment.
E. 1. A complaint may be filed with the Board against a
trainee or state licensed or state certified appraiser for any
violations relating to a specific t ransaction of the Oklahoma
Certified Real Estate Appraise rs Act by any person who is the
recipient of, relies upon or uses an appraisal prepared for a
federally related transaction or real -estate-related financial
transaction as described in Section 858 -701 of this title.
2. Any person with knowledge of any cir cumstances surrounding
an act or omission by a trainee or state licensed or state certified
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appraiser involving fraud, dishonesty or misrepresent ation in any
real property valuation -related activity, not limited to federally
related transactions, may file a complaint with the Board setting
forth all facts surrounding the act or omission.
3. A complaint may be filed against a trainee or state licen sed
or state certified appraiser directly by the Board , if reasonable
cause exists for violations of the code o f ethics set forth in this
act.
4. Any complaint filed pursuant to this subsection shall be in
writing and signed by the person filing same and shall be on a form
approved by the Board. The trainee or state licensed or state
certified appraiser shall be entitled to any hearings or subject to
any disciplinary proceedings provided for in the Oklahoma Certified
Real Estate Appraisers Act based upon any complaint filed pursuant
to this subsection.
5. Any person filing a complaint with the Board against a
trainee or state licensed or state certified appraiser pursuant to
this subsection shall post a bond with the Board in the amount of
One Thousand Dollars ($1,000.00). If, after hearing evidence , the
Board finds the complaint to be frivolous, the bond shall be
forfeited. Any forfeited bonds shall be transferred to the Oklahoma
Real Estate Commission and used for training purpose s.
F. As used in this section:
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1. "Substantially relates " means the nature of criminal conduct
for which the person was convicted h as a direct bearing on the
fitness or ability to perform one or more of the duties or
responsibilities necessarily related to the occupation; and
2. "Poses a reasonable threat " means the nature of cr iminal
conduct for which the person was convicted involv ed an act or threat
of harm against another and has a bearing on the fitness or ability
to serve the public or work with others in the occupation.
SECTION 2. This act shall become effective November 1, 2024.
59-2-9853 SW 01/17/24