HOUSE AMENDED
PRIOR PRINTER'S NOS. 820, 1529, 2182, PRINTER'S NO. 2420
2323, 2367
No. 756 Session of 1989
INTRODUCED BY SHUMAKER, O'PAKE, LOEPER, PETERSON, REIBMAN,
ANDREZESKI AND BELL, MARCH 23, 1989
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 30, 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
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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.
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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
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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
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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
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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
19890S0756B2420 - 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.
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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
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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.
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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
19890S0756B2420 - 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
19890S0756B2420 - 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;
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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.
19890S0756B2420 - 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.
19890S0756B2420 - 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
19890S0756B2420 - 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.
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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
19890S0756B2420 - 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 A WRITTEN ANALYSIS, OPINION OR CONCLUSION <--
20 RELATING TO THE NATURE, QUALITY, VALUE OR UTILITY OF SPECIFIED
21 INTERESTS IN, OR ASPECTS OF, IDENTIFIED REAL PROPERTY, FOR OR IN
22 EXPECTATION 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.
19890S0756B2420 - 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
19890S0756B2420 - 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. HAVE APPROPRIATE APPRAISAL EXPERIENCE AND <--
9 EDUCATION AND SHALL HAVE DEMONSTRATED ADHERENCE TO STANDARDS OF
10 PROFESSIONAL PRACTICE.
11 (B) TERM OF OFFICE.--THE PROFESSIONAL AND PUBLIC MEMBERS
12 SHALL SERVE FOUR-YEAR TERMS, EXCEPT AS PROVIDED IN SUBSECTION
13 (C), AND SHALL BE APPOINTED BY THE GOVERNOR BY AND WITH THE
14 ADVICE AND CONSENT OF A MAJORITY OF THE MEMBERS ELECTED TO THE
15 SENATE.
16 (C) INITIAL APPOINTMENTS.--WITHIN 90 DAYS OF THE EFFECTIVE
17 DATE OF THIS ACT, THE GOVERNOR SHALL NOMINATE ONE PROFESSIONAL
18 MEMBER TO SERVE A FOUR-YEAR TERM; ONE PUBLIC MEMBER AND ONE
19 PROFESSIONAL MEMBER TO SERVE THREE-YEAR TERMS; ONE PUBLIC MEMBER
20 AND ONE PROFESSIONAL MEMBER TO SERVE TWO-YEAR TERMS; AND ONE
21 PROFESSIONAL MEMBER TO SERVE A ONE-YEAR TERM.
22 (D) CONTINUATION IN OFFICE.--EACH PROFESSIONAL AND PUBLIC
23 MEMBER SHALL CONTINUE IN OFFICE UNTIL A SUCCESSOR IS DULY
24 APPOINTED AND QUALIFIED BUT NO LONGER THAN SIX MONTHS AFTER THE
25 EXPIRATION OF THE TERM. IN THE EVENT THAT A BOARD MEMBER SHALL
26 DIE, RESIGN OR OTHERWISE BECOME DISQUALIFIED DURING THE TERM OF
27 OFFICE, A SUCCESSOR SHALL BE APPOINTED IN THE SAME WAY AND WITH
28 THE SAME QUALIFICATIONS AS SET FORTH IN THIS SECTION AND SHALL
29 HOLD OFFICE FOR THE UNEXPIRED PORTION OF THE UNEXPIRED TERM.
30 (E) LIMIT ON TERMS.--NO BOARD MEMBER SHALL BE ELIGIBLE FOR
19890S0756B2420 - 34 -
1 APPOINTMENT TO SERVE MORE THAN TWO CONSECUTIVE FOUR-YEAR TERMS.
2 (F) FORFEITURE OF MEMBERSHIP.--A BOARD MEMBER WHO FAILS TO
3 ATTEND THREE CONSECUTIVE MEETINGS SHALL FORFEIT HIS OR HER SEAT
4 UNLESS THE SECRETARY, UPON WRITTEN REQUEST FROM THE MEMBER,
5 FINDS THAT THE MEMBER SHOULD BE EXCUSED FROM A MEETING BECAUSE
6 OF ILLNESS OR THE DEATH OF A FAMILY MEMBER.
7 (G) COMPENSATION.--EACH MEMBER OF THE BOARD, EXCEPT THE
8 SECRETARY, SHALL RECEIVE PER DIEM COMPENSATION AT THE RATE OF
9 $60 PER DIEM WHEN ACTUALLY ATTENDING TO THE WORK OF THE BOARD.
