PRINTER'S NO. 213
No. 219 Session of 1999
INTRODUCED BY GERLACH, THOMPSON, CORMAN, STOUT, KASUNIC AND
FUMO, JANUARY 25, 1999
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
JANUARY 25, 1999
AN ACT
1 Amending the act of July 10, 1990 (P.L.404, No.98), entitled "An
2 act providing for the certification of real estate
3 appraisers; specifying requirements for certification;
4 providing for sanctions and penalties; and making an
5 appropriation," defining "appraiser trainee"; providing for
6 licensing appraiser trainees; and further providing for the
7 powers and duties of the State Board of Certified Real Estate
8 Appraisers, for applications, for renewals, for disciplinary
9 measures and for surrender of registration.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Section 2 of the act of July 10, 1990 (P.L.404,
13 No.98), known as the Real Estate Appraisers Certification Act,
14 is amended by adding a definition to read:
15 Section 2. Definitions.
16 The following words and phrases when used in this act shall
17 have the meanings given to them in this section unless the
18 context clearly indicates otherwise:
19 * * *
20 "Appraiser trainee." A person who holds a current, valid
21 registration issued by the State Board of Certified Real Estate
1 Appraisers which authorizes him or her to assist in the
2 preparation of appraisals under the direct supervision of a
3 certified appraiser.
4 * * *
5 Section 2. Sections 5(1) and (6) and 6(f) of the act are
6 amended to read:
7 Section 5. Powers and duties of board.
8 The board shall have the following powers and duties:
9 (1) To pass upon the qualifications and fitness of
10 applicants for certification and registration and to adopt
11 and revise rules and regulations requiring applicants for
12 certification to pass examinations relating to their
13 qualifications for certification.
14 * * *
15 (6) To establish fees for the operation of the board,
16 including fees for the issuance and renewal of certificates
17 and registrations and for examinations.
18 * * *
19 Section 6. Application and qualifications.
20 * * *
21 (f) Definition of subjects.--The board shall prescribe and
22 define the subjects related to real property appraisal and the
23 experience in real property appraisal which will satisfy the
24 requirements of subsections (d) and (e). The qualifying
25 education obtained to meet the requirements of section 6.1 shall
26 be credited by the board to an applicant for certification under
27 subsections (d) and (e). To the extent permitted pursuant to the
28 Financial Institutions Reform, Recovery, and Enforcement Act of
29 1989, the board may give credit to an applicant for classroom
30 hours of academic experience successfully completed prior to the
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1 board's prescription and definition of subjects pursuant to this
2 subsection.
3 * * *
4 Section 3. The act is amended by adding a section to read:
5 Section 6.1. Appraiser trainees.
6 (a) General rule.--Persons who meet preliminary educational
7 requirements under this act may assist certified appraisers in
8 the performance of appraisals of real property to the extent
9 permitted pursuant to the Financial Institutions Reform,
10 Recovery and Enforcement Act of 1989 (Public Law 101-73, 103
11 Stat. 183).
12 (b) Application.--An applicant for registration as an
13 appraiser trainee shall submit a written application on forms
14 provided by the board evidencing that:
15 (1) The applicant is of good moral character.
16 (2) The application has been accompanied by the
17 application fee.
18 (3) The applicant demonstrates that he or she has met
19 preliminary educational requirements established pursuant to
20 the Financial Institutions Reform, Recovery and Enforcement
21 Act of 1989.
22 (c) Appraiser responsibility.--Appraisers who supervise
23 appraiser trainees shall be certified in good standing under
24 this act and shall accept full responsibility for all appraisal
25 reports and for the direct supervision and training of each
26 appraiser trainee, under Uniform Standards of Professional
27 Appraisal Practice promulgated by the Appraisal Standards Board
28 of the Appraisal Foundation, to be adopted by the board. Such
29 standards shall include, but are not limited to, the following:
30 (1) The appraiser shall sign all appraisal reports and
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1 certify each report to be in compliance with professional
2 standards adopted by the board.
3 (2) The appraiser shall review all appraiser trainee
4 work products and personally inspect each appraised property
5 with an appraiser trainee during the first 600 hours of
6 training and until the supervising appraiser determines that
7 an appraiser trainee is competent in accordance with
8 standards adopted by the board.
9 (d) Separate logs to be maintained.--Each appraiser trainee
10 shall maintain a separate appraisal log for each supervising
11 appraiser, to include, at a minimum, the following information
12 for each:
13 (1) Name of client.
14 (2) Property identifying information, including type of
15 property, description of the work performed and the amount of
16 time spent on each report and property.
17 (3) The signature and State certification number of the
18 supervising appraiser.
19 Section 4. Section 10 of the act is amended to read:
20 Section 10. Certification and registration renewal; records.
21 (a) Renewal term.--Renewal of certification and registration
22 as an appraiser trainee shall be on a biennial basis. The board
23 shall adopt regulations, subject to the provisions of the
24 Financial Institutions Reform, Recovery and Enforcement Act
25 (Public Law 101-73, 103 Stat. 183), establishing the maximum and
26 minimum number of biennial renewal periods within which an
27 appraiser trainee may gain experience required under section 6.
28 (b) Continuing education.--The board shall by regulation
29 require evidence of professional activity or continuing
30 education as a condition of certification or registration
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1 renewal if, and only to the minimum extent, required pursuant to
2 the Financial Institutions Reform, Recovery, and Enforcement Act
3 of 1989 [(Public Law 101-73, 103 Stat. 183)]. No credit shall be
4 given for any course in office management or practice building.
