Florida Senate - 2017                                     SB 716
       
       
        
       By Senator Passidomo
       
       28-00503A-17                                           2017716__
    1                        A bill to be entitled                      
    2         An act relating to real estate appraisers; amending s.
    3         475.451, F.S.; revising authorized methods of
    4         instruction and certain requirements for specified
    5         real estate practice courses; amending s. 475.611,
    6         F.S.; defining and redefining terms; repealing s.
    7         475.6175, F.S., relating to registered trainee
    8         appraisers; amending s. 475.621, F.S.; requiring the
    9         Department of Business and Professional Regulation to
   10         transmit a specified roster to a certain appraisal
   11         committee; requiring the department to collect an
   12         annual fee from certain appraisal management companies
   13         and transmit the fee to such appraisal committee;
   14         requiring the Florida Real Estate Appraisal Board to
   15         adopt rules; amending s. 475.6235, F.S.; revising
   16         which persons are included in a specified requirement
   17         for information in an application for appraisal
   18         management company registration; deleting a provision
   19         that deems a specified person not qualified to engage
   20         in appraisal management services except under certain
   21         circumstances; revising applicability; amending s.
   22         475.6245, F.S.; authorizing the board to deny an
   23         application for renewal of an appraisal management
   24         company’s registration on specified grounds; adding
   25         grounds for discipline of appraisal management
   26         companies by the board; reenacting s. 475.626(1)(b),
   27         F.S., relating to violations and penalties, to
   28         incorporate the amendment made by the act to s.
   29         475.6245, F.S., in a reference thereto; reenacting s.
   30         475.629, F.S., relating to retention of records, to
   31         incorporate the amendment made by the act to s.
   32         475.611, F.S., in a reference thereto; providing an
   33         effective date.
   34          
   35  Be It Enacted by the Legislature of the State of Florida:
   36  
   37         Section 1. Subsection (6) of section 475.451, Florida
   38  Statutes, is amended to read:
   39         475.451 Schools teaching real estate practice.—
   40         (6) Any course prescribed by the commission as a condition
   41  precedent to any person’s becoming initially licensed as a sales
   42  associate or as a broker may be taught by a in any real estate
   43  school in a classroom or by distance learning pursuant to s.
   44  475.17(2) and through the use of a video tape of instruction by
   45  a currently permitted instructor from any such school or may be
   46  taught by distance learning pursuant to s. 475.17(2). The
   47  commission may require that any such video tape course have a
   48  single session of live instruction by a currently permitted
   49  instructor from any such school; however, this requirement shall
   50  not exceed 3 classroom hours. All other prescribed courses,
   51  except the continuing education course required by s. 475.182,
   52  shall be taught by a currently permitted school instructor
   53  personally in attendance at such course or by distance learning
   54  pursuant to s. 475.17. The continuing education course required
   55  by s. 475.182 may be taught by distance learning pursuant to s.
   56  475.17 or by an equivalent correspondence course; however, any
   57  such correspondence course shall be required to have a final
   58  examination, prepared and administered by the school or course
   59  provider issuing the correspondence course. The continuing
   60  education requirements provided in this chapter do not apply to
   61  an attorney who is otherwise qualified under this chapter and
   62  who is a member in good standing of The Florida Bar.
   63         Section 2. Subsections (1) and (2) of section 475.611,
   64  Florida Statutes, are amended to read:
   65         475.611 Definitions.—
   66         (1) As used in this part, the term:
   67         (a) “Appraisal” or “appraisal services” means the services
   68  provided by certified or licensed appraisers or registered
   69  trainee appraisers, and includes:
   70         1. “Appraisal assignment” denotes an engagement for which a
   71  person is employed or retained to act, or could be perceived by
   72  third parties or the public as acting, as an agent or a
   73  disinterested third party in rendering an unbiased analysis,
   74  opinion, review, or conclusion relating to the nature, quality,
   75  value, or utility of specified interests in, or aspects of,
   76  identified real property.
   77         2. “Analysis assignment” denotes appraisal services that
   78  relate to the employer’s or client’s individual needs or
   79  investment objectives and includes specialized marketing,
   80  financing, and feasibility studies as well as analyses,
   81  opinions, and conclusions given in connection with activities
   82  such as real estate brokerage, mortgage banking, real estate
   83  counseling, or real estate consulting.
