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S.B. No. 381
AN ACT
relating to the regulation of real estate appraisers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1103.003, Occupations Code, is amended
by adding Subdivisions (2-a), (6-a), and (6-b) to read as follows:
(2-a) "Appraisal Standards Board" means the Appraisal
Standards Board of the Appraisal Foundation, or its successor.
(6-a) "Federally related transaction" means a real
estate-related transaction that:
(A) requires the services of an appraiser; and
(B) is engaged in, contracted for, or regulated
by a federal financial institution regulatory agency.
(6-b) "Federal financial institution regulatory
agency" means:
(A) the Board of Governors of the Federal Reserve
System;
(B) the Federal Deposit Insurance Corporation;
(C) the Office of the Comptroller of the
Currency;
(D) the Office of Thrift Supervision;
(E) the National Credit Union Administration; or
(F) the successors of any of those agencies.
SECTION 2. Section 1103.151, Occupations Code, is amended
to read as follows:
Sec. 1103.151. RULES RELATING TO CERTIFICATES AND LICENSES.
The board may adopt:
(1) rules for certifying or licensing an appraiser or
approving an appraiser trainee in this state that are in accordance
with this chapter and consistent with[, but not more stringent
than,] applicable federal law;
(2) rules relating to the education and experience
required for certifying or licensing an appraiser or approving an
appraiser trainee that are consistent with[, but not more stringent
than,] the guidelines recognized by the Appraiser Qualifications
Board [Appraisal Subcommittee];
(3) rules relating to the examination required by
Subchapter F; and
(4) rules relating to procedures for the timely
renewal of a certificate or license.
SECTION 3. Section 1103.152, Occupations Code, is amended
to read as follows:
Sec. 1103.152. APPRAISER CERTIFICATE AND LICENSE
CATEGORIES. [(a) In this section, "Appraisal Standards Board"
means the Appraisal Standards Board of the Appraisal Foundation, or
its successor.
[(b)] The board may:
(1) establish certificate and license categories that
are consistent with the categories recognized by the Appraiser
Qualifications Board[, the Appraisal Standards Board, and the
Appraisal Subcommittee]; and
(2) prescribe qualifications for each category that
are consistent with [not more stringent than] the qualifications
established for that category by the Appraiser Qualifications
Board[, the Appraisal Standards Board, and the Appraisal
Subcommittee].
SECTION 4. Section 1103.153, Occupations Code, is amended
to read as follows:
Sec. 1103.153. RULES RELATING TO CONTINUING EDUCATION. The
board may adopt rules relating to continuing education requirements
for a certified or licensed appraiser or an approved appraiser
trainee.
SECTION 5. Section 1103.154, Occupations Code, is amended
to read as follows:
Sec. 1103.154. RULES RELATING TO PROFESSIONAL CONDUCT. The
board may adopt:
(1) rules as necessary to conform to the minimum
written standards of the Appraisal Standards Board [Subcommittee]
by incorporating the Uniform Standards of Professional Appraisal
Practice;
(2) rules requiring a certified or licensed appraiser
to comply with standards of competency, professional conduct, and
ethics [generally accepted by the Appraisal Subcommittee and]
prescribed by the Uniform Standards of Professional Appraisal
Practice, as adopted by the Appraisal Standards Board [Foundation];
and
(3) rules relating to the standards for the
development of an appraisal and the conveyance of an appraisal
report by a certified or licensed appraiser that are consistent
with the Uniform Standards of Professional Appraisal Practice.
SECTION 6. Section 1103.202, Occupations Code, is amended
to read as follows:
Sec. 1103.202. ELIGIBILITY REQUIREMENTS FOR CERTIFICATE.
To be eligible for a certificate under this chapter, an applicant
must:
(1) pass the examination required by Subchapter F;
(2) successfully complete the number and type of
classroom hours or other educational qualifications required by the
Appraiser Qualifications Board [guidelines of the Appraisal
Subcommittee];
(3) provide evidence satisfactory to the board that
the applicant has at least the minimum number of hours of experience
in performing appraisals over the specified number of calendar
years as required by the Appraiser Qualifications Board [guidelines
of the Appraisal Subcommittee]; and
(4) satisfy the board as to the applicant's honesty,
trustworthiness, and integrity.
