Bill Text: AZ HB2466 | 2017 | Fifty-third Legislature 1st Regular | Engrossed
Bill Title: Appraisals; allegations; complaints
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-02-21 - House motion to reconsider third reading [HB2466 Detail]
Download: Arizona-2017-HB2466-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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HOUSE BILL 2466 |
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AN ACT
amending sections 32‑3601, 32‑3605 and 32‑3609, Arizona Revised Statutes; amending title 32, chapter 36, article 3, Arizona Revised Statutes, by adding section 32‑3641; amending section 32‑3654, Arizona Revised Statutes; repealing section 32‑3656, Arizona Revised Statutes; amending section 32‑3677, Arizona Revised Statutes; relating to appraisals.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 32-3601, Arizona Revised Statutes, is amended to read:
32-3601. Definitions
In this chapter, unless the context otherwise requires:
1. "Allegation" means an assertion or accusation that is made without proof and that must be proven.
1. 2. "Appraisal" or "real estate appraisal" means a statement that is independently and impartially prepared by an individual setting forth an opinion as to the market value of real property as of a specific date and supported by the presentation and analysis of relevant market information.
2. 3. "Appraisal assignment" means an engagement for which a real estate appraiser is employed or retained to act, or would be perceived by third parties or the public in acting, as a disinterested third party in rendering an unbiased analysis, opinion or conclusion relating to the nature, quality, value or utility of specified interests in or aspects of identified real estate.
3. 4. "Appraisal foundation" means the appraisal foundation incorporated as an Illinois not‑for‑profit corporation on November 30, 1987.
4. 5. "Appraisal report" means any communication, written or oral, of an appraisal.
5. 6. "Appraisal review" means the act of reviewing or the report that follows a review of an appraisal assignment or appraisal report in which a real estate appraiser forms an opinion as to the adequacy and appropriateness of the report being reviewed.
6. 7. "Appraisal standards board" means the appraisal standards board appointed by the board of trustees of the appraisal foundation to develop, interpret and amend the uniform standards of professional appraisal practice.
7. 8. "Appraisal subcommittee" means the subcommittee of the federal financial institutions examination council created pursuant to 12 United States Code section 3310 and chapter 34A, as amended.
8. 9. "Appraiser qualifications board" means the appraiser qualifications board that is appointed by the board of trustees of the appraisal foundation to establish the minimum education, experience and examination requirements for real estate appraisers.
9. 10. "Complex one to four residential units" means property that is atypical for the marketplace. Atypical factors may include architectural style, age of improvements, size of improvements, size of lot, neighborhood land use, potential environmental hazard liability, leasehold interests, limited readily available comparable sales data or other unusual factors.
10. 11. "Course approval" means the act of the superintendent reviewing course materials to form an opinion as to the adequacy and appropriateness of the course for licensing pursuant to section 32‑3613, certification pursuant to section 32‑3614 and continuing education as prescribed in section 32‑3625 in accordance with the appraiser qualifications board and this chapter.
11. 12. "Federal financial institutions examination council" means that agency of the federal government created pursuant to 12 United States Code chapters 34 and 34A, as amended.
12. 13. "Federally related transaction" means any real estate related financial transaction that a federal financial institution's regulatory agency or the resolution trust corporation engages in, contracts for or regulates and that requires an appraisal.
13. 14. "Property tax agent" means an individual who is designated by a person or is an employee of an entity designated as an agent pursuant to section 42‑16001, who acts on behalf of a person who owns, controls or possesses property valued by a county assessor and who receives a fee for the analysis of any matter relating to the review of the valuation of the person's property before the assessor. Property tax agent does not include a person who is admitted to practice law in this state, an employee of the person owning, controlling or possessing the property or an employee of an entity designated pursuant to section 42‑16001, if the employee is performing a secretarial, clerical or administrative support function.
14. 15. "Real estate" means an identified parcel or tract of land, including improvements, if any.
15. 16. "Real estate related financial transaction" means any transaction involving the sale of, lease of, purchase of, investment in or exchange of real property, including interests in property or the financing of property, the refinancing of real property or interests in real property and the use of real property or interests in property as security for a loan or investment, including mortgage‑backed securities.
16. 17. "Real property" means one or more defined interests, benefits and rights inherent in the ownership of real estate.
17. 18. "Registered trainee appraiser" means a person who meets both of the following requirements:
(a) Is registered with the superintendent and meets the appraiser qualifications board's qualifications for trainee appraisers to perform appraisal services only under the direct supervision of a certified appraiser who has met the minimum criteria to be a supervisory appraiser.
(b) Accepts assignments only from the registered trainee appraiser's supervisory appraiser.
18. 19. "Review appraiser" means a person who engages in the activity of reviewing and evaluating the appraisal work of others from the perspective of an appraiser, generally for compensation as a separate skill. This includes the function of reviewing an appraisal report or a file memorandum setting forth the results of the review process.
19. 20. "Standards of professional appraisal practice" means the uniform standards of professional appraisal practice adopted by the superintendent.
20. 21. "State licensed State‑licensed or state certified state‑certified appraiser" means a person who develops and communicates appraisals and who holds a current, valid license or certificate issued under this chapter.
