| 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. 475.614, F.S.; |
| 5 | requiring the Florida Real Estate Appraisal Board to adopt |
| 6 | certain rules; amending s. 475.6147, F.S.; requiring |
| 7 | application, registration, and renewal fees for appraisal |
| 8 | management companies; creating s. 475.6235, F.S.; |
| 9 | requiring appraisal management companies to register with |
| 10 | the Department of Business and Professional Regulation; |
| 11 | providing exemptions; specifying application requirements |
| 12 | and procedures; requiring the fingerprinting and criminal |
| 13 | history records checks of, and providing qualifications |
| 14 | for, certain persons who control appraisal management |
| 15 | companies; requiring nonresident appraisal management |
| 16 | companies to consent to commencement of actions in this |
| 17 | state; requiring the department to adopt rules relating to |
| 18 | the renewal of registrations; amending s. 475.624, F.S.; |
| 19 | establishing additional acts for which appraisers are |
| 20 | subject to disciplinary action; providing for the |
| 21 | discipline of appraisal management companies by the board; |
| 22 | amending s. 475.626, F.S.; providing penalties; conforming |
| 23 | provisions to changes made by the act; amending s. |
| 24 | 475.629, F.S.; revising requirements for the retention of |
| 25 | appraisal records; requiring appraisal management |
| 26 | companies to follow such requirements; providing an |
| 27 | 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. Section 475.614, Florida Statutes, is amended |
| 169 | to read: |
| 170 | 475.614 Power of board to adopt rules and decide questions |
| 171 | of practice; requirements for protection of appraiser's |
| 172 | signature.-- |
| 173 | (1) The board has authority to adopt rules pursuant to ss. |
| 174 | 120.536(1) and 120.54 to implement provisions of law conferring |
| 175 | duties upon it. The board may decide questions of practice |
| 176 | arising in the proceedings before it, having regard to this |
| 177 | section and the rules then in force. |
| 178 | (2) The board shall adopt rules specifying the means by |
| 179 | which an appraiser's signature may be affixed to an appraisal |
| 180 | report or other work performed by the appraiser. The rules shall |
| 181 | include requirements for protecting the security of an |
| 182 | appraiser's signature and prohibiting practices that may |
| 183 | discredit the use of an appraiser's signature to authenticate |
| 184 | the work performed by the appraiser. |
| 185 | Section 3. Subsection (1) of section 475.6147, Florida |
| 186 | Statutes, is amended to read: |
| 187 | 475.6147 Fees.-- |
| 188 | (1)(a) The board by rule may establish fees to be paid for |
| 189 | application, licensing and renewal, certification and |
| 190 | recertification, registration and reregistration, reinstatement, |
| 191 | and recordmaking and recordkeeping. |
| 192 | (b) The fee for initial application of an appraiser may |
| 193 | not exceed $150, and the combined cost of the application and |
| 194 | examination may not exceed $300. The initial certification, |
| 195 | registration, or license fee and the certification, |
| 196 | registration, or license renewal fee may not exceed $150 for |
| 197 | each year of the duration of the certification, registration, or |
| 198 | license. |
| 199 | (c) The fee for initial application of an appraisal |
| 200 | management company may not exceed $150. The initial registration |
| 201 | and registration renewal fee may not exceed $150 for each year |
| 202 | of the duration of the registration. |
| 203 | (d) The board may also establish by rule a late renewal |
| 204 | penalty. |
| 205 | (e) The board shall establish fees which are adequate to |
| 206 | ensure its continued operation. Fees shall be based on estimates |
| 207 | made by the department of the revenue required to implement this |
| 208 | part and other provisions of law relating to the regulation of |
| 209 | real estate appraisers. |
| 210 | Section 4. Section 475.6235, Florida Statutes, is created |
| 211 | to read: |
| 212 | 475.6235 Registration of appraisal management companies |
| 213 | required; exemptions.-- |
| 214 | (1)(a) Except as provided in paragraph (b), a person may |
| 215 | not engage in appraisal management services for compensation in |
| 216 | this state, advertise or represent herself or himself as an |
| 217 | appraisal management company, or use the titles "appraisal |
