PRIOR PRINTER'S NO. 788 PRINTER'S NO. 933
No. 721 Session of 2007
INTRODUCED BY PILEGGI, CORMAN, ERICKSON, PICCOLA, FONTANA, COSTA, RAFFERTY, M. WHITE, MUSTO, DINNIMAN, WAUGH, BAKER AND WASHINGTON, APRIL 2, 2007
SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, AS AMENDED, MAY 1, 2007
AN ACT 1 Amending the act of July 10, 1990 (P.L.404, No.98), entitled "An 2 act providing for the certification of real estate 3 appraisers; specifying requirements for certification; 4 providing for sanctions and penalties; and making an 5 appropriation," further providing for real estate appraiser 6 certification required, for powers and duties of board, for 7 application and qualifications, for reciprocity, for 8 certification renewal and record, for disciplinary and 9 corrective measures, for reinstatement, for reporting of 10 multiple certification, for surrender of suspended or revoked 11 certificate, for penalties, for injunctive relief and for 12 scope of practice. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Section 3 of the act of July 10, 1990 (P.L.404, 16 No.98), known as the Real Estate Appraisers Certification Act, 17 amended July 2, 1996 (P.L.460, No.71), is amended to read: 18 Section 3. Real estate appraiser certification required. 19 It shall be unlawful[, on or after January 1, 1993,] for any 20 person to hold himself out as a State-certified real estate 21 appraiser or to perform appraisals required by the Financial 22 Institutions Reform, Recovery, and Enforcement Act of 1989
1 (Public Law 101-73, 103 Stat. 183) to be performed by a State- 2 certified or State-licensed real estate appraiser unless that 3 person holds an appropriate, current and valid certification 4 from the board to perform real estate appraisals. It shall be 5 unlawful [two years after the effective date of this act] for 6 any person to perform real estate appraisals in nonfederally 7 related transactions unless that person holds [a] an 8 appropriate, current and valid certificate or license from the 9 board to perform real estate appraisals. It shall be unlawful 10 for a person to hold himself out as a real estate appraiser or 11 appraiser trainee without an appropriate, current and valid 12 certificate or license from the board. 13 Section 2. Section 5 of the act is amended to read: 14 Section 5. Powers and duties of board. 15 The board shall have the following powers and duties: 16 (1) To pass upon the qualifications and fitness of 17 applicants for certification or licensure and to adopt and 18 revise rules and regulations requiring applicants for 19 certification or licensure as appraisers to pass examinations <-- 20 relating to their qualifications for certification or 21 licensure. 22 (2) To adopt and, from time to time, revise such rules 23 and regulations as may be necessary to carry out the 24 provisions of this act. Such regulations shall include, but 25 not be limited to, standards of professional appraisal 26 practice requiring that appraisals be performed in accordance 27 with generally accepted appraisal standards as required 28 pursuant to the Financial Institutions Reform, Recovery, and 29 Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183). 30 (3) To examine for, deny, approve, issue, revoke, 20070S0721B0933 - 2 -
1 suspend or renew certificates and licenses of appraisers and <-- 2 LICENSES OF appraiser trainees pursuant to this act and to <-- 3 conduct hearings in connection therewith. 4 (4) To conduct hearings upon complaints concerning 5 violations of the provisions of this act and the rules and 6 regulations adopted pursuant to this act and seek the 7 prosecution and enjoinder of all such violations. 8 (5) To expend moneys necessary to the proper carrying 9 out of its assigned duties. 10 (6) To establish fees for the operation of the board, 11 including fees for the issuance and renewal of certificates 12 and licenses and for examinations. 13 (7) To submit annually a report to the Professional 14 Licensure Committee of the House of Representatives and the 15 Consumer Protection and Professional Licensure Committee of 16 the Senate containing a description of the types of 17 complaints received, status of the cases, board action which 18 has been taken and length of time from the initial complaint 19 to final board resolution. 20 (8) To submit annually to the Department of State, an 21 estimate of the financial requirements of the board for its 22 administrative, investigative, legal and miscellaneous 23 expenses. 24 (9) To submit annually to the Appropriations Committees 25 of the House of Representatives and the Senate, 15 days after 26 the Governor has submitted his budget to the General 27 Assembly, a copy of the budget request for the upcoming 28 fiscal year which the board previously submitted to the 29 Department of State. 30 (10) To submit annually pursuant to the Financial 20070S0721B0933 - 3 -
