Bill Text: FL H0303 | 2010 | Regular Session | Comm Sub

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Bill Title: Real Estate Appraisers/Appraisal Management Co. [CPSC]

Spectrum: Slight Partisan Bill (Republican 10-4)

Status: (Passed) 2010-05-14 - Approved by Governor; Chapter No. 2010-84 [H0303 Detail]

Download: Florida-2010-H0303-Comm_Sub.html

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CS/CS/CS/HB 303

1	A bill to be entitled
2	An act relating to regulation of real estate appraisers
3	and appraisal management companies; amending s. 475.611,
4	F.S.; providing definitions; amending s. 475.613, F.S.;
5	revising the membership of the Florida Real Estate
6	Appraisal Board; amending s. 475.614, F.S.; requiring the
7	board to adopt certain rules; amending s. 475.6147, F.S.;
8	requiring application, registration, and renewal fees for
9	appraisal management companies; creating s. 475.6235,
10	F.S.; requiring appraisal management companies to register
11	with the Department of Business and Professional
12	Regulation; specifying application requirements and
13	procedures; requiring the fingerprinting and criminal
14	history records checks of, and providing qualifications
15	for, certain persons who control appraisal management
16	companies; requiring nonresident appraisal management
17	companies to consent to commencement of actions in this
18	state; requiring the department to adopt rules relating to
19	the renewal of registrations; amending s. 475.624, F.S.;
20	conforming provisions to changes made by the act; creating
21	s. 475.6245, F.S.; providing for the discipline of
22	appraisal management companies by the board; amending s.
23	475.626, F.S.; providing penalties; conforming provisions
24	to changes made by the act; amending s. 475.629, F.S.;
25	revising requirements for the retention of appraisal
26	records; requiring appraisal management companies to
27	follow such requirements; providing an effective date.
28
29	Be It Enacted by the Legislature of the State of Florida:
30
31	Section 1. Subsection (1) of section 475.611, Florida
32	Statutes, is amended to read:
33	475.611 Definitions.-
34	(1) As used in this part, the term:
35	(a) "Appraisal" or "appraisal services" means the services
36	provided by certified or licensed appraisers or registered
37	trainee appraisers, and includes:
38	1. "Appraisal assignment" denotes an engagement for which
39	a person is employed or retained to act, or could be perceived
40	by third parties or the public as acting, as an agent or a
41	disinterested third party in rendering an unbiased analysis,
42	opinion, review, or conclusion relating to the nature, quality,
43	value, or utility of specified interests in, or aspects of,
44	identified real property.
45	2. "Analysis assignment" denotes appraisal services that
46	relate to the employer's or client's individual needs or
47	investment objectives and includes specialized marketing,
48	financing, and feasibility studies as well as analyses,
49	opinions, and conclusions given in connection with activities
50	such as real estate brokerage, mortgage banking, real estate
51	counseling, or real estate consulting.
52	3. "Appraisal review assignment" denotes an engagement for
53	which an appraiser is employed or retained to develop and
54	communicate an opinion about the quality of another appraiser's
55	appraisal, appraisal report, or work. An appraisal review may or
56	may not contain the reviewing appraiser's opinion of value.
57	(b) "Appraisal Foundation" or "foundation" means the
58	Appraisal Foundation established on November 20, 1987, as a not-
59	for-profit corporation under the laws of Illinois.
60	(c) "Appraisal management company" means a person who
61	performs appraisal management services.
62	(d) "Appraisal management services" means the coordination
63	or management of appraisal services for compensation by:
64	1. Employing, contracting with, or otherwise retaining one
65	or more appraisers to perform appraisal services for a client;
66	or
67	2. Acting as a broker or intermediary between a client and
68	one or more appraisers to facilitate the client's employing,
69	contracting with, or otherwise retaining the appraisers.
70	(e)(c) "Appraisal report" means any communication, written
71	or oral, of an appraisal, appraisal review, appraisal consulting
72	service, analysis, opinion, or conclusion relating to the
73	nature, quality, value, or utility of a specified interest in,
74	or aspect of, identified real property, and includes any report
75	communicating an appraisal analysis, opinion, or conclusion of
76	value, regardless of title. However, in order to be recognized
77	in a federally related transaction, an appraisal report must be
78	written.
79	(f)(d) "Appraisal review" means the act or process of
80	developing and communicating an opinion about the quality of
81	another appraiser's appraisal, appraisal report, or work.
82	(g)(e) "Appraisal subcommittee" means the designees of the
83	heads of the federal financial institutions regulatory agencies
84	established by the Federal Financial Institutions Examination
85	Council Act of 1978 (12 U.S.C. ss. 3301 et seq.), as amended.
86	(h)(f) "Appraiser" means any person who is a registered
87	trainee real estate appraiser, a licensed real estate appraiser,
88	or a certified real estate appraiser. An appraiser renders a
89	professional service and is a professional within the meaning of
90	s. 95.11(4)(a).
