Bill Text: IA HF2393 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to real estate appraisal, including by requiring the superintendent of banking to regulate appraisal management companies and supervise the Iowa real estate appraiser board, making penalties applicable, and including effective date provisions. (Formerly HSB 596) (See Cmte. Bill HF 2436)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2016-03-22 - Withdrawn. H.J. 521. [HF2393 Detail]
Download: Iowa-2015-HF2393-Introduced.html
House File 2393 - Introduced HOUSE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 596) A BILL FOR 1 An Act relating to real estate appraisal, including by 2 requiring the superintendent of banking to regulate 3 appraisal management companies and supervise the Iowa real 4 estate appraiser board, making penalties applicable, and 5 including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5368HV (1) 86 gh/rn PAG LIN 1 1 DIVISION I 1 2 APPRAISAL MANAGEMENT COMPANIES 1 3 Section 1. NEW SECTION. 543E.1 Short title. 1 4 This chapter shall be known and may be cited as the "Iowa 1 5 Appraisal Management Company Registration and Supervision Act". 1 6 Sec. 2. NEW SECTION. 543E.2 Purpose and scope. 1 7 The purpose of this chapter is to protect the independence 1 8 and integrity of the appraisal process when an appraisal is 1 9 provided through an appraisal management company in connection 1 10 with a consumer credit transaction secured by the principal 1 11 dwelling of an Iowa consumer or securitization of such a 1 12 transaction. 1 13 Sec. 3. NEW SECTION. 543E.3 Definitions. 1 14 Unless the context otherwise requires, the definitions 1 15 contained in section 543D.2 shall apply to this chapter. In 1 16 addition, the following definitions shall apply for purposes of 1 17 this chapter: 1 18 1. "Administrator" means the superintendent of the 1 19 division of banking of the department of commerce or the 1 20 superintendent's designee. 1 21 2. "Appraisal management company" means a person that 1 22 oversees an appraiser panel of more than fifteen certified 1 23 appraisers in this state or twenty=five or more certified 1 24 or licensed appraisers nationally within a year, and that 1 25 directly or indirectly performs appraisal management services 1 26 for creditors or secondary mortgage market participants in 1 27 connection with consumer credit transactions secured by the 1 28 principal dwellings of Iowa consumers or securitizations of 1 29 those transactions. 1 30 3. "Appraisal management services" means any of the 1 31 following: 1 32 a. Recruiting, selecting, and retaining appraisers. 1 33 b. Contracting with state certified or licensed appraisers 1 34 to perform appraisal assignments. 1 35 c. Managing the process of having an appraisal performed, 2 1 including providing administrative services such as receiving 2 2 appraisal orders and appraisal reports, submitting completed 2 3 appraisal reports to creditors and secondary mortgage market 2 4 participants, collecting fees from creditors and secondary 2 5 mortgage market participants for services provided, and paying 2 6 appraisers for services performed. 2 7 d. Reviewing and verifying the work of appraisers. 2 8 4. "Appraisal review" means developing and communicating an 2 9 opinion under the uniform standards of professional appraisal 2 10 practice review standards regarding the quality of another 2 11 appraiser's work product prepared as part of an appraisal 2 12 assignment. An "appraisal review" does not include quality 2 13 control solely to assure an appraisal report is complete, or to 2 14 correct grammatical, typographical, or other similar errors. 2 15 5. "Appraisal subcommittee" means the appraisal subcommittee 2 16 of the federal financial institutions examination council. 2 17 6. "Appraiser" means a person who holds a certificate as a 2 18 certified real estate appraiser issued under chapter 543D. 2 19 7. "Appraiser panel" means a network, list, or roster of 2 20 certified appraisers who are independent contractors with 2 21 an appraisal management company and who have been selected 2 22 and approved by the appraisal management company to perform 2 23 appraisals directly for the appraisal management company or 2 24 for persons that have ordered appraisals through the appraisal 2 25 management company. Appraisers on an appraisal management 2 26 company's appraiser panel may include both appraisers engaged 2 27 to perform one or more appraisals for covered transactions or 2 28 for secondary mortgage market participants in connection with 2 29 covered transactions, and appraisers accepted by the appraisal 2 30 management company for consideration for future appraisal 2 31 assignments for such purposes, as the administrator may further 2 32 provide by rule. 2 33 8. "Associate real estate appraiser" means a person who is 2 34 registered with the Iowa real estate appraiser examining board 2 35 under section 543D.20. 3 1 9. "Consumer credit" means credit offered or extended to a 3 2 consumer primarily for personal, family, or household purposes. 3 3 10. "Controlling person" means any of the following: 3 4 a. An owner, officer, or director of an appraisal management 3 5 company. 3 6 b. An individual employed, appointed, or authorized by 3 7 an appraisal management company who has the authority to 3 8 enter into a contractual relationship with other persons for 3 9 the performance of appraisal management services or has the 3 10 authority to enter into agreements with appraisers for the 3 11 performance of appraisals. 3 12 c. An individual who possesses, directly or indirectly, the 3 13 power to direct or cause the direction of the management or 3 14 policies of an appraisal management company. 3 15 11. "Covered transaction" means any consumer credit 3 16 transaction secured by the consumer's principal dwelling. 3 17 12. "Creditor" means a person who regularly extends consumer 3 18 credit that is subject to a finance charge or is payable by 3 19 written agreement in more than four installments, not including 3 20 a down payment, and to whom the obligation is initially 3 21 payable, either on the face of the note or contract, or by 3 22 agreement when there is no note or contract. For purposes of 3 23 this subsection, a person "regularly extends consumer credit" 3 24 if the person extended credit, other than credit subject to 3 25 the requirements of 12 C.F.R. {1026.32, more than five times 3 26 in the preceding calendar year for transactions secured by a 3 27 dwelling. If a person did not meet those numerical standards 3 28 in the preceding calendar year, the numerical standards 3 29 shall be applied to the current calendar year. A person also 3 30 "regularly extends consumer credit" if, in any twelve=month 3 31 period, the person originates more than one credit extension 3 32 that is subject to the requirements of 12 C.F.R. {1026.32 or 3 33 one or more such credit extensions through a mortgage broker. 3 34 13. "Dwelling" means a residential structure that contains 3 35 one to four units, whether or not that structure is attached to 4 1 real property. "Dwelling" includes an individual condominium 4 2 unit, cooperative unit, mobile home, and trailer, if it is used 4 3 as a residence. 