10 MEMBERS SHALL ALSO RECEIVE REASONABLE TRAVELING, HOTEL AND OTHER
11 NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES
12 IN ACCORDANCE WITH COMMONWEALTH REGULATIONS.
13 (H) FORFEITURE FOR NONATTENDANCE.--A PUBLIC MEMBER WHO FAILS
14 TO ATTEND TWO CONSECUTIVE STATUTORILY MANDATED TRAINING SEMINARS
15 IN ACCORDANCE WITH SECTION 813(E) OF THE ACT OF APRIL 9, 1929
16 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929,
17 SHALL FORFEIT HIS OR HER SEAT UNLESS THE SECRETARY, UPON WRITTEN
18 REQUEST FROM THE PUBLIC MEMBER, FINDS THAT THE PUBLIC MEMBER
19 SHOULD BE EXCUSED FROM A MEETING BECAUSE OF ILLNESS OR THE DEATH
20 OF A FAMILY MEMBER.
21 (I) QUORUM.--A MAJORITY OF THE MEMBERS OF THE BOARD SERVING
22 IN ACCORDANCE WITH LAW SHALL CONSTITUTE A QUORUM FOR PURPOSES OF
23 CONDUCTING THE BUSINESS OF THE BOARD. A MEMBER MAY NOT BE
24 COUNTED AS PART OF A QUORUM OR VOTE ON ANY ISSUE UNLESS HE OR
25 SHE IS PHYSICALLY IN ATTENDANCE AT THE MEETING.
26 (J) MEETINGS.--THE BOARD SHALL MEET AT LEAST FOUR TIMES A
27 YEAR IN HARRISBURG.
28 (K) NOTICE.--REASONABLE NOTICE OF ALL MEETINGS SHALL BE
29 GIVEN IN CONFORMITY WITH THE ACT OF JULY 3, 1986 (P.L.388,
30 NO.84), KNOWN AS THE SUNSHINE ACT.
19890S0756B2420 - 35 -
1 (L) OPERATING PROCEDURES.--THE BOARD SHALL MEET WITHIN 30
2 DAYS AFTER THE APPOINTMENT OF ITS INITIAL MEMBERS AND SET UP
3 OPERATING PROCEDURES AND AN APPLICATION FORM FOR CERTIFYING
4 APPRAISERS. IT SHALL BE THE RESPONSIBILITY OF THE BOARD TO
5 CIRCULATE THESE FORMS AND EDUCATE THE PUBLIC TO THE REQUIREMENTS
6 OF CERTIFICATION. NO OTHER BOARD AND NO COMMISSION WITHIN THE
7 BUREAU OF PROFESSIONAL AND OCCUPATIONAL AFFAIRS SHALL BE
8 RESPONSIBLE, IN ANY MANNER, FOR THE POLICIES, PROCEDURES OR
9 OTHER SUBSTANTIVE MATTERS WHICH ARE WITHIN THE POWERS AND DUTIES
10 OF THE BOARD AS SET FORTH IN THIS ACT.
11 (M) ELECTION OF OFFICERS.--THE BOARD SHALL ELECT ANNUALLY
12 FROM ITS MEMBERSHIP A CHAIRMAN, A VICE CHAIRMAN AND A SECRETARY.
13 SECTION 5. POWERS AND DUTIES OF BOARD.
14 THE BOARD SHALL HAVE THE FOLLOWING POWERS AND DUTIES:
15 (1) TO PASS UPON THE QUALIFICATIONS AND FITNESS OF
16 APPLICANTS FOR CERTIFICATION AND TO ADOPT AND REVISE RULES
17 AND REGULATIONS REQUIRING APPLICANTS FOR CERTIFICATION TO
18 PASS EXAMINATIONS RELATING TO THEIR QUALIFICATIONS FOR
19 CERTIFICATION.
20 (2) TO ADOPT AND, FROM TIME TO TIME, REVISE SUCH RULES
21 AND REGULATIONS AS MAY BE NECESSARY TO CARRY OUT THE
22 PROVISIONS OF THIS ACT. SUCH REGULATIONS SHALL INCLUDE, BUT
23 NOT BE LIMITED TO, STANDARDS OF PROFESSIONAL APPRAISAL
24 PRACTICE REQUIRING THAT APPRAISALS BE PERFORMED IN ACCORDANCE
25 WITH GENERALLY ACCEPTED APPRAISAL STANDARDS AS REQUIRED
26 PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND
27 ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183).
