Bill Text: OR HB2499 | 2011 | Regular Session | Enrolled
Bill Title: Relating to appraisal management companies; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2011-06-21 - Chapter 447, (2011 Laws): Effective date June 21, 2011. [HB2499 Detail]
Download: Oregon-2011-HB2499-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2499
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Consumer
Protection and Government Accountability)
CHAPTER ................
AN ACT
Relating to appraisal management companies; creating new
provisions; amending ORS 674.305, 674.310 and 705.141 and
sections 1, 2, 3, 4, 5, 6, 7, 8 and 9, chapter 87, Oregon Laws
2010; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
{ +
TRANSFER + }
SECTION 1. { + The duties, functions and powers of the
Department of Consumer and Business Services relating to
appraisal management companies are imposed upon, transferred to
and vested in the Appraiser Certification and Licensure
Board. + }
{ +
RECORDS, PROPERTY, EMPLOYEES + }
SECTION 2. { + (1) The Director of the Department of Consumer
and Business Services shall deliver to the Appraiser
Certification and Licensure Board all records and property within
the jurisdiction of the director that relate to the duties,
functions and powers transferred by section 1 of this 2011 Act.
(2) The Appraiser Certification and Licensure Board shall take
possession of the records and property.
(3) The Governor shall resolve any dispute between the
Department of Consumer and Business Services and the Appraiser
Certification and Licensure Board relating to transfers of
records or property under this section, and the Governor's
decision is final. + }
{ +
UNEXPENDED REVENUES + }
SECTION 3. { + (1) The unexpended balances of amounts
authorized to be expended by the Department of Consumer and
Business Services for the biennium ending June 30, 2013, from
revenues dedicated, continuously appropriated, appropriated or
otherwise made available for the purpose of administering and
enforcing the duties, functions and powers transferred by section
Enrolled House Bill 2499 (HB 2499-A) Page 1
1 of this 2011 Act are transferred to and are available for
expenditure by the Appraiser Certification and Licensure Board
for the biennium ending June 30, 2013, for the purpose of
administering and enforcing the duties, functions and powers
transferred by section 1 of this 2011 Act.
(2) The expenditure classifications, if any, established by
Acts authorizing or limiting expenditures by the department
remain applicable to expenditures by the board under this
section. + }
{ +
ACTION, PROCEEDING, PROSECUTION + }
SECTION 4. { + The transfer of duties, functions and powers to
the Appraiser Certification and Licensure Board by section 1 of
this 2011 Act does not affect any action, proceeding or
prosecution involving or with respect to such duties, functions
and powers begun before and pending at the time of the transfer,
except that the board is substituted for the Department of
Consumer and Business Services in the action, proceeding or
prosecution. + }
{ +
LIABILITY, DUTY, OBLIGATION + }
SECTION 5. { + (1) Nothing in sections 1 to 7 of this 2011 Act
relieves a person of a liability, duty or obligation accruing
under or with respect to the duties, functions and powers
transferred by section 1 of this 2011 Act. The Appraiser
Certification and Licensure Board may undertake the collection or
enforcement of any such liability, duty or obligation.
