Bill Text: MS SB2940 | 2011 | Regular Session | Introduced
Bill Title: Real Estate Appraisers Licensing and Certification Act; revise to place appraisal management companies under the authority of.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2011-02-01 - Died In Committee [SB2940 Detail]
Download: Mississippi-2011-SB2940-Introduced.html
MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Business and Financial Institutions
By: Senator(s) Stone
Senate Bill 2940
AN ACT TO PLACE APPRAISAL MANAGEMENT COMPANIES UNDER THE AUTHORITY OF THE REAL ESTATE APPRAISERS LICENSING AND CERTIFICATION ACT; TO REQUIRE THOSE COMPANIES TO REGISTER WITH THE BOARD OF REAL ESTATE APPRAISERS BEFORE ENGAGING IN THE BUSINESS OF REAL ESTATE MANAGEMENT; TO PROVIDE FOR THE MINIMUM REGISTRATION REQUIREMENTS; TO REQUIRE EACH COMPANY APPLYING FOR REGISTRATION TO SUBMIT AN IRREVOCABLE UNIFORM CONSENT TO SERVICE OF PROCESS DESIGNATING THE SECRETARY OF STATE AS THE AGENT TO RECEIVE SERVICE OF PROCESS FOR THE COMPANY; TO PRESCRIBE THE REQUIREMENTS OF OWNERS, CONTROLLING PERSONS AND EMPLOYEES OF AN APPRAISAL MANAGEMENT COMPANY; TO PLACE CERTAIN RESTRICTIONS ON THE AUTHORITY OF AN APPRAISAL MANAGEMENT COMPANY TO CONTRACT WITH INDEPENDENT APPRAISERS; TO REQUIRE THOSE COMPANIES TO CERTIFY ANNUALLY TO THE BOARD ITS SYSTEM OF VERIFICATION FOR ADDITIONS TO ITS APPRAISAL PANEL AND REVIEW OF WORK DONE BY INDEPENDENT APPRAISERS; TO REQUIRE DISCLOSURE TO THE BOARD, AS PART OF REGISTRATION, ANY USE OF AN APPRAISAL FEE SCHEDULE; TO MAKE IT UNLAWFUL FOR ANY PERSON TO INFLUENCE THE DEVELOPMENT, REPORTING OR REVIEW OF AN APPRAISAL; TO REQUIRE APPRAISAL MANAGEMENT COMPANIES TO MAKE PAYMENT TO INDEPENDENT APPRAISERS FOR THE COMPLETION OF AN APPRAISAL WITHIN SIXTY DAYS OF RECEIVING THE COMPLETED APPRAISAL; TO PROHIBIT THE REMOVAL OF AN INDEPENDENT APPRAISER FROM THE APPRAISAL PANEL OF A COMPANY WITHIN THE FIRST THIRTY DAYS OF BEING ADDED TO AN APPRAISAL PANEL; TO PROVIDE DUE PROCESS TO INDEPENDENT APPRAISERS REMOVED FROM AN APPRAISAL PANEL FOR MISCONDUCT AND CERTAIN OTHER VIOLATIONS; TO AMEND SECTIONS 73-34-3, 73-34-9, 73-34-13, 73-34-25, 73-34-27, 73-34-29, 73-34-35, 73-34-41, 73-34-43, 73-34-45, 73-34-49 AND 73-34-53, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 73-34-3, Mississippi Code of 1972, is amended as follows:
73-34-3. As used in this chapter, the following terms and phrases shall have the following meanings unless the context clearly indicates otherwise:
(a) "Appraisal" means an analysis, opinion or conclusion prepared by a real estate appraiser relating to the nature, quality, value or utility of specified interests in, or aspects of, identified real estate or identified real property. An appraisal may be classified by the nature of the assignment into either a valuation assignment or an evaluation assignment. The term "valuation assignment" means an analysis, opinion or conclusion prepared by a real estate appraiser that estimates the value of an identified parcel of real estate or identified real property at a particular point in time. The term "evaluation assignment" means an analysis, opinion or conclusion prepared by a real estate appraiser that relates to the nature, quality or utility of identified real estate or identified real property.
(b) "Appraisal report" means any communication, written or oral, of an appraisal. For the purposes of this chapter, the testimony of an appraiser dealing with the appraiser's analyses, conclusions or opinions concerning identified real property is deemed to be an oral appraisal report.
