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Rhode Island House Bill H5532

Rhode Island 2023 Regular Session

Rhode Island House Bill H5532 Compare Versions

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5-2023 -- H 5532 SUBSTITUTE A
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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE APPRAISER
1616 CERTIFICATION ACT
1717 Introduced By: Representative Joseph J. Solomon
1818 Date Introduced: February 15, 2023
1919 Referred To: House Corporations
2020 (Dept. of Business Regulation)
2121
2222 It is enacted by the General Assembly as follows:
2323 SECTION 1. Sections 5-20.7-2, 5-20.7-3, 5-20.7-4, 5-20.7-8, 5-20.7-9, 5-20.7-10, 5-20.7-1
2424 16 and 5-20.7-17 of the General Laws in Chapter 5-20.7 entitled "Real Estate Appraiser 2
2525 Certification Act" are hereby amended to read as follows: 3
2626 5-20.7-2. Definitions. 4
2727 When used in this chapter, unless the context indicates otherwise: 5
2828 (1) “Appraisal” or “real estate appraisal” means an analysis, opinion, or conclusion relating 6
2929 to the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate. 7
3030 An appraisal may be classified by subject matter into either a valuation or an analysis. A “valuation” 8
3131 is an estimate of the value of real estate or real property. An “analysis” is a study of real estate or 9
3232 real property other than estimating value. 10
3333 (2) “Appraisal Foundation” means the Appraisal Foundation incorporated as an Illinois 11
3434 not-for-profit corporation on November 30, 1987. The purposes of the Appraisal Foundation are: 12
3535 (i) To establish and improve uniform appraisal standards by defining, issuing, and 13
3636 promoting such standards; 14
3737 (ii) To establish appropriate criteria for the certification, licensing, and recertification of 15
3838 qualified appraisers by defining, issuing, and promoting that qualification criteria; to disseminate 16
3939 that qualification criteria to states, governmental entities, and others; and 17
4040 (iii) To develop or assist in the development of appropriate examinations for qualified 18
4141
4242
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4444 appraisers. 1
4545 (3) “Appraisal report” means any communication, written or oral, of an appraisal. 2
4646 (4) “Board” means the real-estate appraisal board established pursuant to the provisions of 3
4747 this chapter. 4
4848 (5) “Certified appraisal” or “certified appraisal report” means an appraisal or appraisal 5
4949 report given or signed and certified as such by a state-certified real estate appraiser or state-licensed 6
5050 real estate appraiser. When identifying an appraisal or appraisal report as “certified,” the state-7
5151 certified real estate appraiser shall indicate on it whether he or she has been licensed or certified as 8
5252 a residential or general state-certified real estate appraiser. A certified appraisal or appraisal report 9
5353 represents to the public that it meets the appraisal standards defined in this chapter. 10
5454 (6) “Department” means the department of business regulation. 11
5555 (7) “Director” means the director of the department of business regulation. 12
5656 (8) “Real estate” means an identified parcel or tract of land, including improvements, if 13
5757 any. 14
5858 (9) “Real property” means one or more defined interests, benefits, and rights inherent in 15
5959 the ownership of real estate. 16
6060 (10) “State-certified real estate appraiser” means a person who develops and communicates 17
6161 real estate appraisals reports and who holds a current, valid certificate issued to him or her for either 18
6262 general or residential real estate under the provisions of this chapter. A duly certified appraiser is 19
6363 not required to hold a real estate broker’s or salesperson’s license under chapter 20.5 of this title. 20
6464 (11) "State-licensed real estate appraiser" means a person who develops and communicates 21
6565 real estate appraisals reports and who holds a current, valid license issued to him or her for 22
6666 residential real estate under the provisions of this chapter. A duly licensed appraiser is not required 23
67-to hold a real estate broker's or salesperson's license under chapter 20.5 of this title. 24
67+to hold a real estate broker's salesperson's license under chapter 20.5 of this title. 24
6868 5-20.7-3. Certification required. Certification or license required. 25
6969 (a) No person, other than persons certified or licensed in accordance with the provisions of 26
7070 this chapter, shall assume or use that title or any title, designation, or abbreviation likely to create 27
7171 the impression of certification as a real estate appraiser by this state. A person who is not certified 28
7272 or licensed pursuant to this chapter shall not describe or refer to any appraisal or other valuation of 29
7373 real estate located in the state by the term “certified or licensed.” 30
7474 (b) This chapter precludes any person who is not certified as a state-certified real estate 31
7575 appraiser from appraising real property for compensation under chapter 20.5 of this title; provided, 32
7676 however, that this chapter does not preclude any person who holds a license pursuant to chapter 33
7777 20.5 of this title and, in the ordinary course of business, from giving a written or oral opinion of 34
7878
7979
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8181 value of real estate for the purposes of a prospective listing, purchase, sale, or business valuation; 1
8282 provided, however, that such opinion of value shall not be referred to as an appraisal. 2
8383 (c) Nothing in this chapter shall preclude a trainee directly supervised by a certified 3
8484 appraiser from assisting in or preparing a certified an appraisal report and signing such appraisal 4
8585 provided the appraisal is approved and signed by a certified appraiser as appropriate. 5
86-(d) Any appraisal conducted by an institution licensed in this state to accept deposits in 6
87-connection with a loan transaction, other than those conducted by: 7
88-(1) Federally or NCUA insured banks, savings banks, or credit unions; or 8
89-(2) Persons regulated or licensed under title 19 or any transactions, municipal or state, 9
90-regardless of monetary value, shall require an appraisal by a licensed or certified appraiser. 10
91-Any appraisal, as defined in § 5-20.7-2, must be performed by a licensed or certified 11
92-appraiser unless specifically exempted by federal law for federally insured institutions. 12
93-5-20.7-4. Creation of board — Composition — Appointment, terms, and 13
94-compensation of members. 14
95-(a)(1) Within the department of business regulation, there is created the Rhode Island real 15
96-estate appraisers board which shall consist of ten (10) members to be appointed by the governor. 16
97-Six (6) of the board members shall be practicing appraisers and, for the initial board appointment, 17
98-shall be members in good standing of one of the following professional associations or the 18
99-successor associations: the American Institute of Real Estate Appraisers, the Society of Real Estate 19
100-Appraisers, the International Right of Way Association, the National Association of Independent 20
101-Fee Appraisers, or the International Association of Assessing Officers. Where possible, at least one 21
102-but not more than two (2) appraiser appointments shall be from the membership of each of these 22
103-professional organizations. 23
104-(2) One board member shall be a member of the general public, and shall not be engaged 24
105-in the practice of real estate appraisal. One board member shall hold a real estate license under 25
106-chapter 20.5 of this title and shall not be a state-certified real estate appraiser. One member shall 26
107-be a representative of the Rhode Island banking industry. The director of the department of business 27
108-regulation or his or her designee shall serve at all times as a member of the board ex officio without 28
109-voting privileges. 29
110-(3) The term of office of the initial members and the powers of the initial board expire on 30
111-December 31, 1991. 31
112-(b) Commencing January 1, 1992, and subsequently, the board shall consist of ten (10) 32
113-members: 33
114-(1) Six (6) members shall be state-certified appraisers: 34
86+(d) Any appraisal conducted required by an institution licensed in this state to accept 6
87+deposits in connection with a loan transaction shall require an appraisal by a licensed or certified 7
88+appraiser, other than those conducted by: 8
89+(1) Federally or NCUA insured banks, savings banks, or credit unions; or 9
90+(2) Persons regulated or licensed under title 19 or any transactions, municipal or state, 10
91+regardless of monetary value, shall require an appraisal by a licensed or certified appraiser. 11
92+5-20.7-4. Creation of board — Composition — Appointment, terms, and 12
93+compensation of members. 13
94+(a)(1) Within the department of business regulation, there is created the Rhode Island real 14
95+estate appraisers board which shall consist of ten (10) members to be appointed by the governor. 15