   84         3. “Appraisal review assignment” denotes an engagement for
   85  which an appraiser is employed or retained to develop and
   86  communicate an opinion about the quality of another appraiser’s
   87  appraisal, appraisal report, or work. An appraisal review may or
   88  may not contain the reviewing appraiser’s opinion of value.
   89         (b) “Appraisal Foundation” or “foundation” means The
   90  Appraisal Foundation established on November 20, 1987, as a not
   91  for-profit corporation under the laws of Illinois.
   92         (c) “Appraisal management company” means a person who
   93  performs appraisal management services regardless of the use of
   94  the term “appraisal management company,” “appraiser
   95  cooperative,” “appraiser portal,” “mortgage technology company,”
   96  or other term.
   97         (d) “Appraisal management services” means the coordination
   98  or management of appraisal services for compensation by:
   99         1. Employing, contracting with, or otherwise retaining one
  100  or more licensed or certified appraisers to perform appraisal
  101  services for a client; or
  102         2. Acting as a broker or intermediary between a client and
  103  one or more licensed or certified appraisers to facilitate the
  104  client’s employing, contracting with, or otherwise retaining the
  105  appraisers.
  106         (e) “Appraisal report” means any communication, written or
  107  oral, of an appraisal, appraisal review, appraisal consulting
  108  service, analysis, opinion, or conclusion relating to the
  109  nature, quality, value, or utility of a specified interest in,
  110  or aspect of, identified real property, and includes any report
  111  communicating an appraisal analysis, opinion, or conclusion of
  112  value, regardless of title. However, in order to be recognized
  113  in a federally related transaction, an appraisal report must be
  114  written.
  115         (f) “Appraisal review” means the act or process of
  116  developing and communicating an opinion about the quality of
  117  another appraiser’s appraisal, appraisal report, or work.
  118         (g) “Appraisal subcommittee” means the designees of the
  119  heads of the federal financial institutions regulatory agencies
  120  established by the Federal Financial Institutions Examination
  121  Council Act of 1978 (12 U.S.C. ss. 3301 et seq.), as amended.
  122         (h) “Appraiser” means any person who is a registered
  123  trainee real estate appraiser, a licensed real estate appraiser,
  124  or a certified real estate appraiser. An appraiser renders a
  125  professional service and is a professional within the meaning of
  126  s. 95.11(4)(a).
  127         (i) “Appraiser panel” means a network, list, or roster of
  128  licensed or certified appraisers approved by an appraisal
  129  management company to perform appraisals as independent
  130  contractors for the appraisal management company. The term
  131  includes both appraisers accepted by the appraisal management
  132  company for consideration for future appraisal assignments in
  133  covered transactions or for secondary market participants in
  134  connection with covered transactions, and appraisers engaged by
  135  the appraisal management company to perform one or more
  136  appraisals in covered transactions or appraisals for secondary
  137  mortgage market participants in connection with covered
  138  transactions. An appraiser is an independent contractor for
  139  purposes of this paragraph if the appraiser is treated as an
  140  independent contractor by the appraisal management company for
  141  purposes of federal income taxation group of appraisers selected
  142  by an appraisal management company to perform appraisal services
  143  for clients on behalf of the company.
  144         (j) “Board” means the Florida Real Estate Appraisal Board
  145  established under this section.
  146         (k) “Certified general appraiser” means a person who is
  147  certified by the department as qualified to issue appraisal
  148  reports for any type of real property.
  149         (l) “Certified residential appraiser” means a person who is
  150  certified by the department as qualified to issue appraisal
  151  reports for residential real property of one to four residential
  152  units, without regard to transaction value or complexity, or
  153  real property as may be authorized by federal regulation.
  154         (m) “Client” means a person who contracts with an appraiser
  155  or appraisal management company for the performance of appraisal
  156  services.
  157         (n) “Covered transaction” means a consumer credit
  158  transaction secured by the consumer’s principal dwelling.
