S*66 Session 110 (1993-1994)
S*0066(Rat #0204, Act #0143) General Bill, By H.S. Stilwell
A Bill to amend Sections 40-60-20, 40-60-30, 40-60-40, 40-60-50 through
40-60-80, 40-60-100, 40-60-120 through 40-60-140, all as amended, Code of Laws
of South Carolina, 1976, relating to real estate appraisers, so as to provide
certain definitions; establish parameters for practice by state licensed real
estate appraisers, state certified residential real estate appraisers, and
appraiser apprentices; provide for composition of the South Carolina Real
Estate Appraisers Board; provide for application, licensure, permitting, and
continuing education fees for appraiser apprentices, state registered real
estate appraisers, state licensed real estate appraisers, and state certified
real estate appraisers; to provide for qualifications, criteria for
individuals to become licensed, permitted, registered, or certified to
practice in the area of real estate appraisal; to provide for regulatory and
investigatory authority of the State Real Estate Appraisers Board; to amend
Chapter 60, Title 40 of the 1976 Code, relating to real estate appraisers, by
adding Section 40-60-145, so as to require that the Real Estate Appraisers
Board adopt the uniform standards of professional appraisal practice as its
operating guide; and to amend Sections 40-60-150 through 40-60-170 and
40-60-190 through 40-60-210, all as amended, relating to real estate
appraisers, so as to establish complaint investigation procedures for the
Board; and to provide for regulation of the use of the titles of appraiser
apprentice, state registered real estate appraiser, state licensed real estate
appraisers, and state certified real estate appraiser.-amended title
01/12/93 Senate Introduced and read first time SJ-43
01/12/93 Senate Referred to Committee on Labor, Commerce and
Industry SJ-43
02/25/93 Senate Committee report: Favorable Labor, Commerce and
Industry SJ-12
03/02/93 Senate Read second time SJ-9
03/03/93 Senate Read third time and sent to House SJ-15
03/04/93 House Introduced and read first time HJ-21
03/04/93 House Referred to Committee on Labor, Commerce and
Industry HJ-21
05/26/93 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-9
06/01/93 House Amended HJ-24
06/01/93 House Read second time HJ-53
06/02/93 House Read third time and returned to Senate with
amendments HJ-12
06/03/93 Senate Concurred in House amendment and enrolled SJ-27
06/10/93 Ratified R 204
06/14/93 Signed By Governor
06/14/93 Effective date 06/14/93
08/10/93 Copies available
(A143, R204, S66)
AN ACT TO AMEND SECTIONS 40-60-20, 40-60-30, 40-60-40,
40-60-50 THROUGH 40-60-80, 40-60-100, 40-60-120 THROUGH
40-60-140, ALL AS AMENDED, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO REAL ESTATE APPRAISERS, SO
AS TO PROVIDE CERTAIN DEFINITIONS; ESTABLISH
PARAMETERS FOR PRACTICE BY STATE LICENSED REAL
ESTATE APPRAISERS, STATE CERTIFIED RESIDENTIAL REAL
ESTATE APPRAISERS, AND APPRAISER APPRENTICES; PROVIDE
FOR COMPOSITION OF THE SOUTH CAROLINA REAL ESTATE
APPRAISERS BOARD; PROVIDE FOR APPLICATION, LICENSURE,
PERMITTING, AND CONTINUING EDUCATION FEES FOR
APPRAISER APPRENTICES, STATE REGISTERED REAL ESTATE
APPRAISERS, STATE LICENSED REAL ESTATE APPRAISERS, AND
STATE CERTIFIED REAL ESTATE APPRAISERS; TO PROVIDE FOR
QUALIFICATIONS, CRITERIA FOR INDIVIDUALS TO BECOME
LICENSED, PERMITTED, REGISTERED, OR CERTIFIED TO
PRACTICE IN THE AREA OF REAL ESTATE APPRAISAL; TO
PROVIDE FOR REGULATORY AND INVESTIGATORY AUTHORITY
OF THE STATE REAL ESTATE APPRAISERS BOARD; TO AMEND
CHAPTER 60, TITLE 40 OF THE 1976 CODE, RELATING TO REAL
ESTATE APPRAISERS, BY ADDING SECTION 40-60-145 SO AS TO
REQUIRE THAT THE REAL ESTATE APPRAISERS BOARD ADOPT
THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL
PRACTICE AS ITS OPERATING GUIDE; AND TO AMEND
SECTIONS 40-60-150 THROUGH 40-60-170 AND 40-60-190
THROUGH 40-60-210, ALL AS AMENDED, RELATING TO REAL
ESTATE APPRAISERS, SO AS TO ESTABLISH COMPLAINT
INVESTIGATION PROCEDURES FOR THE BOARD; AND TO
PROVIDE FOR REGULATION OF THE USE OF THE TITLES OF
APPRAISER APPRENTICE, STATE REGISTERED REAL ESTATE
APPRAISER, STATE LICENSED REAL ESTATE APPRAISERS, AND
STATE CERTIFIED REAL ESTATE APPRAISER.
Be it enacted by the General Assembly of the State of South Carolina:
Definitions revised and added; activities permitted
SECTION 1. Sections 40-60-20 and 40-60-30 of the 1976 Code are
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' or `real estate appraisal' means an analysis, opinion, or
conclusion as to the value of identified real estate or specified interests in
real estate, including a feasibility study, marketability study, or other study
or analysis that involves the rendering of an analysis, opinion, or
conclusion of value performed for a fee or other consideration, including
valuation or evaluation performed for a person who advises, consults, or
prepares.
(3) `Appraisal Foundation' means the Appraisal Foundation established
on November 30, 1987, as a not-for-profit corporation under the laws of
Illinois.
(4) `Appraisal report' means any communication, written or oral, of an
appraisal. The testimony of an appraiser dealing with the appraiser's
analyses, conclusions, or opinions concerning identified real property is
deemed to be an oral appraisal report.
(5) `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.
(6) `Appraiser' means a person who is a state registered real estate
appraiser, a state licensed real estate appraiser, a state certified real estate
appraiser, or an appraiser apprentice.
(7) `Appraiser Apprentice' means a person who holds a valid permit as
an appraiser apprentice issued under the provisions of this chapter.
(8) `Board' means the South Carolina Real Estate Appraisers Board
established pursuant to the provisions of this chapter.
(9) `Commission' means the South Carolina Real Estate
Commission.
(10) `Commissioner' means the South Carolina Real Estate
Commissioner.
(11) `Evaluation assignment' means an engagement for which an
appraiser is employed or retained to give an analysis, opinion, or
conclusion that relates to the nature, quality, or utility of identified real
estate or identified real property.
(12) `Federally-related transaction' means any real estate related
financial transaction which:
(a) a federal financial institution regulatory agency or the Resolution
Trust Corporation engages in, contracts for, or regulates; and
(b) requires the services of an appraiser.
(13) `Independent appraisal 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 relating to the
nature, quality, value, or utility of identified real estate or identified real
property.
(14) `Person' means individuals, corporations, partnerships, or
associations, foreign and domestic.
(15) `Real estate' means an identified parcel of land, including
improvements, if any.
