Bill Text: FL S0716 | 2017 | Regular Session | Comm Sub


Bill Title: Real Estate Appraisers

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Introduced - Dead) 2017-04-26 - Laid on Table, companion bill(s) passed, see CS/CS/HB 927 (Ch. 2017-30) [S0716 Detail]

Download: Florida-2017-S0716-Comm_Sub.html
       Florida Senate - 2017                       CS for CS for SB 716
       
       
        
       By the Committees on Appropriations; and Regulated Industries;
       and Senator Passidomo
       
       
       
       
       576-03766-17                                           2017716c2
    1                        A bill to be entitled                      
    2         An act relating to real estate appraisers; amending s.
    3         475.451, F.S.; revising authorized methods of
    4         instruction and certain requirements for specified
    5         real estate practice courses; amending s. 475.611,
    6         F.S.; defining and redefining terms; amending s.
    7         475.612, F.S.; authorizing appraisers to perform real
    8         property evaluations in connection with certain
    9         federally regulated transactions; requiring such
   10         appraisers to comply with certain standards; requiring
   11         the Florida Real Estate Appraisal Board to adopt
   12         rules; providing construction; repealing s. 475.6175,
   13         F.S., relating to registered trainee appraisers;
   14         amending s. 475.621, F.S.; requiring the Department of
   15         Business and Professional Regulation to transmit a
   16         specified roster to a certain appraisal subcommittee;
   17         requiring the department to collect an annual fee from
   18         certain appraisal management companies and transmit
   19         the fee to such appraisal subcommittee; requiring the
   20         board to establish a certain procedure and adopt
   21         rules; amending s. 475.6235, F.S.; deleting an
   22         exception by which the board may grant a registration
   23         to a person otherwise deemed not qualified; revising
   24         applicability; amending s. 475.6245, F.S.; authorizing
   25         the board to deny an application for renewal of an
   26         appraisal management company’s registration on
   27         specified grounds; adding certain grounds for
   28         discipline by the board against appraisal management
   29         companies; reenacting s. 475.626(1)(b), F.S., relating
   30         to violations and penalties, to incorporate the
   31         amendment made to s. 475.6245, F.S., in a reference
   32         thereto; amending s. 475.628, F.S.; authorizing the
   33         board to adopt rules establishing certain standards of
   34         practice for nonfederally related transactions;
   35         providing requirements and construction for such
   36         standards; reenacting s. 475.629, F.S., relating to
   37         retention of records, to incorporate the amendment
   38         made by the act to s. 475.611, F.S., in a reference
   39         thereto; providing an effective date.
   40          
   41  Be It Enacted by the Legislature of the State of Florida:
   42  
   43         Section 1. Subsection (6) of section 475.451, Florida
   44  Statutes, is amended to read:
   45         475.451 Schools teaching real estate practice.—
   46         (6) Any course prescribed by the commission as a condition
   47  precedent to a person any person’s becoming initially licensed
   48  as a sales associate or broker may be taught by a in any real
   49  estate school in a classroom or via distance learning pursuant
   50  to s. 475.17(2) through the use of a video tape of instruction
   51  by a currently permitted instructor from any such school or may
   52  be taught by distance learning pursuant to s. 475.17(2). The
   53  commission may require that any such video tape course have a
   54  single session of live instruction by a currently permitted
   55  instructor from any such school; however, this requirement shall
   56  not exceed 3 classroom hours. All other prescribed courses,
   57  except the continuing education course required by s. 475.182,
   58  shall be taught by a currently permitted school instructor
   59  personally in attendance at such course or by distance learning
   60  pursuant to s. 475.17. The continuing education course required
   61  by s. 475.182 may be taught by distance learning pursuant to s.
   62  475.17 or by an equivalent correspondence course; however, any
   63  such correspondence course shall be required to have a final
   64  examination, prepared and administered by the school or course
   65  provider issuing the correspondence course. The continuing
   66  education requirements provided in this chapter do not apply to
   67  an attorney who is otherwise qualified under this chapter and
   68  who is a member in good standing of The Florida Bar.
