HOUSE AMENDED PRIOR PRINTER'S NOS. 820, 1529, 2182, PRINTER'S NO. 2367 2323
No. 756 Session of 1989
INTRODUCED BY SHUMAKER, O'PAKE, LOEPER, PETERSON, REIBMAN, ANDREZESKI AND BELL, MARCH 23, 1989
AS REPORTED FROM COMMITTEE ON PROFESSIONAL LICENSURE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 26, 1990
AN ACT 1 Providing for the certification of real estate appraisers; <-- 2 creating the Real Estate Appraisers Subcommittee and imposing 3 powers and duties; providing additional powers and duties for 4 the Bureau of Professional and Occupational Affairs; fixing 5 civil and criminal penalties for violations; and making an 6 appropriation. 7 TABLE OF CONTENTS 8 Chapter 1. General Provisions 9 Section 101. Short title. 10 Section 102. Definitions. 11 Chapter 3. Scope of Regulations 12 Section 301. Compliance. 13 Section 302. Real estate appraiser certification required. 14 Chapter 5. Real Estate Appraisers Subcommittee 15 Section 501. Subcommittee creation. 16 Section 502. Terms. 17 Section 503. Qualifications. 18 Section 504. Meetings.
1 Section 505. Officers, quorum and removal. 2 Section 506. Expenses. 3 Section 507. Rules and regulations. 4 Section 508. Powers and duties of subcommittee. 5 Section 509. Registry. 6 Section 510. Annual reports. 7 Chapter 7. Revenue 8 Section 701. Funding. 9 Section 702. Fees. 10 Chapter 9. Certification Process 11 Section 901. Examinations. 12 Section 902. Classes of certification. 13 Section 903. Written examination; contents. 14 Section 904. Prerequisites. 15 Section 905. False statements. 16 Section 906. Denial of certification. 17 Section 907. Duration of certification. 18 Section 908. Nonresidents. 19 Section 909. Recognition of other State certification. 20 Section 910. Renewals. 21 Section 911. Late renewals. 22 Section 912. No corporate certification. 23 Section 913. Address of principal office. 24 Section 914. Signatures of subcommittee members. 25 Section 915. Use of certification number. 26 Section 916. Limitation on use of term. 27 Section 917. Reinstatement options. 28 Section 918. Reporting of multiple certification. 29 Section 919. Surrender of suspended or revoked certification. 30 Chapter 11. Continuing Education 19890S0756B2367 - 2 -
1 Section 1101. General rule. 2 Section 1102. Additional rules and regulations. 3 Section 1103. Mandatory requirement. 4 Chapter 13. Disciplinary Proceedings 5 Section 1301. General rule. 6 Section 1302. Disciplinary action. 7 Section 1303. Effect of civil suit. 8 Section 1304. Conduct of proceedings. 9 Section 1305. Subpoenas. 10 Section 1306. Unlawful practice. 11 Chapter 15. Appraisal Reports 12 Section 1501. Reports. 13 Chapter 17. Miscellaneous 14 Section 1701. Records. 15 Section 1702. Penalties. 16 Section 1703. Action for damages. 17 Section 1704. Appropriation. 18 Chapter 19. Effective Date 19 Section 1901. Effective date. 20 PROVIDING FOR THE CERTIFICATION OF REAL ESTATE APPRAISERS; <-- 21 SPECIFYING REQUIREMENTS FOR CERTIFICATION; PROVIDING FOR 22 SANCTIONS AND PENALTIES; AND MAKING AN APPROPRIATION. 23 TABLE OF CONTENTS 24 SECTION 1. SHORT TITLE. 25 SECTION 2. DEFINITIONS. 26 SECTION 3. REAL ESTATE APPRAISER CERTIFICATION REQUIRED. 27 SECTION 4. STATE BOARD OF CERTIFIED REAL ESTATE APPRAISERS. 28 SECTION 5. POWERS AND DUTIES OF BOARD. 29 SECTION 6. APPLICATION AND QUALIFICATIONS. 30 SECTION 7. RECIPROCITY. 19890S0756B2367 - 3 -
1 SECTION 8. TEMPORARY PRACTICE. 2 SECTION 9. FEES. 3 SECTION 10. CERTIFICATION RENEWAL; RECORDS. 4 SECTION 11. DISCIPLINARY AND CORRECTIVE MEASURES. 5 SECTION 12. REINSTATEMENT OF CERTIFICATE. 6 SECTION 13. REPORTING OF MULTIPLE CERTIFICATION. 7 SECTION 14. SURRENDER OF SUSPENDED OR REVOKED CERTIFICATE. 8 SECTION 15. PENALTIES. 9 SECTION 16. SUBPOENAS. 10 SECTION 17. INJUNCTIVE RELIEF. 11 SECTION 18. STATE LICENSURE REQUIREMENTS. 12 SECTION 19. APPROPRIATION. 13 SECTION 20. EFFECTIVE DATE. 14 The General Assembly of the Commonwealth of Pennsylvania 15 hereby enacts as follows: 16 CHAPTER 1 <-- 17 GENERAL PROVISIONS 18 Section 101. Short title. 19 This act shall be known and may be cited as the State- 20 Certified Real Estate Appraisers Law. 21 Section 102. Definitions. 22 The following words and phrases when used in this act shall 23 have the meanings given to them in this section unless the 24 context clearly indicates otherwise: 25 "Applicant." A natural person. 26 "Appraisal assignment." An engagement for which an appraiser 27 is employed or retained to act, or would be perceived by third 28 parties or the public as acting, as a disinterested third party 29 in rendering an unbiased analysis, opinion or conclusion 30 relating to the nature, quality, value or utility of specified 19890S0756B2367 - 4 -
1 interests in, or aspects of, identified real estate. 2 "Appraisal Foundation." The Appraisal Foundation 3 incorporated as an Illinois Not for Profit Corporation on 4 November 30, 1987. 5 "Appraisal report." Any communication, written or oral, of 6 an analysis, opinion or conclusion relating to the nature, 7 quality, value or utility of specified interests in, or aspects 8 of, identified real estate, including, but not limited to, 9 valuation reports, real estate counseling reports, real estate 10 tax counseling reports, real estate offering memoranda, mortgage 11 banking offers, highest and best use studies, market demand and 12 economic feasibility studies, and all other reports 13 communicating an appraisal analysis, opinion or conclusion, 14 regardless of title, including reviews of any appraisal reports 15 as defined in this act. 16 "Commission." The State Real Estate Commission. 17 "Commissioner." The Commissioner of Professional and 18 Occupational Affairs in the Department of State. 19 "Department." The Department of State of the Commonwealth. 20 "Real estate." An identified parcel or tract of land, 21 including improvements, if any. 22 "Real estate appraisal" or "appraisal." An analysis, opinion 23 or conclusion relating to the nature, quality, value or utility 24 of specified interests in, or aspects of, identified real 25 estate, for or in expectation of compensation. 26 "Real property." One or more defined interests in a parcel 27 of real estate, whether an unencumbered fee or a lesser estate. 28 "State-certified real estate appraiser." A person who holds 29 a current valid certificate issued to him under the provisions 30 of this act. A State-certified real estate appraiser may 19890S0756B2367 - 5 -
1 designate or identify appraisals rendered by him as certified 2 appraisals. 3 "Subcommittee." The Real Estate Appraiser Subcommittee of 4 the State Real Estate Commission established pursuant to the 5 provisions of this act. 6 CHAPTER 3 7 SCOPE OF REGULATIONS 8 Section 301. Compliance. 9 A State-certified real estate appraiser must comply with the 10 standards provided in this act, the Financial Institutions 11 Reform, Recovery and Enforcement Act of 1989 (Public Law 101-73) 12 and applicable regulations for the development and communication 13 of real estate appraisals for any appraisals of real estate 14 located in this Commonwealth. 15 Section 302. Real estate appraiser certification required. 16 It shall be unlawful, on or after July 1, 1991, for any 17 person to hold himself out as a State-certified real estate 18 appraiser or to perform appraisals required by the Financial 19 Institutions Reform, Recovery and Enforcement Act of 1989 20 (Public Law 101-73), to be performed by a State-certified or 21 State-licensed real estate appraiser who has not been certified 22 by the subcommittee to perform real estate appraisals. Nothing 23 in this act shall prohibit a person who is licensed under the 24 act of February 19, 1980 (P.L.15, No.9), known as the Real 25 Estate Licensing and Registration Act, from performing a real 26 property appraisal pursuant to that act without being a State- 27 certified real estate appraiser if that appraisal is not 28 required by the Financial Institutions Reform, Recovery and 29 Enforcement Act of 1989 to be performed by a State-certified or 30 a State-licensed real estate appraiser. The subcommittee shall 19890S0756B2367 - 6 -
1 postpone the prohibition on the performance of appraisals 2 without certification from on or after July 1, 1991, to on or 3 after a later date upon notice that such prohibition has been 4 postponed pursuant to the Financial Institutions Reform, 5 Recovery and Enforcement Act of 1989. 6 CHAPTER 5 7 REAL ESTATE APPRAISERS SUBCOMMITTEE 8 Section 501. Subcommittee creation. 9 There is hereby created within the State Real Estate 10 Commission the Real Estate Appraisers Subcommittee which shall 11 consist of the commissioner or a designee of the commissioner 12 and six members appointed by the Governor, with the advice and 13 consent of a majority of the members elected to the Senate, two 14 of whom shall be public members and four of whom shall be real 15 estate appraisers. 16 Section 502. Terms. 17 (a) General rule.--The term of each professional and public 18 member shall be four years. Upon expiration of their terms, 19 members of the subcommittee shall continue to hold office until 20 the appointment and qualification of their successors but not 21 longer than six months beyond the four-year period. In the event 22 that any of the members shall die or resign or otherwise become 23 disqualified during his or her term, a successor shall be 24 appointed in the same way and with the same qualifications and 25 shall hold office for the unexpired term. No member shall be 26 eligible for appointment to serve more than two consecutive 27 terms. 28 (b) Initial appointments.--Within 90 days of the effective 29 date of this act, the Governor shall nominate two professional 30 members to serve a four-year term; one public member and one 19890S0756B2367 - 7 -
