H 3131 Session 109 (1991-1992)
H 3131 General Bill, By H.H. Clyborne
A Bill to amend Title 40, Code of Laws of South Carolina, 1976, by adding
Chapter 60 so as to enact the Real Estate Appraiser Licensing and
Certification Act.
12/27/90 House Prefiled
12/27/90 House Referred to Committee on Labor, Commerce and Industry
01/08/91 House Introduced and read first time HJ-75
01/08/91 House Referred to Committee on Labor, Commerce and
Industry HJ-75
02/12/91 House Tabled in committee
A BILL
TO AMEND TITLE 40, CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING CHAPTER 60 SO AS TO ENACT THE REAL
ESTATE APPRAISER LICENSING AND CERTIFICATION ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 40 of the 1976 Code is amended by adding:
"CHAPTER 60
Real Estate Appraisers
Section 40-60-10. This chapter may be cited as the `Real Estate
Appraiser Licensing and Certification Act'.
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 report' means a 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
considered to be an oral appraisal report.
(4) `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.
(5) `Appraiser' means a person who is a licensed real estate
appraiser or a state certified real estate appraiser.
(6) `Board' means the South Carolina Real Estate Appraisers
Board established pursuant to the provisions of this chapter.
(7) `Commission' means the South Carolina Real Estate
Commission.
(8) `Commissioner' means the South Carolina Real Estate
Commissioner.
(9) `Evaluation assignment' means an engagement for which an
appraiser is employed or retained to given an analysis, opinion, or
conclusion that relates to the nature, quality, or utility of identified real
estate or identified real property.
(10) `Federally-related transaction' means a real estate related
financial transaction which:
(a) a federal financial institutions regulatory agency or the
Resolution Trust Corporation engages in, contracts for, or regulates; and
(b) requires the services of an appraiser.
(11) `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.
(12) `Person' means an individual, corporation, partnership, or foreign
or domestic association.
(13) `Real estate' means an identified parcel of land, including
improvements, if any.
(14) `Real estate appraisal activity' means the act or process of
valuation of real estate or real property and preparing an appraisal
report.
(15) `Real property' means one or more defined interests, benefits, and
rights inherent in the ownership of real estate.
(16) `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; and opinions and conclusions given in connection
with activities such as real estate brokerage, mortgage banking, real
estate counseling, and real estate tax counseling.
(17) `State' includes a state, district, territory, possession, or province
of the United States or Canada.
(18) `State certified real estate appraiser' means a person who holds a
valid certificate as a real estate appraiser issued under the provisions of
this chapter.
(19) `State licensed real estate appraiser' means a person who holds a
valid license as a real estate appraiser issued under the provisions of this
chapter.
(20) `Valuation' means an estimate of the value of real estate or real
property.
(21) `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.
Section 40-60-30. Except as provided in Section 40-60-40, it is
unlawful for a person to engage in real estate appraisal activity in this
State after July 1, 1991, without first obtaining a license or certificate as
provided in this chapter.
Section 40-60-40. The provisions of this chapter do not apply to:
(1) a real estate appraiser who is a salaried employee of:
(a) the federal government; or
(b) an agency of the state government or political subdivision
which appraises real estate;
(2) a real estate licensee licensed in accordance with Chapter 57
of this title who, in the ordinary course of his business, gives an opinion
as to the price of real estate for the purpose of a prospective listing,
lease, or sale, except that the opinion as to the listing price, lease price,
or the sale price may not be referred to as an appraisal. No
compensation, fee, or other consideration may be charged for the
opinion other than a real estate commission or brokerage fee charged or
paid for brokerage services rendered in connection with the sale or lease
of the real estate involved:
(3) a person who provides assistance in:
(a) obtaining the data upon which an appraisal is based; or
(b) the physical preparation of an appraisal report, such as
taking photographs, preparing charts, maps, or graphs, or typing or
printing the report; and
(c) an activity that does not directly involve the exercise of
judgment in arriving at the analyses, opinions, or conclusions
concerning real estate or real property set forth in the appraisal report.