(2) The rights and obligations of the Department of Consumer
and Business Services legally incurred under contracts, leases
and business transactions executed, entered into or begun before
the operative date of section 1 of this 2011 Act accruing under
or with respect to the duties, functions and powers transferred
by section 1 of this 2011 Act are transferred to the board. For
the purpose of succession to these rights and obligations, the
board is a continuation of the department and not a new
authority. + }
{ +
RULES + }
SECTION 6. { + Notwithstanding the transfer of duties,
functions and powers by section 1 of this 2011 Act, the rules of
the Department of Consumer and Business Services with respect to
such duties, functions or powers that are in effect on the
operative date of section 1 of this 2011 Act continue in effect
until superseded or repealed by rules of the Appraiser
Certification and Licensure Board. References in such rules of
the department to the department or an officer or employee of the
department are considered to be references to the board or an
officer or employee of the board. + }
SECTION 7. { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, in the context
of the duties, functions and powers transferred by section 1 of
this 2011 Act, reference is made to the Department of Consumer
and Business Services, or an officer or employee of the
Enrolled House Bill 2499 (HB 2499-A) Page 2
department, whose duties, functions or powers are transferred by
section 1 of this 2011 Act, the reference is considered to be a
reference to the Appraiser Certification and Licensure Board or
an officer or employee of the board who by this 2011 Act is
charged with carrying out such duties, functions and powers. + }
{ +
APPRAISAL MANAGEMENT COMPANIES + }
SECTION 8. Section 1, chapter 87, Oregon Laws 2010, is amended
to read:
{ + Sec. 1. + } As used in sections 1 to 8 { - of this 2010
Act - } { + , chapter 87, Oregon Laws 2010 + }:
{ + (1) 'Appraisal' means the process of developing an
opinion of the value of real property in conformance with
commonly accepted standards for appraisers. + }
{ - (1)(a) 'Appraisal management company' means a business
entity that: - }
{ - (A) Performs appraisal management services; - }
{ - (B) Administers networks of independent contractor
appraisers to perform real estate appraisal activity for clients;
or - }
{ - (C) Otherwise serves as a third-party broker of real
estate appraisal activity between clients and appraisers. - }
{ - (b) 'Appraisal management company' does not include: - }
{ - (A) An appraiser who in the normal course of business
enters into an agreement with another appraiser for the
performance of real estate appraisal activity that the hiring
appraiser cannot complete; - }
{ - (B) An appraiser who in the normal course of business
enters into an agreement with another appraiser for the
performance of real estate appraisal activity and upon the
completion of the activity, jointly signs the appraisal report
with the appraiser performing the activity; or - }
{ - (C) A person who contracts for fewer than 10 appraisals
in this state in a calendar year. - }
{ + (2)(a) 'Appraisal management company' means, in
connection with valuing properties collateralizing mortgage loans
or mortgages incorporated into a securitization, an external
third party that:
(A) Oversees an appraisal panel of more than 15 appraisers in
Oregon or at least 25 appraisers in the United States; and
(B) Is authorized by a client to:
(i) Recruit, select and retain appraisers;
(ii) Contract with appraisers to perform appraisal assignments;
(iii) Manage the process of having an appraisal performed,
including providing administrative duties such as receiving
appraisal orders and appraisal reports, submitting completed
appraisal reports to creditors and underwriters, collecting fees
from creditors and underwriters for services provided and
reimbursing appraisers for services performed; or
(iv) Review and verify the work of appraisers.
(b) 'Appraisal management company' does not include an entity
that employs real estate appraisers exclusively as employees for
the performance of real estate appraisal activity. + }
{ - (2) - } { + (3) + } 'Appraisal management services'
means the process of receiving a request for the performance of
real estate appraisal activity from a client and, for a fee paid
by the client, entering into an agreement with an independent
Enrolled House Bill 2499 (HB 2499-A) Page 3
contractor appraiser to perform the real estate appraisal
activity contained in the request.
{ + (4)(a) 'Appraisal review' means the act or process of
developing and communicating an opinion about the quality of the
substantive aspects of another appraiser's work that was
performed as part of an appraisal assignment.
(b) An 'appraisal review' is not a quality control
examination. + }
{ - (3) - } { + (5) + } 'Appraiser' means a state certified
appraiser or state licensed appraiser certified or licensed under
ORS 674.310.
{ - (4) - } { + (6) + } 'Appraiser panel' means a group of
{ - independent contractor - } appraisers who have been
selected by an appraisal management company to perform real
estate appraisal activity for
{ - the appraisal management company - } { + clients + }.
{ + (7) 'Client' means a creditor of a consumer credit
transaction secured by the consumer's real estate or an
underwriter of or other principal in the secondary mortgage
markets that engages an appraisal management company to perform
appraisal management services. + }
{ - (5) - } { + (8) + } 'Controlling person' means:
(a) An owner, officer or director of an appraisal management
company;
{ - (b) An individual employed, appointed or authorized by an
appraisal management company to enter into an agreement with a
client for the performance of appraisal management services or to
enter into an agreement with an independent contractor appraiser
for the performance of real estate appraisal activity; or - }
{ + (b) An individual authorized by an appraisal management
company to enter into a contractual relationship with:
(A) A client for the performance of services requiring
registration as an appraisal management company; and
(B) An appraiser for the performance of appraisals; or + }
(c) An individual who possesses, directly or indirectly, the
power to direct the management or policies of an appraisal
management company.