4 4 14. "Federally regulated appraisal management company" means 4 5 an appraisal management company that is owned and controlled 4 6 by an insured depository institution, as defined in 12 U.S.C. 4 7 {1813 and regulated by the office of the comptroller of the 4 8 currency, the board of governors of the federal reserve system, 4 9 or the federal deposit insurance corporation. 4 10 15. "Federally related transaction regulations" means 4 11 regulations established by the comptroller of the currency, the 4 12 board of governors of the federal reserve system, the federal 4 13 deposit insurance corporation, or the national credit union 4 14 administration pursuant to sections 1112, 1113, and 1114 of 4 15 Tit. XI of the federal Financial Institutions Reform, Recovery, 4 16 and Enforcement Act, 12 U.S.C. {{3341=3343. 4 17 16. "National registry" means the registry of 4 18 state=registered appraisal management companies and federally 4 19 regulated appraisal management companies maintained by the 4 20 appraisal subcommittee. 4 21 17. "Nonsubstantive reason" means a reason not described in 4 22 section 543E.17 to constitute grounds for disciplinary action, 4 23 including but not limited to the failure to pay appropriate 4 24 fees. 4 25 18. "Person" means as defined in section 4.1. 4 26 19. "Principal dwelling" means the primary residence of a 4 27 consumer. For purposes of this chapter, a consumer may have 4 28 only one "principal dwelling". A vacation or other second home 4 29 shall not be considered a "principal dwelling". However, if 4 30 a consumer buys or builds a new dwelling that will become the 4 31 consumer's primary residence within a year or upon completion 4 32 of the construction, the new residence is considered the 4 33 "principal dwelling" for purposes of this chapter. 4 34 20. "Secondary mortgage market participant" means a guarantor 4 35 or insurer of mortgage=backed securities, or an underwriter 5 1 or issuer of mortgage=backed securities. "Secondary mortgage 5 2 market participant" only includes an individual investor in a 5 3 mortgage=backed security if that investor also serves in the 5 4 capacity of a guarantor, insurer, underwriter, or issuer for 5 5 the mortgage=backed security. 5 6 21. "States" means the fifty states of the United States, 5 7 the District of Columbia, and the territories of American 5 8 Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the 5 9 United States Virgin Islands. 5 10 22. "Substantive reason" means a reason specified in section 5 11 543E.17 as constituting grounds for disciplinary action. 5 12 23. "Uniform standards of professional appraisal practice" 5 13 means the uniform standards promulgated by the appraisal 5 14 standards board of the appraisal foundation. 5 15 Sec. 4. NEW SECTION. 543E.4 Registration required. 5 16 A person shall not directly or indirectly engage in or 5 17 attempt to engage in business as an appraisal management 5 18 company or advertise or hold itself out as engaging in or 5 19 conducting business as an appraisal management company in this 5 20 state without first registering with the administrator. 5 21 Sec. 5. NEW SECTION. 543E.5 Exemptions. 5 22 This chapter shall not apply to any of the following: 5 23 1. A person that exclusively employs appraisers on an 5 24 employer and employee basis for the performance of appraisals. 5 25 2. A government body, as defined in section 22.1, subsection 5 26 1, that performs appraisals or retains appraisers on behalf of 5 27 the government body. 5 28 3. A federally regulated appraisal management company. 5 29 4. A department or division of an entity that provides 5 30 appraisal management services only to that entity. 5 31 Sec. 6. NEW SECTION. 543E.6 Ownership == restrictions and 5 32 requirements. 5 33 1. An appraisal management company registered or applying 5 34 for registration in this state shall not be directly or 5 35 indirectly owned in whole or in part by a person who has had a 6 1 license or certificate to act as an appraiser refused, denied, 6 2 canceled, revoked, or surrendered in lieu of revocation in 6 3 any state for a substantive reason. An appraisal management 6 4 company may be directly or indirectly owned in whole or in part 6 5 by a person who has had a license or certificate to act as an 6 6 appraiser refused, denied, canceled, revoked, or surrendered 6 7 in lieu of revocation in a state for a nonsubstantive reason 6 8 if the license or certificate was subsequently granted or 6 9 reinstated. 6 10 2. A person who directly or indirectly owns more than ten 6 11 percent of an appraisal management company in this state shall 6 12 be of good moral character, as prescribed by rules adopted by 6 13 the administrator consistent with applicable federal law and 6 14 regulations, and shall submit to a background investigation, 6 15 as prescribed by rules adopted by the administrator consistent 6 16 with applicable federal law and regulations. 6 17 Sec. 7. NEW SECTION. 543E.7 Designation of controlling 6 18 person. 6 19 1. An appraisal management company registered or applying 6 20 for registration in this state shall designate a controlling 6 21 person who shall be the main contact for all communications 6 22 between the administrator and the appraisal management company, 6 23 and who shall be responsible for assuring the appraisal 6 24 management company complies with the provisions of this chapter 6 25 when performing appraisal management services in connection 6 26 with real estate located in this state. 6 27 2. The designated controlling person shall not have had a 6 28 license or certificate to act as an appraiser refused, denied, 6 29 canceled, revoked, or surrendered in lieu of revocation in 6 30 any state for a substantive reason. A designated controlling 6 31 person may have had a license or certificate to act as an 6 32 appraiser refused, denied, canceled, revoked, or surrendered 6 33 in lieu of revocation in a state for a nonsubstantive reason 6 34 if the license or certificate was subsequently granted or 6 35 reinstated. 7 1 3. The designated controlling person shall be of good moral 7 2 character, as prescribed by rules adopted by the administrator 7 3 consistent with applicable federal law and regulations, and 7 4 shall submit to a background investigation, as prescribed by 7 5 rules adopted by the administrator consistent with applicable 7 6 federal law and regulations. 7 7 Sec. 8. NEW SECTION. 543E.8 Registration == application 7 8 requirements. 7 9 1. An application for registration as an appraisal 7 10 management company shall be submitted on a form prescribed by 7 11 the administrator. 7 12 2. An application shall at a minimum include the following: 7 13 a. The name, form of business entity, contact information, 7 14 and official domicile of the applicant. 7 15 b. The names and contact information for all persons 7 16 who directly or indirectly own more than ten percent of the 7 17 applicant and for the controlling person designated pursuant 7 18 to section 543E.7, and such additional information the 7 19 administrator may need to enforce section 543E.6, subsection 1. 7 20 c. Information as reasonably necessary to establish the size 7 21 of the applicant's nationwide and Iowa appraiser panels, in 7 22 accordance with rules adopted by the administrator. 7 23 d. Certification that the applicant does all of the 7 24 following: 7 25 (1) Verifies that appraisers who perform appraisal 7 26 assignments concerning real estate located in this state hold a 7 27 valid, unexpired certificate in good standing as a real estate 7 28 appraiser issued under chapter 543D. 7 29 (2) Requires that appraisals provided or coordinated by the 7 30 applicant comply with the uniform standards of professional 7 31 appraisal practice and has a system in place to monitor such 7 32 compliance. 