CS for CS for SB's 2210 & 1552                   First Engrossed
       
       
       
       
       
       
       
       
       20102210e1
       
    1                        A bill to be entitled                      
    2         An act relating to the regulation of real estate
    3         appraisers and appraisal management companies;
    4         amending s. 475.611, F.S.; providing definitions;
    5         amending s. 475.613, F.S.; increasing the number of
    6         members on the Florida Real Estate Appraisal Board;
    7         amending s. 475.614, F.S.; requiring the Florida Real
    8         Estate Appraisal Board to adopt certain rules;
    9         amending s. 475.6147, F.S.; requiring application,
   10         registration, and renewal fees for appraisal
   11         management companies; creating s. 475.6235, F.S.;
   12         requiring appraisal management companies to register
   13         with the Department of Business and Professional
   14         Regulation; specifying application requirements and
   15         procedures; requiring the fingerprinting and criminal
   16         history records checks of, and providing
   17         qualifications for, certain persons who control
   18         appraisal management companies; requiring nonresident
   19         appraisal management companies to consent to
   20         commencement of actions in this state; requiring the
   21         department to adopt rules relating to the renewal of
   22         registrations; amending s. 475.624, F.S.; conforming
   23         provisions to changes made by the act; creating s.
   24         475.6245, F.S.; providing for the discipline of
   25         appraisal management companies by the board; amending
   26         s. 475.626, F.S.; providing penalties; conforming
   27         provisions to changes made by the act; amending s.
   28         475.629, F.S.; revising requirements for the retention
   29         of appraisal records; requiring appraisal management
   30         companies to follow such requirements; providing an
   31         effective date.
   32  
   33  Be It Enacted by the Legislature of the State of Florida:
   34  
   35         Section 1. Subsection (1) of section 475.611, Florida
   36  Statutes, is amended to read:
   37         475.611 Definitions.—
   38         (1) As used in this part, the term:
   39         (a) “Appraisal” or “appraisal services” means the services
   40  provided by certified or licensed appraisers or registered
   41  trainee appraisers, and includes:
   42         1. “Appraisal assignment” denotes an engagement for which a
   43  person is employed or retained to act, or could be perceived by
   44  third parties or the public as acting, as an agent or a
   45  disinterested third party in rendering an unbiased analysis,
   46  opinion, review, or conclusion relating to the nature, quality,
   47  value, or utility of specified interests in, or aspects of,
   48  identified real property.
   49         2. “Analysis assignment” denotes appraisal services that
   50  relate to the employer’s or client’s individual needs or
   51  investment objectives and includes specialized marketing,
   52  financing, and feasibility studies as well as analyses,
   53  opinions, and conclusions given in connection with activities
   54  such as real estate brokerage, mortgage banking, real estate
   55  counseling, or real estate consulting.
   56         3. “Appraisal review assignment” denotes an engagement for
   57  which an appraiser is employed or retained to develop and
   58  communicate an opinion about the quality of another appraiser’s
   59  appraisal, appraisal report, or work. An appraisal review may or
   60  may not contain the reviewing appraiser’s opinion of value.
   61         (b) “Appraisal Foundation” or “foundation” means the
   62  Appraisal Foundation established on November 20, 1987, as a not
   63  for-profit corporation under the laws of Illinois.
   64         (c) “Appraisal management company” means a person who
   65  performs appraisal management services.
   66         (d) “Appraisal management services” means the coordination
   67  or management of appraisal services for compensation by:
   68         1. Employing, contracting with, or otherwise retaining one
   69  or more appraisers to perform appraisal services for a client;
   70  or
   71         2. Acting as a broker or intermediary between a client and
   72  one or more appraisers to facilitate the client’s employing,
   73  contracting with, or otherwise retaining the appraisers.
   74         (e)(c) “Appraisal report” means any communication, written
   75  or oral, of an appraisal, appraisal review, appraisal consulting
   76  service, analysis, opinion, or conclusion relating to the
   77  nature, quality, value, or utility of a specified interest in,
   78  or aspect of, identified real property, and includes any report
   79  communicating an appraisal analysis, opinion, or conclusion of
   80  value, regardless of title. However, in order to be recognized
   81  in a federally related transaction, an appraisal report must be
   82  written.
   83         (f)(d) “Appraisal review” means the act or process of
   84  developing and communicating an opinion about the quality of
   85  another appraiser’s appraisal, appraisal report, or work.
   86         (g)(e) “Appraisal subcommittee” means the designees of the
   87  heads of the federal financial institutions regulatory agencies
   88  established by the Federal Financial Institutions Examination
   89  Council Act of 1978 (12 U.S.C. ss. 3301 et seq.), as amended.
   90         (h)(f) “Appraiser” means any person who is a registered
   91  trainee real estate appraiser, a licensed real estate appraiser,
   92  or a certified real estate appraiser. An appraiser renders a
   93  professional service and is a professional within the meaning of
   94  s. 95.11(4)(a).