5 In order to facilitate the speedy implementation of this act,
6 the board shall have the power and authority to promulgate,
7 adopt and use guidelines to prescribe the evidence of
8 professional activity or continuing certification required for
9 certification renewal pursuant to this section. Such guidelines
10 shall be published in the Pennsylvania Bulletin. The guidelines
11 shall not be subject to review pursuant to section 205 of the
12 act of July 31, 1968 (P.L.769, No.240), referred to as the
13 Commonwealth Documents Law, sections 204(b) and 301(10) of the
14 act of October 15, 1980 (P.L.950, No.164), known as the
15 Commonwealth Attorneys Act, or the act of June 25, 1982
16 (P.L.633, No.181), known as the Regulatory Review Act, and shall
17 be effective for a period not to exceed two years from the
18 effective date of this act. After the expiration of the two-year
19 period, the guidelines shall expire and shall be replaced by
20 regulations which shall have been promulgated, adopted and
21 published as provided by law.
22 (c) Records.--A record of all persons certified as real
23 estate appraisers in this Commonwealth shall be kept in the
24 office of the board and shall be open to public inspection and
25 copying upon payment of a nominal fee for copying the record.
26 Each certificateholder shall advise the board of the address of
27 his or her principal place of business.
28 Section 5. Section 11 of the act, amended July 2, 1996
29 (P.L.460, No.71), is amended to read:
30 Section 11. Disciplinary and corrective measures.
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1 (a) Authority of board.--The board may deny, suspend or
2 revoke certificates and registrations, or limit, restrict or
3 reprimand a certificateholder or registrant for any of the
4 following causes:
5 (1) Procuring or attempting to procure or renew a
6 certificate [or renewal of a certificate] or registration
7 pursuant to this act by knowingly making a false statement,
8 submitting false information or refusing to provide complete
9 information in response to a question in an application for
10 the issuance of or renewal of a certification [or renewal]
11 through any form of fraud or misrepresentation.
12 (2) Failing to meet the minimum qualifications
13 established by this act.
14 (3) Paying, or offering to pay, any valuable
15 consideration other than provided for by this act to any
16 member or employee of the board to procure a certificate or
17 registration under this act.
18 (4) Being convicted of or pleading guilty to a crime
19 which is substantially related to the qualifications,
20 functions and duties of a person developing real property
21 appraisals and communicating real property appraisals to
22 others.
23 (5) Performing an act or omitting an act when such
24 performance or omission involves dishonesty, fraud or
25 misrepresentation with intent to substantially benefit the
26 certificateholder or registrant in his profession or with the
27 intent to substantially injure another person.
28 (6) Violating any of the standards for the development
29 or communication of real property appraisals as required
30 pursuant to this act or the Financial Institutions Reform,
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1 Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103
2 Stat. 183).
3 (7) Failing or refusing, without good cause, to exercise
4 reasonable diligence in developing an appraisal, preparing an
5 appraisal report or communicating an appraisal.
6 (8) Negligently or incompetently developing an
7 appraisal, preparing an appraisal report or communicating an
8 appraisal.
9 (9) Willfully disregarding or violating any of the
10 provisions of this act or the guidelines or regulations of
11 the board for the administration and enforcement of the
12 provisions of this act.
13 (10) Accepting an appraisal assignment when the
14 employment itself is contingent upon the appraiser's
15 reporting a predetermined analysis or opinion, or where the
16 fee to be paid for the performance of the appraisal
17 assignment is contingent upon the opinion, conclusion or
18 valuation reached, or upon the consequence resulting from the
19 appraisal assignment.
20 (11) Violating the confidential nature of records to
21 which the appraiser gained access through employment or
22 engagement as an appraiser.
23 (12) Making the fee or compensation contingent upon an
24 award or recovery in any case where the amount of the award
25 or recovery would be affected by the appraisal.
26 (13) Basing the fee or compensation on a percentage of
27 the final estimate of value.
28 (14) Contracting for or accepting compensation for
29 appraisal services in the form of a commission, rebate,
30 division of brokerage commissions or any other similar form.
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1 (15) Having a license or certificate to perform
2 appraisals suspended, revoked or refused by an appraisal
3 licensure or certification authority of another state,
4 territory or country, or receiving other disciplinary actions
5 by the appraisal licensure or certification authority of
6 another state, territory or country.
7 (b) Board action.--When the board finds that the
8 certification, registration or application for the issuance or
9 renewal of certification [or renewal] or registration of any
10 person may be denied, revoked, restricted or suspended under the
11 terms of subsection (a), the board may:
12 (1) Deny the application for issuance or renewal
13 certification [or renewal] or registration.
14 (2) Administer a public reprimand.
15 (3) Revoke, suspend, limit or otherwise restrict a
16 certificate or registration as determined by the board.
17 (4) Suspend enforcement of its findings thereof and
18 place a certificateholder or registrant on probation with the
19 right to vacate the probationary order for noncompliance.
20 (5) Restore a suspended certification or registration
21 and impose any disciplinary or corrective measure which it
22 might originally have imposed.
23 (c) Hearing.--All actions of the board shall be taken
24 subject to the right of notice, hearing and adjudication and the
25 right of appeal therefrom in accordance with 2 Pa.C.S. (relating
26 to administrative law and procedure). Appeals from actions of
27 the board shall be taken to Commonwealth Court or to such other
28 court as prescribed by law.
29 Section 6. Section 14 of the act is amended to read:
30 Section 14. Surrender of suspended or revoked certificate or
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1 registration.
2 The board shall require a person whose certification or
3 registration has been suspended or revoked to return the
4 certificate or registration in such manner as the board directs.
5 Failure to do so shall be a misdemeanor of the third degree.
6 Section 7. This act shall take effect in 60 days.
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