Reference is to the bill as introduced.
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION 1. Section 40-60-10(B)(4) of the 1976 Code is amended to read:
"(4) Four members must be licensed or certified appraisers, actively engaged in real estate appraisal for at least three years, at least two of whom must be certified general appraisers and at least one of whom must be a certified residential appraiser. In appointing real estate appraisers to the board, the Governor, while not automatically excluding other appraisers, shall give preference to real estate appraisers whose primary source of income is derived from appraising real estate and not real estate brokerage."
SECTION 2. Section 40-60-20 of the 1976 Code, as last amended by Act 180 of 2014, is further amended to read:
"Section 40-60-20.
As used in this chapter unless the context requires
otherwise:
(1) 'Analysis' means a
study of real estate or real property other than one estimating
value.
(2) 'Appraisal', as a
noun, means the act or process of developing an opinion of
value; as an adjective, 'appraisal' means of or pertaining to
appraising and related functions including, but not limited to,
appraisal practice and appraisal services.
(3) 'Appraisal
assignment' or 'valuation assignment' means an engagement for
which an appraiser is employed or retained to act, or would be
perceived by third parties or the public as acting, as a
disinterested third party in rendering an unbiased analysis,
opinion, or conclusion that estimates the value of real
estate.
(4) 'Appraisal
Foundation' means the Appraisal Foundation established on
November 30, 1987, as a not-for-profit corporation under the
laws of Illinois, containing the Appraisal Standards Board
(ASB), Appraiser Qualifications Board (AQB), a board of
trustees, and other advisory bodies.
(5) 'Appraisal report'
means any communication, written or oral, of an appraisal. The
testimony of an individual dealing with the analyses,
conclusions, or opinions concerning identified real estate or
real property is may be considered to be
an oral appraisal report.
(6) 'Appraisal
subcommittee' means the designees of the heads of the federal
financial institutions regulatory agencies established by the
Federal Financial Institutions Examination Council Act of 1978
(12 U.S.C. Section 3301, et seq.), as amended, as well as the
Secretary of the Department of Housing and Urban Development, or
his designee, under the Department of Housing and Urban
Development Reform Act of 1989 (12 U.S.C. Section 1708(e)).
(7) 'Appraiser' means a
person who holds a permit, license, or certification issued by
the board that allows the person to appraise real property.
(8) 'Apprentice
appraiser' means an individual authorized by permit to assist a
state certified appraiser in the performance of an appraisal if
the apprentice is actively and personally supervised by the
certified appraiser.
(9) 'Board' means the
South Carolina Real Estate Appraisers Board established pursuant
to the provisions of this chapter.
(10) 'Complex
residential property appraisal' means one in which the property
to be appraised, the form of ownership, or market conditions are
atypical.
(11)
'Evaluation' means an analysis, opinion, or
conclusion that relates to the nature, quality, or utility of
identified real estate and does not estimate value.
(12)
'Federally related transaction' means any real
estate-related financial transaction which a federal financial
institution regulatory agency engages in, contracts for, or
regulates.
(1312)
'Market analysis' means a study of real estate
market conditions for a specific type of property.
(1413)
'Mass appraisal' means the process of valuing a
universe of properties as of a given date using standard
methodology, employing common data, and allowing for statistical
testing.
(1514)
'Mass appraiser' means any appraiser who is
employed in the office of a tax assessor to appraise real
property for ad valorem tax purposes and who is licensed or
certified as a mass appraiser.
(1615)
'Noncomplex residential property appraisal' means
one in which the property to be appraised, the form of
ownership, and market conditions are those which are typically
found in the subject market.
(1716)
'Person' means an individual, corporation,
partnership, or association, foreign and domestic.
(1817)
'Real estate' means an identified parcel or tract
of land including improvements, if any.
(1918)
'Real estate appraisal activity' means the act or
process of valuing real estate or real property
performing an appraisal and preparing an oral or
written appraisal report.
(2019)
'Real property' means the interests, benefits, and
rights inherent in the ownership of real estate.
(2120)
'Residential appraisal' is an appraisal of a vacant
or improved parcel of land that is devoted to or available for
use as a one to four family abode including, but not limited to,
a single family home, apartment, or rooming house.
(22)
'Specialized services' means services other than
independent appraisal assignments which are performed by an
appraiser. Specialized services may include marketing studies,
financing studies, and feasibility studies, valuations,
analyses, opinions, and conclusions given in connection with
activities including, but not limited to, real estate brokerage,
mortgage banking, real estate counseling, and real estate tax
counseling. (
2321)
'Standards of professional appraisal
practice' or 'USPAP' means the National Uniform Standards of
Professional Appraisal Practice as adopted by the Appraisal
Standards Board of the Appraisal Foundation and adopted by the
board.