| 218 | management company," "appraiser cooperative," "appraiser |
| 219 | portal," or "mortgage technology company," or any abbreviation |
| 220 | or words to that effect, unless the person is registered with |
| 221 | the department as an appraisal management company under this |
| 222 | section. However, an employee of an appraisal management company |
| 223 | is not required to obtain a separate registration. |
| 224 | (b) An appraisal management company is not required to |
| 225 | register under this part if: |
| 226 | 1. No more than 10 percent of the appraisal management |
| 227 | company is owned by persons other than certified or licensed |
| 228 | appraisers; or |
| 229 | 2. The appraisal management company is a financial |
| 230 | institution as defined in s. 655.005, a mortgage lender licensed |
| 231 | under s. 494.0061, or an insurer as defined in s. 624.03. |
| 232 | (2) An application for registration must be submitted to |
| 233 | the department in the format prescribed by the department and |
| 234 | must include, at a minimum, the following: |
| 235 | (a) The firm or business name under which the appraisal |
| 236 | management company conducts business in this state. The |
| 237 | appraisal management company must notify the department of any |
| 238 | change in the firm or business name, on a form provided by the |
| 239 | department, within 10 days after such change. |
| 240 | (b) The mailing address, street address, and telephone |
| 241 | number of the appraisal management company's principal business |
| 242 | location. The appraisal management company must notify the |
| 243 | department of any change in the mailing or street address, on a |
| 244 | form provided by the department, within 10 days after such |
| 245 | change. |
| 246 | (c) The appraisal management company's federal employer |
| 247 | identification number. |
| 248 | (d) The appraisal management company's type of business |
| 249 | organization, such as a corporation, partnership, limited |
| 250 | liability company, or sole proprietorship. |
| 251 | (e) A statement as to whether the appraisal management |
| 252 | company, if incorporated, is a domestic or foreign corporation, |
| 253 | the company's date of incorporation, the state in which the |
| 254 | company was incorporated, its charter number, and, if it is a |
| 255 | foreign corporation, the date that the company first registered |
| 256 | with the Department of State to conduct business in this state. |
| 257 | (f) The full name, street address, telephone number, |
| 258 | corporate title, and social security number or federal employer |
| 259 | identification number of any person who possesses the authority, |
| 260 | directly or indirectly, to direct the management or policies of |
| 261 | the appraisal management company, whether through ownership, by |
| 262 | contract, or otherwise, including, but not limited to: |
| 263 | 1. Each officer and director if the appraisal management |
| 264 | company is a corporation. |
| 265 | 2. Each general partner if the appraisal management |
| 266 | company is a partnership. |
| 267 | 3. Each manager or managing member if the appraisal |
| 268 | management company is a limited liability company. |
| 269 | 4. The owner if the appraisal management company is a sole |
| 270 | proprietorship. |
| 271 | 5. Each other person who, directly or indirectly, owns or |
| 272 | controls 10 percent or more of an ownership interest in the |
| 273 | appraisal management company. |
| 274 | (g) The firm or business name under which any person |
| 275 | listed in paragraph (f) conducted business as an appraisal |
| 276 | management company within the 5 years preceding the date of the |
| 277 | application. |
| 278 | (h) The appraisal management company's registered agent |
| 279 | for service of process in this state. |
| 280 | (3) Appropriate fees, as set forth in the rules of the |
| 281 | board pursuant to s. 475.6147, and a fingerprint card for each |
| 282 | person listed in paragraph (2)(f) must accompany all |
| 283 | applications for registration. The fingerprint card shall be |
| 284 | forwarded to the Division of Criminal Justice Information |
| 285 | Systems within the Department of Law Enforcement for purposes of |
| 286 | processing the fingerprint card to determine whether the person |
| 287 | has a criminal history record. The fingerprint card shall also |
| 288 | be forwarded to the Federal Bureau of Investigation for purposes |