   95         (i) “Appraiser panel” means a group of appraisers selected
   96  by an appraisal management company to perform appraisal services
   97  for clients on behalf of the company.
   98         (j)(g) “Board” means the Florida Real Estate Appraisal
   99  Board established under this section.
  100         (k)(h) “Certified general appraiser” means a person who is
  101  certified by the department as qualified to issue appraisal
  102  reports for any type of real property.
  103         (l)(i) “Certified residential appraiser” means a person who
  104  is certified by the department as qualified to issue appraisal
  105  reports for residential real property of one to four residential
  106  units, without regard to transaction value or complexity, or
  107  real property as may be authorized by federal regulation.
  108         (m) “Client” means a person who contracts with an appraiser
  109  or appraisal management company for the performance of appraisal
  110  services.
  111         (n)(j) “Department” means the Department of Business and
  112  Professional Regulation.
  113         (o)(k) “Direct supervision” means the degree of supervision
  114  required of a supervisory appraiser overseeing the work of a
  115  registered trainee appraiser by which the supervisory appraiser
  116  has control over and detailed professional knowledge of the work
  117  being done. Direct supervision is achieved when a registered
  118  trainee appraiser has regular direction, guidance, and support
  119  from a supervisory appraiser who has the competencies as
  120  determined by rule of the board.
  121         (p)(l) “Federally related transaction” means any real
  122  estate-related financial transaction which a federal financial
  123  institutions regulatory agency or the Resolution Trust
  124  Corporation engages in, contracts for, or regulates, and which
  125  requires the services of a state-licensed or state-certified
  126  appraiser.
  127         (q)(m) “Licensed appraiser” means a person who is licensed
  128  by the department as qualified to issue appraisal reports for
  129  residential real property of one to four residential units or on
  130  such real estate or real property as may be authorized by
  131  federal regulation. After July 1, 2003, the department shall not
  132  issue licenses for the category of licensed appraiser.
  133         (r)(n) “Registered trainee appraiser” means a person who is
  134  registered with the department as qualified to perform appraisal
  135  services only under the direct supervision of a licensed or
  136  certified appraiser. A registered trainee appraiser may accept
  137  appraisal assignments only from her or his primary or secondary
  138  supervisory appraiser.
  139         (s) “Signature” means personalized evidence indicating
  140  authentication of work performed by an appraiser and the
  141  acceptance of responsibility for the content of an appraisal,
  142  appraisal review, or appraisal consulting service or conclusions
  143  in an appraisal report.
  144         (t)(o) “Supervisory appraiser” means a licensed appraiser,
  145  a certified residential appraiser, or a certified general
  146  appraiser responsible for the direct supervision of one or more
  147  registered trainee appraisers and fully responsible for
  148  appraisals and appraisal reports prepared by those registered
  149  trainee appraisers. The board, by rule, shall determine the
  150  responsibilities of a supervisory appraiser, the geographic
  151  proximity required, the minimum qualifications and standards
  152  required of a licensed or certified appraiser before she or he
  153  may act in the capacity of a supervisory appraiser, and the
  154  maximum number of registered trainee appraisers to be supervised
  155  by an individual supervisory appraiser.
  156         (u)(p) “Training” means the process of providing for and
  157  making available to a registered trainee appraiser, under direct
  158  supervision, a planned, prepared, and coordinated program, or
  159  routine of instruction and education, in appraisal professional
  160  and technical appraisal skills as determined by rule of the
  161  board.
  162         (v)(q) “Uniform Standards of Professional Appraisal
  163  Practice” means the most recent standards approved and adopted
  164  by the Appraisal Standards Board of the Appraisal Foundation.
  165         (w)(r) “Valuation services” means services pertaining to
  166  aspects of property value and includes such services performed
  167  by certified appraisers, registered trainee appraisers, and
  168  others.
  169         (x)(s) “Work file” means the documentation necessary to
  170  support an appraiser’s analysis, opinions, and conclusions.
  171         Section 2. Subsection (1) of section 475.613, Florida
  172  Statutes, is amended to read
  173         475.613 Florida Real Estate Appraisal Board.—
  174         (1) There is created the Florida Real Estate Appraisal
  175  Board, which shall consist of nine seven members appointed by
  176  the Governor, subject to confirmation by the Senate. Four
  177  members of the board must be real estate appraisers who have
  178  been engaged in the general practice of appraising real property
  179  in this state for at least 5 years immediately preceding
  180  appointment. In appointing real estate appraisers to the board,
  181  while not excluding other appraisers, the Governor shall give
  182  preference to real estate appraisers who are not primarily
  183  engaged in real estate brokerage or mortgage lending activities.