(c) "Board" means the Mississippi Real Estate Appraiser Licensing and Certification Board that is established under the provisions of this chapter.
(d) "Certified appraisal report" means an appraisal report given or signed and certified as such by a state certified real estate appraiser. When a state certified real estate appraiser identifies an appraisal report as "certified," such state certified real estate appraiser must indicate which type of certification he holds. The certification of an appraisal report by a state certified real estate appraiser represents to the public that it meets the appraisal standards established under this chapter.
(e) "Commission" means the Mississippi Real Estate Commission as established under Section 73-35-5, Mississippi Code of 1972.
(f) "Licensed real estate appraiser" means a person who holds a current, valid appraisal license issued to him under the provisions of this chapter.
(g) "Real estate or real property" means an identified parcel or tract of land, with improvements, and includes easements, rights-of-way, undivided or future interest, or similar rights in a tract of land, but does not include mineral rights, timber rights, growing crops, water rights, or similar interests severable from the land when the transaction does not involve the associated parcel or tract of land.
(h) "Real estate appraisal activity" means the act or process of making an appraisal of real estate or real property and preparing an appraisal report.
(i) "Real estate appraiser" means a person who engages in real estate appraisal activity for a fee or other valuable consideration.
(j) "Real property" means one or more defined interests, benefits or rights inherent in the ownership of real estate.
(k) "State certified real estate appraiser" means a person who holds a current, valid license as a real estate appraiser issued to him under the provisions of this chapter for certified real estate appraisers.
(l) "Timberland" means forest land that is producing, or which is capable of producing, timber as a crop.
(m) "Appraisal management company" means any corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity that:
(i) Administers networks of independent contract appraisers to perform residential real estate appraisal services for clients;
(ii) Receives requests for residential real estate appraisal services from clients and, for a fee paid by the client, enters into an agreement with one or more independent appraisers to perform the residential real estate appraisal services contained in the request; or
(iii) Otherwise serves as a third-party broker of residential appraisal management services between clients and appraisers.
(n) "Appraisal management services" means the process of receiving a request for the performance of residential real estate appraisal services from a client, and for a fee paid by the client, entering into an agreement with one or more independent appraisers to perform the real estate appraisal services contained in the request.
(o) "Appraiser" means a person who provides an opinion of the market value of real property.
(p) "Appraiser fee schedule" means a list of the various real estate appraisal services requested by an appraisal management company in this state from independent appraisers and the amount that the appraisal management company is willing to pay to an independent appraiser for the performance of each of the listed real estate appraisal services.
(q) "Appraiser panel" means a group of independent appraisers that have been selected by an appraisal management company to perform residential real estate appraisal services for the appraisal management company.
(r) "Client" means any person or entity that contracts with, or otherwise enters into an agreement with, an appraisal management company for the performance of residential real estate appraisal services.
(s) "Controlling person" means:
(i) An owner, officer or director of a corporation, partnership or other business entity seeking to offer appraisal management services in this state;
(ii) An individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with clients for the performance of appraisal management services and has the authority to enter into agreements with independent appraisers for the performance of residential real estate appraisal services; or
(iii) An individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company.
(t) "Real estate appraisal services" means the practice of developing an opinion of the value of real property in conformity with the Uniform Standards for Professional Appraisal Practice.
SECTION 2. (1) It is unlawful for a person, corporation, partnership, sole proprietorship, subsidiary, unit or any other business entity to directly or indirectly engage or attempt to engage in business as an appraisal management company, or to advertise or hold itself out as engaging in or conducting business as an appraisal management company without first obtaining a registration issued by the board under the provisions of this act, regardless of the entities use of the term "appraisal management company" or any other name.
(2) The registration required by subsection (1) of this section shall, at a minimum, include the following information:
(a) Name of the entity seeking registration;
(b) Business address of the entity seeking registration;
(c) Phone contact information of the entity seeking registration;
(d) If the entity is not a corporation that is domiciled in this state, the name and contact information for the company's agent for service of process in this state; and
(e) The name, address, and contact information for any individual or any corporation, partnership, or other business entity that owns ten percent (10%) or more of the appraisal management company;
(f) The name, address, and contact information for a controlling person;
(g) A certification that the entity has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds a license in good standing in this state under the Real Estate Appraiser Licensing and Certification Act if a license or certification is required to perform appraisals, under Section 5 of this act;
(h) A certification that the entity has a system in place to review the work of all independent appraisers that are performing real estate appraisal services for the appraisal management company on a periodic basis to ensure that the real estate appraisal services are being conducted in accordance with Uniform Standards of Professional Appraisal Practice, hereinafter referred to as USPAP, under Section 5 of this act;
(i) A certification that the entity maintains a detailed record of each service request that it receives and the independent appraiser that performs the residential real estate appraisal services for the appraisal management company, under Section 5 of this act;
(j) An irrevocable uniform consent to service of Process, under Section 3 of this act; and
(k) Any other information required by the board.
