HB 159

1	A bill to be entitled
2	An act relating to regulation of real estate appraisers;
3	amending s. 475.611, F.S.; revising and providing
4	definitions; amending s. 475.612, F.S.; revising
5	requirements relating to work performed by persons who are
6	not certified, licensed, and registered; providing
7	requirements relating to issuance of appraisal reports and
8	compensation of appraisers, including trainees; amending
9	s. 475.615, F.S., relating to qualifications for
10	registration, licensure, or certification; revising
11	education and experience requirements; amending s.
12	475.617, F.S.; removing obsolete provisions establishing
13	education and experience requirements for licensure as an
14	appraiser; revising education and experience requirements
15	for certification as a residential appraiser or general
16	appraiser; amending s. 475.6221, F.S.; prohibiting
17	supervisory appraisers from certain employment; amending
18	s. 475.6222, F.S.; requiring supervisory appraisers to
19	provide direct training to registered trainee appraisers;
20	amending s. 475.623, F.S.; requiring appraisers to furnish
21	their firm or business name and any change in that name to
22	the Department of Business and Professional Regulation;
23	providing an effective date.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1.  Subsection (1) of section 475.611, Florida
28	Statutes, is amended to read:
29	475.611  Definitions.--
30	(1)  As used in this part, the term:
31	(a)  "Appraisal" or "appraisal services" means the services
32	provided by certified or licensed appraisers or registered
33	trainee appraisers, and includes:
34	1.  "Appraisal assignment" denotes an engagement for which
35	a person is employed or retained to act, or could be perceived
36	by third parties or the public as acting, as an agent or a
37	disinterested third party in rendering an unbiased analysis,
38	opinion, review, or conclusion relating to the nature, quality,
39	value, or utility of specified interests in, or aspects of,
40	identified real property.
41	2.  "Analysis assignment" denotes appraisal services that
42	relate to the employer's or client's individual needs or
43	investment objectives and includes specialized marketing,
44	financing, and feasibility studies as well as analyses,
45	opinions, and conclusions given in connection with activities
46	such as real estate brokerage, mortgage banking, real estate
47	counseling, or real estate consulting.
48	3.  "Appraisal review assignment" denotes an engagement for
49	which an appraiser is employed or retained to develop and
50	communicate an opinion about the quality of another appraiser's
51	appraisal, appraisal report, or work. An appraisal review may or
52	may not contain the reviewing appraiser's opinion of value.
53	(b)  "Appraisal Foundation" or "foundation" means the
54	Appraisal Foundation established on November 20, 1987, as a not-
55	for-profit corporation under the laws of Illinois.
56	(c)  "Appraisal report" means any communication, written or
57	oral, of an appraisal, appraisal review, appraisal consulting
58	service, analysis, opinion, or conclusion relating to the
59	nature, quality, value, or utility of a specified interest in,
60	or aspect of, identified real property, and includes any report
61	communicating an appraisal analysis, opinion, or conclusion of
62	value, regardless of title. However, in order to be recognized
63	in a federally related transaction, an appraisal report must be
64	written.
65	(d)  "Appraisal review" means the act or process of
66	developing and communicating an opinion about the quality of
67	another appraiser's appraisal, appraisal report, or work.
68	(e)  "Appraisal subcommittee" means the designees of the
69	heads of the federal financial institutions regulatory agencies
70	established by the Federal Financial Institutions Examination
71	Council Act of 1978 (12 U.S.C. ss. 3301 et seq.), as amended.
72	(f)  "Appraiser" means any person who is a registered
73	trainee real estate appraiser, licensed real estate appraiser,
74	or a certified real estate appraiser. An appraiser renders a
75	professional service and is a professional within the meaning of
76	s. 95.11(4)(a).
77	(g)  "Board" means the Florida Real Estate Appraisal Board
78	established under this section.
79	(h)  "Certified general appraiser" means a person who is
80	certified by the department as qualified to issue appraisal
81	reports for any type of real property.