(2422)
'State-certified general appraiser' means an
appraiser authorized to engage in the appraisal of all types of
real property.
(2523)
'State-certified general mass appraiser' means an
appraiser authorized to engage in all types of real estate mass
appraisal activity for ad valorem purposes.
(2624)
'State-certified residential appraiser' means an
appraiser authorized to engage in the appraisal of one to four
residential units without regard to transaction value or
complexity and nonresidential appraisals with a transaction
value less than two hundred fifty thousand dollars.
(2725)
'State-certified residential mass appraiser' means
an appraiser authorized to engage in the mass appraisal of one
to four residential units without regard to value or complexity
and nonresidential appraisals with a transaction value less than
two hundred fifty thousand dollars.
(2826)
'State-licensed appraiser' means an appraiser
authorized to engage in the appraisal of noncomplex one to four
residential units having a transaction value less than one
million dollars and complex one to four residential units and
nonresidential appraisals having a transaction value less than
two hundred fifty thousand dollars.
(2927)
'State-licensed mass appraiser' means an appraiser
authorized to engage in the mass appraisal of noncomplex one to
four residential units having a transaction value less than one
million dollars and complex one to four residential units and
nonresidential appraisals having a transaction value less than
two hundred fifty thousand dollars.
(3028)
'Timberland' means forestland that is producing or
is capable of producing timber as a crop.
(3129)
'Valuation' means an estimate of the value of real
estate or real property."
SECTION 3. Section 40-60-30 of the 1976 Code is amended to read:
"Section 40-60-30.
It is unlawful for an individual to assume or use a title,
designation, or abbreviation likely to create the impression
that the person is a real estate appraiser or to engage in
real estate appraisal activity or advertise as an
appraiser without a valid license issued by the department.
However, nothing in this chapter may be construed to apply
to:
(1) A real estate
licensee licensed in accordance with Chapter 57
of, Title 40 who performs a market
analysis or gives an opinion as to the price of real estate on
the condition that the market analysis or opinion is not
referred to as an appraisal. Before performing a market
analysis, the real estate licensee must disclose to the
requesting party: 'This market analysis may not be used for the
purposes of obtaining financing in a federally-related
transaction';.
(2) A forester
registered pursuant to Chapter 27 of,
Title 48 who appraises or evaluates
values standing or growing timber or timberland located
in this State and issues an appraisal or
evaluation valuation on the timber or
timberland; however, as permitted by Chapter
27, Title 48 and Regulation 53-13. When an appraisal or
evaluation valuation is to be used in a
federally-related federally related
transaction, the registered forester must be licensed or
certified under this chapter if required by federal law or
regulation.
(3) An
employee of a lender in the performance of appraisals or
valuations with respect to which federal law or regulations does
not require a licensed or certified appraiser. This exception
does not apply to third party contractors."
SECTION 4. Section 40-60-34 of the 1976 Code, as last amended by Act 180 of 2014, is further amended to read:
"Section 40-60-34.
(A) The board shall prescribe the form
of a permit, license, and certificate containing an
identification number that the appraiser shall use when signing
appraisal reports. When an appraiser advertises or executes
contracts or other instruments, the appraiser's name, appraiser
classification, and number assigned by the board must be printed
or typed adjacent to the appraiser's signature.
(B) The apprentice
appraiser performing fee appraisal work or seeking to establish
experience for a state-licensed or state-certified designation
shall:
(1)
perform appraisal assignments only under the direct
supervision of a state-certified appraiser;
(2)
maintain, jointly with the supervising appraiser, a log
containing the following for each assignment:
(a)
type of property;
(b)
date of report;
(c)
address of appraised property;
(d)
description of work performed by the trainee and scope of
review and supervision of the supervising appraiser;
(e)
number of actual work hours by the trainee on the
assignment; and
(f)
signature and state certification number of the
supervising appraiser with a separate appraisal log maintained
for each supervising appraiser, if applicable;
(3)
sign or be given credit in all appraisal reports for which
the apprentice acts as an appraiser;
(4)
maintain or have access to complete copies of all
appraisals.
(C) The apprentice
appraiser performing mass appraisal work seeking to establish
credit for a licensed or certified mass appraiser designation
shall:
(1)
perform appraisal assignments only under the direct
supervision of a state-certified residential or state-certified
general real estate appraiser, mass or otherwise;
(2)
maintain a log on a form provided by the board.