  184  Two members of the board must represent the appraisal management
  185  industry. One member of the board must represent organizations
  186  that use appraisals for the purpose of eminent domain
  187  proceedings, financial transactions, or mortgage insurance. Two
  188  members of the board shall be representatives of the general
  189  public and shall not be connected in any way with the practice
  190  of real estate appraisal, real estate brokerage, or mortgage
  191  lending. The appraiser members shall be as representative of the
  192  entire industry as possible, and membership in a nationally
  193  recognized or state-recognized appraisal organization shall not
  194  be a prerequisite to membership on the board. To the extent
  195  possible, no more than two members of the board shall be
  196  primarily affiliated with any one particular national or state
  197  appraisal association. Two of the members must be licensed or
  198  certified residential real estate appraisers and two of the
  199  members must be certified general real estate appraisers at the
  200  time of their appointment.
  201         (a) Members of the board shall be appointed for 4-year
  202  terms. Any vacancy occurring in the membership of the board
  203  shall be filled by appointment by the Governor for the unexpired
  204  term. Upon expiration of her or his term, a member of the board
  205  shall continue to hold office until the appointment and
  206  qualification of the member’s successor. A member may not be
  207  appointed for more than two consecutive terms. The Governor may
  208  remove any member for cause.
  209         (b) The headquarters for the board shall be in Orlando.
  210         (c) The board shall meet at least once each calendar
  211  quarter to conduct its business.
  212         (d) The members of the board shall elect a chairperson at
  213  the first meeting each year.
  214         (e) Each member of the board is entitled to per diem and
  215  travel expenses as set by legislative appropriation for each day
  216  that the member engages in the business of the board.
  217         Section 3. Section 475.614, Florida Statutes, is amended to
  218  read:
  219         475.614 Power of board to adopt rules and decide questions
  220  of practice; requirements for protection of appraiser’s
  221  signature.—
  222         (1) The board has authority to adopt rules pursuant to ss.
  223  120.536(1) and 120.54 to implement provisions of law conferring
  224  duties upon it. The board may decide questions of practice
  225  arising in the proceedings before it, having regard to this
  226  section and the rules then in force.
  227         (2) The board shall adopt rules specifying the means by
  228  which an appraiser’s signature may be affixed to an appraisal
  229  report or other work performed by the appraiser. The rules shall
  230  include requirements for protecting the security of an
  231  appraiser’s signature and prohibiting practices that may
  232  discredit the use of an appraiser’s signature to authenticate
  233  the work performed by the appraiser.
  234         Section 4. Subsection (1) of section 475.6147, Florida
  235  Statutes, is amended to read:
  236         475.6147 Fees.—
  237         (1)(a) The board by rule may establish fees to be paid for
  238  application, licensing and renewal, certification and
  239  recertification, registration and reregistration, reinstatement,
  240  and recordmaking and recordkeeping.
  241         (b) The fee for initial application of an appraiser may not
  242  exceed $150, and the combined cost of the application and
  243  examination may not exceed $300. The initial certification,
  244  registration, or license fee and the certification,
  245  registration, or license renewal fee may not exceed $150 for
  246  each year of the duration of the certification, registration, or
  247  license.
  248         (c) The fee for initial application of an appraisal
  249  management company may not exceed $150. The initial registration
  250  and registration renewal fee may not exceed $150 for each year
  251  of the duration of the registration.
  252         (d) The board may also establish by rule a late renewal
  253  penalty.
  254         (e) The board shall establish fees which are adequate to
  255  ensure its continued operation. Fees shall be based on estimates
  256  made by the department of the revenue required to implement this
  257  part and other provisions of law relating to the regulation of
  258  real estate appraisers.
  259         Section 5. Section 475.6235, Florida Statutes, is created
  260  to read:
  261         475.6235 Registration of appraisal management companies
  262  required.—
  263         (1) A person may not engage in appraisal management
  264  services for compensation in this state, advertise or represent
  265  herself or himself as an appraisal management company, or use
  266  the titles “appraisal management company,” “appraiser
  267  cooperative,” “appraiser portal,” or “mortgage technology
  268  company,” or any abbreviation or words to that effect, unless
  269  the person is registered with the department as an appraisal
  270  management company under this section. However, an employee of
  271  an appraisal management company is not required to obtain a
  272  separate registration.
  273         (2) An application for registration must be submitted to
  274  the department in the format prescribed by the department and
  275  must include, at a minimum, the following:
  276         (a) The firm or business name under which the appraisal
  277  management company conducts business in this state. The
  278  appraisal management company must notify the department of any
  279  change in the firm or business name, on a form provided by the
  280  department, within 10 days after such change.
  281         (b) The mailing address, street address, and telephone
  282  number of the appraisal management company’s principal business
  283  location. The appraisal management company must notify the
  284  department of any change in the mailing or street address, on a
  285  form provided by the department, within 10 days after such
  286  change.
  287         (c) The appraisal management company’s federal employer
  288  identification number.
  289         (d) The appraisal management company’s type of business
  290  organization, such as a corporation, partnership, limited
  291  liability company, or sole proprietorship.
  292         (e) A statement as to whether the appraisal management
  293  company, if incorporated, is a domestic or foreign corporation,
  294  the company’s date of incorporation, the state in which the
  295  company was incorporated, its charter number, and, if it is a
  296  foreign corporation, the date that the company first registered
  297  with the Department of State to conduct business in this state.
