Arizona-2011-SB1181-Introduced

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 32-3604, Arizona Revised Statutes, is amended to read:

START_STATUTE32-3604. State board of appraisal

A. A The state board of appraisal is established and is composed of nine members who are appointed by the governor pursuant to section 38‑211.

B. The membership of the board consists of:

1. Four Five members who are state certified or state licensed appraisers under this chapter, one two of whom is a are state certified general appraiser appraisers, one two of whom is a are state certified residential appraiser appraisers, and one of whom is either a state licensed certified residential or state certified general appraiser and one of whom is any state certified or state licensed appraiser. Membership in a professional appraisal organization or association is not a prerequisite to service on the board.

2. Three One public members member who are is not related within the third degree of consanguinity or affinity to any real estate appraiser.

3. A registered property tax agent.

4. One member, who is not a certified or licensed appraiser, who is employed by a lending institution that purchases or makes use of either commercial or residential appraisals and whose position of employment relates to the use of appraisals by that institution.

5. One member who is one of the following:

(a) A real estate salesperson, as defined by section 32‑2101, who holds a valid real estate license issued pursuant to chapter 20 of this title.

(b) A representative of a registered appraisal management company, as defined by section 32‑3661, who is not a licensed or certified appraiser in this state.

C. Members shall serve for staggered terms of three years.

D. Not more than two persons from the same professional appraisal organization or association may serve on the board concurrently. The governor may remove a member for cause.� No person may serve as a member of the board for more than two consecutive terms unless both of the following apply:

1. The person is appointed to serve the remainder of some other board member's term of office after that board member's seat is declared vacant.

2. The person's service for the remainder of the vacated term does not exceed eighteen months.

E. The public members member of the board shall not be engaged in the practice of appraising or be the owner or employee of any proprietary business involving appraisal education or testing of appraisers.

F. The board shall meet at least once each calendar quarter to conduct business. Places of future meetings shall be decided by the vote of members at meetings. By order of the chairman and if necessary to meet the requirements of this chapter, the board may hold special meetings or emergency meetings including meetings using conference telephone or other similar communications equipment in such a manner that the voices of all members participating in the meeting are simultaneously audible to all other members participating in the meeting.

G. The board shall meet to elect a chairman annually from among its members.

H. A majority of the members constitutes a quorum.

I. Each member of the board is eligible to receive compensation not to exceed one hundred fifty dollars for each day or seventy‑five dollars for each part of a day consisting of less than four hours actually spent in the conduct of the business of the board, plus reimbursement for all expenses pursuant to title 38, chapter 4, article 2.

J. The auditor general shall conduct a performance audit or a special audit of the board pursuant to section 41‑1279.03 on or before December 31, 2004 and at least once every ten years thereafter. The auditor general shall also conduct performance audits or special audits of the board when directed to do so by the joint legislative audit committee. END_STATUTE

Sec. 2. Section 32-3605, Arizona Revised Statutes, is amended to read:

START_STATUTE32-3605. State board of appraisal; duties

A. The board shall adopt rules in aid or in furtherance of this chapter.

B. The state board of appraisal shall:

1. In prescribing standards of professional appraisal practice, adopt standards that at a minimum are equal to the standards prescribed by the appraisal standards board.

2. In prescribing criteria for certification, adopt criteria that at a minimum are equal to the minimum criteria for certification adopted by the appraiser qualifications board.

3. In prescribing criteria for licensing, adopt criteria that at a minimum are equal to the minimum criteria for licensing adopted by the appraiser qualifications board.

4. Further define by rule with respect to state licensed or state certified appraisers appropriate and reasonable educational experience, appraisal experience and equivalent experience that meets the statutory requirement of this chapter.

5. Establish the examination specifications for state certified appraisers, provide or procure appropriate examination questions and answers, administer examinations and establish procedures for grading examinations consistent with and equivalent to the criteria adopted by the appraiser qualifications board.

6. Establish the examination specifications for state licensed appraisers, provide or procure appropriate examination questions and answers, administer examinations and establish procedures for grading examinations consistent with and equivalent to the criteria adopted by the appraiser qualifications board.