96+Six (6) of the board members shall be practicing appraisers and, for the initial board appointment, 16
97+shall be members in good standing of one of the following professional associations or the 17
98+successor associations: the American Institute of Real Estate Appraisers, the Society of Real Estate 18
99+Appraisers, the International Right of Way Association, the National Association of Independent 19
100+Fee Appraisers, or the International Association of Assessing Officers. Where possible, at least one 20
101+but not more than two (2) appraiser appointments shall be from the membership of each of these 21
102+professional organizations. 22
103+(2) One board member shall be a member of the general public, and shall not be engaged 23
104+in the practice of real estate appraisal. One board member shall hold a real estate license under 24
105+chapter 20.5 of this title and shall not be a state-certified real estate appraiser. One member shall 25
106+be a representative of the Rhode Island banking industry. The director of the department of business 26
107+regulation or his or her designee shall serve at all times as a member of the board ex officio without 27
108+voting privileges. 28
109+(3) The term of office of the initial members and the powers of the initial board expire on 29
110+December 31, 1991. 30
111+(b) Commencing January 1, 1992, and subsequently, the board shall consist of ten (10) 31
112+members: 32
113+(1) Six (6) members shall be state-certified appraisers: 33
114+(i) Two (2) appraiser members shall be appointed for a term of three (3) years; 34
115115
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118-(i) Two (2) appraiser members shall be appointed for a term of three (3) years; 1
119-(ii) Two (2) members for a term of two (2) years; and 2
120-(iii) Two (2) members for a term of one year; 3
121-(2) One board member shall be a member of the general public, appointed for a term of 4
122-three (3) years, and shall not be engaged in the practice of real estate appraisal; 5
123-(3) One board member shall hold a real estate license under chapter 20.5 of this title, 6
124-appointed for a term of two (2) years and shall not be a state-certified real estate appraiser; 7
125-(4) One member shall be a representative of the Rhode Island banking industry and shall 8
126-be appointed for a term of one year; and 9
127-(5) The director of the department of business regulation, or his or her designee, shall serve 10
128-at all times as a member of the board ex officio without voting privileges. 11
129-(c)(1) Successors of all members shall each be appointed for terms of three (3) years and 12
130-until their successors are appointed and qualified by subscribing to the constitutional oath of office, 13
131-which shall be filed with the secretary of state. Members to fill vacancies shall be appointed for the 14
132-unexpired term. No member shall be appointed to succeed himself or herself for more than two (2) 15
133-terms. Upon qualification of the appointed members, the board shall organize by selecting from its 16
134-members a chairperson and vice-chairperson with a term of office of one year. 17
135-(2) The board shall meet not less than once each month or as necessary in order to conduct 18
136-its business, the dates and times of which shall be decided by a vote of the members. 19
137-(3) Each real estate appraiser member of the board appointed as of January 1, 1992, must 20
138-be a state-certified real estate appraiser. At least one-half (½) of the appraiser members shall hold 21
139-the general appraisal certificate and not less than two (2) shall hold the residential appraisal 22
140-certificate. 23
141-(4) Upon expiration of their terms, members of the board shall continue to hold office until 24
142-the appointment and qualification of their successors. The appointing authority may remove a 25
143-member for cause. 26
144-(5) A quorum of the board is a majority of the voting members of the board members 27
145-appointed and/or sitting, whichever is less, with at least three (3) of these members required to be 28
146-appraiser members. 29
147-(6) The department of business regulation, with the assistance of the board, shall implement 30
148-a program for recertification on or before July 1, 1992, and establish any reasonable rules and 31
149-regulations that are appropriate to insure that the examination, education, and experience 32
150-requirements of certificate and license holders meet the public interest and the minimum standards 33
151-of the Appraisal Foundation. 34
117+LC001627 - Page 4 of 15
118+(ii) Two (2) members for a term of two (2) years; and 1
119+(iii) Two (2) members for a term of one year; 2
120+(2) One board member shall be a member of the general public, appointed for a term of 3
121+three (3) years, and shall not be engaged in the practice of real estate appraisal; 4
122+(3) One board member shall hold a real estate license under chapter 20.5 of this title, 5
123+appointed for a term of two (2) years and shall not be a state-certified real estate appraiser; 6
124+(4) One member shall be a representative of the Rhode Island banking industry and shall 7
125+be appointed for a term of one year; and 8
126+(5) The director of the department of business regulation, or his or her designee, shall serve 9
127+at all times as a member of the board ex officio without voting privileges. 10
128+(c)(1) Successors of all members shall each be appointed for terms of three (3) years and 11
129+until their successors are appointed and qualified by subscribing to the constitutional oath of office, 12
130+which shall be filed with the secretary of state. Members to fill vacancies shall be appointed for the 13
131+unexpired term. No member shall be appointed to succeed himself or herself for more than two (2) 14
132+terms. Upon qualification of the appointed members, the board shall organize by selecting from its 15
133+members a chairperson and vice-chairperson with a term of office of one year. 16
134+(2) The board shall meet not less than once each month or as necessary in order to conduct 17
135+its business, the dates and times of which shall be decided by a vote of the members. 18
136+(3) Each real estate appraiser member of the board appointed as of January 1, 1992, must 19
137+be a state-certified real estate appraiser. At least one-half (½) of the appraiser members shall hold 20
138+the general appraisal certificate and not less than two (2) shall hold the residential appraisal 21
139+certificate. 22
140+(4) Upon expiration of their terms, members of the board shall continue to hold office until 23
141+the appointment and qualification of their successors. The appointing authority may remove a 24
142+member for cause. 25
143+(5) A quorum of the board is a majority of the voting members of the board members 26
144+appointed and/or sitting, whichever is less, with at least three (3) of these members required to be 27
145+appraiser members. 28
146+(6) The department of business regulation, with the assistance of the board, shall implement 29
147+a program for recertification on or before July 1, 1992, and establish any reasonable rules and 30
148+regulations that are appropriate to insure that the examination, education, and experience 31
149+requirements of certificate and license holders meet the public interest and the minimum standards 32
150+of the Appraisal Foundation. 33
151+(d) The board shall adopt a seal of any design that it prescribes. Copies of all records and 34
152152
153153
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155-(d) The board shall adopt a seal of any design that it prescribes. Copies of all records and 1
156-papers in the office of the board, duly certified and authenticated by its seal, shall be received in all 2
157-courts with like effect as the original. All records of the board shall be open to public inspection 3
158-under any reasonable rules and regulations that it prescribes. 4
159-(e)(d) No member of the board shall receive compensation for his or her official duties on 5
160-the board but shall be reimbursed for his or her actual and necessary expenses incurred in the 6
161-performance of his or her official duties. 7
162-5-20.7-8. Classes of certification and licensing — Residential and general. 8
163-(a) There are two (2) classes for state-certified real estate appraisers and two (2) classes of 9
164-licensed real estate appraisers. 10
165-(b) State-certified appraisers. 11
166-(1) A state-certified residential real estate appraiser is a person who fulfills the 12
167-requirements for certification for the appraisal of residential real property. For the purposes of this 13
168-section, residential property means property used for noncomplex single or multi-family dwellings 14
169-of 1 — 4 units having no minimum transaction value, or property used for complex 1 — 4 15
170-residential units having a transaction value of less than two hundred fifty thousand dollars 16
171-($250,000) as required by the appraiser qualifications board of the appraisal foundation. 17