  298         (f) The full name, street address, telephone number,
  299  corporate title, and social security number or federal employer
  300  identification number of any person who possesses the authority,
  301  directly or indirectly, to direct the management or policies of
  302  the appraisal management company, whether through ownership, by
  303  contract, or otherwise, including, but not limited to:
  304         1. Each officer and director if the appraisal management
  305  company is a corporation.
  306         2. Each general partner if the appraisal management company
  307  is a partnership.
  308         3. Each manager or managing member if the appraisal
  309  management company is a limited liability company.
  310         4. The owner if the appraisal management company is a sole
  311  proprietorship.
  312         5. Each other person who, directly or indirectly, owns or
  313  controls 10 percent or more of an ownership interest in the
  314  appraisal management company.
  315         (g) The firm or business name under which any person listed
  316  in paragraph (f) conducted business as an appraisal management
  317  company within the 5 years preceding the date of the
  318  application.
  319         (h) The appraisal management company’s registered agent for
  320  service of process in this state.
  321         (3) Appropriate fees, as set forth in the rules of the
  322  board pursuant to s. 475.6147, and a complete set of
  323  fingerprints for each person listed in paragraph (2)(f) must
  324  accompany all applications for registration. The fingerprints
  325  shall be forwarded to the Division of Criminal Justice
  326  Information Systems within the Department of Law Enforcement for
  327  purposes of processing the fingerprints to determine whether the
  328  person has a criminal history record. The fingerprints shall
  329  also be forwarded to the Federal Bureau of Investigation for
  330  purposes of processing the fingerprints to determine whether the
  331  person has a criminal history record. The information obtained
  332  by the processing of fingerprints by the Department of Law
  333  Enforcement and the Federal Bureau of Investigation shall be
  334  sent to the department for the purpose of determining whether
  335  the appraisal management company is statutorily qualified for
  336  registration.
  337         (4) At the time of filing an application for registration
  338  of an appraisal management company, each person listed in
  339  paragraph (2)(f) must sign a pledge to comply with the Uniform
  340  Standards of Professional Appraisal Practice upon registration
  341  and must indicate in writing that she or he understands the
  342  types of misconduct for which disciplinary proceedings may be
  343  initiated. The application shall expire 1 year after the date
  344  received.
  345         (5) Each person listed in paragraph (2)(f) must be
  346  competent and qualified to engage in appraisal management
  347  services with safety to the general public and those with whom
  348  the person may undertake a relationship of trust and confidence.
  349  If any person listed in paragraph (2)(f) has been denied
  350  registration, licensure, or certification as an appraiser or has
  351  been disbarred, or if the person’s registration, license, or
  352  certificate to practice or conduct any regulated profession,
  353  business, or vocation has been revoked or suspended by this or
  354  any other state, any nation, any possession or district of the
  355  United States, or any court or lawful agency thereof because of
  356  any conduct or practices that would have warranted a like result
  357  under this part, or if the person has been guilty of conduct or
  358  practices in this state or elsewhere that would have been
  359  grounds for disciplining her or his registration, license, or
  360  certification under this part had the person then been a
  361  registered trainee appraiser or a licensed or certified
  362  appraiser, the person shall be deemed not to be qualified
  363  unless, because of lapse of time and subsequent good conduct and
  364  reputation, or other reason deemed sufficient, it appears to the
  365  board that the interest of the public is not likely to be
  366  endangered by the granting of registration.
  367         (6) An applicant seeking to become registered under this
  368  part as an appraisal management company may not be rejected
  369  solely by virtue of membership or lack of membership of any
  370  person listed in paragraph (2)(f) or any employee of the company
  371  in any particular appraisal organization.
  372         (7) An applicant for registration who is not a resident of
  373  the state shall file an irrevocable consent that suits and
  374  actions may be commenced against the appraisal management
  375  company in any county of the state in which a plaintiff having a
  376  cause of action or suit against the company resides and that
  377  service of any process or pleading in suits or actions against
  378  the company may be made by delivering the process or pleading to
  379  the director of the Division of Real Estate by certified mail,
  380  return receipt requested, and also to the appraisal management
  381  company by registered mail addressed to the company’s designated
  382  principal business location or, if its principal business
  383  location is located in this state, to the company’s registered
  384  agent. Service, when so made, must be taken and held in all
  385  courts to be as valid and binding upon the appraisal management
  386  company as if made upon the company in this state within the
  387  jurisdiction of the court in which the suit or action is filed.
  388  The irrevocable consent must be in a form prescribed by the
  389  department and be acknowledged before a notary public.
  390         (8) The department shall renew the registration of an
  391  appraisal management company upon receipt of the renewal
  392  application and the proper fee. The department shall adopt rules
  393  establishing a procedure for renewal of the registration of an
  394  appraisal management company at least every 4 years.