91	(i) "Appraiser panel" means a group of appraisers selected
92	by an appraisal management company to perform appraisal services
93	for clients on behalf of the company.
94	(j)(g) "Board" means the Florida Real Estate Appraisal
95	Board established under this section.
96	(k)(h) "Certified general appraiser" means a person who is
97	certified by the department as qualified to issue appraisal
98	reports for any type of real property.
99	(l)(i) "Certified residential appraiser" means a person
100	who is certified by the department as qualified to issue
101	appraisal reports for residential real property of one to four
102	residential units, without regard to transaction value or
103	complexity, or real property as may be authorized by federal
104	regulation.
105	(m) "Client" means a person who contracts with an
106	appraiser or appraisal management company for the performance of
107	appraisal services.
108	(n)(j) "Department" means the Department of Business and
109	Professional Regulation.
110	(o)(k) "Direct supervision" means the degree of
111	supervision required of a supervisory appraiser overseeing the
112	work of a registered trainee appraiser by which the supervisory
113	appraiser has control over and detailed professional knowledge
114	of the work being done. Direct supervision is achieved when a
115	registered trainee appraiser has regular direction, guidance,
116	and support from a supervisory appraiser who has the
117	competencies as determined by rule of the board.
118	(p)(l) "Federally related transaction" means any real
119	estate-related financial transaction which a federal financial
120	institutions regulatory agency or the Resolution Trust
121	Corporation engages in, contracts for, or regulates, and which
122	requires the services of a state-licensed or state-certified
123	appraiser.
124	(q)(m) "Licensed appraiser" means a person who is licensed
125	by the department as qualified to issue appraisal reports for
126	residential real property of one to four residential units or on
127	such real estate or real property as may be authorized by
128	federal regulation. After July 1, 2003, the department shall not
129	issue licenses for the category of licensed appraiser.
130	(r)(n) "Registered trainee appraiser" means a person who
131	is registered with the department as qualified to perform
132	appraisal services only under the direct supervision of a
133	licensed or certified appraiser. A registered trainee appraiser
134	may accept appraisal assignments only from her or his primary or
135	secondary supervisory appraiser.
136	(s) "Signature" means personalized evidence indicating
137	authentication of work performed by an appraiser and the
138	acceptance of responsibility for the content of an appraisal,
139	appraisal review, or appraisal consulting service or conclusions
140	in an appraisal report.
141	(t)(o) "Supervisory appraiser" means a licensed appraiser,
142	a certified residential appraiser, or a certified general
143	appraiser responsible for the direct supervision of one or more
144	registered trainee appraisers and fully responsible for
145	appraisals and appraisal reports prepared by those registered
146	trainee appraisers. The board, by rule, shall determine the
147	responsibilities of a supervisory appraiser, the geographic
148	proximity required, the minimum qualifications and standards
149	required of a licensed or certified appraiser before she or he
150	may act in the capacity of a supervisory appraiser, and the
151	maximum number of registered trainee appraisers to be supervised
152	by an individual supervisory appraiser.
153	(u)(p) "Training" means the process of providing for and
154	making available to a registered trainee appraiser, under direct
155	supervision, a planned, prepared, and coordinated program, or
156	routine of instruction and education, in appraisal professional
157	and technical appraisal skills as determined by rule of the
158	board.
159	(v)(q) "Uniform Standards of Professional Appraisal
160	Practice" means the most recent standards approved and adopted
161	by the Appraisal Standards Board of the Appraisal Foundation.
162	(w)(r) "Valuation services" means services pertaining to
163	aspects of property value and includes such services performed
164	by certified appraisers, registered trainee appraisers, and
165	others.
166	(x)(s) "Work file" means the documentation necessary to
167	support an appraiser's analysis, opinions, and conclusions.
168	Section 2. Subsection (1) of section 475.613, Florida
169	Statutes, is amended to read:
170	475.613 Florida Real Estate Appraisal Board.-
171	(1) There is created the Florida Real Estate Appraisal
172	Board, which shall consist of nine seven members appointed by
173	the Governor, subject to confirmation by the Senate. Four
174	members of the board must be real estate appraisers who have
175	been engaged in the general practice of appraising real property
176	in this state for at least 5 years immediately preceding
177	appointment. In appointing real estate appraisers to the board,
178	while not excluding other appraisers, the Governor shall give
179	preference to real estate appraisers who are not primarily
180	engaged in real estate brokerage or mortgage lending activities.