Section 40-60-50. (A) There is created the South Carolina Real
Estate Appraisers Board which consists of five 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. Four members
must be real estate appraisers who have been engaged actively in the real
estate appraisal business for at least five years.
(B) The Governor shall appoint the members of the board, subject
to confirmation by 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
acted upon by the Senate.
(C) Each real estate appraiser member of the board appointed after
January 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 January 1, 1992, must be state certified real estate
appraisers.
(D) Each member of the board serves a three-year term and until
his successor is appointed and qualifies. 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 elect a chairperson annually
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 chairperson
considers it necessary to give full consideration to the business before
the board. A quorum of the board is three 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 the
acts and things 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 provided by law for boards, committees, and
commissions.
(I) The board shall establish policy and adopt regulations consistent
with this chapter. Through its regulations, the board has the full power
to regulate the issuance of licenses, certifications, to discipline
appraisers in a manner permitted by this chapter, to establish further
qualification for licenses and certification consistent with this chapter,
to regulate approved courses, and to establish standards for real estate
appraisals.
(J) The board may prepare specifications for all licensing and
certification examinations, solicit bids, and enter into contracts with one
or more 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 places and at times 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
shall prescribe the duties for his assistants necessary in the
administration and enforcement of this chapter.
(L) 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.
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. The application
must be in form and detail as the board prescribes.
(B) Each application for examination, licensure, or certification
as a real estate appraiser, or for the renewal of a 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 collect and transmit to the appropriate federal
authority information and fees established under Public Law 101-73,
Title XI, Real Estate Appraisal Reform Amendment. The board may
collect a processing fee necessary to carry out its function under this
subsection.
(E) The commissioner shall issue a license or certificate 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 adopted by the board. The license or
certificate remains the property of the State and, upon suspension or
revocation of the license or certificate, must be returned immediately to
the commissioner together with any related pocket card. Licenses and
certificates expire on June thirtieth of each year.
(F) A 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 license or certificate and is subject to the penalties
provided in this chapter and any civil or criminal penalties.
(G) A state licensed real estate appraiser or a state certified real
estate appraiser under this chapter who fails to apply for the renewal of
his license or certificate 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 other
reasonable fees to aid in the enforcement and administration of this
chapter.
(I) 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 general fund through the State Treasurer's Office.
Section 40-60-70. (A)(1) 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 complied fully with the provisions of Section 40-60-100;
(c) furnish evidence that he has a college degree or has
completed successfully not less than seventy-five in-class hours in a
course of study related to real estate appraisal approved by the board
which must include coverage of standards of professional appraisal
practice;
(d) after meeting the requirements of subitem (c) of this
item, stand for and pass an examination administered by or approved by
the board covering generally the matters confronting state licensed real
estate appraisers.
(2) Failure to meet any of the requirements provided in item (1)
of this subsection is grounds for denial of a license without a hearing.
(B) (1) To qualify as a state certified 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 complied fully with the provisions of Section 40-60-100;
(c) furnish evidence that he has a college degree or has
completed successfully not less than one hundred sixty-five in-class
hours in a course of study related to real estate appraisal approved by the
board which must include coverage of standards of professional
appraisal practice;
(d) demonstrate to the satisfaction of the board at least two
years of full-time experience in real estate appraisal activity acquired
within a period of five years immediately preceding the filing of the
application for certification;
(e) after meeting the requirements of subitems (c) and (d) of
this item, stand for and pass an examination administered by or approved
by the board covering generally the matters confronting state certified
real estate appraisers.
(2) Failure to meet any of the requirements provided in item (1)
of this subsection is grounds for denial of a license without a hearing.
(C) The board is authorized to waive or to modify any experience,
examination, or education requirement established in this chapter for
appraisers in order to bring those requirements into conformity with any
requirements established by the Appraisal Subcommittee.