7 33 (3) Maintains a system to assure that appraisal 7 34 management services are performed independently and free from 7 35 inappropriate influence and coercion pursuant to the appraisal 8 1 independence standards established under section 129E of the 8 2 federal Truth in Lending Act, including the requirements for 8 3 the payment of reasonable and customary fees, and pursuant to 8 4 section 543D.18, subsections 1 and 2, and section 543D.18A. 8 5 (4) Maintains a system to retain detailed records of all 8 6 appraisal management services to be performed in this state. 8 7 (5) Maintains a system to assure that the appraiser selected 8 8 for an appraisal assignment is independent of the transaction 8 9 and has the requisite education, expertise, and experience 8 10 necessary to competently complete the appraisal assignment for 8 11 the particular market and property type. 8 12 e. If the applicant is not domiciled in this state, the name 8 13 and contact information for the applicant's agent for service 8 14 of process in this state and consent to service of process upon 8 15 the secretary of state in any action or proceeding against the 8 16 applicant arising out of a transaction or operation connected 8 17 with or incidental to services performed by the applicant as 8 18 a registered appraisal management company in this state or 8 19 involving real property located in this state. 8 20 f. Any additional information that is reasonably needed for 8 21 the administrator to implement the provisions of this chapter 8 22 and assure that the applicant is eligible for registration 8 23 under this chapter. 8 24 Sec. 9. NEW SECTION. 543E.9 Registration renewal and annual 8 25 certification. 8 26 1. A registration issued under this chapter shall be valid 8 27 for one year as provided by rule. 8 28 2. An application to renew registration shall be submitted 8 29 in the form and in the manner prescribed by the administrator. 8 30 The administrator may further require periodic disclosures of 8 31 changes impacting registration, such as a change in ownership 8 32 or the designated controlling person. 8 33 3. An application to renew registration shall contain the 8 34 information described in section 543E.8, subsection 2. 8 35 4. A registration issued under this chapter shall lapse if 9 1 not timely renewed, in accordance with rules adopted by the 9 2 administrator. 9 3 5. A person holding a lapsed registration shall not directly 9 4 or indirectly engage in or attempt to engage in business as an 9 5 appraisal management company or advertise or hold itself out as 9 6 engaging in or conducting business as an appraisal management 9 7 company in this state until the registration has been 9 8 reinstated under the process prescribed by the administrator 9 9 by rule. 9 10 Sec. 10. NEW SECTION. 543E.10 Fees. 9 11 1. The administrator shall by rule establish fees for 9 12 registration, renewal, reinstatement, and such additional fees 9 13 as are reasonably necessary for the administration of this 9 14 chapter. The fees shall be established in consideration of 9 15 the costs of administering this chapter and the actual cost 9 16 of the specific service to be provided or performed. The 9 17 administrator shall periodically review and adjust the schedule 9 18 of fees as needed to cover projected expenses. 9 19 2. Except as provided in subsection 3, all fees collected 9 20 under this chapter shall be deposited into the department of 9 21 commerce revolving fund created in section 546.12 and are 9 22 appropriated to the administrator to be used to administer 9 23 this chapter including but not limited to purposes such as 9 24 examinations, investigations, and administrative staffing. 9 25 Notwithstanding section 8.33, moneys appropriated pursuant to 9 26 this subsection are not subject to reversion to the general 9 27 fund of the state. 9 28 3. The administrator shall also collect the national 9 29 registry fee from each appraisal management company seeking 9 30 to register in this state and from federally regulated 9 31 appraisal management companies operating in this state. The 9 32 administrator shall transfer all national registry fees 9 33 collected by the administrator to the appraisal subcommittee. 9 34 Sec. 11. NEW SECTION. 543E.11 Appraiser, appraisal review, 9 35 and employee restrictions. 10 1 1. The following individuals shall not have had a license or 10 2 certificate to act as an appraiser refused, denied, canceled, 10 3 revoked, or surrendered in lieu of revocation in any state 10 4 for a substantive reason, but may have had a license or 10 5 certificate to act as an appraiser refused, denied, canceled, 10 6 revoked, or surrendered in lieu of revocation in a state for 10 7 a nonsubstantive reason if the license or certificate was 10 8 subsequently granted or reinstated: 10 9 a. An appraiser in an appraisal management company's 10 10 appraiser panel who performs or may perform appraisals of real 10 11 estate located in this state. 10 12 b. An employee, independent contractor, or other agent of 10 13 an appraisal management company who performs or may perform an 10 14 appraisal review of an appraisal of real estate located in this 10 15 state. 10 16 c. An employee, independent contractor, or other agent 10 17 of an appraisal management company who does or may, with 10 18 respect to real estate located in this state, have any 10 19 responsibility for assigning appraisers to specific appraisal 10 20 assignments, providing quality control for appraisal reports, 10 21 or communicating with appraisers regarding potential appraisal 10 22 report deficiencies. 10 23 2. An appraiser who on behalf of an appraisal management 10 24 company performs or may perform an appraisal review of an 10 25 appraisal of a dwelling located in this state shall comply with 10 26 the review provisions of the uniform standards of professional 10 27 appraisal practice, and shall be certified as an appraiser 10 28 under the laws of any state, except that a review appraiser 10 29 shall be certified under chapter 543D if such certification 10 30 is required by any applicable state or federal law, rule, or 10 31 regulation, or to the extent the review appraiser provides 10 32 the review appraiser's own opinion of value, concurs with the 10 33 original appraiser's opinion of value, or disagrees with the 10 34 original appraiser's opinion of value. 10 35 3. An appraisal management company may rely on the national 11 1 registry for purposes of verifying compliance with this 11 2 section. 11 3 Sec. 12. NEW SECTION. 543E.12 Adherence to standards == 11 4 mandatory reporting. 11 5 1. An appraisal management company shall direct all 11 6 appraisers it requests to perform appraisal assignments 11 7 involving real estate located in this state to comply with the 11 8 uniform standards of professional appraisal practice, including 11 9 the competency rule. 11 10 2. An appraisal management company shall have an appraisal 11 11 review system in place to monitor compliance with subsection 1. 