1 professional member to serve three-year terms; and one public 2 member and one professional member to serve two-year terms. 3 Section 503. Qualifications. 4 (a) Real estate appraisers.--The real estate appraiser 5 members of the subcommittee shall be members in good standing of 6 a nationally recognized appraisal organization that requires 7 appraisal experience, education and testing, as well as 8 adherence to standards of professional practice, to qualify for 9 and retain membership in good standing. 10 (b) Public members.--The public members of the subcommittee 11 shall not be licensees of the department nor real estate 12 appraisers nor employees of any institution engaged in mortgage 13 lending. 14 (c) Certification after 1991.--The real estate appraiser 15 members appointed after January 1, 1991, shall be State- 16 certified real estate appraisers actively engaged in the 17 practice of real estate appraising. 18 Section 504. Meetings. 19 The subcommittee shall meet at least once each calendar 20 quarter to conduct its business. Places of future meetings shall 21 be decided by the vote of members at meetings. The subcommittee 22 shall meet within 30 days after the appointment of its initial 23 members and set up operating procedures and an application form 24 for certifying appraisers. It shall be the responsibility of the 25 subcommittee to circulate these forms and educate the public to 26 the requirements of certification. 27 Section 505. Officers, quorum and removal. 28 (a) Annual selection of officers.--The members of the 29 subcommittee shall annually select, from among its members, a 30 chairman, a vice chairman and a secretary. 19890S0756B2367 - 8 -
1 (b) Quorum.--A quorum of the subcommittee shall be four 2 members. 3 (c) Attendance at meetings.--A member who fails to attend 4 three consecutive meetings shall forfeit his seat unless the 5 commissioner, upon written request from the member, excuses the 6 member because of illness or death of a family member. 7 (d) Attendance at seminars.--A public member who fails to 8 attend two consecutive statutorily mandated seminars in 9 accordance with section 813(e) of the act of April 9, 1929 10 (P.L.177, No.175), known as The Administrative Code of 1929, 11 shall forfeit his seat unless the commissioner, upon written 12 request from the public member, excuses the public member from a 13 meeting because of illness or the death of a family member. 14 (e) Sunset.--The subcommittee is subject to evaluation, 15 review and termination within the time and in the manner 16 provided in the act of December 22, 1981 (P.L.508, No.142), 17 known as the Sunset Act. 18 Section 506. Expenses. 19 Each member of the subcommittee other than the commissioner 20 shall receive reimbursement for reasonable traveling, hotel and 21 other necessary expenses incurred in the performance of their 22 duties in accordance with Commonwealth regulations and per diem 23 compensation at the rate of $60 per day for the time actually 24 devoted to the business of the subcommittee. 25 Section 507. Rules and regulations. 26 The subcommittee shall promulgate rules and regulations in 27 aid or in furtherance of this act. 28 Section 508. Powers and duties of subcommittee. 29 The subcommittee shall have the following powers and duties: 30 (1) Establish educational programs and research projects 19890S0756B2367 - 9 -
1 related to the appraisal of real estate. 2 (2) Establish the administrative procedures for 3 processing applications and issuing certificates for State- 4 certified real estate appraisers and for disciplinary 5 proceedings pursuant to the provisions of this act. 6 (3) To contract with a professional testing organization 7 for the preparation and administration of the examination for 8 each category of State-certified real estate appraisers, in 9 accordance with section 812.1(a) of the act of April 9, 1929 10 (P.L.177, No.175), known as The Administrative Code of 1929, 11 and the Financial Institutions Reform, Recovery and 12 Enforcement Act of 1989 (Public Law 101-73), and to establish 13 prior to the administration of each examination an 14 appropriate minimum passing score, in keeping with the 15 purposes of this act. The examination shall be a written 16 examination in accordance with the provisions of section 903. 17 (4) Further define by regulation and with respect to 18 each category of State-certified real estate appraisers the 19 type of educational experience, appraisal experience and 20 equivalent experience that will meet the statutory 21 requirements of this act. 22 (5) Further define by regulation and with respect to 23 each category of State-certified real estate appraisers the 24 continuing education requirements for the renewal of 25 certification that will meet the statutory requirements 26 provided in this act. 27 (6) Adopt standards for the development and 28 communication of real estate appraisals, and adopt 29 regulations explaining and interpreting the standards of the 30 Appraisal Foundation. 19890S0756B2367 - 10 -
1 (7) Perform such other functions and duties as may be 2 necessary in carrying out this act including, but not limited 3 to, the review from time to time the standards for the 4 development and communication of real estate appraisals. 5 (8) To deny, approve, issue, revoke, suspend or renew 6 certifications of real estate appraisers pursuant to this act 7 and to conduct hearings in connection therewith. 8 (9) To establish fees for the operation of the 9 subcommittee, including fees for the issuance and renewal of 10 certificates and for examinations. 11 (10) To conduct hearings upon complaints concerning 12 violations of the provisions of this act and the rules and 13 regulations adopted pursuant to this act and seek the 14 prosecution and enjoinder of all such violations. 15 (11) To expend moneys necessary to the proper carrying 16 out of its assigned duties. 17 (12) To submit annually a report to the Professional 18 Licensure Committee of the House of Representatives and to 19 the Consumer Protection and Professional Licensure Committee 20 of the Senate containing a description of the types of 21 complaints received, status of the cases, subcommittee action 22 which has been taken and length of time from the initial 23 complaint to final subcommittee resolution. 24 (13) To submit annually to the department an estimate of 25 the financial requirement of the subcommittee for its 26 administrative, investigative, legal and miscellaneous 27 expenses. 28 (14) To submit annually to the Appropriations Committees 29 of the House of Representatives and the Senate, 15 days after 30 the Governor has submitted his budget to the General 19890S0756B2367 - 11 -
1 Assembly, a copy of the budget request for the upcoming 2 fiscal year which the subcommittee previously submitted to 3 the department. 4 Section 509. Registry. 5 The subcommittee shall maintain a registry of the names and 6 addresses of people certified under this act. The subcommittee 7 shall retain these records and all application materials 8 submitted to it. 9 Section 510. Annual reports. 10 The subcommittee shall file with the department an annual 11 report of its activities, including a complete statement of the 12 receipts and disbursements of the subcommittee. 13 CHAPTER 7 14 REVENUE 15 Section 701. Funding. 16 All fees shall be paid into the subcommittee's operating 17 account. 18 Section 702. Fees. 19 (a) Establishment.--All fees required under this act shall 20 be fixed by the subcommittee by regulation and shall be subject 21 to review in accordance with the act of June 25, 1982 (P.L.633, 22 No.181), known as the Regulatory Review Act. If the projected 23 revenues to be generated by fees, fines and civil penalties 24 imposed in accordance with the provisions of this act are not 25 sufficient to match expenditures over a two-year period, the 26 subcommittee shall increase those fees by regulation, subject to 27 review in accordance with the Regulatory Review Act, so that the 28 projected revenues will meet or exceed projected expenditures. 29 (b) Power of bureau to increase fees.--If the Bureau of 30 Professional and Occupational Affairs determines that the fees 19890S0756B2367 - 12 -
1 established by the subcommittee are inadequate to meet the 2 minimum enforcement efforts required, then the bureau, after 3 consultation with the subcommittee, shall increase the fees by 4 regulation, subject to review in accordance with the Regulatory 5 Review Act, so that adequate revenue is raised to meet the 6 required enforcement effort. 7 (c) Additional fees.--In addition to fees established 8 pursuant to this act, the subcommittee is authorized to collect 9 and transmit to the appraisal subcommittee established pursuant 10 to the Financial Institutions Reform, Recovery and Enforcement 11 Act of 1989 (Public Law 101-73 § 1011) fees required under that 12 act. 13 CHAPTER 9 14 CERTIFICATION PROCESS 15 Section 901. Examinations. 16 (a) Applications.--Applications for examinations, original 17 certification and renewal certification made pursuant to this 18 act shall be made in writing to the subcommittee, on forms 19 provided by the subcommittee, evidencing that: 20 (1) He or she is of good moral character. 21 (2) His or her application has been accompanied by the 22 application fee. 23 (3) He or she has not been convicted of a felony under 24 the act of April 14, 1972 (P.L.233, No.64), known as The 25 Controlled Substance, Drug, Device and Cosmetic Act, or of an 26 offense under the laws of another jurisdiction, which, if 27 committed in this Commonwealth, would be a felony under The 28 Controlled Substance, Drug, Device and Cosmetic Act, unless: 29 (i) at least ten years have elapsed from the date of 30 conviction; 19890S0756B2367 - 13 -