181	Two members of the board must represent the appraisal management
182	industry. One member of the board must represent organizations
183	that use appraisals for the purpose of eminent domain
184	proceedings, financial transactions, or mortgage insurance. Two
185	members of the board shall be representatives of the general
186	public and shall not be connected in any way with the practice
187	of real estate appraisal, real estate brokerage, or mortgage
188	lending. The appraiser members shall be as representative of the
189	entire industry as possible, and membership in a nationally
190	recognized or state-recognized appraisal organization shall not
191	be a prerequisite to membership on the board. To the extent
192	possible, no more than two members of the board shall be
193	primarily affiliated with any one particular national or state
194	appraisal association. Two of the members must be licensed or
195	certified residential real estate appraisers and two of the
196	members must be certified general real estate appraisers at the
197	time of their appointment.
198	(a) Members of the board shall be appointed for 4-year
199	terms. Any vacancy occurring in the membership of the board
200	shall be filled by appointment by the Governor for the unexpired
201	term. Upon expiration of her or his term, a member of the board
202	shall continue to hold office until the appointment and
203	qualification of the member's successor. A member may not be
204	appointed for more than two consecutive terms. The Governor may
205	remove any member for cause.
206	(b) The headquarters for the board shall be in Orlando.
207	(c) The board shall meet at least once each calendar
208	quarter to conduct its business.
209	(d) The members of the board shall elect a chairperson at
210	the first meeting each year.
211	(e) Each member of the board is entitled to per diem and
212	travel expenses as set by legislative appropriation for each day
213	that the member engages in the business of the board.
214	Section 3. Section 475.614, Florida Statutes, is amended
215	to read:
216	475.614 Power of board to adopt rules and decide questions
217	of practice; requirements for protection of appraiser's
218	signature.-
219	(1) The board has authority to adopt rules pursuant to ss.
220	120.536(1) and 120.54 to implement provisions of law conferring
221	duties upon it. The board may decide questions of practice
222	arising in the proceedings before it, having regard to this
223	section and the rules then in force.
224	(2) The board shall adopt rules specifying the means by
225	which an appraiser's signature may be affixed to an appraisal
226	report or other work performed by the appraiser. The rules shall
227	include requirements for protecting the security of an
228	appraiser's signature and prohibiting practices that may
229	discredit the use of an appraiser's signature to authenticate
230	the work performed by the appraiser.
231	Section 4. Subsection (1) of section 475.6147, Florida
232	Statutes, is amended to read:
233	475.6147 Fees.-
234	(1)(a) The board by rule may establish fees to be paid for
235	application, licensing and renewal, certification and
236	recertification, registration and reregistration, reinstatement,
237	and recordmaking and recordkeeping.
238	(b) The fee for initial application of an appraiser may
239	not exceed $150, and the combined cost of the application and
240	examination may not exceed $300. The initial certification,
241	registration, or license fee and the certification,
242	registration, or license renewal fee may not exceed $150 for
243	each year of the duration of the certification, registration, or
244	license.
245	(c) The fee for initial application of an appraisal
246	management company may not exceed $150. The initial registration
247	and registration renewal fee may not exceed $150 for each year
248	of the duration of the registration.
249	(d) The board may also establish by rule a late renewal
250	penalty.
251	(e) The board shall establish fees which are adequate to
252	ensure its continued operation. Fees shall be based on estimates
253	made by the department of the revenue required to implement this
254	part and other provisions of law relating to the regulation of
255	real estate appraisers.
256	Section 5. Section 475.6235, Florida Statutes, is created
257	to read:
258	475.6235 Registration of appraisal management companies
259	required.-
260	(1) A person may not engage in appraisal management
261	services for compensation in this state, advertise or represent
262	herself or himself as an appraisal management company, or use
263	the titles "appraisal management company," "appraiser
264	cooperative," "appraiser portal," or "mortgage technology
265	company," or any abbreviation or words to that effect, unless
266	the person is registered with the department as an appraisal
267	management company under this section. However, an employee of
268	an appraisal management company is not required to obtain a
269	separate registration.
270	(2) An application for registration must be submitted to
271	the department in the format prescribed by the department and
272	must include, at a minimum, the following:
273	(a) The firm or business name under which the appraisal
274	management company conducts business in this state. The
275	appraisal management company must notify the department of any
276	change in the firm or business name, on a form provided by the
277	department, within 10 days after such change.
278	(b) The mailing address, street address, and telephone
279	number of the appraisal management company's principal business
280	location. The appraisal management company must notify the
281	department of any change in the mailing or street address, on a
282	form provided by the department, within 10 days after such
283	change.
284	(c) The appraisal management company's federal employer
285	identification number.
286	(d) The appraisal management company's type of business
287	organization, such as a corporation, partnership, limited
288	liability company, or sole proprietorship.