(16) `Real estate appraisal activity' means the act or process of
valuation of real estate or real property and preparing an appraisal
report.
(17) `Real property' means one or more defined interests, benefits, and
rights inherent in the ownership of real estate.
(18) `Specialized services' means services other than independent
appraisal assignments which are performed by an appraiser. Specialized
services may include marketing, financing, and feasibility studies,
valuations, analyses, opinions, and conclusions given in connection with
activities such as real estate brokerage, mortgage banking, real estate
counseling, and real estate tax counseling.
(19) `Standards of professional appraisal practice' means the uniform
standards of professional appraisal practice as adopted by the Appraisal
Standards Board of the Appraisal Foundation and adopted by the board.
(20) `State' includes any state, district, territory, possession, or province
of the United States or Canada.
(21) `State certified real estate appraiser' means a person who holds a
valid certificate as either a state certified residential real estate appraiser or
a state certified general real estate appraiser issued under the provisions of
this chapter.
(22) `State certified general real estate appraiser' means a person who
holds a valid certificate as a state certified general real estate appraiser
issued under the provisions of this chapter.
(23) `State certified residential real estate appraiser' means a person
who holds a valid certificate as a state certified residential real estate
appraiser issued under the provisions of this chapter.
(24) `State licensed real estate appraiser' means a person who holds a
valid license as a state licensed real estate appraiser issued under the
provisions of this chapter.
(25) `State registered real estate appraiser' means a person who holds a
valid registration as a state registered real estate appraiser issued under the
provisions of this chapter.
(26) `Valuation' means an estimate of the value of real estate or real
property.
(27) `Valuation assignment' means an engagement for which an
appraiser is employed or retained to give an analysis, opinion, or
conclusion that estimates the value of an identified parcel of real estate or
identified real property at a particular point in time.
(28) `Timberland' means forest land that is producing, or is capable of
producing, timber as a crop.
(29) `Market analysis' means a study of real estate market conditions
for a specific type of property.
Section 40-60-30. (A) Except as provided in Section 40-60-40, it is
unlawful for a person to engage in real estate appraisal activity in this State
without first obtaining a permit, registration, license, or certification as
provided in this chapter.
(B) Real estate appraisers are authorized to engage in the following
types of real estate appraisal activity:
(1) A state registered real estate appraiser is authorized to engage in
any type of real estate appraisal activity which does not involve a
federally-related transaction.
(2) A state licensed real estate appraiser is authorized to engage in any
type of real estate appraisal activity which is not required pursuant to
federal law to be performed by a state certified real estate appraiser.
(3) A state certified residential real estate appraiser is authorized to
engage in any type of real estate appraisal activity which is not prohibited
by federal law or the guidelines established by the appraisal
subcommittee.
(4) A state certified general real estate appraiser is authorized to
engage in any type of real estate appraisal activity.
(5) (a) An appraiser apprentice may assist a state licensed real estate
appraiser, state certified residential real estate appraiser, or state certified
general real estate appraiser in the performance of an appraisal provided
that he is actively and personally supervised by the licensed or certified
appraiser and provided, further, that any appraisal report rendered in
connection with the appraisal is reviewed by the supervising appraiser and
includes the signature of the supervising appraiser.
(b) An appraiser apprentice is authorized only to assist a state
licensed real estate appraiser, state certified residential real estate appraiser,
or state certified general real estate appraiser in the performance of an
appraisal assignment that is within the scope of permitted real estate
appraisal assignments for each of the three classifications.
(c) A state registered real estate appraiser or state transitionally
licensed real estate appraiser may not act as the supervising appraiser of an
appraiser apprentice."
Exceptions revised
SECTION 2. Section 40-60-40 of the 1976 Code is amended to read:
"Section 40-60-40. The provisions of this chapter do not apply
to:
(1) a real estate licensee licensed in accordance with Chapter 57 of
this title 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. Prior to performing any market analysis, the
real estate licensee must disclose to the requesting party that the market
analysis may not be used for purposes of obtaining financing in a
federally-related transaction and the written market analysis must contain
clearly on the face thereof the following legend: `This market analysis may
not be used for the purposes of obtaining financing in a federally-related
transaction.'
(2) a registered forester registered pursuant to the provisions of
Chapter 27 of Title 48 who appraises or evaluates standing or growing
timber or timberland located in this State and issues an appraisal or
evaluation on such timber or timberland; provided, however, that when
such appraisal or evaluation is to be used in a federally-related transaction,
such registered forester must be licensed or certified under the provisions of
this chapter if required by federal law or the guidelines established by the
appraisal subcommittee."
Board membership; procedures, licensing requirements, and fees
revised
SECTION 3. Sections 40-60-50 through 40-60-80 of the 1976 Code are
amended to read:
"Section 40-60-50. (A) There is created the South Carolina Real
Estate Appraisers Board which consists of seven members. All members
must be residents of this State. One member must be a public member who
may not be connected in any way with the practice of real estate appraisal,
real estate brokerage, or mortgage lending. One member must be a licensed
real estate broker who is not a real estate appraiser. One member must be
actively engaged in mortgage lending, representing supervised financial
institutions, who is not a real estate licensee or a real estate appraiser and
who also must not be connected in any way with the brokerage of real
estate, the appraisal of real estate, or the review of real estate appraisals.
Four members must be real estate appraisers who have been actively
engaged in real estate appraisal for at least three years. In appointing real
estate appraisers to the board, while not automatically excluding other
appraisers, the Governor shall give preference to real estate appraisers
whose primary source of income is derived from appraising real estate and
not real estate brokerage.
(B) The Governor shall appoint the members of the board, upon the
advice and consent of the Senate, with consideration given to appropriate
geographic representation and to areas of appraisal expertise. The
appointments made when the Senate is not in session are effective until the
Senate confirms or denies that appointment.
(C) Each real estate appraiser member of the board appointed after July
1, 1992, must be a state certified real estate appraiser or a state licensed real
estate appraiser. At least two of the appraiser members appointed after July
1, 1993, must be state certified general real estate appraisers.
(D) The term of each member of the board is three years and until their
successors are appointed and qualified. In the event of a vacancy, the
Governor shall appoint a person to fill the vacancy, and the person so
appointed shall serve for the remainder of the unexpired term.
(E) Upon expiration of their terms, members of the board shall continue
to hold office until the appointment and qualification of their successors.
No person may serve as a member of the board for more than two
consecutive terms. The Governor, after giving notice and opportunity for a
hearing, may remove from office a member of the board for: (1) inability to perform or neglecting to perform the duties required of
members;
(2) incompetence; or
(3) dishonest conduct.
(F) The members of the board shall annually elect a chairman from
among the members to preside at board meetings.
(G) The board shall meet at least once each calendar quarter, or as often
as is necessary, and remain in session as long as the chairman considers it
necessary to give full consideration to the business before the board. A
quorum of the board is four members. Members of the board or support
staff, in a spirit of cooperation, may confer with similar boards of other
states, attend interstate meetings, and generally do those acts and things as
may seem advisable in the advancement of the profession and the standards
of real estate appraisal activity.