| 289 | of processing the fingerprint card to determine whether the |
| 290 | person has a criminal history record. The information obtained |
| 291 | by the processing of the fingerprint card by the Department of |
| 292 | Law Enforcement and the Federal Bureau of Investigation shall be |
| 293 | sent to the department for the purpose of determining whether |
| 294 | the appraisal management company is statutorily qualified for |
| 295 | registration. |
| 296 | (4) At the time of filing an application for registration |
| 297 | of an appraisal management company, each person listed in |
| 298 | paragraph (2)(f) must sign a pledge to comply with the Uniform |
| 299 | Standards of Professional Appraisal Practice upon registration |
| 300 | and must indicate in writing that she or he understands the |
| 301 | types of misconduct for which disciplinary proceedings may be |
| 302 | initiated. The application shall expire 1 year after the date |
| 303 | received. |
| 304 | (5) Each person listed in paragraph (2)(f) must be |
| 305 | competent and qualified to engage in appraisal management |
| 306 | services with safety to the general public and those with whom |
| 307 | the person may undertake a relationship of trust and confidence. |
| 308 | If any person listed in paragraph (2)(f) has been denied |
| 309 | registration, licensure, or certification as an appraiser or has |
| 310 | been disbarred, or if the person's registration, license, or |
| 311 | certificate to practice or conduct any regulated profession, |
| 312 | business, or vocation has been revoked or suspended by this or |
| 313 | any other state, any nation, any possession or district of the |
| 314 | United States, or any court or lawful agency thereof because of |
| 315 | any conduct or practices that would have warranted a like result |
| 316 | under this part, or if the person has been guilty of conduct or |
| 317 | practices in this state or elsewhere that would have been |
| 318 | grounds for disciplining her or his registration, license, or |
| 319 | certification under this part had the person then been a |
| 320 | registered trainee appraiser or a licensed or certified |
| 321 | appraiser, the person shall be deemed not to be qualified |
| 322 | unless, because of lapse of time and subsequent good conduct and |
| 323 | reputation, or other reason deemed sufficient, it appears to the |
| 324 | board that the interest of the public is not likely to be |
| 325 | endangered by the granting of registration. |
| 326 | (6) An applicant seeking to become registered under this |
| 327 | part as an appraisal management company may not be rejected |
| 328 | solely by virtue of membership or lack of membership of any |
| 329 | person listed in paragraph (2)(f) or any employee of the company |
| 330 | in any particular appraisal organization. |
| 331 | (7) An applicant for registration who is not a resident of |
| 332 | this state shall file an irrevocable consent that suits and |
| 333 | actions may be commenced against the appraisal management |
| 334 | company in any county of this state in which a plaintiff having |
| 335 | a cause of action or suit against the company resides and that |
| 336 | service of any process or pleading in suits or actions against |
| 337 | the company may be made by delivering the process or pleading to |
| 338 | the director of the Division of Real Estate by certified mail, |
| 339 | return receipt requested, and also to the appraisal management |
| 340 | company by registered mail addressed to the company's designated |
| 341 | principal business location. Service, when so made, must be |
| 342 | taken and held in all courts to be as valid and binding upon the |
| 343 | appraisal management company as if made upon the company in this |
| 344 | state within the jurisdiction of the court in which the suit or |
| 345 | action is filed. The irrevocable consent must be in a form |
| 346 | prescribed by the department and be acknowledged before a notary |
| 347 | public. |
| 348 | (8) The department shall renew the registration of an |
| 349 | appraisal management company upon receipt of the renewal |
| 350 | application and the proper fee. The department shall adopt rules |
| 351 | establishing a procedure for renewal of the registration of an |
| 352 | appraisal management company at least every 4 years. |
| 353 | Section 5. Section 475.624, Florida Statutes, is amended |
| 354 | to read: |