289	(e) A statement as to whether the appraisal management
290	company, if incorporated, is a domestic or foreign corporation,
291	the company's date of incorporation, the state in which the
292	company was incorporated, its charter number, and, if it is a
293	foreign corporation, the date that the company first registered
294	with the Department of State to conduct business in this state.
295	(f) The full name, street address, telephone number,
296	corporate title, and social security number or federal employer
297	identification number of any person who possesses the authority,
298	directly or indirectly, to direct the management or policies of
299	the appraisal management company, whether through ownership, by
300	contract, or otherwise, including, but not limited to:
301	1. Each officer and director if the appraisal management
302	company is a corporation.
303	2. Each general partner if the appraisal management
304	company is a partnership.
305	3. Each manager or managing member if the appraisal
306	management company is a limited liability company.
307	4. The owner if the appraisal management company is a sole
308	proprietorship.
309	5. Each other person who, directly or indirectly, owns or
310	controls 10 percent or more of an ownership interest in the
311	appraisal management company.
312	(g) The firm or business name under which any person
313	listed in paragraph (f) conducted business as an appraisal
314	management company within the 5 years preceding the date of the
315	application.
316	(h) The appraisal management company's registered agent
317	for service of process in this state.
318	(3) Appropriate fees, as set forth in the rules of the
319	board pursuant to s. 475.6147, and a complete set of
320	fingerprints for each person listed in paragraph (2)(f) must
321	accompany all applications for registration. The fingerprints
322	shall be forwarded to the Division of Criminal Justice
323	Information Systems within the Department of Law Enforcement for
324	purposes of processing the fingerprints to determine whether the
325	person has a criminal history record. The fingerprints shall
326	also be forwarded to the Federal Bureau of Investigation for
327	purposes of processing the fingerprints to determine whether the
328	person has a criminal history record. The information obtained
329	by the processing of fingerprints by the Department of Law
330	Enforcement and the Federal Bureau of Investigation shall be
331	sent to the department for the purpose of determining whether
332	the appraisal management company is statutorily qualified for
333	registration.
334	(4) At the time of filing an application for registration
335	of an appraisal management company, each person listed in
336	paragraph (2)(f) must sign a pledge to comply with the Uniform
337	Standards of Professional Appraisal Practice upon registration
338	and must indicate in writing that she or he understands the
339	types of misconduct for which disciplinary proceedings may be
340	initiated. The application shall expire 1 year after the date
341	received.
342	(5) Each person listed in paragraph (2)(f) must be
343	competent and qualified to engage in appraisal management
344	services with safety to the general public and those with whom
345	the person may undertake a relationship of trust and confidence.
346	If any person listed in paragraph (2)(f) has been denied
347	registration, licensure, or certification as an appraiser or has
348	been disbarred, or if the person's registration, license, or
349	certificate to practice or conduct any regulated profession,
350	business, or vocation has been revoked or suspended by this or
351	any other state, any nation, any possession or district of the
352	United States, or any court or lawful agency thereof because of
353	any conduct or practices that would have warranted a like result
354	under this part, or if the person has been guilty of conduct or
355	practices in this state or elsewhere that would have been
356	grounds for disciplining her or his registration, license, or
357	certification under this part had the person then been a
358	registered trainee appraiser or a licensed or certified
359	appraiser, the person shall be deemed not to be qualified
360	unless, because of lapse of time and subsequent good conduct and
361	reputation, or other reason deemed sufficient, it appears to the
362	board that the interest of the public is not likely to be
363	endangered by the granting of registration.
364	(6) An applicant seeking to become registered under this
365	part as an appraisal management company may not be rejected
366	solely by virtue of membership or lack of membership of any
367	person listed in paragraph (2)(f) or any employee of the company
368	in any particular appraisal organization.
369	(7) An applicant for registration who is not a resident of
370	the state shall file an irrevocable consent that suits and
371	actions may be commenced against the appraisal management
372	company in any county of the state in which a plaintiff having a
373	cause of action or suit against the company resides and that
374	service of any process or pleading in suits or actions against
375	the company may be made by delivering the process or pleading to
376	the director of the Division of Real Estate by certified mail,
377	return receipt requested, and also to the appraisal management
378	company by registered mail addressed to the company's designated
379	principal business location or, if its principal business
380	location is located in this state, to the company's registered
381	agent. Service, when so made, must be taken and held in all
382	courts to be as valid and binding upon the appraisal management
383	company as if made upon the company in this state within the
384	jurisdiction of the court in which the suit or action is filed.
385	The irrevocable consent must be in a form prescribed by the
386	department and be acknowledged before a notary public.
387	(8) The department shall renew the registration of an
388	appraisal management company upon receipt of the renewal
389	application and the proper fee. The department shall adopt rules
390	establishing a procedure for renewal of the registration of an
391	appraisal management company at least every 4 years.