{ - (6) 'Financial institution' has the meaning given that
term in ORS 674.010. - }
{ + (9) 'Independent contractor appraiser' means an appraiser
who receives a fee for performing an appraisal, but who is not an
employee of the person engaging the appraiser.
(10)(a) 'Quality control examination' means an examination of
an appraisal report for compliance and completeness in relation
to client specifications, including examination for grammatical
or typographical errors.
(b) A 'quality control examination' is not an appraisal
review. + }
{ - (7) - } { + (11) + } 'Real estate appraisal activity'
means the activity described in ORS 674.100.
{ + (12) 'Uniform Standards of Professional Appraisal
Practice ' means the current standards of the appraisal
profession, developed for appraisers and users of appraisal
services by the Appraisal Standards Board of the Appraisal
Foundation. + }
SECTION 9. Section 2, chapter 87, Oregon Laws 2010, is amended
to read:
{ + Sec. 2. + } (1) { - (a) - } A person may not
{ - provide appraisal management services - } { + directly or
indirectly engage in or attempt to engage in business as an
Enrolled House Bill 2499 (HB 2499-A) Page 4
appraisal management company or advertise or represent that the
entity is an appraisal management company + } unless the person
is { + :
(a) + } Registered as an appraisal management company with the
{ - Department of Consumer and Business Services - } { +
Appraiser Certification and Licensure Board; or
(b) An appraisal management company that is a subsidiary of and
owned and controlled by a financial institution regulated by a
federal financial institution regulatory agency, as that term is
defined in ORS 674.010 + }.
{ - (b) Notwithstanding ORS 674.100 (3)(a), an affiliate of a
financial institution or insurance company may not provide
appraisal management services unless the affiliate is registered
as an appraisal management company with the department. - }
(2) A business entity may apply for registration as an
appraisal management company on forms prescribed by rule by the
{ - department - } { + board + }. The application must
include:
(a) The name, address and { + phone + } contact information of
the entity;
(b) The name, address and { + phone + } contact information of
a controlling person of the entity;
(c) If the entity is not domiciled in this state, the name and
{ + phone + } contact information for the entity's agent for
service of process in this state;
(d) The name, address and { + phone + } contact information of
any person that owns 10 percent or more of the entity;
(e) A certification that:
(A) The entity has a system to verify that each appraiser on
the entity's appraiser panel is licensed or certified under ORS
674.310 { - and is competent to perform real estate appraisal
activity - } ;
{ - (B) If the entity reviews real estate appraisal activity
performed by an appraiser, the review is conducted by another
appraiser; and - }
{ + (B) The entity requires an appraiser completing an
appraisal at the entity's request to confirm that the appraiser
is competent to perform the appraisal assignment before accepting
the assignment;
(C) The entity requires appraisers completing appraisals at the
entity's request to comply with the Uniform Standards of
Professional Appraisal Practice;
(D) The entity has a system in place to require that appraisals
are conducted independently and without inappropriate influence
or coercion as required by the appraisal independence standards
established under section 129E of the Truth in Lending Act;
and + }
{ - (C) - } { + (E) + } The entity maintains and retains
for at least five years, or as required under ORS 674.150, a
detailed record of each appraisal management services request the
entity receives and the appraiser who performs the real estate
appraisal activity contained in the request;
(f) The surety bond, letter of credit or deposit required by
section 3 { - of this 2010 Act - } { + , chapter 87, Oregon
Laws 2010 + };
(g) Fees in an amount prescribed by rule by the
{ - department - } { + board + }, which must be sufficient to
cover the costs of administering sections 1 to 8 and 9 { - of
this 2010 Act - } { + , chapter 87, Oregon Laws 2010 + }; { +
and + }
Enrolled House Bill 2499 (HB 2499-A) Page 5
{ - (h) A description of the dispute resolution process
required by section 7 of this 2010 Act; and - }
{ - (i) - } { + (h) + } Any other information required by
the { - department - } { + board + } by rule.
(3) The { - department - } { + board + } may not issue a
registration to a business entity as an appraisal management
company unless { + :
(a) Each individual who owns 10 percent or more of the entity
and the controlling person identified by the entity in the
application have completed a criminal records check; and
(b) + }The { - department - } { + board + } determines
that each individual who owns 10 percent or more of the entity
and the controlling person identified by the entity in the
application:
{ - (a) - } { + (A) + } Are of good moral character; and
{ - (b) - } { + (B) + } Have never had a license,
certification or registration to act as an appraiser or appraisal
management company refused, denied, canceled or revoked in this
state or in any other state.
{ + (4)(a) The board shall issue a unique registration number
to each appraisal management company registered under this
section.
(b) The board shall maintain a published list of appraisal
management companies registered under this section.
(c) An appraisal management company registered under this
section shall disclose the company's registration number to each
appraiser used by the company. + }
{ - (4) - } { + (5) + } An appraisal management company
registration expires two years after the date of the issuance of
the registration. The { - department - } { + board + } shall
adopt rules establishing the requirements for renewal or
reactivation of a registration. The rules must { + require that
an appraisal management company provide all of the information
and certifications required for an initial application for
registration under subsection (2) of this section in the renewal
application. + } { - include a requirement that the appraisal
management company must certify that: - }
{ - (a) The company has a system to verify that each
appraiser on the company's appraiser panel is licensed or
certified under ORS 674.310 and is competent to perform real
estate appraisal activity; - }
{ - (b) If the company reviews real estate appraisal activity
performed by an appraiser, the review is conducted by another
appraiser; and - }
{ - (c) The company maintains and retains for at least five
years, or as required under ORS 674.150, a detailed record of
each appraisal management services request the company receives
and the appraiser who performs the real estate appraisal activity
contained in the request. - }
SECTION 10. Section 3, chapter 87, Oregon Laws 2010, is amended
to read:
{ + Sec. 3. + } (1) An applicant for issuance or renewal of
an appraisal management company registration shall file with the
{ - Department of Consumer and Business Services - }
{ + Appraiser Certification and Licensure Board + } a surety
bond with one or more corporate sureties authorized to do
business in this state, or an irrevocable letter of credit issued
by an insured institution, as defined in ORS 706.008, in the
amount of $25,000.
Enrolled House Bill 2499 (HB 2499-A) Page 6
(2) The surety bond or letter of credit required under
subsection (1) of this section must:
(a) Be conditioned that the applicant pays:
(A) All amounts owing to persons who perform real estate
appraisal activity for the appraisal management company; and
(B) All amounts adjudged against the appraisal management
company by reason of negligent or improper real estate appraisal
activity or appraisal management services or breach of contract
in performing real estate appraisal activity or appraisal
management services; and
(b) Require the surety company to provide written notice to the
{ - department - } { + board + } by registered or certified
mail:
(A) At least 30 days before the surety company cancels or
revokes the bond; or
(B) When the surety company pays for a loss under the bond.
(3) In lieu of the surety bond or letter of credit required
under subsection (1) of this section, the appraisal management
company may file with the { - department - } { + board + },
under the same terms and conditions as when a bond is filed, a
deposit in cash or negotiable securities acceptable to the
{ - department - } { + board + }.
(4) The surety bond, letter of credit or deposit required by
this section must be continuously on file with the
{ - department - } { + board + } in the amount of $25,000 and
is for the exclusive purpose of payment of the obligations listed
in subsection (2) of this section. Upon termination or
cancellation of the bond, withdrawal of the deposit or reduction
of the bond, letter of credit or deposit to less than $25,000, a
registered appraisal management company shall:
(a) File a replacement bond, letter of credit or deposit within
the time period established by the { - department - }
{ + board + } by rule; or
(b) Surrender the company's registration to the
{ - department - } { + board + } and cease operating as an
appraisal management company.
(5) Any person damaged by an appraisal management company's
failure to pay an obligation listed in subsection (2) of this
section has a right of action under the bond. An action under the
bond must be commenced within one year after the appraisal
management company fails to pay the amount owing or the amount
adjudged against the appraisal management company.
SECTION 11. Section 4, chapter 87, Oregon Laws 2010, is amended
to read:
{ + Sec. 4. + } (1) The { - Department of Consumer and
Business Services shall - } { + Appraiser Certification and
Licensure Board may + } adopt rules establishing a procedure for
auditing an appraisal management company registered under section
2 { - of this 2010 Act - } { + , chapter 87, Oregon Laws
2010, + } to examine the appraisal management company's
compliance with sections 1 to 8 { - of this 2010 Act - } { + ,
chapter 87, Oregon Laws 2010 + }.
{ - (2) The department shall audit each appraisal management
company registered under section 2 of this 2010 Act at least
every two years. - }
{ - (3) The department shall issue written findings on the
results of the audit. - }
{ - (4) - } { + (2) + } If an appraisal management company
fails an audit, the { - department - } { + board + } may
impose a civil penalty under section 9
Enrolled House Bill 2499 (HB 2499-A) Page 7
{ - of this 2010 Act - } { + , chapter 87, Oregon Laws
2010 + }. { - - }
SECTION 12. Section 5, chapter 87, Oregon Laws 2010, is amended
to read:
{ + Sec. 5. + } (1) An appraisal management company or an
employee, controlling person or agent of an appraisal management
company may not:
(a) Attempt to influence the development { - , - }
{ + or + } reporting { + of an appraisal + } or
{ + appraisal + } review { - of an appraisal or appraisal
review assignment - } through coercion, extortion, collusion,
compensation, { - instruction, - } inducement, intimidation,
bribery or 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 contractor - } appraiser;
(C) Expressly or impliedly promising future business,
promotions or increased compensation for an appraiser;
(D) Conditioning the { - request for real estate appraisal
activity - } { + ordering of an appraisal report + } or any
payment on the opinion, conclusion or valuation to be reached, or
on a preliminary estimate or opinion requested from an appraiser;
(E) Requesting that an 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 appraiser's completion of real estate appraisal activity;
(F) Providing to an 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 a purchase transaction may be provided;
{ + or + }
(G) Providing to an appraiser, or any entity or individual
related to the appraiser, stock or other financial or
nonfinancial benefits;
{ - (H) Allowing the removal of an appraiser from an
appraiser panel without prior written notice to the
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 pursuant to an appraisal review or quality control
process that is completed by an appraiser before or after a loan
is funded; or - }
{ - (J) Any other act or practice that impairs or attempts to
impair an appraiser's independence, objectivity or
impartiality. - }
{ + (b) Require an appraiser to accept an appraisal
assignment if the appraiser has notified the company that the
appraiser declines the assignment because the assignment must be
completed within a time frame that the appraiser, in the
appraiser's professional judgment, believes does not afford the
appraiser the ability to meet the appraiser's legal and
professional obligations;
(c) Require an appraiser to accept an appraisal assignment if
the appraiser has notified the company that the appraiser
declines the assignment because, in the appraiser's professional
Enrolled House Bill 2499 (HB 2499-A) Page 8
judgment, the appraiser does not have the necessary expertise for
the assignment;
(d) Prohibit lawful communications between the appraiser and
any other person who the appraiser, in the appraiser's
professional judgment, believes possesses information that would
be relevant;
(e) Knowingly require an appraiser to take any action that does
not comply with the provisions of ORS chapter 674, the rules of
the Appraiser Certification and Licensure Board or any assignment
conditions and certifications required by the client for whom an
appraisal is being performed;
(f) Require an appraiser to indemnify the appraisal management
company or any other party against liability, damages, losses or
claims that arise out of any act or conduct of the appraisal
management company or that do not arise out of the services
performed by the appraiser;
(g) Prohibit an appraiser from reporting the fee paid to the
appraiser in the appraisal report;
(h) Allow a person to perform an appraisal review relating to a
property located in this state if the person is not an appraiser
with the licensure required to perform the appraisal review; + }
{ - (b) - } { + (i) + } Substantively alter in any way a
completed appraisal report submitted by an appraiser { - . - }
{ + ; or
(j) Except within the first 90 days after an appraiser is added
to the company's appraiser panel, remove the appraiser from the
appraiser panel without prior written notice to the appraiser,
including notice of evidence of the reason for removal. + }
(2) { - This section does not prohibit - } An appraisal
management company { - from requesting - } { + may
request + }, on behalf of { + and with the approval of + } a
financial institution at the request of a consumer, that an
appraiser:
(a) Provide additional information about the basis for the
valuation;
(b) Correct objective factual errors in a completed appraisal
report; or
(c) Consider the { - values - } { + prices + } of other
comparable properties.