  159         (o)(n) “Department” means the Department of Business and
  160  Professional Regulation.
  161         (p)(o) “Direct supervision” means the degree of supervision
  162  required of a supervisory appraiser overseeing the work of a
  163  registered trainee appraiser by which the supervisory appraiser
  164  has control over and detailed professional knowledge of the work
  165  being done. Direct supervision is achieved when a registered
  166  trainee appraiser has regular direction, guidance, and support
  167  from a supervisory appraiser who has the competencies as
  168  determined by rule of the board.
  169         (q) “Federally regulated appraisal management company”
  170  means an appraisal management company that is owned and
  171  controlled by an insured depository institution, as defined in
  172  12 U.S.C. s. 1813, and that is regulated by the Office of the
  173  Comptroller of the Currency, the Board of Governors of the
  174  Federal Reserve System, or the Federal Deposit Insurance
  175  Corporation.
  176         (r)(p) “Federally related transaction” means any real
  177  estate-related financial transaction which a federal financial
  178  institutions regulatory agency or the Resolution Trust
  179  Corporation engages in, contracts for, or regulates, and which
  180  requires the services of a state-licensed or state-certified
  181  appraiser.
  182         (s)(q) “Licensed appraiser” means a person who is licensed
  183  by the department as qualified to issue appraisal reports for
  184  residential real property of one to four residential units or on
  185  such real estate or real property as may be authorized by
  186  federal regulation. After July 1, 2003, the department shall not
  187  issue licenses for the category of licensed appraiser.
  188         (t) “Order file” means the documentation necessary to
  189  support the performance of appraisal management company
  190  services.
  191         (u)(r) “Registered trainee appraiser” means a person who is
  192  registered with the department as qualified to perform appraisal
  193  services only under the direct supervision of a certified
  194  appraiser. A registered trainee appraiser may accept appraisal
  195  assignments only from her or his primary or secondary
  196  supervisory appraiser.
  197         (v) “Secondary mortgage market participant” means a
  198  guarantor or insurer of mortgage-backed securities or an
  199  underwriter or issuer of mortgage-backed securities. The term
  200  includes an individual investor in a mortgage-backed security
  201  only if the investor also serves in the capacity of a guarantor,
  202  insurer underwriter, or issuer for the mortgage-backed security.
  203         (w)(s) “Signature” means personalized evidence indicating
  204  authentication of work performed by an appraiser and the
  205  acceptance of responsibility for the content of an appraisal,
  206  appraisal review, or appraisal consulting service or conclusions
  207  in an appraisal report.
  208         (x)(t) “Subsidiary” means an organization that is owned and
  209  controlled by a financial institution that is regulated by a
  210  federal financial institution regulatory agency.
  211         (y)(u) “Supervisory appraiser” means a certified
  212  residential appraiser or a certified general appraiser
  213  responsible for the direct supervision of one or more registered
  214  trainee appraisers and fully responsible for appraisals and
  215  appraisal reports prepared by those registered trainee
  216  appraisers. The board, by rule, shall determine the
  217  responsibilities of a supervisory appraiser, the geographic
  218  proximity required, the minimum qualifications and standards
  219  required of a certified appraiser before she or he may act in
  220  the capacity of a supervisory appraiser, and the maximum number
  221  of registered trainee appraisers to be supervised by an
  222  individual supervisory appraiser.
  223         (z)(v) “Training” means the process of providing for and
  224  making available to a registered trainee appraiser, under direct
  225  supervision, a planned, prepared, and coordinated program, or
  226  routine of instruction and education, in appraisal professional
  227  and technical appraisal skills as determined by rule of the
  228  board.
  229         (aa)(w) “Uniform Standards of Professional Appraisal
  230  Practice” means the most recent standards approved and adopted
  231  by the Appraisal Standards Board of The Appraisal Foundation.
  232         (bb)(x) “Valuation services” means services pertaining to
  233  aspects of property value and includes such services performed
  234  by certified appraisers, registered trainee appraisers, and
  235  others.
  236         (cc)(y) “Work file” means the documentation necessary to
  237  support an appraiser’s analysis, opinions, and conclusions.
  238         (2) Wherever the word “operate” or “operating” appears in
  239  this part with respect to a registered trainee appraiser,
  240  registered appraisal management company, licensed appraiser, or
  241  certified appraiser; in any order, rule, or regulation of the
  242  board; in any pleading, indictment, or information under this
  243  part; in any court action or proceeding; or in any order or
  244  judgment of a court, it shall be deemed to mean the commission
  245  of one or more acts described in this part as constituting or
  246  defining a registered trainee appraiser, licensed appraiser, or
  247  certified appraiser, not including, however, any of the
  248  exceptions stated therein. A single act is sufficient to bring a
  249  person within the meaning of this subsection, and each act, if
  250  prohibited herein, constitutes a separate offense.
  251         Section 3. Section 475.6175, Florida Statutes, is repealed.
  252         Section 4. Section 475.621, Florida Statutes, is amended to
  253  read:
  254         475.621 Registry of licensed and certified appraisers;
  255  registry of appraisal management companies.—
  256         (1) The department shall transmit to the appraisal
  257  subcommittee, no less than annually, a roster listing
  258  individuals who hold a valid state license or certification as
  259  an appraiser. The department shall transmit to the appraisal
  260  subcommittee, no less than annually, a roster listing persons or
  261  companies that hold a valid state registration as an appraisal
  262  management company.
  263         (2) The department shall collect from such individuals who
  264  perform or seek to perform appraisals in federally related
  265  transactions, an annual fee as set by, and transmitted to, the
  266  appraisal subcommittee. The department shall collect from such
  267  appraisal management companies that perform or seek to perform
  268  appraisal management company services in covered transactions an
  269  annual fee set by rule of the board and transmitted to the
  270  appraisal subcommittee.
  271         (3) Notwithstanding the prohibition against requiring
  272  registration of a federally regulated appraisal management
  273  company as provided in s. 475.6235(8)(b), the board shall
  274  establish a procedure to collect from a federally regulated
  275  appraisal management company an annual fee as set by rule of the
  276  board and transmitted to the appraisal subcommittee.
  277         Section 5. Paragraph (f) of subsection (2), subsection (5),
  278  and paragraph (b) of subsection (8) of section 475.6235, Florida
  279  Statutes, are amended to read:
  280         475.6235 Registration of appraisal management companies
  281  required; exemptions.—
  282         (2) An application for registration must be submitted to
  283  the department in the format prescribed by the department and
  284  must include, at a minimum, the following:
  285         (f) The full name, street address, telephone number,
  286  corporate title, and social security number or federal employer
  287  identification number of any person who possesses the authority,
  288  directly or indirectly, to direct the management or policies of
  289  the appraisal management company, whether through ownership, by
  290  contract, or otherwise, including, but not limited to:
  291         1. Each officer and director if the appraisal management
  292  company is a corporation.
  293         2. Each general partner if the appraisal management company
  294  is a partnership.
  295         3. Each manager or managing member if the appraisal
  296  management company is a limited liability company.
  297         4. The owner if the appraisal management company is a sole
  298  proprietorship.
  299         5. Each other person who, directly or indirectly, owns or
  300  controls any 10 percent or more of an ownership interest in the
  301  appraisal management company.
  302         (5) Each person listed in paragraph (2)(f) must be
  303  competent and qualified to engage in appraisal management
  304  services with safety to the general public and those with whom
  305  the person may undertake a relationship of trust and confidence.
  306  If any person listed in paragraph (2)(f) has been denied
  307  registration, licensure, or certification as an appraiser or has
  308  been disbarred, or if the person’s registration, license, or
  309  certificate to practice or conduct any regulated profession,
  310  business, or vocation has been revoked or suspended by this or
  311  any other state, any nation, any possession or district of the
  312  United States, or any court or lawful agency thereof because of
  313  any conduct or practices that would have warranted a like result
  314  under this part, or if the person has been guilty of conduct or
  315  practices in this state or elsewhere that would have been
  316  grounds for disciplining her or his registration, license, or
  317  certification under this part had the person then been a
  318  registered trainee appraiser or a licensed or certified
  319  appraiser, the person shall be deemed not to be qualified
  320  unless, because of lapse of time and subsequent good conduct and
  321  reputation, or other reason deemed sufficient, it appears to the
  322  board that the interest of the public is not likely to be
  323  endangered by the granting of registration.