11 12 3. An appraisal management company that has a reasonable 11 13 basis to believe an appraiser has materially failed to 11 14 comply with the uniform standards of professional appraisal 11 15 practice or has otherwise materially violated chapter 543D or 11 16 this chapter shall refer the matter to the administrator in 11 17 conformance with applicable federal law and regulations. An 11 18 appraisal management company that has a reasonable basis to 11 19 believe another appraisal management company is failing to 11 20 comply with the provisions of this chapter shall refer the 11 21 matter to the administrator in conformance with section 272C.9, 11 22 subsection 2. 11 23 4. An appraiser who is employed by or is on the appraiser 11 24 panel of an appraisal management company registered under this 11 25 chapter who has a reasonable basis to believe the appraisal 11 26 management company is in violation of this chapter shall refer 11 27 the matter to the administrator. 11 28 Sec. 13. NEW SECTION. 543E.13 Recordkeeping == payment. 11 29 1. An appraisal management company shall maintain a 11 30 detailed record of each service request the appraisal 11 31 management company receives involving real estate located in 11 32 this state and the identity of the appraiser who performs the 11 33 appraisal assignment. All such records shall be maintained for 11 34 at least five years after the request is sent by the appraisal 11 35 management company to the appraiser or the completion of the 12 1 appraisal report, whichever period expires later. An appraisal 12 2 management company shall maintain such additional records 12 3 regarding appraisal management services performed in this state 12 4 as the administrator may specify by rule. 12 5 2. An appraisal management company shall, except in the 12 6 case of breach of contract or substandard performance of 12 7 an appraisal service, make payment to an appraiser for the 12 8 completion of an appraisal service within forty=five days 12 9 of the date on which the appraiser transmits or otherwise 12 10 provides the results of the completed appraisal service to the 12 11 appraisal management company. An appraisal management company 12 12 shall maintain detailed records to verify that all payments to 12 13 appraisers have been made in compliance with this section. All 12 14 such records shall be maintained for at least five years after 12 15 payment is made or the completion of the appraisal service, 12 16 whichever is later. 12 17 Sec. 14. NEW SECTION. 543E.14 Appraiser independence == 12 18 compensation. 12 19 1. An appraisal management company registered under 12 20 this chapter shall take all reasonable steps to assure 12 21 that appraisals are conducted independently and free from 12 22 inappropriate influence or coercion pursuant to the appraisal 12 23 independence standards established under section 129E of the 12 24 federal Truth in Lending Act, including the requirements for 12 25 the payment of reasonable and customary fees, and in compliance 12 26 with the independence, objectivity, and impartiality provisions 12 27 of section 543D.18, subsections 1 and 2, and section 543D.18A. 12 28 2. An appraisal management company shall compensate 12 29 appraisers at a rate that is reasonable and customary for 12 30 appraisal services being performed in the market area of the 12 31 property being appraised in accordance with federal law. 12 32 Sec. 15. NEW SECTION. 543E.15 Prohibited acts. 12 33 An appraisal management company registered under this 12 34 chapter, or an employee, owner, director, controlling person, 12 35 or other agent of an appraisal management company, shall not 13 1 do any of the following: 13 2 1. Require an appraiser to indemnify an appraisal 13 3 management company or hold an appraisal management company 13 4 harmless for any liability, damage, losses, or claims arising 13 5 out of the services performed by the appraisal management 13 6 company, and not the services performed by the appraiser. 13 7 2. Alter, modify, or otherwise change a completed appraisal 13 8 report submitted by an appraiser without the appraiser's 13 9 written consent. 13 10 3. Require that an appraiser provide the appraisal 13 11 management company with the appraiser's digital or electronic 13 12 signature, seal, or certification, or any password or other 13 13 form of security intended to prevent persons other than the 13 14 appraiser from affixing the appraiser's digital or electronic 13 15 signature, seal, or certification on a completed appraisal 13 16 report. 13 17 4. Remove an appraiser from an appraiser panel without prior 13 18 written notice that identifies the basis for removal. Upon 13 19 request or in conjunction with an examination, an appraisal 13 20 management company shall forward to the administrator copies 13 21 of such notices issued to an appraiser located or certified in 13 22 Iowa. 13 23 5. Require an appraiser to modify any aspect of an appraisal 13 24 report other than through a request permitted under section 13 25 543D.18A, subsection 4. 13 26 6. Require an appraiser to perform an appraisal assignment 13 27 if the appraiser has notified the appraisal management company 13 28 that, in the appraiser's own professional judgment, any of the 13 29 following apply: 13 30 a. The appraiser does not have the necessary competence or 13 31 expertise for the specific geographic area or type of property 13 32 to be appraised. 13 33 b. The timeframe under which the appraisal assignment is 13 34 to be performed is insufficient for the appraiser to meet all 13 35 relevant legal and professional obligations. 14 1 7. Require, either knowingly or through lack of reasonable 14 2 diligence, an appraiser to take any action that would violate 14 3 the uniform standards of professional appraisal practice, or 14 4 any provision of chapter 543D or rule adopted pursuant thereto. 14 5 8. Prohibit an appraiser from disclosing the fee paid to the 14 6 appraiser for appraisal services in the appraisal report. 14 7 9. Prohibit or inhibit lawful communications between the 14 8 appraiser and the lender, a real estate salesperson or broker, 14 9 or any other person from whom the appraiser, in the appraiser's 14 10 own professional judgment, believes information obtained would 14 11 be relevant to the appraisal assignment. 14 12 10. Condition payment of all or any part of an appraiser's 14 13 fee or the appraisal management company's fee on a particular 14 14 outcome, including but not limited to any of the following 14 15 outcomes: 14 16 a. A loan closing. 14 17 b. A specific dollar amount in an appraisal report. 14 18 c. An outcome that would violate section 543D.18, subsection 14 19 2, or section 543D.18A, subsection 1. 14 20 11. Engage in any acts or practices that violate section 14 21 543E.14. 14 22 Sec. 16. NEW SECTION. 543E.16 Display of registration 14 23 number. 14 24 An appraisal management company registered under this 14 25 chapter shall be issued a unique registration number and shall 14 26 include its registration number in any record, such as an 14 27 engagement letter, order, or agreement, in which the appraisal 14 28 management company contracts with an appraiser to perform an 14 29 appraisal assignment involving real estate located in this 14 30 state. 14 31 Sec. 17. NEW SECTION. 543E.17 Grounds for disciplinary 14 32 action. 