SECTION 13. Section 6, chapter 87, Oregon Laws 2010, is amended
to read:
{ + Sec. 6. + } Except in the case of breach of contract or
substandard performance of real estate appraisal activity, an
appraisal management company shall make payment to an independent
contractor appraiser for the completion of an appraisal or
appraisal review assignment { + :
(1) + } Within 60 days after the appraiser provides the
completed appraisal report to the appraisal management company
{ - . - } { + ; or
(2) In accordance with another payment schedule agreed to by
the appraiser and the appraisal management company. + }
SECTION 14. Section 7, chapter 87, Oregon Laws 2010, is amended
to read:
{ + Sec. 7. + } The { - Department of Consumer and Business
Services - } { + Appraiser Certification and Licensure Board + }
shall adopt rules requiring an appraisal management company to
{ - establish a dispute resolution process that allows - }
{ + forward a complaint from + } a person with an interest in a
real estate transaction for which an appraisal was arranged by
the appraisal management company to
Enrolled House Bill 2499 (HB 2499-A) Page 9
{ - dispute the appraisal - } { + the client that requested
the appraisal + }.
SECTION 15. Section 8, chapter 87, Oregon Laws 2010, is amended
to read:
{ + Sec. 8. + } { - (1) The Department of Consumer and
Business Services - } { + The Appraiser Certification and
Licensure Board + } may { + deny registration or renewal of
registration to an appraisal management company or + } suspend or
revoke an appraisal management company registration for a
violation of sections 1 to 8 { - of this 2010 Act - } { + ,
chapter 87, Oregon Laws 2010, + } or of rules adopted by the
{ - department - } { + board + }.
{ - (2) The revocation, lapsing or suspension of an appraisal
management company registration does not deprive the department
of jurisdiction to proceed with any investigation of or any
action or disciplinary proceedings against the appraisal
management company, or to revise or render null and void an order
suspending or revoking the registration. - }
SECTION 16. { + Sections 17 to 19 of this 2011 Act are added
to and made a part of sections 1 to 8, chapter 87, Oregon Laws
2010. + }
SECTION 17. { + Any employee of an appraisal management
company who has reasonable basis to believe that an appraiser has
failed to comply with the Uniform Standards of Professional
Appraisal Practice, is violating the law or is otherwise engaging
in unethical or unprofessional conduct, shall notify the
Appraiser Certification and Licensure Board if the appraiser's
conduct is likely to have a material effect on the value assigned
to the real estate being appraised. + }
SECTION 18. { + The Appraiser Certification and Licensure
Board shall adopt rules requiring an appraisal management company
to provide documentation to the board showing that the appraisal
management company provides training, in accordance with rules
adopted by the board, to employees of the appraisal management
company who:
(1) Select appraisers for an appraiser panel;
(2) Select appraisers to perform real estate activity; or
(3) Perform quality control examinations. + }
SECTION 19. { + (1) The Appraiser Certification and Licensure
Board shall establish by rule fees for appraisal management
companies, including but not limited to fees for:
(a) Application for registration.
(b) Registration.
(c) Renewal of registration.
(d) Duplicate registration.
(e) Renewal of inactive registration.
(f) Reactivation of inactive registration.
(g) Late renewal of registration.
(h) Inactive status.
(i) Annual appraisal management company registry fees in an
amount determined by the Appraisal Subcommittee of the Federal
Financial Institutions Examination Council as set forth in
federal law.
(2) All moneys collected or received by the board pursuant to
this section shall be paid into the account created by the board
under ORS 182.470. + }
SECTION 20. Section 9, chapter 87, Oregon Laws 2010, is amended
to read:
{ + Sec 9. + } (1) In accordance with ORS chapter 183, the
Enrolled House Bill 2499 (HB 2499-A) Page 10
{ - Department of Consumer and Business Services - }
{ + Appraiser Certification and Licensure Board + } may impose a
civil penalty { + , + } not to exceed $15,000 { + for each
violation, + } on a person who violates a provision of sections 1
to 8 { - of this 2010 Act - } { + , chapter 87, Oregon Laws
2010, or any rule adopted by the board under sections 1 to 8,
chapter 87, Oregon Laws 2010 + }.
(2) The civil penalty under this section is in addition to and
not in lieu of any other penalty or sanction provided by law.