(3) This provisions of this act shall not be applicable to:
(a) Any corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity that exclusively employs persons on an employer and employee basis for the performance of residential real estate appraisal services in the normal course of its business and the entity is responsible for ensuring that the residential real estate appraisal services being performed by its employees are being performed in accordance with USPAP;
(b) Any individual, corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity who in the normal course of business enters into an agreement, whether written or otherwise, with another independent contractor appraiser for the performance of residential real estate appraisal services that the hiring or contracting appraiser cannot complete for any reason, including, but not limited to, competency, work load, schedule, or geographic location;
(c) Any individual, corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity who in the normal course of business enters into an agreement, whether written or otherwise, with an independent contractor appraiser for the performance of residential real estate appraisal services and upon the completion of the appraisal, the report of the appraiser performing the residential real estate appraisal services is co-signed by the appraiser who subcontracted with the independent appraiser for the performance of the residential real estate appraisal services.
(d) Appraisal management companies that contract with independent appraisers for the performance of less than ten (10) appraisals in this state in a calendar year.
SECTION 3. Each entity applying for a registration as an appraisal management company in this state, whether a resident company or nonresident company, shall complete an irrevocable uniform consent to service of process, designating the Secretary of State as the agent of that company upon whom service of process may be had in the event of any suit against the company.
SECTION 4. (1) (a) An appraisal management company applying for a registration in this state may not be more than ten percent (10%) owned by any person who has had a license or certificate to act as an appraiser refused, denied, canceled, or revoked in this state or in any other state.
(b) Each person that owns more than ten percent (10%) of an appraisal management company in this state shall:
(i) Be of good moral character, as determined by the board;
(ii) Submit to a background investigation, as determined by the board; and
(iii) Certify to the board that the person has never had a license to act as an appraiser refused, denied, cancelled, or revoked in this state or in any other state.
(2) Each appraisal management company applying to the board for a registration in this state shall designate one (1) controlling person that will be the main contact for all communication between the board and the appraisal management company.
(3) In order to serve as a controlling person of an appraisal management company, a person must:
(a) Certify to the board that the person has never had a certificate or a license issued by the board of this state, or the board of any other state, to act as an appraiser refused, denied, canceled, or revoked;
(b) Be of good moral character, as determined by the board; and
(c) Submit to a background investigation, as determined by the board.
(4) (a) Any employee of the appraisal management company, or any person working on behalf of the appraisal management company, that has the responsibility of selecting independent appraisers for the performance of residential real estate appraisal services for the appraisal management company or to review completed appraisals must be appropriately trained and qualified in the performance of residential real estate appraisals as determined by the board by regulations.
(b) Any employee of the appraisal management company that has the responsibility to review the work of independent appraisers must have demonstrated knowledge of USPAP, as determined by the board by regulation.
SECTION 5. (1) An appraisal management company registered in this state under this act may not enter into contracts or agreements with an independent appraiser for the performance of residential real estate appraisal services unless that person is licensed or certified in good standing under the Real Estate Appraiser Licensing and Certification Act.
(2) Each appraisal management company seeking to be registered in this state shall certify to the board on an annual basis on a form prescribed by the board that the appraisal management company has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds a license in good standing in this state under the Real Estate Appraiser Licensing and Certification Act.
(3) Each appraisal management company seeking to be registered in this state shall certify to the board on an annual basis that it has a system in place to review the work of all independent appraisers that are performing real estate appraisal services for the appraisal management company on a periodic basis to ensure that the real estate appraisal services are being conducted in accordance with USPAP.
(4) Each appraisal management company seeking to be registered in this state shall certify to the board on an annual basis that it maintains a detailed record of each service request that it receives and the independent appraiser that performs the residential real estate appraisal services for the appraisal management company.
SECTION 6. (1) An appraisal management company that applies for registration in this state shall disclose to the board as part of the registration process if it has developed or uses any appraiser fee schedule.