1 (ii) the applicant satisfactorily demonstrates to 2 the subcommittee that he or she has made significant 3 progress in personal rehabilitation since the conviction, 4 such that licensure of the applicant should not be 5 expected to create a substantial risk of harm to the 6 health and safety of his or her clients or the public or 7 a substantial risk of further criminal violations; and 8 (iii) the applicant otherwise satisfies the 9 qualifications contained in or authorized by this act. As 10 used in this paragraph, the term "convicted" shall 11 include a judgment, an admission of guilt or a plea of 12 nolo contendere. 13 (b) Fee.--Appropriate fees, as fixed by the subcommittee 14 pursuant to section 702, shall accompany all applications for 15 examination, original certification and renewal certification. 16 (c) Statement.--At the time of filing an application for 17 certification, each applicant shall sign a pledge to comply with 18 the standards set forth in this act and state that the applicant 19 understands the types of misconduct for which disciplinary 20 proceedings may be initiated against a State-certified real 21 estate appraiser, as set forth in this act. 22 Section 902. Classes of certification. 23 There shall be two classes of certification for certified 24 real estate appraisers. One class shall consist of those persons 25 applying for certification relating solely to the appraisal of 26 residential real property of one to four units, and up to 12 27 units when a net income capitalization analysis is not required 28 by the terms of the assignment. The other class of certification 29 shall consist of those persons applying for a general 30 certification relating to the appraisal of both residential and 19890S0756B2367 - 14 -
1 nonresidential real property without limitation. The application 2 for examination, original certification and renewal 3 certification shall specify the classification being applied 4 for. 5 Section 903. Written examination; contents. 6 An original certification as a State-certified real estate 7 appraiser shall not be issued to any person who has not 8 demonstrated through a written examination process that that 9 person possesses the following: 10 (1) Appropriate knowledge of technical terms commonly 11 used in or related to real estate appraising, appraisal 12 report writing and economic concepts applicable to real 13 estate. 14 (2) Basic understanding of real estate law. 15 (3) Adequate knowledge of theories of depreciation, cost 16 estimating, methods of capitalization and the mathematics of 17 real estate appraisal. 18 (4) Understanding of the principles of land economics, 19 real estate appraisal processes and of problems likely to be 20 encountered in the gathering, interpreting and processing of 21 data in carrying out appraisal disciplines. 22 (5) Understanding of the standards for the development 23 and communication of real estate appraisals as provided in 24 this act. 25 (6) Understanding the types of misconduct for which 26 disciplinary proceedings may be initiated against a State- 27 certified real estate appraiser, as set forth in this act. 28 Section 904. Prerequisites. 29 (a) General certification.--As a prerequisite to taking the 30 examination for the general certification relating to the 19890S0756B2367 - 15 -
1 appraisal of real property, an applicant shall present evidence 2 satisfactory to the subcommittee that the applicant possesses 3 the equivalent of three years of full-time experience in real 4 property appraisal, acquired within a period of five years 5 immediately preceding the filing of the application for 6 certification, or the equivalent thereof, and either: 7 (1) has a college degree plus 15 classroom hours related 8 to standards of professional practice and the provisions of 9 this act; or 10 (2) has successfully completed not less than 150 11 classroom hours of academic experience in subjects related to 12 real estate appraisal plus 15 classroom hours related to 13 standards of professional practice and the provisions of this 14 act. 15 (b) Residential real estate appraisal.--As a prerequisite to 16 taking the examination for certification relating solely to the 17 appraisal of residential real property of one to four units, and 18 up to 12 units when a net income capitalization analysis is not 19 required by the terms of the assignment, an applicant shall 20 present evidence satisfactory to the subcommittee that the 21 applicant possesses the equivalent of two years of full-time 22 experience in real property appraisal, acquired within a period 23 of five years immediately preceding the filing of the 24 application for certification, or the equivalent thereof, and 25 either: 26 (1) has a college degree plus 15 classroom hours related 27 to standards of professional practice and the provisions of 28 this act; or 29 (2) has successfully completed not less than 60 30 classroom hours of academic experience in subjects related to 19890S0756B2367 - 16 -
1 real estate appraisal plus 15 classroom hours related to 2 standards of professional practice and the provisions of this 3 act. 4 (c) Definition of subjects.--The subcommittee shall 5 prescribe and define the subjects related to real property 6 appraisal, and the full-time experience in real property 7 appraisal which will satisfy the requirements of subsections (a) 8 and (b). 9 (d) Statement of experience.--Each applicant for 10 certification shall furnish a detailed statement of the real 11 estate appraisal assignments for each year for which experience 12 is claimed by the applicant. Upon request, the applicant shall 13 furnish to the subcommittee, for examination, copies of 14 appraisal reports which the applicant has prepared in the course 15 of appraisal experience. 16 Section 905. False statements. 17 It is unlawful for any person to knowingly make any false 18 statements with respect to that person's identity in connection 19 with an application for examination or in the taking of an 20 examination for certification as a State-certified real estate 21 appraiser. 22 Section 906. Denial of certification. 23 The subcommittee may, in accordance with the provisions of 24 this act relating to hearings, deny the issuance of a 25 certificate as a State-certified real estate appraiser to an 26 applicant on any of the grounds enumerated in Chapter 13. 27 Section 907. Duration of certification. 28 The term of a certificate issued under the authority of this 29 act shall be two years from the date of issuance. The expiration 30 date of the certificate shall appear on the certificate, and no 19890S0756B2367 - 17 -
1 other notice of its expiration need be given to its holder. 2 Section 908. Nonresidents. 3 (a) Service of process.--Every applicant for certification 4 under this act who is not a resident of this Commonwealth shall 5 submit, with the application for certification, an irrevocable 6 consent that service of process upon the nonresident applicant 7 may be made by delivery of the process to the Secretary of the 8 Commonwealth if the plaintiff, in an action against the 9 applicant in a court of this Commonwealth arising out of the 10 applicant's activities as a State-certified real estate 11 appraiser, cannot, in the exercise of due diligence, effect 12 personal service upon the applicant. 13 (b) Certification of nonresident.--A nonresident of this 14 Commonwealth who has complied with the provisions of subsection 15 (a) may obtain a certificate as a State-certified real estate 16 appraiser by conforming to all the provisions of this act 17 relating to State-certified real estate appraisers. 18 Section 909. Recognition of other State certification. 19 The subcommittee shall issue a certificate as a State- 20 certified real estate appraiser to a holder of a certificate 21 issued by another state, upon a showing that both of the 22 following requirements are met: 23 (1) The applicant passed the examination required for 24 issuance of the applicant's certificate with passing grades 25 that would have been passing grades at the time in this 26 Commonwealth. 27 (2) If the applicant is applying for: 28 (i) general certification, the applicant shall meet 29 the requirements of section 904(a); or 30 (ii) certification relating solely to the appraisal 19890S0756B2367 - 18 -
1 of residential real property of one to four units and up 2 to 12 units when a net income capitalization analysis is 3 not required by the terms of the assignment, the 4 applicant shall meet the requirements of section 904(b). 5 Section 910. Renewals. 6 (a) General rule.--To obtain a renewal certificate as a 7 State-certified real estate appraiser, the holder of a current, 8 valid certificate shall make application and pay the prescribed 9 fee to the subcommittee not earlier than 120 days nor later than 10 30 days prior to the expiration date of the certificate held. 11 With the application for renewal, the State-certified real 12 estate appraiser shall present evidence in the form prescribed 13 by the subcommittee of having completed the continuing education 14 requirements for renewal set forth in Chapter 11. 15 (b) Extension of time.--If the subcommittee determines that 16 an applicant has failed to meet the requirements for renewal of 17 certification through mistake, misunderstanding or circumstances 18 beyond the control of the applicant, the subcommittee may extend 19 the term of the certificate for a period not to exceed six 20 months, upon payment by the applicant of a prescribed fee for 21 the extension. If the applicant satisfies the requirement for 22 renewal during the extended time of certification, the beginning 23 date of the new renewal certificate shall be the day following 24 the expiration of the certificate previously held by the 25 applicant. 26 Section 911. Late renewals. 27 If the person fails to renew a certificate of a State- 28 certified real estate appraiser prior to its expiration or 29 within a period of extension granted by the subcommittee 30 pursuant to section 910, the person may obtain a renewal 19890S0756B2367 - 19 -