1 Institutions Reform, Recovery, and Enforcement Act of 1989 a 2 roster listing individuals who have received State 3 certification. 4 Section 3. Section 6 of the act, amended July 2, 1996 5 (P.L.460, No.71) and October 18, 2000 (P.L.600, No.77), is 6 amended to read: 7 Section 6. Application and qualifications. 8 (a) Classes of certification.--There shall be three classes 9 of [certification for certified] certified and licensed real <-- 10 estate appraisers as follows: 11 (1) [Residential] Certified Residential Appraiser, which 12 shall consist of those persons applying for and granted 13 certification relating solely to the appraisal of residential 14 real property [as] in accordance with the criteria 15 established by the Appraiser Qualifications Board of the 16 Appraisal Foundation required pursuant to the Financial 17 Institutions Reform, Recovery, and Enforcement Act of 1989 18 (Public Law 101-73, 103 Stat. 183). 19 (2) [General] Certified General Appraiser, which shall 20 consist of those persons applying for and granted 21 certification relating to the appraisal of both residential 22 and nonresidential real property without limitation [as] in 23 accordance with the criteria established by the Appraiser 24 Qualifications Board of the Appraisal Foundation required 25 pursuant to the Financial Institutions Reform, Recovery, and 26 Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183). 27 (3) Broker/appraiser, which shall consist of those 28 persons who, [on the effective date of this act, are] as of 29 September 3, 1996, were licensed real estate brokers under 30 the act of February 19, 1980 (P.L.15, No.9), known as the 20070S0721B0933 - 4 -
1 Real Estate Licensing and Registration Act, and who, [within 2 two years of the effective date of this act, make] by 3 September 3, 1998, made application to the board and [are] 4 were granted without examination a broker/appraiser 5 certificate. A holder of a broker/appraiser certificate shall 6 only be permitted to perform those real property appraisals 7 that were permitted to be performed by a licensed real estate 8 broker under the Real Estate Licensing and Registration Act 9 as of [the effective date of this act] September 3, 1996. A 10 holder of a broker/appraiser certificate is not authorized to 11 perform real estate appraisals pursuant to the Financial 12 Institutions Reform, Recovery, and Enforcement Act of 1989. 13 (4) Licensed Real Estate Appraiser, if deemed <-- 14 appropriate, the board may establish a class of licensed real 15 estate appraisers, which shall consist of those persons who, 16 at a minimum, meet the requirements recommended by the 17 Appraiser Qualifications Board of the Appraisal Foundation 18 with regard to licensed appraisers on or after January 1, 19 2008. The board may prescribe limitations on the term, 20 renewal and continuing education of licensed real estate 21 appraisers consistent with progress toward certification. 22 (b) Classification to be specified.--The application for 23 examination, original certification or license and renewal of 24 certification or license shall specify the classification being 25 applied for. 26 (c) Application.--An applicant for certification or license 27 [as a certified or licensed real estate appraiser] shall submit <-- 28 a written application on forms provided by the board. The 29 application and any and all documentation submitted with the 30 application shall be subscribed and sworn to before a notary 20070S0721B0933 - 5 -
1 public. The applicant shall be held responsible for the 2 statements contained in the application. The making of a false 3 statement in an application may constitute a ground for 4 certification or license denial or revocation. The application 5 shall evidence that: 6 (1) He or she is of good moral character. 7 (2) His or her application has been accompanied by the 8 application fee. 9 (d) Residential Appraiser certification.--As a prerequisite 10 to taking the examination for certification relating solely to 11 the appraisal of residential real property, an applicant shall, 12 in addition to meeting the requirements of subsection (c), meet 13 the minimum education and experience requirements established 14 pursuant to the Financial Institutions Reform, Recovery, and 15 Enforcement Act of 1989. 