SECTION 7. Section 1103.203, Occupations Code, is amended
to read as follows:
Sec. 1103.203. ELIGIBILITY REQUIREMENTS FOR LICENSE. To be
eligible for a license under this chapter, an applicant must:
(1) pass the examination required by Subchapter F;
(2) successfully complete the number and type of [at
least 75] classroom hours or other educational qualifications
required by the guidelines of the Appraiser Qualifications Board
[in subjects determined by the board to be related to real estate
appraisal, including at least 15 classroom hours covering the
Uniform Standards of Professional Appraisal Practice];
(3) provide evidence satisfactory to the board that
the applicant has at least the minimum number of hours of experience
in performing appraisals over the specified number of calendar
years as required by the guidelines of the Appraiser Qualifications
Board [the equivalent of 2,000 hours of experience in performing
appraisals]; and
(4) satisfy the board as to the applicant's honesty,
trustworthiness, and integrity.
SECTION 8. Subsection (c), Section 1103.204, Occupations
Code, is amended to read as follows:
(c) The board shall give an applicant for a certificate or
license credit toward fulfilling the requirements of Sections
1103.202(2) and 1103.203(2) for classroom hours taken in the course
of becoming licensed as a real estate broker or salesperson or for
professional development or continuing education courses taken,
whether the classroom hours or courses are taken by a person as a
real estate broker or salesperson or as an employee of a financial
institution engaged in real estate-related financial transactions,
if the classroom hours or courses satisfy the requirements
established by the guidelines recognized by the Appraiser
Qualifications Board [Appraisal Subcommittee].
SECTION 9. Subsections (b) and (c), Section 1103.205,
Occupations Code, are amended to read as follows:
(b) An applicant for a certificate or license must provide
an affidavit on a form prescribed by the board stating that the
applicant has the required number of hours of experience in
performing appraisals as [established by the guidelines]
recognized by the Appraiser Qualifications Board [Appraisal
Subcommittee].
(c) For the purpose of determining the qualifications of an
applicant for a certificate or license under this chapter,
acceptable appraisal experience includes:
(1) any one or any combination of the categories
recognized by the Appraiser Qualifications Board [guidelines of the
Appraisal Subcommittee]; and
(2) experience as a real estate lending officer of a
financial institution or as a real estate broker that includes the
actual performance or technical review of real estate appraisals.
SECTION 10. Subsections (a), (c), and (d), Section
1103.209, Occupations Code, are amended to read as follows:
(a) The board may issue a certificate or license under terms
adopted by the board to an applicant who is certified or licensed
under the laws of another state having certification or licensing
requirements that the board determines have not been disapproved by
the Appraiser Qualifications Board [Appraisal Subcommittee]. The
terms must comply with the minimum criteria for obtaining a
certificate or license recognized by the Appraiser Qualifications
Board [Appraisal Subcommittee].
(c) The application form submitted for a reciprocal
certificate or license under this section must be comparable to the
form required of a resident of this state applying for a similar
certificate or license [by the state in which the appraiser is
certified or licensed].
(d) The fee charged to an appraiser from another state for a
reciprocal certificate or license under this section must be
comparable to the fee required of a resident of this state applying
for a similar certificate or license [by the state in which the
appraiser is certified or licensed]. A person who obtains a
certificate or license by reciprocity under this section must pay
the federal registry fee and any other fee the board imposes.
SECTION 11. Subsections (b) and (c), Section 1103.211,
Occupations Code, are amended to read as follows:
(b) A person may renew a certificate or license by:
(1) paying the renewal fee; and
(2) providing evidence satisfactory to the board that
the person has completed continuing education requirements that
comply with the guidelines recognized by the Appraiser
Qualifications Board [Appraisal Subcommittee] and that are imposed
by rule under this chapter.
(c) For purposes of Subsection (b)(2), the board shall
accept as continuing education any educational offering that
complies with the guidelines recognized by the Appraiser
Qualifications Board [Appraisal Subcommittee] that a certified or
licensed appraiser was awarded by a national appraiser organization
approved by the board as a provider of qualifying appraisal
education.
SECTION 12. Subsection (b), Section 1103.251, Occupations
Code, is amended to read as follows:
(b) The examination must be:
(1) written; and
(2) approved by the [Appraisal Foundation; and
[(3) consistent with, but not more stringent than, the
Uniform State Certification/Licensing Examination guidelines
endorsed by the] Appraiser Qualifications Board.
SECTION 13. Section 1103.254, Occupations Code, is amended
to read as follows:
Sec. 1103.254. EXAMINATION APPLICATION. (a) An
application to take the examination must be on a form prescribed by
the board.
(b) An application is active for one year beginning on the
date the application is initially accepted. If an applicant does
not pass the examination before the first anniversary of the date of
application, the applicant must submit a new application and pay
the appropriate fees.