(2) An appraisal management company that applies for registration in this state and which utilizes any appraiser fee schedule shall develop the appraiser fee schedule(s) through one or more surveys of the market rates being paid to independent fee appraisers in this state for the performance of real estate appraisal services.
(3) The surveys performed under subsections (2) of this section shall be performed utilizing statistically valid methodologies, techniques, and reliable data sources including representative samples of independent fee appraisers.
(4) The board may in its discretion review any appraiser fee schedule developed by an appraisal management company registered in this state to ensure that the fee schedule was developed under the requirements of subsections (2) and (3) of this section.
(5) Upon a formal request of the board, an appraisal management company that utilizes any appraiser fee schedule shall disclose to the board the methodologies, techniques, and data sources that were utilized to determine the amounts listed on the schedules.
(6) Following a review of any fee schedule conducted under subsections (4) and (5) of this section, the board shall make the substantive results of the review available to the public.
SECTION 7. (1) It shall be unlawful for any employee, director, officer, or agent of an appraisal management company registered in this state under this act to influence or attempt to influence the development, reporting, or review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery or in any other manner, including, but not limited to:
(a) Withholding or threatening to withhold timely payment for an appraisal;
(b) Withholding or threatening to withhold future business for an independent appraiser, or demoting or terminating or threatening to demote or terminate an independent appraiser;
(c) Expressly or impliedly promising future business, promotions, or increased compensation for an independent appraiser;
(d) Conditioning the request for an appraisal service or the payment of an appraisal fee or salary or bonus on the opinion, conclusion, or valuation to be reached, or on a preliminary estimate or opinion requested from an independent appraiser;
(e) Requesting that an independent appraiser provide an estimated, predetermined, or desired valuation in an appraisal report, or provide estimated values or comparable sales at any time prior to the independent appraiser's completion of an appraisal service;
(f) Providing to an independent appraiser an anticipated, estimated, encouraged, or desired value for a subject property or a proposed or target amount to be loaned to the borrower, except that a copy of the sales contract for purchase transactions may be provided;
(g) Providing to an independent appraiser, or any entity or person related to the appraiser, stock or other financial or nonfinancial benefits;
(h) Allowing the removal of an independent appraiser from an appraiser panel, without prior written notice to such appraiser;
(i) Obtaining, using, or paying for a second or subsequent appraisal or ordering an automated valuation model in connection with a mortgage financing transaction unless there is a reasonable basis to believe that the initial appraisal was flawed or tainted and such basis is clearly and appropriately noted in the loan file, or unless such appraisal or automated valuation model is done under a bona fide pre-funding or post-funding appraisal review or quality control process; or
(j) Any other act or practice that impairs or attempts to impair an appraiser's independence, objectivity, or impartiality.
(2) Nothing in subsection (1) of this section shall be construed as prohibiting the appraisal management company from requesting that an independent appraiser:
(a) Provide additional information about the basis for a valuation; or
(b) Correct objective factual errors in an appraisal report.
(3) An appraisal management company may not alter, modify, or otherwise change a completed appraisal report submitted by an independent appraiser.
SECTION 8. (1) Each appraisal management company operating in this state shall, except in cases of breach of contract or substandard performance of services, make payment to an independent appraiser for the completion of an appraisal or valuation assignment within sixty (60) days of the date on which the independent appraiser transmits or otherwise provides the completed appraisal or valuation study to the appraisal management company or its assignee.
(2) (a) Except within the first thirty (30) days after an independent appraiser is first added to the appraiser panel of an appraisal management company, an appraisal management company may not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real estate appraisal services to an independent appraiser without:
(i) Notifying the appraiser in writing of the reasons why the appraiser is being removed from the appraiser panel of the appraisal management company;
(ii) If the appraiser is being removed from the panel for illegal conduct, violation of USPAP, or a violation of state licensing standards, the nature of the alleged conduct or violation;
(iii) Providing an opportunity for the appraiser to respond to the notification of the appraisal management company.
(b) An appraiser that is removed from the appraiser panel of an appraisal management company for alleged illegal conduct, violation of USPAP, or violation of state licensing standards, may file a complaint with the board for a review of the decision of the appraisal management company, except that in no case shall the board make any determination regarding the nature of the business relationship between the appraiser and the appraisal management company which is unrelated to the actions specified in paragraph (a) of this subsection.