14 33 1. After notice and hearing, the administrator may 14 34 revoke, suspend, or refuse to issue, renew, or reinstate 14 35 a registration; reprimand, censure, or limit the scope of 15 1 practice of any registrant; impose a civil penalty not to 15 2 exceed ten thousand dollars per violation; require remedial 15 3 action; or place any registrant on probation; all with or 15 4 without terms, conditions, or in combinations of remedies, for 15 5 any one or more of the following reasons: 15 6 a. Fraud or deceit in obtaining registration, which may also 15 7 result in permanent revocation of the registration. 15 8 b. Dishonesty, fraud, or gross negligence in the provision 15 9 of appraisal management services. 15 10 c. A violation of this chapter or implementing rules by 15 11 the appraisal management company or by an employee, owner, 15 12 director, controlling person, or other agent of the appraisal 15 13 management company. 15 14 d. Conviction of a felony or other indictable offense, any 15 15 element of which is dishonesty, deception, or fraud, or is 15 16 otherwise related to the performance of appraisal management 15 17 services, under the laws of any state or the United States. 15 18 e. Cancellation, revocation, suspension, or refusal to renew 15 19 the authority to practice as an appraisal management company, 15 20 or the acceptance of the voluntary surrender of a registration 15 21 to practice as an appraisal management company to conclude a 15 22 disciplinary investigation or action, by any other state, a 15 23 federal agency, or foreign authority for any cause other than 15 24 failure to pay appropriate fees in the other jurisdiction. 15 25 f. A violation of section 272C.10. 15 26 2. When determining whether to initiate a disciplinary 15 27 proceeding against an appraisal management company based 15 28 on actions or omissions by an employee, owner, director, 15 29 controlling person, or other agent of the appraisal management 15 30 company, the administrator shall take into consideration all 15 31 of the following: 15 32 a. Whether the appraisal management company took reasonable 15 33 steps to prevent the violation. 15 34 b. Whether the violation was or could have been discovered 15 35 by the appraisal management company upon reasonable inquiry. 16 1 c. What steps the appraisal management company took upon 16 2 discovering the violation. 16 3 d. Whether the violation could have been avoided had the 16 4 appraisal management company established the systems or other 16 5 procedures required under this chapter. 16 6 e. Whether the violation is an isolated matter or more 16 7 systemic to the appraisal management company's performance. 16 8 Sec. 18. NEW SECTION. 543E.18 Unlawful practice == 16 9 complaints and investigations == remedies and penalties. 16 10 1. If, as the result of a complaint or otherwise, the 16 11 administrator believes that a person has engaged, or is about 16 12 to engage, in an act or practice that constitutes or will 16 13 constitute a violation of this chapter, the administrator may 16 14 make application to the district court for an order enjoining 16 15 such act or practice. Upon a showing by the administrator that 16 16 such person has engaged, or is about to engage, in any such act 16 17 or practice, an injunction, restraining order, or other order 16 18 as may be appropriate shall be granted by the district court. 16 19 2. The administrator may investigate a complaint or 16 20 initiate a complaint against a person who is not registered 16 21 under this chapter to determine whether grounds exist to make 16 22 application to the district court pursuant to subsection 1 or 16 23 to issue an order pursuant to subsection 3, and in connection 16 24 with such complaint or investigation may issue subpoenas to 16 25 compel witnesses to testify or persons to produce evidence 16 26 consistent with the provisions of section 272C.6, subsection 16 27 3, as needed to determine whether probable cause exists to 16 28 initiate a proceeding under this section or to make application 16 29 to the district court for an order enjoining a violation of 16 30 this chapter. 16 31 3. In addition to or as an alternative to making application 16 32 to the district court for an injunction, the administrator may 16 33 issue an order to a person who is not registered under this 16 34 chapter to require compliance with this chapter and may impose 16 35 a civil penalty against such person for any violation specified 17 1 in subsection 4 in an amount up to ten thousand dollars for 17 2 each violation. All civil penalties collected pursuant to this 17 3 section shall be deposited in the housing trust fund created 17 4 in section 16.181. An order issued pursuant to this section 17 5 may prohibit a person from applying for registration under this 17 6 chapter or certification or registration under chapter 543D. 17 7 4. The administrator may impose a civil penalty against a 17 8 person who is not registered under this chapter for any of the 17 9 following: 17 10 a. A violation of section 543E.4. 17 11 b. A violation of section 543D.18A, subsection 1. 17 12 c. Fraud, deceit, or deception, through act or omission, 17 13 in connection with an application for registration under this 17 14 chapter. 17 15 5. The administrator, before issuing an order under 17 16 this section, shall provide the person written notice and 17 17 the opportunity to request a hearing. The hearing must be 17 18 requested within thirty days after receipt of the notice 17 19 and shall be conducted in the same manner as provided for 17 20 disciplinary proceedings involving a registrant under this 17 21 chapter. 17 22 6. A person aggrieved by the imposition of a civil penalty 17 23 under this section may seek judicial review pursuant to section 17 24 17A.19. 17 25 7. If a person fails to pay a civil penalty within thirty 17 26 days after entry of an order imposing the civil penalty, or 17 27 if the order is stayed pending an appeal, within ten days 17 28 after the court enters a final judgment in favor of the 17 29 administrator, the administrator shall notify the attorney 17 30 general. The attorney general may commence an action to 17 31 recover the amount of the penalty, including reasonable 17 32 attorney fees and costs. 17 33 8. An action to enforce an order under this section may be 17 34 joined with an action for an injunction. 17 35 Sec. 19. NEW SECTION. 543E.19 Surety bond. 18 1 1. The administrator shall require that an appraisal 18 2 management company be covered by a surety bond in the amount of 18 3 twenty=five thousand dollars. 18 4 2. The surety bond shall be in a form as prescribed by 18 5 the administrator. The administrator may, pursuant to rule, 18 6 determine requirements for such surety bonds as are necessary 18 7 to accomplish the purposes of this chapter. The requirements 18 8 for a surety bond shall only relate to liabilities, damages, 18 9 losses, or claims arising out of the appraisal management 18 10 services performed by the appraisal management company 18 11 involving real estate located in this state. The bond shall 18 12 provide that a person having a claim against an appraisal 18 13 management company may bring suit directly on the bond or the 18 14 administrator may bring suit on behalf of such person. 18 15 Sec. 20. NEW SECTION. 543E.20 Additional administrator 18 16 authority. 18 17 1. The administrator is vested with broad administrative 18 18 authority to administer, interpret, and enforce this chapter 18 19 and to promulgate rules implementing this chapter. 