392	Section 6. Section 475.624, Florida Statutes, is amended
393	to read:
394	475.624 Discipline of appraisers.-The board may deny an
395	application for registration or certification of an appraiser;
396	may investigate the actions of any appraiser registered,
397	licensed, or certified under this part; may reprimand or impose
398	an administrative fine not to exceed $5,000 for each count or
399	separate offense against any such appraiser; and may revoke or
400	suspend, for a period not to exceed 10 years, the registration,
401	license, or certification of any such appraiser, or place any
402	such appraiser on probation, if the board it finds that the
403	registered trainee, licensee, or certificateholder:
404	(1) Has violated any provision provisions of this part or
405	s. 455.227(1); however, any appraiser registered, licensed, or
406	certified certificateholders, registrants, and licensees under
407	this part is are exempt from the provisions of s. 455.227(1)(i).
408	(2) Has been guilty of fraud, misrepresentation,
409	concealment, false promises, false pretenses, dishonest conduct,
410	culpable negligence, or breach of trust in any business
411	transaction in this state or any other state, nation, or
412	territory; has violated a duty imposed upon her or him by law or
413	by the terms of a contract, whether written, oral, express, or
414	implied, in an appraisal assignment; has aided, assisted, or
415	conspired with any other person engaged in any such misconduct
416	and in furtherance thereof; or has formed an intent, design, or
417	scheme to engage in such misconduct and committed an overt act
418	in furtherance of such intent, design, or scheme. It is
419	immaterial to the guilt of the registered trainee appraiser or
420	licensed, licensee, or certified appraiser certificateholder
421	that the victim or intended victim of the misconduct has
422	sustained no damage or loss; that the damage or loss has been
423	settled and paid after discovery of the misconduct; or that such
424	victim or intended victim was a customer or a person in
425	confidential relation with the registered trainee appraiser or
426	licensed, licensee, or certified appraiser certificateholder, or
427	was an identified member of the general public.
428	(3) Has advertised services in a manner that which is
429	fraudulent, false, deceptive, or misleading in form or content.
430	(4) Has violated any provision of the provisions of this
431	part or any lawful order or rule issued under the provisions of
432	this part or chapter 455.
433	(5) Has been convicted or found guilty of, or entered a
434	plea of nolo contendere to, regardless of adjudication, a crime
435	in any jurisdiction that which directly relates to the
436	activities of a registered trainee appraiser or licensed or
437	certified appraiser, or that which involves moral turpitude or
438	fraudulent or dishonest conduct. The record of a conviction
439	certified or authenticated in such form as admissible in
440	evidence under the laws of the state shall be admissible as
441	prima facie evidence of such guilt.
442	(6) Has had a registration, license, or certification as
443	an appraiser revoked, suspended, or otherwise acted against;, or
444	has been disbarred;, or has had her or his registration,
445	license, or certificate to practice or conduct any regulated
446	profession, business, or vocation revoked or suspended by this
447	or any other state, any nation, or any possession or district of
448	the United States;, or has had an application for such
449	registration, licensure, or certification to practice or conduct
450	any regulated profession, business, or vocation denied by this
451	or any other state, any nation, or any possession or district of
452	the United States.
453	(7) Has become temporarily incapacitated from acting as an
454	appraiser with safety to those in a fiduciary relationship with
455	her or him because of drunkenness, use of drugs, or temporary
456	mental derangement; however, suspension of a license,
457	certification, or registration in such cases shall only be for
458	the period of such incapacity.
459	(8) Is confined in any county jail, postadjudication; is
460	confined in any state or federal prison or mental institution;
461	or, through mental disease or deterioration, can no longer
462	safely be entrusted to deal with the public or in a confidential
463	capacity.
464	(9) Has failed to inform the board in writing within 30
465	days after pleading guilty or nolo contendere to, or being
466	convicted or found guilty of, any felony.
467	(10) Has been found guilty, for a second time, of any
468	misconduct that warrants disciplinary action, or has been found
469	guilty of a course of conduct or practice that which shows that
470	she or he is incompetent, negligent, dishonest, or untruthful to
471	an extent that those with whom she or he may sustain a
472	confidential relationship may not safely do so.
473	(11) Has made or filed a report or record, either written
474	or oral, that which the registered trainee appraiser or
475	licensed, licensee, or certified appraiser certificateholder
476	knows to be false; has willfully failed to
477	record required by state or federal law; has
478	or obstructed such filing;, or has induced
479	impede or obstruct such filing. However, such reports or records
480	shall include only those that which are signed or presented in
481	the capacity of a registered trainee appraiser or licensed or
482	certified appraiser.