28 (3) TO EXAMINE FOR, DENY, APPROVE, ISSUE, REVOKE,
29 SUSPEND OR RENEW CERTIFICATES OF APPRAISERS PURSUANT TO THIS
30 ACT AND TO CONDUCT HEARINGS IN CONNECTION THEREWITH.
19890S0756B2420 - 36 -
1 (4) TO CONDUCT HEARINGS UPON COMPLAINTS CONCERNING
2 VIOLATIONS OF THE PROVISIONS OF THIS ACT AND THE RULES AND
3 REGULATIONS ADOPTED PURSUANT TO THIS ACT AND SEEK THE
4 PROSECUTION AND ENJOINDER OF ALL SUCH VIOLATIONS.
5 (5) TO EXPEND MONEYS NECESSARY TO THE PROPER CARRYING
6 OUT OF ITS ASSIGNED DUTIES.
7 (6) TO ESTABLISH FEES FOR THE OPERATION OF THE BOARD,
8 INCLUDING FEES FOR THE ISSUANCE AND RENEWAL OF CERTIFICATES
9 AND FOR EXAMINATIONS.
10 (7) TO SUBMIT ANNUALLY A REPORT TO THE PROFESSIONAL
11 LICENSURE COMMITTEE OF THE HOUSE OF REPRESENTATIVES AND THE
12 CONSUMER PROTECTION AND PROFESSIONAL LICENSURE COMMITTEE OF
13 THE SENATE CONTAINING A DESCRIPTION OF THE TYPES OF
14 COMPLAINTS RECEIVED, STATUS OF THE CASES, BOARD ACTION WHICH
15 HAS BEEN TAKEN AND LENGTH OF TIME FROM THE INITIAL COMPLAINT
16 TO FINAL BOARD RESOLUTION.
17 (8) TO SUBMIT ANNUALLY TO THE DEPARTMENT OF STATE, AN
18 ESTIMATE OF THE FINANCIAL REQUIREMENTS OF THE BOARD FOR ITS
19 ADMINISTRATIVE, INVESTIGATIVE, LEGAL AND MISCELLANEOUS
20 EXPENSES.
21 (9) TO SUBMIT ANNUALLY TO THE APPROPRIATIONS COMMITTEES
22 OF THE HOUSE OF REPRESENTATIVES AND THE SENATE, 15 DAYS AFTER
23 THE GOVERNOR HAS SUBMITTED HIS BUDGET TO THE GENERAL
24 ASSEMBLY, A COPY OF THE BUDGET REQUEST FOR THE UPCOMING
25 FISCAL YEAR WHICH THE BOARD PREVIOUSLY SUBMITTED TO THE
26 DEPARTMENT OF STATE.
27 (10) TO SUBMIT ANNUALLY PURSUANT TO THE FINANCIAL <--
28 INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989 A
29 ROSTER LISTING INDIVIDUALS WHO HAVE RECEIVED STATE
30 CERTIFICATION.
19890S0756B2420 - 37 -
1 SECTION 6. APPLICATION AND QUALIFICATIONS.
2 (A) CLASSES OF CERTIFICATION.--THERE SHALL BE TWO CLASSES OF
3 CERTIFICATION FOR CERTIFIED REAL ESTATE APPRAISERS AS FOLLOWS:
4 (1) RESIDENTIAL, WHICH SHALL CONSIST OF THOSE PERSONS
5 APPLYING FOR CERTIFICATION RELATING SOLELY TO THE APPRAISAL
6 OF RESIDENTIAL REAL PROPERTY AS REQUIRED PURSUANT TO THE
7 FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT
8 OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183).
9 (2) GENERAL, WHICH SHALL CONSIST OF THOSE PERSONS
10 APPLYING FOR CERTIFICATION RELATING TO THE APPRAISAL OF BOTH
11 RESIDENTIAL AND NONRESIDENTIAL REAL PROPERTY WITHOUT
12 LIMITATION.
13 (B) CLASSIFICATION TO BE SPECIFIED.--THE APPLICATION FOR
14 EXAMINATION, ORIGINAL CERTIFICATION AND RENEWAL OF CERTIFICATION
15 SHALL SPECIFY THE CLASSIFICATION BEING APPLIED FOR.
16 (C) APPLICATION.--AN APPLICANT FOR CERTIFICATION AS A
17 CERTIFIED REAL ESTATE APPRAISER SHALL SUBMIT A WRITTEN
18 APPLICATION ON FORMS PROVIDED BY THE BOARD EVIDENCING THAT:
19 (1) HE OR SHE IS OF GOOD MORAL CHARACTER.