(D) The appraiser
supervising an apprentice fee appraiser shall:
(1)
personally review appraisal reports prepared by the
apprentice and sign and certify the report as being
independently and impartially prepared in compliance with the
National USPAP and applicable statutory requirements;
(2)
provide a copy or access to final appraisal documents to
any participating apprentice;
(3)
directly supervise no more than three apprentice
appraisers at any one given time;
(4)
be certified for a minimum of three years and not subject
to any disciplinary action within the immediately preceding
three years; and
(5)
attend a trainee/supervisor orientation conducted in
compliance with AQB requirements.
(E) The appraiser
supervising an apprentice appraiser performing mass appraisal
work shall personally review and approve all work performed by
the apprentice to ensure that the work is prepared in compliance
with the National USPAP and applicable statutory
requirements.
(F) The board may issue
to an appraiser who is licensed or certified in another state a
temporary permit, which is only effective for one specific
appraisal assignment. If the appraisal is not completed within
six months from the date of the permit, the board may grant an
extension upon request from the appraiser. The appraiser shall
place the following notation on all statements of qualification,
contracts, or other instruments: "Practicing in the State
of South Carolina under Temporary Permit No.".
(G) Licenses,
certifications, and apprentice permits expire biennially on June
thirtieth. As a condition of renewal, an appraiser shall provide
evidence satisfactory to the board of having met the continuing
education requirements established by this chapter. An
apprentice appraiser may maintain the permit for five years
provided continuing education requirements are satisfied.
(H) Permits, licenses,
or certifications not renewed by date of expiration are no
longer valid but may be reinstated within twelve months after
expiration upon proper application, payment of renewal fee, a
late penalty, as established in the fee schedule, and proof of
having met continuing education requirements as prescribed.
(I) A permit, license,
or certification that has expired and has not been reinstated by
the last day of the twelfth month following expiration must be
canceled. All qualifications and conditions that apply
to individuals applying for a permit, license, or certification
who have not been previously licensed must be met.
Such a cancelled permit, license, or certification may be
considered for reinstatement as provided by the board in
regulation.
(J) A license or
certification may be placed on inactive status by informing the
board in writing and must be renewed in the same manner as
provided for active renewal.
(K) A fee appraiser
must retain for five years the original or exact copy of each
appraisal report prepared or signed by the appraiser and all
supporting data assembled and formulated by the appraiser in
preparing each appraisal report. The five-year period for
retention of records is applicable to each engagement of the
services of the appraiser and commences on the date of delivery
of each appraisal report to the client. The appraiser must
retain the work file for a period of at least two years after
final disposition of appeals of all judicial proceedings in
which the appraiser provided testimony related to the
assignment, whichever period expires last.
(L) An appraiser who
has had a permit, license, or certification revoked by the board
must may not be issued a new permit,
license, or certification within two years after the date of the
revocation or at any time thereafter except upon an affirmative
vote of a majority of the board. A person seeking a
permit, license, or certification after revocation shall meet
all qualifications and conditions that apply to individuals
applying for a permit, license, or certification who have not
been previously permitted, licensed, or
certified."
SECTION 5. Section 40-60-36(C) of the 1976 Code, as last amended by Act 180 of 2014, is further amended to read:
"(C) The board may deny, publicly or privately, reprimand, fine, suspend, or revoke the approval of an education provider or instructor if the board finds that the education provider or instructor has violated or failed to satisfy the provisions of this chapter or the regulations and standards promulgated pursuant to this chapter."
SECTION 6. Section 40-60-50(D) of the 1976 Code is amended to read:
"(D) Application
and license fees are payable to the department in advance and
must accompany an examination application or a license
application. Initial fees for exam, permit, license, or
certificate must be paid by certified funds. Fees are
nonrefundable."
SECTION 7. Section 40-60-80 of the 1976 Code, as last amended by Act 180 of 2014, is further amended to read:
"Section 40-60-80.
(A) The department shall investigate
complaints and violations of this chapter as provided in this
chapter and Section 40-1-80.
(B) If a complaint
filed with the board involves an appraisal report that varies
from a sales, lease, or exchange price, the board may decline to
conduct an investigation.
(C) The board is
prohibited from conducting an investigation based solely on a
dispute over the value of property for ad valorem tax
purposes.
(D) No stay or
supersedeas may be granted for more than six months pending
appeal from a decision by the board to revoke, suspend, or
otherwise restrict a permit, license, or certification.
(E)
A person aggrieved by a final action of the board may seek
review of the decision in accordance with Section 40-1-160
and the South Carolina Administrative Procedures
Act."
SECTION 8. Section 40-60-120(B) of the 1976 Code is amended to read:
"(B) A decision by
the board to publicly or privately reprimand, fine,
revoke, suspend, or otherwise restrict a license or to limit or
otherwise discipline a licensee becomes effective upon delivery
of a copy of the decision to the licensee and a petition
for review does not operate as a supersedeas or
stay."
SECTION 9. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.