(D) An applicant who does not become licensed or certified within
ninety days after passing the examination must retake the examination
to qualify for the license or certification.
Section 40-60-80. (A) As a prerequisite to renewal of a license or
certification, an appraiser must present evidence satisfactory to the board
of having met continuing education requirements established by this
chapter or regulation.
(B) The basic continuing education requirement for renewal of a
certificate is completion by the applicant of ten in-class hours of
instruction in courses or seminars which have been approved by the
board for each year of the renewal period.
(C) In lieu of meeting the requirements of subsection (B) of this
section, an applicant may satisfy all or part of the requirements of this
section by presenting evidence of:
(1) completion of courses of study or seminars determined by
the board to be equivalent, for continuing education purposes, to courses
or seminars approved by the board pursuant to subsection (B) of this
section;
(2) participation, other than as a student, in educational
processes and programs in real property appraisal theory, practices, or
techniques, including, but not limited to, teaching or program
development, all to be approved by the board.
(D) A license or certificate of an appraiser that has been suspended
may not be reissued to the certificate holder until the applicant for
reissuance presents evidence of completion of the continuing education
required by this section.
(E) No appraiser whose license or certification has been placed on
inactive status is allowed to reactivate a license or certification unless
the provisions of this section are met in addition to any other
requirements of this chapter.
Section 40-60-90. (A) The board, through its regulations and
guidelines shall establish standards relative to the establishment and
conducting of all education courses required by this chapter and the
review, approval, or regulation of schools, organizations, associations,
institutions, or instructors offering the courses, including, but not limited
to, sponsorship by accredited colleges, universities, and private business
entities and organizations; establishment, approval, and review of
curriculum; instructors; hours of attendance; classroom facilities;
enrollment and cancellation policies; texts; examinations; certificates of
completion; and other operating procedures.
(B) The board, through its regulations, shall establish reasonable
fees relative to the review, approval, or regulation of schools,
organizations, associations, institutions, or instructors offering the
education courses required by this chapter.
(C) In making its determinations with respect to the courses of
study required by this chapter, the board shall give weight to courses
which teach one or more of the following:
(1) appropriate knowledge of technical terms commonly used
in or related to real estate appraising, appraisal report writing, and
economic concepts applicable to real estate and real property;
(2) an understanding of the basic principles of land economics,
real estate appraisal process, and of problems likely to be encountered
in gathering, interpreting, and processing of data required in the real
estate appraisal process;
(3) an understanding of the standards for the development and
communication of real estate appraisals as provided in this chapter;
(4) an understanding of the ethical rules that an appraiser is
required to observe;
(5) appropriate knowledge of theories of depreciation, cost
estimating, methods of capitalization, and the mathematics of real estate
appraisal;
(6) an understanding of basic real estate law;
(7) an understanding of the types of misconduct for which
disciplinary proceedings may be initiated against an appraiser, as set
forth in this chapter; and
(8) an understanding of other matters as may confront
appraisers in real estate appraisal activity.
(D) Failure to complete any of the educational requirements as
provided in this chapter is grounds for denial of a license or certification
or denial of renewal of a license or certification without further hearing.
No fees or portion of fees paid may be refunded if an appraiser fails to
meet the continuing education provisions of this chapter.
(E) The board may require additional hours of educational courses
for applicants for licensure or certification or of continuing education for
state licensed real estate appraisers or state certified real estate
appraisers, if the appraisal subcommittee adopts higher minimum hours
for the licensed or certified appraisers.
Section 40-60-100. (A) Every applicant for licensure or
certification under this chapter who is not a resident of South Carolina
shall submit, with the application for 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 license or
certification by conforming to all of the provisions of this chapter
relating to the license or certification sought.
(C) A person who is licensed or state certified to practice real estate
appraising in other states shall submit a certificate 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 shall 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.