483	(12) Has obtained or attempted to obtain a registration,
484	license, or certification by means of knowingly making a false
485	statement, submitting false information, refusing to provide
486	complete information in response to an application question, or
487	engaging in fraud, misrepresentation, or concealment.
488	(13) Has paid money or other valuable consideration,
489	except as required by this section, to any member or employee of
490	the board to obtain a registration, license, or certification
491	under this section.
492	(14) Has violated any standard for the development or
493	communication of a real estate appraisal or other provision of
494	the Uniform Standards of Professional Appraisal Practice.
495	(15) Has failed or refused to exercise reasonable
496	diligence in developing an appraisal or preparing an appraisal
497	report.
498	(16) Has failed to communicate an appraisal without good
499	cause.
500	(17) Has accepted an appraisal assignment if the
501	employment itself is contingent upon the appraiser reporting a
502	predetermined result, analysis, or opinion, or if the fee to be
503	paid for the performance of the appraisal assignment is
504	contingent upon the opinion, conclusion, or valuation reached
505	upon the consequences resulting from the appraisal assignment.
506	(18) Has failed to timely notify the department of any
507	change in business location, or has failed to fully disclose all
508	business locations from which she or he operates as a registered
509	trainee real estate appraiser or licensed or certified real
510	estate appraiser.
511	Section 7. Section 475.6245, Florida Statutes, is created
512	to read:
513	475.6245 Discipline of appraisal management companies.-
514	(1) The board may deny an application for registration of
515	an appraisal management company; may investigate the actions of
516	any appraisal management company registered under this part; may
517	reprimand or impose an administrative fine not to exceed $5,000
518	for each count or separate offense against any such appraisal
519	management company; and may revoke or suspend, for a period not
520	to exceed 10 years, the registration of any such appraisal
521	management company, or place any such appraisal management
522	company on probation, if the board finds that the appraisal
523	management company or any person listed in s. 475.6235(2)(f):
524	(a) Has violated any provision of this part or s.
525	455.227(1); however, any appraisal management company registered
526	under this part is exempt from s. 455.227(1)(i).
527	(b) Has been guilty of fraud, misrepresentation,
528	concealment, false promises, false pretenses, dishonest conduct,
529	culpable negligence, or breach of trust in any business
530	transaction in this state or any other state, nation, or
531	territory; has violated a duty imposed upon her or him by law or
532	by the terms of a contract, whether written, oral, express, or
533	implied, in an appraisal assignment; has aided, assisted, or
534	conspired with any other person engaged in any such misconduct
535	and in furtherance thereof; or has formed an intent, design, or
536	scheme to engage in such misconduct and committed an overt act
537	in furtherance of such intent, design, or scheme. It is
538	immaterial to the guilt of the appraisal management company that
539	the victim or intended victim of the misconduct has sustained no
540	damage or loss; that the damage or loss has been settled and
541	paid after discovery of the misconduct; or that such victim or
542	intended victim was a customer or a person in confidential
543	relation with the appraisal management company or was an
544	identified member of the general public.
545	(c) Has advertised services in a manner that is
546	fraudulent, false, deceptive, or misleading in form or content.
547	(d) Has violated any provision of this part or any lawful
548	order or rule issued under this part or chapter 455.
549	(e) Has been convicted or found guilty of, or entered a
550	plea of nolo contendere to, regardless of adjudication, a crime
551	in any jurisdiction that directly relates to the activities of
552	an appraisal management company or that involves moral turpitude
553	or fraudulent or dishonest conduct. The record of a conviction
554	certified or authenticated in such form as admissible in
555	evidence under the laws of the state shall be admissible as
556	prima facie evidence of such guilt.
557	(f) Has had a registration, license, or certification as
558	an appraiser or a registration as an appraisal management
559	company revoked, suspended, or otherwise acted against; has been
560	disbarred; has had her or his registration, license, or
561	certificate to practice or conduct any regulated profession,
562	business, or vocation revoked or suspended by this or any other
563	state, any nation, or any possession or district of the United
564	States; or has had an application for such registration,
565	licensure, or certification to practice or conduct any regulated
566	profession, business, or vocation denied by this or any other
567	state, any nation, or any possession or district of the United
568	States.
569	(g) Has become temporarily incapacitated from acting as an
570	appraisal management company with safety to those in a fiduciary
571	relationship with her or him because of drunkenness, use of
572	drugs, or temporary mental derangement; however, suspension of a
573	registration in such cases shall only be for the period of such
574	incapacity.
575	(h) Is confined in any county jail, postadjudication; is
576	confined in any state or federal prison or mental institution;
577	or, through mental disease or deterioration, can no longer
578	safely be entrusted to deal with the public or in a confidential
579	capacity.