20 (2) HIS OR HER APPLICATION HAS BEEN ACCOMPANIED BY THE
21 APPLICATION FEE.
22 (D) RESIDENTIAL CERTIFICATION.--AS A PREREQUISITE TO TAKING
23 THE EXAMINATION FOR CERTIFICATION RELATING SOLELY TO THE
24 APPRAISAL OF RESIDENTIAL REAL PROPERTY, AN APPLICANT SHALL, IN
25 ADDITION TO MEETING THE REQUIREMENTS OF SUBSECTION (C), MEET THE
26 MINIMUM EDUCATION AND EXPERIENCE REQUIREMENTS ESTABLISHED
27 PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND
28 ENFORCEMENT ACT OF 1989.
29 (E) GENERAL CERTIFICATION.--AS A PREREQUISITE TO TAKING THE
30 EXAMINATION FOR THE GENERAL CERTIFICATION RELATING TO THE
19890S0756B2420 - 38 -
1 APPRAISAL OF REAL PROPERTY, AN APPLICANT SHALL, IN ADDITION TO
2 MEETING THE REQUIREMENTS OF SUBSECTION (C), MEET THE MINIMUM
3 EDUCATION AND EXPERIENCE REQUIREMENTS ESTABLISHED PURSUANT TO
4 THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT
5 OF 1989.
6 (F) DEFINITION OF SUBJECTS.--THE BOARD SHALL PRESCRIBE AND
7 DEFINE THE SUBJECTS RELATED TO REAL PROPERTY APPRAISAL AND THE
8 EXPERIENCE IN REAL PROPERTY APPRAISAL WHICH WILL SATISFY THE
9 REQUIREMENTS OF SUBSECTIONS (D) AND (E). TO THE EXTENT PERMITTED
10 PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND
11 ENFORCEMENT ACT OF 1989, THE BOARD MAY GIVE CREDIT TO AN
12 APPLICANT FOR CLASSROOM HOURS OF ACADEMIC EXPERIENCE
13 SUCCESSFULLY COMPLETED PRIOR TO THE BOARD'S PRESCRIPTION AND
14 DEFINITION OF SUBJECTS PURSUANT TO THIS SUBSECTION.
15 (G) EXAMINATIONS.--EXAMINATIONS FOR CERTIFICATION SHALL BE
16 SELECTED IN ACCORDANCE WITH THE FINANCIAL INSTITUTIONS REFORM,
17 RECOVERY AND ENFORCEMENT ACT OF 1989. EXAMINATIONS SHALL BE
18 PREPARED AND ADMINISTERED BY A QUALIFIED AND APPROVED
19 PROFESSIONAL TESTING ORGANIZATION IN ACCORDANCE WITH SECTION
20 812.1 OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS
21 THE ADMINISTRATIVE CODE OF 1929.
22 (H) GUIDELINES AND REGULATIONS.--IN ORDER TO FACILITATE THE
23 SPEEDY IMPLEMENTATION OF THIS ACT, THE BOARD SHALL HAVE THE
24 POWER AND AUTHORITY TO PROMULGATE, ADOPT AND USE GUIDELINES TO
25 PRESCRIBE THE EDUCATION, EXPERIENCE, EXAMINATION AND OTHER
26 QUALIFICATIONS REQUIRED FOR CERTIFICATION PURSUANT TO THIS
27 SECTION. SUCH GUIDELINES SHALL BE PUBLISHED IN THE PENNSYLVANIA
28 BULLETIN. THE GUIDELINES SHALL NOT BE SUBJECT TO REVIEW PURSUANT
29 TO SECTION 205 OF THE ACT OF JULY 31, 1968 (P.L.769, NO.240),
30 REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW, SECTIONS 204(B)
19890S0756B2420 - 39 -
1 AND 301(10) OF THE ACT OF OCTOBER 15, 1980 (P.L.950, NO.164),
2 KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, OR THE ACT OF JUNE 25,
3 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY REVIEW ACT, AND
4 SHALL BE EFFECTIVE FOR A PERIOD NOT TO EXCEED TWO YEARS FROM THE
5 EFFECTIVE DATE OF THIS ACT. AFTER THE EXPIRATION OF THE TWO-YEAR
6 PERIOD, THE GUIDELINES SHALL EXPIRE AND SHALL BE REPLACED BY
7 REGULATIONS WHICH SHALL HAVE BEEN PROMULGATED, ADOPTED AND
8 PUBLISHED AS PROVIDED BY LAW.
9 SECTION 7. RECIPROCITY.
10 THE BOARD SHALL HAVE THE POWER TO GRANT A RECIPROCAL
11 CERTIFICATION TO AN APPLICANT WHO IS CERTIFIED OR LICENSED AS AN
12 APPRAISER IN ANOTHER STATE AND HAS DEMONSTRATED QUALIFICATIONS
13 WHICH EQUAL OR EXCEED THOSE REQUIRED PURSUANT TO THIS ACT IN THE
14 DETERMINATION OF THE BOARD, PROVIDED THAT NO CERTIFICATE SHALL
15 BE GRANTED UNDER THIS SECTION TO AN APPLICANT UNLESS THE STATE
16 IN WHICH THE APPLICANT IS CERTIFIED OR LICENSED AFFORDS
17 RECIPROCAL TREATMENT TO PERSONS WHO ARE RESIDENTS OF THIS
18 COMMONWEALTH AND WHO ARE CERTIFIED PURSUANT TO THIS ACT.
19 SECTION 8. TEMPORARY PRACTICE.
20 AS REQUIRED BY THE FINANCIAL INSTITUTIONS REFORM, RECOVERY
21 AND ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 108 STAT. 183),
22 THE BOARD SHALL RECOGNIZE ON A TEMPORARY BASIS THE CERTIFICATION
23 OR LICENSE OF AN APPRAISER ISSUED BY ANOTHER STATE IF:
24 (1) THE PROPERTY TO BE APPRAISED IS PART OF A FEDERALLY
25 RELATED TRANSACTION;
26 (2) THE APPRAISER'S BUSINESS IS OF A TEMPORARY NATURE;
27 AND
28 (3) THE APPRAISER REGISTERS WITH THE BOARD.