SECTION 21. ORS 705.141, as amended by section 10, chapter 87,
Oregon Laws 2010, is amended to read:
705.141. For the purpose of requesting a state or nationwide
criminal records check under ORS 181.534, the Department of
Consumer and Business Services may require the fingerprints of a
person who is applying for a license { - or registration - } ,
or renewal of a license { - or registration - } , under ORS
744.001, 744.059 or 744.326 { - or section 2, chapter 87,
Oregon Laws 2010, - } or a person who:
(1)(a) Is employed or applying for employment by the
department; or
(b) Provides services or seeks to provide services to the
department as a contractor, vendor or volunteer; and
(2) Is, or will be, working or providing services in a
position:
(a) In which the person is providing information technology
services and has control over, or access to, information
technology systems that would allow the person to harm the
information technology systems or the information contained in
the systems;
(b) In which the person has access to information that state or
federal laws, rules or regulations prohibit disclosing or define
as confidential;
(c) That has payroll functions or in which the person has
responsibility for receiving, receipting or depositing money or
negotiable instruments, for billing, collections or other
financial transactions or for purchasing or selling property or
has access to property held in trust or to private property in
the temporary custody of the state;
(d) That has mailroom duties as a primary duty or job function;
(e) In which the person has responsibility for auditing the
department;
(f) That has personnel or human resources functions as a
primary responsibility;
(g) In which the person has access to Social Security numbers,
dates of birth or criminal background information of employees or
members of the public; or
(h) In which the person has access to tax or financial
information about individuals or business entities.
SECTION 22. ORS 674.305 is amended to read:
674.305. (1) The Appraiser Certification and Licensure Board is
established. The board shall operate as a semi-independent state
agency subject to ORS 182.456 to 182.472 for purposes of carrying
out the provisions of this chapter. The board shall consist of
{ - seven - } { + eight + } members. The members shall be
appointed by the Governor and must be residents of this state.
(2) The board shall be composed of:
(a) Five appraisers certified or licensed under ORS 674.310;
(b) One individual who is employed by a financial institution
or a mortgage banker; { - and - }
Enrolled House Bill 2499 (HB 2499-A) Page 11
{ + (c) One member who represents appraisal management
companies registered under section 2, chapter 87, Oregon Laws
2010; and + }
{ - (c) - } { + (d) + } One individual who is a public
member and who:
(A) Is not engaged in professional real estate activity;
(B) Is not a state certified or state licensed appraiser;
(C) Is not employed by a financial institution or a mortgage
banker; and
(D) Does not have a direct financial interest in any person who
is required, or whose employees or agents are required, to be
state licensed or state certified appraisers.
(3) The term of office of each member is four years with two
terms maximum, but a member serves at the pleasure of the
Governor. Before the expiration of the term of a member, the
Governor shall appoint a successor whose term begins on July 1
next following. A member is eligible for reappointment. If there
is a vacancy for any cause, the Governor shall make an
appointment to become immediately effective for the unexpired
term. A member may not be appointed to serve more than two
consecutive terms on the board.
(4) The board shall select one of its members as chairperson
and another as vice chairperson, for such terms and with duties
and powers necessary for the performance of the functions of such
offices as the board determines.
(5) A majority of the members of the board constitutes a quorum
for the transaction of business.
(6) The board shall meet at least once every three months at a
place, day and hour determined by the board. The board also shall
meet at other times and places specified by the call of the
chairperson or of a majority of the members of the board.
(7) In accordance with applicable provisions of ORS chapter
183, the board shall adopt rules necessary for the administration
of this chapter.
(8) The appointment of a member of the board is subject to
confirmation by the Senate in the manner prescribed in ORS
171.562 and 171.565.
SECTION 23. ORS 674.310 is amended to read:
674.310. (1) The Appraiser Certification and Licensure Board
shall:
(a) Have the power to do all things necessary and convenient to
carry into effect the provisions of this chapter { + , sections 1
to 8, chapter 87, Oregon Laws 2010, + } and the federal Act and
to regulate the activities of state licensed appraisers, state
certified appraisers { - and - } { + , + } state registered
appraiser assistants { + and appraisal management companies + }
to ensure that real estate appraisals conform to the law in
effect on the date of the real estate appraisal activity.
(b) Certify or license appraisers and register appraiser
assistants as necessary to carry out the federal Act and the
purposes set forth in ORS 674.020.