  324         (8) This section does not apply to:
  325         (b) An appraisal management company that is a federally
  326  regulated appraisal management company subsidiary owned and
  327  controlled by a financial institution, as defined in s. 655.005,
  328  that is regulated by a federal financial institution regulatory
  329  agency.
  330         Section 6. Subsection (1) of section 475.6245, Florida
  331  Statutes, is amended to read:
  332         475.6245 Discipline of appraisal management companies.—
  333         (1) The board may deny an application for registration or
  334  for renewal registration of an appraisal management company; may
  335  investigate the actions of any appraisal management company
  336  registered under this part; may reprimand or impose an
  337  administrative fine not to exceed $5,000 for each count or
  338  separate offense against any such appraisal management company;
  339  and may revoke or suspend, for a period not to exceed 10 years,
  340  the registration of any such appraisal management company, or
  341  place any such appraisal management company on probation, if the
  342  board finds that the appraisal management company or any person
  343  listed in s. 475.6235(2)(f):
  344         (a) Has violated any provision of this part or s.
  345  455.227(1); however, any appraisal management company registered
  346  under this part is exempt from s. 455.227(1)(i).
  347         (b) Has been guilty of fraud, misrepresentation,
  348  concealment, false promises, false pretenses, dishonest conduct,
  349  culpable negligence, or breach of trust in any business
  350  transaction in this state or any other state, nation, or
  351  territory; has violated a duty imposed upon her or him by law or
  352  by the terms of a contract, whether written, oral, express, or
  353  implied, in an appraisal assignment; has aided, assisted, or
  354  conspired with any other person engaged in any such misconduct
  355  and in furtherance thereof; or has formed an intent, design, or
  356  scheme to engage in such misconduct and committed an overt act
  357  in furtherance of such intent, design, or scheme. It is
  358  immaterial to the guilt of the appraisal management company that
  359  the victim or intended victim of the misconduct has sustained no
  360  damage or loss; that the damage or loss has been settled and
  361  paid after discovery of the misconduct; or that such victim or
  362  intended victim was a customer or a person in confidential
  363  relation with the appraisal management company or was an
  364  identified member of the general public.
  365         (c) Has advertised services in a manner that is fraudulent,
  366  false, deceptive, or misleading in form or content.
  367         (d) Has violated any provision of this part or any lawful
  368  order or rule issued under this part or chapter 455.
  369         (e) Has been convicted or found guilty of, or entered a
  370  plea of nolo contendere to, regardless of adjudication, a crime
  371  in any jurisdiction that directly relates to the activities of
  372  an appraisal management company or that involves moral turpitude
  373  or fraudulent or dishonest conduct. The record of a conviction
  374  certified or authenticated in such form as admissible in
  375  evidence under the laws of the state shall be admissible as
  376  prima facie evidence of such guilt.
  377         (f) Has had a registration, license, or certification as an
  378  appraiser or a registration as an appraisal management company
  379  revoked, suspended, or otherwise acted against; has been
  380  disbarred; has had her or his registration, license, or
  381  certificate to practice or conduct any regulated profession,
  382  business, or vocation revoked or suspended by this or any other
  383  state, any nation, or any possession or district of the United
  384  States; or has had an application for such registration,
  385  licensure, or certification to practice or conduct any regulated
  386  profession, business, or vocation denied by this or any other
  387  state, any nation, or any possession or district of the United
  388  States.
  389         (g) Has become temporarily incapacitated from acting as an
  390  appraisal management company with safety to those in a fiduciary
  391  relationship with her or him because of drunkenness, use of
  392  drugs, or temporary mental derangement; however, suspension of a
  393  registration in such cases shall only be for the period of such
  394  incapacity.
  395         (h) Is confined in any county jail, postadjudication; is
  396  confined in any state or federal prison or mental institution;
  397  or, through mental disease or deterioration, can no longer
  398  safely be entrusted to deal with the public or in a confidential
  399  capacity.
  400         (i) Has failed to inform the board in writing within 30
  401  days after pleading guilty or nolo contendere to, or being
  402  convicted or found guilty of, any felony.