(H) Members of the board are entitled to per diem, subsistence, and
mileage as is provided by law for state boards, committees, and
commissions.
(I) The board shall establish policy and promulgate regulations
consistent with this chapter and through its regulations shall have the full
power to regulate the issuance of permits, registrations, licenses, and
certifications, to discipline appraisers in any manner permitted by this
chapter, to establish further qualification for permits, registrations, licenses,
and certifications consistent with this chapter, to regulate approved courses
and course providers or sponsors, and to establish standards for real estate
appraisals consistent with the standards recognized by the appraisal
subcommittee.
(J) The board shall prepare specifications for all licensing and
certification examinations, solicit bids and enter into contracts with one or
more persons, educational testing services, or organizations for the
preparation of a bank of questions and answers for licensing and
certification examinations and administer or contract for the administration
of examinations in those places and at those times as considered
appropriate.
(K) The commission shall supply staff support for the board. The
commissioner shall serve as chief executive officer of the board and shall
establish appropriate procedures for administering this chapter and
prescribe those duties for his assistants as may be necessary in the
administration and enforcement of this chapter.
(L) From its funds, the board shall pay its share of the expense of the
maintenance and operation of the office of the commission and the
utilization of the commission staff in the administration and enforcement of
this chapter in an amount agreed upon by the board and commission.
Section 40-60-60. (A) A person desiring to act as a state licensed or
state certified real estate appraiser must file an application for examination,
licensure, or certification with the board. A person desiring to act as a state
registered real estate appraiser must file an application for registration with
the board. A person desiring to act as an appraiser apprentice must file an
application for a permit with the board. The applications must be in the
form and detail the board prescribes.
(B) Each application for examination, permit, registration, licensure, or
certification as a real estate appraiser, or for the renewal of a permit,
registration, license, or certification, must be accompanied by the
appropriate fee which must be prescribed by the board by regulation.
(C) No fee or portion of a fee required pursuant to this chapter may be
refunded.
(D) The board may transmit to the appropriate federal authority, at least
annually, a roster of individuals who have become state licensed real estate
appraisers and state certified real estate appraisers and must collect and
transmit any information or fees established under Public Law 101-73, Title
XI, Real Estate Appraisal Reform Amendments. The board may collect a
processing fee necessary to carry out its function under this subsection.
(E) The commissioner shall issue a permit, registration, license, or
certification to engage in the practice of real estate appraising to all
applicants who are qualified under, and who comply with, all the
requirements of this chapter and all regulations promulgated by the board.
The permit, registration, license, or certification remains the property of the
State and, upon suspension or revocation of the permit, registration, license,
or certification must be returned immediately to the commissioner with any
related pocket card. Permits, registrations, licenses, and certifications
expire on June thirtieth of each year.
(F) An appraiser apprentice, state registered real estate appraiser, state
licensed real estate appraiser, or a state certified real estate appraiser who
fails or refuses, after written notice from the board to apply for renewal and
pay the fee and all penalties imposed, is practicing without a permit,
registration, license, or certification and is subject to the penalties provided
therefor in this chapter and any civil or criminal penalties authorized by
law.
(G) An appraiser apprentice, state registered real estate appraiser, state
licensed real estate appraiser, or a state certified real estate appraiser under
this chapter who fails to apply for the renewal of his permit, registration,
license, or certification and pay the required fee on or before the date of its
expiration shall pay a late penalty established by regulation in addition to
the renewal fee.
(H) The board, through its regulations, may establish those other
reasonable fees to aid in the enforcement and administration of this
chapter.
(I) Any check which is presented to the board as payment for any fee
which the board is permitted to charge under this chapter and which is
returned unpaid may be cause for denial of a permit, registration, license, or
certification or for imposing any sanction permitted by this chapter.
(J) Except as provided for in subsection (D), all fees collected pursuant
to the provisions of this chapter must be deposited by the board in the state
general fund.
Section 40-60-65. The following temporary fees must be charged by
and paid to the board until the board establishes fees by regulation, at
which time this section no longer has any force or effect:
(1) an application fee of one hundred dollars for each real estate
appraiser registration;
(2) an application fee of two hundred dollars for each real estate
appraiser license, certification, or apprentice permit;
(3) a renewal fee of one hundred dollars for each real estate appraiser
registration;
(4) a renewal fee of two hundred dollars for each real estate appraiser
license, certification, or apprentice permit;
(5) a license or certification examination fee not to exceed one hundred
dollars as determined by the board without the requirement of a regulation.
The board may direct applicants to pay the fee, or any portion thereof,
directly to a third party who has contracted to administer the
examination;
(6) a replacement fee of twenty-five dollars for each real estate
appraiser or apprentice permit, registration, license, or certification where
the original is lost or destroyed;
(7) a fee of fifteen dollars for each change of personal name;
(8) a fee of thirty dollars to reinstate each permit, registration, license,
or certification during the same year it was canceled;
(9) a fee of seventy-five dollars for each permit, registration, license, or
certification filing for inactive status for each year inactive status is
granted;
(10) a fee of seventy-five dollars to activate a permit, registration,
license, or certification from inactive status;
(11) a late penalty of twenty-five dollars shall apply from July first
through July thirty-first for each permit, registration, license, or
certification not timely renewed. A late penalty of fifty dollars shall apply
from August first through August thirty-first. After August thirty-first, the
permit, registration, license, or certification which has not been properly
renewed must be canceled, except that after August thirty-first, any person
seeking to reinstate his permit, registration, license, or certification before
the next renewal period may do so upon payment of a late penalty of two
hundred fifty dollars;
(12) a fee of fifteen dollars for each attestation of apprentice permit,
registration, license, or certification status;
(13) a fee not to exceed two hundred dollars per course as determined
by the board without the requirement of a regulation for the approval of
courses required by Section 40-60-70 and a renewal fee of one hundred
dollars a year. No fees may be charged for the approval or renewal of
courses which are part of a degree program and are offered by an accredited
college, university, technical college, community college, or junior
college;
(14) a fee of two hundred dollars for instructor approval and a renewal
fee of two hundred dollars per year, provided that no fees may be charged
for instructor approval or renewal if the courses taught by the instructor are
offered as part of a degree program by an accredited college, university,
technical college, community college, or junior college. (15) an application fee of fifty dollars for each temporary practice
permit;
(16) a fee of fifty dollars for each course reviewed by the board
pursuant to Section 40-60-80(C).
(17) a fee of seventy-five dollars to upgrade from one appraiser
category to another;
(18) a fee of fifty dollars for the issuance of a roster of appraisers;
(19) a fee of seventy-five dollars for a diskette containing a roster of
appraisers;
(20) a fee of eighty-five dollars for labels containing the addresses of
appraisers or examination applicants;
(21) a service charge of twenty dollars regarding a check or instrument
which is presented to the board as payment for any fee which the board is
permitted to charge and which is dishonored or returned unpaid.
Section 40-60-70. (A)(1) In order to qualify as a state registered real
estate appraiser, an applicant must:
(a) hold a real estate broker-in-charge, broker, or salesman license
issued pursuant to Chapter 57 of Title 40;
(b) submit appropriate registration fees.