580	(i) Has failed to inform the board in writing within 30
581	days after pleading guilty or nolo contendere to, or being
582	convicted or found guilty of, any felony.
583	(j) Has been found guilty, for a second time, of any
584	misconduct that warrants disciplinary action, or has been found
585	guilty of a course of conduct or practice that shows that she or
586	he is incompetent, negligent, dishonest, or untruthful to an
587	extent that those with whom she or he may sustain a confidential
588	relationship may not safely do so.
589	(k) Has made or filed a report or record, either written
590	or oral, that the appraisal management company knows to be
591	false; has willfully failed to file a report or record required
592	by state or federal law; has willfully impeded or obstructed
593	such filing; or has induced another person to impede or obstruct
594	such filing. However, such reports or records shall include only
595	those that are signed or presented in the capacity of an
596	appraisal management company.
597	(l) Has obtained or attempted to obtain a registration,
598	license, or certification by means of knowingly making a false
599	statement, submitting false information, refusing to provide
600	complete information in response to an application question, or
601	engaging in fraud, misrepresentation, or concealment.
602	(m) Has paid money or other valuable consideration, except
603	as required by this section, to any member or employee of the
604	board to obtain a registration, license, or certification under
605	this section.
606	(n) Has instructed an appraiser to violate any standard
607	for the development or communication of a real estate appraisal
608	or other provision of the Uniform Standards of Professional
609	Appraisal Practice.
610	(o) Has engaged in the development of an appraisal or the
611	preparation of an appraisal report, unless the appraisal
612	management company is owned or controlled by certified
613	appraisers.
614	(p) Has failed to communicate an appraisal without good
615	cause.
616	(q) Has accepted an appraisal assignment if the employment
617	itself is contingent upon the appraisal management company
618	reporting a predetermined result, analysis, or opinion or if the
619	fee to be paid for the performance of the appraisal assignment
620	is contingent upon the opinion, conclusion, or valuation reached
621	upon the consequences resulting from the appraisal assignment.
622	(r) Has failed to timely notify the department of any
623	change in principal business location as an appraisal management
624	company.
625	(s) Has influenced or attempted to influence the
626	development, reporting, or review of an appraisal through
627	coercion, extortion, collusion, compensation, inducement,
628	intimidation, bribery, or any other means, including, but not
629	limited to:
630	1. Withholding or threatening to withhold timely payment
631	for an appraisal, unless such nonpayment is based upon specific
632	quality or other service issues that constitute noncompliance
633	with the appraisal engagement agreement.
634	2. Withholding or threatening to withhold future business
635	from an appraiser.
636	3. Promising future business, promotions, or increased
637	compensation for an appraiser, whether the promise is express or
638	implied.
639	4. Conditioning a request for appraisal services or the
640	payment of an appraisal fee, salary, or bonus upon the opinion,
641	conclusion, or valuation to be reached or upon a preliminary
642	estimate or opinion requested from an appraiser.
643	5. Requesting that an appraiser provide an estimated,
644	predetermined, or desired valuation in an appraisal report or
645	provide estimated values or comparable sales at any time before
646	the appraiser's completion of appraisal services.
647	6. Providing to an appraiser an anticipated, estimated,
648	encouraged, or desired value for a subject property or a
649	proposed or target amount to be loaned to the borrower, except
650	that a copy of the sales contract for purchase transactions may
651	be provided.
652	7. Providing to an appraiser, or any person related to the
653	appraiser, stock or other financial or nonfinancial benefits.
654	8. Allowing the removal of an appraiser from an appraiser
655	panel without prior written notice to the appraiser.
656	9. Obtaining, using, or paying for a second or subsequent
657	appraisal or ordering an automated valuation model in connection
658	with a mortgage financing transaction unless there is a
659	reasonable basis to believe that the initial appraisal was
660	flawed or tainted and such basis is clearly and appropriately
661	noted in the loan file, or unless such appraisal or automated
662	valuation model is issued pursuant to a bona fide prefunding or
663	postfunding appraisal review or quality control process.
664	10. Any other act or practice that impairs or attempts to
665	impair an appraiser's independence, objectivity, or
666	impartiality.
667	(t) Has altered, modified, or otherwise changed a
668	completed appraisal report submitted by an appraiser to an
669	appraisal management company.
670	(u) Has employed, contracted with, or otherwise retained
671	an appraiser whose registration, license, or certification is
672	suspended or revoked to perform appraisal services or appraisal
673	management services.
674	(2) The board may reprimand an appraisal management
675	company, conditionally or unconditionally suspend or revoke any
676	registration of an appraisal management company issued under
677	this part, or impose administrative fines not to exceed $5,000
678	for each count or separate offense against any such appraisal
679	management company if the board determines that the appraisal
680	management company is attempting to perform, has performed, or
681	has attempted to perform any of the following acts:
682	(a) Committing any act in violation of this part.