21. 22. "Superintendent" means the superintendent of financial institutions.
22. 23. "Supervisory appraiser" means a state certified state‑certified appraiser who has a supervisory appraiser designation and who:
(a) Has been in good standing for the last three years in the jurisdiction in which the registered trainee appraiser practices.
(b) Has not been disciplined in a manner that affects the supervisory appraiser's eligibility to engage in appraisal practice in any jurisdiction in the last three years.
(c) Directly supervises registered trainee appraisers by doing the following:
(i) Accepting responsibility for an appraisal by signing and certifying that the appraisal complies with the uniform standards of professional appraisal practice.
(ii) Reviewing and signing all registered trainee appraiser reports.
(iii) Personally inspecting each appraised property with the registered trainee appraiser.
23. 24. "Value" means the monetary relationship between properties and those who buy, sell or use those properties.
Sec. 2. Section 32-3605, Arizona Revised Statutes, is amended to read:
32-3605. Superintendent; duties; powers; immunity
A. The superintendent shall adopt rules in aid or in furtherance of this chapter.
B. The superintendent shall:
1. In prescribing standards of professional appraisal practice, adopt standards that at a minimum are equal to the standards prescribed by the appraisal standards board.
2. In prescribing criteria for certification, adopt criteria that at a minimum are equal to the minimum criteria for certification adopted by the appraiser qualifications board.
3. In prescribing criteria for licensing and registration, adopt criteria that at a minimum are equal to the minimum criteria for licensing and registration adopted by the appraiser qualifications board.
4. Further define by rule with respect to state licensed state‑licensed or state certified state‑certified appraisers appropriate and reasonable educational experience, appraisal experience and equivalent experience that meets the statutory requirement of this chapter.
5. Adopt the national examination as approved by the appraiser qualifications board for state certified state‑certified appraisers.
6. Adopt the national examination as approved by the appraiser qualifications board for state licensed state‑licensed appraisers.
7. Establish administrative procedures for approving or disapproving applications for registration, licensure and certification and issuing licenses and certificates, including registration certificates.
8. Define by rule, with respect to state licensed state‑licensed and certified state‑certified appraisers, the continuing education requirements for the renewal of licenses or certificates that satisfy the statutory requirements provided in this chapter.
9. Periodically review the requirements for the development and communication of appraisals provided in this chapter and adopt rules explaining and interpreting the requirements.
10. Define and explain by rule each stage and step associated with the administrative procedures for the disciplinary process pursuant to this chapter, including:
(a) Prescribing minimum criteria for accepting a complaint an allegation against a registered trainee appraiser, or a licensed or certified appraiser or a property tax agent. The superintendent may not consider a complaint an allegation for administrative action if the complaint allegation either:
(i) Relates to an appraisal that was completed more than five years before the complaint allegation was submitted to the superintendent or more than two years after final disposition of any judicial proceeding in which the appraisal was an issue, whichever period of time is greater.
(ii) Is filed against a person who is a staff person of the department of financial institutions and the person is a licensed or certified appraiser and the complaint allegation is against the person's license or certificate and relates to the person's performance of duties. This item does not apply to a contract investigator who is under contract with the department for the performance of an appraisal review as defined by the uniform standards of professional appraisal practice. This item does not remove the requirement that the staff person is be subject to the ethics rules section of the uniform standards of professional appraisal practice.
(b) Defining the process and procedures used in investigating the superintendent's investigation of the allegations of the complaint. The superintendent shall consolidate complaints allegations that are filed within a six-month period of time if the complaints allegations are against the same appraiser, relate to the same appraisal and property and are filed by an entity that is subject to the mandatory reporting provisions of the Dodd‑Frank Wall Street reform and consumer protection act (P.L. 111‑203; 124 Stat. 1376). Complaints Allegations that are consolidated pursuant to this subdivision must be considered and adjudicated as one complaint allegation. If the superintendent determines that there is a violation of this chapter, the allegation becomes a complaint.
(c) Defining the process and procedures used in hearings on the a complaint, including a description of the rights of the superintendent and any person who is alleged to have committed the violation.
(d) Establishing criteria to be used in determining the appropriate actions for violations.
11. Communicate information that is useful to the public and appraisers relating to actions for violations.
12. Issue decrees of censure, fix periods and terms of probation and suspend and revoke licenses and certificates pursuant to the disciplinary proceedings provided for in section 32‑3631.
13. At least monthly transmit to the appraisal subcommittee a roster listing individuals who have received a state certificate or license in accordance with this chapter.
14. Report on the disposition of any matter referred by the appraisal subcommittee or any other federal agency or instrumentality or federally recognized entity reporting any action of a state licensed state‑licensed or state certified state‑certified appraiser that is contrary to this chapter.
15. Make a determination and finding if there exists a scarcity of state certified or state licensed appraisers to perform appraisals in connection with federally related transactions in this state and issue resident temporary licenses and certificates pursuant to section 32‑3626.