   69         Section 2. Subsections (1) and (2) of section 475.611,
   70  Florida Statutes, are amended to read:
   71         475.611 Definitions.—
   72         (1) As used in this part, the term:
   73         (a) “Appraisal” or “appraisal services” means the services
   74  provided by certified or licensed appraisers or registered
   75  trainee appraisers, and includes:
   76         1. “Appraisal assignment” denotes an engagement for which a
   77  person is employed or retained to act, or could be perceived by
   78  third parties or the public as acting, as an agent or a
   79  disinterested third party in rendering an unbiased analysis,
   80  opinion, review, or conclusion relating to the nature, quality,
   81  value, or utility of specified interests in, or aspects of,
   82  identified real property.
   83         2. “Analysis assignment” denotes appraisal services that
   84  relate to the employer’s or client’s individual needs or
   85  investment objectives and includes specialized marketing,
   86  financing, and feasibility studies as well as analyses,
   87  opinions, and conclusions given in connection with activities
   88  such as real estate brokerage, mortgage banking, real estate
   89  counseling, or real estate consulting.
   90         3. “Appraisal review assignment” denotes an engagement for
   91  which an appraiser is employed or retained to develop and
   92  communicate an opinion about the quality of another appraiser’s
   93  appraisal, appraisal report, or work. An appraisal review may or
   94  may not contain the reviewing appraiser’s opinion of value.
   95         (b) “Appraisal Foundation” or “foundation” means The
   96  Appraisal Foundation established on November 20, 1987, as a not
   97  for-profit corporation under the laws of Illinois.
   98         (c) “Appraisal management company” means a person who,
   99  within a 12-month period, oversees an appraiser panel of more
  100  than 15 state-certified or state-licensed appraisers in a state
  101  or 25 or more state-certified or state-licensed appraisers in
  102  two or more states, and who performs appraisal management
  103  services regardless of the use of the term “appraisal management
  104  company,” “appraiser cooperative,” “appraiser portal,” “mortgage
  105  technology company,” or other term.
  106         (d) “Appraisal management services” means the coordination
  107  or management of appraisal services for compensation by:
  108         1. Employing, contracting with, or otherwise retaining one
  109  or more licensed or certified appraisers to perform appraisal
  110  services for a client; or
  111         2. Acting as a broker or intermediary between a client and
  112  one or more licensed or certified appraisers to facilitate the
  113  client’s employing, contracting with, or otherwise retaining the
  114  appraisers.
  115         (e) “Appraisal report” means any communication, written or
  116  oral, of an appraisal, appraisal review, appraisal consulting
  117  service, analysis, opinion, or conclusion relating to the
  118  nature, quality, value, or utility of a specified interest in,
  119  or aspect of, identified real property, and includes any report
  120  communicating an appraisal analysis, opinion, or conclusion of
  121  value, regardless of title. However, in order to be recognized
  122  in a federally related transaction, an appraisal report must be
  123  written.
  124         (f) “Appraisal review” means the act or process of
  125  developing and communicating an opinion about the quality of
  126  another appraiser’s appraisal, appraisal report, or work.
  127         (g) “Appraisal subcommittee” means the designees of the
  128  heads of the federal financial institutions regulatory agencies
  129  established by the Federal Financial Institutions Examination
  130  Council Act of 1978 (12 U.S.C. ss. 3301 et seq.), as amended.
  131         (h) “Appraiser” means any person who is a registered
  132  trainee real estate appraiser, a licensed real estate appraiser,
  133  or a certified real estate appraiser. An appraiser renders a
  134  professional service and is a professional within the meaning of
  135  s. 95.11(4)(a).
  136         (i) “Appraiser panel” means a network, list, or roster of
  137  licensed or certified appraisers approved by an appraisal
  138  management company to perform appraisals as independent
  139  contractors for the appraisal management company. An appraiser
  140  is an independent contractor for purposes of this paragraph if
  141  the appraiser is treated as an independent contractor by the
  142  appraisal management company for federal income tax purposes.