(c) If an appraiser files a complaint against an appraisal management company under paragraph (b) of this subsection, the board shall adjudicate the complaint within one hundred eighty (180) days.
(d) If after opportunity for hearing and review, the board determines that an appraiser did not commit a violation of law, a violation of USPAP, or a violation of state licensing standards, the board shall order that an appraiser be added to the appraiser panel of the appraisal management company that was the subject of the complaint without prejudice.
(e) Following the adjudication of a complaint to the board by an appraiser against an appraisal management company, an appraisal management company may not refuse to make assignments for real estate appraisal services to an appraiser, or reduce the number of assignments, or otherwise penalize the appraiser, if the board has found that the appraisal management company acted improperly in removing the appraiser from the appraiser panel.
SECTION 9. Section 73-34-9, Mississippi Code of 1972, is amended as follows:
73-34-9. (1) The commission shall have the following powers and duties:
(a) To receive applications for licensure as a real estate appraiser and applications for registration as an appraisal management company under this chapter; to establish appropriate administrative procedures for the processing of such applications; to issue licenses to qualified applicants pursuant to the provisions of this chapter; and to maintain a registry of the names and addresses of individuals who are currently licensed under this chapter.
(b) To administer licensing examinations in such places and at such times as may be required to carry out its responsibilities under this chapter.
(c) To implement recommendations made to the commission by the Real Estate Appraiser Licensing and Certification Board with respect to upgrading and improving the experience, education and examination requirements that are required for an appraiser license and each classification of licensed state certified real estate appraiser in this state.
(d) To implement recommendations made to the commission by the board with respect to upgrading and improving the continuing education requirements that are required for renewal of a license.
(e) To collect all licensing fees required or permitted by this chapter.
(f) To take appropriate action upon a decision and the related findings of fact made by the board if, after an administrative hearing, the board (i) determines that a licensed appraiser or a licensed state certified real estate appraiser under this chapter has violated the standards of appraisal practice or ethical rules established under Section 73-34-37 or has committed one or more of the acts that are prohibited by Section 73-34-35, and (ii) recommends that the license of the appraiser be suspended or revoked, that renewal be denied, or that some other disciplinary action be taken.
(g) To solicit bids and enter into contracts with one or more educational testing services or organizations approved by the board for the preparation of a bank of questions and answers for licensure examinations under this chapter.
(h) To promote research and conduct studies relating to the profession of real estate appraising and sponsor real estate appraisal educational activities.
(i) To adopt rules and regulations for the administration of this chapter that are not inconsistent with the provisions of this chapter or the Constitution and laws of Mississippi or of the United States.
(j) To employ an assistant to the Mississippi Real Estate Commission Administrator who shall keep a record of all proceedings, transactions, communications and official acts of the commission and board and perform such other duties as the commission and board may require.
(k) To employ an appropriate staff to investigate allegations that licensed appraisers or licensed state certified real estate appraisers under this chapter failed to comply with the terms or provisions of this chapter.
(l) To employ such other professional, clerical and technical assistance as may be necessary to properly administer the work of this chapter.
(2) The board shall have the following powers and duties:
(a) To be responsible for matters relating to real estate appraisal standards, real estate appraiser qualifications, testing standards, appraisal management companies and disciplinary functions.
(b) To hold meetings; to hold public hearings and administrative hearings; to prepare examination specifications for licensed appraisers and licensed state certified appraisers.
(c) To enable the board to carry out its responsibilities under this chapter with respect to licensing, the board shall have (i) the power to compel the attendance of witnesses; (ii) the power to require a licensed appraiser or an applicant for licensure to produce books, appraisal documents, records and other papers; (iii) the power to administer oaths; (iv) and the power to take testimony and receive evidence concerning all matters within its jurisdiction. These powers may be exercised directly by the board in such manner as the board shall determine.
(d) To establish appropriate administrative procedures for disciplinary proceedings conducted pursuant to the provisions of this chapter.
(e) To keep a record of its proceedings and issue an annual report of its activities.
(f) To further define by regulation, and with respect to each of the categories of licensed appraiser, the type of educational experience, appraisal experience and equivalent experience that will meet the statutory requirements of this chapter.
(g) To approve or disapprove applications for licensing or registration under this chapter.
(h) To suspend or revoke licenses or registrations under the disciplinary proceedings provided for in this chapter.
(i) To present an annual budget to the Mississippi Legislature for approval. A copy of the budget shall be given to the commission.
(j) To implement all requirements directed by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council or their designated agent.