18 20 2. In addition to the duties and powers conferred upon the 18 21 administrator in this chapter, the administrator shall have 18 22 the authority to adopt such rules as are reasonably necessary 18 23 to assure the administrator's registration and supervision 18 24 of appraisal management companies comply with the minimum 18 25 requirements of 12 U.S.C. {3352 and related federal laws and 18 26 regulations, with respect to any of the following: 18 27 a. Reviewing and approving or denying an appraisal 18 28 management company's application for initial or renewal 18 29 registration. 18 30 b. Examining the books and records of an appraisal 18 31 management company operating in the state and requiring the 18 32 appraisal management company to submit reports, information, 18 33 and documents. 18 34 c. Verifying that the appraisers on an appraisal management 18 35 company's appraiser panel who perform appraisal assignments in 19 1 this state hold valid certificates issued under chapter 543D. 19 2 d. Conducting investigations of appraisal management 19 3 companies to assess potential violations of applicable 19 4 appraisal=related laws, regulations, rules, or orders. 19 5 e. Disciplining, suspending, terminating, or denying renewal 19 6 of the registration of an appraisal management company that 19 7 violates applicable appraisal=related laws, regulations, rules, 19 8 or orders. 19 9 f. Notwithstanding section 272C.6, subsection 4, reporting 19 10 an appraisal management company's violation of applicable 19 11 appraisal=related laws, regulations, rules, or orders, as well 19 12 as disciplinary and enforcement investigations and actions 19 13 and other relevant information about an appraisal management 19 14 company's operations, to the appraisal subcommittee. 19 15 g. Imposing requirements on appraisal management companies 19 16 that are mandated by federal law and regulations applicable 19 17 to appraisal management companies that are not exempt under 19 18 federal law, including any of the following: 19 19 (1) Registration and supervision requirements. 19 20 (2) Ownership limitations. 19 21 (3) Engaging only certified appraisers for federally 19 22 related transactions in conformity with all applicable 19 23 federally related transaction regulations. 19 24 (4) Establishing systems for engaging appraisers who are 19 25 competent and independent, and who are suited for the appraisal 19 26 assignments to which they are assigned based on education, 19 27 expertise, and experience. 19 28 (5) Directing appraisers to perform appraisal assignments 19 29 in accordance with the uniform standards of professional 19 30 appraisal practice. 19 31 (6) Establishing and complying with processes and controls 19 32 reasonably designed to ensure appraisal management companies 19 33 conduct appraisal management services in accordance with the 19 34 requirements of section 129E(a)=(i) of the federal Truth 19 35 in Lending Act, 15 U.S.C. {1639e(1)=(i), and regulations 20 1 thereunder including but not limited to the requirement that 20 2 appraisers who complete an appraisal in connection with a 20 3 consumer credit transaction secured by the principal dwelling 20 4 of the consumer be compensated with a customary and reasonable 20 5 fee. 20 6 h. Assessing, collecting, and forwarding to the appraisal 20 7 subcommittee national registry fees from appraisal management 20 8 companies registered under this chapter and from federally 20 9 regulated appraisal management companies. 20 10 3. The administrator may conduct periodic examinations of 20 11 applicants or registrants under this chapter as reasonably 20 12 necessary to assure compliance with all or specific provisions 20 13 of this chapter. All papers, documents, examination reports, 20 14 and other records relating to such examinations shall be 20 15 confidential as provided in section 272C.6, subsection 4, 20 16 except as provided in this section. 20 17 4. The administrator may adopt rules governing an 20 18 appraiser's use of associate real estate appraisers while 20 19 performing appraisal assignments subject to this chapter. 20 20 Associate real estate appraisers may provide appraisal services 20 21 under the supervision of a certified appraiser as provided 20 22 in chapter 543D and associated rules, but shall not be on an 20 23 appraiser panel of an appraisal management company. 20 24 5. The administrator may require a national criminal 20 25 history check through the federal bureau of investigation or, 20 26 if authorized by federal law or regulation, the nationwide 20 27 mortgage licensing system and registry, as defined in section 20 28 535D.3, when conducting background investigations under 20 29 this chapter. Except as inconsistent with the registry, the 20 30 following shall apply: 20 31 a. The administrator may require owners and controlling 20 32 persons who are subject to the background investigation 20 33 provisions of sections 543E.6 and 543E.7 to provide a full 20 34 set of fingerprints, in a form and manner prescribed by the 20 35 administrator. Such fingerprints, if required, shall be 21 1 submitted to the federal bureau of investigation through the 21 2 state criminal history repository for purposes of the national 21 3 criminal history check. 21 4 b. The administrator may also request and obtain, 21 5 notwithstanding section 692.2, subsection 5, criminal history 21 6 data for owners and controlling persons who are subject to the 21 7 background investigation provisions of sections 543E.6 and 21 8 543E.7. A request for criminal history data shall be submitted 21 9 to the department of public safety, division of criminal 21 10 investigation, pursuant to section 692.2, subsection 1. 21 11 c. The administrator shall inform such owners and 21 12 controlling persons of the requirement of a national criminal 21 13 history check or request for criminal history data and obtain 21 14 a signed waiver from the applicant, certificate holder, or 21 15 registrant prior to requesting the check or data. 21 16 d. The administrator may, in addition to any other fees, 21 17 charge and collect such amounts as may be incurred by the 21 18 administrator, the department of public safety, or the 21 19 federal bureau of investigation in obtaining criminal history 21 20 information. Amounts collected shall be considered repayment 21 21 receipts as defined in section 8.2. 21 22 e. Criminal history data and other criminal history 21 23 information relating to affected owners or controlling 21 24 persons, or their appraisal management companies obtained 21 25 by the administrator pursuant to this section shall remain 21 26 confidential. Such information may, however, be used by 21 27 the administrator in a registration denial, enforcement, or 21 28 disciplinary proceeding. 21 29 Sec. 21. Section 272C.1, subsection 6, Code 2016, is amended 21 30 by adding the following new paragraph: 21 31 NEW PARAGRAPH. ag. The superintendent of the division 21 32 of banking of the department of commerce in registering and 21 33 supervising appraisal management companies pursuant to chapter 21 34 543E. 21 35 DIVISION II 22 1 IOWA REAL ESTATE APPRAISER EXAMINING BOARD == SUPERVISION 22 2 Sec. 22. Section 543D.2, Code 2016, is amended by adding the 22 3 following new subsection: 22 4 NEW SUBSECTION. 11. "Superintendent" means the 22 5 superintendent of the division of banking of the department of 22 6 commerce or the superintendent's designee. 