  395         Section 6. Section 475.624, Florida Statutes, is amended to
  396  read:
  397         475.624 Discipline of appraisers.—The board may deny an
  398  application for registration or certification of an appraiser;
  399  may investigate the actions of any appraiser registered,
  400  licensed, or certified under this part; may reprimand or impose
  401  an administrative fine not to exceed $5,000 for each count or
  402  separate offense against any such appraiser; and may revoke or
  403  suspend, for a period not to exceed 10 years, the registration,
  404  license, or certification of any such appraiser, or place any
  405  such appraiser on probation, if the board it finds that the
  406  registered trainee, licensee, or certificateholder:
  407         (1) Has violated any provision provisions of this part or
  408  s. 455.227(1); however, any appraiser registered, licensed, or
  409  certified certificateholders, registrants, and licensees under
  410  this part is are exempt from the provisions of s. 455.227(1)(i).
  411         (2) Has been guilty of fraud, misrepresentation,
  412  concealment, false promises, false pretenses, dishonest conduct,
  413  culpable negligence, or breach of trust in any business
  414  transaction in this state or any other state, nation, or
  415  territory; has violated a duty imposed upon her or him by law or
  416  by the terms of a contract, whether written, oral, express, or
  417  implied, in an appraisal assignment; has aided, assisted, or
  418  conspired with any other person engaged in any such misconduct
  419  and in furtherance thereof; or has formed an intent, design, or
  420  scheme to engage in such misconduct and committed an overt act
  421  in furtherance of such intent, design, or scheme. It is
  422  immaterial to the guilt of the registered trainee appraiser or
  423  licensed, licensee, or certified appraiser certificateholder
  424  that the victim or intended victim of the misconduct has
  425  sustained no damage or loss; that the damage or loss has been
  426  settled and paid after discovery of the misconduct; or that such
  427  victim or intended victim was a customer or a person in
  428  confidential relation with the registered trainee appraiser or
  429  licensed, licensee, or certified appraiser certificateholder, or
  430  was an identified member of the general public.
  431         (3) Has advertised services in a manner that which is
  432  fraudulent, false, deceptive, or misleading in form or content.
  433         (4) Has violated any provision of the provisions of this
  434  part or any lawful order or rule issued under the provisions of
  435  this part or chapter 455.
  436         (5) Has been convicted or found guilty of, or entered a
  437  plea of nolo contendere to, regardless of adjudication, a crime
  438  in any jurisdiction which directly relates to the activities of
  439  a registered trainee appraiser or licensed or certified
  440  appraiser, or which involves moral turpitude or fraudulent or
  441  dishonest conduct. The record of a conviction certified or
  442  authenticated in such form as admissible in evidence under the
  443  laws of the state shall be admissible as prima facie evidence of
  444  such guilt.
  445         (6) Has had a registration, license, or certification as an
  446  appraiser revoked, suspended, or otherwise acted against;, or
  447  has been disbarred;, or has had her or his registration,
  448  license, or certificate to practice or conduct any regulated
  449  profession, business, or vocation revoked or suspended by this
  450  or any other state, any nation, or any possession or district of
  451  the United States;, or has had an application for such
  452  registration, licensure, or certification to practice or conduct
  453  any regulated profession, business, or vocation denied by this
  454  or any other state, any nation, or any possession or district of
  455  the United States.
  456         (7) Has become temporarily incapacitated from acting as an
  457  appraiser with safety to those in a fiduciary relationship with
  458  her or him because of drunkenness, use of drugs, or temporary
  459  mental derangement; however, suspension of a license,
  460  certification, or registration in such cases shall only be for
  461  the period of such incapacity.
  462         (8) Is confined in any county jail, postadjudication; is
  463  confined in any state or federal prison or mental institution;
  464  or, through mental disease or deterioration, can no longer
  465  safely be entrusted to deal with the public or in a confidential
  466  capacity.
  467         (9) Has failed to inform the board in writing within 30
  468  days after pleading guilty or nolo contendere to, or being
  469  convicted or found guilty of, any felony.
  470         (10) Has been found guilty, for a second time, of any
  471  misconduct that warrants disciplinary action, or has been found
  472  guilty of a course of conduct or practice that which shows that
  473  she or he is incompetent, negligent, dishonest, or untruthful to
  474  an extent that those with whom she or he may sustain a
  475  confidential relationship may not safely do so.
  476         (11) Has made or filed a report or record, either written
  477  or oral, which the registered trainee appraiser or licensed,
  478  licensee, or certified appraiser certificateholder knows to be
  479  false; has willfully failed to file a report or record required
  480  by state or federal law; has willfully impeded or obstructed
  481  such filing;, or has induced another person to impede or
  482  obstruct such filing. However, such reports or records shall
  483  include only those that which are signed or presented in the
  484  capacity of a registered trainee appraiser or licensed or
  485  certified appraiser.
  486         (12) Has obtained or attempted to obtain a registration,
  487  license, or certification by means of knowingly making a false
  488  statement, submitting false information, refusing to provide
  489  complete information in response to an application question, or
  490  engaging in fraud, misrepresentation, or concealment.