1 certificate by satisfying all the requirements for renewal and 2 by the payment of a late renewal fee in an amount equal to one 3 and one-third times the renewal fee in effect at the time the 4 application is made for late renewal of the certificate. 5 Section 912. No corporate certification. 6 No certificate shall be issued under the provisions of this 7 act to a corporation, partnership, firm or group. Nothing herein 8 shall preclude a State-certified real estate appraiser from 9 rendering appraisals for or on behalf of a corporation, 10 partnership, firm or group practice, provided that the appraisal 11 report is prepared by, or under the immediate direction of, the 12 State-certified real estate appraiser and is signed by the 13 State-certified real estate appraiser. 14 Section 913. Address of principal office. 15 Each State-certified real estate appraiser shall advise the 16 subcommittee of the address of the appraiser's principal place 17 of business and all other addresses at which that appraiser is 18 currently engaged in the business of preparing real property 19 appraisal reports. Whenever a State-certified real estate 20 appraiser changes a place of business, the appraiser shall amend 21 the certificate issued by the subcommittee to reflect the change 22 and shall immediately give written notification of the change to 23 the subcommittee. 24 Section 914. Signatures of subcommittee members. 25 A certificate issued under the authority of this act shall 26 bear the signatures or facsimile signatures of the members of 27 the subcommittee and a certificate number assigned by the 28 subcommittee. 29 Section 915. Use of certification number. 30 Each State-certified real estate appraiser shall place the 19890S0756B2367 - 20 -
1 certificate number adjacent to or immediately below the 2 designation "State-Certified Residential Appraiser" or "State- 3 Certified Real Estate Appraiser" when used in an appraisal 4 report or in a contract or other instrument used by the 5 certificate holder in conducting real property appraisal 6 activities. 7 Section 916. Limitation on use of term. 8 The term "State-Certified Real Estate Appraiser" may only be 9 used to refer to individuals who hold the certificate and may 10 not be used following or immediately in connection with the name 11 or signature of a firm, partnership, corporation or group, or in 12 such manner that it might be interpreted as referring to a firm, 13 partnership, corporation, group or anyone other than an 14 individual holder of the certificate. 15 Section 917. Reinstatement options. 16 Unless ordered to do so by Commonwealth Court or an appeal 17 therefrom, the subcommittee shall not reinstate the 18 certification of a person to appraise real estate, pursuant to 19 this act, which has been revoked. Any person whose certification 20 has been revoked may apply for reinstatement, after a period of 21 at least five years, but must meet all of the certification 22 qualifications of this act, including the examination 23 requirement, if he desires to appraise real estate as a 24 certified real estate appraiser pursuant to this act at any time 25 after such revocation. 26 Section 918. Reporting of multiple certification. 27 Any certified real estate appraiser of this Commonwealth who 28 is also certified as a real estate appraiser in any other state, 29 territory or country shall report this information to the 30 subcommittee on the biennial renewal application. Any 19890S0756B2367 - 21 -
1 disciplinary action taken in any other state, territory or 2 country shall be reported to the subcommittee on the biennial 3 renewal application, or within 90 days of disposition, whichever 4 is sooner. Multiple certification shall be noted by the 5 subcommittee on the real estate appraiser's record, and such 6 state, territory or country shall be notified by the 7 subcommittee of any disciplinary actions taken against such 8 certified real estate appraiser in this Commonwealth. 9 Section 919. Surrender of suspended or revoked certification. 10 The subcommittee shall require a person whose certification 11 has been suspended or revoked to return the certification in 12 such manner as the subcommittee directs. Failure to do so shall 13 be a misdemeanor of the third degree. 14 CHAPTER 11 15 CONTINUING EDUCATION 16 Section 1101. General rule. 17 (a) Prerequisite.--As a prerequisite to renewal of 18 certification, a State-certified real estate appraiser shall 19 present evidence satisfactory to the subcommittee of having met 20 the continuing education requirements of this act. 21 (b) Basic continuing education requirement.--The basic 22 continuing education requirement for renewal of certification 23 shall be the completion by the applicant, during the immediately 24 preceding term of certification, of not less than 30 classroom 25 hours of instruction in courses which have received the approval 26 of the subcommittee. No credit shall be given for any course in 27 office management or practice building. 28 (c) Alternatives.--In lieu of meeting the requirements of 29 subsection (b), an applicant for recertification may satisfy all 30 or part of the requirements of the act by presenting evidence of 19890S0756B2367 - 22 -
1 the following: 2 (1) Completion of courses of study determined by the 3 subcommittee to be equivalent, for continuing education 4 purposes, to courses approved by the subcommittee pursuant to 5 subsection (b). 6 (2) Participation other than as a student in educational 7 processes and programs in real property appraisal theory, 8 practices or techniques, including, but not necessarily 9 limited to, teaching, program development and preparation of 10 textbooks, monographs, articles and other instructional 11 materials. 12 Section 1102. Additional rules and regulations. 13 (a) Promulgation.--The subcommittee shall adopt regulations 14 for implementation of the provisions of this act to the end of 15 assuring that persons renewing their certifications as State- 16 certified real estate appraisers have current knowledge of real 17 property appraisal theories, practices and techniques which will 18 provide a high degree of service and protection to those members 19 of the public with whom they deal in a professional relationship 20 under authority of the certification. The regulation shall 21 prescribe the following: 22 (1) Policies and procedures for obtaining subcommittee 23 approval of courses of instruction in accordance with section 24 1101(b). 25 (2) Standards, policies and procedures to be applied by 26 the subcommittee in evaluating applicants' claims of 27 equivalency in accordance with section 1101(c). 28 (3) Standards, monitoring methods and systems for 29 recording attendance to be employed by course sponsors as a 30 prerequisite to subcommittee approval of courses for credit. 19890S0756B2367 - 23 -
1 (b) Materials available to subcommittee.--In adopting 2 regulations pursuant to subsection (a)(1), the subcommittee may 3 utilize courses of instruction, seminars and other real property 4 appraisal education courses or programs previously or hereafter 5 developed by or under the auspices of professional appraisal 6 organizations and utilized by those associations for purposes of 7 designation, certification or recertification of the members of 8 the association. 9 (c) Effect of repeal on renewal credit.--No amendment or 10 repeal of a regulation adopted by the subcommittee pursuant to 11 this section shall operate to deprive a State-certified real 12 estate appraiser of credit toward renewal of certification for 13 any course of instruction completed by the applicant prior to 14 the amendment or repeal of the regulation which would have 15 qualified for continuing education credit under the regulation 16 as it existed prior to the repeal or amendment. 17 Section 1103. Mandatory requirement. 18 On and after January 1, 1991, a certification as a State- 19 certified real estate appraiser that has been revoked as a 20 result of disciplinary action by the subcommittee shall not be 21 reinstated unless the applicant presents evidence of completion 22 of the continuing education required by this act. This 23 requirement of evidence of continuing education shall not be 24 imposed upon an applicant for reinstatement who has been 25 required to successfully complete the examination for State- 26 certified real estate appraiser as a condition to reinstatement 27 of certification. 28 CHAPTER 13 29 DISCIPLINARY PROCEEDINGS 30 Section 1301. General rule. 19890S0756B2367 - 24 -
1 The rights of any holder under a certificate as a State- 2 certified real estate appraiser may be revoked or suspended, or 3 the holder of the certificate may be otherwise disciplined in 4 accordance with the provisions of this act relating to hearings, 5 upon any of the grounds set forth in this act. 6 Section 1302. Disciplinary action. 7 (a) Investigation.--The subcommittee may investigate the 8 actions of a State-certified real estate appraiser, and may 9 revoke or suspend the rights of a certificate holder or 10 otherwise discipline a State-certified real estate appraiser for 11 any of the following acts: 12 (1) Procuring or attempting to procure a certificate 13 pursuant to this act by knowingly making a false statement, 14 submitting false information, refusing to provide complete 15 information in response to a question in an application for 16 certification or through any form of fraud or 17 misrepresentation. 18 (2) Failing to meet the minimum qualifications 19 established by this act. 20 (3) Paying, or offering to pay, any valuable 21 consideration other than provided for by this act to any 22 member or employee of the subcommittee to procure a 23 certificate under this act. 24 (4) A conviction, including a conviction based upon a 25 plea of guilty or nolo contendere, of a crime which is 26 substantially related to the qualifications, functions and 27 duties of a person developing real estate appraisals and 28 communicating real estate appraisals to others. 29 (5) An act or omission involving dishonesty, fraud or 30 misrepresentation with intent to substantially benefit the 19890S0756B2367 - 25 -