172-(2)(a) A state-certified general real estate appraiser is a person who fulfills the requirements 18
173-for certification for the appraisal of all types of real property. 19
174-(c) State-licensed appraisers. 20
175-(b)(1) A state-licensed appraiser is a person who fulfills the requirements for licensing for 21
176-the appraisal of residential property as required by the appraiser qualifications board of the 22
177-appraisal foundation. For purposes of this section, residential property applies to the appraisal of 23
178-noncomplex 1 — 4 residential units having a transaction value of less than one million dollars 24
179-($1,000,000) and complex 1 — 4 residential units having a transaction value of less than two 25
180-hundred fifty thousand dollars ($250,000). 26
181-(c)(2) A licensed appraiser trainee is an individual who has successfully completed all 27
182-requisite core courses as required by the appraisal appraiser qualifications board of the Appraisal 28
183-Foundation. 29
184-(d) [Deleted by P.L. 2013, ch. 54, § 1 and P.L. 2013, ch. 58, § 1]. 30
185-5-20.7-9. Requirements prior to certification or licensing examination. Education 31
186-requirements prior to examination. 32
187-(a) Residential classification. As a prerequisite to taking the examination for certification 33
188-as a state-certified residential real estate appraiser, an applicant shall present evidence satisfactory 34
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155+papers in the office of the board, duly certified and authenticated by its seal, shall be received in all 1
156+courts with like effect as the original. All records of the board shall be open to public inspection 2
157+under any reasonable rules and regulations that it prescribes. 3
158+(e) No member of the board shall receive compensation for his or her official duties on the 4
159+board but shall be reimbursed for his or her actual and necessary expenses incurred in the 5
160+performance of his or her official duties. 6
161+5-20.7-8. Classes of certification and licensing — Residential and general. 7
162+(a) There are two (2) classes for state-certified real estate appraisers and two (2) classes of 8
163+licensed real estate appraisers. 9
164+(b) State-certified appraisers. 10
165+(1) A state-certified residential real estate appraiser is a person who fulfills the 11
166+requirements for certification for the appraisal of residential real property. For the purposes of this 12
167+section, residential property means property used for noncomplex single or multi-family dwellings 13
168+of 1 — 4 units having no minimum transaction value, or property used for complex 1 — 4 14
169+residential units having a transaction value of less than two hundred fifty thousand dollars 15
170+($250,000) as required by the appraisal qualifications board of the appraisal foundation. 16
171+(2)(a) A state-certified general real estate appraiser is a person who fulfills the requirements 17
172+for certification for the appraisal of all types of real property. 18
173+(c) State-licensed appraisers. 19
174+(b)(1) A state-licensed appraiser is a person who fulfills the requirements for licensing for 20
175+the appraisal of residential property as required by the appraisal qualifications board of the appraisal 21
176+foundation. For purposes of this section, residential property applies to the appraisal of noncomplex 22
177+1 — 4 residential units having a transaction value of less than one million dollars ($1,000,000) and 23
178+complex 1 — 4 residential units having a transaction value of less than two hundred fifty thousand 24
179+dollars ($250,000). 25
180+(c)(2) A licensed appraiser trainee is an individual who has successfully completed all 26
181+requisite core courses as required by the appraisal qualifications board of the Appraisal Foundation. 27
182+(d) [Deleted by P.L. 2013, ch. 54, § 1 and P.L. 2013, ch. 58, § 1]. 28
183+5-20.7-9. Requirements prior to certification or licensing examination. Education 29
184+requirements prior to examination. 30
185+(a) Residential classification. As a prerequisite to taking the examination for certification 31
186+as a state-certified residential real estate appraiser, an applicant shall present evidence satisfactory 32
187+to the board that he or she has successfully completed the required classroom hours of courses 33
188+promulgated by the appraisal qualifications board of the Appraisal Foundation in subjects related 34
189189
190190
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192-to the board that he or she has successfully completed the required classroom hours of courses 1
193-promulgated by the appraisal appraiser qualifications board of the Appraisal Foundation in subjects 2
194-related to real estate appraisal and the uniform standards of professional appraisal practice from a 3
195-duly licensed real estate school pursuant to the provisions of § 5-20.5-19 or a nationally recognized 4
196-appraisal organization, college, university, or other school approved by the appraisal appraiser 5
197-qualifications board of the Appraisal Foundation, or any other school that is approved by the board. 6
198-(b) General classification. As a prerequisite to taking the examination for certification as a 7
199-state-certified general real estate appraiser, an applicant shall present evidence satisfactory to the 8
200-director that he or she has successfully completed the required classroom hours of courses 9
201-promulgated by the appraisal appraiser qualifications board of the Appraisal Foundation in subjects 10
202-related to real estate appraisal and the uniform standards of professional appraisal practice from a 11
203-duly licensed real estate school pursuant to the provisions of § 5-20.5-19, or a nationally recognized 12
204-appraisal organization, college, university, or other school approved by the appraisal appraiser 13
205-qualifications board of the Appraisal Foundation, or such other school as approved by the board. 14
206-(c) Licensed real estate appraiser. As a prerequisite to taking the examination for licensing 15
207-as a state-licensed residential real estate appraiser, an applicant shall present evidence satisfactory 16
208-to the board that he or she has successfully completed the required classroom hours of courses 17
209-promulgated by the appraisal appraiser qualifications board of the Appraisal Foundation in subjects 18
210-related to real estate appraisal and the uniform standards of professional appraisal practice from a 19
211-duly licensed real estate school pursuant to the provisions of § 5-20.5-19 or a nationally recognized 20
212-appraisal organization, college, university, or other school approved by the appraisal appraiser 21
213-qualifications board of the Appraisal Foundation, or any other school that is approved by the board. 22
214-5-20.7-10. Experience requirement. Experience requirements prior to examination. 23
215-(a) An original certification as a state-certified real estate appraiser or licensing as a state-24
216-licensed appraiser shall not be issued to any person who does not possess the requisite experience 25
217-in real property appraisal as required by the appraisal appraiser qualifications board of the Appraisal 26
218-Foundation and supported by adequate written reports or file memoranda. The experience must be 27
219-acquired within a period of five (5) years immediately preceding the filing of the application for 28
220-certification. The experience shall be of the type of appraisal for which the applicant is seeking 29
221-certification/licensing and shall meet the minimum standards of the Appraisal Foundation and/or 30
222-applicable federal regulations. 31
223-(b) Each applicant for certification and licensing shall furnish, under oath, a detailed listing 32
224-of the real estate appraisal reports or file memoranda for each year for which experience is claimed 33
225-by the applicant. For an applicant for general certification at least fifty percent (50%) of the 34
191+LC001627 - Page 6 of 15
192+to real estate appraisal and the uniform standards of professional appraisal practice from a duly 1
193+licensed real estate school pursuant to the provisions of § 5-20.5-19 or a nationally recognized 2
194+appraisal organization, college, university, or other school approved by the appraisal qualifications 3
195+board of the Appraisal Foundation, or any other school that is approved by the board. 4
196+(b) General classification. As a prerequisite to taking the examination for certification as a 5
197+state-certified general real estate appraiser, an applicant shall present evidence satisfactory to the 6
198+director that he or she has successfully completed the required classroom hours of courses 7
199+promulgated by the appraisal qualifications board of the Appraisal Foundation in subjects related 8
200+to real estate appraisal and the uniform standards of professional appraisal practice from a duly 9
201+licensed real estate school pursuant to the provisions of § 5-20.5-19, or a nationally recognized 10
202+appraisal organization, college, university, or other school approved by the appraisal qualifications 11