  403         (j) Has been found guilty, for a second time, of any
  404  misconduct that warrants disciplinary action, or has been found
  405  guilty of a course of conduct or practice that shows that she or
  406  he is incompetent, negligent, dishonest, or untruthful to an
  407  extent that those with whom she or he may sustain a confidential
  408  relationship may not safely do so.
  409         (k) Has made or filed a report or record, either written or
  410  oral, that the appraisal management company knows to be false;
  411  has willfully failed to file a report or record required by
  412  state or federal law; has willfully impeded or obstructed such
  413  filing; or has induced another person to impede or obstruct such
  414  filing. However, such reports or records shall include only
  415  those that are signed or presented in the capacity of an
  416  appraisal management company.
  417         (l) Has obtained or attempted to obtain a registration,
  418  license, or certification by means of knowingly making a false
  419  statement, submitting false information, refusing to provide
  420  complete information in response to an application question, or
  421  engaging in fraud, misrepresentation, or concealment.
  422         (m) Has paid money or other valuable consideration, except
  423  as required by this section, to any member or employee of the
  424  board to obtain a registration, license, or certification under
  425  this section.
  426         (n) Has instructed an appraiser to violate any standard of
  427  professional practice established by rule of the board,
  428  including standards for the development or communication of a
  429  real estate appraisal or other provision of the Uniform
  430  Standards of Professional Appraisal Practice.
  431         (o) Has engaged in the development of an appraisal or the
  432  preparation of an appraisal report, unless the appraisal
  433  management company is owned or controlled by certified
  434  appraisers.
  435         (p) Has failed to communicate an appraisal without good
  436  cause.
  437         (q) Has accepted an appraisal assignment if the employment
  438  itself is contingent upon the appraisal management company
  439  reporting a predetermined result, analysis, or opinion or if the
  440  fee to be paid for the performance of the appraisal assignment
  441  is contingent upon the opinion, conclusion, or valuation reached
  442  upon the consequences resulting from the appraisal assignment.
  443         (r) Has failed to timely notify the department of any
  444  change in principal business location as an appraisal management
  445  company.
  446         (s) Has influenced or attempted to influence the
  447  development, reporting, or review of an appraisal through
  448  coercion, extortion, collusion, compensation, inducement,
  449  intimidation, bribery, or any other means, including, but not
  450  limited to:
  451         1. Withholding or threatening to withhold timely payment
  452  for an appraisal, unless such nonpayment is based upon specific
  453  quality or other service issues that constitute noncompliance
  454  with the appraisal engagement agreement.
  455         2. Withholding or threatening to withhold future business
  456  from an appraiser.
  457         3. Promising future business, promotions, or increased
  458  compensation for an appraiser, whether the promise is express or
  459  implied.
  460         4. Conditioning a request for appraisal services or the
  461  payment of an appraisal fee, salary, or bonus upon the opinion,
  462  conclusion, or valuation to be reached or upon a preliminary
  463  estimate or opinion requested from an appraiser.
  464         5. Requesting that an appraiser provide an estimated,
  465  predetermined, or desired valuation in an appraisal report or
  466  provide estimated values or comparable sales at any time before
  467  the appraiser’s completion of appraisal services.
  468         6. Providing to an appraiser an anticipated, estimated,
  469  encouraged, or desired value for a subject property or a
  470  proposed or target amount to be loaned to the borrower, except
  471  that a copy of the sales contract for purchase transactions may
  472  be provided.
  473         7. Providing to an appraiser, or any person related to the
  474  appraiser, stock or other financial or nonfinancial benefits.
  475         8. Allowing the removal of an appraiser from an appraiser
  476  panel without prior written notice to the appraiser.
  477         9. Obtaining, using, or paying for a second or subsequent
  478  appraisal or ordering an automated valuation model in connection
  479  with a mortgage financing transaction unless there is a
  480  reasonable basis to believe that the initial appraisal was
  481  flawed or tainted and such basis is clearly and appropriately
  482  noted in the loan file, or unless such appraisal or automated
  483  valuation model is issued pursuant to a bona fide prefunding or
  484  postfunding appraisal review or quality control process.