1 certificate holder in his profession or with the intent to 2 substantially injure another person. 3 (6) Violation of any of the standards for the 4 development or communication of real estate appraisals as 5 provided in this act and the Uniform Standards of 6 Professional Appraisal Practice promulgated by the Appraisal 7 Standards Board of the Appraisal Foundation. 8 (7) Failure or refusal, without good cause, to exercise 9 reasonable diligence in developing an appraisal, preparing an 10 appraisal report or communicating an appraisal. 11 (8) Negligence or incompetence in developing an 12 appraisal, in preparing an appraisal report or in 13 communicating an appraisal. 14 (9) Willfully disregarding or violating any of the 15 provisions of this act or the regulations of the subcommittee 16 for the administration and enforcement of the provisions of 17 this act. 18 (10) Accepting an appraisal assignment when the 19 employment itself is contingent upon the appraiser reporting 20 a predetermined analysis or opinion, or where the fee to be 21 paid for the performance of the appraisal assignment is 22 contingent upon the opinion, conclusion or valuation reached, 23 or upon the consequence resulting from the appraisal 24 assignment. 25 (11) Violating the confidential nature of records to 26 which the appraiser gained access through employment or 27 engagement as an appraiser. 28 (12) Making the fee or compensation contingent upon an 29 award or recovery in any case where the amount of the award 30 or recovery would be affected by the appraisal. 19890S0756B2367 - 26 -
1 (13) Basing the fee or compensation on a percentage of 2 the final estimate of value. 3 (14) Contracting for or accepting compensation for 4 appraisal services in the form of a commission, rebate, 5 division of brokerage commissions or any other similar form. 6 (b) Basis for action.--An act, omission or crime that is a 7 ground for disciplinary action under this section shall 8 constitute a basis for disciplinary action against another 9 license of the State-certified real estate appraiser if the act 10 or omission involved is substantially related to the 11 qualification, functions or duties required of a person acting 12 under authority of the other license. 13 Section 1303. Effect of civil suit. 14 The subcommittee may suspend or revoke the certificate of a 15 State-certified real estate appraiser based upon a final civil 16 judgment against the person on grounds of fraud, 17 misrepresentation or deceit in making of an appraisal of real 18 property. In a disciplinary proceeding based upon the judgment, 19 the State-certified real estate appraiser shall be afforded 20 notice and the opportunity to present matters in mitigation and 21 extenuation, but may not collaterally attack the civil judgment. 22 Section 1304. Conduct of proceedings. 23 Disciplinary proceedings before the subcommittee shall be 24 conducted in accordance with 2 Pa.C.S. (relating to 25 administrative law and procedure). 26 Section 1305. Subpoenas. 27 (a) Power to issue.--The subcommittee shall have the 28 authority to issue subpoenas, upon application of an attorney 29 responsible for representing the Commonwealth in disciplinary 30 matters before the subcommittee, for the purpose of 19890S0756B2367 - 27 -
1 investigating alleged violations of the disciplinary provisions 2 administered by the subcommittee. The subcommittee shall have 3 the power to subpoena witnesses, to administer oaths, to examine 4 witnesses and to take such testimony or compel the production of 5 such books, records, papers and documents as it may deem 6 necessary or proper in, and pertinent to, any proceeding, 7 investigation or hearing held or had by it. Client records may 8 not be subpoenaed without consent of the client or without order 9 of a court of competent jurisdiction on a showing that the 10 records are reasonably necessary for the conduct of the 11 investigation. The court may impose such limitations on the 12 scope of the subpoena as are necessary to prevent unnecessary 13 intrusion into client confidential information. The subcommittee 14 is authorized to apply to Commonwealth Court to enforce its 15 subpoenas. 16 (b) Notification of subcommittee.--An attorney responsible 17 for representing the Commonwealth in disciplinary matters before 18 the subcommittee shall notify the subcommittee immediately upon 19 receiving notification of an alleged violation of this act. The 20 subcommittee shall maintain current records of all reports of 21 alleged violations and periodically review the records for the 22 purpose of determining that each alleged violation has been 23 resolved in a timely manner. 24 Section 1306. Unlawful practice. 25 (a) Unlawful practice prohibited.--It shall be unlawful for 26 any person to hold himself out as a certified real estate 27 appraiser without possessing a valid, unexpired, unrevoked and 28 unsuspended certification issued under this act. 29 (b) Injunction.--Unlawful practice may be enjoined by the 30 courts upon petition of the commissioner or the subcommittee. In 19890S0756B2367 - 28 -
1 any proceeding under this section, it shall not be necessary to 2 show that any person is individually injured by the actions 3 complained of. If the court finds that the respondent has 4 violated this section, it shall enjoin him from so practicing 5 until he has been duly certificated. Procedure in such cases 6 shall be the same as in any other injunction suit. 7 (c) Remedy cumulative.--The injunctive relief provided in 8 this section shall be in addition to any other civil or criminal 9 prosecution and punishment. 10 CHAPTER 15 11 APPRAISAL REPORTS 12 Section 1501. Reports. 13 (a) Format.--Any certified appraisal report shall be 14 presented in clear and unequivocal terms with sufficient 15 information to enable the user of that report, or any person who 16 may be expected to rely on it, to understand it properly, and in 17 such a manner to avoid being misleading. 18 (b) Items covered.--Any written certified appraisal report 19 shall include, but not be limited to, all of the following: 20 (1) A discussion of any qualifications of the opinions 21 or conclusions contained in the report, or in contrast with 22 generally recognized appraisal practices, any limitations on 23 the scope of the report or omissions. 24 (2) A statement as to whether any person other than the 25 appraiser whose signature appears on the report prepared the 26 analysis, opinion or conclusions contained in the report, and 27 if so, the identity of that person. 28 (3) A statement as to whether the person signing the 29 report has a present or contemplated future interest in the 30 property which is the subject of the appraisal or has a 19890S0756B2367 - 29 -
1 relationship with the owner of the property or with the 2 prospective user of the appraisal data which would constitute 3 a conflict of interest. If the report contains an affirmative 4 statement with respect to these factors, it shall also 5 include a conspicuous and accurate statement of the 6 relationship. 7 (4) A certification that the statements of fact 8 contained in the report are true and correct to the best 9 knowledge and belief of the appraiser. 10 (5) A certification that the analysis, opinion and 11 conclusions were developed and the report was prepared in 12 conformity with the requirements of this act or a statement 13 of the particulars for which that certification is not made. 14 CHAPTER 17 15 MISCELLANEOUS 16 Section 1701. Records. 17 A State-certified real estate appraiser shall retain, for two 18 years, appraisal reports and supporting data assembled and 19 formulated by the appraiser in preparing appraisal reports. The 20 period of retention of the records applicable to each engagement 21 of the services of the appraiser shall run from the date of the 22 submittal of the appraisal report to the client unless, within 23 such two-year period, the appraiser is notified that the 24 appraisal or report is involved in litigation. These records 25 shall be made available by the State-certified real estate 26 appraiser for inspection and copying by the subcommittee on 27 reasonable notice to the appraiser. 28 Section 1702. Penalties. 29 (a) Criminal penalty.--Any person who willfully violates or 30 knowingly participates in the violation of section 905 commits a 19890S0756B2367 - 30 -
1 misdemeanor in the third degree. 2 (b) Civil penalty.--In addition to any other civil remedy or 3 criminal penalty provided for in this act, the subcommittee, by 4 a vote of the majority of the maximum number of the authorized 5 membership of the subcommittee as provided by law, or by a vote 6 of the majority of the duly qualified and confirmed membership 7 or a minimum of three members, whichever is greater, may levy a 8 civil penalty of up to $1,000 on any current certificate holder 9 who violates any provision of this act or on any person who 10 holds himself out as a certified real estate appraiser without 11 being so certified pursuant to this act. The subcommittee shall 12 levy this penalty only after affording the accused party the 13 opportunity for a hearing as provided in 2 Pa.C.S. (relating to 14 administrative law and procedure). 15 (c) Disposition.--All fines and civil penalties imposed in 16 accordance with this section shall be paid into the Professional 17 Licensure Augmentation Account. 18 Section 1703. Action for damages. 19 Any person who has been damaged, or can demonstrate that he 20 will potentially be irreparable damaged, may bring any action 21 for damages, equitable relief, or both, against any person who 22 violates this act. The court may award costs and reasonable 23 attorney fees to the prevailing party, as determined by the 24 court. The rights and remedies provided in this act are not 25 exclusive of other rights or remedies provided by law. 26 Section 1704. Appropriation. 27 The sum of $85,000, or as much thereof as may be necessary, 28 is hereby appropriated from the Professional Licensure 29 Augmentation Account within the General Fund to the Bureau of 30 Professional and Occupational Affairs in the Department of State 19890S0756B2367 - 31 -