82	(i)  "Certified residential appraiser" means a person who
83	is certified by the department as qualified to issue appraisal
84	reports for residential real property of one to four residential
85	units, without regard to transaction value or complexity, or
86	real property as may be authorized by federal regulation.
87	(j)  "Department" means the Department of Business and
88	Professional Regulation.
89	(k)  "Direct supervision" means the degree of supervision
90	required of a supervisory appraiser overseeing the work of a
91	registered trainee appraiser by which the supervisory appraiser
92	has control over and detailed professional knowledge of the work
93	being done. Direct supervision is achieved when a registered
94	trainee appraiser has regular direction, guidance, and support
95	from a supervisory appraiser who has the competencies as
96	determined by rule of the board.
97	(l)(k)  "Federally related transaction" means any real
98	estate-related financial transaction which a federal financial
99	institutions regulatory agency or the Resolution Trust
100	Corporation engages in, contracts for, or regulates, and which
101	requires the services of a state-licensed or state-certified
102	appraiser.
103	(m)(l)  "Licensed appraiser" means a person who is licensed
104	by the department as qualified to issue appraisal reports for
105	residential real property of one to four residential units or on
106	such real estate or real property as may be authorized by
107	federal regulation. After July 1, 2003, the department shall not
108	issue licenses for the category of licensed appraiser.
109	(n)(m)  "Registered trainee appraiser" means a person who
110	is registered with the department as qualified to perform
111	appraisal services only under the direct supervision of a
112	licensed or certified appraiser. A registered trainee appraiser
113	may accept appraisal assignments only from her or his primary or
114	secondary supervisory appraiser.
115	(o)(n)  "Supervisory appraiser" means a licensed appraiser,
116	a certified residential appraiser, or a certified general
117	appraiser responsible for the direct supervision of one or more
118	registered trainee appraisers and fully responsible for
119	appraisals and appraisal reports prepared by those registered
120	trainee appraisers. The board, by rule, shall determine the
121	responsibilities of a supervisory appraiser, the geographic
122	proximity required, the minimum qualifications and standards
123	required of a licensed or certified appraiser before she or he
124	may act in the capacity of a supervisory appraiser, and the
125	maximum number of registered trainee appraisers to be supervised
126	by an individual supervisory appraiser.
127	(p)  "Training" means the process of providing for and
128	making available to a registered trainee appraiser, under direct
129	supervision, a planned, prepared, and coordinated program, or
130	routine of instruction and education, in appraisal professional
131	and technical skills.
132	(q)(o)  "Uniform Standards of Professional Appraisal
133	Practice" means the most recent standards approved and adopted
134	by the Appraisal Standards Board of the Appraisal Foundation.
135	(r)(p)  "Valuation services" means services pertaining to
136	aspects of property value and includes such services performed
137	by certified appraisers, registered trainee appraisers, and
138	others.
139	(s)(q)  "Work file" means the documentation necessary to
140	support an appraiser's analysis, opinions, and conclusions.
141	Section 2.  Section 475.612, Florida Statutes, is amended
142	to read:
143	475.612  Certification, licensure, or registration
144	required.--
145	(1)  A person may not use the title "certified real estate
146	appraiser," "licensed real estate appraiser," or "registered
147	trainee real estate appraiser," or any abbreviation or words to
148	that effect, or issue an appraisal report in connection with any
149	federally related transaction, unless such person is certified,
150	licensed, or registered by the department under this part.
151	However, the work upon which an appraisal report is based may be
152	performed by a person who is not a certified or licensed
153	appraiser or registered trainee appraiser if the work report is
154	supervised and approved, and the report is signed, by a
155	certified or licensed appraiser who has full responsibility for
156	all requirements of the report and valuation service. Only a
157	certified or licensed appraiser may issue an appraisal report
158	and receive direct compensation for providing valuation services
159	for the appraisal report. A registered trainee appraiser may
160	only receive compensation from his or her authorized certified
161	or licensed appraiser.