| 355 | 475.624 Discipline.-- |
| 356 | (1) The board may deny an application for registration or |
| 357 | certification of an appraiser or registration of an appraisal |
| 358 | management company; may investigate the actions of any appraiser |
| 359 | registered, licensed, or certified under this part or any |
| 360 | appraisal management company registered under this part; may |
| 361 | reprimand or impose an administrative fine not to exceed $5,000 |
| 362 | for each count or separate offense against any such appraiser or |
| 363 | appraisal management company; and may revoke or suspend, for a |
| 364 | period not to exceed 10 years, the registration, license, or |
| 365 | certification of any such appraiser or the registration of any |
| 366 | such appraisal management company, or place any such appraiser |
| 367 | or appraisal management company on probation, if the board it |
| 368 | finds that the registered trainee, licensee, or |
| 369 | certificateholder or the appraisal management company or any |
| 370 | person listed in s. 475.6235(2)(f): |
| 371 | (a)(1) Has violated any provisions of this part or s. |
| 372 | 455.227(1); however, certificateholders, registrants, and |
| 373 | licensees, and registered appraisal management companies under |
| 374 | this part are exempt from the provisions of s. 455.227(1)(i). |
| 375 | (b)(2) Has been guilty of fraud, misrepresentation, |
| 376 | concealment, false promises, false pretenses, dishonest conduct, |
| 377 | culpable negligence, or breach of trust in any business |
| 378 | transaction in this state or any other state, nation, or |
| 379 | territory; has violated a duty imposed upon her or him by law or |
| 380 | by the terms of a contract, whether written, oral, express, or |
| 381 | implied, in an appraisal assignment; has aided, assisted, or |
| 382 | conspired with any other person engaged in any such misconduct |
| 383 | and in furtherance thereof; or has formed an intent, design, or |
| 384 | scheme to engage in such misconduct and committed an overt act |
| 385 | in furtherance of such intent, design, or scheme. It is |
| 386 | immaterial to the guilt of the registered trainee, licensee, or |
| 387 | certificateholder, or appraisal management company that the |
| 388 | victim or intended victim of the misconduct has sustained no |
| 389 | damage or loss; that the damage or loss has been settled and |
| 390 | paid after discovery of the misconduct; or that such victim or |
| 391 | intended victim was a customer or a person in confidential |
| 392 | relation with the registered trainee, licensee, or |
| 393 | certificateholder, or appraisal management company or was an |
| 394 | identified member of the general public. |
| 395 | (c)(3) Has advertised services in a manner which is |
| 396 | fraudulent, false, deceptive, or misleading in form or content. |
| 397 | (d)(4) Has violated any of the provisions of this part or |
| 398 | any lawful order or rule issued under the provisions of this |
| 399 | part or chapter 455. |
| 400 | (e)(5) Has been convicted or found guilty of, or entered a |
| 401 | plea of nolo contendere to, regardless of adjudication, a crime |
| 402 | in any jurisdiction which directly relates to the activities of |
| 403 | a registered trainee appraiser, or licensed or certified |
| 404 | appraiser, or appraisal management company or which involves |
| 405 | moral turpitude or fraudulent or dishonest conduct. The record |
| 406 | of a conviction certified or authenticated in such form as |
| 407 | admissible in evidence under the laws of the state shall be |
| 408 | admissible as prima facie evidence of such guilt. |
| 409 | (f)(6) Has had a registration, license, or certification |
| 410 | as an appraiser or a registration as an appraisal management |
| 411 | company revoked, suspended, or otherwise acted against, or has |
| 412 | been disbarred, or has had her or his registration, license, or |
| 413 | certificate to practice or conduct any regulated profession, |
| 414 | business, or vocation revoked or suspended by this or any other |
| 415 | state, any nation, or any possession or district of the United |
| 416 | States, or has had an application for such registration, |
| 417 | licensure, or certification to practice or conduct any regulated |
| 418 | profession, business, or vocation denied by this or any other |
| 419 | state, any nation, or any possession or district of the United |
| 420 | States. |
| 421 | (g)(7) Has become temporarily incapacitated from acting as |
| 422 | an appraiser or appraisal management company with safety to |
| 423 | those in a fiduciary relationship with her or him because of |
| 424 | drunkenness, use of drugs, or temporary mental derangement; |
| 425 | however, suspension of a license, certification, or registration |
| 426 | in such cases shall only be for the period of such incapacity. |
| 427 | (h)(8) Is confined in any county jail, postadjudication; |
| 428 | is confined in any state or federal prison or mental |
| 429 | institution; or, through mental disease or deterioration, can no |
| 430 | longer safely be entrusted to deal with the public or in a |
| 431 | confidential capacity. |
| 432 | (i)(9) Has failed to inform the board in writing within 30 |
| 433 | days after pleading guilty or nolo contendere to, or being |
| 434 | convicted or found guilty of, any felony. |
| 435 | (j)(10) Has been found guilty, for a second time, of any |
| 436 | misconduct that warrants disciplinary action, or has been found |
| 437 | guilty of a course of conduct or practice which shows that she |
| 438 | or he is incompetent, negligent, dishonest, or untruthful to an |
| 439 | extent that those with whom she or he may sustain a confidential |
| 440 | relationship may not safely do so. |
| 441 | (k)(11) Has made or filed a report or record, either |
| 442 | written or oral, which the registered trainee, licensee, or |
| 443 | certificateholder, or appraisal management company knows to be |
| 444 | false; has willfully failed to file a report or record required |
| 445 | by state or federal law; or has willfully impeded or obstructed |
| 446 | such filing, or has induced another person to impede or obstruct |
| 447 | such filing. However, such reports or records shall include only |
| 448 | those which are signed or presented in the capacity of a |
| 449 | registered trainee appraiser, or licensed or certified |
| 450 | appraiser, or appraisal management company. |
| 451 | (l)(12) Has obtained or attempted to obtain a |
| 452 | registration, license, or certification by means of knowingly |
| 453 | making a false statement, submitting false information, refusing |
| 454 | to provide complete information in response to an application |
| 455 | question, or engaging in fraud, misrepresentation, or |
| 456 | concealment. |
| 457 | (m)(13) Has paid money or other valuable consideration, |
| 458 | except as required by this section, to any member or employee of |
| 459 | the board to obtain a registration, license, or certification |
| 460 | under this section. |
| 461 | (n)(14) Has violated any standard for the development or |
| 462 | communication of a real estate appraisal or other provision of |
| 463 | the Uniform Standards of Professional Appraisal Practice. |
| 464 | (o)(15) Has failed or refused to exercise reasonable |
| 465 | diligence in developing an appraisal or preparing an appraisal |
| 466 | report. |
| 467 | (p)(16) Has failed to communicate an appraisal without |
| 468 | good cause. |
| 469 | (q)(17) Has accepted an appraisal assignment if the |
| 470 | employment itself is contingent upon the appraiser or appraisal |
| 471 | management company reporting a predetermined result, analysis, |
| 472 | or opinion, or if the fee to be paid for the performance of the |
| 473 | appraisal assignment is contingent upon the opinion, conclusion, |
| 474 | or valuation reached upon the consequences resulting from the |
| 475 | appraisal assignment. |
| 476 | (r)(18) Has failed to timely notify the department of any |
| 477 | change in business location, or has failed to fully disclose all |
| 478 | business locations from which she or he operates as a registered |
| 479 | trainee real estate appraiser or licensed or certified real |
| 480 | estate appraiser. |
| 481 | (s) Has failed to timely notify the department of any |
| 482 | change in principal business location as an appraisal management |
| 483 | company. |
| 484 | (t) Has influenced or attempted to influence the |
| 485 | development, reporting, or review of an appraisal through |
| 486 | coercion, extortion, collusion, compensation, instruction, |
| 487 | inducement, intimidation, bribery, or any other means, |
| 488 | including, but not limited to: |
| 489 | 1. Withholding or threatening to withhold timely payment |
| 490 | for an appraisal. |
| 491 | 2. Withholding or threatening to withhold future business |
| 492 | from an appraiser. |