  491         (13) Has paid money or other valuable consideration, except
  492  as required by this section, to any member or employee of the
  493  board to obtain a registration, license, or certification under
  494  this section.
  495         (14) Has violated any standard for the development or
  496  communication of a real estate appraisal or other provision of
  497  the Uniform Standards of Professional Appraisal Practice.
  498         (15) Has failed or refused to exercise reasonable diligence
  499  in developing an appraisal or preparing an appraisal report.
  500         (16) Has failed to communicate an appraisal without good
  501  cause.
  502         (17) Has accepted an appraisal assignment if the employment
  503  itself is contingent upon the appraiser reporting a
  504  predetermined result, analysis, or opinion, or if the fee to be
  505  paid for the performance of the appraisal assignment is
  506  contingent upon the opinion, conclusion, or valuation reached
  507  upon the consequences resulting from the appraisal assignment.
  508         (18) Has failed to timely notify the department of any
  509  change in business location, or has failed to fully disclose all
  510  business locations from which she or he operates as a registered
  511  trainee real estate appraiser or licensed or certified real
  512  estate appraiser.
  513         Section 7. Section 475.6245, Florida Statutes, is created
  514  to read:
  515         475.6245 Discipline of appraisal management companies.—
  516         (1) The board may deny an application for registration of
  517  an appraisal management company; may investigate the actions of
  518  any appraisal management company registered under this part; may
  519  reprimand or impose an administrative fine not to exceed $5,000
  520  for each count or separate offense against any such appraisal
  521  management company; and may revoke or suspend, for a period not
  522  to exceed 10 years, the registration of any such appraisal
  523  management company, or place any such appraisal management
  524  company on probation, if the board finds that the appraisal
  525  management company or any person listed in s. 475.6235(2)(f):
  526         (a) Has violated any provision of this part or s.
  527  455.227(1); however, any appraisal management company registered
  528  under this part is exempt from s. 455.227(1)(i).
  529         (b) Has been guilty of fraud, misrepresentation,
  530  concealment, false promises, false pretenses, dishonest conduct,
  531  culpable negligence, or breach of trust in any business
  532  transaction in this state or any other state, nation, or
  533  territory; has violated a duty imposed upon her or him by law or
  534  by the terms of a contract, whether written, oral, express, or
  535  implied, in an appraisal assignment; has aided, assisted, or
  536  conspired with any other person engaged in any such misconduct
  537  and in furtherance thereof; or has formed an intent, design, or
  538  scheme to engage in such misconduct and committed an overt act
  539  in furtherance of such intent, design, or scheme. It is
  540  immaterial to the guilt of the appraisal management company that
  541  the victim or intended victim of the misconduct has sustained no
  542  damage or loss; that the damage or loss has been settled and
  543  paid after discovery of the misconduct; or that such victim or
  544  intended victim was a customer or a person in confidential
  545  relation with the appraisal management company or was an
  546  identified member of the general public.
  547         (c) Has advertised services in a manner that is fraudulent,
  548  false, deceptive, or misleading in form or content.
  549         (d) Has violated any provision of this part or any lawful
  550  order or rule issued under this part or chapter 455.
  551         (e) Has been convicted or found guilty of, or entered a
  552  plea of nolo contendere to, regardless of adjudication, a crime
  553  in any jurisdiction which directly relates to the activities of
  554  an appraisal management company or which involves moral
  555  turpitude or fraudulent or dishonest conduct. The record of a
  556  conviction certified or authenticated in such form as admissible
  557  in evidence under the laws of the state shall be admissible as
  558  prima facie evidence of such guilt.
  559         (f) Has had a registration, license, or certification as an
  560  appraiser or a registration as an appraisal management company
  561  revoked, suspended, or otherwise acted against; has been
  562  disbarred; has had her or his registration, license, or
  563  certificate to practice or conduct any regulated profession,
  564  business, or vocation revoked or suspended by this or any other
  565  state, any nation, or any possession or district of the United
  566  States; or has had an application for such registration,
  567  licensure, or certification to practice or conduct any regulated
  568  profession, business, or vocation denied by this or any other
  569  state, any nation, or any possession or district of the United
  570  States.
  571         (g) Has become temporarily incapacitated from acting as an
  572  appraisal management company with safety to those in a fiduciary
  573  relationship with her or him because of drunkenness, use of
  574  drugs, or temporary mental derangement; however, suspension of a
  575  registration in such cases shall only be for the period of such
  576  incapacity.
  577         (h) Is confined in any county jail, postadjudication; is
  578  confined in any state or federal prison or mental institution;
  579  or, through mental disease or deterioration, can no longer
  580  safely be entrusted to deal with the public or in a confidential
  581  capacity.
  582         (i) Has failed to inform the board in writing within 30
  583  days after pleading guilty or nolo contendere to, or being
  584  convicted or found guilty of, any felony.