  143  The term “appraiser panel” includes:
  144         1.Appraisers accepted by the appraisal management company
  145  for consideration for future appraisal assignments in covered
  146  transactions or secondary mortgage market participants in
  147  connection with covered transactions.
  148         2.Appraisers employed by, contracted with, or otherwise
  149  retained by the appraisal management company to perform one or
  150  more appraisals in covered transactions or for secondary
  151  mortgage market participants in connection with covered
  152  transactions group of appraisers selected by an appraisal
  153  management company to perform appraisal services for clients on
  154  behalf of the company.
  155         (j) “Board” means the Florida Real Estate Appraisal Board
  156  established under this section.
  157         (k) “Certified general appraiser” means a person who is
  158  certified by the department as qualified to issue appraisal
  159  reports for any type of real property.
  160         (l) “Certified residential appraiser” means a person who is
  161  certified by the department as qualified to issue appraisal
  162  reports for residential real property of one to four residential
  163  units, without regard to transaction value or complexity, or
  164  real property as may be authorized by federal regulation.
  165         (m) “Client” means a person who contracts with an appraiser
  166  or appraisal management company for the performance of appraisal
  167  services.
  168         (n) “Covered transaction” means a consumer credit
  169  transaction secured by the consumer’s principal dwelling.
  170         (o)(n) “Department” means the Department of Business and
  171  Professional Regulation.
  172         (p)(o) “Direct supervision” means the degree of supervision
  173  required of a supervisory appraiser overseeing the work of a
  174  registered trainee appraiser by which the supervisory appraiser
  175  has control over and detailed professional knowledge of the work
  176  being done. Direct supervision is achieved when a registered
  177  trainee appraiser has regular direction, guidance, and support
  178  from a supervisory appraiser who has the competencies as
  179  determined by rule of the board.
  180         (q) “Evaluation” means a valuation permitted by any
  181  appraisal regulation of a federal financial institutions
  182  regulatory agency for transactions that do not require an
  183  appraisal because they qualify for an applicable exemption under
  184  federal law. The board shall adopt rules, as necessary, to
  185  define evaluations and the applicable exemptions under federal
  186  law.
  187         (r) “Federally regulated appraisal management company”
  188  means an appraisal management company that is owned and
  189  controlled by an insured depository institution, as defined in
  190  12 U.S.C. s. 1813, and regulated by the Office of the
  191  Comptroller of the Currency, the Board of Governors of the
  192  Federal Reserve System, or the Federal Deposit Insurance
  193  Corporation.
  194         (s)(p) “Federally related transaction” means any real
  195  estate-related financial transaction which a federal financial
  196  institutions regulatory agency or the Resolution Trust
  197  Corporation engages in, contracts for, or regulates, and which
  198  requires the services of a state-licensed or state-certified
  199  appraiser.
  200         (t)(q) “Licensed appraiser” means a person who is licensed
  201  by the department as qualified to issue appraisal reports for
  202  residential real property of one to four residential units or on
  203  such real estate or real property as may be authorized by
  204  federal regulation. After July 1, 2003, the department shall not
  205  issue licenses for the category of licensed appraiser.
  206         (u) “Order file” means the documentation necessary to
  207  support the performance of appraisal management services.
  208         (v)(r) “Registered trainee appraiser” means a person who is
  209  registered with the department as qualified to perform appraisal
  210  services only under the direct supervision of a certified
  211  appraiser. A registered trainee appraiser may accept appraisal
  212  assignments only from her or his primary or secondary
  213  supervisory appraiser.
  214         (w) “Secondary mortgage market participant” means a
  215  guarantor, insurer, underwriter, or issuer of mortgage-backed
  216  securities. The term includes an individual investor in a
  217  mortgage-backed security only if such investor also serves in
  218  the capacity of a guarantor, an insurer, an underwriter, or an
  219  issuer for the mortgage-backed security.