(k) To make rules and regulations providing for an inactive license status and for the reactivation thereof.
(l) To make rules and regulations necessary to implement its powers and duties under this chapter.
(m) To do all other things necessary to carry out the provisions of this chapter.
(3) The members of the commission and board shall be immune from any civil action or criminal prosecution for initiating or assisting in any lawful investigation of the actions of, or participating in any disciplinary proceeding concerning, an appraiser licensed pursuant to this chapter, provided that such action is taken without malicious intent and in the reasonable belief that the action was taken pursuant to the powers and duties vested in the members of the commission and board under this chapter.
SECTION 10. Section 73-34-13, Mississippi Code of 1972, is amended as follows:
73-34-13. Applications for one (1) of the appraisal licenses, applications for renewal, * * * applications to take an examination, and applications for registration as an appraisal management company shall be made in writing to the commission on approved forms.
The payment of the appropriate fee, as fixed under Section 73-34-45, must accompany all applications for licensure and renewal thereof, all applications to take an examination and all applications for registration as an appraisal management company. At the time of filing an application for licensure under this chapter, * * * for renewal, or for registration as an appraisal management company, each applicant shall sign a pledge to comply with the standards of professional appraisal practices that are established from time to time for licensed appraisers and for licensed certified real estate appraisers under this chapter. Each applicant shall also certify that he understands the types of misconduct, as set forth in this chapter, for which disciplinary proceedings may be initiated against a licensed appraiser or a licensed certified real estate appraiser.
Each application or filing made under this section shall include the social security number(s) of the applicant in accordance with Section 93-11-64, Mississippi Code of 1972.
SECTION 11. Section 73-34-25, Mississippi Code of 1972, is amended as follows:
73-34-25. Except as provided in Section 33-1-39, a license issued under the authority of this chapter shall expire two (2) years from the last day of the month of issuance; however a registration granted under the authority of this chapter shall expire one (1) year from the date of issuance.
SECTION 12. Section 73-34-27, Mississippi Code of 1972, is amended as follows:
73-34-27. To obtain a renewal of any of the real estate appraisal licenses or a renewal of any registration issued under this chapter, the holder of a current, valid license or registration shall make application and pay the prescribed fee to the commission not earlier than one hundred twenty (120) days nor later than the expiration date, as defined in Section 73-34-25, of the license then held. Each application for renewal shall be accompanied by evidence, in the form prescribed by the board, of having completed the continuing education requirements for renewal specified in this chapter.
If a licensed appraiser or licensed certified real estate appraiser under this chapter fails to renew his license, or an appraisal management company fails to renew its registration before its expiration or within any period of extension granted under this chapter, that person or company may obtain a renewal of their license or registration by satisfying all of the requirements for renewal and filing an application for renewal, accompanied by a late renewal fee, within sixty (60) days of the date that the license or registration expired.
SECTION 13. Section 73-34-29, Mississippi Code of 1972, is amended as follows:
73-34-29. The board may, upon compliance with the provisions of this chapter relating to administrative hearings, deny the issuance of a license or registration to an applicant on any of the grounds provided in this chapter.
SECTION 14. Section 73-34-35, Mississippi Code of 1972, is amended as follows:
73-34-35. (1) An application for licensure or renewal may be denied, and the rights of any licensed appraiser or licensed certified real estate appraiser may be revoked or suspended, or the holder of the license may be otherwise disciplined, in accordance with the provisions of this chapter for any of the following acts or omissions:
(a) Failing to meet the minimum qualifications for licensure established under this chapter;
(b) Procuring or attempting to procure licensure under this chapter by knowingly making a false statement, submitting false information or making a material misrepresentation in an application filed with the commission or procuring or attempting to procure licensure through any form of fraud or misrepresentation;
(c) Paying money other than the fees provided for by this chapter to any member or employee of the commission or the board to procure licensure under this chapter;
(d) An act or omission in the practice of real estate appraising which constitutes dishonesty, fraud or misrepresentation with the intent to substantially benefit the licensee or another person or with the intent to substantially injure another person;
(e) Entry of a final civil or criminal judgment against a licensee on grounds of fraud, misrepresentation or deceit;
(f) Conviction, including a conviction based upon a plea or finding of guilty, of a crime which is substantially related to the qualifications, functions or duties of a person developing real estate appraisals and communicating real estate appraisals to others;
(g) Engaging in the business of real estate appraising under an assumed or fictitious name not properly registered in this state;
(h) Paying a finder's fee or a referral fee;
(i) Making a false or misleading statement in that portion of a written appraisal report that deals with professional qualifications or in any testimony concerning professional qualifications;
(j) Issuing an appraisal on any real property in which the appraiser has an interest through fee simple ownership, leasehold, rental agreement or auction agreement;
(k) Taking a listing for the sale of a property within ninety (90) days of appraising such property, except as may be otherwise agreed upon by all parties and disclosed in the listing agreement; or
(l) Any act or conduct, whether the same or of a different character than specified above, which constitutes or demonstrates bad faith, incompetency or untrustworthiness; or dishonest, fraudulent or improper dealing; or any other violation of the provisions of this chapter and of rules and regulations established by the board.