16 (e) General Appraiser certification.--As a prerequisite to 17 taking the examination for the general certification relating to 18 the appraisal of real property, an applicant shall, in addition 19 to meeting the requirements of subsection (c), meet the minimum 20 education and experience requirements established pursuant to 21 the Financial Institutions Reform, Recovery, and Enforcement Act 22 of 1989. 23 (f) Definition of subjects.--The board shall prescribe and 24 define the subjects related to real property appraisal and the 25 experience in real property appraisal which will satisfy the 26 requirements of subsections (a), (d) [and (e)], (e) and (i). To 27 the extent permitted pursuant to the Financial Institutions 28 Reform, Recovery, and Enforcement Act of 1989 with regard to 29 certified appraisers, the board may give credit to an applicant 30 for classroom hours of academic experience successfully 20070S0721B0933 - 6 -
1 completed prior to the board's prescription and definition of 2 subjects pursuant to this subsection. 3 (g) Examinations.--Examinations for certification or license 4 shall be selected in accordance with the Financial Institutions 5 Reform, Recovery, and Enforcement Act of 1989. Examinations 6 shall be prepared and administered by a qualified and approved 7 professional testing organization in accordance with section 8 812.1 of the act of April 9, 1929 (P.L.177, No.175), known as 9 The Administrative Code of 1929. 10 (i) Appraiser trainee license.--In addition to the 11 certificates and licenses authorized in subsection (a), the 12 board shall issue an appraisal trainee license, without 13 examination, to any person who meets the appraiser trainee 14 educational requirements of the Appraiser Qualifications Board 15 of the Appraisal Foundation and who does not already hold an 16 appraiser credential under subsection (a). An appraiser trainee 17 shall operate under the direct supervision of a Certified 18 Residential Appraiser or Certified General Appraiser for the 19 purpose of completing the experience requirement for an 20 appraiser credential in subsection (a). An appraisal trainee 21 shall be permitted to assist in the performance of any appraisal 22 that is within the supervisory appraiser's scope of practice. 23 (j) Real estate brokers as appraisers.-- 24 (1) Nothing in this section shall preclude a licensed 25 real estate broker from also holding an appraiser license or 26 certificate under subsection (a)(1), (2) or (4) OR (2) or <-- 27 (i). 28 (2) All persons holding a broker/appraiser certificate 29 under subsection (a)(3) shall be entitled to hold the 30 certificate for the entire term and shall be entitled and 20070S0721B0933 - 7 -
1 subject to the privileges, obligations and renewals which 2 accompany the certificate. 3 Section 4. Section 7 of the act is amended to read: 4 Section 7. Reciprocity. 5 The board shall have the power to grant a reciprocal 6 [certification] certificate or license to an applicant who is 7 certified or licensed as an appraiser in another state and has 8 demonstrated qualifications which equal or exceed those required 9 pursuant to this act in the determination of the board, provided 10 that no certificate or license shall be granted under this 11 section to an applicant unless the state in which the applicant 12 is certified or licensed affords reciprocal treatment to persons 13 who are residents of this Commonwealth and who are certified or 14 licensed pursuant to this act. 15 Section 5. Section 10 of the act, amended December 20, 2000 16 (P.L.733, No.103), is amended to read: 17 Section 10. Certification and licensure renewal; records. 18 (a) Renewal term.--Renewal of certification or licensure 19 shall be on a biennial basis for persons in good standing, 20 except that the board may prescribe limitations on the number of 21 times that a licensed real estate appraiser or appraiser trainee 22 may renew such CERTIFICATES AND licenses. <-- 23 (b) Continuing education for licensed appraisers and <-- 24 certified residential and general appraisers.--The board shall 25 by regulation require evidence of professional activity or 26 continuing education as a condition of licensure renewal of <-- 27 appraisers and certification renewal of residential and general 28 appraisers if, and only to the minimum extent, required pursuant 29 to the Financial Institutions Reform, Recovery, and Enforcement 30 Act of 1989 (Public Law 101-73, 103 Stat. 183). No credit shall 20070S0721B0933 - 8 -