SECTION 14. Section 1103.256, Occupations Code, is amended
to read as follows:
Sec. 1103.256. MINIMUM PASSING GRADE REQUIRED. To pass the
examination, an applicant for a certificate or license must achieve
the minimum score required [or approved] by the Appraiser
Qualifications Board[, whichever is lower].
SECTION 15. Subsection (c), Section 1103.257, Occupations
Code, is amended to read as follows:
(c) If requested in writing by a person who fails an
examination, the board shall provide to the person an analysis of
the person's performance on the examination. The request must be
accompanied by a [notarized] statement identifying the person and a
fee in an amount determined by the board. The board shall release
the analysis directly to the person requesting the analysis.
SECTION 16. Section 1103.258, Occupations Code, is amended
to read as follows:
Sec. 1103.258. REEXAMINATION. (a) An applicant who fails
an examination may apply to retake the examination on payment of an
additional examination fee.
(b) An applicant who has not successfully completed the
examination before the first anniversary of the date the
application was initially accepted by the board must submit a new
application and pay the required application fee [The applicant
must apply to retake the examination not later than the first
anniversary of the date of the examination the applicant failed].
SECTION 17. Section 1103.303, Occupations Code, is amended
to read as follows:
Sec. 1103.303. ELIGIBILITY REQUIREMENTS FOR REGISTRATION.
A person is eligible to register with the board if:
(1) the certification and licensing program under
which the person is certified or licensed by another state has not
been disapproved by the Appraiser Qualifications Board [Appraisal
Subcommittee]; and
(2) the person's appraisal business in this state does
not exceed six months [60 days].
SECTION 18. Section 1103.353, Occupations Code, is amended
to read as follows:
Sec. 1103.353. ELIGIBILITY REQUIREMENTS FOR APPRAISER
TRAINEE. To be eligible for approval as an appraiser trainee, an
applicant must:
(1) be at least 18 years of age;
(2) be a citizen of the United States or a lawfully
admitted alien;
(3) have been a resident of this state for the 60 days
preceding the date the application is filed; [and]
(4) satisfy the board as to the applicant's honesty,
trustworthiness, and integrity; and
(5) meet all other qualifications established by the
board.
SECTION 19. Subsections (a) and (b), Section 1103.354,
Occupations Code, are amended to read as follows:
(a) An appraiser trainee approved by the board may perform
an appraisal under the direction of a sponsor or authorized
supervisor of the trainee.
(b) The sponsor or authorized supervisor shall sign each
report prepared by the appraiser trainee performing an appraisal
under the direction of the sponsor or authorized supervisor. The
[If an appraiser trainee has more than one sponsor, one sponsor
shall sign the reports prepared by the appraiser trainee. A]
sponsor or authorized supervisor [who signs a report] is
responsible to the public and to the board for the appraiser
trainee's conduct.
SECTION 20. Subchapter I, Chapter 1103, Occupations Code,
is amended by adding Section 1103.405 to read as follows:
Sec. 1103.405. PROFESSIONAL STANDARDS. A person who holds
a license, certificate, or approval issued under this chapter shall
comply with:
(1) the most current edition of the Uniform Standards
of Professional Appraisal Practice adopted by the Appraisal
Standards Board of the Appraisal Foundation; or
(2) other standards provided by board rule that are at
least as stringent as the Uniform Standards of Professional
Appraisal Practice.
SECTION 21. Section 1103.451, Occupations Code, is amended
by amending Subsection (a) and adding Subsection (e) to read as
follows:
(a) Any person, including a member of the board, may
initiate the complaint process under this subchapter by filing with
the board a written [an affidavit stating the] complaint on a form
prescribed by the board.
(e) A complaint alleging a violation by a person licensed,
certified, or approved under this chapter may not be terminated
solely on the basis that the person fails to renew the certificate,
license, or approval.
SECTION 22. Subsection (a), Section 1103.004, Occupations
Code, is repealed.
SECTION 23. The Texas Appraiser Licensing and Certification
Board shall adopt rules under this Act not later than January 1,
2006.
SECTION 24. The changes in law made by this Act with regard
to the requirements for issuing a license or certificate under
Chapter 1103, Occupations Code, apply only to an application filed
with the Texas Appraiser Licensing and Certification Board on or
after March 1, 2006. An application for a license or certificate
filed before that date is governed by the law in effect on the date
the application was filed, and the former law is continued in effect
for that purpose.
SECTION 25. The change in law made by the amendment to
Section 1103.451, Occupations Code, applies to a complaint filed
under that section that is pending on the effective date or filed
with the Texas Appraiser Licensing and Certification Board on or
after the effective date of this Act.
SECTION 26. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 381 passed the Senate on
March 31, 2005, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 381 passed the House on
May 20, 2005, by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor