Texas Senate Bill SB1171

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/7/11
• Introduced: 3/4/11
• Refer: 3/16/11
• Report Pass: 4/7/11

Caption

Relating to practices and professions regulated by the Texas Appraiser Licensing and Certification Board.

Impact

With the passage of SB1171, state laws will be updated to introduce necessary regulatory frameworks for real estate appraisers in Texas. The bill establishes protocols for the licensing and certification processes, ensuring that all appraisers operate under a consistent set of standards. Additionally, the bill mandates that the Texas Appraiser Licensing and Certification Board has the authority to impose administrative penalties for violations, which can significantly enhance oversight in the appraisal industry and promote accountability among appraisers.

Summary

SB1171 proposes amendments to the Texas Occupations Code pertaining to the practices and professions regulated by the Texas Appraiser Licensing and Certification Board. The bill's main intent is to align state law with federal standards established under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. This alignment is aimed at enforcing stringent standards for real property appraisal processes, enhancing the regulation of appraisers, and ensuring that appraisals are conducted uniformly across the state. This bill also introduces clear definitions and delineations regarding the roles and limitations of real estate appraisers within Texas law.

Contention

There are notable discussions around the enforcement mechanisms provided by this bill, particularly concerning the administrative penalties stipulated for violations of this chapter. Opponents may argue that these penalties could lead to an overly punitive regulatory environment for appraisers who may inadvertently make mistakes. Furthermore, the reciprocal licensing provisions have raised questions about how out-of-state appraisers will be integrated into Texas's regulatory landscape, with some members of the real estate community expressing concern over ensuring qualifications and adherence to Texas standards among these professionals.