  485         10. Any other act or practice that impairs or attempts to
  486  impair an appraiser’s independence, objectivity, or
  487  impartiality.
  488         (t) Has altered, modified, or otherwise changed a completed
  489  appraisal report submitted by an appraiser to an appraisal
  490  management company.
  491         (u) Has employed, contracted with, or otherwise retained an
  492  appraiser whose registration, license, or certification is
  493  suspended or revoked to perform appraisal services or appraisal
  494  management services.
  495         (v) Has required or attempted to require an appraiser to
  496  sign any indemnification agreement that would require the
  497  appraiser to hold harmless the appraisal management company or
  498  its owners, agents, employees, or independent contractors from
  499  any liability, damage, loss, or claim arising from the services
  500  performed by the appraisal management company or its owners,
  501  agents, employees, or independent contractors and not the
  502  services performed by the appraiser.
  503         (w) Has failed to compensate an appraiser in accordance
  504  with s. 129E of the federal Truth in Lending Act, 15 U.S.C. s.
  505  1639e.
  506         Section 7. For the purpose of incorporating the amendment
  507  made by this act to section 475.6245, Florida Statutes, in a
  508  reference thereto, paragraph (b) of subsection (1) of section
  509  475.626, Florida Statutes, is reenacted to read:
  510         475.626 Violations and penalties.—
  511         (1) A person may not:
  512         (b) If an appraisal management company, commit any conduct
  513  or practice set forth in s. 475.6245.
  514         Section 8. For the purpose of incorporating the amendment
  515  made by this act to section 475.611, Florida Statutes, in a
  516  reference thereto, section 475.629, Florida Statutes, is
  517  reenacted to read:
  518         475.629 Retention of records.—An appraiser registered,
  519  licensed, or certified under this part shall prepare and retain
  520  a work file for each appraisal, appraisal review, or appraisal
  521  consulting assignment. An appraisal management company
  522  registered under this part shall prepare and retain an order
  523  file for each appraisal, appraisal review, or appraisal
  524  consulting assignment. The work file and the order file shall be
  525  retained for 5 years or the period specified in the Uniform
  526  Standards of Professional Appraisal Practice, whichever is
  527  greater. The work file must contain original or true copies of
  528  any contracts engaging the appraiser’s or appraisal management
  529  company’s services, appraisal reports, and supporting data
  530  assembled and formulated by the appraiser or company in
  531  preparing appraisal reports or engaging in appraisal management
  532  services and all other data, information, and documentation
  533  required by the standards for the development or communication
  534  of a real estate appraisal as approved and adopted by the
  535  Appraisal Standards Board of The Appraisal Foundation, as
  536  established by rule of the board. The order file must contain
  537  original or true copies of any contracts engaging the
  538  appraiser’s services, the appraisal reports, any engagement
  539  materials or instructions from the client, and all other
  540  documents required by the standards for the development or
  541  communication of a real estate appraisal as approved and adopted
  542  by the Appraisal Standards Board of The Appraisal Foundation, as
  543  established by rule of the board. Notwithstanding the foregoing,
  544  while general contracts and materials pertaining to impaneling
  545  of an appraiser by an appraisal management company shall be
  546  retained under this section, such contracts and materials are
  547  not required to be maintained within the order file. Except as
  548  otherwise specified in the Uniform Standards of Professional
  549  Appraisal Practice, the period for retention of the records
  550  applicable to each engagement of the services of the appraiser
  551  or appraisal management company runs from the date of the
  552  submission of the appraisal report to the client. Appraisal
  553  management companies shall also retain the company accounts,
  554  correspondence, memoranda, papers, books, and other records in
  555  accordance with administrative rules adopted by the board. These
  556  records must be made available by the appraiser or appraisal
  557  management company for inspection and copying by the department
  558  upon reasonable notice to the appraiser or company. If an
  559  appraisal has been the subject of or has served as evidence for
  560  litigation, reports and records must be retained for at least 2
  561  years after the trial or the period specified in the Uniform
  562  Standards of Professional Appraisal Practice, whichever is
  563  greater.
  564         Section 9. This act shall take effect October 1, 2017.