| 493 | 3. Demoting, terminating, or threatening to demote or |
| 494 | terminate an appraiser. |
| 495 | 4. Promising future business, promotions, or increased |
| 496 | compensation for an appraiser, whether the promise is express or |
| 497 | implied. |
| 498 | 5. Conditioning a request for appraisal services or the |
| 499 | payment of an appraisal fee, salary, or bonus upon the opinion, |
| 500 | conclusion, or valuation to be reached or upon a preliminary |
| 501 | estimate or opinion requested from an appraiser. |
| 502 | 6. Requesting that an appraiser provide an estimated, |
| 503 | predetermined, or desired valuation in an appraisal report or |
| 504 | provide estimated values or comparable sales at any time before |
| 505 | the appraiser's completion of appraisal services. |
| 506 | 7. Providing to an appraiser an anticipated, estimated, |
| 507 | encouraged, or desired value for a subject property or a |
| 508 | proposed or target amount to be loaned to the borrower, except |
| 509 | that a copy of the sales contract for purchase transactions may |
| 510 | be provided. |
| 511 | 8. Providing to an appraiser, or any person related to the |
| 512 | appraiser, stock or other financial or nonfinancial benefits. |
| 513 | 9. Allowing the removal of an appraiser from an appraiser |
| 514 | panel without prior written notice to the appraiser. |
| 515 | 10. Obtaining, using, or paying for a second or subsequent |
| 516 | appraisal or ordering an automated valuation model in connection |
| 517 | with a mortgage financing transaction unless there is a |
| 518 | reasonable basis to believe that the initial appraisal was |
| 519 | flawed or tainted and such basis is clearly and appropriately |
| 520 | noted in the loan file, or unless such appraisal or automated |
| 521 | valuation model is issued pursuant to a bona fide prefunding or |
| 522 | postfunding appraisal review or quality control process. |
| 523 | 11. Any other act or practice that impairs or attempts to |
| 524 | impair an appraiser's independence, objectivity, or |
| 525 | impartiality. |
| 526 | (u) Has altered, modified, or otherwise changed a |
| 527 | completed appraisal report submitted by an appraiser to an |
| 528 | appraisal management company. |
| 529 | (v) Has employed, contracted with, or otherwise retained |
| 530 | an appraiser whose registration, license, or certification is |
| 531 | suspended or revoked to perform appraisal services or appraisal |
| 532 | management services. |
| 533 | (2) The board may reprimand an appraisal management |
| 534 | company, conditionally or unconditionally suspend or revoke any |
| 535 | registration of an appraisal management company issued under |
| 536 | this part, or impose administrative fines not to exceed $25,000 |
| 537 | for each count or separate offense against any such appraisal |
| 538 | management company if the board determines that the appraisal |
| 539 | management company is attempting to perform, has performed, or |
| 540 | has attempted to perform any of the following acts: |
| 541 | (a) Committing any act in violation of this part. |
| 542 | (b) Violating any rule adopted by the board under this |
| 543 | part. |
| 544 | (c) Obtaining a registration of an appraisal management |
| 545 | company by fraud, misrepresentation, or deceit. |
| 546 | (3) This section does not prohibit an appraisal management |
| 547 | company from requesting that an appraiser: |
| 548 | (a) Provide additional information about the basis of a |
| 549 | valuation; or |
| 550 | (b) Correct objective factual errors in an appraisal |
| 551 | report. |
| 552 | Section 6. Section 475.626, Florida Statutes, is amended |
| 553 | to read: |
| 554 | 475.626 Violations and penalties.-- |
| 555 | (1) A person may not: VIOLATIONS.-- |
| 556 | (a) No person shall Operate or attempt to operate as a |
| 557 | registered trainee appraiser, a or licensed or certified |
| 558 | appraiser, or, unless exempt under s. 475.6235(1)(b), an |
| 559 | appraisal management company without being the holder of a valid |
| 560 | and current registration, license, or certification. |
| 561 | (b) No person shall Violate any lawful order or rule of |
| 562 | the board which is binding upon her or him. |
| 563 | (c) No person shall Commit any conduct or practice set |
| 564 | forth in s. 475.624(1) or (2). |
| 565 | (d) No person shall Make any false affidavit or |
| 566 | affirmation intended for use as evidence by or before the board |