  585         (j) Has been found guilty, for a second time, of any
  586  misconduct that warrants disciplinary action, or has been found
  587  guilty of a course of conduct or practice that shows that she or
  588  he is incompetent, negligent, dishonest, or untruthful to an
  589  extent that those with whom she or he may sustain a confidential
  590  relationship may not safely do so.
  591         (k) Has made or filed a report or record, either written or
  592  oral, that the appraisal management company knows to be false;
  593  has willfully failed to file a report or record required by
  594  state or federal law; has willfully impeded or obstructed such
  595  filing; or has induced another person to impede or obstruct such
  596  filing. However, such reports or records shall include only
  597  those that are signed or presented in the capacity of an
  598  appraisal management company.
  599         (l) Has obtained or attempted to obtain a registration,
  600  license, or certification by means of knowingly making a false
  601  statement, submitting false information, refusing to provide
  602  complete information in response to an application question, or
  603  engaging in fraud, misrepresentation, or concealment.
  604         (m) Has paid money or other valuable consideration, except
  605  as required by this section, to any member or employee of the
  606  board to obtain a registration, license, or certification under
  607  this section.
  608         (n) Has instructed an appraiser to violate any standard for
  609  the development or communication of a real estate appraisal or
  610  other provision of the Uniform Standards of Professional
  611  Appraisal Practice.
  612         (o) Has engaged in the development of an appraisal or the
  613  preparation of an appraisal report, unless the appraisal
  614  management company is owned or controlled by persons who are
  615  certified appraisers.
  616         (p) Has failed to communicate an appraisal without good
  617  cause.
  618         (q) Has accepted an appraisal assignment if the employment
  619  itself is contingent upon the appraisal management company
  620  reporting a predetermined result, analysis, or opinion or if the
  621  fee to be paid for the performance of the appraisal assignment
  622  is contingent upon the opinion, conclusion, or valuation reached
  623  upon the consequences resulting from the appraisal assignment.
  624         (r) Has failed to timely notify the department of any
  625  change in principal business location as an appraisal management
  626  company.
  627         (s) Has influenced or attempted to influence the
  628  development, reporting, or review of an appraisal through
  629  coercion, extortion, collusion, compensation, inducement,
  630  intimidation, bribery, or any other means, including, but not
  631  limited to:
  632         1. Withholding or threatening to withhold timely payment
  633  for an appraisal, unless such nonpayment is based upon specific
  634  quality or other service issues that constitute noncompliance
  635  with the appraisal engagement agreement.
  636         2. Withholding or threatening to withhold future business
  637  from an appraiser.
  638         3. Promising future business, promotions, or increased
  639  compensation for an appraiser, whether the promise is express or
  640  implied.
  641         4. Conditioning a request for appraisal services or the
  642  payment of an appraisal fee, salary, or bonus upon the opinion,
  643  conclusion, or valuation to be reached or upon a preliminary
  644  estimate or opinion requested from an appraiser.
  645         5. Requesting that an appraiser provide an estimated,
  646  predetermined, or desired valuation in an appraisal report or
  647  provide estimated values or comparable sales at any time before
  648  the appraiser’s completion of appraisal services.
  649         6. Providing to an appraiser an anticipated, estimated,
  650  encouraged, or desired value for a subject property or a
  651  proposed or target amount to be loaned to the borrower, except
  652  that a copy of the sales contract for purchase transactions may
  653  be provided.
  654         7. Providing to an appraiser, or any person related to the
  655  appraiser, stock or other financial or nonfinancial benefits.
  656         8. Allowing the removal of an appraiser from an appraiser
  657  panel without prior written notice to the appraiser.
  658         9. Obtaining, using, or paying for a second or subsequent
  659  appraisal or ordering an automated valuation model in connection
  660  with a mortgage financing transaction unless there is a
  661  reasonable basis to believe that the initial appraisal was
  662  flawed or tainted and such basis is clearly and appropriately
  663  noted in the loan file, or unless such appraisal or automated
  664  valuation model is issued pursuant to a bona fide prefunding or
  665  postfunding appraisal review or quality control process.
  666         10. Any other act or practice that impairs or attempts to
  667  impair an appraiser’s independence, objectivity, or
  668  impartiality.
  669         (t) Has altered, modified, or otherwise changed a completed
  670  appraisal report submitted by an appraiser to an appraisal
  671  management company.
  672         (u) Has employed, contracted with, or otherwise retained an
  673  appraiser whose registration, license, or certification is
  674  suspended or revoked to perform appraisal services or appraisal
  675  management services.
  676         (2) The board may reprimand an appraisal management
  677  company, conditionally or unconditionally suspend or revoke any
  678  registration of an appraisal management company issued under
  679  this part, or impose administrative fines not to exceed $5,000
  680  for each count or separate offense against any such appraisal
  681  management company if the board determines that the appraisal
  682  management company is attempting to perform, has performed, or
  683  has attempted to perform any of the following acts:
  684         (a) Committing any act in violation of this part.