29 SECTION 9. FEES.
30 (A) IMPOSITION AND INCREASES.--ALL FEES ESTABLISHED PURSUANT
19890S0756B2420 - 40 -
1 TO THIS ACT SHALL BE FIXED BY THE BOARD BY REGULATION AND SHALL
2 BE SUBJECT TO THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN
3 AS THE REGULATORY REVIEW ACT. IF THE REVENUES RAISED BY FEES,
4 FINES AND CIVIL PENALTIES IMPOSED PURSUANT TO THIS ACT ARE NOT
5 SUFFICIENT TO MEET EXPENDITURES OVER A TWO-YEAR PERIOD, THE
6 BOARD SHALL INCREASE THOSE FEES BY REGULATION SO THAT THE
7 PROJECTED REVENUES WILL MEET OR EXCEED PROJECTED EXPENDITURES.
8 (B) ADDITIONAL INCREASES.--IF THE BUREAU OF PROFESSIONAL AND
9 OCCUPATIONAL AFFAIRS DETERMINES THAT THE FEES ESTABLISHED BY THE
10 BOARD UNDER SUBSECTION (A) ARE INADEQUATE TO MEET THE MINIMUM
11 ENFORCEMENT EFFORTS REQUIRED BY THIS ACT, THEN THE BUREAU, AFTER
12 CONSULTATION WITH THE BOARD AND SUBJECT TO THE REGULATORY REVIEW
13 ACT, SHALL INCREASE THE FEES BY REGULATION IN AN AMOUNT THAT
14 ADEQUATE REVENUES ARE RAISED TO MEET THE REQUIRED ENFORCEMENT
15 EFFORT.
16 (C) ADDITIONAL FEES.--IN ADDITION TO FEES ESTABLISHED
17 PURSUANT TO THIS ACT, THE BOARD IS AUTHORIZED TO COLLECT AND
18 TRANSMIT TO THE APPRAISAL SUBCOMMITTEE ESTABLISHED FEES REQUIRED <--
19 PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND
20 ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183) FEES <--
21 REQUIRED UNDER THAT ACT.
22 SECTION 10. CERTIFICATION RENEWAL; RECORDS.
23 (A) RENEWAL TERM.--RENEWAL OF CERTIFICATION SHALL BE ON A
24 BIENNIAL BASIS.
25 (B) CONTINUING EDUCATION.--THE BOARD SHALL BY REGULATION
26 REQUIRE EVIDENCE OF PROFESSIONAL ACTIVITY OR CONTINUING
27 EDUCATION AS A CONDITION OF CERTIFICATION RENEWAL IF, AND ONLY
28 TO THE MINIMUM EXTENT, REQUIRED PURSUANT TO THE FINANCIAL
29 INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989
30 (PUBLIC LAW 101-73, 103 STAT. 183). NO CREDIT SHALL BE GIVEN FOR
19890S0756B2420 - 41 -
1 ANY COURSE IN OFFICE MANAGEMENT OR PRACTICE BUILDING. IN ORDER
2 TO FACILITATE THE SPEEDY IMPLEMENTATION OF THIS ACT, THE BOARD
3 SHALL HAVE THE POWER AND AUTHORITY TO PROMULGATE, ADOPT AND USE
4 GUIDELINES TO PRESCRIBE THE EVIDENCE OF PROFESSIONAL ACTIVITY OR
5 CONTINUING CERTIFICATION REQUIRED FOR CERTIFICATION RENEWAL
6 PURSUANT TO THIS SECTION. SUCH GUIDELINES SHALL BE PUBLISHED IN
7 THE PENNSYLVANIA BULLETIN. THE GUIDELINES SHALL NOT BE SUBJECT
8 TO REVIEW PURSUANT TO SECTION 205 OF THE ACT OF JULY 31, 1968
9 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS
10 LAW, SECTIONS 204(B) AND 301(10) OF THE ACT OF OCTOBER 15, 1980
11 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, OR
12 THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE
13 REGULATORY REVIEW ACT, AND SHALL BE EFFECTIVE FOR A PERIOD NOT
14 TO EXCEED TWO YEARS FROM THE EFFECTIVE DATE OF THIS ACT. AFTER
15 THE EXPIRATION OF THE TWO-YEAR PERIOD, THE GUIDELINES SHALL
16 EXPIRE AND SHALL BE REPLACED BY REGULATIONS WHICH SHALL HAVE
17 BEEN PROMULGATED, ADOPTED AND PUBLISHED AS PROVIDED BY LAW.
18 (C) RECORDS.--A RECORD OF ALL PERSONS CERTIFIED AS REAL
19 ESTATE APPRAISERS IN THIS COMMONWEALTH SHALL BE KEPT IN THE
20 OFFICE OF THE BOARD AND SHALL BE OPEN TO PUBLIC INSPECTION AND
21 COPYING UPON PAYMENT OF A NOMINAL FEE FOR COPYING THE RECORD.
22 EACH CERTIFICATEHOLDER SHALL ADVISE THE BOARD OF THE ADDRESS OF
23 HIS OR HER PRINCIPAL PLACE OF BUSINESS.
24 SECTION 11. DISCIPLINARY AND CORRECTIVE MEASURES.
25 (A) AUTHORITY OF BOARD.--THE BOARD MAY DENY, SUSPEND OR
26 REVOKE CERTIFICATES, OR LIMIT, RESTRICT OR REPRIMAND A