203+board of the Appraisal Foundation, or such other school as approved by the board. 12
204+(c) Licensed real estate appraiser. As a prerequisite to taking the examination for licensing 13
205+as a state-licensed residential real estate appraiser, an applicant shall present evidence satisfactory 14
206+to the board that he or she has successfully completed the required classroom hours of courses 15
207+promulgated by the appraisal qualifications board of the Appraisal Foundation in subjects related 16
208+to real estate appraisal and the uniform standards of professional appraisal practice from a duly 17
209+licensed real estate school pursuant to the provisions of § 5-20.5-19 or a nationally recognized 18
210+appraisal organization, college, university, or other school approved by the appraisal qualifications 19
211+board of the Appraisal Foundation, or any other school that is approved by the board. 20
212+5-20.7-10. Experience requirement. Experience requirements prior to examination. 21
213+(a) An original certification as a state-certified real estate appraiser or licensing as a state-22
214+licensed appraiser shall not be issued to any person who does not possess the requisite experience 23
215+in real property appraisal as required by the appraisal qualifications board of the Appraisal 24
216+Foundation and supported by adequate written reports or file memoranda. The experience must be 25
217+acquired within a period of five (5) years immediately preceding the filing of the application for 26
218+certification. The experience shall be of the type of appraisal for which the applicant is seeking 27
219+certification/licensing and shall meet the minimum standards of the Appraisal Foundation and/or 28
220+applicable federal regulations. 29
221+(b) Each applicant for certification and licensing shall furnish, under oath, a detailed listing 30
222+of the real estate appraisal reports or file memoranda for each year for which experience is claimed 31
223+by the applicant. For an applicant for general certification at least fifty percent (50%) of the 32
224+prepared reports must demonstrate knowledge and working understanding of income capitalization 33
225+or other nonresidential reports. Upon request, the applicant shall make available to the director or 34
226226
227227
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229-prepared reports must demonstrate knowledge and working understanding of income capitalization 1
230-or other nonresidential reports. Upon request, the applicant shall make available to the director or 2
231-board for examination a sample of appraisal reports, which the applicant has prepared in the course 3
232-of his or her practice. 4
233-(c) In order for a licensed trainee appraiser to be issued certification as a state-certified 5
234-appraiser or licensing as a state-licensed appraiser, the trainee must have completed the requisite 6
235-experience in real property appraisal as required by the appraisal appraiser qualifications board and 7
236-supported by adequate written reports or file memoranda. That experience must be completed under 8
237-the direct supervision of certified real estate appraisers. The trainee may rely on more than one 9
238-supervising appraiser in order to complete this experience requirement, and no certified appraiser 10
239-shall supervise more than three (3) trainees. 11
240-5-20.7-16. Nonresident certified or licensed real estate appraisers — Secretary of state 12
241-as agent for service of process — Reciprocity. 13
242-(a) Every applicant for certification or licensing under this chapter who is not a resident of 14
243-this state shall submit, with the application for certification or licensing, an irrevocable consent that 15
244-service of process upon him or her may be made by delivery of the process to the secretary of state, 16
245-if in an action against the applicant in a court of this state arising out of the applicant’s activities as 17
246-a state-certified or licensed real estate appraiser, the plaintiff cannot, in the exercise of due 18
247-diligence, effect personal service upon the applicant. 19
248-(b) A nonresident of the state who has complied with the provisions of subsection (a) may 20
249-obtain a certificate as a state-certified real estate appraiser or a licensed real estate appraiser by 21
250-conforming to all of the provisions of this chapter relating to state-certified or licensed real estate 22
251-appraisers. If, in the determination by the board, another state is deemed to have substantially 23
252-equivalent certification requirements, an applicant who is certified under the laws of that other state 24
253-may obtain a certificate as a state-certified or licensed real estate appraiser in this state upon any 25
254-terms and conditions that are determined by the board. 26
255-5-20.7-17. Continuing education prerequisite to renewal. 27
256-(a) As a prerequisite to certificate or license renewal, a state-certified or licensed real estate 28
257-appraiser shall present evidence satisfactory to the director of having met the continuing education 29
258-requirements of this section. 30
259-(b) The basic continuing education requirement for renewal of a certificate or license is the 31
260-completion by the applicant, during the immediately preceding term of certification, of not less 32
261-than twenty-eight (28) hours of instruction in courses or seminars from a duly licensed real estate 33
262-school pursuant to the provisions of § 5-20.5-19 or a nationally recognized appraisal organization, 34
228+LC001627 - Page 7 of 15
229+board for examination a sample of appraisal reports, which the applicant has prepared in the course 1
230+of his or her practice. 2
231+(c) In order for a licensed trainee appraiser to be issued certification as a state-certified 3
232+appraiser or licensing as a state-licensed appraiser, the trainee must have completed the requisite 4
233+experience in real property appraisal as required by the appraisal qualifications board and supported 5
234+by adequate written reports or file memoranda. That experience must be completed under the direct 6
235+supervision of certified real estate appraisers. The trainee may rely on more than one supervising 7
236+appraiser in order to complete this experience requirement, and no certified appraiser shall 8
237+supervise more than three (3) trainees. 9
238+5-20.7-16. Nonresident certified or licensed real estate appraisers — Secretary of state 10
239+as agent for service of process — Reciprocity. 11
240+(a) Every applicant for certification or licensing under this chapter who is not a resident of 12
241+this state shall submit, with the application for certification or licensing, an irrevocable consent that 13
242+service of process upon him or her may be made by delivery of the process to the secretary of state, 14
243+if in an action against the applicant in a court of this state arising out of the applicant’s activities as 15
244+a state-certified or licensed real estate appraiser, the plaintiff cannot, in the exercise of due 16
245+diligence, effect personal service upon the applicant. 17
246+(b) A nonresident of the state who has complied with the provisions of subsection (a) may 18
247+obtain a certificate as a state-certified real estate appraiser or a licensed real estate appraiser by 19
248+conforming to all of the provisions of this chapter relating to state-certified or licensed real estate 20
249+appraisers. If, in the determination by the board, another state is deemed to have substantially 21
250+equivalent certification requirements, an applicant who is certified under the laws of that other state 22
251+may obtain a certificate as a state-certified or licensed real estate appraiser in this state upon any 23
252+terms and conditions that are determined by the board. 24
253+5-20.7-17. Continuing education prerequisite to renewal. 25
254+(a) As a prerequisite to certificate or license renewal, a state-certified or licensed real estate 26
255+appraiser shall present evidence satisfactory to the director of having met the continuing education 27
256+requirements of this section. 28
257+(b) The basic continuing education requirement for renewal of a certificate or license is the 29
258+completion by the applicant, during the immediately preceding term of certification, of not less 30
259+than twenty-eight (28) hours of instruction in courses or seminars from a duly licensed real estate 31
260+school pursuant to the provisions of § 5-20.5-19 or a nationally recognized appraisal organization, 32
261+college, university, or other school approved by the appraiser qualifications board of the Appraisal 33
262+Foundation or such other school as approved by the board. 34
263263
264264
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266-college, university, or other school approved by the appraiser qualifications board of the Appraisal 1
267-Foundation or such other school as approved by the board. 2
268-(c) In lieu of meeting the requirements of subsection (b) of this section, an applicant for 3
269-certificate or license renewal may satisfy all or part of the recertification requirements by presenting 4