| 567 | or any member thereof, or by any of its authorized |
| 568 | representatives, nor may shall any person give false testimony |
| 569 | under oath or affirmation to or before the board or any member |
| 570 | thereof in any proceeding authorized by this section. |
| 571 | (e) No person shall Fail or refuse to appear at the time |
| 572 | and place designated in a subpoena issued with respect to a |
| 573 | violation of this section, unless such failure to appear is the |
| 574 | result of facts or circumstances that are sufficient to excuse |
| 575 | appearance in response to a subpoena from the circuit court; nor |
| 576 | may shall a person who is present before the board or a member |
| 577 | thereof or one of its authorized representatives acting under |
| 578 | authority of this section refuse to be sworn or to affirm or |
| 579 | fail or refuse to answer fully any question propounded by the |
| 580 | board, the member, or such representative, or by any person by |
| 581 | the authority of such officer or appointee. |
| 582 | (f) No person shall Obstruct or hinder in any manner the |
| 583 | enforcement of this section or the performance of any lawful |
| 584 | duty by any person acting under the authority of this section, |
| 585 | or interfere with, intimidate, or offer any bribe to any member |
| 586 | of the board or any of its employees or any person who is, or is |
| 587 | expected to be, a witness in any investigation or proceeding |
| 588 | relating to a violation of this section. |
| 589 | (g) No person shall Knowingly conceal any information |
| 590 | relating to violations of this section. |
| 591 | (2) A PENALTIES.--Any person who violates any provision of |
| 592 | the provisions of subsection (1) commits is guilty of a |
| 593 | misdemeanor of the second degree, punishable as provided in s. |
| 594 | 775.082 or s. 775.083, except when a different punishment is |
| 595 | prescribed by this section. Nothing in This section does not |
| 596 | shall prohibit the prosecution under any other criminal statute |
| 597 | of this state of any person for an act or conduct prohibited by |
| 598 | this section; however, in such cases, the state may prosecute |
| 599 | under this section or under such other statute, or may charge |
| 600 | both offenses in one prosecution, but the sentence imposed shall |
| 601 | not be a greater fine or longer sentence than that prescribed |
| 602 | for the offense which carries the more severe penalties. A civil |
| 603 | case, a criminal case, or a denial, revocation, or suspension |
| 604 | proceeding may arise out of the same alleged state of facts, and |
| 605 | the pendency or result of one such case or proceeding shall not |
| 606 | stay or control the result of either of the others. |
| 607 | Section 7. Section 475.629, Florida Statutes, is amended |
| 608 | to read: |
| 609 | 475.629 Retention of records.--An appraiser registered, |
| 610 | licensed, or certified under this part or an appraisal |
| 611 | management company registered under this part shall retain, for |
| 612 | at least 5 years or the period specified in the Uniform |
| 613 | Standards of Professional Appraisal Practice, whichever is |
| 614 | greater, original or true copies of any contracts engaging the |
| 615 | appraiser's or appraisal management company's services, |
| 616 | appraisal reports, and supporting data assembled and formulated |
| 617 | by the appraiser or company in preparing appraisal reports or |
| 618 | engaging in appraisal management services. Except as otherwise |
| 619 | specified in the Uniform Standards of Professional Appraisal |
| 620 | Practice, the period for retention of the records applicable to |
| 621 | each engagement of the services of the appraiser or appraisal |
| 622 | management company runs from the date of the submission of the |
| 623 | appraisal report to the client. These records must be made |
| 624 | available by the appraiser or appraisal management company for |
| 625 | inspection and copying by the department upon on reasonable |
| 626 | notice to the appraiser or company. If an appraisal has been the |
| 627 | subject of or has served as evidence for litigation, reports and |
| 628 | records must be retained for at least 2 years after the trial or |
| 629 | the period specified in the Uniform Standards of Professional |
| 630 | Appraisal Practice, whichever is greater. |
| 631 | Section 8. This act shall take effect July 1, 2010. |
