Bill Text: AZ SB1316 | 2013 | Fifty-first Legislature 1st Regular | Chaptered
Bill Title: State board of appraisal
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-05-02 - Governor Signed [SB1316 Detail]
Download: Arizona-2013-SB1316-Chaptered.html
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House Engrossed Senate Bill |
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State of Arizona Senate Fifty-first Legislature First Regular Session 2013
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CHAPTER 184
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SENATE BILL 1316 |
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AN ACT
amending sections 32-3601, 32-3603, 32-3604, 32-3605, 32‑3606, 32-3607 and 32-3610, Arizona Revised Statutes; changing the designation of title 32, chapter 36, article 2, Arizona Revised Statutes, to "Registration, Licensure and Certification"; amending sections 32-3611, 32-3612, 32-3613 and 32-3614, Arizona Revised Statutes; amending title 32, chapter 36, article 2, Arizona Revised Statutes, by adding sections 32-3614.01 and 32-3614.02; amending sections 32-3616 and 32-3617, Arizona Revised Statutes; repealing section 32‑3618, Arizona Revised Statutes; amending title 32, chapter 36, article 2, Arizona Revised Statutes, by adding a new section 32-3618; amending sections 32-3619, 32-3620, 32-3621, 32-3625, 32-3631, 32-3635, 32-3668 and 32-3669, Arizona Revised Statutes; making an appropriation; relating to the state board of appraisal.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 32-3601, Arizona Revised Statutes, is amended to read:
32-3601. Definitions
In this chapter, unless the context otherwise requires:
1. "Appraisal" or "real estate appraisal" means a statement that is independently and impartially prepared by an individual setting forth an opinion as to the market value of real property as of a specific date and supported by the presentation and analysis of relevant market information.
2. "Appraisal assignment" means an engagement for which a real estate appraiser is employed or retained to act, or would be perceived by third parties or the public in acting, as a disinterested third party in rendering an unbiased analysis, opinion or conclusion relating to the nature, quality, value or utility of specified interests in or aspects of identified real estate.
3. "Appraisal foundation" means the appraisal foundation incorporated as an Illinois not‑for‑profit corporation on November 30, 1987.
4. "Appraisal report" means any communication, written or oral, of an appraisal.
5. "Appraisal review" means the act of reviewing or the report that follows a review of an appraisal assignment or appraisal report in which a real estate appraiser forms an opinion as to the adequacy and appropriateness of the report being reviewed.
6. "Appraisal standards board" means the appraisal standards board appointed by the board of trustees of the appraisal foundation to develop, interpret and amend the uniform standards of professional appraisal practice.
7. "Appraisal subcommittee" means the subcommittee of the federal financial institutions examination council created pursuant to 12 United States Code section 3310 and chapter 34A, as amended.
8. "Appraiser qualifications board" means the appraiser qualifications board that is appointed by the board of trustees of the appraisal foundation to establish the minimum education, experience and examination requirements for real estate appraisers.
9. "Board" means the state board of appraisal.
10. "Complex one to four residential units" means property that is atypical for the marketplace. Atypical factors may include architectural style, age of improvements, size of improvements, size of lot, neighborhood land use, potential environmental hazard liability, leasehold interests, limited readily available comparable sales data or other unusual factors.
11. "Course approval" means the act of the board reviewing course materials to form an opinion as to the adequacy and appropriateness of the course for licensing pursuant to section 32‑3613, certification pursuant to section 32‑3614 and continuing education as prescribed in section 32‑3625 in accordance with the appraiser qualifications board and this chapter.
12. "Federal financial institutions examination council" means that agency of the federal government created pursuant to 12 United States Code chapters 34 and 34A, as amended.
13. "Federally related transaction" means any real estate related financial transaction that a federal financial institution's regulatory agency or the resolution trust corporation engages in, contracts for or regulates and that requires an appraisal.
14. "Property tax agent" means an individual who is designated by a person or is an employee of an entity designated as an agent pursuant to section 42‑16001, who acts on behalf of a person who owns, controls or possesses property valued by a county assessor and who receives a fee for the analysis of any matter relating to the review of the valuation of the person's property before the assessor. Property tax agent does not include a person who is admitted to practice law in this state, an employee of the person owning, controlling or possessing the property or an employee of an entity designated pursuant to section 42‑16001, if the employee is performing a secretarial, clerical or administrative support function.