162	(2)  This section does not preclude a Florida licensed real
163	estate broker, sales associate, or broker associate who is not a
164	Florida certified or licensed real estate appraiser or
165	registered trainee real estate appraiser from providing
166	valuation services for compensation. Such persons may continue
167	to provide valuation services for compensation so long as they
168	do not represent themselves as certified, licensed, or
169	registered under this part.
170	(3)  This section does not apply to a real estate broker or
171	sales associate who, in the ordinary course of business,
172	performs a comparative market analysis, gives a price opinion,
173	or gives an opinion of the value of real estate. However, in no
174	event may this comparative market analysis, price opinion, or
175	opinion of value of real estate be referred to or construed as
176	an appraisal.
177	(4)  This section does not prevent any state court or
178	administrative law judge from certifying as an expert witness in
179	any legal or administrative proceeding an appraiser who is not
180	certified, licensed, or registered; nor does it prevent any
181	appraiser from testifying, with respect to the results of an
182	appraisal.
183	(5)  This section does not apply to any full-time graduate
184	student who is enrolled in a degree program in appraising at a
185	college or university in this state, if the student is acting
186	under the direct supervision of a certified or licensed
187	appraiser and is engaged only in appraisal activities related to
188	the approved degree program. Any appraisal report by the student
189	must be issued in the name of the supervising individual who is
190	responsible for the report's content.
191	(6)  This section does not apply to any employee of a
192	local, state, or federal agency who performs appraisal services
193	within the scope of her or his employment. However, this
194	exemption does not apply where any local, state, or federal
195	agency requires an employee to be registered, licensed, or
196	certified to perform appraisal services.
197	Section 3.  Subsection (1) of section 475.615, Florida
198	Statutes, is amended to read:
199	475.615  Qualifications for registration, licensure, or
200	certification.--
201	(1)  Any person desiring to act as a registered trainee
202	appraiser or as a licensed or certified appraiser must make
203	application in writing to the department in such form and detail
204	as the board shall prescribe. Each applicant must be at least 18
205	years of age and hold the level of education and experience
206	required for the type of license being sought a high school
207	diploma or its equivalent. At the time of application, a person
208	must furnish evidence satisfactory to the board of successful
209	completion of required education and evidence of required
210	experience, if any.
211	Section 4.  Section 475.617, Florida Statutes, is amended
212	to read:
213	475.617  Education and experience requirements.--
214	(1)  To be registered as a trainee appraiser, an applicant
215	must present evidence satisfactory to the board that she or he
216	has successfully completed at least 75 hours of approved
217	academic courses in subjects related to real estate appraisal,
218	which shall include coverage of the Uniform Standards of
219	Professional Appraisal Practice from a nationally recognized or
220	state-recognized appraisal organization, career center,
221	accredited community college, college, or university, state or
222	federal agency or commission, or proprietary real estate school
223	that holds a permit pursuant to s. 475.451. The board may
224	increase the required number of hours to not more than 100
225	hours. A classroom hour is defined as 50 minutes out of each 60-
226	minute segment. Past courses may be approved on an hour-for-hour
227	basis.
228	(2)  To be licensed as an appraiser, an applicant must
229	present evidence satisfactory to the board that she or he:
230	(a)  Has 2 years of experience in real property appraisal
231	as defined by rule.
232	(b)  Has successfully completed at least 90 classroom
233	hours, inclusive of examination, of approved academic courses in
234	subjects related to real estate appraisal, which shall include
235	coverage of the Uniform Standards of Professional Appraisal
236	Practice from a nationally recognized or state-recognized
237	appraisal organization, career center, accredited community
238	college, college, or university, state or federal agency or
239	commission, or proprietary real estate school that holds a
240	permit pursuant to s. 475.451. The board may increase the
241	required number of hours to not more than 120 hours. A classroom
242	hour is defined as 50 minutes out of each 60-minute segment.