  220         (x)(s) “Signature” means personalized evidence indicating
  221  authentication of work performed by an appraiser and the
  222  acceptance of responsibility for the content of an appraisal,
  223  appraisal review, or appraisal consulting service or conclusions
  224  in an appraisal report.
  225         (y)(t) “Subsidiary” means an organization that is owned and
  226  controlled by a financial institution that is regulated by a
  227  federal financial institution regulatory agency.
  228         (z)(u) “Supervisory appraiser” means a certified
  229  residential appraiser or a certified general appraiser
  230  responsible for the direct supervision of one or more registered
  231  trainee appraisers and fully responsible for appraisals and
  232  appraisal reports prepared by those registered trainee
  233  appraisers. The board, by rule, shall determine the
  234  responsibilities of a supervisory appraiser, the geographic
  235  proximity required, the minimum qualifications and standards
  236  required of a certified appraiser before she or he may act in
  237  the capacity of a supervisory appraiser, and the maximum number
  238  of registered trainee appraisers to be supervised by an
  239  individual supervisory appraiser.
  240         (aa)(v) “Training” means the process of providing for and
  241  making available to a registered trainee appraiser, under direct
  242  supervision, a planned, prepared, and coordinated program, or
  243  routine of instruction and education, in appraisal professional
  244  and technical appraisal skills as determined by rule of the
  245  board.
  246         (bb)(w) “Uniform Standards of Professional Appraisal
  247  Practice” means the most recent standards approved and adopted
  248  by the Appraisal Standards Board of The Appraisal Foundation.
  249         (cc)(x) “Valuation services” means services pertaining to
  250  aspects of property value and includes such services performed
  251  by certified appraisers, registered trainee appraisers, and
  252  others.
  253         (dd)(y) “Work file” means the documentation necessary to
  254  support an appraiser’s analysis, opinions, and conclusions.
  255         (2) Wherever the word “operate” or “operating” appears in
  256  this part with respect to a registered trainee appraiser,
  257  registered appraisal management company, licensed appraiser, or
  258  certified appraiser; in any order, rule, or regulation of the
  259  board; in any pleading, indictment, or information under this
  260  part; in any court action or proceeding; or in any order or
  261  judgment of a court, it shall be deemed to mean the commission
  262  of one or more acts described in this part as constituting or
  263  defining a registered trainee appraiser, registered appraisal
  264  management company, licensed appraiser, or certified appraiser,
  265  not including, however, any of the exceptions stated therein. A
  266  single act is sufficient to bring a person within the meaning of
  267  this subsection, and each act, if prohibited herein, constitutes
  268  a separate offense.
  269         Section 3. Subsection (7) is added to section 475.612,
  270  Florida Statutes, to read:
  271         475.612 Certification, licensure, or registration
  272  required.—
  273         (7) Notwithstanding any other law, an appraiser may perform
  274  an evaluation of real property in connection with a real estate
  275  related financial transaction, as defined by rule of the board,
  276  where the transaction is regulated by a federal financial
  277  institutions regulatory agency. The appraiser shall comply with
  278  the standards for evaluations imposed by the federal financial
  279  institutions regulatory agency and other standards as prescribed
  280  by the board. However, in no event may an evaluation be referred
  281  to or construed as an appraisal.
  282         Section 4. Section 475.6175, Florida Statutes, is repealed.
  283         Section 5. Section 475.621, Florida Statutes, is amended to
  284  read:
  285         475.621 Registry of licensed and certified appraisers;
  286  registry of appraisal management companies.—
  287         (1) The department shall transmit to the appraisal
  288  subcommittee, at least no less than annually, a roster listing
  289  individuals who hold a valid state license or certification as
  290  an appraiser. The department shall transmit to the appraisal
  291  subcommittee, at least annually, a roster listing individuals or
  292  companies that hold a valid state registration as an appraisal
  293  management company.
  294         (2) The department shall collect from such individuals who
  295  perform or seek to perform appraisals in federally related
  296  transactions, an annual fee as set by rule of, and transmitted
  297  to, the appraisal subcommittee. The department shall collect
  298  from such appraisal management companies that perform or seek to
  299  perform appraisal management services in covered transactions an
  300  annual fee set by rule of the board and transmitted to the
  301  appraisal subcommittee.
  302         (3) Notwithstanding the prohibition against requiring
  303  registration of a federally regulated appraisal management
  304  company as provided in s. 475.6235(8)(b), the board shall
  305  establish a procedure to collect from a federally regulated
  306  appraisal management company an annual fee as set by rule of the
  307  board and transmitted to the appraisal subcommittee.
  308         Section 6. Subsections (5) and (8) of section 475.6235,
  309  Florida Statutes, are amended to read:
  310         475.6235 Registration of appraisal management companies
  311  required; exemptions.—
  312         (5) Each person listed in paragraph (2)(f) must be
  313  competent and qualified to engage in appraisal management
  314  services with safety to the general public and those with whom
  315  the person may undertake a relationship of trust and confidence.
  316  If any person listed in paragraph (2)(f) has been denied
  317  registration, licensure, or certification as an appraiser or has
  318  been disbarred, or if the person’s registration, license, or
  319  certificate to practice or conduct any regulated profession,
  320  business, or vocation has been revoked or suspended by this or
  321  any other state, any nation, any possession or district of the
  322  United States, or any court or lawful agency thereof because of
  323  any conduct or practices that would have warranted a like result
  324  under this part, or if the person has been guilty of conduct or
  325  practices in this state or elsewhere that would have been
  326  grounds for disciplining her or his registration, license, or
  327  certification under this part had the person then been a
  328  registered trainee appraiser or a licensed or certified
  329  appraiser, the person is shall be deemed not to be qualified to
  330  be registered unless, because of lapse of time and subsequent
  331  good conduct and reputation, or other reason deemed sufficient,
  332  it appears to the board that the interest of the public is not
  333  likely to be endangered by the granting of registration.
  334         (8) This section does not apply to:
  335         (a) A financial institution, as defined in s. 655.005,
  336  which owns and operates an internal appraisal office, business
  337  unit, or department; or
  338         (b) A federally regulated An appraisal management company
  339  that is a subsidiary owned and controlled by a financial
  340  institution, as defined in s. 655.005, that is regulated by a
  341  federal financial institution regulatory agency.
  342         Section 7. Subsection (1) of section 475.6245, Florida
  343  Statutes, is amended to read:
  344         475.6245 Discipline of appraisal management companies.—
  345         (1) The board may deny an application for registration or
  346  renewal registration of an appraisal management company; may
  347  investigate the actions of any appraisal management company
  348  registered under this part; may reprimand or impose an
  349  administrative fine not to exceed $5,000 for each count or
  350  separate offense against any such appraisal management company;
  351  and may revoke or suspend, for a period not to exceed 10 years,
  352  the registration of any such appraisal management company, or
  353  place any such appraisal management company on probation, if the
  354  board finds that the appraisal management company or any person
  355  listed in s. 475.6235(2)(f):
  356         (a) Has violated any provision of this part or s.
  357  455.227(1); however, any appraisal management company registered
  358  under this part is exempt from s. 455.227(1)(i).
  359         (b) Has been guilty of fraud, misrepresentation,
  360  concealment, false promises, false pretenses, dishonest conduct,
  361  culpable negligence, or breach of trust in any business
  362  transaction in this state or any other state, nation, or
  363  territory; has violated a duty imposed upon her or him by law or
  364  by the terms of a contract, whether written, oral, express, or
  365  implied, in an appraisal assignment; has aided, assisted, or
  366  conspired with any other person engaged in any such misconduct
  367  and in furtherance thereof; or has formed an intent, design, or
  368  scheme to engage in such misconduct and committed an overt act
  369  in furtherance of such intent, design, or scheme. It is
  370  immaterial to the guilt of the appraisal management company that
  371  the victim or intended victim of the misconduct has sustained no
  372  damage or loss; that the damage or loss has been settled and
  373  paid after discovery of the misconduct; or that such victim or
  374  intended victim was a customer or a person in confidential
  375  relation with the appraisal management company or was an
  376  identified member of the general public.
  377         (c) Has advertised services in a manner that is fraudulent,
  378  false, deceptive, or misleading in form or content.
  379         (d) Has violated any provision of this part or any lawful
  380  order or rule issued under this part or chapter 455.
  381         (e) Has been convicted or found guilty of, or entered a
  382  plea of nolo contendere to, regardless of adjudication, a crime
  383  in any jurisdiction that directly relates to the activities of
  384  an appraisal management company or that involves moral turpitude
  385  or fraudulent or dishonest conduct. The record of a conviction
  386  certified or authenticated in such form as admissible in
  387  evidence under the laws of the state shall be admissible as
  388  prima facie evidence of such guilt.
  389         (f) Has had a registration, license, or certification as an
  390  appraiser or a registration as an appraisal management company
  391  revoked, suspended, or otherwise acted against; has been
  392  disbarred; has had her or his registration, license, or
  393  certificate to practice or conduct any regulated profession,
  394  business, or vocation revoked or suspended by this or any other
  395  state, any nation, or any possession or district of the United
  396  States; or has had an application for such registration,
  397  licensure, or certification to practice or conduct any regulated
  398  profession, business, or vocation denied by this or any other
  399  state, any nation, or any possession or district of the United
  400  States.
  401         (g) Has become temporarily incapacitated from acting as an
  402  appraisal management company with safety to those in a fiduciary
  403  relationship with her or him because of drunkenness, use of
  404  drugs, or temporary mental derangement; however, suspension of a
  405  registration in such cases shall only be for the period of such
  406  incapacity.
  407         (h) Is confined in any county jail, postadjudication; is
  408  confined in any state or federal prison or mental institution;
  409  or, through mental disease or deterioration, can no longer
  410  safely be entrusted to deal with the public or in a confidential
  411  capacity.
  412         (i) Has failed to inform the board in writing within 30
  413  days after pleading guilty or nolo contendere to, or being
  414  convicted or found guilty of, any felony.
  415         (j) Has been found guilty, for a second time, of any
  416  misconduct that warrants disciplinary action, or has been found
  417  guilty of a course of conduct or practice that shows that she or
  418  he is incompetent, negligent, dishonest, or untruthful to an
  419  extent that those with whom she or he may sustain a confidential
  420  relationship may not safely do so.
  421         (k) Has made or filed a report or record, either written or
  422  oral, that the appraisal management company knows to be false;
  423  has willfully failed to file a report or record required by
  424  state or federal law; has willfully impeded or obstructed such
  425  filing; or has induced another person to impede or obstruct such
  426  filing. However, such reports or records shall include only
  427  those that are signed or presented in the capacity of an
  428  appraisal management company.
  429         (l) Has obtained or attempted to obtain a registration,
  430  license, or certification by means of knowingly making a false
  431  statement, submitting false information, refusing to provide
  432  complete information in response to an application question, or
  433  engaging in fraud, misrepresentation, or concealment.
  434         (m) Has paid money or other valuable consideration, except
  435  as required by this section, to any member or employee of the
  436  board to obtain a registration, license, or certification under
  437  this section.
  438         (n) Has instructed an appraiser to violate any standard of
  439  professional practice established by rule of the board,
  440  including standards for the development or communication of a
  441  real estate appraisal or other provision of the Uniform
  442  Standards of Professional Appraisal Practice.
  443         (o) Has engaged in the development of an appraisal or the
  444  preparation of an appraisal report, unless the appraisal
  445  management company is owned or controlled by certified
  446  appraisers.
  447         (p) Has failed to communicate an appraisal without good
  448  cause.
  449         (q) Has accepted an appraisal assignment if the employment
  450  itself is contingent upon the appraisal management company
  451  reporting a predetermined result, analysis, or opinion or if the
  452  fee to be paid for the performance of the appraisal assignment
  453  is contingent upon the opinion, conclusion, or valuation reached
  454  upon the consequences resulting from the appraisal assignment.
  455         (r) Has failed to timely notify the department of any
  456  change in principal business location as an appraisal management
  457  company.
  458         (s) Has influenced or attempted to influence the
  459  development, reporting, or review of an appraisal through
  460  coercion, extortion, collusion, compensation, inducement,
  461  intimidation, bribery, or any other means, including, but not
  462  limited to:
  463         1. Withholding or threatening to withhold timely payment
  464  for an appraisal, unless such nonpayment is based upon specific
  465  quality or other service issues that constitute noncompliance
  466  with the appraisal engagement agreement.
  467         2. Withholding or threatening to withhold future business
  468  from an appraiser.
  469         3. Promising future business, promotions, or increased
  470  compensation for an appraiser, whether the promise is express or
  471  implied.
  472         4. Conditioning a request for appraisal services or the
  473  payment of an appraisal fee, salary, or bonus upon the opinion,
  474  conclusion, or valuation to be reached or upon a preliminary
  475  estimate or opinion requested from an appraiser.
  476         5. Requesting that an appraiser provide an estimated,
  477  predetermined, or desired valuation in an appraisal report or
  478  provide estimated values or comparable sales at any time before
  479  the appraiser’s completion of appraisal services.
  480         6. Providing to an appraiser an anticipated, estimated,
  481  encouraged, or desired value for a subject property or a
  482  proposed or target amount to be loaned to the borrower, except
  483  that a copy of the sales contract for purchase transactions may
  484  be provided.
  485         7. Providing to an appraiser, or any person related to the
  486  appraiser, stock or other financial or nonfinancial benefits.
  487         8. Allowing the removal of an appraiser from an appraiser
  488  panel without prior written notice to the appraiser.
  489         9. Obtaining, using, or paying for a second or subsequent
  490  appraisal or ordering an automated valuation model in connection
  491  with a mortgage financing transaction unless there is a
  492  reasonable basis to believe that the initial appraisal was
  493  flawed or tainted and such basis is clearly and appropriately
  494  noted in the loan file, or unless such appraisal or automated
  495  valuation model is issued pursuant to a bona fide prefunding or
  496  postfunding appraisal review or quality control process.
  497         10. Any other act or practice that impairs or attempts to
  498  impair an appraiser’s independence, objectivity, or
  499  impartiality.
  500         (t) Has altered, modified, or otherwise changed a completed
  501  appraisal report submitted by an appraiser to an appraisal
  502  management company.
  503         (u) Has employed, contracted with, or otherwise retained an
  504  appraiser whose registration, license, or certification is
  505  suspended or revoked to perform appraisal services or appraisal
  506  management services.
  507         (v) Has required or attempted to require an appraiser to
  508  sign any indemnification agreement that would require the
  509  appraiser to hold harmless the appraisal management company or
  510  its owners, agents, employees, or independent contractors from
  511  any liability, damage, loss, or claim arising from the services
  512  performed by the appraisal management company or its owners,
  513  agents, employees, or independent contractors and not the
  514  services performed by the appraiser.
  515         (w)Has required or attempted to require a client to sign
  516  any agreement that would require the client to hold harmless the
  517  appraisal management company or its owners, agents, or employees
  518  from any liability, damage, loss, or claim arising from the
  519  services performed by the appraiser.
  520         Section 8. For the purpose of incorporating the amendment
  521  made by this act to section 475.6245, Florida Statutes, in a
  522  reference thereto, paragraph (b) of subsection (1) of section
  523  475.626, Florida Statutes, is reenacted to read:
  524         475.626 Violations and penalties.—
  525         (1) A person may not:
  526         (b) If an appraisal management company, commit any conduct
  527  or practice set forth in s. 475.6245.