22 7 Sec. 23. Section 543D.4, subsection 1, Code 2016, is amended 22 8 to read as follows: 22 9 1. A real estate appraiser examining board is established 22 10 withinthe professional licensing and regulation bureau ofthe 22 11 banking division of the department of commerce. The board 22 12 consists of seven members, two of whom shall be public members 22 13 and five of whom shall be certified real estate appraisers. 22 14 Sec. 24. Section 543D.5, subsection 1, Code 2016, is amended 22 15 to read as follows: 22 16 1. The board shall adopt rules establishing uniform 22 17 appraisal standards and appraiser certification requirements 22 18 and other rules necessary to administer and enforce this 22 19 chapter and its responsibilities under chapter 272C, subject to 22 20 the superintendent's supervision and authority under section 22 21 543D.23. The board shall consider and may incorporate any 22 22 standards required or recommended by the appraisal foundation 22 23 or by a federal agency with regulatory authority over appraisal 22 24 standards or the certification of appraisers for federally 22 25 related transactions. 22 26 Sec. 25. Section 543D.5, Code 2016, is amended by adding the 22 27 following new subsection: 22 28 NEW SUBSECTION. 5. Notwithstanding any provision to the 22 29 contrary, the provisions in section 546.10, subsections 6 22 30 through 12, shall apply to the board and to activities governed 22 31 under this chapter. 22 32 Sec. 26. Section 543D.6, subsection 2, Code 2016, is amended 22 33 to read as follows: 22 34 2.Fees collected by the board shall be transmitted 22 35 to the treasurer of state who shall deposit the fees in 23 1 the general fund of the state.All fees collected by the 23 2 board shall be deposited into the department of commerce 23 3 revolving fund created in section 546.12 and are appropriated 23 4 to the superintendent on behalf of the board to be used to 23 5 administer this chapter including but not limited to purposes 23 6 such as examinations, investigations, and administrative 23 7 staffing. Notwithstanding section 8.33, moneys retained by 23 8 the superintendent pursuant to this section are not subject 23 9 to reversion to the general fund of the state. However, the 23 10 national registry fees the board collects on behalf of the 23 11 appraisal subcommittee as defined in section 543E.3 shall be 23 12 transmitted to the appraisal subcommittee in accordance with 23 13 federal laws and regulations. 23 14 Sec. 27. Section 543D.22, subsection 1, Code 2016, is 23 15 amended to read as follows: 23 16 1. The board may require a national criminal history check 23 17 through the federal bureau of investigation for applicants 23 18 for certification or registration, or for persons certified 23 19 or registered, under this chapter if needed for credibility, 23 20 to comply with federal law or regulation, or the policies of 23 21 the appraisal qualification board of the appraisal foundation. 23 22 The board may alternatively require a national criminal 23 23 history check through the nationwide mortgage licensing system 23 24 and registry, as defined in section 535D.3, when conducting 23 25 background investigations under this section, if authorized by 23 26 applicable federal law or regulation. 23 27 Sec. 28. NEW SECTION. 543D.23 Superintendent supervision 23 28 and authority. 23 29 1. The superintendent shall supervise the board and manage 23 30 the board's budget and retained fees. The superintendent may 23 31 exercise all authority conferred upon the board under this 23 32 chapter and shall have access to all records and information 23 33 to which the board has access. In supervising the board, the 23 34 superintendent shall independently evaluate the substantive 23 35 merits of actions recommended or proposed by the board which 24 1 may be anticompetitive and shall have the authority to review, 24 2 approve, modify, or reject all board actions including but not 24 3 limited to those taken in connection with any of the following: 24 4 a. Initial or reciprocal certification of real estate 24 5 appraisers, registration of associate real estate appraisers, 24 6 and temporary practice permits. 24 7 b. Disciplinary investigations and proceedings. 24 8 c. Investigations and proceedings under section 543D.21. 24 9 d. Rulemaking, including orders on petitions for rulemaking. 24 10 e. Orders on petitions for declaratory orders or waivers or 24 11 variances. 24 12 2. A person aggrieved by any final action of the board taken 24 13 under this chapter shall not have exhausted administrative 24 14 remedies until the person has appealed the action to the 24 15 superintendent and the superintendent has issued a final 24 16 decision or order. 24 17 3. The superintendent shall adopt rules to implement this 24 18 section. 24 19 Sec. 29. Section 546.3, subsection 1, Code 2016, is amended 24 20 to read as follows: 24 21 1. The banking division shall regulate and supervise banks 24 22 under chapter 524, debt management licensees under chapter 24 23 533A, money services under chapter 533C, delayed deposit 24 24 services under chapter 533D, mortgage bankers and brokers 24 25 under chapter 535B, regulated loan companies under chapter 24 26 536,andindustrial loan companies under chapter 536A, real 24 27 estate appraisers under chapter 543D, and appraisal management 24 28 companies under chapter 543E, and shall perform other duties 24 29 assigned to the division by law. The division is headed by the 24 30 superintendent of banking who is appointed pursuant to section 24 31 524.201. The state banking council shall render advice within 24 32 the division when requested by the superintendent. 24 33 Sec. 30. Section 546.10, subsection 1, paragraph f, Code 24 34 2016, is amended by striking the paragraph. 24 35 Sec. 31. Section 546.10, subsection 5, Code 2016, is amended 25 1 to read as follows: 25 2 5. Fees collected under chapters 542, 542B, 543B,543D,25 3 544A, 544B, and 544C shall be paid to the treasurer of state 25 4 and credited to the general fund of the state. All expenses 25 5 required in the discharge of the duties and responsibilities 25 6 imposed upon the professional licensing and regulation bureau 25 7 of the banking division of the department of commerce, the 25 8 administrator, and the licensing boards by the laws of this 25 9 state shall be paid from moneys appropriated by the general 25 10 assembly for those purposes. All fees deposited into the 25 11 general fund of the state, as provided in this subsection, 25 12 shall be subject to the requirements of section 8.60. 25 13 Sec. 32. EFFECTIVE DATE. This Act takes effect on January 25 14 1, 2017. 25 15 EXPLANATION 25 16 The inclusion of this explanation does not constitute agreement with 25 17 the explanation's substance by the members of the general assembly. 25 18 This bill requires the superintendent of the banking 25 19 division of the department of commerce to regulate appraisal 25 20 management companies and modifies provisions applicable to the 25 21 Iowa real estate appraiser examining board. 25 22 The bill provides definitions relating to the regulation of 25 23 appraisal management companies (AMCs). 25 24 The bill prohibits a person from conducting business or 25 25 advertising itself as an AMC without first registering with the 25 26 administrator, defined as the superintendent of banking. 