1 for the payment of costs of processing certificates and 2 renewals, for the operation of the subcommittee and for other 3 general costs of the bureau operations relating to this act. The 4 appropriation granted shall be repaid by the subcommittee within 5 six years of the beginning of issuance of certificates by the 6 subcommittee. 7 CHAPTER 19 8 EFFECTIVE DATE 9 Section 1901. Effective date. 10 This act shall take effect immediately. 11 SECTION 1. SHORT TITLE. <-- 12 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE REAL ESTATE 13 APPRAISERS CERTIFICATION ACT. 14 SECTION 2. DEFINITIONS. 15 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL 16 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 17 CONTEXT CLEARLY INDICATES OTHERWISE: 18 "APPLICANT." A NATURAL PERSON. 19 "APPRAISAL." AN ANALYSIS, OPINION OR CONCLUSION RELATING TO 20 THE NATURE, QUALITY, VALUE OR UTILITY OF SPECIFIED INTERESTS IN, 21 OR ASPECTS OF, IDENTIFIED REAL PROPERTY, FOR OR IN EXPECTATION 22 OF COMPENSATION. 23 "BOARD." THE STATE BOARD OF CERTIFIED REAL ESTATE APPRAISERS 24 WITHIN THE BUREAU OF PROFESSIONAL AND OCCUPATIONAL AFFAIRS IN 25 THE DEPARTMENT OF STATE. 26 "SECRETARY." THE SECRETARY OF THE COMMONWEALTH OR HIS OR HER 27 DESIGNEE. 28 "STATE-CERTIFIED REAL ESTATE APPRAISER." A PERSON WHO HOLDS 29 A CURRENT VALID CERTIFICATE ISSUED TO HIM UNDER THE PROVISIONS 30 OF THIS ACT. 19890S0756B2367 - 32 -
1 SECTION 3. REAL ESTATE APPRAISER CERTIFICATION REQUIRED. 2 IT SHALL BE UNLAWFUL, ON OR AFTER JULY 1, 1991, FOR ANY 3 PERSON TO HOLD HIMSELF OUT AS A STATE-CERTIFIED REAL ESTATE 4 APPRAISER OR TO PERFORM APPRAISALS REQUIRED BY THE FINANCIAL 5 INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989 6 (PUBLIC LAW 101-73, 103 STAT. 183) TO BE PERFORMED BY A STATE- 7 CERTIFIED OR STATE-LICENSED REAL ESTATE APPRAISER UNLESS THAT 8 PERSON HOLDS A CURRENT, VALID CERTIFICATION FROM THE BOARD TO 9 PERFORM REAL ESTATE APPRAISALS. THE BOARD SHALL POSTPONE THE 10 PROHIBITION ON THE PERFORMANCE OF APPRAISALS WITHOUT 11 CERTIFICATION FROM ON OR AFTER JULY 1, 1991, TO ON OR AFTER A 12 LATER DATE UPON NOTICE THAT SUCH PROHIBITION HAS BEEN POSTPONED 13 PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND 14 ENFORCEMENT ACT OF 1989. NOTHING IN THIS ACT SHALL PROHIBIT A 15 PERSON WHO IS LICENSED OR EXEMPTED FROM LICENSURE UNDER THE ACT 16 OF FEBRUARY 19, 1980 (P.L.15, NO.9), KNOWN AS THE REAL ESTATE 17 LICENSING AND REGISTRATION ACT, FROM PERFORMING A REAL PROPERTY 18 APPRAISAL WITHOUT BEING A STATE-CERTIFIED REAL ESTATE APPRAISER 19 IF THAT APPRAISAL IS NOT REQUIRED BY THE FINANCIAL INSTITUTIONS 20 REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989 TO BE PERFORMED BY 21 A STATE-CERTIFIED OR A STATE-LICENSED REAL ESTATE APPRAISER. 22 SECTION 4. STATE BOARD OF CERTIFIED REAL ESTATE APPRAISERS. 23 (A) CREATION.--THERE IS HEREBY CREATED THE STATE BOARD OF 24 CERTIFIED REAL ESTATE APPRAISERS AS A DEPARTMENTAL 25 ADMINISTRATIVE BOARD IN THE DEPARTMENT OF STATE. THE BOARD SHALL 26 CONSIST OF SEVEN MEMBERS WHO ARE CITIZENS OF THE UNITED STATES 27 AND WHO HAVE BEEN RESIDENTS OF THIS COMMONWEALTH FOR A TWO-YEAR 28 PERIOD IMMEDIATELY PRIOR TO APPOINTMENT, TWO OF WHOM SHALL BE 29 PUBLIC MEMBERS, FOUR OF WHOM SHALL BE PERSONS WHO ARE STATE- 30 CERTIFIED REAL ESTATE APPRAISERS AND ONE OF WHOM SHALL BE THE 19890S0756B2367 - 33 -
1 SECRETARY OF THE COMMONWEALTH OR HIS OR HER DESIGNEE. FOR THE 2 INITIAL BOARD APPOINTMENTS, THE FOUR PROFESSIONAL MEMBERS NEED 3 NOT BE CERTIFIED AT THE TIME OF APPOINTMENT BUT SHALL BE MEMBERS 4 IN GOOD STANDING OF A NATIONALLY RECOGNIZED REAL ESTATE 5 APPRAISAL ORGANIZATION WHICH REQUIRES APPRAISAL EXPERIENCE, 6 EDUCATION AND TESTING, AS WELL AS ADHERENCE TO STANDARDS OF 7 PROFESSIONAL PRACTICE, TO QUALIFY FOR AND RETAIN MEMBERSHIP IN 8 GOOD STANDING. 9 (B) TERM OF OFFICE.--THE PROFESSIONAL AND PUBLIC MEMBERS 10 SHALL SERVE FOUR-YEAR TERMS, EXCEPT AS PROVIDED IN SUBSECTION 11 (C), AND SHALL BE APPOINTED BY THE GOVERNOR BY AND WITH THE 12 ADVICE AND CONSENT OF A MAJORITY OF THE MEMBERS ELECTED TO THE 13 SENATE. 14 (C) INITIAL APPOINTMENTS.--WITHIN 90 DAYS OF THE EFFECTIVE 15 DATE OF THIS ACT, THE GOVERNOR SHALL NOMINATE ONE PROFESSIONAL 16 MEMBER TO SERVE A FOUR-YEAR TERM; ONE PUBLIC MEMBER AND ONE 17 PROFESSIONAL MEMBER TO SERVE THREE-YEAR TERMS; ONE PUBLIC MEMBER 18 AND ONE PROFESSIONAL MEMBER TO SERVE TWO-YEAR TERMS; AND ONE 19 PROFESSIONAL MEMBER TO SERVE A ONE-YEAR TERM. 20 (D) CONTINUATION IN OFFICE.--EACH PROFESSIONAL AND PUBLIC 21 MEMBER SHALL CONTINUE IN OFFICE UNTIL A SUCCESSOR IS DULY 22 APPOINTED AND QUALIFIED BUT NO LONGER THAN SIX MONTHS AFTER THE 23 EXPIRATION OF THE TERM. IN THE EVENT THAT A BOARD MEMBER SHALL 24 DIE, RESIGN OR OTHERWISE BECOME DISQUALIFIED DURING THE TERM OF 25 OFFICE, A SUCCESSOR SHALL BE APPOINTED IN THE SAME WAY AND WITH 26 THE SAME QUALIFICATIONS AS SET FORTH IN THIS SECTION AND SHALL 27 HOLD OFFICE FOR THE UNEXPIRED PORTION OF THE UNEXPIRED TERM. 28 (E) LIMIT ON TERMS.--NO BOARD MEMBER SHALL BE ELIGIBLE FOR 29 APPOINTMENT TO SERVE MORE THAN TWO CONSECUTIVE FOUR-YEAR TERMS. 30 (F) FORFEITURE OF MEMBERSHIP.--A BOARD MEMBER WHO FAILS TO 19890S0756B2367 - 34 -
1 ATTEND THREE CONSECUTIVE MEETINGS SHALL FORFEIT HIS OR HER SEAT 2 UNLESS THE SECRETARY, UPON WRITTEN REQUEST FROM THE MEMBER, 3 FINDS THAT THE MEMBER SHOULD BE EXCUSED FROM A MEETING BECAUSE 4 OF ILLNESS OR THE DEATH OF A FAMILY MEMBER. 5 (G) COMPENSATION.--EACH MEMBER OF THE BOARD, EXCEPT THE 6 SECRETARY, SHALL RECEIVE PER DIEM COMPENSATION AT THE RATE OF 7 $60 PER DIEM WHEN ACTUALLY ATTENDING TO THE WORK OF THE BOARD. 8 MEMBERS SHALL ALSO RECEIVE REASONABLE TRAVELING, HOTEL AND OTHER 9 NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES 10 IN ACCORDANCE WITH COMMONWEALTH REGULATIONS. 11 (H) FORFEITURE FOR NONATTENDANCE.--A PUBLIC MEMBER WHO FAILS 12 TO ATTEND TWO CONSECUTIVE STATUTORILY MANDATED TRAINING SEMINARS 13 IN ACCORDANCE WITH SECTION 813(E) OF THE ACT OF APRIL 9, 1929 14 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929, 15 SHALL FORFEIT HIS OR HER SEAT UNLESS THE SECRETARY, UPON WRITTEN 16 REQUEST FROM THE PUBLIC MEMBER, FINDS THAT THE PUBLIC MEMBER 17 SHOULD BE EXCUSED FROM A MEETING BECAUSE OF ILLNESS OR THE DEATH 18 OF A FAMILY MEMBER. 19 (I) QUORUM.--A MAJORITY OF THE MEMBERS OF THE BOARD SERVING 20 IN ACCORDANCE WITH LAW SHALL CONSTITUTE A QUORUM FOR PURPOSES OF 21 CONDUCTING THE BUSINESS OF THE BOARD. A MEMBER MAY NOT BE 22 COUNTED AS PART OF A QUORUM OR VOTE ON ANY ISSUE UNLESS HE OR 23 SHE IS PHYSICALLY IN ATTENDANCE AT THE MEETING. 24 (J) MEETINGS.--THE BOARD SHALL MEET AT LEAST FOUR TIMES A 25 YEAR IN HARRISBURG. 26 (K) NOTICE.--REASONABLE NOTICE OF ALL MEETINGS SHALL BE 27 GIVEN IN CONFORMITY WITH THE ACT OF JULY 3, 1986 (P.L.388, 28 NO.84), KNOWN AS THE SUNSHINE ACT. 29 (L) OPERATING PROCEDURES.--THE BOARD SHALL MEET WITHIN 30 30 DAYS AFTER THE APPOINTMENT OF ITS INITIAL MEMBERS AND SET UP 19890S0756B2367 - 35 -
1 OPERATING PROCEDURES AND AN APPLICATION FORM FOR CERTIFYING 2 APPRAISERS. IT SHALL BE THE RESPONSIBILITY OF THE BOARD TO 3 CIRCULATE THESE FORMS AND EDUCATE THE PUBLIC TO THE REQUIREMENTS 4 OF CERTIFICATION. NO OTHER BOARD AND NO COMMISSION WITHIN THE 5 BUREAU OF PROFESSIONAL AND OCCUPATIONAL AFFAIRS SHALL BE 6 RESPONSIBLE, IN ANY MANNER, FOR THE POLICIES, PROCEDURES OR 7 OTHER SUBSTANTIVE MATTERS WHICH ARE WITHIN THE POWERS AND DUTIES 8 OF THE BOARD AS SET FORTH IN THIS ACT. 9 (M) ELECTION OF OFFICERS.--THE BOARD SHALL ELECT ANNUALLY 10 FROM ITS MEMBERSHIP A CHAIRMAN, A VICE CHAIRMAN AND A SECRETARY. 11 SECTION 5. POWERS AND DUTIES OF BOARD. 12 THE BOARD SHALL HAVE THE FOLLOWING POWERS AND DUTIES: 13 (1) TO PASS UPON THE QUALIFICATIONS AND FITNESS OF 14 APPLICANTS FOR CERTIFICATION AND TO ADOPT AND REVISE RULES 15 AND REGULATIONS REQUIRING APPLICANTS FOR CERTIFICATION TO 16 PASS EXAMINATIONS RELATING TO THEIR QUALIFICATIONS FOR 17 CERTIFICATION. 18 (2) TO ADOPT AND, FROM TIME TO TIME, REVISE SUCH RULES 19 AND REGULATIONS AS MAY BE NECESSARY TO CARRY OUT THE 20 PROVISIONS OF THIS ACT. SUCH REGULATIONS SHALL INCLUDE, BUT 21 NOT BE LIMITED TO, STANDARDS OF PROFESSIONAL APPRAISAL 22 PRACTICE REQUIRING THAT APPRAISALS BE PERFORMED IN ACCORDANCE 23 WITH GENERALLY ACCEPTED APPRAISAL STANDARDS AS REQUIRED 24 PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND 25 ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183). 26 (3) TO EXAMINE FOR, DENY, APPROVE, ISSUE, REVOKE, 27 SUSPEND OR RENEW CERTIFICATES OF APPRAISERS PURSUANT TO THIS 28 ACT AND TO CONDUCT HEARINGS IN CONNECTION THEREWITH. 29 (4) TO CONDUCT HEARINGS UPON COMPLAINTS CONCERNING 30 VIOLATIONS OF THE PROVISIONS OF THIS ACT AND THE RULES AND 19890S0756B2367 - 36 -
1 REGULATIONS ADOPTED PURSUANT TO THIS ACT AND SEEK THE 2 PROSECUTION AND ENJOINDER OF ALL SUCH VIOLATIONS. 3 (5) TO EXPEND MONEYS NECESSARY TO THE PROPER CARRYING 4 OUT OF ITS ASSIGNED DUTIES. 5 (6) TO ESTABLISH FEES FOR THE OPERATION OF THE BOARD, 6 INCLUDING FEES FOR THE ISSUANCE AND RENEWAL OF CERTIFICATES 7 AND FOR EXAMINATIONS. 8 (7) TO SUBMIT ANNUALLY A REPORT TO THE PROFESSIONAL 9 LICENSURE COMMITTEE OF THE HOUSE OF REPRESENTATIVES AND THE 10 CONSUMER PROTECTION AND PROFESSIONAL LICENSURE COMMITTEE OF 11 THE SENATE CONTAINING A DESCRIPTION OF THE TYPES OF 12 COMPLAINTS RECEIVED, STATUS OF THE CASES, BOARD ACTION WHICH 13 HAS BEEN TAKEN AND LENGTH OF TIME FROM THE INITIAL COMPLAINT 14 TO FINAL BOARD RESOLUTION. 15 (8) TO SUBMIT ANNUALLY TO THE DEPARTMENT OF STATE, AN 16 ESTIMATE OF THE FINANCIAL REQUIREMENTS OF THE BOARD FOR ITS 17 ADMINISTRATIVE, INVESTIGATIVE, LEGAL AND MISCELLANEOUS 18 EXPENSES. 19 (9) TO SUBMIT ANNUALLY TO THE APPROPRIATIONS COMMITTEES 20 OF THE HOUSE OF REPRESENTATIVES AND THE SENATE, 15 DAYS AFTER 21 THE GOVERNOR HAS SUBMITTED HIS BUDGET TO THE GENERAL 22 ASSEMBLY, A COPY OF THE BUDGET REQUEST FOR THE UPCOMING 23 FISCAL YEAR WHICH THE BOARD PREVIOUSLY SUBMITTED TO THE 24 DEPARTMENT OF STATE. 25 SECTION 6. APPLICATION AND QUALIFICATIONS. 26 (A) CLASSES OF CERTIFICATION.--THERE SHALL BE TWO CLASSES OF 27 CERTIFICATION FOR CERTIFIED REAL ESTATE APPRAISERS AS FOLLOWS: 28 (1) RESIDENTIAL, WHICH SHALL CONSIST OF THOSE PERSONS 29 APPLYING FOR CERTIFICATION RELATING SOLELY TO THE APPRAISAL 30 OF RESIDENTIAL REAL PROPERTY AS REQUIRED PURSUANT TO THE 19890S0756B2367 - 37 -