683	(b) Violating any rule adopted by the board under this
684	part.
685	(c) Obtaining a registration of an appraisal management
686	company by fraud, misrepresentation, or deceit.
687	(3) This section does not prohibit an appraisal management
688	company from requesting an appraiser to:
689	(a) Provide additional information about the basis of a
690	valuation, including consideration of additional comparable
691	data; or
692	(b) Correct objective factual errors in an appraisal
693	report.
694	Section 8. Section 475.626, Florida Statutes, is amended
695	to read:
696	475.626 Violations and penalties.-
697	(1) A person may not: VIOLATIONS.-
698	(a) No person shall Operate or attempt to operate as a
699	registered trainee appraiser, a or licensed or certified
700	appraiser, or an appraisal management company without being the
701	holder of a valid and current registration, license, or
702	certification.
703	(b) No person shall Violate any lawful order or rule of
704	the board which is binding upon her or him.
705	(c) If a registered trainee appraiser or a licensed or
706	certified appraiser, No person shall commit any conduct or
707	practice set forth in s. 475.624.
708	(d) If an appraisal management company, commit any conduct
709	or practice set forth in s. 475.6245.
710	(e)(d) No person shall Make any false affidavit or
711	affirmation intended for use as evidence by or before the board
712	or any member thereof, or by any of its authorized
713	representatives, nor may shall any person give false testimony
714	under oath or affirmation to or before the board or any member
715	thereof in any proceeding authorized by this section.
716	(f)(e) No person shall Fail or refuse to appear at the
717	time and place designated in a subpoena issued with respect to a
718	violation of this section, unless such failure to appear is the
719	result of facts or circumstances that are sufficient to excuse
720	appearance in response to a subpoena from the circuit court; nor
721	may shall a person who is present before the board or a member
722	thereof or one of its authorized representatives acting under
723	authority of this section refuse to be sworn or to affirm or
724	fail or refuse to answer fully any question propounded by the
725	board, the member, or such representative, or by any person by
726	the authority of such officer or appointee.
727	(g)(f) No person shall Obstruct or hinder in any manner
728	the enforcement of this section or the performance of any lawful
729	duty by any person acting under the authority of this section,
730	or interfere with, intimidate, or offer any bribe to any member
731	of the board or any of its employees or any person who is, or is
732	expected to be, a witness in any investigation or proceeding
733	relating to a violation of this section.
734	(h)(g) No person shall Knowingly conceal any information
735	relating to violations of this section.
736	(2) A PENALTIES.-Any person who violates any provision of
737	the provisions of subsection (1) commits is guilty of a
738	misdemeanor of the second degree, punishable as provided in s.
739	775.082 or s. 775.083, except when a different punishment is
740	prescribed by this section. Nothing in This section does not
741	shall prohibit the prosecution under any other criminal statute
742	of this state of any person for an act or conduct prohibited by
743	this section; however, in such cases, the state may prosecute
744	under this section or under such other statute, or may charge
745	both offenses in one prosecution, but the sentence imposed shall
746	not be a greater fine or longer sentence than that prescribed
747	for the offense which carries the more severe penalties. A civil
748	case, a criminal case, or a denial, revocation, or suspension
749	proceeding may arise out of the same alleged state of facts, and
750	the pendency or result of one such case or proceeding shall not
751	stay or control the result of either of the others.
752	Section 9. Section 475.629, Florida Statutes, is amended
753	to read:
754	475.629 Retention of records.-An appraiser registered,
755	licensed, or certified under this part or an appraisal
756	management company registered under this part shall retain, for
757	at least 5 years or the period specified in the Uniform
758	Standards of Professional Appraisal Practice, whichever is
759	greater, original or true copies of any contracts engaging the
760	appraiser's or appraisal management company's services,
761	appraisal reports, and supporting data assembled and formulated
762	by the appraiser or company in preparing appraisal reports or
763	engaging in appraisal management services. Except as otherwise
764	specified in the Uniform Standards of Professional Appraisal
765	Practice, the period for retention of the records applicable to
766	each engagement of the services of the appraiser or appraisal
767	management company runs from the date of the submission of the
768	appraisal report to the client. These records must be made
769	available by the appraiser or appraisal management company for
770	inspection and copying by the department upon on reasonable
771	notice to the appraiser or company. However, the department may
772	not inspect or copy the records of an appraisal management
773	company except in connection with a pending investigation or
774	complaint. If an appraisal has been the subject of or has served
775	as evidence for litigation, reports and records must be retained
776	for at least 2 years after the trial or the period specified in
777	the Uniform Standards of Professional Appraisal Practice,
778	whichever is greater.
779	Section 10. This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.