27 CERTIFICATEHOLDER FOR ANY OF THE FOLLOWING CAUSES:
28 (1) PROCURING OR ATTEMPTING TO PROCURE A CERTIFICATE OR
29 RENEWAL OF A CERTIFICATE PURSUANT TO THIS ACT BY KNOWINGLY
30 MAKING A FALSE STATEMENT, SUBMITTING FALSE INFORMATION, OR
19890S0756B2420 - 42 -
1 REFUSING TO PROVIDE COMPLETE INFORMATION IN RESPONSE TO A
2 QUESTION IN AN APPLICATION FOR CERTIFICATION OR RENEWAL
3 THROUGH ANY FORM OF FRAUD OR MISREPRESENTATION.
4 (2) FAILING TO MEET THE MINIMUM QUALIFICATIONS
5 ESTABLISHED BY THIS ACT.
6 (3) PAYING, OR OFFERING TO PAY, ANY VALUABLE
7 CONSIDERATION OTHER THAN PROVIDED FOR BY THIS ACT TO ANY
8 MEMBER OR EMPLOYEE OF THE BOARD TO PROCURE A CERTIFICATE
9 UNDER THIS ACT.
10 (4) BEING CONVICTED OF OR PLEADING GUILTY TO A CRIME
11 WHICH IS SUBSTANTIALLY RELATED TO THE QUALIFICATIONS,
12 FUNCTIONS AND DUTIES OF A PERSON DEVELOPING REAL PROPERTY
13 APPRAISALS AND COMMUNICATING REAL PROPERTY APPRAISALS TO
14 OTHERS.
15 (5) PERFORMING AN ACT OR OMITTING AN ACT WHEN SUCH
16 PERFORMANCE OR OMISSION INVOLVES DISHONESTY, FRAUD OR
17 MISREPRESENTATION WITH INTENT TO SUBSTANTIALLY BENEFIT THE
18 CERTIFICATEHOLDER IN HIS PROFESSION OR WITH THE INTENT TO
19 SUBSTANTIALLY INJURE ANOTHER PERSON.
20 (6) VIOLATING ANY OF THE STANDARDS FOR THE DEVELOPMENT
21 OR COMMUNICATION OF REAL PROPERTY APPRAISALS AS REQUIRED
22 PURSUANT TO THIS ACT OR THE FINANCIAL INSTITUTIONS REFORM,
23 RECOVERY AND ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 103
24 STAT. 183).
25 (7) FAILING OR REFUSING, WITHOUT GOOD CAUSE, TO EXERCISE
26 REASONABLE DILIGENCE IN DEVELOPING AN APPRAISAL, PREPARING AN
27 APPRAISAL REPORT OR COMMUNICATING AN APPRAISAL.
28 (8) NEGLIGENTLY OR INCOMPETENTLY DEVELOPING AN
29 APPRAISAL, PREPARING AN APPRAISAL REPORT OR COMMUNICATING AN
30 APPRAISAL.
19890S0756B2420 - 43 -
1 (9) WILLFULLY DISREGARDING OR VIOLATING ANY OF THE
2 PROVISIONS OF THIS ACT OR THE GUIDELINES OR REGULATIONS OF
3 THE BOARD FOR THE ADMINISTRATION AND ENFORCEMENT OF THE
4 PROVISIONS OF THIS ACT.
5 (10) ACCEPTING AN APPRAISAL ASSIGNMENT WHEN THE
6 EMPLOYMENT ITSELF IS CONTINGENT UPON THE APPRAISER'S
7 REPORTING A PREDETERMINED ANALYSIS OR OPINION, OR WHERE THE
8 FEE TO BE PAID FOR THE PERFORMANCE OF THE APPRAISAL
9 ASSIGNMENT IS CONTINGENT UPON THE OPINION, CONCLUSION OR
10 VALUATION REACHED, OR UPON THE CONSEQUENCE RESULTING FROM THE
11 APPRAISAL ASSIGNMENT.
12 (11) VIOLATING THE CONFIDENTIAL NATURE OF RECORDS TO
13 WHICH THE APPRAISER GAINED ACCESS THROUGH EMPLOYMENT OR
14 ENGAGEMENT AS AN APPRAISER.
15 (12) MAKING THE FEE OR COMPENSATION CONTINGENT UPON AN
16 AWARD OR RECOVERY IN ANY CASE WHERE THE AMOUNT OF THE AWARD
17 OR RECOVERY WOULD BE AFFECTED BY THE APPRAISAL.
18 (13) BASING THE FEE OR COMPENSATION ON A PERCENTAGE OF
19 THE FINAL ESTIMATE OF VALUE.
20 (14) CONTRACTING FOR OR ACCEPTING COMPENSATION FOR
21 APPRAISAL SERVICES IN THE FORM OF A COMMISSION, REBATE,
22 DIVISION OF BROKERAGE COMMISSIONS OR ANY OTHER SIMILAR FORM.
23 (15) HAVING A LICENSE OR CERTIFICATE TO PERFORM
24 APPRAISALS SUSPENDED, REVOKED, OR REFUSED OR RECEIVING OTHER
25 DISCIPLINARY ACTIONS BY THE APPRAISAL LICENSURE OR
26 CERTIFICATION AUTHORITY OF ANOTHER STATE, TERRITORY, OR
27 COUNTRY.
28 (B) BOARD ACTION.--WHEN THE BOARD FINDS THAT THE
29 CERTIFICATION OR APPLICATION FOR CERTIFICATION OR RENEWAL OF ANY
30 PERSON MAY BE DENIED, REVOKED, RESTRICTED OR SUSPENDED UNDER THE
19890S0756B2420 - 44 -
1 TERMS OF SUBSECTION (A), THE BOARD MAY:
2 (1) DENY THE APPLICATION FOR CERTIFICATION OR RENEWAL.
3 (2) ADMINISTER A PUBLIC REPRIMAND.