Section 40-60-110. The board shall recognize on a temporary basis
the certification or license of an appraiser who is licensed or certified to
practice real estate appraising in another state if:
(1) the property to be appraised in this State is part of a federally
related transaction as defined under Public Law 101-73, Title XI, Real
Estate Appraisal Reform Amendment; and
(2) the appraiser's business is of a temporary nature; and
(3) the appraiser registers with the board before advertising or
assuming to act as a state certified or state licensed real estate appraiser
in this State and pays any required fees.
Section 40-60-120. (A) The board shall prescribe the form of a
wall certificate to denote that an individual is a state licensed real estate
appraiser or a state certified real estate appraiser. The board shall mail
the wall certificate to the appraiser who shall display the wall certificate
conspicuously in the appraiser's place of business. The board shall
prepare and deliver a pocket card indicating that the person whose name
appears on it is a state licensed real estate appraiser or a state certified
real estate appraiser.
(B) A license or certification issued under authority of this chapter
shall bear a number assigned by the board. 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 real estate appraiser shall place his certificate number adjacent
to or immediately below the title of `State Certified Real Estate
Appraiser'. The 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 licensed or certified status.
(C) Wall certificates and pocket cards shall remain the property of
the State and, upon suspension or revocation of a 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) State licensure or state 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 which safeguards 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 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
or 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 license or certification. As used in this chapter,
`felony' includes any offense which, if committed in this State, would be
considered a felony, without regard to its designation elsewhere; and
`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 license or a certification who has been convicted of an
offense enumerated in this subsection may be licensed or certified by the
board only if:
(1) at least five years have passed since the applicant was
convicted, sentenced, or released from 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 such
a manner as to safeguard the interests of the public.
(C) If an applicant has been denied a license or certification, or his
license or certification to practice or conduct a regulated profession,
business, or vocation has been suspended by an occupational licensing
body of this State, any other state, a foreign country, or a court or lawful
agency of the court, or if the applicant has been guilty of conduct or
practices in this State or elsewhere which would have been grounds for
suspending his license or state certification under this chapter had the
applicant then been state licensed or state 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 licensure or certification.
(D) If an applicant has been disbarred or his license or certification
to practice or conduct a regulated profession, business, or vocation has
been revoked by an occupational licensing body of this State, any other
state, a foreign country, or a court or lawful agency of a court, the
applicant may be licensed or certified by the board only if:
(1) at least two years have passed since the date that the
applicant's occupational license or certification was 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 a
manner which safeguards 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 an appeal of the conviction is concluded, the
conviction may be a sufficient ground for refusal of granting a license
or certification or the imposition of a sanction permitted by this chapter.
(F) Whenever an appraiser is convicted or pleads nolo contendere
to an offense enumerated in subsection (B) of this section, the appraiser
shall notify the board immediately of that conviction. The appraiser's
license or certification automatically is revoked ninety days after the
conviction or plea unless the appraiser makes a written request to the
board for a hearing during that ninety-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 a falsified application to the board, the
action may be a sufficient ground for the refusal, suspension, or
revocation of the license or certification.
(H) Suspension or revocation of a license or certification, as
provided for by this chapter, is grounds for refusal to grant a license or
certification.
(I) The conduct provided for in subsections (A) through (E) of this
section which relates to the denial of a license or a certification to an
applicant is grounds for the imposition of a sanction permitted by this
chapter when the conduct is that of an appraiser.
Section 40-60-140. (A) The board, upon its own motion, upon the
written complaint of an aggrieved person, shall investigate the activities
of an applicant or a person licensed or certified under this chapter and
may deny, suspend, revoke, or otherwise restrict a license or certificate
or impose either a public or private reprimand, other discipline, or a fine
not to exceed one thousand dollars if the board finds an applicant, state
licensed real estate appraiser, or state certified real estate appraiser has:
(1) failed to meet the minimum qualifications for licensure or
certification established by or pursuant to the provisions of this chapter;
(2) procured or attempted to procure a license or certificate
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 license or
certificate through fraud or misrepresentation;
(3) paid money to a person to procure a license or certificate
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 consequence 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 upon the date of the 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 upon
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 which endangers the
interests of the public;
(16) performed or attempted to perform a 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 a provision of this chapter or a regulation promulgated
under this chapter;
(B) When an appraiser previously has been sanctioned by the board
or by any other state's real estate appraiser regulatory authority, the
board may consider the 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 a regulation 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
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 attack the civil judgment
collaterally.