1 FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT 2 OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183). 3 (2) GENERAL, WHICH SHALL CONSIST OF THOSE PERSONS 4 APPLYING FOR CERTIFICATION RELATING TO THE APPRAISAL OF BOTH 5 RESIDENTIAL AND NONRESIDENTIAL REAL PROPERTY WITHOUT 6 LIMITATION. 7 (B) CLASSIFICATION TO BE SPECIFIED.--THE APPLICATION FOR 8 EXAMINATION, ORIGINAL CERTIFICATION AND RENEWAL OF CERTIFICATION 9 SHALL SPECIFY THE CLASSIFICATION BEING APPLIED FOR. 10 (C) APPLICATION.--AN APPLICANT FOR CERTIFICATION AS A 11 CERTIFIED REAL ESTATE APPRAISER SHALL SUBMIT A WRITTEN 12 APPLICATION ON FORMS PROVIDED BY THE BOARD EVIDENCING THAT: 13 (1) HE OR SHE IS OF GOOD MORAL CHARACTER. 14 (2) HIS OR HER APPLICATION HAS BEEN ACCOMPANIED BY THE 15 APPLICATION FEE. 16 (D) RESIDENTIAL CERTIFICATION.--AS A PREREQUISITE TO TAKING 17 THE EXAMINATION FOR CERTIFICATION RELATING SOLELY TO THE 18 APPRAISAL OF RESIDENTIAL REAL PROPERTY, AN APPLICANT SHALL, IN 19 ADDITION TO MEETING THE REQUIREMENTS OF SUBSECTION (C), MEET THE 20 MINIMUM EDUCATION AND EXPERIENCE REQUIREMENTS ESTABLISHED 21 PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND 22 ENFORCEMENT ACT OF 1989. 23 (E) GENERAL CERTIFICATION.--AS A PREREQUISITE TO TAKING THE 24 EXAMINATION FOR THE GENERAL CERTIFICATION RELATING TO THE 25 APPRAISAL OF REAL PROPERTY, AN APPLICANT SHALL, IN ADDITION TO 26 MEETING THE REQUIREMENTS OF SUBSECTION (C), MEET THE MINIMUM 27 EDUCATION AND EXPERIENCE REQUIREMENTS ESTABLISHED PURSUANT TO 28 THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT 29 OF 1989. 30 (F) DEFINITION OF SUBJECTS.--THE BOARD SHALL PRESCRIBE AND 19890S0756B2367 - 38 -
1 DEFINE THE SUBJECTS RELATED TO REAL PROPERTY APPRAISAL AND THE 2 EXPERIENCE IN REAL PROPERTY APPRAISAL WHICH WILL SATISFY THE 3 REQUIREMENTS OF SUBSECTIONS (D) AND (E). TO THE EXTENT PERMITTED 4 PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND 5 ENFORCEMENT ACT OF 1989, THE BOARD MAY GIVE CREDIT TO AN 6 APPLICANT FOR CLASSROOM HOURS OF ACADEMIC EXPERIENCE 7 SUCCESSFULLY COMPLETED PRIOR TO THE BOARD'S PRESCRIPTION AND 8 DEFINITION OF SUBJECTS PURSUANT TO THIS SUBSECTION. 9 (G) EXAMINATIONS.--EXAMINATIONS FOR CERTIFICATION SHALL BE 10 SELECTED IN ACCORDANCE WITH THE FINANCIAL INSTITUTIONS REFORM, 11 RECOVERY AND ENFORCEMENT ACT OF 1989. EXAMINATIONS SHALL BE 12 PREPARED AND ADMINISTERED BY A QUALIFIED AND APPROVED 13 PROFESSIONAL TESTING ORGANIZATION IN ACCORDANCE WITH SECTION 14 812.1 OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS 15 THE ADMINISTRATIVE CODE OF 1929. 16 (H) GUIDELINES AND REGULATIONS.--IN ORDER TO FACILITATE THE 17 SPEEDY IMPLEMENTATION OF THIS ACT, THE BOARD SHALL HAVE THE 18 POWER AND AUTHORITY TO PROMULGATE, ADOPT AND USE GUIDELINES TO 19 PRESCRIBE THE EDUCATION, EXPERIENCE, EXAMINATION AND OTHER 20 QUALIFICATIONS REQUIRED FOR CERTIFICATION PURSUANT TO THIS 21 SECTION. SUCH GUIDELINES SHALL BE PUBLISHED IN THE PENNSYLVANIA 22 BULLETIN. THE GUIDELINES SHALL NOT BE SUBJECT TO REVIEW PURSUANT 23 TO SECTION 205 OF THE ACT OF JULY 31, 1968 (P.L.769, NO.240), 24 REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW, SECTIONS 204(B) 25 AND 301(10) OF THE ACT OF OCTOBER 15, 1980 (P.L.950, NO.164), 26 KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, OR THE ACT OF JUNE 25, 27 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY REVIEW ACT, AND 28 SHALL BE EFFECTIVE FOR A PERIOD NOT TO EXCEED TWO YEARS FROM THE 29 EFFECTIVE DATE OF THIS ACT. AFTER THE EXPIRATION OF THE TWO-YEAR 30 PERIOD, THE GUIDELINES SHALL EXPIRE AND SHALL BE REPLACED BY 19890S0756B2367 - 39 -
1 REGULATIONS WHICH SHALL HAVE BEEN PROMULGATED, ADOPTED AND 2 PUBLISHED AS PROVIDED BY LAW. 3 SECTION 7. RECIPROCITY. 4 THE BOARD SHALL HAVE THE POWER TO GRANT A RECIPROCAL 5 CERTIFICATION TO AN APPLICANT WHO IS CERTIFIED OR LICENSED AS AN 6 APPRAISER IN ANOTHER STATE AND HAS DEMONSTRATED QUALIFICATIONS 7 WHICH EQUAL OR EXCEED THOSE REQUIRED PURSUANT TO THIS ACT IN THE 8 DETERMINATION OF THE BOARD, PROVIDED THAT NO CERTIFICATE SHALL 9 BE GRANTED UNDER THIS SECTION TO AN APPLICANT UNLESS THE STATE 10 IN WHICH THE APPLICANT IS CERTIFIED OR LICENSED AFFORDS 11 RECIPROCAL TREATMENT TO PERSONS WHO ARE RESIDENTS OF THIS 12 COMMONWEALTH AND WHO ARE CERTIFIED PURSUANT TO THIS ACT. 13 SECTION 8. TEMPORARY PRACTICE. 14 AS REQUIRED BY THE FINANCIAL INSTITUTIONS REFORM, RECOVERY 15 AND ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 108 STAT. 183), 16 THE BOARD SHALL RECOGNIZE ON A TEMPORARY BASIS THE CERTIFICATION 17 OR LICENSE OF AN APPRAISER ISSUED BY ANOTHER STATE IF: 18 (1) THE PROPERTY TO BE APPRAISED IS PART OF A FEDERALLY 19 RELATED TRANSACTION; 20 (2) THE APPRAISER'S BUSINESS IS OF A TEMPORARY NATURE; 21 AND 22 (3) THE APPRAISER REGISTERS WITH THE BOARD. 23 SECTION 9. FEES. 24 (A) IMPOSITION AND INCREASES.--ALL FEES ESTABLISHED PURSUANT 25 TO THIS ACT SHALL BE FIXED BY THE BOARD BY REGULATION AND SHALL 26 BE SUBJECT TO THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN 27 AS THE REGULATORY REVIEW ACT. IF THE REVENUES RAISED BY FEES, 28 FINES AND CIVIL PENALTIES IMPOSED PURSUANT TO THIS ACT ARE NOT 29 SUFFICIENT TO MEET EXPENDITURES OVER A TWO-YEAR PERIOD, THE 30 BOARD SHALL INCREASE THOSE FEES BY REGULATION SO THAT THE 19890S0756B2367 - 40 -
1 PROJECTED REVENUES WILL MEET OR EXCEED PROJECTED EXPENDITURES. 2 (B) ADDITIONAL INCREASES.--IF THE BUREAU OF PROFESSIONAL AND 3 OCCUPATIONAL AFFAIRS DETERMINES THAT THE FEES ESTABLISHED BY THE 4 BOARD UNDER SUBSECTION (A) ARE INADEQUATE TO MEET THE MINIMUM 5 ENFORCEMENT EFFORTS REQUIRED BY THIS ACT, THEN THE BUREAU, AFTER 6 CONSULTATION WITH THE BOARD AND SUBJECT TO THE REGULATORY REVIEW 7 ACT, SHALL INCREASE THE FEES BY REGULATION IN AN AMOUNT THAT 8 ADEQUATE REVENUES ARE RAISED TO MEET THE REQUIRED ENFORCEMENT 9 EFFORT. 10 (C) ADDITIONAL FEES.--IN ADDITION TO FEES ESTABLISHED 11 PURSUANT TO THIS ACT, THE BOARD IS AUTHORIZED TO COLLECT AND 12 TRANSMIT TO THE APPRAISAL SUBCOMMITTEE ESTABLISHED PURSUANT TO 13 THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT 14 OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183) FEES REQUIRED UNDER 15 THAT ACT. 16 SECTION 10. CERTIFICATION RENEWAL; RECORDS. 17 (A) RENEWAL TERM.--RENEWAL OF CERTIFICATION SHALL BE ON A 18 BIENNIAL BASIS. 19 (B) CONTINUING EDUCATION.--THE BOARD SHALL BY REGULATION 20 REQUIRE EVIDENCE OF PROFESSIONAL ACTIVITY OR CONTINUING 21 EDUCATION AS A CONDITION OF CERTIFICATION RENEWAL IF, AND ONLY 22 TO THE MINIMUM EXTENT, REQUIRED PURSUANT TO THE FINANCIAL 23 INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989 24 (PUBLIC LAW 101-73, 103 STAT. 183). NO CREDIT SHALL BE GIVEN FOR 25 ANY COURSE IN OFFICE MANAGEMENT OR PRACTICE BUILDING. IN ORDER 26 TO FACILITATE THE SPEEDY IMPLEMENTATION OF THIS ACT, THE BOARD 27 SHALL HAVE THE POWER AND AUTHORITY TO PROMULGATE, ADOPT AND USE 28 GUIDELINES TO PRESCRIBE THE EVIDENCE OF PROFESSIONAL ACTIVITY OR 29 CONTINUING CERTIFICATION REQUIRED FOR CERTIFICATION RENEWAL 30 PURSUANT TO THIS SECTION. SUCH GUIDELINES SHALL BE PUBLISHED IN 19890S0756B2367 - 41 -
1 THE PENNSYLVANIA BULLETIN. THE GUIDELINES SHALL NOT BE SUBJECT 2 TO REVIEW PURSUANT TO SECTION 205 OF THE ACT OF JULY 31, 1968 3 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS 4 LAW, SECTIONS 204(B) AND 301(10) OF THE ACT OF OCTOBER 15, 1980 5 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, OR 6 THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE 7 REGULATORY REVIEW ACT, AND SHALL BE EFFECTIVE FOR A PERIOD NOT 8 TO EXCEED TWO YEARS FROM THE EFFECTIVE DATE OF THIS ACT. AFTER 9 THE EXPIRATION OF THE TWO-YEAR PERIOD, THE GUIDELINES SHALL 10 EXPIRE AND SHALL BE REPLACED BY REGULATIONS WHICH SHALL HAVE 11 BEEN PROMULGATED, ADOPTED AND PUBLISHED AS PROVIDED BY LAW. 12 (C) RECORDS.--A RECORD OF ALL PERSONS CERTIFIED AS REAL 13 ESTATE APPRAISERS IN THIS COMMONWEALTH SHALL BE KEPT IN THE 14 OFFICE OF THE BOARD AND SHALL BE OPEN TO PUBLIC INSPECTION AND 15 COPYING UPON PAYMENT OF A NOMINAL FEE FOR COPYING THE RECORD. 16 EACH CERTIFICATEHOLDER SHALL ADVISE THE BOARD OF THE ADDRESS OF 17 HIS OR HER PRINCIPAL PLACE OF BUSINESS. 18 SECTION 11. DISCIPLINARY AND CORRECTIVE MEASURES. 19 (A) AUTHORITY OF BOARD.--THE BOARD MAY DENY, SUSPEND OR 20 REVOKE CERTIFICATES, OR LIMIT, RESTRICT OR REPRIMAND A 21 CERTIFICATEHOLDER FOR ANY OF THE FOLLOWING CAUSES: 22 (1) PROCURING OR ATTEMPTING TO PROCURE A CERTIFICATE OR 23 RENEWAL OF A CERTIFICATE PURSUANT TO THIS ACT BY KNOWINGLY 24 MAKING A FALSE STATEMENT, SUBMITTING FALSE INFORMATION, OR 25 REFUSING TO PROVIDE COMPLETE INFORMATION IN RESPONSE TO A 26 QUESTION IN AN APPLICATION FOR CERTIFICATION OR RENEWAL 27 THROUGH ANY FORM OF FRAUD OR MISREPRESENTATION. 28 (2) FAILING TO MEET THE MINIMUM QUALIFICATIONS 29 ESTABLISHED BY THIS ACT. 30 (3) PAYING, OR OFFERING TO PAY, ANY VALUABLE 19890S0756B2367 - 42 -