4 (3) REVOKE, SUSPEND, LIMIT OR OTHERWISE RESTRICT A
5 CERTIFICATE AS DETERMINED BY THE BOARD.
6 (4) SUSPEND ENFORCEMENT OF ITS FINDINGS THEREOF AND
7 PLACE A CERTIFICATEHOLDER ON PROBATION WITH THE RIGHT TO
8 VACATE THE PROBATIONARY ORDER FOR NONCOMPLIANCE.
9 (5) RESTORE A SUSPENDED CERTIFICATION AND IMPOSE ANY
10 DISCIPLINARY OR CORRECTIVE MEASURE WHICH IT MIGHT ORIGINALLY
11 HAVE IMPOSED.
12 (C) HEARING.--ALL ACTIONS OF THE BOARD SHALL BE TAKEN
13 SUBJECT TO THE RIGHT OF NOTICE, HEARING AND ADJUDICATION AND THE
14 RIGHT OF APPEAL THEREFROM IN ACCORDANCE WITH 2 PA.C.S. (RELATING
15 TO ADMINISTRATIVE LAW AND PROCEDURE). APPEALS FROM ACTIONS OF
16 THE BOARD SHALL BE TAKEN TO COMMONWEALTH COURT OR TO SUCH OTHER
17 COURT AS PRESCRIBED BY LAW.
18 SECTION 12. REINSTATEMENT OF CERTIFICATE.
19 UNLESS ORDERED TO DO SO BY COMMONWEALTH COURT OR AN APPEAL
20 THEREFROM, THE BOARD SHALL NOT REINSTATE THE CERTIFICATE OF A
21 PERSON TO PRACTICE AS A CERTIFIED REAL ESTATE APPRAISER PURSUANT
22 TO THIS ACT, WHICH HAS BEEN REVOKED. ANY PERSON WHOSE
23 CERTIFICATION HAS BEEN REVOKED MAY APPLY FOR REINSTATEMENT,
24 AFTER A PERIOD OF AT LEAST FIVE YEARS, BUT MUST MEET ALL OF THE
25 CERTIFICATION QUALIFICATIONS OF THIS ACT, INCLUDING THE
26 EXAMINATION REQUIREMENT, IF HE OR SHE DESIRES TO HOLD HIMSELF OR
27 HERSELF OUT OR TO PRACTICE AS A CERTIFIED REAL ESTATE APPRAISER
28 PURSUANT TO THIS ACT AT ANY TIME AFTER SUCH REVOCATION.
29 SECTION 13. REPORTING OF MULTIPLE CERTIFICATION.
30 ANY APPRAISER CERTIFIED IN THIS COMMONWEALTH WHO IS ALSO
19890S0756B2420 - 45 -
1 CERTIFIED OR LICENSED TO PERFORM APPRAISALS IN ANY OTHER STATE,
2 TERRITORY OR COUNTRY SHALL REPORT THIS INFORMATION TO THE BOARD
3 ON THE BIENNIAL RENEWAL APPLICATION. ANY DISCIPLINARY ACTION
4 TAKEN IN ANY OTHER STATE, TERRITORY OR COUNTRY SHALL BE REPORTED
5 TO THE BOARD ON THE BIENNIAL RENEWAL APPLICATION, OR WITHIN 90
6 DAYS OF DISPOSITION, WHICHEVER IS SOONER. MULTIPLE LICENSURE OR
7 CERTIFICATION SHALL BE NOTED BY THE BOARD ON THE CERTIFIED
8 APPRAISER'S RECORD, AND SUCH STATE, TERRITORY OR COUNTRY SHALL
9 BE NOTIFIED BY THE BOARD OF ANY DISCIPLINARY ACTIONS TAKEN
10 AGAINST SAID CERTIFIED APPRAISER IN THIS COMMONWEALTH.
11 SECTION 14. SURRENDER OF SUSPENDED OR REVOKED CERTIFICATE.
12 THE BOARD SHALL REQUIRE A PERSON WHOSE CERTIFICATION HAS BEEN
13 SUSPENDED OR REVOKED TO RETURN THE CERTIFICATE IN SUCH MANNER AS
14 THE BOARD DIRECTS. FAILURE TO DO SO SHALL BE A MISDEMEANOR OF
15 THE THIRD DEGREE.
16 SECTION 15. PENALTIES.
17 (A) CRIMINAL PENALTIES.--A PERSON WHO VIOLATES THIS ACT
18 COMMITS A MISDEMEANOR OF THE THIRD DEGREE AND SHALL, UPON
19 CONVICTION, BE SENTENCED TO PAY A FINE OF UP TO $1,000 OR TO
20 IMPRISONMENT FOR NOT MORE THAN 90 DAYS, OR BOTH.
21 (B) CIVIL PENALTY.--IN ADDITION TO ANY OTHER CIVIL REMEDY OR
22 CRIMINAL PENALTY PROVIDED FOR IN THIS ACT, THE BOARD, BY A VOTE
23 OF THE MAJORITY OF THE MAXIMUM NUMBER OF THE AUTHORIZED
24 MEMBERSHIP OF THE BOARD AS PROVIDED BY LAW, OR BY A VOTE OF THE
25 MAJORITY OF THE DULY QUALIFIED AND CONFIRMED MEMBERSHIP OR A
26 MINIMUM OF THREE MEMBERS, WHICHEVER IS GREATER, MAY LEVY A CIVIL
27 PENALTY OF UP TO $1,000 ON ANY CURRENT CERTIFICATEHOLDER WHO
28 VIOLATES ANY PROVISION OF THIS ACT OR ON ANY PERSON WHO HOLDS
29 HIMSELF OR HERSELF OUT AS A CERTIFIED REAL ESTATE APPRAISER OR
30 PERFORMS APPRAISALS FOR WHICH CERTIFICATION OR LICENSURE IS
19890S0756B2420 - 46 -
1 REQUIRED PURSUANT TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY
2 AND ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183)
3 WITHOUT BEING SO CERTIFIED PURSUANT TO THIS ACT. THE BOARD SHALL
4 LEVY THIS PENALTY ONLY AFTER AFFORDING THE ACCUSED PARTY THE