270-evidence of the following: 5
271-(1) Completion of an educational program of study determined by the board to be 6
272-equivalent, for continuing education purposes, to courses meeting the requirements of subsection 7
273-(b) of this section; or 8
274-(2) Participation Up to one-half (1/2) of an individual's continuing education requirement 9
275-may be completed by participation other than as a student in educational processes and programs 10
276-approved by the board that relate to appraisal theory, practices, or techniques, including, but not 11
277-necessarily limited to, teaching, program development, and preparation of textbooks, monographs, 12
278-articles, and other instructional materials. 13
279-(3) [Deleted by P.L. 2013, ch. 54, § 1 and P.L. 2013, ch. 58, § 1]. 14
280-SECTION 2. Sections 5-20.9-2, 5-20.9-4, 5-20.9-8, 5-20.9-9, 5-20.9-11 and 5-20.9-15 of 15
281-the General Laws in Chapter 5-20.9 entitled "Real Estate Appraisal Management Company 16
282-Registration Act" are hereby amended to read as follows: 17
283-5-20.9-2. Definitions. 18
284-(a) All definitions set forth in § 5-20.7-2 are herein incorporated by reference. 19
285-(b) As used in this chapter, the following terms shall have the following meanings unless 20
286-the context clearly specifies otherwise: 21
287-(1) “Appraisal” means an analysis, opinion, or conclusion relating to the nature, quality, 22
288-value, or utility of specified interests in, or aspects of, identified real estate. An appraisal may be 23
289-classified by subject matter into either a valuation or an analysis. 24
290-(i) A “valuation” is an estimate of the value of real estate or real property. 25
291-(ii) An “analysis” is a study of real estate or real property other than estimating value. 26
292-(2) “Appraisal management company” means: 27
293-(i) In connection with valuing properties collateralizing mortgage loans or mortgages 28
294-incorporated into a securitization, any external third party authorized either by a creditor of a 29
295-consumer credit transaction secured by a consumer’s principal dwelling, or by an underwriter of or 30
296-other principal in the secondary mortgage markets, that oversees a network or panel of more than 31
297-fifteen (15) certified or licensed appraisers in Rhode Island or twenty-five (25) or more nationally, 32
298-excluding those appraisers who do not provide appraisal services for covered transactions, within 33
299-a given year to: 34
265+LC001627 - Page 8 of 15
266+(c) In lieu of meeting the requirements of subsection (b) of this section, an applicant for 1
267+certificate or license renewal may satisfy all or part of the recertification requirements by presenting 2
268+evidence of the following: 3
269+(1) Completion of an educational program of study determined by the board to be 4
270+equivalent, for continuing education purposes, to courses meeting the requirements of subsection 5
271+(b) of this section; or 6
272+(2) Participation Up to one-half (1/2) of an individual's continuing education requirement 7
273+may be completed by participation other than as a student in educational processes and programs 8
274+approved by the board that relate to appraisal theory, practices, or techniques, including, but not 9
275+necessarily limited to, teaching, program development, and preparation of textbooks, monographs, 10
276+articles, and other instructional materials. 11
277+(3) [Deleted by P.L. 2013, ch. 54, § 1 and P.L. 2013, ch. 58, § 1]. 12
278+SECTION 2. Sections 5-20.9-2, 5-20.9-4, 5-20.9-8, 5-20.9-9, 5-20.9-11 and 5-20.9-15 of 13
279+the General Laws in Chapter 5-20.9 entitled "Real Estate Appraisal Management Company 14
280+Registration Act" are hereby amended to read as follows: 15
281+5-20.9-2. Definitions. 16
282+(a) All definitions set forth in § 5-20.7-2 are herein incorporated by reference. 17
283+(b) As used in this chapter, the following terms shall have the following meanings unless 18
284+the context clearly specifies otherwise: 19
285+(1) “Appraisal” means an analysis, opinion, or conclusion relating to the nature, quality, 20
286+value, or utility of specified interests in, or aspects of, identified real estate. An appraisal may be 21
287+classified by subject matter into either a valuation or an analysis. 22
288+(i) A “valuation” is an estimate of the value of real estate or real property. 23
289+(ii) An “analysis” is a study of real estate or real property other than estimating value. 24
290+(2) “Appraisal management company” means: 25
291+(i) In connection with valuing properties collateralizing mortgage loans or mortgages 26
292+incorporated into a securitization, any external third party authorized either by a creditor of a 27
293+consumer credit transaction secured by a consumer’s principal dwelling, or by an underwriter of or 28
294+other principal in the secondary mortgage markets, that oversees a network or panel of more than 29
295+fifteen (15) certified or licensed appraisers in Rhode Island or twenty-five (25) or more nationally, 30
296+excluding those appraisers who do not provide appraisal services for covered transactions, within 31
297+a given year to: 32
298+(A) Recruit, select, and retain appraisers; 33
299+(B) Contract with licensed and certified appraisers to perform appraisal assignments; 34
300300
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302-LC001627/SUB A - Page 9 of 15
303-(A) Recruit, select, and retain appraisers; 1
304-(B) Contract with licensed and certified appraisers to perform appraisal assignments; 2
305-(C) Manage the process of having an appraisal performed, including providing 3
306-administrative duties such as receiving appraisal orders and appraisal reports, submitting completed 4
307-appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for 5
308-services provided, and reimbursing appraisers for services performed; or 6
309-(D) Review and verify the work of appraisers. 7
310-(ii) An appraisal management company does not include any entity that employs real estate 8
311-appraisers as employees for the performance of real estate appraisal services in a manner consistent 9
312-with federal regulations promulgated in accordance with § 1473 of the Dodd-Frank Wall Street 10
313-Reform and Consumer Protection Act. 11
314-(3) “Appraisal review” means the act or process of developing and communicating an 12
315-opinion about the quality of another appraiser’s work that was performed as part of an appraisal 13
316-assignment related to the appraiser’s data collection, analysis, opinions, conclusions, opinion of 14
317-value, or compliance with the Uniform Standards of Professional Appraisal Practice; provided 15
318-however, that “appraisal review” shall not include: 16
319-(i) A general examination for grammatical, typographical, or similar errors; or 17
320-(ii) A general examination for completeness, including regulatory or client requirements as 18
321-specified in an agreement that does not communicate an opinion of value. 19
322-(4) “Appraiser panel” means a group of independent fee appraisers that have been selected 20
323-by an appraisal management company to perform residential real estate appraisal services for the 21
324-appraisal management company. 22
325-(5) “Client” means any person or entity who or that contracts with, or otherwise enters into 23
326-an agreement with, an appraisal management company for the management of residential real estate 24
327-appraisal services. 25
328-(6) “Controlling person” means: 26
329-(i) An owner, officer, or director of a corporation, partnership, or other business entity 27
330-seeking to offer appraisal management services in this state; or 28
331-(ii) An individual employed, appointed, or authorized by an appraisal management 29
332-company who has the authority to enter into a contractual relationship with clients for the 30
333-performance of appraisal management services and has the authority to enter into agreements with 31
334-independent appraisers for the performance of residential real estate appraisal services; or 32
335-(iii) An individual who possesses, directly or indirectly, the power to direct or cause the 33
336-direction of the management or policies of an appraisal management company. 34
302+LC001627 - Page 9 of 15
303+(C) Manage the process of having an appraisal performed, including providing 1
304+administrative duties such as receiving appraisal orders and appraisal reports, submitting completed 2
305+appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for 3
306+services provided, and reimbursing appraisers for services performed; or 4
307+(D) Review and verify the work of appraisers. 5
308+(ii) An appraisal management company does not include any entity that employs real estate 6
309+appraisers as employees for the performance of real estate appraisal services in a manner consistent 7
310+with federal regulations promulgated in accordance with § 1473 of the Dodd-Frank Wall Street 8
311+Reform and Consumer Protection Act. 9
312+(3) “Appraisal review” means the act or process of developing and communicating an 10
313+opinion about the quality of another appraiser’s work that was performed as part of an appraisal 11