(2) Failure to meet either requirement provided in item (1) of this
subsection is grounds for denial of a registration without a hearing.
(B)(1) In order to qualify as an appraiser apprentice, an applicant
must:
(a) have attained the age of eighteen years;
(b) be a resident of the State of South Carolina unless that person has
fully complied with the provisions of Section 40-60-100;
(c) furnish evidence that he will be supervised by an appraiser that is
licensed or certified by the board;
(d) furnish evidence that he has successfully completed not less than
seventy-five classroom hours in a course or courses of study related to real
estate appraisal approved by the board which must include coverage of
standards of professional appraisal practice;
(i) A classroom hour is defined as fifty minutes out of each
sixty-minute segment.
(ii) Credit toward the classroom-hour requirement only may be
granted where the length of the educational offering is at least fifteen hours,
and the individual successfully completes an examination pertinent to that
educational offering.
(iii) Credit for the classroom-hour requirement may be obtained
from the following:
(a.) accredited colleges or universities;
(b.) technical, community, or junior colleges;
(c.) real estate appraisal or real estate related
organizations;
(d.) state or federal agencies or commissions;
(e.) proprietary schools;
(f.) other providers regulated and approved by the board.
(iv) Various appraisal courses may be credited toward the
seventy-five classroom-hour education requirement. Applicants must
demonstrate that their education involved coverage of all topics listed
below with particular emphasis on the appraisal of one to four unit
residential properties:
(a.) influences on real estate value;
(b.) legal considerations in appraisal;
(c.) types of value;
(d.) economic principles;
(e.) real estate markets and analysis;
(f.) valuation process;
(g.) property description;
(h.) highest and best use analysis;
(i.) appraisal statistical concepts;
(j.) sales comparison approach;
(k.) site value;
(l.) cost approach;
(m.) income approach;
-gross rent multiplier analysis
-estimation of income and expenses
-operating expense ratios
(n.) valuation of partial interests;
(o.) appraisal standards and ethics.
(2) Failure to meet any of the requirements provided in item (1) of this
subsection is grounds for denial of an apprentice permit without a
hearing.
(3) An appraiser apprentice may renew his annual permit five times
only. At the end of the fifth renewal period the permit is canceled
automatically without any action by the board, unless the appraiser
apprentice can demonstrate to the satisfaction of the board sufficient cause
for his permit not to be canceled. Any person who engages in real estate
appraisal activity after this cancellation is practicing without a permit and is
subject to the penalties provided in this chapter and any other civil or
criminal penalties provided by law.
(C)(1) In order to qualify as a state licensed real estate appraiser, an
applicant must:
(a) have attained the age of eighteen years;
(b) be a resident of the State of South Carolina unless that person has
fully complied with the provisions of Section 40-60-100;
(c) furnish evidence that he has successfully completed not less than
seventy-five classroom hours in a course or courses of study related to real
estate appraisal approved by the board which must include coverage of
standards of professional appraisal practice;
(i) A classroom hour is defined as fifty minutes out of each
sixty-minute segment.
(ii) Credit toward the classroom-hour requirement only may be
granted where the length of the educational offering is at least fifteen hours,
and the individual successfully completes an examination pertinent to that
educational offering.
(iii) Credit for the classroom-hour requirement may be obtained
from the following:
(a.) accredited colleges or universities;
(b.) technical, community, or junior colleges;
(c.) real estate appraisal or real estate related organizations;
(d.) state or federal agencies or commissions;
(e.) proprietary schools;
(f.) other providers regulated and approved by the board.
(iv) Various appraisal courses may be credited toward the
seventy-five classroom-hour education requirement. Applicants must
demonstrate that their education involved coverage of all topics listed
below with particular emphasis on the appraisal of one to four unit
residential properties:
(a.) influences on real estate value;
(b.) legal considerations in appraisal;
(c.) types of value;
(d.) economic principles;
(e.) real estate markets and analysis;
(f.) valuation process;
(g.) property description;
(h.) highest and best use analysis;
(i.) appraisal statistical concepts;
(j.) sales comparison approach;
(k.) site value;
(1.) cost approach;
(m.) income approach;
-gross rent multiplier analysis;
-estimation of income and expenses;
-operating expense ratios;
(n.) valuation of partial interests;
(o.) appraisal standards and ethics.
(d) demonstrate the equivalent of two years appraisal experience. If
requested, experience documentation in the form of reports or file
memoranda should be available to support the claim for experience;
(i) A year is defined in terms of hours within a calendar year. One
thousand hours constitutes a year of appraisal experience. A minimum of
two calendar years is required. Hours may be treated as cumulative in order
to achieve the necessary two thousand hours of appraisal experience.
(ii) Acceptable appraisal experience may include, but is not limited
to, fee and staff appraisal, ad valorem tax appraisal, review appraisal,
appraisal analysis, real estate counseling, highest and best use analysis,
feasibility analysis/study, and teaching of appraisal courses. This should
not be construed as limiting experience credit to only those individuals who
are state certified or state licensed.
(iii) The verification for experience credit claimed by an applicant
must be by affidavit on forms prescribed by the board.
(e) stand for and pass an examination administered or approved by
the board.
(f) the only prerequisite to sit for the examination is completion of
the education/classroom hour requirement.
(2) Failure to meet any of the requirements provided in item (1) of this
subsection is grounds for denial of license without a hearing.
(3)(a) An applicant seeking to qualify as a state licensed real estate
appraiser who lacks either the education or the experience requirements,
but not both, provided in item (1) of this subsection may apply for a
transitional license. Within twenty-four months from the date of issuance
of a transitional license, the licensee must submit proof of successful
completion of all of the educational or experience requirements.
Transitional licenses may not be issued to applicants pursuant to this item
(3) subsequent to December 31, 1993.
(b) If proof of successful completion of the required education or
experience is not provided within twenty-four months, the license is
canceled automatically without any action by the board. Any person who
engages in real estate appraisal activity after this cancellation is practicing
without a license and is subject to the penalties provided in this chapter and
any other civil or criminal penalties provided by law.
(c) No license which has been canceled may be reinstated until it is
established to the satisfaction of the board that all educational and
experience requirements of the board have been met.
(d) The board is authorized to modify any requirements of this item
in order to bring these requirements into conformity of any guidelines
established by the appraisal subcommittee.
(D)(1) In order to qualify as a state certified residential real estate
appraiser, an applicant must:
(a) have attained the age of eighteen years;
(b) be a resident of the State of South Carolina unless that person has
fully complied with the provisions of Section 40-60-100;
(c) furnish evidence that he has successfully completed not less than
one hundred five classroom hours in a course or courses of study related to
real estate appraisal approved by the board which must include coverage of
standards of professional appraisal practice and which may include the
seventy-five classroom hours required for the state licensed real estate
appraiser classification;
(i) A classroom hour is defined as fifty minutes out of each
sixty-minute segment.
(ii) Credit toward the classroom-hour requirement only may be
granted where the length of the educational offering is at least fifteen hours,
and the individual successfully completes an examination pertinent to that
educational offering.