(2) Notwithstanding any provision to the contrary, the board may censure an appraisal management company, revoke or suspend any registration issued under this chapter, levy fines or impose civil penalties not to exceed Twenty-five Thousand Dollars ($25,000.00) for any of the following acts:
(a) Committing any act in violation of this chapter;
(b) Violating any rule or regulation adopted by the board in the interest of the public and consistent with the provisions of this chapter; or
(c) Procuring a license for himself or anyone else by fraud, misrepresentation or deceit.
(3) In addition to the reasons specified in subsection (1) of this section, the board shall be authorized to suspend the license of any licensee for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a license for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a license suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a license suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be. If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.
SECTION 15. Section 73-34-41, Mississippi Code of 1972, is amended as follows:
73-34-41. The commission may investigate at the direction of the board the actions of an individual licensed or entity registered under this chapter or an applicant for licensure, renewal or registration. Upon compliance with the procedural requirements set forth in this chapter, the board may revoke or suspend the license or otherwise discipline a licensed appraiser, licensed certified real estate appraiser or registered appraisal management company, or deny an application or registration, for any of the acts or omissions set forth in Section 73-34-35.
Upon receipt of information indicating that a licensed appraiser, licensed certified real estate appraiser or a registered appraisal management company may have committed a violation under Section 73-34-35, the board may, upon compliance with the procedural requirements set forth in this chapter, revoke or suspend the license or otherwise discipline the licensee or registrant, or deny an application or registration, for any of the acts or omissions set forth in Section 73-34-35.
Upon receipt of information indicating that a licensed appraiser, licensed certified real estate appraiser or registered appraisal management company may have committed a violation under Section 73-34-35, the commission, at the direction of the board, may cause one or more of the investigators on its staff to make an investigation of the facts to determine whether or not there is evidence of any such violation. If technical assistance is required, a staff investigator may consult with not more than two (2) of the voting members of the board. If a voting member of the board is consulted and renders assistance in an investigation, such member shall be excused from service on the board in connection with any administrative hearing that results from such investigation.
In any investigation made by the commission's investigative staff, the board shall have the power to compel the attendance of witnesses and the production of books, appraisal documents, records and other papers, the power to administer oaths, and the power to take testimony and receive evidence concerning all matters within its jurisdiction.
If an investigation indicates that a licensed appraiser, licensed certified real estate appraiser or registered appraisal management company has committed a violation under Section 73-34-35, a formal complaint shall be prepared by the commission staff at the direction of the board and served upon such real estate appraiser or appraisal management company. This complaint shall require the accused party to file an answer to the complaint within twenty (20) days of the date of service.
In responding to a complaint filed by the staff of the commission, the accused party may admit the allegations of the complaint, deny the allegations of the complaint, or otherwise plead. Failure to make a timely response shall be deemed an admission of the allegations of the complaint.
Upon completion of the investigation of the complaint, the board shall set a date, time and place for an administrative hearing on the complaint.
SECTION 16. Section 73-34-43, Mississippi Code of 1972, is amended as follows:
73-34-43. If, at the conclusion of the hearing, the board determines that a licensed appraiser, licensed certified real estate appraiser or appraisal management company is guilty of a violation of any of the provisions of this chapter, it shall prepare a formal decision that shall contain findings of fact concerning the appropriate disciplinary action to be taken.