314+assignment related to the appraiser’s data collection, analysis, opinions, conclusions, opinion of 12
315+value, or compliance with the Uniform Standards of Professional Appraisal Practice; provided 13
316+however, that “appraisal review” shall not include: 14
317+(i) A general examination for grammatical, typographical, or similar errors; or 15
318+(ii) A general examination for completeness, including regulatory or client requirements as 16
319+specified in an agreement that does not communicate an opinion of value. 17
320+(4) “Appraiser panel” means a group of independent fee appraisers that have been selected 18
321+by an appraisal management company to perform residential real estate appraisal services for the 19
322+appraisal management company. 20
323+(5) “Client” means any person or entity who or that contracts with, or otherwise enters into 21
324+an agreement with, an appraisal management company for the management of residential real estate 22
325+appraisal services. 23
326+(6) “Controlling person” means: 24
327+(i) An owner, officer, or director of a corporation, partnership, or other business entity 25
328+seeking to offer appraisal management services in this state; or 26
329+(ii) An individual employed, appointed, or authorized by an appraisal management 27
330+company who has the authority to enter into a contractual relationship with clients for the 28
331+performance of appraisal management services and has the authority to enter into agreements with 29
332+independent appraisers for the performance of residential real estate appraisal services; or 30
333+(iii) An individual who possesses, directly or indirectly, the power to direct or cause the 31
334+direction of the management or policies of an appraisal management company. 32
335+(7) "Covered transaction" means any consumer credit transaction secured by the 33
336+consumer's principal dwelling. 34
337337
338338
339-LC001627/SUB A - Page 10 of 15
340-(7) "Covered transaction" means any consumer credit transaction secured by the 1
341-consumer's principal dwelling. 2
342-(7)(8) “Department” means the department of business regulation. 3
343-(8)(9) “Director” means the director of the department of business regulation. 4
344-(9)(10) “Independent fee appraiser” means: 5
345-(i) A natural person who is a state-licensed or state-certified appraiser and receives a fee 6
346-for performing an appraisal, but who is not an employee of the person engaging the appraiser; or 7
347-(ii) An organization that, in the ordinary course of business, employs state-licensed or state-8
348-certified appraisers to perform appraisals, receives a fee for performing the appraisals, and is not 9
349-subject to § 1124 of the federal Financial Institutions Reform, Recovery and Enforcement Act of 10
350-1989 (“FIRREA”), 12 U.S.C. § 3353. 11
351-(10)(11) “Real estate appraisal services” means the practice of developing an appraisal by 12
352-a licensed or certified appraiser in conformance with the USPAP. 13
353-(11)(12) “USPAP” mean the Uniform Standards for Professional Appraisal Practice 14
354-published by the Appraisal Foundation. 15
355-5-20.9-4. Requirements for registration. 16
356-(a) Appraisal management companies shall provide the following information upon 17
357-registration: 18
358-(1) Name and contact information of the entity seeking registration; 19
359-(2) Name and contact information of the controlling person for the entity; 20
360-(3) If the entity is not a corporation domiciled in this state, the name and contact 21
361-information for the company’s agent for service of process in this state; and 22
362-(4) Name, address, and contact information for any individual or any corporation, 23
363-partnership, or other business entity who or that owns 10% or more of the appraisal management 24
364-company. 25
365-(b) Contact information shall include the entity’s business and mailing address, telephone 26
366-number, facsimile number, and electronic mail (email) address. 27
367-(c) An appraisal management company shall certify that the following is true upon its initial 28
368-registration and upon each renewal of its registration: 29
369-(1) The registered entity has a system and process in place to verify that a person being 30
370-added to the appraiser panel of the appraisal management company holds a certification or license 31
371-in good standing in this state any jurisdiction to perform appraisals; 32
372-(2) The registered entity has a system in place to periodically perform a quality assurance 33
373-review of the work of independent fee appraisers who or that are performing real estate appraisal 34
339+LC001627 - Page 10 of 15
340+(7)(8) “Department” means the department of business regulation. 1
341+(8)(9) “Director” means the director of the department of business regulation. 2
342+(9)(10) “Independent fee appraiser” means: 3
343+(i) A natural person who is a state-licensed or state-certified appraiser and receives a fee 4
344+for performing an appraisal, but who is not an employee of the person engaging the appraiser; or 5
345+(ii) An organization that, in the ordinary course of business, employs state-licensed or state-6
346+certified appraisers to perform appraisals, receives a fee for performing the appraisals, and is not 7
347+subject to § 1124 of the federal Financial Institutions Reform, Recovery and Enforcement Act of 8
348+1989 (“FIRREA”), 12 U.S.C. § 3353. 9
349+(10)(11) “Real estate appraisal services” means the practice of developing an appraisal by 10
350+a licensed or certified appraiser in conformance with the USPAP. 11
351+(11)(12) “USPAP” mean the Uniform Standards for Professional Appraisal Practice 12
352+published by the Appraisal Foundation. 13
353+5-20.9-4. Requirements for registration. 14
354+(a) Appraisal management companies shall provide the following information upon 15
355+registration: 16
356+(1) Name and contact information of the entity seeking registration; 17
357+(2) Name and contact information of the controlling person for the entity; 18
358+(3) If the entity is not a corporation domiciled in this state, the name and contact 19
359+information for the company’s agent for service of process in this state; and 20
360+(4) Name, address, and contact information for any individual or any corporation, 21
361+partnership, or other business entity who or that owns 10% or more of the appraisal management 22
362+company. 23
363+(b) Contact information shall include the entity’s business and mailing address, telephone 24
364+number, facsimile number, and electronic mail (email) address. 25
365+(c) An appraisal management company shall certify that the following is true upon its initial 26
366+registration and upon each renewal of its registration: 27
367+(1) The registered entity has a system and process in place to verify that a person being 28
368+added to the appraiser panel of the appraisal management company holds a certification or license 29
369+in good standing in this state any jurisdiction to perform appraisals; 30
370+(2) The registered entity has a system in place to periodically perform a quality assurance 31
371+review of the work of independent fee appraisers who or that are performing real estate appraisal 32
372+services on its behalf to ensure that appraisal services are being conducted in accordance with 33
373+USPAP; 34
374374
375375
376-LC001627/SUB A - Page 11 of 15
377-services on its behalf to ensure that appraisal services are being conducted in accordance with 1
378-USPAP; 2
379-(3) The registered entity maintains a detailed record of each service request that it receives 3
380-for five (5) years; 4
381-(4) The registered entity maintains a system to assure that the appraiser selected for an 5
382-appraisal assignment is independent of the transaction and has the requisite education, expertise, 6
383-and experience necessary to competently complete the appraisal assignment for the particular 7
384-market and property type; and 8
385-(5) The registered entity will have a system in place to ensure that real estate appraisal 9
386-services are provided independently and free from inappropriate influence and coercion under the 10
387-appraisal independence standards established under § 129E of the Truth in Lending Act, 15 U.S.C. 11
388-§ 1639e, including the requirement that independent fee appraisers be compensated at a customary 12
389-and reasonable rate when the appraisal management company is providing services for a consumer 13
390-credit transaction secured by the principal dwelling of a consumer. 14
391-(d) A person who, directly or indirectly, owns more than ten percent (10%) of an applicant, 15
392-or any officer, controlling person, employee in charge, or managing principal of an applicant, shall 16
393-furnish to the department authorization for a state or national criminal history background check. 17
394-An appraisal management company that has an owner of more than ten percent (10%), directly or 18
395-indirectly, or any officer, controlling person, employee in charge, or managing principal, who has 19
396-had a license or certificate to act as an appraiser or to engage in any activity related to the transfer 20