(iii) Credit for the classroom-hour requirement may be obtained from
the following:
(a.) accredited colleges or universities;
(b.) technical, community, or junior colleges;
(c.) real estate appraisal or real estate related organizations;
(d.) state or federal agencies or commissions;
(e.) proprietary schools;
(f.) other providers regulated and approved by the board;
(iv) various appraisal courses may be credited toward the one
hundred five classroom-hour education requirement. Applicants must
demonstrate that their education involved coverage of all topics listed
below with particular emphasis on the appraisal of one to four unit
residential properties:
(a.) influences on real estate value;
(b.) legal considerations in appraisal;
(c.) types of value;
(d.) economic principles;
(e.) real estate markets and analysis;
(f.) valuation process;
(g.) property description;
(h.) highest and best use analysis;
(i.) appraisal statistical concepts;
(j.) sales comparison approach;
(k.) site value;
(l.) cost approach;
(m.) income approach;
-gross rent multiplier analysis;
-estimation of income and expenses;
-operating expense ratios;
-direct capitalization;
(n.) valuation of partial interests;
(o.) appraisal standards and ethics.
(d) demonstrate the equivalent of two years appraisal experience. If
requested, experience documentation in the form of reports or file
memoranda should be available to support the claim for experience;
(i) A year is defined in terms of hours within a calendar year. One
thousand hours constitutes a year of appraisal experience. A minimum of
two calendar years is required. Hours may be treated as cumulative in order
to achieve the necessary two thousand hours of appraisal experience.
(ii) Acceptable appraisal experience may include, but is not limited
to, fee and staff appraisal, ad valorem tax appraisal, review appraisal,
appraisal analysis, real estate counseling, highest and best use analysis,
feasibility analysis/study, and teaching of appraisal courses. This should
not be construed as limiting experience credit to only those individuals who
are state certified or state licensed.
(iii) The verification for experience credit claimed by an applicant
must be by affidavit on forms prescribed by the board.
(e) stand for and pass an examination administered or approved by
the board;
(f) the only requirement to sit for the examination is completion of
the education/classroom hour requirement.
(2) Failure to meet any of the requirements provided in item (1) of this
subsection is grounds for denial of certification without a hearing.
(E)(1) In order to qualify as a state certified general real estate
appraiser, an applicant must:
(a) have attained the age of eighteen years;
(b) be a resident of the State of South Carolina unless that person has
fully complied with the provisions of Section 40-60-100;
(c) furnish evidence that he has successfully completed not less than
one hundred sixty-five classroom hours in a course or courses of study
related to real estate appraisal approved by the board which must include
coverage of standards of professional appraisal practice and which may
include the seventy-five classroom hours required for the state licensed real
estate appraiser classification or the one hundred five classroom hours
required for the state certified residential real estate appraiser
classification;
(i) A classroom hour is defined as fifty minutes out of each
sixty-minute segment.
(ii) Credit toward the classroom-hour requirement only may be
granted where the length of the educational offering is at least fifteen hours,
and the individual successfully completes an examination pertinent to that
educational offering.
(iii) Credit for the classroom-hour requirement may be obtained
from the following:
(a.) accredited colleges or universities;
(b.) technical, community, or junior colleges;
(c.) real estate appraisal or real estate related organizations;
(d.) state or federal agencies or commissions;
(e.) proprietary schools;
(f.) other providers regulated and approved by the board.
(iv) Various appraisal courses may be credited toward the one
hundred sixty-five classroom-hour education requirement. Applicants must
demonstrate that their education involved coverage of all topics listed
below with particular emphasis on the appraisal of nonresidential
properties. Residential is defined as one to four residential units:
(a.) influences on real estate value;
(b.) legal considerations in appraisal;
(c.) types of value;
(d.) economic principles;
(e.) real estate markets and analysis;
(f.) valuation process;
(g.) property description;
(h.) highest and best use analysis;
(i.) appraisal math and statistics;
(j.) sales comparison approach;
(k.) site value;
(l.) cost approach;
(m.) income approach;
-estimation of income and expenses;
-operating statement ratios;
-direct capitalization;
-cash flow estimates;
-measures of cash flow;
-discounted cash flow analysis;
(n.) valuation of partial interests;
(o.) appraisal standards and ethics;
(p.) narrative report writing.
(d) demonstrate the equivalent of two years' appraisal experience. If
requested, experience documentation in the form of reports or file
memoranda should be available to support the claim for experience;
(i) A year is defined in terms of hours within a calendar year. One
thousand hours constitutes a year of appraisal experience. A minimum of
two calendar years is required. Hours may be treated as cumulative in order
to achieve the necessary two thousand hours of appraisal experience.
(ii) The applicant, for two years' experience credit, must have
accumulated a total of two thousand hours of appraisal experience of which
at least fifty percent (one thousand hours) must be in nonresidential
appraisal work. Residential is defined as one to four residential units.
(iii) Acceptable appraisal experience may include, but is not limited
to, fee and staff appraisal, ad valorem tax appraisal, review appraisal,
appraisal analysis, real estate counseling, highest and best use analysis,
feasibility analysis/study, and teaching of appraisal courses. This should
not be construed as limiting experience credit to only those individuals who
are state certified or state licensed.
(iv) The verification for experience credit claimed by an applicant
must be by affidavit on forms prescribed by the board.
(e) stand for and pass an examination administered or approved by
the board.
(f) the only prerequisite to sit for the examination is completion of
the education/classroom hour requirement.
(2) Failure to meet any of the requirements provided in item (1) of this
subsection is grounds for denial of certification without a hearing.
(F) Failure to complete any of the educational requirements as provided
in this chapter is grounds for denial of permit, registration, license, or
certification or denial of renewal of permit, registration, license, or
certification without further hearing. No fees or portion of fees paid may
be refunded if any appraiser fails to meet the continuing education
provisions of this chapter.
(G) The board is authorized to waive or to modify any experience,
examination, or education requirements established in this chapter for
appraisers in order to bring those requirements into conformity with any
requirements established by the appraisal subcommittee.
(H) Any applicant who does not become licensed or certified within five
years after passing the examination must retake the examination in order to
qualify for the license or certification sought.
Section 40-60-80. (A) As a prerequisite to renewal of a permit,
registration, license, or certification, an appraiser shall present evidence
satisfactory to the board of having met the continuing education
requirements established by this chapter or regulation.
(B) The basic continuing education requirement for renewal of a permit,
registration, license, or certification is completion by the applicant of ten
classroom hours of instruction in courses or seminars which have been
approved by the board for each year of the renewal period.
(1) A classroom hour is defined as fifty minutes out of each
sixty-minute segment.
(2) Credit toward the classroom-hour requirement only may be
granted where the length of the educational offering is at least two
hours.
(3) Credit for the classroom-hour requirement may be obtained from
the following:
(a) accredited colleges or universities;
(b) technical, community, or junior colleges;
(c) real estate appraisal or real estate related organizations;
(d) state or federal agencies or commissions;
(e) proprietary schools;
(f) other providers regulated and approved by the board.
(C) Appraisers may request to receive credit for continuing education
for a course that has not been approved by the board. However, such credit
may be granted only if the appraiser provides satisfactory proof of course
completion and the board finds that the course meets the criteria set for
continuing education courses with regard to subject matter, course length,
instructor qualification and student attendance.
(D) A permit, registration, license, or certification of an appraiser that
has been suspended may not be reissued until the applicant for reissuance
presents evidence of completion of the continuing education required by
this section.
(E) No appraiser whose permit, registration, license, or certification has
been placed on inactive status is allowed to reactivate a permit, registration,
license, or certification unless the provisions of this section are met in
addition to any other requirements of this chapter. Before applying to
reactivate a permit, registration, license, or certification, the appraiser must
obtain the equivalent of ten classroom hours of instruction in courses or
seminars which cover real estate related appraisal topics for each year that
the permit, registration, license, or certification has been on inactive
status."
Permitting references added
SECTION 4. Section 40-60-100 of the 1976 Code is amended to read:
"Section 40-60-100. (A) Every applicant for permitting,
registration, licensure, or certification under this chapter who is not a
resident of South Carolina shall submit, with the application for permitting,
registration, licensure, or certification, an irrevocable consent that service
of process upon the applicant may be made by delivery of the process to the
commissioner, if, in an action against the applicant in a court of South
Carolina arising out of the applicant's activities as an appraiser, the
plaintiff, in the exercise of due diligence, may not effect personal service
upon the applicant.
(B) A nonresident of South Carolina who has complied with the
provisions of subsection (A) of this section may obtain a permit,
registration, license, or certification by conforming to all of the provisions
of this chapter relating to the permit, registration, license, or certification
sought.
(C) A person who is licensed or certified to practice real estate
appraising in other states shall submit an attestation of licensure or
certification from the real estate appraiser regulatory authority of the other
jurisdictions at the time of filing an application for examination and copies
of the records of any disciplinary actions taken against the applicant's
license or certification. In the application for examination, all questions of
equivalency of academic and experience requirements of other states must
be determined by the commissioner and, at the discretion of the
commissioner, the nonresident applicant must comply with additional
requirements specified by the commissioner.
(D) The commissioner, with concurrence of the board, may enter into
reciprocal agreements with real estate appraiser regulatory authorities of
other jurisdictions which provide for waivers of education requirements or
examinations if the board considers the education and examination
requirements of another jurisdiction to be substantially equivalent to the
requirements of this chapter and its regulations."
Registration and conduct provisions revised
SECTION 5. Sections 40-60-120 through 40-60-140 of the 1976 Code are
amended to read:
"Section 40-60-120. (A) The board shall prescribe the form of a
wall certificate to denote that an individual is an appraiser apprentice, a
state registered real estate appraiser, a state licensed real estate appraiser, a
state certified residential real estate appraiser, or a state certified general
real estate appraiser, as the case may be. The board shall mail the wall
certificate to the appraiser whose duty it is to display the wall certificate
conspicuously in the appraiser's place of business. The board also shall
prepare and deliver a pocket card indicating that the person whose name
appears thereon is an appraiser apprentice, a state registered real estate
appraiser, a state licensed real estate appraiser, a state certified residential
real estate appraiser, or a state certified general real estate appraiser.
(B) A permit, registration, license, or certification issued under
authority of this chapter must bear a number assigned by the board. When
signing an appraisal report, an appraiser apprentice shall place his permit
number adjacent to or immediately below his title of `Appraiser
Apprentice'. When signing an appraisal report, a state registered real estate
appraiser shall place his registration number adjacent to or immediately
below his title of `State Registered Real Estate Appraiser'. When signing an
appraisal report, a state licensed real estate appraiser shall place his license
number adjacent to or immediately below his title of `State Licensed Real
Estate Appraiser'. When signing an appraisal report, a state certified
residential real estate appraiser shall place his certificate number adjacent
to or immediately below his title of `State Certified Residential Real Estate
Appraiser'. When signing an appraisal report, a state certified general real
estate appraiser shall place his certificate number adjacent to or
immediately below his title of `State Certified General Real Estate
Appraiser'. The permit, registration, license, or certificate number must be
used in all statements of qualification, contracts, or other instruments used
by the appraiser when reference is made to his apprentice, registered,
licensed, or certified status.
(C) All real estate appraisals given in connection with federally-related
transactions in this State must be in writing and contain the permit,
registration, license or certification number assigned by the board to the
real estate appraiser.
(D) Wall certificates and pocket cards shall remain the property of the
State and, upon any suspension or revocation of a permit, registration,
license, or certification pursuant to this chapter, the individual holding the
related wall certificate or pocket card immediately shall return the wall
certificate or pocket card to the commissioner.
Section 40-60-130. (A) A state permit, registration, licensure, or
certification is granted only to persons who bear a good reputation for
honesty, trustworthiness, integrity, and competence to transact real estate
appraisal activity in a manner as to safeguard the interest of the public and
only after satisfactory proof of the qualifications has been presented to the
board.
(B) Where an applicant for a permit, registration, license, or
certification has been convicted in a court of competent jurisdiction of this
or any other state, district, or territory of the United States, or of a foreign
country of the offense of forgery, embezzlement, obtaining money under
false pretenses, theft, extortion, or conspiracy to defraud or other like
offense, has been convicted of a felony or a crime involving moral
turpitude, or pled nolo contendere to any such offense, the
untrustworthiness of the applicant and the conviction in itself may be a
sufficient ground for refusal of granting a permit, registration, license, or
certification. As used in this chapter, `felony' includes any offense which,
if committed in this State, would be deemed a felony, without regard to its
designation elsewhere. As used in this chapter, `conviction' includes a
finding or verdict of guilty or a plea of guilty regardless of whether an
appeal of the conviction has been sought. An applicant for a permit,
registration, license, or certification who has been convicted of any offense
enumerated in this subsection may be registered, licensed, or certified by
the board only if:
(1) at least five years have passed since the applicant was convicted,
sentenced, or released from any incarceration, whichever is later;
(2) no criminal charges are pending against the applicant; and
(3) the applicant presents to the board satisfactory proof that the
applicant now bears a good reputation for honesty, trustworthiness,
integrity, and competence to transact real estate appraisal activity in a
manner to safeguard the interests of the public.
(C) If an applicant has been denied a permit, registration, license, or
certification or his permit, registration, license, or certification to practice
or conduct any regulated profession, business, or vocation has been
suspended by any occupational licensing body of this State, any other state,
any foreign country, or any court or lawful agency thereof, or if the
applicant has been guilty of conduct or practices in this State or elsewhere
which would have been grounds for suspending his permit, registration,
license, or certification under this chapter had the applicant then been
permitted, registered, licensed, or certified, the applicant is considered not
to be qualified unless, because of lapse of time and subsequent good
conduct and reputation, or other reason considered sufficient, it appears to
the board that the interest of the public is not likely to be endangered by the
granting of a permit, registration, license, or certification.
(D) If an applicant has been disbarred or his permit, registration, license,
or certification to practice or conduct any regulated profession, business, or
vocation has been revoked by any occupational licensing body of this State,
any other state, any foreign country, or any court or lawful agency thereof,
the applicant may be permitted, registered, licensed, or certified by the
board only if:
(1) at least two years have passed since the date that the applicant's
occupational registration, license, or certification were revoked;
(2) no criminal charges are pending against the applicant at the time of
application; and
(3) the applicant presents to the board satisfactory proof that the
applicant now bears a good reputation for honesty, trustworthiness,
integrity, and competence to transact real estate appraisal activity in such a
manner as to safeguard the interests of the public.
(E) Where an applicant or an appraiser has been found guilty of a
violation of the Federal Fair Housing Law or the South Carolina Fair
Housing Law by an administrative law judge or a court of competent
jurisdiction and after any appeal of the conviction is concluded, the
conviction may be a sufficient ground for refusal of granting a permit,
registration, license, or certification or the imposition of any sanction
permitted by this chapter.
(F) Whenever any appraiser is convicted or pleads nolo contendere to
any offense enumerated in subsection (B) of this section, the appraiser must
notify the board within seven days of that conviction by certified mail,
return receipt requested. The appraiser's permit, registration, license, or
certification automatically must be revoked sixty days after the conviction
or plea unless the appraiser makes a written request to the board for a
hearing during that sixty-day period. Following a hearing held pursuant to
this subsection, the board may impose upon that appraiser any sanction
permitted by this chapter.
(G) Where an applicant or an appraiser has made a false statement of
material fact on an application or caused to be submitted or been a party to
preparing or submitting any falsified application to the board, the action
may be a sufficient ground for the refusal, suspension, or revocation of the
permit, registration, license, or certification.
(H) Suspension or revocation of a permit, registration, license, or
certification, as provided by this chapter, also is grounds for refusal to grant
a permit, registration, license, or certification.
(I) The conduct provided for in subsections (A) through (E) of this
section which relates to the denial of a permit, registration, license, or a
certification to an applicant also is grounds for the imposition of any
sanction permitted by this chapter when the conduct is that of an
appraiser.
Section 40-60-140. (A) The board may, upon its own motion, and shall,
upon the written complaint of any aggrieved person, investigate the
activities of an applicant or a person permitted, registered, licensed, or
certified under this chapter and may deny, suspend, revoke, or otherwise
restrict a permit, registration, license, or certification or impose either a
public or private reprimand, other discipline, or a fine not to exceed one
thousand dollars per occurrence, if the board finds an applicant, appraiser
apprentice, state registered real estate appraiser, state licensed real estate
appraiser, or state certified real estate appraiser has:
(1) failed to meet the minimum qualifications for a permit,
registration, licensure, or certification established by or pursuant to the
provisions of this chapter;
(2) procured or attempted to procure a permit, registration, license, or
certification under the act by knowingly making a false statement,
submitting false information, or making a material misrepresentation in an
application filed with the board or procured or attempted to procure a
permit, registration, license, or certification through fraud or
misrepresentation;
(3) paid money to a person to procure a permit, registration, license,
or certification other than the fees established pursuant to the provisions of
this chapter;
(4) performed an act in the practice of real estate appraising which
constitutes dishonest, fraudulent, or improper conduct;
(5) engaged in the business of real estate appraising under an assumed
or fictitious name;
(6) paid a finder's fee or a referral fee in connection with an appraisal
of real estate or real property in this State;
(7) made a false or misleading statement in that portion of a written
appraisal report that deals with professional qualifications or in any
testimony concerning professional qualifications;
(8) violated the confidential nature of governmental records to which
an appraiser gained access through employment or engagement as an
appraiser by a governmental agency;
(9) violated any of the standards for the development or
communication of real estate appraisals as promulgated by the board;
(10) failed or refused without good cause to exercise reasonable
diligence in developing an appraisal, preparing an appraisal report, or
communicating an appraisal;
(11) exhibited negligence or incompetence in developing an appraisal,
in preparing an appraisal report, or in communicating an appraisal;
(12) accepted an independent appraisal assignment when the
employment itself or fee to be paid was contingent upon the appraiser's
reporting a predetermined estimate, analysis, valuation, opinion, or
conclusion, or upon the award, recovery, or consequences resulting from
the appraisal assignment;
(13) failed to retain for five years the original or a true 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 unless, within the five-year
period, the appraiser is notified that the appraisal or the appraisal report is
involved in litigation, in which event the five-year period for the retention
of records commences on the date of the final disposition of the
litigation;
(14) failed upon reasonable request of an authorized investigator of
the board to make all records required to be maintained under the
provisions of this chapter available to the board for inspection and copying
by the board or failed to appear upon reasonable request for an interview
with an authorized investigator of the board;
(15) demonstrated bad faith, dishonesty, untrustworthiness, or
incompetency to act as an appraiser in a manner to endanger the interests of
the public;
(16) performed or attempted to perform any real estate appraisal
activity on property located in another state without first having complied
fully with that state's laws regarding real estate appraisal activity;
(17) paid a fee or valuable consideration to a person for acts or
services performed in violation of this chapter;
(18) been convicted of a felony or a crime involving moral turpitude
or pled guilty or nolo contendere to any such offense;
(19) violated any provision of this chapter or any regulation
promulgated hereunder.
(B) When an appraiser has previously been sanctioned by the board or
by any other state's real estate appraiser regulatory authority, the board may
consider these prior sanctions in determining the severity of a new sanction
which may be imposed upon a finding that an appraiser has violated a
provision of this chapter or any of the regulations of the board. The failure
of an appraiser to comply with or to obey a final order of the board may be
cause for suspension or revocation of the individual's permit, registration,
license, or certification after opportunity for a hearing.
(C) In a disciplinary proceeding based upon a civil judgment, an
appraiser must be afforded an opportunity to present matters in mitigation
and extenuation but may not collaterally attack the civil
judgment."
Standards of appraisal practice
SECTION 6. Chapter 60, Title 40 of the 1976 Code is amended by
adding:
"Section 40-60-145. The board shall adopt the uniform standards
of professional appraisal practice, as adopted by the appraisal standards
board of the appraisal foundation and amended from time to time. All
appraiser apprentices and state registered, licensed, and certified appraisers
shall conform their professional conduct to these standards of professional
appraisal practice."
Revocation discipline and investigation provisions revised
SECTION 7. Sections 40-60-150 through 40-60-170 of the 1976 Code are
amended to read:
"Section 40-60-150. (A) An appraiser who has had a permit,
registration, license, or certification revoked by the board must not be
issued a new permit, registration, license, or certification within two years
from and after the date of the revocation, nor at any time thereafter except
upon an affirmative vote of at least a majority of the members of the board. (B) A permit, registration, license, or certification of an appraiser that
has been revoked must not be reissued until the applicant for reinstatement
presents evidence of completion of the continuing education required by
this chapter.
(C) A license or certification of an appraiser that has been revoked may
not be reissued until the applicant for reinstatement successfully completes
the examination for licensure or certification.
Section 40-60-160. (A) Whenever a complaint filed with the board
involves an appraisal report which varies from a sales, lease, or exchange
price the board may, in its discretion, decline to conduct an
investigation.