  685         (b) Violating any rule adopted by the board under this
  686  part.
  687         (c) Obtaining a registration of an appraisal management
  688  company by fraud, misrepresentation, or deceit.
  689         (3) This section does not prohibit an appraisal management
  690  company from requesting an appraiser to:
  691         (a) Provide additional information about the basis of a
  692  valuation, including consideration of additional comparable
  693  data; or
  694         (b) Correct objective factual errors in an appraisal
  695  report.
  696         Section 8. Section 475.626, Florida Statutes, is amended to
  697  read:
  698         475.626 Violations and penalties.—
  699         (1) A person may not: VIOLATIONS.—
  700         (a) No person shall Operate or attempt to operate as a
  701  registered trainee appraiser, a or licensed or certified
  702  appraiser, or an appraisal management company without being the
  703  holder of a valid and current registration, license, or
  704  certification.
  705         (b) No person shall Violate any lawful order or rule of the
  706  board which is binding upon her or him.
  707         (c) If a registered trainee appraiser, or a licensed or
  708  certified appraiser, No person shall commit any conduct or
  709  practice set forth in s. 475.624.
  710         (d) If an appraisal management company, commit any conduct
  711  or practice set forth in s. 475.6245.
  712         (e)(d)No person shall Make any false affidavit or
  713  affirmation intended for use as evidence by or before the board
  714  or any member thereof, or by any of its authorized
  715  representatives, nor may shall any person give false testimony
  716  under oath or affirmation to or before the board or any member
  717  thereof in any proceeding authorized by this section.
  718         (f)(e)No person shall Fail or refuse to appear at the time
  719  and place designated in a subpoena issued with respect to a
  720  violation of this section, unless such failure to appear is the
  721  result of facts or circumstances that are sufficient to excuse
  722  appearance in response to a subpoena from the circuit court; nor
  723  may shall a person who is present before the board or a member
  724  thereof or one of its authorized representatives acting under
  725  authority of this section refuse to be sworn or to affirm or
  726  fail or refuse to answer fully any question propounded by the
  727  board, the member, or such representative, or by any person by
  728  the authority of such officer or appointee.
  729         (g)(f)No person shall Obstruct or hinder in any manner the
  730  enforcement of this section or the performance of any lawful
  731  duty by any person acting under the authority of this section,
  732  or interfere with, intimidate, or offer any bribe to any member
  733  of the board or any of its employees or any person who is, or is
  734  expected to be, a witness in any investigation or proceeding
  735  relating to a violation of this section.
  736         (h)(g)No person shall Knowingly conceal any information
  737  relating to violations of this section.
  738         (2) A PENALTIES.—Any person who violates any provision of
  739  the provisions of subsection (1) commits is guilty of a
  740  misdemeanor of the second degree, punishable as provided in s.
  741  775.082 or s. 775.083, except when a different punishment is
  742  prescribed by this section. Nothing in This section does not
  743  shall prohibit the prosecution under any other criminal statute
  744  of this state of any person for an act or conduct prohibited by
  745  this section; however, in such cases, the state may prosecute
  746  under this section or under such other statute, or may charge
  747  both offenses in one prosecution, but the sentence imposed shall
  748  not be a greater fine or longer sentence than that prescribed
  749  for the offense which carries the more severe penalties. A civil
  750  case, a criminal case, or a denial, revocation, or suspension
  751  proceeding may arise out of the same alleged state of facts, and
  752  the pendency or result of one such case or proceeding shall not
  753  stay or control the result of either of the others.
  754         Section 9. Section 475.629, Florida Statutes, is amended to
  755  read:
  756         475.629 Retention of records.—An appraiser registered,
  757  licensed, or certified under this part or an appraisal
  758  management company registered under this part shall retain, for
  759  at least 5 years or the period specified in the Uniform
  760  Standards of Professional Appraisal Practice, whichever is
  761  greater, original or true copies of any contracts engaging the
  762  appraiser’s or appraisal management company’s services,
  763  appraisal reports, and supporting data assembled and formulated
  764  by the appraiser or company in preparing appraisal reports or
  765  engaging in appraisal management services. Except as otherwise
  766  specified in the Uniform Standards of Professional Appraisal
  767  Practice, the period for retention of the records applicable to
  768  each engagement of the services of the appraiser or appraisal
  769  management company runs from the date of the submission of the
  770  appraisal report to the client. These records must be made
  771  available by the appraiser or appraisal management company for
  772  inspection and copying by the department upon on reasonable
  773  notice to the appraiser or company. However, the department may
  774  not inspect or copy the records of an appraisal management
  775  company except in connection with a pending investigation or
  776  complaint. If an appraisal has been the subject of or has served
  777  as evidence for litigation, reports and records must be retained
  778  for at least 2 years after the trial or the period specified in
  779  the Uniform Standards of Professional Appraisal Practice,
  780  whichever is greater.
  781         Section 10. This act shall take effect July 1, 2011.