397-of real property refused, denied, canceled, or revoked in this state or in any other state, whether on 21
398-a temporary or permanent basis, or who is not of good moral character as determined by the 22
399-director, shall not be eligible for licensure. 23
400-Ownership requirements. An AMC shall not be registered in this state if: 24
401-(1) Any person who owns, in whole or in part, directly or indirectly, more than ten percent 25
402-(10%) of the AMC fails to submit to a background investigation, and/or is determined by the 26
403-director not to have good moral character as determined by an analysis of the factors in § 28-5.1-27
404-14. 28
405-(2) The AMC is owned in whole or in part, directly or indirectly, by any person who has 29
406-had a license or certificate to act as an appraiser refused, denied, canceled, surrendered in lieu of 30
407-revocation, or revoked in this state or in any other state for substantive cause, as determined the 31
408-appropriate certifying and licensing agency. However, an AMC is not barred from registration if 32
409-the license or certificate of the appraiser with an ownership interest was not revoked for a 33
410-substantive cause and has been reinstated by the state or states in which the appraiser was licensed 34
376+LC001627 - Page 11 of 15
377+(3) The registered entity maintains a detailed record of each service request that it receives 1
378+for five (5) years; 2
379+(4) The registered entity maintains a system to assure that the appraiser selected for an 3
380+appraisal assignment is independent of the transaction and has the requisite education, expertise, 4
381+and experience necessary to competently complete the appraisal assignment for the particular 5
382+market and property type; and 6
383+(5) The registered entity will have a system in place to ensure that real estate appraisal 7
384+services are provided independently and free from inappropriate influence and coercion under the 8
385+appraisal independence standards established under § 129E of the Truth in Lending Act, 15 U.S.C. 9
386+§ 1639e, including the requirement that independent fee appraisers be compensated at a customary 10
387+and reasonable rate when the appraisal management company is providing services for a consumer 11
388+credit transaction secured by the principal dwelling of a consumer. 12
389+(d) A person who, directly or indirectly, owns more than ten percent (10%) of an applicant, 13
390+or any officer, controlling person, employee in charge, or managing principal of an applicant, shall 14
391+furnish to the department authorization for a state or national criminal history background check. 15
392+An appraisal management company that has an owner of more than ten percent (10%), directly or 16
393+indirectly, or any officer, controlling person, employee in charge, or managing principal, who has 17
394+had a license or certificate to act as an appraiser or to engage in any activity related to the transfer 18
395+of real property refused, denied, canceled, or revoked in this state or in any other state, whether on 19
396+a temporary or permanent basis, or who is not of good moral character as determined by the 20
397+director, shall not be eligible for licensure. 21
398+Ownership requirements. An AMC shall not be registered in this state if: 22
399+(1) Any person who owns, in whole or in part, directly or indirectly, more than ten percent 23
400+(10%) of the AMC fails to submit to a background investigation, and/or is determined by the 24
401+director not to have good moral character as determined by an analysis of the factors in § 28-5.1-25
402+14. 26
403+(2) The AMC is owned in whole or in part, directly or indirectly, by an person who has had 27
404+a license or certificate to act as an appraiser refused, denied, canceled, surrendered in lieu of 28
405+revocation, or revoked in this state or in any other state for substantive cause, as determined the 29
406+appropriate certifying and licensing agency. However, and AMC is not barred from registration if 30
407+the license or certificate of the appraiser with an ownership interest was not revoked or a substantive 31
408+cause and has been reinstated by the state or states in which the appraiser was licensed or certified. 32
409+5-20.9-8. Expiration of registration. 33
410+A registration granted by the department pursuant to this chapter shall be valid for two (2) 34
411411
412412
413-LC001627/SUB A - Page 12 of 15
414-or certified. 1
415-5-20.9-8. Expiration of registration. 2
416-A registration granted by the department pursuant to this chapter shall be valid for two (2) 3
417-years one year from the date on which it is issued. 4
418-5-20.9-9. Grounds for denial, suspension, or revocation of registration — Fines and 5
419-penalties. 6
420-(a) The department may deny, censure, suspend, or revoke a registration of an appraisal 7
421-management company issued under this chapter, levy fines or impose civil penalties not to exceed 8
422-five thousand dollars ($5,000) per violation, if in the opinion of the department, an appraisal 9
423-management company is attempting to perform, has performed, or has attempted to perform any of 10
424-the following acts: 11
425-(1) The appraisal management company has filed an application for registration that, as of 12
426-its effective date or as of any date after filing, contained any statement that, in light of the 13
427-circumstances under which it was made, is false or misleading with respect to any material fact; 14
428-(2) The appraisal management company has violated or failed to comply with any provision 15
429-of this chapter, or any rule adopted by the department; 16
430-(3) The appraisal management company is permanently or temporarily enjoined by any 17
431-court of competent jurisdiction from engaging in or continuing any conduct or practice involving 18
432-any aspect of the real estate appraisal management business; 19
433-(4) The appraisal management company or a controlling person thereof is the subject of an 20
434-order of the department or any other state appraiser regulatory agency denying, suspending, or 21
435-revoking that person’s license as a real estate appraiser; 22
436-(5) The appraisal management company acted as an appraisal management company while 23
437-not properly registered with the department; 24
438-(6) The appraisal management company has failed to pay the proper filing or renewal fee 25
439-under this chapter; 26
440-(7) The appraisal management company has demonst rated incompetence, 27
441-untrustworthiness, or conduct or practices that render the applicant unfit to perform appraisal 28
442-management services; or 29
443-(8) The appraisal management company has committed any of the prohibited practices set 30
444-forth in this chapter or in the department’s regulations. 31
445-(b) The department shall provide written notice of the denial, suspension, or revocation of 32
446-a registration under this chapter. Any party aggrieved by the department’s decision regarding 33
447-registration issuance or renewal may, within ten (10) days of the decision, appeal the matter to the 34
413+LC001627 - Page 12 of 15
414+years one year from the date on which it is issued. 1
415+5-20.9-9. Grounds for denial, suspension, or revocation of registration — Fines and 2
416+penalties. 3
417+(a) The department may deny, censure, suspend, or revoke a registration of an appraisal 4
418+management company issued under this chapter, levy fines or impose civil penalties not to exceed 5
419+five thousand dollars ($5,000) per violation, if in the opinion of the department, an appraisal 6
420+management company is attempting to perform, has performed, or has attempted to perform any of 7
421+the following acts: 8
422+(1) The appraisal management company has filed an application for registration that, as of 9
423+its effective date or as of any date after filing, contained any statement that, in light of the 10
424+circumstances under which it was made, is false or misleading with respect to any material fact; 11
425+(2) The appraisal management company has violated or failed to comply with any provision 12
426+of this chapter, or any rule adopted by the department; 13
427+(3) The appraisal management company is permanently or temporarily enjoined by any 14
428+court of competent jurisdiction from engaging in or continuing any conduct or practice involving 15
429+any aspect of the real estate appraisal management business; 16
430+(4) The appraisal management company or a controlling person thereof is the subject of an 17
431+order of the department or any other state appraiser regulatory agency denying, suspending, or 18
432+revoking that person’s license as a real estate appraiser; 19
433+(5) The appraisal management company acted as an appraisal management company while 20
434+not properly registered with the department; 21
435+(6) The appraisal management company has failed to pay the proper filing or renewal fee 22
436+under this chapter; 23
437+(7) The appraisal management company has demonstrated incompetence, 24
438+untrustworthiness, or conduct or practices that render the applicant unfit to perform appraisal 25
439+management services; or 26
440+(8) The appraisal management company has committed any of the prohibited practices set 27
441+forth in this chapter or in the department’s regulations. 28
442+(b) The department shall provide written notice of the denial, suspension, or revocation of 29
443+a registration under this chapter. Any party aggrieved by the department’s decision regarding 30
444+registration issuance or renewal may, within ten (10) days of the decision, appeal the matter to the 31
445+director by submitting a written request for a formal hearing to be conducted in accordance with 32
446+the provisions of § 5-20.9-17 5-20.9-18. 33
447+5-20.9-11. Controlling person and review appraiser employees. 34
448448
449449
450-LC001627/SUB A - Page 13 of 15
451-director by submitting a written request for a formal hearing to be conducted in accordance with 1
452-the provisions of § 5-20.9-17 5-20.9-18. 2
453-5-20.9-11. Controlling person and review appraiser employees. 3
454-(a) Each appraisal management company applying to the department for a registration in 4
455-this state shall designate one controlling person who will be the principal contact for all 5
456-communication between the department and the appraisal management company. 6
457-(b) Any employee of the appraisal management company who has the responsibility to 7
458-conduct an appraisal review, as defined in § 5-20.9-2, of the work of independent fee appraisers 8
459-must have a current USPAP certification be a state-licensed or certified appraiser. 9
460-5-20.9-15. Adjudication of disputes between an appraisal management company and 10
461-an appraiser. 11
462-(a) Except within the first thirty (30) days after an independent appraiser is added to the 12
463-appraiser panel of an appraisal management company, an An appraisal management company may 13
464-not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real 14
465-estate appraisal services to an independent appraiser without: 15
466-(1) Notifying the appraiser in writing of the reasons why the appraiser is being removed 16
467-from the appraiser panel of the appraisal management company, including the alleged statutory or 17
468-USPAP violation, if any; and 18
469-(2) Providing an opportunity for the appraiser to respond to the notification of the appraisal 19
470-management company. 20
471-(b) An appraiser that is removed from the appraiser panel of an appraisal management 21
472-company for alleged illegal conduct, violation of the USPAP, or violation of state licensing statutes, 22
473-may file a complaint with the department for a review of the decision of the appraisal management 23
474-company. The review of the department in any such case is limited to determining whether the 24
475-appraisal management company has complied with subsection (a) of this section and whether the 25
476-appraiser has committed a violation of state law, state licensing standards, or a violation of the 26
477-USPAP. 27
478-(c) If, after opportunity for hearing and review, the department determines that an appraisal 28
479-management company acted improperly in removing an appraiser from the appraiser panel, or that 29
480-an appraiser did not commit a violation of law, a violation of the USPAP, or a violation of state 30
481-licensing standards, the department may order that an appraiser be restored to the appraiser panel 31
482-of the appraisal management company that was the subject of the complaint, or impose any other 32
483-administrative penalties set forth in regulations. 33
484-(d) Hearings will be conducted in accordance with § 5-20.9-17 5-20.9-18, chapter 35 of 34
450+LC001627 - Page 13 of 15
451+(a) Each appraisal management company applying to the department for a registration in 1
452+this state shall designate one controlling person who will be the principal contact for all 2
453+communication between the department and the appraisal management company. 3
454+(b) Any employee of the appraisal management company who has the responsibility to 4
455+conduct an appraisal review, as defined in § 5-20.9-2, of the work of independent fee appraisers 5
456+must have a current USPAP certification be a licensed residential or certified appraiser. 6
457+5-20.9-15. Adjudication of disputes between an appraisal management company and 7
458+an appraiser. 8
459+(a) Except within the first thirty (30) days after an independent appraiser is added to the 9
460+appraiser panel of an An appraisal management company, an appraisal management company may 10
461+not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real 11
462+estate appraisal services to an independent appraiser without: 12
463+(1) Notifying the appraiser in writing of the reasons why the appraiser is being removed 13
464+from the appraiser panel of the appraisal management company, including the alleged statutory or 14
465+USPAP violation, if any; and 15
466+(2) Providing an opportunity for the appraiser to respond to the notification of the appraisal 16
467+management company. 17
468+(b) An appraiser that is removed from the appraiser panel of an appraisal management 18
469+company for alleged illegal conduct, violation of the USPAP, or violation of state licensing statutes, 19
470+may file a complaint with the department for a review of the decision of the appraisal management 20
471+company. The review of the department in any such case is limited to determining whether the 21
472+appraisal management company has complied with subsection (a) of this section and whether the 22
473+appraiser has committed a violation of state law, state licensing standards, or a violation of the 23
474+USPAP. 24
475+(c) If, after opportunity for hearing and review, the department determines that an appraisal 25
476+management company acted improperly in removing an appraiser from the appraiser panel, or that 26
477+an appraiser did not commit a violation of law, a violation of the USPAP, or a violation of state 27
478+licensing standards, the department may order that an appraiser be restored to the appraiser panel 28
479+of the appraisal management company that was the subject of the complaint, or impose any other 29
480+administrative penalties set forth in regulations. 30
481+(d) Hearings will be conducted in accordance with § 5-20.9-17 5-20.9-18, chapter 35 of 31
482+title 42, and the department’s rules of procedure for administrative hearings. 32
483+SECTION 3. Section 5-20.9-10 of the General Laws in Chapter 5-20.9 entitled "Real Estate 33
484+Appraisal Management Company Registration Act" is hereby repealed. 34
485485
486486
487-LC001627/SUB A - Page 14 of 15
488-title 42, and the department’s rules of procedure for administrative hearings. 1
489-SECTION 3. Section 5-20.9-10 of the General Laws in Chapter 5-20.9 entitled "Real Estate 2
490-Appraisal Management Company Registration Act" is hereby repealed. 3
491-5-20.9-10. Owner requirements. 4
492-(a) An appraisal management company applying for a registration in this state may not be 5
493-owned or controlled by a person if such person has had a license or certification to act as an 6
494-appraiser denied or revoked in this state or in any other state, or who is not of good moral character 7
495-as determined by the director. 8
496-(b) Each owner or controlling person of an appraisal management company in this state 9
497-shall certify to the department that such person has never had a license to act as an appraiser denied, 10
498-suspended, or revoked in this state or in any other state. 11
499-SECTION 4. This act shall take effect upon passage. 12
487+LC001627 - Page 14 of 15
488+5-20.9-10. Owner requirements. 1
489+(a) An appraisal management company applying for a registration in this state may not be 2
490+owned or controlled by a person if such person has had a license or certification to act as an 3
491+appraiser denied or revoked in this state or in any other state, or who is not of good moral character 4
492+as determined by the director. 5
493+(b) Each owner or controlling person of an appraisal management company in this state 6
494+shall certify to the department that such person has never had a license to act as an appraiser denied, 7
495+suspended, or revoked in this state or in any other state. 8
496+SECTION 4. This act shall take effect upon passage. 9
500497 ========
501-LC001627/SUB A
498+LC001627
502499 ========
503500
504501
505-LC001627/SUB A - Page 15 of 15
502+LC001627 - Page 15 of 15
506503 EXPLANATION
507504 BY THE LEGISLATIVE COUNCIL
508505 OF
509506 A N A C T
510507 RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE APPRAISER
511508 CERTIFICATION ACT
512509 ***
513510 This act would amend the Real Estate Appraiser Certification Act and the Real Estate 1
514511 Appraisal Management Company ("AMC") Registration Act by updating provisions for 2
515512 consistency with federal laws and based on recommendations from the appraisal subcommittee, the 3
516513 federal regulator of state appraiser licensing and certification programs and AMC registration. 4
517514 This act would take effect upon passage. 5
518515 ========
519-LC001627/SUB A
516+LC001627
520517 ========