The decision and order of the board shall be final. Any applicant, licensee, registrant or person aggrieved by a decision or order of the board shall have the right of appeal from such adverse order or decision of the board to the circuit court of the county of residence of the applicant, licensee, registrant or person, or of the First Judicial District of Hinds County, within thirty (30) days from the service of notice of the action of the board upon the parties in interest. Notice of appeals shall be filed in the office of the clerk of the court who shall issue an order directed to the board commanding it, within ten (10) days after service thereof, to certify to the court its entire record in the matter in which the appeal has been taken. The appeal shall thereupon be heard in due course by the court, without a jury, which shall review the record and make its determination of the cause between the parties. To be effective, an application for review made by an aggrieved party must be filed within thirty (30) days after such party's receipt of the final decision and order of the board.
If an application is filed for review of a final decision and order of the board, the case shall be set for trial within sixty (60) days from the date of the filing of an answer for the board. If the court finds that the board has regularly pursued its authority and has not acted arbitrarily, it shall affirm the decision and order of the board.
Actions taken by the board in suspending a license when required by Section 93-11-157 or 93-11-163 are not actions from which an appeal may be taken under this section. Any appeal of a license suspension that is required by Section 93-11-157 or 93-11-163 shall be taken in accordance with the appeal procedure specified in Section 93-11-157 or 93-11-163, as the case may be, rather than the procedure specified in this section.
SECTION 17. Section 73-34-45, Mississippi Code of 1972, is amended as follows:
73-34-45. (1) The commission shall charge and collect appropriate fees for its services under this chapter. The fees charged shall not exceed the amounts indicated below and shall be set by the board.
LICENSURE FEES:
Application and examination........................ $225.00
Initial and renewal license........................ $325.00
Delinquent renewal penalty............. 100% of renewal fee
SERVICES:
For each change of address......................... $ 25.00
For each duplicate license......................... $ 25.00
To change status as a licensee from active to
inactive................................................ $ 25.00
For each bad check received by the commission...... $ 25.00
(2) The board shall establish the fee to be paid by each appraisal management company making application for registration under this chapter, but in no case shall the fee for registration be more than Five Hundred Dollars ($500.00).
(3) All fees charged and collected under this chapter shall be paid by the commission at least once a week, accompanied by a detailed statement thereof, to the credit of the fund known as the "Real Estate Appraisal License Fund," hereby created in the State Treasury. All monies which are collected under this chapter shall be paid into and credited to such fund for the use of the board in carrying out the provisions of this chapter including the payment of salaries and expenses, printing an annual directory of licensees, and for educational purposes. The commission shall submit a monthly statement to the board detailing any expenses which it bears as a share in the expense of administering this chapter, for which expenses it shall be reimbursed in the amount approved by the board. The commission shall prepare an annual statement of income and expenses related to its appraisal related administrative function.
(4) If any applicant for licensing for the examinations given under this chapter before January 1, 1991, prepays the examination fee before August 1, 1990, he shall pay a fee of One Hundred Seventy-five Dollars ($175.00) in lieu of the Two Hundred Twenty-five Dollars ($225.00) application and examination fee as stated in this section.
SECTION 18. Section 73-34-49, Mississippi Code of 1972, is amended as follows:
73-34-49. The commission shall prepare and issue at least once each calendar year a roster showing the name and place of business of each real estate appraiser currently licensed and appraisal management company registered under the provisions of this chapter. A copy of the roster shall be made available to the public, upon application to the commission, at a reasonable price per copy as may be fixed by the commission. The commission shall send a copy of this list to the Appraisal Subcommittee of the Federal Financial Institutions Examination Council, or its designated agent.
SECTION 19. Section 73-34-53, Mississippi Code of 1972, is amended as follows:
73-34-53. (1) Except as otherwise provided in Section 73-34-35, any person violating a provision of this chapter shall, upon conviction of a first violation thereof, be punished by a fine of not less than Five Hundred Dollars ($500.00) nor more than One Thousand Dollars ($1,000.00), or by imprisonment for a term not to exceed ninety (90) days, or both. A second or subsequent violation shall be punishable by a fine of not less than One Thousand Dollars ($1,000.00) nor more than Two Thousand Dollars ($2,000.00), or by imprisonment for a term not to exceed six (6) months, or both.
(2) In case any person shall have received any sum of money, or the equivalent thereof, as commission, compensation or profit by or in consequence of his violation of any provision of this chapter, such person shall also be liable to a penalty of not less than the amount of the sum of money so received and not more than four (4) times the sum so received, as may be determined by the court, which penalty may be sued for and recovered by any person aggrieved, and for his use and benefit, in any court of competent jurisdiction.
SECTION 20. This act shall take effect and be in force from and after July 1, 2011.