243	Past courses may be approved by the board and substituted on an
244	hour-for-hour basis.
245	(2)(3)  To be certified as a residential appraiser, an
246	applicant must present satisfactory evidence to the board that
247	she or he has met the minimum education and experience
248	requirements prescribed by the board. The board shall prescribe
249	education and experience requirements that meet or exceed the
250	real property appraiser qualification criteria established by
251	the Appraisal Qualifications Board of the Appraisal Foundation.:
252	(a)  Has at least 2,500 hours of experience obtained over a
253	24-month period in real property appraisal as defined by rule.
254	(b)  Has successfully completed at least 120 classroom
255	hours, inclusive of examination, of approved academic courses in
256	subjects related to real estate appraisal, which shall include
257	coverage of the Uniform Standards of Professional Appraisal
258	Practice from a nationally recognized or state-recognized
259	appraisal organization, career center, accredited community
260	college, college, or university, state or federal agency or
261	commission, or proprietary real estate school that holds a
262	permit pursuant to s. 475.451. The board may increase the
263	required number of hours to not more than 165 hours. A classroom
264	hour is defined as 50 minutes out of each 60-minute segment.
265	Past courses may be approved by the board and substituted on an
266	hour-for-hour basis.
267	(3)(4)  To be certified as a general appraiser, an
268	applicant must present evidence satisfactory to the board that
269	she or he has met the minimum education and experience
270	requirements prescribed by the board. The board shall prescribe
271	education and experience requirements that meet or exceed the
272	real property appraiser qualification criteria established by
273	the Appraisal Qualifications Board of the Appraisal Foundation.:
274	(a)  Has at least 3,000 hours of experience obtained over a
275	30-month period in real property appraisal as defined by rule.
276	(b)  Has successfully completed at least 180 classroom
277	hours, inclusive of examination, of approved academic courses in
278	subjects related to real estate appraisal, which shall include
279	coverage of the Uniform Standards of Professional Appraisal
280	Practice from a nationally recognized or state-recognized
281	appraisal organization, career center, accredited community
282	college, college, or university, state or federal agency or
283	commission, or proprietary real estate school that holds a
284	permit pursuant to s. 475.451. The board may increase the
285	required number of hours to not more than 225 hours. A classroom
286	hour is defined as 50 minutes out of each 60-minute segment.
287	Past courses may be approved by the board and substituted on an
288	hour-for-hour basis.
289	(4)(5)  Each applicant must furnish, under oath, a detailed
290	statement of the experience for each year of experience she or
291	he claims. Upon request, the applicant shall furnish to the
292	board, for its examination, copies of appraisal reports or file
293	memoranda to support the claim for experience.
294	Section 5.  Subsection (3) is added to section 475.6221,
295	Florida Statutes, to read:
296	475.6221  Employment of and by registered trainee real
297	estate appraisers.--
298	(3)  A supervisory appraiser may not be employed by a
299	trainee or by a company, firm, or partnership in which the
300	trainee has a controlling interest.
301	Section 6.  Section 475.6222, Florida Statutes, is amended
302	to read:
303	475.6222  Supervision and training of registered trainee
304	appraisers.--The primary or secondary supervisory appraiser of a
305	registered trainee appraiser shall provide direct supervision
306	and training to the registered trainee appraiser. The role and
307	responsibility of the supervisory appraiser is determined by
308	rule of the board.
309	Section 7.  Section 475.623, Florida Statutes, is amended
310	to read:
311	475.623  Registration of firm or business name and office
312	location.--Each appraiser registered, licensed, or certified
313	under this part shall furnish in writing to the department each
314	firm or business name and address from which she or he operates
315	in the performance of appraisal services. Each appraiser must
316	notify the department of any change of firm or business name and
317	any change of address within 10 days on a form provided by the
318	department.
319	Section 8.  This act shall take effect July 1, 2006.

CODING: Words stricken are deletions; words underlined are additions.