15. "Real estate" means an identified parcel or tract of land, including improvements, if any.
16. "Real estate related financial transaction" means any transaction involving the sale of, lease of, purchase of, investment in or exchange of real property, including interests in property or the financing of property, the refinancing of real property or interests in real property and the use of real property or interests in property as security for a loan or investment including mortgage‑backed securities.
17. "Real property" means one or more defined interests, benefits and rights inherent in the ownership of real estate.
18. "Registered trainee appraiser" means a person who meets both of the following requirements:
(a) Is registered with the board and meets the appraiser qualifications board's qualifications for trainee appraisers to perform appraisal services only under the direct supervision of a certified appraiser who has met the minimum criteria to be a supervisory appraiser.
(b) Accepts assignments only from the registered trainee appraiser's supervisory appraiser.
18. 19. "Review appraiser" means a person who engages in the activity of reviewing and evaluating the appraisal work of others from the perspective of an appraiser, generally for compensation as a separate skill. This includes the function of reviewing an appraisal report or a file memorandum setting forth the results of the review process.
19. 20. "Standards of professional appraisal practice" means the uniform standards of professional appraisal practice adopted by the board.
20. 21. "State licensed or state certified appraiser" means a person who develops and communicates appraisals and who holds a current, valid license or certificate issued to him under the provisions of this chapter.
22. "Supervisory appraiser" means a state certified appraiser who has a supervisory appraiser designation and who:
(a) Has been in good standing for the last three years in the jurisdiction in which the registered trainee appraiser practices.
(b) Has not been disciplined in a manner that affects the supervisory appraiser's eligibility to engage in appraisal practice in any jurisdiction in the last three years.
(c) Directly supervises registered trainee appraisers by doing the following:
(i) Accepting responsibility for an appraisal by signing and certifying that the appraisal complies with the uniform standards of professional appraisal practice.
(ii) Reviewing and signing all registered trainee appraiser reports.
(iii) Personally inspecting each appraised property with the registered trainee appraiser.
21. 23. "Value" means the monetary relationship between properties and those who buy, sell or use those properties.
Sec. 2. Section 32-3603, Arizona Revised Statutes, is amended to read:
32-3603. Registration, license or certificate use; exception
A. All real estate appraisals and appraisal reviews performed on real property in this state shall be performed only by individuals who are registered, licensed or certified in accordance with the requirements of this chapter. No person, other than a registered trainee appraiser or a state licensed or state certified appraiser, may assume or use that title or any title, designation or abbreviation likely to create the impression of registration as a trainee appraiser or licensure or certification as an appraiser by this state.
B. No person other than a state licensed or state certified appraiser may receive a fee for a real estate appraisal or an appraisal review of real property in this state. This subsection does not prohibit a supervisory appraiser from remitting compensation to a registered trainee appraiser during the course of training.
Sec. 3. Section 32-3604, Arizona Revised Statutes, is amended to read:
32-3604. State board of appraisal
A. A 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 members who are state certified or state licensed appraisers under this chapter, one of whom is a state certified general appraiser, one of whom is a state certified residential appraiser, one of whom is a state licensed appraiser and one two of whom is any are either state certified or state licensed appraiser appraisers. Membership in a professional appraisal organization or association is not a prerequisite to service on the board.
2. Three public members who are 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.
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 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.
Sec. 4. Section 32-3605, Arizona Revised Statutes, is amended to read:
32-3605. 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 and registration, adopt criteria that at a minimum are equal to the minimum criteria for licensing and registration 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 Adopt the national examination specifications as approved by the appraiser qualifications board 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 Adopt the national examination specifications as approved by the appraiser qualifications board 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 registration, licensure and certification and issuing licenses and certificates, including registration 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 registered trainee appraiser or 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. Subject to title 41, chapter 4, article 4, 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.
E. The board may accept and spend federal monies and grants, gifts, contributions and devises from any public or private source to assist in carrying out the purposes of this chapter. These monies do not revert to the state general fund at the end of the fiscal year.
Sec. 5. Section 32-3606, Arizona Revised Statutes, is amended to read:
32-3606. Executive director; duties
The executive director shall:
1. Receive applications for state licenses and certificates.
2. Establish the administrative procedures for processing applications for state licenses and certificates.
3. Maintain a registry of the names and addresses of people who are registered, licensed or certified under this chapter.
4. Retain records and all application materials submitted to the board.
5. Assist the board in such other matters as the board may require.
6. Publish on the board's website a current list of supervisory appraisers and registered trainee appraisers.
Sec. 6. Section 32-3607, Arizona Revised Statutes, is amended to read:
32-3607. Fees; use of credit cards
A. The board shall charge and collect 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 in an amount to be determined by the board.
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.
9. An application fee to be a registered trainee appraiser in an amount to be determined by the board.
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.
C. Pursuant to section 35‑142, subsection I, the board may accept a credit card or debit card for the payment of fees established by this section. The board may impose a convenience fee for payment made pursuant to this subsection in an amount to be determined by the board.
Sec. 7. Section 32-3610, Arizona Revised Statutes, is amended to read:
32-3610. Uniform standards of professional appraisal practice; state standards; exception
The uniform standards of professional appraisal practice as published by the appraisal standards board are the standards for the appraisal practice in this state unless the board objects.
Sec. 8. Heading change
The article heading of title 32, chapter 36, article 2, Arizona Revised Statutes, is changed from "LICENSING AND CERTIFICATION" to "REGISTRATION, LICENSURE AND CERTIFICATION".
Sec. 9. Section 32-3611, Arizona Revised Statutes, is amended to read:
32-3611. Registration licensure and certification process
A. Applications for original registration, licensure or certification, renewals and examinations shall be made in writing to the executive director on forms approved by the board.
B. Appropriate fees, as fixed by the board pursuant to section 32‑3607, shall accompany all applications for original registration, licensure or certification, renewal and examination.
C. At the time of filing an application for registration, licensure or certification, each applicant shall sign a pledge to comply with the standards set forth in this chapter and shall state that the applicant understands the types of misconduct for which disciplinary proceedings may be initiated against a registered trainee appraiser or a state licensed or state certified appraiser, as set forth in this chapter.
D. Except as otherwise provided in this chapter, the executive director shall require such other proof and request such documents, through the application or otherwise, as the board deems necessary for the interests of the public and to verify the honesty, truthfulness, reputation and competency of the applicant and shall require that the applicant for registration, licensure or certification:
1. Be at least eighteen years of age and a citizen of the United States or a qualified alien as defined in 8 United States Code section 1641.
2. Shall Not have had a license or certificate denied pursuant to this chapter within one year immediately preceding the application.
3. Shall Not have had a license or certificate revoked pursuant to this chapter within two years immediately preceding the application.
4. State whether or not the applicant has ever been convicted in a court of competent jurisdiction in this or any other state of a felony or of forgery, theft, extortion or conspiracy to defraud or any other crime involving dishonesty or moral turpitude.
E. Applications for registration, licensure or certification by persons who are charged or under indictment for fraud involving appraisal of real property may be denied pending final disposition of the charge or indictment. Upon On final disposition, the board shall review the proceedings and act upon on the application.
Sec. 10. Section 32-3612, Arizona Revised Statutes, is amended to read:
32-3612. Classifications of licensure and certification
A. The following classifications of state licensed real estate appraisers and state certified real estate appraisers are established:
1. State certified general real estate appraisers consisting of those persons meeting the requirements for certification relating to the appraisal or appraisal review of all types of real property.
2. State certified residential real estate appraisers consisting of those persons meeting the requirements for certification relating to the appraisal or appraisal review of one to four residential units without regard to value or complexity. The classification includes the appraisal for federally and nonfederally related transactions of vacant or unimproved land that is used for one to four family purposes or for which the highest and best use is for one to four family purposes. This classification does not include the appraisal of a subdivision for which a development analysis or appraisal is necessary.
3. State licensed real estate appraisers consisting of those persons meeting the requirements for licensing relating to appraisal or appraisal review of noncomplex one to four residential units having a value of less than one million dollars and complex one to four residential units having a value of less than two hundred fifty thousand dollars. The classification includes the appraisal for nonfederally related transactions of vacant or unimproved land that is used for one to four family purposes or for which the highest and best use is for one to four family purposes. This classification does not include the appraisal of subdivisions for which a development analysis or appraisal is necessary.
B. Notwithstanding section 32‑3602:
1. All federally related transactions involving property with a value equal to or greater than one million dollars and complex one to four family residential real property shall be appraised by a state certified appraiser.
2. All federally related transactions not requiring a state certified appraiser may be appraised by either a state certified or state licensed appraiser.
C. All nonfederally related transactions may be appraised either by a state certified or a state licensed appraiser.
4. Registered trainee appraisers who may not appraise any property type without being subject to the direct control and supervision of the registered trainee appraiser's designated supervisory appraiser.
5. Supervisory appraisers.
Sec. 11. Section 32-3613, Arizona Revised Statutes, is amended to read:
32-3613. Application and qualification requirements for issuance of license
A. An application for licensing and examination shall be made on forms as prescribed by the board and accompanied by the required fees.
B. Those persons filing for licensing shall meet the minimum criteria for licensing established by the board under section 32‑3605, subsection B, paragraph 3.
C. No person may be a state licensed appraiser unless the person has achieved a passing grade on a suitable the national examination administered by the board approved by the appraiser qualifications board.
Sec. 12. Section 32-3614, Arizona Revised Statutes, is amended to read:
32-3614. Application and qualification requirements for certification
A. An application for certification and examination shall be made on forms prescribed by the board and accompanied by the required fees.
B. Those persons filing for certification shall meet the minimum criteria for certification established by the board under section 32‑3605, subsection B, paragraph 2 and section 32‑3615.
C. No person may be a state certified real estate appraiser unless the person has achieved a passing grade on a suitable the national examination administered approved by the appraiser qualifications board.
D. Persons presenting evidence showing successful completion of the requirements of this section shall be recognized as having met the qualifications as a state certified real estate appraiser.
Sec. 13. Title 32, chapter 36, article 2, Arizona Revised Statutes, is amended by adding sections 32-3614.01 and 32-3614.02, to read:
32-3614.01. Application for registered trainee appraiser certificates
A. An Application for a registered trainee appraiser certificate shall be made on a form prescribed by the board and accompanied by the fees prescribed by section 32-3607. An applicant must complete education requirements as outlined by the Appraiser Qualifications Board. The applicant must submit proof that the applicant has successfully passed the required courses that are specifically oriented to the requirements and responsibilities of Supervisory Appraisers and Trainee Appraisers and that comply with the specifications established by the Appraiser Qualifications Board.
B. A criminal background check may be conducted pursuant to section 41‑1750. The state board of appraisal may charge the cost of a criminal background check to the applicant.
32-3614.02. Application for supervisory appraiser designation
A. An Application for a Supervisory Appraiser designation shall be made on a form prescribed by the board. The applicant must submit Proof of successful completion of a course that is specifically oriented to the requirements and responsibilities of Supervisory Appraisers and Trainee Appraisers and that complies with the specifications established by the Appraiser Qualifications Board.
B. A criminal background check may be conducted pursuant to section 41‑1750. The state board of appraisal may charge the cost of a criminal background check to the applicant.
Sec. 14. Section 32-3616, Arizona Revised Statutes, is amended to read:
32-3616. Terms of license, certificate and registration
A. Except as provided in subsection B of this section, a license or certificate issued under this chapter is valid for two years from the date of issuance. The expiration date of the license or certificate shall appear on the license or certificate.
B. A registration certificate issued for registered trainee appraisers shall be valid for three years from the date of issuance. The expiration date of the registration shall appear on the registration certificate.
Sec. 15. Section 32-3617, Arizona Revised Statutes, is amended to read:
32-3617. Nonresident temporary licensure or certification
A. Every applicant for nonresident temporary licensure or certification under this chapter who is not a resident of this state shall submit, with the application for nonresident temporary licensure or certification, an irrevocable consent that service of process on the applicant may be made by delivery of the process to the secretary of state if, in an action against the applicant in a court of this state arising out of the applicant's activities as a nonresident temporary state licensed or state certified appraiser, the plaintiff cannot effect, in the exercise of due diligence, personal service on the applicant.
B. A nonresident of this state who has complied with subsection A of this section may obtain a nonresident temporary license or certificate as a nonresident temporary state licensed or state certified appraiser by conforming to all of the requirements of this chapter relating to state licensed or state certified appraisers.
C. A nonresident of this state who is licensed or certified in another state is entitled to nonresident temporary licensure or certification from the board, which shall be valid until the completion of each appraisal assignment but not for a period of more than one year from the date of issuance, if:
1. The properties to be appraised are federally related.
2. 1. The nonresident appraiser's business in this state is of a temporary nature.
3. 2. The nonresident appraiser applies with the board on forms prepared by the board.
4. 3. The nonresident appraiser pays the nonresident temporary licensure or certification fee required by the board.
D. The board shall adopt rules in furtherance of this section to avoid the abuse of the temporary practice rights in this state. END_STATUTE
Sec. 16. Repeal
Section 32-3618, Arizona Revised Statutes, is repealed.
Sec. 17. Title 32, chapter 36, article 2, Arizona Revised Statutes, is amended by adding a new section 32-3618, to read:
32-3618. Reciprocity
Reciprocity shall be granted to an appraiser if all of the following conditions apply:
1. The appraiser holds a credential from a state that is in compliance with 12 United States Code sections 3310, 3332, 3333, 3335, 3338, 3339, 3341, 3342, 3345, 3346, 3347, 3348, 3350, 3351, 3353, 3354 and 3355.
2. The credential requirements for the state described in paragraph 1 of this section meet or exceed those of this state.
3. The appraiser has completed an application for licensure or certification on a form as prescribed by the board and submitted the fees prescribed pursuant to section 32-3607.
Sec. 18. Section 32-3619, Arizona Revised Statutes, is amended to read:
32-3619. Renewal of license or certificate; fees
A. Except as otherwise provided in this section and in section 32‑4301, to renew a registration certificate as a registered trainee appraiser or a license or certificate as a state licensed or state certified appraiser, the holder of a current, valid license or certificate shall make an application and pay the prescribed fee to the board not earlier than ninety days nor later than thirty days before the expiration date of the license or certificate then held. With the application for renewal, the registered trainee appraiser or the state licensed or state certified appraiser shall present evidence in the form prescribed by the board of having completed the continuing education requirements for renewal specified in section 32‑3625. The renewal application shall be mailed to the last known address of record not more than ninety days nor less than sixty days before the renewal date.
B. The board may accept a renewal application after the expiration date and within ninety days of the date of expiration but shall assess a delinquent renewal fee in addition to the renewal fee.
C. An appraiser or registered trainee appraiser who fails to seek renewal within the time period specified in subsection A or B of this section must reapply for licensure or certification and meet all of the requirements of this chapter.
D. An appraiser or registered trainee appraiser shall not engage in, advertise or purport to engage in real estate appraisal activity in this state after a license or certificate has expired and before the renewal of the expired license or certificate.
E. Notwithstanding section 41‑1092.11, a license or certificate expires on its expiration date. END_STATUTE
Sec. 19. Section 32-3620, Arizona Revised Statutes, is amended to read:
32-3620. Basis for denial of a license or certificate
A. The board may deny the issuance of a license or certificate as a registered trainee appraiser, a supervisory appraiser or a state licensed or state certified appraiser to an applicant who has been convicted of a felony or on any of the grounds prescribed in this chapter.
B. To assist in determining whether grounds exist to deny the issuance of a license or certificate to an applicant, the board may require a criminal background check including the fingerprinting of every applicant for an original license and certificate. The criminal background check may be conducted pursuant to section 41‑1750 or in any other manner deemed suitable by the board. The board may charge the cost of each criminal background check to the applicant.
C. A person who is denied the issuance of a license or certificate may request, and if requested shall receive, a hearing in accordance with title 41, chapter 6, article 10.
Sec. 20. Section 32-3621, Arizona Revised Statutes, is amended to read:
32-3621. Addresses; telephone numbers; notification of change
A. Each registered trainee appraiser or state licensed or state certified appraiser shall advise the board of the address of the appraiser's person's principal place of business and all other addresses at which the appraiser person is currently engaged in the business of preparing real property appraisal reports.
B. Every registered trainee appraiser or state licensed or state certified appraiser shall notify the board of the appraiser's person's current residence address. Residence addresses on file with the board are exempt from disclosure as public records.
C. Every registered trainee appraiser or state licensed or state certified appraiser shall provide the person's e‑mail address if one exists and a daytime telephone number to the board.
D. If a registered trainee appraiser or a state licensed or state certified appraiser changes a the person's place of business or residence, e‑mail address or the appraiser's daytime telephone number, the appraiser person shall give the board written notification of the change within ten days after the change to the board.
Sec. 21. Section 32-3625, Arizona Revised Statutes, is amended to read:
32-3625. Continuing education
A. As a prerequisite to renewal of a license or certificate, a state registered trainee appraiser or a licensed or state certified appraiser shall present evidence satisfactory to the board of having met the continuing education requirements of either subsection B or C of this section.
B. The basic continuing education requirement for renewal of a license or certificate is the completion by the applicant, during the immediately preceding term of the license or certificate, of courses or seminars that are approved by the board.
C. An applicant for reregistering, relicensing or recertification may satisfy all or part of the continuing education requirements by presenting evidence of the following, which shall be approved by the board:
1. Completion of an education program of study determined by the board to be equivalent, for continuing education purposes, to courses approved by the board pursuant to subsection B of this section.
2. Participation other than as a student in educational processes and programs that are approved by the board and that relate to appropriate appraisal theory, practices or techniques, including teaching, program development and preparation of textbooks, monographs, articles and other instructional materials, not to exceed fifty per cent of an applicant's continuing education requirements and not for the same course in consecutive renewal periods.
D. The board shall adopt rules to assure that persons renewing their licenses or certificates as state licensed or state certified appraisers follow practices and techniques that provide a high degree of service and protection to those members of the public with whom they deal in the professional relationship under the authority of the license or certificate. The rules shall include the following:
1. Policies and procedures for obtaining board approval of courses and instruction pursuant to subsection B of this section.
2. Standards, policies and procedures to be applied by the board in evaluating an applicant's claims of equivalency in accordance with subsection C of this section.
3. Standards, monitoring methods and systems for recording attendance to be employed by course sponsors as a prerequisite to board approval of courses for credit.
E. In adopting rules pursuant to subsection D, paragraph 1 of this section, the board shall give consideration to courses of instruction, seminars and other appropriate appraisal educational courses or programs previously or hereafter developed by or under the auspices of professional appraisal organizations and utilized by those associations for purposes of designation, or indicating compliance with the continuing education requirements of such organizations. No person who offers these courses may discriminate in the opportunity to participate in these courses on the basis of membership or nonmembership in an appraisal organization.
F. No amendment or repeal of a rule adopted by the board pursuant to this section may operate to deprive a state registered trainee appraiser or a state licensed or state certified appraiser of credit toward renewal of a license or certificate for any course of instruction either completed by the applicant or enrolled in by the applicant before the amendment or repeal of the rule that would have qualified for continuing education credit under the rule as it existed before the repeal or amendment.
G. A license or certificate as a state registered trainee appraiser or a state licensed or state certified appraiser that has been suspended as a result of disciplinary action by the board shall not be reinstated unless the applicant presents evidence of completion of the continuing education required by this chapter.
H. A license or certificate that has been revoked by the board shall not be reinstated unless the applicant successfully completes the appropriate requirements of the appraisal qualifications board, including education and passage of the current national examination.
Sec. 22. Section 32-3631, Arizona Revised Statutes, is amended to read:
32-3631. Disciplinary proceedings
A. The rights of an applicant or holder under a license or certificate as a registered trainee appraiser or a state licensed or state certified appraiser may be revoked or suspended or the holder of the license or certificate may otherwise be disciplined in accordance with this chapter on any of the grounds set forth in this section. The board may investigate the actions of a registered trainee appraiser or a state licensed or state certified appraiser and may revoke or suspend the rights of a license or certificate holder or otherwise discipline a registered trainee appraiser or a state licensed or state certified appraiser for any of the following acts or omissions:
1. Procuring or attempting to procure a license or certificate pursuant to this chapter by knowingly making a false statement, submitting false information, refusing to provide complete information in response to a question in an application for a license or certificate or committing any form of fraud or misrepresentation.
2. Failing to meet the minimum qualifications established by this chapter.
3. Paying or offering to pay money or other considerations other than as provided by this chapter to any member or employee of the board to procure a license or certificate under this chapter.
4. A conviction, including a conviction based on a plea of guilty, of a crime that is substantially related to the qualifications, functions and duties of a person developing appraisals and communicating appraisals to others, or a conviction for any felony or any crime involving moral turpitude.
5. An act or omission involving dishonesty, fraud or misrepresentation with the intent to substantially benefit the license or certificate holder or another person or with the intent to substantially injure another person.
6. Violation of any of the standards of the development or communication of appraisals as provided in this chapter.
7. Negligence or incompetence by the state licensed or state certified appraiser in developing an appraisal, in preparing an appraisal report or in communicating an appraisal.
8. Wilfully disregarding or violating any of the provisions of this chapter or the rules of the board for the administration and enforcement of this chapter.