1 be given for any course in office management or practice 2 building. 3 (b.1) Continuing education for broker/appraisers.-- 4 Broker/appraisers shall be subject to the same continuing 5 education requirements for certification renewal as residential 6 and general appraisers. The board shall have the power and 7 authority to promulgate regulations to prescribe evidence of 8 continuing education required for certification renewal pursuant 9 to this section. 10 (b.2) Continuing education for appraisal trainees.-- 11 Appraisal trainees shall be subject to such continuing education 12 requirements for licensure renewal as the board may prescribe by 13 regulation. 14 (c) Records.--A record of all persons licensed as appraiser 15 trainees and all persons certified or licensed as real estate <-- 16 appraisers in this Commonwealth shall be kept in the office of 17 the board and shall be open to public inspection and copying 18 upon payment of a nominal fee for copying the record. Each 19 certificateholder and licensee shall advise the board of the 20 address of his or her principal place of business. 21 Section 6. Section 11 of the act, amended July 2, 1996 22 (P.L.460, No.71), is amended to read: 23 Section 11. Disciplinary and corrective measures. 24 (a) Authority of board.--The board may deny, suspend or 25 revoke certificates or licenses, or limit, restrict or reprimand 26 a certificateholder or licensee for any of the following causes: 27 (1) Procuring or attempting to procure a certificate or 28 license or renewal of a certificate or license pursuant to 29 this act by knowingly making a false statement, submitting 30 false information or refusing to provide complete information 20070S0721B0933 - 9 -
1 in response to a question in an application for certification 2 or licensure or renewal of certification or licensure through 3 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 or licensee in his profession or with the 19 intent to 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. 20070S0721B0933 - 10 -
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 by an appraisal
25 licensure or certification authority of another state,
26 territory or country, or receiving other disciplinary actions
27 by the appraisal licensure or certification authority of
28 another state, territory or country.
29 (b) Board action.--When the board finds that the
30 [certification] certificate or license or application for
20070S0721B0933 - 11 -
1 certification or licensure or renewal of [any person] 2 certification or licensure may be denied, revoked, restricted or 3 suspended under the terms of subsection (a), the board may: 4 (1) Deny the application for certification or licensure 5 for renewal of certification or licensure. 6 (2) Administer a public reprimand. 7 (3) Revoke, suspend, limit or otherwise restrict a 8 certificate or license as determined by the board. 9 (4) Suspend enforcement of its findings thereof and 10 place a certificateholder on probation with the right to 11 vacate the probationary order for noncompliance. 12 (5) Restore a suspended [certification] certificate or 13 license and impose any disciplinary or corrective measure 14 which it might originally have imposed. 15 (c) Hearing.--All actions of the board shall be taken 16 subject to the right of notice, hearing and adjudication and the 17 right of appeal therefrom in accordance with 2 Pa.C.S. (relating 18 to administrative law and procedure). Appeals from actions of 19 the board shall be taken to Commonwealth Court or to such other 20 court as prescribed by law. 21 Section 7. Sections 12, 13, 14, 15 and 17 of the act are 22 amended to read: 23 Section 12. Reinstatement of certificate or license. 24 Unless ordered to do so by Commonwealth Court or an appeal 25 therefrom, the board shall not reinstate the certificate or 26 license of a person to practice as a certified or licensed real <-- 27 estate appraiser, or as an appraiser trainee, pursuant to this 28 act, which has been revoked. Any person whose [certification] 29 certificate or license has been revoked may apply for 30 reinstatement, after a period of at least five years, but must 20070S0721B0933 - 12 -