{ + (c) Register appraisal management companies under
sections 1 to 8, chapter 87, Oregon Laws 2010. + }
{ - (c) - } { + (d) + } Supervise the activities of state
certified appraisers, state licensed appraisers { - and - }
{ + , + } state registered appraiser assistants { + and
appraisal management companies + } as provided in this
chapter { + and sections 1 to 8, chapter 87, Oregon Laws
2010 + }, to ensure that they perform real estate appraisal
activity in strict conformance with the provisions of this
Enrolled House Bill 2499 (HB 2499-A) Page 12
chapter and of the federal Act, and that they otherwise comply
with the provisions of this chapter { + and sections 1 to 8,
chapter 87, Oregon Laws 2010, + } in the conduct of their
professional activities.
{ - (d) - } { + (e) + } Establish, keep current and, no
less than annually, transmit to the Appraisal Subcommittee a
roster listing state certified appraisers and state licensed
appraisers.
{ - (e) - } { + (f) + } Collect and remit { - annual
registry - } fees as required { - by - } { + under + } ORS
674.330 { + and section 19 of this 2011 Act + }.
(2) Rules adopted by the Appraiser Certification and Licensure
Board to govern real estate appraiser certification and licensure
shall conform with the requirements of the federal Act. The
board shall adopt rules including but not limited to:
(a) Establishing programs for the certification, licensure or
registration of individuals who engage in real estate appraisal
activity.
(b) Establishing educational requirements for certification or
licensure of appraisers and for the registration of appraiser
assistants that ensure protection of the public interest and
comply with the requirements of the federal Act. Education
requirements for state licensed appraisers and state certified
appraisers must meet the minimum criteria established by the
Appraiser Qualification Board of the Appraisal Foundation.
(c) Establishing a professional code of responsibility for
state certified appraisers and state licensed appraisers that is
in conformance with the federal Act.
(d) Providing for registration of out-of-state appraisers as
provided for under ORS 674.120.
(3) An individual may not be a state licensed appraiser or a
state certified appraiser unless the individual has achieved a
passing grade upon a suitable examination equivalent to the
Uniform Certification Examination issued or endorsed by the
Appraisal Qualification Board of the Appraisal Foundation.
(4) The Appraiser Certification and Licensure Board, acting
through the administrator, may issue subpoenas to compel the
attendance of witnesses and the production of papers, books,
records, correspondence, agreements, memoranda and other material
or relevant documents in investigations or proceedings pertaining
to the powers and duties of the board.
(5) In the case of a person who refuses to respond to a
subpoena issued by the Appraiser Certification and Licensure
Board, the judge of the circuit court, on the application of the
board administrator, shall order compliance with the board
subpoena in the same manner as a proceeding for contempt for
failure to respond to a subpoena of the court.
{ +
UNIT CAPTIONS + }
SECTION 24. { + The unit captions used in this 2011 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2011 Act. + }
{ +
APPLICABILITY + }
Enrolled House Bill 2499 (HB 2499-A) Page 13
SECTION 25. { + The amendments to section 2, chapter 87,
Oregon Laws 2010, by section 9 of this 2011 Act apply to
applications for registration of an appraisal management company
submitted on or after January 1, 2012. + }
{ +
OPERATIVE DATE + }
SECTION 26. { + (1) Sections 1 to 7 and 17 to 19 of this 2011
Act and the amendments to ORS 674.305, 674.310 and 705.141 and
sections 1 to 9, chapter 87, Oregon Laws 2010, by sections 8 to
15 and 20 to 23 of this 2011 Act become operative on January 1,
2012.
(2) The Department of Consumer and Business Services and the
Appraiser Certification and Licensure Board may take any action
before the operative date specified in subsection (1) of this
section that is necessary to enable the department and board to
exercise, on and after the operative date specified in subsection
(1) of this section, all of the duties, functions and powers
conferred on the department and board by sections 1 to 7 and 17
to 19 of this 2011 Act and the amendments to ORS 674.305, 674.310
and 705.141 and sections 1 to 9, chapter 87, Oregon Laws 2010, by
sections 8 to 15 and 20 to 23 of this 2011 Act. + }
{ +
EMERGENCY CLAUSE + }
SECTION 27. { + This 2011 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2011 Act takes effect on
its passage. + }
----------
Passed by House April 25, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate May 11, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2499 (HB 2499-A) Page 14
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2499 (HB 2499-A) Page 15