25 27 The bill requires an AMC to designate a controlling person 25 28 to be the main contact between the administrator and the AMC 25 29 and to be responsible for compliance with the bill. The 25 30 controlling person and any person who owns more than 10 percent 25 31 of an AMC must be found to be of good moral character and submit 25 32 to a background investigation. 25 33 The bill requires that the AMC application for registration 25 34 and registration renewal contain its contact information, 25 35 agent for service of process, owners, controlling person, 26 1 appraiser panel, appraisers, and appraisal management 26 2 services, information to assure compliance with the uniform 26 3 standards of professional appraisal practice (USPAP), and 26 4 any other additional information needed as determined by 26 5 the administrator. The administrator may require periodic 26 6 disclosures of changes impacting registration. 26 7 The bill requires the administrator to establish fees 26 8 by rule. All fees shall be deposited into the department 26 9 of commerce revolving fund and are appropriated to the 26 10 administrator. Appropriated moneys are not subject to 26 11 reversion to the state general fund. 26 12 The bill requires an AMC to ensure that its appraisers 26 13 comply with USPAP and implement a review system to monitor such 26 14 compliance. An AMC that has a reasonable basis to believe 26 15 that an appraiser or another AMC has failed to comply with 26 16 applicable law shall refer the matter to the administrator. An 26 17 appraiser in the appraiser panel of an AMC who has a reasonable 26 18 basis to believe the AMC is in violation of the bill shall 26 19 refer the matter to the administrator. 26 20 The bill requires an AMC to keep a detailed record of all 26 21 its appraiser services and the identity of the appraiser who 26 22 performed the service for at least five years. An AMC must pay 26 23 an appraiser for the completion of an appraiser service within 26 24 45 days of completion and keep detailed records of payment for 26 25 at least five years. 26 26 The bill requires an AMC to take all reasonable steps to 26 27 assure that appraisals are conducted independently and without 26 28 inappropriate influence or coercion pursuant to federal and 26 29 state law. An AMC must compensate appraisers at a reasonable 26 30 and customary rate. 26 31 The bill prohibits an AMC, or an employee or other agent 26 32 of an AMC, from doing any of the following: requiring an 26 33 appraiser to indemnify an AMC for liability for the services 26 34 performed by the AMC; modifying a completed appraisal 26 35 report without the appraiser's written consent; requiring an 27 1 appraiser to provide the appraiser's identification or security 27 2 information to an AMC other than to affix on a completed 27 3 appraisal report; removing an appraiser from an appraiser 27 4 panel without written notice; requiring an appraiser to modify 27 5 an appraiser report other than what is permitted under Code 27 6 chapter 543D; requiring an appraiser to perform an appraisal 27 7 if the appraiser notified the AMC that the appraiser does not 27 8 have the necessary competence or the timeframe is insufficient; 27 9 requiring an appraiser to violate USPAP or Code chapter 543D 27 10 or its implementing rules; prohibiting an appraiser from 27 11 disclosing the appraiser's fee; prohibiting communications 27 12 relevant to an appraisal; conditioning payment to an appraiser 27 13 on a loan closing, a specific dollar amount, an outcome that 27 14 would violate Code section 543D.18(2), or 543D.18A(1); or 27 15 engaging in any acts or practices that violate Code section 27 16 543E.14. 27 17 The bill authorizes the administrator to discipline an AMC 27 18 for fraud or deceit in obtaining registration, dishonesty, or 27 19 gross negligence in providing appraisal management services; 27 20 violating the bill; being convicted of a felony related to 27 21 fraud or appraisal management services; being disciplined 27 22 to practice as an AMC in any jurisdiction for a substantive 27 23 reason; or violating Code section 272C.10. The board may, 27 24 after notice and hearing, revoke, suspend, or refuse to issue, 27 25 renew, or reinstate a registration; reprimand, censure, or 27 26 limit the scope of practice of a registrant; impose a civil 27 27 penalty of no more than $10,000 per violation; require remedial 27 28 action; or place an AMC on probation. 27 29 The bill allows the administrator to seek an injunction 27 30 from the district court upon belief that a person has or is 27 31 about to engage in a violation of the bill. The administrator 27 32 is authorized to investigate or initiate complaints against 27 33 nonregistered persons. The administrator is also authorized 27 34 to issue an order to a person not registered and may impose a 27 35 civil penalty not to exceed $10,000 for each violation of Code 28 1 section 543E.4 or 543D.18A(1), or fraud or deceit in applying 28 2 for registration. All civil penalties shall be deposited in 28 3 the housing trust fund created in Code section 16.181. 28 4 The bill requires an AMC to be covered by a surety bond in 28 5 the amount of $25,000 to cover liabilities, damages, losses, or 28 6 claims arising out of the AMC's appraisal management services 28 7 in this state. 28 8 The bill provides the administrator with broad authority 28 9 to implement the bill and adopt necessary rules. The 28 10 administrator may also conduct periodic examinations of 28 11 registrants, adopt rules governing an appraiser's use of 28 12 associate real estate appraisers, and require criminal history 28 13 and background investigations. 28 14 The bill provides the superintendent of banking with 28 15 supervisory authority over the real estate appraiser board 28 16 established in Code chapter 543D to regulate real estate 28 17 appraisers. The superintendent shall independently evaluate 28 18 the actions of the board and have the authority to review, 28 19 approve, modify, or reject a board action. The superintendent 28 20 shall also manage the board's budget and retained fees. 28 21 The bill makes several changes to current law to provide 28 22 the superintendent with regulatory authority over AMCs and 28 23 supervisory authority over the real estate appraiser board. 28 24 The bill adds the superintendent to the list of defined 28 25 licensing boards in Code section 272C.1. The bill subjects 28 26 the real estate appraiser board's rulemaking authority 28 27 to the supervision of the superintendent in Code section 28 28 543D.5. The bill applies Code sections 546.10, subsections 28 29 6 through 12, to the appraiser board in Code section 543D.5, 28 30 to provide the professional licensing and regulation bureau 28 31 with regulatory powers over the appraiser board. The bill 28 32 requires the appraiser board's collected fees to be deposited 28 33 in the department of commerce revolving fund created in Code 28 34 section 546.12 and are appropriated to the superintendent 28 35 on behalf of the board in Code section 543D.6. The bill 29 1 expands the appraiser board's authority to require background 29 2 investigations in Code section 543D.22, subsection 1. The 29 3 bill adds real estate appraisers under Code chapter 543D and 29 4 AMCs under Code chapter 543E to the list of professions or 29 5 entities regulated by the banking division in Code section 29 6 546.3, subsection 1. The bill also makes other conforming Code 29 7 changes. 29 8 The bill takes effect January 1, 2017. LSB 5368HV (1) 86 gh/rn