1 meet all of the certification or licensure qualifications of 2 this act, including the examination requirement, if he or she 3 desires to hold himself or herself out or to practice as a 4 [certified] real estate appraiser pursuant to this act at any 5 time after such revocation. 6 Section 13. Reporting of multiple certification. 7 Any appraiser certified or APPRAISER TRAINEE licensed in this <-- 8 Commonwealth who is also certified or licensed to perform 9 appraisals in any other state, territory or country shall report 10 this information to the board on the biennial renewal 11 application. Any disciplinary action taken in any other state, 12 territory or country shall be reported to the board on the 13 biennial renewal application, or within 90 days of disposition, 14 whichever is sooner. Multiple licensure or certification shall 15 be noted by the board on the [certified] appraiser's record, and 16 such state, territory or country shall be notified by the board 17 of any disciplinary actions taken against [said certified] the 18 appraiser in this Commonwealth. 19 Section 14. Surrender of suspended or revoked certificate. 20 The board shall require a person whose [certification] 21 certificate or license has been suspended or revoked to return 22 the certificate or license in such manner as the board directs. 23 Failure to do so shall be a misdemeanor of the third degree. 24 Section 15. Penalties. 25 (a) Criminal penalties.--A person who violates this act 26 commits a misdemeanor of the third degree and shall, upon 27 conviction, be sentenced to pay a fine of up to $1,000 or to 28 imprisonment for not more than 90 days, or both. 29 (b) Civil penalty.--In addition to any other civil remedy or 30 criminal penalty provided for in this act, the board, by a vote 20070S0721B0933 - 13 -
1 of the majority of the maximum number of the authorized 2 membership of the board as provided by law, or by a vote of the 3 majority of the duly qualified and confirmed membership or a 4 minimum of three members, whichever is greater, may levy a civil 5 penalty of up to $1,000 on any [current] certificateholder or <-- 6 licensee who violates any provision of this act or on any person 7 who holds himself or herself out as a certified or licensed real 8 estate appraiser or appraiser trainee or performs appraisals for 9 which certification [or licensure] is required pursuant to the 10 Financial Institutions Reform, Recovery, and Enforcement Act of 11 1989 (Public Law 101-73, 103 Stat. 183) without being so 12 certified pursuant to this act. The board shall levy this 13 PENALTY OF UP TO [$1,000] $10,000 ON ANY [CURRENT] <-- 14 CERTIFICATEHOLDER OR LICENSEE WHO VIOLATES ANY PROVISION OF THIS 15 ACT [OR]; ON ANY [PERSON] NONCERTIFICATEHOLDER WHO HOLDS HIMSELF 16 [OR HERSELF] OUT AS A [CERTIFIED] REAL ESTATE APPRAISER IN THIS 17 COMMONWEALTH OR PERFORMS APPRAISALS FOR WHICH CERTIFICATION OR 18 LICENSURE IS REQUIRED PURSUANT TO THE FINANCIAL INSTITUTIONS 19 REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101- 20 73, 103 STAT. 183) OR ANY OTHER APPRAISER WITHOUT BEING SO 21 CERTIFIED PURSUANT TO THIS ACT. THE BOARD SHALL LEVY THIS 22 penalty only after affording the accused party the opportunity 23 for a hearing, as provided in 2 Pa.C.S. (relating to 24 administrative law and procedure). 25 (c) Disposition.--All fines and civil penalties imposed in 26 accordance with this section shall be paid into the Professional 27 Licensure Augmentation Account. 28 Section 17. Injunctive relief. 29 (a) Injunction.--A violation of section 3 may be enjoined by 30 the courts upon petition of the secretary or the board. In any 20070S0721B0933 - 14 -
1 proceeding under this section, it shall not be necessary to show 2 that any person is individually injured by the actions 3 complained of. If the court finds that the respondent has 4 violated section 3, it shall enjoin him or her from so 5 practicing or holding himself or herself out until he or she has 6 been duly certified or licensed. Procedure in such cases shall 7 be the same as in any other injunction suit. 8 (b) Remedy cumulative.--The injunctive remedy provided in 9 this section shall be in addition to any other civil or criminal 10 prosecution and punishment. 11 Section 8. Section 18 of the act, amended July 2, 1996 12 (P.L.460, No.71), is amended to read: 13 Section 18. Scope of practice. 14 Persons who are certified as residential real estate 15 appraisers and general real estate appraisers under [this act] 16 section 6(a)(1) and (2) shall also have authority to perform 17 real estate appraisals in nonfederally related transactions 18 appropriate to their certification classification. 19 Brokers/appraisers shall continue to have authority to perform 20 real estate appraisals in nonfederally related transactions. 21 Persons who are otherwise licensed by the board shall have 22 authority to perform real estate appraisals in nonfederally 23 related transactions appropriate to their appraiser license 24 classification. 25 Section 9. This act shall take effect in 60 days. A19L63BIL/20070S0721B0933 - 15 -