5 OPPORTUNITY FOR A HEARING, AS PROVIDED IN 2 PA.C.S. (RELATING TO
6 ADMINISTRATIVE LAW AND PROCEDURE).
7 (C) DISPOSITION.--ALL FINES AND CIVIL PENALTIES IMPOSED IN
8 ACCORDANCE WITH THIS SECTION SHALL BE PAID INTO THE PROFESSIONAL
9 LICENSURE AUGMENTATION ACCOUNT.
10 SECTION 16. SUBPOENAS.
11 (A) POWER TO ISSUE.--THE BOARD SHALL HAVE THE AUTHORITY TO
12 ISSUE SUBPOENAS, UPON APPLICATION OF AN ATTORNEY RESPONSIBLE FOR
13 REPRESENTING THE COMMONWEALTH IN DISCIPLINARY MATTERS BEFORE THE
14 BOARD, FOR THE PURPOSE OF INVESTIGATING ALLEGED VIOLATIONS OF
15 THE DISCIPLINARY PROVISIONS ADMINISTERED BY THE BOARD. THE BOARD
16 SHALL HAVE THE POWER TO SUBPOENA WITNESSES, TO ADMINISTER OATHS,
17 TO EXAMINE WITNESSES AND TO TAKE SUCH TESTIMONY OR COMPEL THE
18 PRODUCTION OF SUCH BOOKS, RECORDS, PAPERS AND DOCUMENTS AS IT
19 MAY DEEM NECESSARY OR PROPER IN, AND PERTINENT TO, ANY
20 PROCEEDING, INVESTIGATION OR HEARING HELD OR HAD BY IT. CLIENT
21 RECORDS MAY NOT BE SUBPOENAED WITHOUT CONSENT OF THE CLIENT OR
22 WITHOUT ORDER OF A COURT OF COMPETENT JURISDICTION ON A SHOWING
23 THAT THE RECORDS ARE REASONABLY NECESSARY FOR THE CONDUCT OF THE
24 INVESTIGATION. THE COURT MAY IMPOSE SUCH LIMITATIONS ON THE
25 SCOPE OF THE SUBPOENA AS ARE NECESSARY TO PREVENT UNNECESSARY
26 INTRUSION INTO CLIENT CONFIDENTIAL INFORMATION. THE BOARD IS
27 AUTHORIZED TO APPLY TO COMMONWEALTH COURT TO ENFORCE ITS
28 SUBPOENAS.
29 (B) NOTIFICATION OF BOARD.--AN ATTORNEY RESPONSIBLE FOR
30 REPRESENTING THE COMMONWEALTH IN DISCIPLINARY MATTERS BEFORE THE
19890S0756B2420 - 47 -
1 BOARD SHALL NOTIFY THE BOARD IMMEDIATELY UPON RECEIVING
2 NOTIFICATION OF AN ALLEGED VIOLATION OF THIS ACT. THE BOARD
3 SHALL MAINTAIN CURRENT RECORDS OF ALL REPORTS OF ALLEGED
4 VIOLATIONS AND PERIODICALLY REVIEW THE RECORDS FOR THE PURPOSE
5 OF DETERMINING THAT EACH ALLEGED VIOLATION HAS BEEN RESOLVED IN
6 A TIMELY MANNER.
7 SECTION 17. INJUNCTIVE RELIEF.
8 (A) INJUNCTION.-- A VIOLATION OF SECTION 3 MAY BE ENJOINED
9 BY THE COURTS UPON PETITION OF THE SECRETARY OR THE BOARD. IN
10 ANY PROCEEDING UNDER THIS SECTION, IT SHALL NOT BE NECESSARY TO
11 SHOW THAT ANY PERSON IS INDIVIDUALLY INJURED BY THE ACTIONS
12 COMPLAINED OF. IF THE COURT FINDS THAT THE RESPONDENT HAS
13 VIOLATED SECTION 3, IT SHALL ENJOIN HIM OR HER FROM SO
14 PRACTICING OR HOLDING HIMSELF OR HERSELF OUT UNTIL HE OR SHE HAS
15 BEEN DULY CERTIFIED. PROCEDURE IN SUCH CASES SHALL BE THE SAME
16 AS IN ANY OTHER INJUNCTION SUIT.
17 (B) REMEDY CUMULATIVE.--THE INJUNCTIVE REMEDY PROVIDED IN
18 THIS SECTION SHALL BE IN ADDITION TO ANY OTHER CIVIL OR CRIMINAL
19 PROSECUTION AND PUNISHMENT.
20 SECTION 18. STATE LICENSURE REQUIREMENTS.
21 PERSONS WHO ARE CERTIFIED AS REAL ESTATE APPRAISERS UNDER
22 THIS ACT SHALL ALSO BE DEEMED TO BE STATE-LICENSED APPRAISERS
23 UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND
24 ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-73, 103 STAT. 183).
25 SECTION 19. APPROPRIATION.
26 THE SUM OF $85,000, OR AS MUCH THEREOF AS MAY BE NECESSARY,
27 IS HEREBY APPROPRIATED FROM THE PROFESSIONAL LICENSURE
28 AUGMENTATION ACCOUNT WITHIN THE GENERAL FUND TO THE BUREAU OF
29 PROFESSIONAL AND OCCUPATIONAL AFFAIRS IN THE DEPARTMENT OF STATE
30 FOR THE PAYMENT OF COSTS OF PROCESSING CERTIFICATES AND
19890S0756B2420 - 48 -
1 RENEWALS, FOR THE OPERATION OF THE BOARD AND FOR OTHER GENERAL
2 COSTS OF THE BUREAU OPERATIONS RELATING TO THIS ACT. THE
3 APPROPRIATION GRANTED SHALL BE REPAID BY THE BOARD WITHIN SIX
4 YEARS OF THE BEGINNING OF ISSUANCE OF CERTIFICATES BY THE BOARD.
5 SECTION 20. EFFECTIVE DATE.
6 THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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