16. Transmit the national registry fee collected pursuant to section 32‑3607 to the appraisal subcommittee.
17. Establish the fees in accordance with section 32‑3607.
18. Perform such other functions and duties as may be necessary to carry out this chapter.
C. The superintendent may accept and spend federal monies and grants, gifts, contributions and devises from any public or private source to assist in carrying out the purposes of this chapter. These monies do not revert to the state general fund at the end of the fiscal year.
D. The board superintendent may impose a civil penalty pursuant to section 32‑3632.
Sec. 3. Section 32-3609, Arizona Revised Statutes, is amended to read:
32-3609. Confidential records
Except as otherwise provided by law, the following records are confidential:
1. Questions contained in any examination administered by or for the board superintendent or in any examination submitted to the board superintendent for course approval.
2. Questions asked and the answers of individual examinees, except that the board superintendent shall provide the grades of each examinee for public inspection and copying.
3. Appraisal reports or appraisal reviews and supporting documentation deemed confidential under the uniform standards of professional appraisal practice edition adopted by the board superintendent.
4. All documents associated with a complaint until the complaint is resolved.
5. An allegation that the superintendent dismisses, and the superintendent may not do either of the following:
(a) Disclose the allegation in response to a telephone inquiry.
(b) Place information regarding the allegation on the department's website.
Sec. 4. Title 32, chapter 36, article 3, Arizona Revised Statutes, is amended by adding section 32-3641, to read:
32-3641. Statute of limitations; actions
A. An action for a recovery of damages against a person for a violation of this chapter must be commenced not later than the earliest of the following:
1. The expiration of the applicable statute of limitations for the type of claim being pursued.
2. Five years after the date on which the appraisal resulting in the action was completed or should have been completed.
3. Five years after the date on which the appraisal‑related service resulting in the action was performed or should have been performed.
B. Subsection A of this section does not apply to an action alleging that a state‑licensed or state‑certified appraiser, a registered trainee appraiser, an appraisal management company as defined in section 32‑3661 or a mortgage lender knowingly and intentionally did either of the following:
1. Committed fraud.
2. Made misrepresentations when performing a real estate appraisal or when providing an appraisal‑related service.
Sec. 5. Section 32-3654, Arizona Revised Statutes, is amended to read:
32-3654. Disciplinary actions
A. On the complaint of an allegation by any person or on its the superintendent's own motion, the board superintendent shall investigate any suspected violation of this article by a property tax agent. If the board superintendent finds a violation, it the superintendent may issue a letter of concern.
B. If the board superintendent finds that the property tax agent committed any of the following violations, it the superintendent shall revoke or suspend the agent's registration:
1. Secured registration by fraud or deceit.
2. Committed an act or is responsible for an omission involving fraud or knowing misrepresentation with the intent to obtain a benefit.
3. Knowingly violated section 32‑3653.
C. The board superintendent shall:
1. Suspend the agent's registration for not less than six months on the first finding of a violation pursuant to subsection B of this section.
2. Suspend the agent's registration for not less than twelve months on the second finding of a violation pursuant to subsection B of this section.
3. Revoke the agent's registration on a third or subsequent finding of a violation pursuant to subsection B of this section.
D. The board superintendent shall not impose discipline until the agent has been provided an opportunity for a hearing before the board pursuant to title 41, chapter 6, article 10. The board superintendent shall notify the agent of the charges and the date and time of the hearing. The notice may be personally served or sent by certified mail to the agent's last known address. Except as provided in section 41‑1092.08, subsection H, the final decision of the board superintendent is subject to judicial review pursuant to title 12, chapter 7, article 6.
E. The board superintendent shall not renew an agent's registration during the time the registration is suspended or revoked.
Sec. 6. Repeal
Section 32‑3656, Arizona Revised Statutes, is repealed.
Sec. 7. Section 32-3677, Arizona Revised Statutes, is amended to read:
32-3677. Adjudication of disputes
A. Except within the first sixty days after an independent appraiser is first added to the appraiser panel of an appraisal management company, an appraisal management company shall not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real property appraisal services to an independent appraiser, without notifying the appraiser in writing of the reasons for the appraiser being removed from the appraiser panel of the appraisal management company.
B. An independent appraiser that is removed from the appraiser panel of an appraisal management company for alleged illegal conduct, a violation of the uniform standards of professional appraisal practice or a violation of state licensing standards may file a complaint an allegation with the board superintendent for a review of the decision of the appraisal management company, except that in no case shall the board superintendent may not make any determination regarding the nature of the business relationship between the appraiser and the appraisal management company that is unrelated to the actions specified in subsection A of this section.
C. If an independent appraiser files a complaint an allegation against an appraisal management company pursuant to subsection B of this section, the board superintendent shall adjudicate investigate the complaint allegation within a reasonable time.
D. If, after an opportunity for a hearing and review, the board superintendent determines that an independent appraiser did not commit a violation of law, a violation of the uniform standards of professional appraisal practice or a violation of state licensing standards, the board superintendent shall order that the appraiser be added to the appraiser panel of the appraisal management company that was the subject of the complaint allegation without prejudice. The board superintendent shall furnish the appraisal management company with all written documentation and investigation records that support the board's superintendent's findings.