  528         Section 9. Section 475.628, Florida Statutes, is amended to
  529  read:
  530         475.628 Professional standards for appraisers registered,
  531  licensed, or certified under this part.—
  532         (1) The board shall adopt rules establishing standards of
  533  professional practice which meet or exceed nationally recognized
  534  standards of appraisal practice, including standards adopted by
  535  the Appraisal Standards Board of the Appraisal Foundation. Each
  536  appraiser registered, licensed, or certified under this part
  537  must comply with the rules. Statements on appraisal standards
  538  which may be issued for the purpose of clarification,
  539  interpretation, explanation, or elaboration through the
  540  Appraisal Foundation are binding on any appraiser registered,
  541  licensed, or certified under this part, upon adoption by rule of
  542  the board.
  543         (2) The board may adopt rules establishing standards of
  544  practice, other than standards adopted by the Appraisal
  545  Standards Board of the Appraisal Foundation, for nonfederally
  546  related transactions. The board shall require that an appraiser,
  547  when performing an appraisal or appraisal service for any
  548  purpose other than a federally related transaction, must also
  549  comply with the Ethics and Competency Rules of the standards
  550  adopted by the Appraisal Standards Board of the Appraisal
  551  Foundation and other requirements as determined by rule of the
  552  board. Assignments completed using alternate standards do not
  553  satisfy the experience requirements of s. 475.617 unless those
  554  assignments comply with the standards adopted by the Appraisal
  555  Standards Board of the Appraisal Foundation.
  556         Section 10. For the purpose of incorporating the amendment
  557  made by this act to section 475.611, Florida Statutes, in a
  558  reference thereto, section 475.629, Florida Statutes, is
  559  reenacted to read:
  560         475.629 Retention of records.—An appraiser registered,
  561  licensed, or certified under this part shall prepare and retain
  562  a work file for each appraisal, appraisal review, or appraisal
  563  consulting assignment. An appraisal management company
  564  registered under this part shall prepare and retain an order
  565  file for each appraisal, appraisal review, or appraisal
  566  consulting assignment. The work file and the order file shall be
  567  retained for 5 years or the period specified in the Uniform
  568  Standards of Professional Appraisal Practice, whichever is
  569  greater. The work file must contain original or true copies of
  570  any contracts engaging the appraiser’s or appraisal management
  571  company’s services, appraisal reports, and supporting data
  572  assembled and formulated by the appraiser or company in
  573  preparing appraisal reports or engaging in appraisal management
  574  services and all other data, information, and documentation
  575  required by the standards for the development or communication
  576  of a real estate appraisal as approved and adopted by the
  577  Appraisal Standards Board of The Appraisal Foundation, as
  578  established by rule of the board. The order file must contain
  579  original or true copies of any contracts engaging the
  580  appraiser’s services, the appraisal reports, any engagement
  581  materials or instructions from the client, and all other
  582  documents required by the standards for the development or
  583  communication of a real estate appraisal as approved and adopted
  584  by the Appraisal Standards Board of The Appraisal Foundation, as
  585  established by rule of the board. Notwithstanding the foregoing,
  586  while general contracts and materials pertaining to impaneling
  587  of an appraiser by an appraisal management company shall be
  588  retained under this section, such contracts and materials are
  589  not required to be maintained within the order file. Except as
  590  otherwise specified in the Uniform Standards of Professional
  591  Appraisal Practice, the period for retention of the records
  592  applicable to each engagement of the services of the appraiser
  593  or appraisal management company runs from the date of the
  594  submission of the appraisal report to the client. Appraisal
  595  management companies shall also retain the company accounts,
  596  correspondence, memoranda, papers, books, and other records in
  597  accordance with administrative rules adopted by the board. These
  598  records must be made available by the appraiser or appraisal
  599  management company for inspection and copying by the department
  600  upon reasonable notice to the appraiser or company. If an
  601  appraisal has been the subject of or has served as evidence for
  602  litigation, reports and records must be retained for at least 2
  603  years after the trial or the period specified in the Uniform
  604  Standards of Professional Appraisal Practice, whichever is
  605  greater.
  606         Section 11. This act shall take effect October 1, 2017.

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