1 CONSIDERATION OTHER THAN PROVIDED FOR BY THIS ACT TO ANY 2 MEMBER OR EMPLOYEE OF THE BOARD TO PROCURE A CERTIFICATE 3 UNDER THIS ACT. 4 (4) BEING CONVICTED OF OR PLEADING GUILTY TO A CRIME 5 WHICH IS SUBSTANTIALLY RELATED TO THE QUALIFICATIONS, 6 FUNCTIONS AND DUTIES OF A PERSON DEVELOPING REAL PROPERTY 7 APPRAISALS AND COMMUNICATING REAL PROPERTY APPRAISALS TO 8 OTHERS. 9 (5) PERFORMING AN ACT OR OMITTING AN ACT WHEN SUCH 10 PERFORMANCE OR OMISSION INVOLVES DISHONESTY, FRAUD OR 11 MISREPRESENTATION WITH INTENT TO SUBSTANTIALLY BENEFIT THE 12 CERTIFICATEHOLDER IN HIS PROFESSION OR WITH THE INTENT TO 13 SUBSTANTIALLY INJURE ANOTHER PERSON. 14 (6) VIOLATING ANY OF THE STANDARDS FOR THE DEVELOPMENT 15 OR COMMUNICATION OF REAL PROPERTY APPRAISALS AS REQUIRED 16 PURSUANT TO THIS ACT OR THE FINANCIAL INSTITUTIONS REFORM, 17 RECOVERY AND ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 103 18 STAT. 183). 19 (7) FAILING OR REFUSING, WITHOUT GOOD CAUSE, TO EXERCISE 20 REASONABLE DILIGENCE IN DEVELOPING AN APPRAISAL, PREPARING AN 21 APPRAISAL REPORT OR COMMUNICATING AN APPRAISAL. 22 (8) NEGLIGENTLY OR INCOMPETENTLY DEVELOPING AN 23 APPRAISAL, PREPARING AN APPRAISAL REPORT OR COMMUNICATING AN 24 APPRAISAL. 25 (9) WILLFULLY DISREGARDING OR VIOLATING ANY OF THE 26 PROVISIONS OF THIS ACT OR THE GUIDELINES OR REGULATIONS OF 27 THE BOARD FOR THE ADMINISTRATION AND ENFORCEMENT OF THE 28 PROVISIONS OF THIS ACT. 29 (10) ACCEPTING AN APPRAISAL ASSIGNMENT WHEN THE 30 EMPLOYMENT ITSELF IS CONTINGENT UPON THE APPRAISER'S 19890S0756B2367 - 43 -
1 REPORTING A PREDETERMINED ANALYSIS OR OPINION, OR WHERE THE 2 FEE TO BE PAID FOR THE PERFORMANCE OF THE APPRAISAL 3 ASSIGNMENT IS CONTINGENT UPON THE OPINION, CONCLUSION OR 4 VALUATION REACHED, OR UPON THE CONSEQUENCE RESULTING FROM THE 5 APPRAISAL ASSIGNMENT. 6 (11) VIOLATING THE CONFIDENTIAL NATURE OF RECORDS TO 7 WHICH THE APPRAISER GAINED ACCESS THROUGH EMPLOYMENT OR 8 ENGAGEMENT AS AN APPRAISER. 9 (12) MAKING THE FEE OR COMPENSATION CONTINGENT UPON AN 10 AWARD OR RECOVERY IN ANY CASE WHERE THE AMOUNT OF THE AWARD 11 OR RECOVERY WOULD BE AFFECTED BY THE APPRAISAL. 12 (13) BASING THE FEE OR COMPENSATION ON A PERCENTAGE OF 13 THE FINAL ESTIMATE OF VALUE. 14 (14) CONTRACTING FOR OR ACCEPTING COMPENSATION FOR 15 APPRAISAL SERVICES IN THE FORM OF A COMMISSION, REBATE, 16 DIVISION OF BROKERAGE COMMISSIONS OR ANY OTHER SIMILAR FORM. 17 (15) HAVING A LICENSE OR CERTIFICATE TO PERFORM 18 APPRAISALS SUSPENDED, REVOKED, OR REFUSED OR RECEIVING OTHER 19 DISCIPLINARY ACTIONS BY THE APPRAISAL LICENSURE OR 20 CERTIFICATION AUTHORITY OF ANOTHER STATE, TERRITORY, OR 21 COUNTRY. 22 (B) BOARD ACTION.--WHEN THE BOARD FINDS THAT THE 23 CERTIFICATION OR APPLICATION FOR CERTIFICATION OR RENEWAL OF ANY 24 PERSON MAY BE DENIED, REVOKED, RESTRICTED OR SUSPENDED UNDER THE 25 TERMS OF SUBSECTION (A), THE BOARD MAY: 26 (1) DENY THE APPLICATION FOR CERTIFICATION OR RENEWAL. 27 (2) ADMINISTER A PUBLIC REPRIMAND. 28 (3) REVOKE, SUSPEND, LIMIT OR OTHERWISE RESTRICT A 29 CERTIFICATE AS DETERMINED BY THE BOARD. 30 (4) SUSPEND ENFORCEMENT OF ITS FINDINGS THEREOF AND 19890S0756B2367 - 44 -
1 PLACE A CERTIFICATEHOLDER ON PROBATION WITH THE RIGHT TO 2 VACATE THE PROBATIONARY ORDER FOR NONCOMPLIANCE. 3 (5) RESTORE A SUSPENDED CERTIFICATION AND IMPOSE ANY 4 DISCIPLINARY OR CORRECTIVE MEASURE WHICH IT MIGHT ORIGINALLY 5 HAVE IMPOSED. 6 (C) HEARING.--ALL ACTIONS OF THE BOARD SHALL BE TAKEN 7 SUBJECT TO THE RIGHT OF NOTICE, HEARING AND ADJUDICATION AND THE 8 RIGHT OF APPEAL THEREFROM IN ACCORDANCE WITH 2 PA.C.S. (RELATING 9 TO ADMINISTRATIVE LAW AND PROCEDURE). APPEALS FROM ACTIONS OF 10 THE BOARD SHALL BE TAKEN TO COMMONWEALTH COURT OR TO SUCH OTHER 11 COURT AS PRESCRIBED BY LAW. 12 SECTION 12. REINSTATEMENT OF CERTIFICATE. 13 UNLESS ORDERED TO DO SO BY COMMONWEALTH COURT OR AN APPEAL 14 THEREFROM, THE BOARD SHALL NOT REINSTATE THE CERTIFICATE OF A 15 PERSON TO PRACTICE AS A CERTIFIED REAL ESTATE APPRAISER PURSUANT 16 TO THIS ACT, WHICH HAS BEEN REVOKED. ANY PERSON WHOSE 17 CERTIFICATION HAS BEEN REVOKED MAY APPLY FOR REINSTATEMENT, 18 AFTER A PERIOD OF AT LEAST FIVE YEARS, BUT MUST MEET ALL OF THE 19 CERTIFICATION QUALIFICATIONS OF THIS ACT, INCLUDING THE 20 EXAMINATION REQUIREMENT, IF HE OR SHE DESIRES TO HOLD HIMSELF OR 21 HERSELF OUT OR TO PRACTICE AS A CERTIFIED REAL ESTATE APPRAISER 22 PURSUANT TO THIS ACT AT ANY TIME AFTER SUCH REVOCATION. 23 SECTION 13. REPORTING OF MULTIPLE CERTIFICATION. 24 ANY APPRAISER CERTIFIED IN THIS COMMONWEALTH WHO IS ALSO 25 CERTIFIED OR LICENSED TO PERFORM APPRAISALS IN ANY OTHER STATE, 26 TERRITORY OR COUNTRY SHALL REPORT THIS INFORMATION TO THE BOARD 27 ON THE BIENNIAL RENEWAL APPLICATION. ANY DISCIPLINARY ACTION 28 TAKEN IN ANY OTHER STATE, TERRITORY OR COUNTRY SHALL BE REPORTED 29 TO THE BOARD ON THE BIENNIAL RENEWAL APPLICATION, OR WITHIN 90 30 DAYS OF DISPOSITION, WHICHEVER IS SOONER. MULTIPLE LICENSURE OR 19890S0756B2367 - 45 -
1 CERTIFICATION SHALL BE NOTED BY THE BOARD ON THE CERTIFIED 2 APPRAISER'S RECORD, AND SUCH STATE, TERRITORY OR COUNTRY SHALL 3 BE NOTIFIED BY THE BOARD OF ANY DISCIPLINARY ACTIONS TAKEN 4 AGAINST SAID CERTIFIED APPRAISER IN THIS COMMONWEALTH. 5 SECTION 14. SURRENDER OF SUSPENDED OR REVOKED CERTIFICATE. 6 THE BOARD SHALL REQUIRE A PERSON WHOSE CERTIFICATION HAS BEEN 7 SUSPENDED OR REVOKED TO RETURN THE CERTIFICATE IN SUCH MANNER AS 8 THE BOARD DIRECTS. FAILURE TO DO SO SHALL BE A MISDEMEANOR OF 9 THE THIRD DEGREE. 10 SECTION 15. PENALTIES. 11 (A) CRIMINAL PENALTIES.--A PERSON WHO VIOLATES THIS ACT 12 COMMITS A MISDEMEANOR OF THE THIRD DEGREE AND SHALL, UPON 13 CONVICTION, BE SENTENCED TO PAY A FINE OF UP TO $1,000 OR TO 14 IMPRISONMENT FOR NOT MORE THAN 90 DAYS, OR BOTH. 15 (B) CIVIL PENALTY.--IN ADDITION TO ANY OTHER CIVIL REMEDY OR 16 CRIMINAL PENALTY PROVIDED FOR IN THIS ACT, THE BOARD, BY A VOTE 17 OF THE MAJORITY OF THE MAXIMUM NUMBER OF THE AUTHORIZED 18 MEMBERSHIP OF THE BOARD AS PROVIDED BY LAW, OR BY A VOTE OF THE 19 MAJORITY OF THE DULY QUALIFIED AND CONFIRMED MEMBERSHIP OR A 20 MINIMUM OF THREE MEMBERS, WHICHEVER IS GREATER, MAY LEVY A CIVIL 21 PENALTY OF UP TO $1,000 ON ANY CURRENT CERTIFICATEHOLDER WHO 22 VIOLATES ANY PROVISION OF THIS ACT OR ON ANY PERSON WHO HOLDS 23 HIMSELF OR HERSELF OUT AS A CERTIFIED REAL ESTATE APPRAISER OR 24 PERFORMS APPRAISALS FOR WHICH CERTIFICATION OR LICENSURE IS 25 REQUIRED PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY 26 AND ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183) 27 WITHOUT BEING SO CERTIFIED PURSUANT TO THIS ACT. THE BOARD SHALL 28 LEVY THIS PENALTY ONLY AFTER AFFORDING THE ACCUSED PARTY THE 29 OPPORTUNITY FOR A HEARING, AS PROVIDED IN 2 PA.C.S. (RELATING TO 30 ADMINISTRATIVE LAW AND PROCEDURE). 19890S0756B2367 - 46 -
1 (C) DISPOSITION.--ALL FINES AND CIVIL PENALTIES IMPOSED IN 2 ACCORDANCE WITH THIS SECTION SHALL BE PAID INTO THE PROFESSIONAL 3 LICENSURE AUGMENTATION ACCOUNT. 4 SECTION 16. SUBPOENAS. 5 (A) POWER TO ISSUE.--THE BOARD SHALL HAVE THE AUTHORITY TO 6 ISSUE SUBPOENAS, UPON APPLICATION OF AN ATTORNEY RESPONSIBLE FOR 7 REPRESENTING THE COMMONWEALTH IN DISCIPLINARY MATTERS BEFORE THE 8 BOARD, FOR THE PURPOSE OF INVESTIGATING ALLEGED VIOLATIONS OF 9 THE DISCIPLINARY PROVISIONS ADMINISTERED BY THE BOARD. THE BOARD 10 SHALL HAVE THE POWER TO SUBPOENA WITNESSES, TO ADMINISTER OATHS, 11 TO EXAMINE WITNESSES AND TO TAKE SUCH TESTIMONY OR COMPEL THE 12 PRODUCTION OF SUCH BOOKS, RECORDS, PAPERS AND DOCUMENTS AS IT 13 MAY DEEM NECESSARY OR PROPER IN, AND PERTINENT TO, ANY 14 PROCEEDING, INVESTIGATION OR HEARING HELD OR HAD BY IT. CLIENT 15 RECORDS MAY NOT BE SUBPOENAED WITHOUT CONSENT OF THE CLIENT OR 16 WITHOUT ORDER OF A COURT OF COMPETENT JURISDICTION ON A SHOWING 17 THAT THE RECORDS ARE REASONABLY NECESSARY FOR THE CONDUCT OF THE 18 INVESTIGATION. THE COURT MAY IMPOSE SUCH LIMITATIONS ON THE 19 SCOPE OF THE SUBPOENA AS ARE NECESSARY TO PREVENT UNNECESSARY 20 INTRUSION INTO CLIENT CONFIDENTIAL INFORMATION. THE BOARD IS 21 AUTHORIZED TO APPLY TO COMMONWEALTH COURT TO ENFORCE ITS 22 SUBPOENAS. 23 (B) NOTIFICATION OF BOARD.--AN ATTORNEY RESPONSIBLE FOR 24 REPRESENTING THE COMMONWEALTH IN DISCIPLINARY MATTERS BEFORE THE 25 BOARD SHALL NOTIFY THE BOARD IMMEDIATELY UPON RECEIVING 26 NOTIFICATION OF AN ALLEGED VIOLATION OF THIS ACT. THE BOARD 27 SHALL MAINTAIN CURRENT RECORDS OF ALL REPORTS OF ALLEGED 28 VIOLATIONS AND PERIODICALLY REVIEW THE RECORDS FOR THE PURPOSE 29 OF DETERMINING THAT EACH ALLEGED VIOLATION HAS BEEN RESOLVED IN 30 A TIMELY MANNER. 19890S0756B2367 - 47 -
1 SECTION 17. INJUNCTIVE RELIEF. 2 (A) INJUNCTION.-- A VIOLATION OF SECTION 3 MAY BE ENJOINED 3 BY THE COURTS UPON PETITION OF THE SECRETARY OR THE BOARD. IN 4 ANY PROCEEDING UNDER THIS SECTION, IT SHALL NOT BE NECESSARY TO 5 SHOW THAT ANY PERSON IS INDIVIDUALLY INJURED BY THE ACTIONS 6 COMPLAINED OF. IF THE COURT FINDS THAT THE RESPONDENT HAS 7 VIOLATED SECTION 3, IT SHALL ENJOIN HIM OR HER FROM SO 8 PRACTICING OR HOLDING HIMSELF OR HERSELF OUT UNTIL HE OR SHE HAS 9 BEEN DULY CERTIFIED. PROCEDURE IN SUCH CASES SHALL BE THE SAME 10 AS IN ANY OTHER INJUNCTION SUIT. 11 (B) REMEDY CUMULATIVE.--THE INJUNCTIVE REMEDY PROVIDED IN 12 THIS SECTION SHALL BE IN ADDITION TO ANY OTHER CIVIL OR CRIMINAL 13 PROSECUTION AND PUNISHMENT. 14 SECTION 18. STATE LICENSURE REQUIREMENTS. 15 PERSONS WHO ARE CERTIFIED AS REAL ESTATE APPRAISERS UNDER 16 THIS ACT SHALL ALSO BE DEEMED TO BE STATE-LICENSED APPRAISERS 17 UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND 18 ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183). 19 SECTION 19. APPROPRIATION. 20 THE SUM OF $85,000, OR AS MUCH THEREOF AS MAY BE NECESSARY, 21 IS HEREBY APPROPRIATED FROM THE PROFESSIONAL LICENSURE 22 AUGMENTATION ACCOUNT WITHIN THE GENERAL FUND TO THE BUREAU OF 23 PROFESSIONAL AND OCCUPATIONAL AFFAIRS IN THE DEPARTMENT OF STATE 24 FOR THE PAYMENT OF COSTS OF PROCESSING CERTIFICATES AND 25 RENEWALS, FOR THE OPERATION OF THE BOARD AND FOR OTHER GENERAL 26 COSTS OF THE BUREAU OPERATIONS RELATING TO THIS ACT. THE 27 APPROPRIATION GRANTED SHALL BE REPAID BY THE BOARD WITHIN SIX 28 YEARS OF THE BEGINNING OF ISSUANCE OF CERTIFICATES BY THE BOARD. 29 SECTION 20. EFFECTIVE DATE. 30 THIS ACT SHALL TAKE EFFECT IMMEDIATELY. C9L63CHF/19890S0756B2367 - 48 -