(B) A person authorized to conduct an investigation on behalf of the
board shall have access to and may examine any writings, documents, or
other material which may be related to an investigation.
(C) In the conduct of an investigation or proceeding under this chapter,
the chairman of the board, the commissioner, or any duly authorized
assistant or deputy appointed by the commissioner, may issue subpoenas to
compel production of those writings, documents, or material on behalf of
the board. After the service of a notice of hearing, the chairman of the
board, commissioner, or any duly authorized assistant or deputy appointed
by the commissioner may issue subpoenas to compel production of those
writings, documents, or material, either on behalf of the board or at the
request of a respondent. The commissioner, chairman of the board, the
board, or the respondent may apply to the circuit court of the county in
which a person disobeying a subpoena resides for an order requiring
compliance. Failure to comply with an order is punishable as for contempt
of court.
(D) If technical assistance is required in an investigation due to its
complexity, the commissioner may contract on behalf of the board for
consultant services provided:
(1) no member of the board or commission obtains financial gain for
himself through these consultant services;
(2) no person with whom a member of the board or commission or a
member of his household is employed or negotiating or has an arrangement
concerning prospective employment, may provide these consultant
services. (E) The results of all investigations may be reported only to the
board or to the commissioner and the records of the investigations are not
subject to subpoena in civil actions. Records of investigations must be kept
by the board and no part of any investigative record may be released for
any purpose other than a hearing before the board or its designated hearing
officer, review by another law enforcement agency or lawful licensing
authority upon issuance of a subpoena from the agency or authority or at
the discretion of the board or the commissioner, review by the respondent
after the service of a notice of hearing, or an appeal of a decision by the
board to a court of competent jurisdiction. After service of a notice of
hearing, a respondent has a right to obtain a copy of the investigative record
pertaining to the respondent.
(F) Whenever the board issues a disciplinary sanction pursuant to the
provisions of this chapter, the board shall publish the sanction in its official
newsletter unless the sanction is a private reprimand.
(G) The commissioner shall maintain in his main office a public docket
or record, in which he shall record, from time to time as made, the rulings
or decisions upon all complaints filed with the board and all investigations
instituted by the board, upon or in connection with which any hearing has
been held, or in which an appraiser apprentice, state registered real estate
appraiser, a state licensed real estate appraiser, or state certified real estate
appraiser has made no defense unless the board issues a private reprimand
in that instance.
Section 40-60-170. (A) Before the board shall impose on any appraiser
any sanction permitted by this chapter or deny issuance of a permit,
registration, license, or certification to an applicant, it shall provide for a
hearing for the appraiser in accordance with the Administrative Procedures
Act.
(B) The date of the hearing must not be less than thirty nor more than
one hundred twenty days from the date after the appraiser or applicant is
notified of the charges against him.
(C) If an appraiser or applicant fails to appear at any hearing after
reasonable notice, the board may proceed to hear the evidence against the
appraiser or applicant and take action as if the appraiser or applicant had
been present. A notice of hearing or final decision of the board in a
disciplinary proceeding must be served upon the appraiser or applicant by
personal service or by certified mail, return receipt requested, to the last
known address of record with the board. If the material is returned marked
`unclaimed' or `refused' or is undeliverable and if the appraiser or applicant
may not be located after diligent effort, the commissioner is considered to
be the agent for the appraiser or applicant for the purposes of this section,
and service upon the commissioner is considered service upon the appraiser
or applicant.
(D) A decision by the board to revoke or suspend a permit, registration,
license, or certification or to restrict, limit, or otherwise discipline a permit,
registration, license, or certification holder must be by majority vote of the
total membership of the board. A disciplinary action is subject to review
by the circuit court upon petition filed by the permit, registration, license,
or certification holder within thirty days from the date of delivery of the
board's decision to the permit, registration, license, or certification holder.
A copy of the petition must be served upon the commissioner.
(E) A person who has exhausted all administrative remedies available
within this chapter and who is aggrieved by a final decision of the board is
entitled to judicial review in accordance with the Administrative
Procedures Act. The review is limited to the record established by the
board hearing.
(F) 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, certification, or registration."
Prohibited practice provisions revised
SECTION 8. Sections 40-60-190 through 40-60-210 of the 1976 Code are
amended to read:
"Section 40-60-190. (A) No person other than an appraiser
apprentice, state registered real estate appraiser, a state licensed real estate
appraiser, or a state certified real estate appraiser shall assume or use the
title or any title, designation, or abbreviation likely to create the impression
of state permitting, registration, licensure, or certification as a real estate
appraiser.
(B) `Appraiser apprentice', ` state registered real estate appraiser', `state
licensed real estate appraiser', `state certified residential real estate
appraiser', and `state certified general real estate appraiser' only may be
used to refer to individuals who hold this permit, registration, license, or
certification and may not be used following or immediately in connection
with the name or signature of a firm, partnership, corporation, or group or
in that manner that it might be interpreted as referring to a firm,
partnership, corporation, group, or anyone other than an individual holder
of the permit, registration, license, or certification.
(C) No permit, registration, license, or certification may be issued under
the provisions of this chapter to a corporation, partnership, firm, or
group.
Section 40-60-200. (A) A person who, directly or indirectly, with the
intention or upon the promise of receiving any valuable consideration,
offers, attempts, or agrees to perform or performs any single act of real
estate appraisal as defined in Section 40-60-20, whether as a part of an
appraisal or as an appraisal, is considered an appraiser within the meaning
of this chapter. The commission of a single act by a person who is required
to have a permit, registration, license, or certification under this chapter but
who is not permitted, registered, licensed, or certified constitutes a
violation of this chapter.
(B) It is unlawful for any person, directly or indirectly, to engage in or
conduct the business of, or advertise or hold himself out as engaging in or
conducting the business of, or act in the capacity of, an appraiser within
this State without first obtaining a permit, registration, license, or
certification as provided in this chapter.
(C) A person acting as an appraiser within the meaning of this chapter
without a permit, registration, license, or certification is guilty of a
misdemeanor and, upon conviction, must be punished by a fine of not more
than five hundred dollars or imprisonment of not more than six months, or
both, in the discretion of the court.
Section 40-60-210. (A) The board may issue a cease and desist order
prohibiting a person from violating the provisions of this chapter by
engaging in the practice of an appraiser without a permit, registration,
license, or certification. The cease and desist order is final ten days after it
is issued unless the person to whom the order is issued requests a hearing
before the board.
(B) The violation of a cease and desist order of the board issued under
subsection (A) of this section subjects the person violating the order to
further proceedings before the board, and the board is authorized to impose
a fine not to exceed one thousand dollars for each transaction constituting a
violation of the order. Each day that a person practices in violation of this
chapter constitutes a separate violation.
(C) Initial judicial review of the decision of the board entered pursuant
to this section is available solely in the circuit court of the county of
domicile of the board.
(D) Nothing in this section may be construed to prohibit the board from
seeking remedies otherwise available by statute without first seeking a
cease and desist order in accordance with the provisions of this
section."
Time effective
SECTION 9. This act takes effect upon approval by the Governor.
Approved the 14th day of June, 1993. |