Section 40-60-150. An appraiser who has had a license or
certification revoked by the board may not be issued a new license or
certification within two years from and after the date of the revocation,
nor at any time after the revocation except upon an affirmative vote of
at least a majority of the members of the board.
(B) A license or certificate of an appraiser that has been revoked
may not be reissued until the applicant for reinstatement presents
evidence of completion of the continuing education required by this
chapter.
(C) A license or certificate 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 in its discretion may 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 chairperson of the board, the commissioner, or an authorized
assistant or deputy appointed by the commissioner, may issue subpoenas
to compel production of the writings, documents, or material on behalf
of the board. After the service of a notice of hearing, the chairperson of
the board, commissioner, or an authorized assistant or deputy appointed
by the commissioner may issue subpoenas to compel production of the
writings, documents, or material, either on behalf of the board or at the
request of a respondent. 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 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, provides
consultant services.
(E) The results of all investigations must 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 an investigative record may be
released for a 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
a hearing has been held, or in which a state licensed real estate appraiser
or state certified real estate appraiser has made no defense, unless the
board issues a private reprimand in the instance.
Section 40-60-170. (A) Before the board imposes on an appraiser
a sanction permitted by this chapter or denies issuance of a license or
certification to an applicant, it shall provide for a hearing for the
appraiser in accordance with Article 3, Chapter 23 of Title 1, the South
Carolina Administrative Procedures Act.
(B) The date of the hearing may 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 a 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 license or
certification or to restrict, limit, or otherwise discipline a licensee or
certificate 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 licensee or certificate holder within thirty days
from the date of delivery of the board's decision to the licensee or
certificate 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 Article 3,
Chapter 23 of Title 1, the South Carolina 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 license.
Section 40-60-180. The board may exclude all persons during board
or staff:
(1) deliberations on disciplinary proceedings;
(2) meetings with an appraiser or an applicant or the legal counsel
of that appraiser or applicant in which the appraiser or applicant seeks
to settle a matter before the board in lieu of a hearing;
(3) review of the results of investigations initiated under this
chapter.
Section 40-60-190. (A) No person other than a state licensed real
estate appraiser or a state certified real estate appraiser may assume or
use the title or a title, designation, or abbreviation likely to create the
impression of state licensure or state certification as a real estate
appraiser.
(B) `State licensed real estate appraiser' and `state certified real
estate appraiser' may be used only to refer to individuals who hold the
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 a manner that it might be interpreted as
referring to a firm, partnership, corporation, group, or anyone other than
an individual holder of the license or certification.
(C) No 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 a single
act of real estate appraisal activity 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 such act by a person who is required to have a license or
certification under this chapter but who is not so licensed or certified
constitutes a violation of this chapter.
(B) It is unlawful for a 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 license or certification as
provided in this chapter.
(C) A person acting as an appraiser within the meaning of this
chapter without a 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 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 may impose
a fine not exceeding one thousand dollars for each transaction
constituting a violation of the order. Each day's violation 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.
Section 40-60-220. For the purposes of Chapter 20, Title 1, the South
Carolina Real Estate Appraisers Board is subject to review in
conjunction with the South Carolina Real Estate Commission and the
programs, functions, and regulations of the board must be terminated as
provided in Chapter 20, Title 1, on June 30, 1995, unless reauthorized
by law."
SECTION 2. Of the members first appointed to the South Carolina
Real Estate Appraisers Board, two shall serve for three years, two shall
serve for two years, and one shall serve for one year, and until their
successors are appointed and qualify.
SECTION 3. This act takes effect eighteen months after approval by
the Governor.
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