PRINTER'S NO. 262
No. 261 Session of 1997
INTRODUCED BY GERLACH, ARMSTRONG, HECKLER, STOUT, TOMLINSON AND
CORMAN, JANUARY 29, 1997
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
JANUARY 29, 1997
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
19970S0261B0262 - 3 -
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 until the supervising appraiser
6 determines that an appraiser trainee is competent in
7 accordance with standards adopted by the board.
8 (d) Separate logs to be maintained.--Each appraiser trainee
9 shall maintain a separate appraisal log for each supervising
10 appraiser, to include, at a minimum, the following information
11 for each:
12 (1) Name of client.
13 (2) Property identifying information, including type of
14 property, description of the work performed and the amount of
15 time spent on each report and property.
16 (3) The signature and State certification number of the
17 supervising appraiser.
18 Section 4. Section 10 of the act is amended to read:
19 Section 10. Certification and registration renewal; records.
20 (a) Renewal term.--Renewal of certification and registration
21 as an appraiser trainee shall be on a biennial basis. The board
22 shall adopt regulations, subject to the provisions of the
23 Financial Institutions Reform, Recovery and Enforcement Act
24 (Public Law 101-73, 103 Stat. 183), establishing the maximum and
25 minimum number of biennial renewal periods within which an
26 appraiser trainee may gain experience required under section 6.
27 (b) Continuing education.--The board shall by regulation
28 require evidence of professional activity or continuing
29 education as a condition of certification or registration
30 renewal if, and only to the minimum extent, required pursuant to
19970S0261B0262 - 4 -
1 the Financial Institutions Reform, Recovery, and Enforcement Act
2 of 1989 [(Public Law 101-73, 103 Stat. 183)]. No credit shall be
3 given for any course in office management or practice building.
4 In order to facilitate the speedy implementation of this act,
5 the board shall have the power and authority to promulgate,
6 adopt and use guidelines to prescribe the evidence of
7 professional activity or continuing certification required for
8 certification renewal pursuant to this section. Such guidelines
9 shall be published in the Pennsylvania Bulletin. The guidelines
10 shall not be subject to review pursuant to section 205 of the
11 act of July 31, 1968 (P.L.769, No.240), referred to as the
12 Commonwealth Documents Law, sections 204(b) and 301(10) of the
13 act of October 15, 1980 (P.L.950, No.164), known as the
14 Commonwealth Attorneys Act, or the act of June 25, 1982
15 (P.L.633, No.181), known as the Regulatory Review Act, and shall
16 be effective for a period not to exceed two years from the
17 effective date of this act. After the expiration of the two-year
18 period, the guidelines shall expire and shall be replaced by
19 regulations which shall have been promulgated, adopted and
20 published as provided by law.
21 (c) Records.--A record of all persons certified as real
22 estate appraisers in this Commonwealth shall be kept in the
23 office of the board and shall be open to public inspection and
24 copying upon payment of a nominal fee for copying the record.
25 Each certificateholder shall advise the board of the address of
26 his or her principal place of business.
27 Section 5. Section 11 of the act, amended July 2, 1996
28 (P.L.460, No.71), is amended to read:
29 Section 11. Disciplinary and corrective measures.
30 (a) Authority of board.--The board may deny, suspend or
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1 revoke certificates and registrations, or limit, restrict or
2 reprimand a certificateholder or registrant for any of the
3 following causes:
4 (1) Procuring or attempting to procure or renew a
5 certificate [or renewal of a certificate] or registration
6 pursuant to this act by knowingly making a false statement,
7 submitting false information or refusing to provide complete
8 information in response to a question in an application for
9 the issuance of or renewal of a certification [or renewal]
10 through any form of fraud or misrepresentation.
11 (2) Failing to meet the minimum qualifications
12 established by this act.
13 (3) Paying, or offering to pay, any valuable
14 consideration other than provided for by this act to any
15 member or employee of the board to procure a certificate or
16 registration under this act.
17 (4) Being convicted of or pleading guilty to a crime
18 which is substantially related to the qualifications,
19 functions and duties of a person developing real property
20 appraisals and communicating real property appraisals to
21 others.
22 (5) Performing an act or omitting an act when such
23 performance or omission involves dishonesty, fraud or
24 misrepresentation with intent to substantially benefit the
25 certificateholder or registrant in his profession or with the
26 intent to substantially injure another person.
27 (6) Violating any of the standards for the development
28 or communication of real property appraisals as required
29 pursuant to this act or the Financial Institutions Reform,
30 Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103
19970S0261B0262 - 6 -
1 Stat. 183).
2 (7) Failing or refusing, without good cause, to exercise
3 reasonable diligence in developing an appraisal, preparing an
4 appraisal report or communicating an appraisal.
5 (8) Negligently or incompetently developing an
6 appraisal, preparing an appraisal report or communicating an
7 appraisal.
8 (9) Willfully disregarding or violating any of the
9 provisions of this act or the guidelines or regulations of
10 the board for the administration and enforcement of the
11 provisions of this act.
12 (10) Accepting an appraisal assignment when the
13 employment itself is contingent upon the appraiser's
14 reporting a predetermined analysis or opinion, or where the
15 fee to be paid for the performance of the appraisal
16 assignment is contingent upon the opinion, conclusion or
17 valuation reached, or upon the consequence resulting from the
18 appraisal assignment.
19 (11) Violating the confidential nature of records to
20 which the appraiser gained access through employment or
21 engagement as an appraiser.
22 (12) Making the fee or compensation contingent upon an
23 award or recovery in any case where the amount of the award
24 or recovery would be affected by the appraisal.
25 (13) Basing the fee or compensation on a percentage of
26 the final estimate of value.
27 (14) Contracting for or accepting compensation for
28 appraisal services in the form of a commission, rebate,
29 division of brokerage commissions or any other similar form.
30 (15) Having a license or certificate to perform
19970S0261B0262 - 7 -
1 appraisals suspended, revoked or refused by an appraisal
2 licensure or certification authority of another state,
3 territory or country, or receiving other disciplinary actions
4 by the appraisal licensure or certification authority of
5 another state, territory or country.
6 (b) Board action.--When the board finds that the
7 certification, registration or application for the issuance or
8 renewal of certification [or renewal] or registration of any
9 person may be denied, revoked, restricted or suspended under the
10 terms of subsection (a), the board may:
11 (1) Deny the application for issuance or renewal
12 certification [or renewal] or registration.
13 (2) Administer a public reprimand.
14 (3) Revoke, suspend, limit or otherwise restrict a
15 certificate or registration as determined by the board.
16 (4) Suspend enforcement of its findings thereof and
17 place a certificateholder or registrant on probation with the
18 right to vacate the probationary order for noncompliance.
19 (5) Restore a suspended certification or registration
20 and impose any disciplinary or corrective measure which it
21 might originally have imposed.
22 (c) Hearing.--All actions of the board shall be taken
23 subject to the right of notice, hearing and adjudication and the
24 right of appeal therefrom in accordance with 2 Pa.C.S. (relating
25 to administrative law and procedure). Appeals from actions of
26 the board shall be taken to Commonwealth Court or to such other
27 court as prescribed by law.
28 Section 6. Section 14 of the act is amended to read:
29 Section 14. Surrender of suspended or revoked certificate or
30 registration.
19970S0261B0262 - 8 -
1 The board shall require a person whose certification or
2 registration has been suspended or revoked to return the
3 certificate or registration in such manner as the board directs.
4 Failure to do so shall be a misdemeanor of the third degree.
5 Section 7. This act shall take effect in 60 days.
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