9. Accepting an appraisal assignment if the employment itself is contingent on the appraiser reporting a predetermined estimate, analysis or opinion or if the fee to be paid is contingent on the opinion, conclusion or value reached or on the consequences resulting from the appraisal assignment.
10. Violating the confidential nature of any records to which the registered trainee appraiser or the state licensed or state certified appraiser gains access through employment or engagement as a registered trainee appraiser or an appraiser.
11. Entry of a final civil judgment against the person on grounds of fraud, misrepresentation or deceit in the making of any appraisal.
B. In a disciplinary proceeding based on a civil judgment, the a registered trainee appraiser or state licensed or state certified appraiser shall be afforded an opportunity to present matters in mitigation and extenuation.
C. The board may issue subpoenas for the attendance of witnesses and the production of books, records, documents and other evidence necessary and relevant to an investigation or hearing.
D. The lapsing or suspension of a license or certificate by operation of law or by order or decision of the board or a court of law, or the voluntary surrender of a license or certificate by a license or certificate holder, shall not deprive the board of jurisdiction to do any of the following within twenty-four months after the expiration of the license or certificate pursuant to section 32‑3616:
1. Proceed with any investigation of or action or disciplinary proceeding against the license or certificate holder.
2. Render a decision suspending or revoking the license or certificate or denying the renewal or right of renewal of the license or certificate.
Sec. 23. Section 32-3635, Arizona Revised Statutes, is amended to read:
32-3635. Standards of practice
A. A registered trainee appraiser or a state licensed or state certified appraiser shall comply with the standards of professional appraisal practice adopted by the board.
B. An appraisal or appraisal report shall not be issued by a real estate appraiser unless it meets the appraisal standards established by this chapter and rules adopted pursuant to this chapter.
C. An appraisal review report shall clearly indicate the nature of the review process undertaken and shall separate the review function from any other functions.
D. All federally related appraisals shall be in writing.
Sec. 24. Section 32-3668, Arizona Revised Statutes, is amended to read:
32-3668. Owner requirements
A. An appraisal management company applying for registration may not be owned by a person or have any principal of the company who has had any financial, real estate or mortgage lending industry license or certificate refused, denied, canceled, revoked or voluntarily surrendered in this state or in any other state. This requirement may be waived by appeal and at the discretion of the board.
B. Each person that owns, is an officer of or has a financial interest in an appraisal management company in this state shall:
1. Be of good moral character.
2. Submit to a criminal background investigation as determined by the board check conducted pursuant to section 41-1750. The board may charge the cost of a criminal background check to the applicant.
3. Certify to the board that the person has never had any financial, real estate or mortgage lending industry license or certificate refused, denied, canceled, revoked or voluntarily surrendered in this state or in any other state. This requirement may be waived by appeal and at the discretion of the board.
Sec. 25. Section 32-3669, Arizona Revised Statutes, is amended to read:
32-3669. Controlling person
A. Each appraisal management company applying to the board for registration in this state shall designate one controlling person that will be the main contact for all communication between the board and the appraisal management company.
B. To serve as a controlling person of an appraisal management company, a person shall:
1. Certify to the board that the person has never had any financial, real estate or mortgage lending industry license or certificate issued by this state, or any other state, refused, denied, canceled, revoked or voluntarily surrendered. This requirement may be waived by appeal and at the discretion of the board.
2. Be of good moral character.
3. Submit to a criminal background investigation as determined by the board check conducted pursuant to section 41‑1750. The board may charge the cost of a criminal background check to the applicant.
Sec. 26. Appropriation; state board of appraisal; registered trainee appraisers and supervisory appraisers
The sum of $42,880 is appropriated from the board of appraisal fund established by section 32-3608, Arizona Revised Statutes, in fiscal year 2013-2014 to the state board of appraisal for one full-time employee to implement the regulation of registered trainee appraisers and supervisory appraisers pursuant to title 32, chapter 36, Arizona Revised Statutes, as amended by this act.
Sec. 27. Applicability
This act does not apply to a person who, on or before June 1, 2013, is training under a supervisory appraiser pursuant to rules prescribed by the state board of appraisal and who becomes a state licensed or state certified appraiser, as defined in section 32-3601, Arizona Revised Statutes, as amended by this act, before January 1, 2015.
Sec. 28. Exemption from rule making
For the purposes of this act, the state board of appraisal is exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for two years after the effective date of this act.
APPROVED BY THE GOVERNOR MAY 2, 2013.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 2, 2013.