7. Establish administrative procedures for approving or disapproving applications for licensure and certification and issuing licenses and certificates.

8. Define by rule, with respect to state licensed and certified appraisers, the continuing education requirements for the renewal of licenses or certificates that satisfy the statutory requirements provided in this chapter.

9. Periodically review the requirements for the development and communication of appraisals provided in this chapter and adopt rules explaining and interpreting the requirements.

10. Define and explain by rule each stage and step associated with the administrative procedures for the disciplinary process pursuant to this chapter including:

(a) Prescribing minimum criteria for accepting a complaint against a licensed or certified appraiser.

(b) Defining the process and procedures used in investigating the allegations of the complaint.

(c) Defining the process and procedures used in hearings on the complaint, including a description of the rights of the board and any person who is alleged to have committed the violation.

(d) Establishing criteria to be used in determining the appropriate actions for violations.

11. Communicate information that is useful to the public and appraisers relating to actions for violations.

12. Censure, suspend and revoke licenses and certificates pursuant to the disciplinary proceedings provided for in section 32‑3631.

13. At least monthly transmit to the appraisal subcommittee a roster listing individuals who have received a state certificate or license in accordance with this chapter.

14. Report on the disposition of any matter referred by the appraisal subcommittee or any other federal agency or instrumentality or federally recognized entity reporting any action of a state licensed or state certified appraiser that is contrary to this chapter.

15. Make a determination and finding if there exists a scarcity of state certified or state licensed appraisers to perform appraisals in connection with federally related transactions in this state and issue resident temporary licenses and certificates pursuant to section 32‑3626.

16. Transmit the national registry fee collected pursuant to section 32‑3607 to the appraisal subcommittee.

17. Establish the fees in accordance with the limits established in section 32‑3607.

18. Perform such other functions and duties as may be necessary to carry out this chapter.

C. The board may employ an executive director and other personnel and designate their duties. The executive director shall serve at the pleasure of the board.

D. The executive director shall not change or amend actions of the board. END_STATUTE

Sec. 3. Section 32-3607, Arizona Revised Statutes, is amended to read:

START_STATUTE32-3607. Fees

A. The board shall prescribe by rule, charge and collect the following fees that are sufficient to fund the activities necessary to carry out this chapter. These include:

1. An application fee for licensure or certification of not more than four hundred dollars.

2. An application fee for a resident temporary license or certificate of not more than four hundred dollars.

3. An examination fee of not more than one hundred dollars.

4. A fee for renewal of a license, certificate or resident temporary license or certificate of not more than four hundred twenty‑five dollars.

5. A delinquent renewal fee in addition to the renewal fee of not more than twenty‑five dollars.

6. A two year national registry fee of not to exceed the actual cost of twice the current annual national registry fee.

7. A nonresident temporary licensure or certification fee of not more than one hundred fifty dollars.

8. A course approval fee of not more than five hundred dollars.

B. If the appraisal subcommittee raises the national registry fee during the second year of a biennial license or certificate, state licensed and state certified appraisers shall pay the additional national registry fee on demand by the board. Failure to pay the additional fee within thirty days of notice by the board subjects the license or certificate holder to a penalty of twice the amount owed but not to exceed twenty dollars. The board shall not renew a license or certificate until all outstanding obligations of the license or certificate holder are paid. END_STATUTE

Sec. 4. Exemption from rule making

The state board of appraisal is exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, until July 1, 2012 for the purpose of prescribing fees pursuant to section 32‑3607, Arizona Revised Statutes, as amended by this act, except that the board shall provide public notice and an opportunity for public comment on proposed rules at least thirty days before a rule is adopted or amended.

Sec. 5. Retention of members

Notwithstanding section 32‑3604, Arizona Revised Statutes, as amended by this act, all persons serving as members of the state board of appraisal on the effective date of this act may continue to serve until the expiration of their normal terms.� The governor shall make all subsequent appointments as prescribed by statute.

Sec. 6. Retroactivity

Section 32‑3607, Arizona Revised Statutes, as amended by this act, and section 4 of this act, relating to an exemption from rule making, apply retroactively to from and after June 30, 2011.