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Bill 560

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COMMITTEE REPORT

May 3, 2000

S. 560

S. Printed 5/3/00--H.

Read the first time March 17, 2000.

To whom was referred a Bill (S. 560), to amend Title 40, Chapter 60, Code of Laws of South Carolina, 1976, relating to the licensure and regulation of real estate appraisers, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, Section 40-60-10(B) page 31, beginning on line 9 after /Governor/ by deleting /with the advice and consent of the Senate/ so when amended Section 40-60-10(B) reads:

/(B) The South Carolina Real Estate Appraisers Board consists of seven members who must be residents of this State and appointed by the Governor with consideration given to appropriate geographic representation and to areas of appraisal expertise as follows:

(1) 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.

(2) One member must be a licensed real estate broker who is not a real estate appraiser.

(3) 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.

(4) Four members must be licensed or certified appraisers, actively engaged in real estate appraisal for at least three years, at least two of whom must be certified general appraisers.

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. /

Amend the bill further, Section 40-60-20 page 32, by deleting item (2) on lines 11 through 15 and inserting:

/ (2) 'Appraisal' as a noun means the act or process of developing an opinion of value for or in expectation of compensation, fee, or other consideration; as an adjective, 'appraisal' means of or pertaining to appraising and related functions including, but not limited to, appraisal practice and appraisal services./

Amend the bill further, Section 40-60-20 page 33, immediately after line 13 by inserting:

/ (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 related to the nature, quality, value, or utility of identified real estate or identified real property./

Amend the bill further, Section 40-60-20 page 33, beginning on line 14 by deleting items (13) through (17) and inserting:

/ (14) 'Market analysis' means a study of real estate market conditions for a specific type of property.

(15) 'Mass appraisal' means the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing.

(16) 'Mass appraiser' means any appraiser who is employed in the office of a tax assessor to appraise real property for ad valorem tax purposes and who is licensed or certified as a mass appraiser.

(17) 'Non-complex residential property appraisal' means one in which the property to be appraised, the form of ownership, and market conditions are those which are typically found in the subject market.

(18) 'Person' means an individual, corporation, partnership, or association, foreign and domestic./

Amend the bill further, Section 40-60-20 page 33, beginning on line 28 by deleting item (18) and inserting:

/ (19) 'Real estate' means an identified parcel or tract of land including improvements, if any./

Amend the bill further, Section 40-60-20 page 33, beginning on line 31 by deleting item (19) and inserting:

/ (20) 'Real estate appraisal activity' means the act or process of valuing real estate or real property and preparing an appraisal report./

Amend the bill further, Section 40-60-20 page 33, immediately after line 33 by inserting:

/ (21) 'Real property' means the interests, benefits, and rights inherent in the ownership of real estate./

Amend the bill further, Section 40-60-20 beginning on page 33, line 34 by deleting items (20) through (24) and inserting:

/ (22) 'Residential appraisal' is an appraisal of a vacant or improved parcel of land that is devoted to or available for use as a one-to-four family abode, including, but not limited to, a single family home, apartment, or rooming house.

(23) 'Specialized services' means services other than independent appraisal assignments which are performed by an appraiser. Specialized services may include marketing studies, financing studies, and feasibility studies, valuations, analyses, opinions, and conclusions given in connection with activities, including, but not limited to, real estate brokerage, mortgage banking, real estate counseling, and real estate tax counseling.

(24) 'Standards of professional appraisal practice' or 'USPAP' means the Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal Standards Board of the Appraisal Foundation and adopted by the board.

(25) 'State certified general appraiser' means an appraiser authorized to engage in the appraisal of all types of real property.

(26) 'State certified general mass appraiser' means an appraiser authorized to engage in all types of real estate mass appraisal activity for ad valorem purposes./

Amend the bill further, Section 40-60-20(25) page 34, line 12 by deleting /(25)/ and inserting /(27)/ and on line 14 after /complexity/ by inserting /and nonresidential appraisals with a transaction value less than two hundred fifty thousand dollars/ so when amended Section 40-60-20(25) reads:

/ (27) 'State certified residential appraiser' means an appraiser authorized to engage in the appraisal of one to four residential units without regard to transaction value or complexity and nonresidential appraisals with a transaction value less than two hundred fifty thousand dollars./

Amend the bill further, Section 40-60-20(26) page 34, line 15 by deleting /(26)/ and inserting /(28)/; on line 16 by deleting /any/; and on line 17 after /complexity/ by inserting /and nonresidential appraisals with a transaction value less than two hundred fifty thousand dollars/ so when amend Section 40-60-20(26) reads:

/ (28) 'State certified residential mass appraiser' means an appraiser authorized to engage in the mass appraisal of any one to four residential units without regard to value or complexity and nonresidential appraisals with a transaction value less than two hundred fifty thousand dollars./

Amend the bill further, Section 40-60-20(27) page 34, line 18 by deleting /(27)/ and inserting /(29)/; on line 21 after /units/ by inserting /and nonresidential appraisals/ so when amended, Section 40-60-20(27) reads:

/ (29) 'State licensed appraiser' means an appraiser authorized to engage in the appraisal of non-complex one to four residential units having a transaction value less than one million dollars and complex one to four residential units and nonresidential appraisal having a transaction value less than two hundred fifty thousand dollars./

Amend the bill further, Section 40-60-20(28) page 34, line 23, by deleting /(28)/ and inserting /(30)/; line 25 before /value/ by inserting /transaction/; line 26 after /units/ by inserting /and nonresidential appraisals/; and line 26 before /value/ by inserting /transaction/ so when amended Section 40-60-20(28) reads:

/ (30) 'State licensed mass appraiser' means an appraiser authorized to engage in the mass appraisal of noncomplex one to four residential units having a transaction value less than one million dollars and complex one to four residential units and nonresidential appraisals having a transaction value less than two hundred fifty thousand dollars./

Amend the bill further, Section 40-60-20 page 34, beginning on line 28 by deleting items (29) and (30) and inserting:

/ (31) 'Timberland' means forest land that is producing, or is capable of producing, timber as a crop.

(32) 'Valuation' means an estimate of the value of real estate or real property. /

Amend the bill further, Section 40-60-100(2) page 36 line 24 after /licensed/ by deleting /real estate/ so when amended section 40-60-100(2) reads:

/ (2) To qualify as a state licensed appraiser, an applicant must:

(a) furnish evidence that he has successfully completed within the past five years at least ninety hours of courses approved by the board;

(b) demonstrate two thousand hours of appraisal experience since January 1, 1992, but in not less than twenty-four months including, but not limited to, fee and staff appraisal, ad valorem tax appraisal not to exceed forty percent of the total hours claimed, review appraisal, appraisal analysis, highest and best use analysis, and feasibility analysis/study. The verification for experience credit claimed by an applicant must be by affidavit on forms prescribed by the board;

(c) pass an examination approved by the board. The only prerequisite to sit for the examination is completion of the educational requirements./

Amend the bill further, Section 40-60-100(3) page 36, line 40 after /residential/ by deleting /real estate/ so when amended Section 40-60-100(3) reads:

/ (3) To qualify as a state certified residential appraiser, an applicant must:

(a) furnish evidence that the applicant has successfully completed within the past five years at least one hundred twenty classroom hours of courses approved by the board;

(b) demonstrate two thousand five hundred hours of appraisal experience since January 1, 1992, but in not less than twenty-four months. Experience may include, but is not limited to, fee and staff appraisal, ad valorem tax appraisal not to exceed forty percent of the total hours claimed, review appraisal, appraisal analysis, highest and best use analysis, and feasibility analysis/study. The verification for experience credit claimed by an applicant must be by affidavit on forms prescribed by the board;

(c) pass an examination approved by the board. The only prerequisite to sit for the examination is completion of the educational requirements. /

Amend the bill further, Section 40-60-100(4) page 37, line 15 after /general/ by deleting /real estate/ so when amended Section 40-60-100(4) reads:

/ (4) To qualify as a state certified general appraiser an applicant must:

(a) furnish evidence that the applicant has successfully completed within the past five years at least one hundred eighty hours of courses approved by the board;

(b) demonstrate three thousand hours of appraisal experience since January 1, 1992, but in not less than thirty months and of which at least fifty percent must be in non-residential appraisal work. Experience may include, but is not limited to, fee and staff appraisal, ad valorem tax appraisal not to exceed forty percent of the total hours claimed, review appraisal, appraisal analysis, highest and best use analysis, and feasibility analysis/study. The verification for experience credit claimed by an applicant must be by affidavit on forms prescribed by the board;

(c) pass an examination approved by the board. The only prerequisite to sit for the examination is completion of the educational requirements;

(d) the qualifications for licensed mass appraiser, certified mass appraiser, or certified general mass appraiser are identical to those enumerated in this chapter for the comparable levels of licensed appraiser, certified residential appraiser, and certified general appraiser with the exception that one hundred percent of the required experience hours for the mass appraiser designations may be in the area of mass appraisals. /

Amend the bill, further, Section 40-60-150(C)(3) page 43, line 8 after /writing/ by inserting /within thirty days/ so when amended Section 40-60-150(C)(3) reads:

/ (3) The board shall render a decision and shall serve notice, in writing within thirty days, of the board's decision to the applicant or appraiser charged. The board also shall state in the notice the date the ruling or decision becomes effective. /

Renumber sections to conform.

Amend totals and title to conform.

HARRY F. CATO, for Committee.

TO AMEND TITLE 40, CHAPTER 60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF REAL ESTATE APPRAISERS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL BOARDS UNDER THE ADMINISTRATION OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF REAL ESTATE APPRAISERS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Title 40, Chapter 60 of the 1976 Code is amended to read:

SECTION 40-60-10. This chapter may be cited as the "South Carolina Real Estate Appraiser Registration, License, 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 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) "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.

(10) "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.

(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 individuals, corporations, partnerships, or associations, foreign and domestic.

(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, opinions, and conclusions given in connection with activities such as real estate brokerage, mortgage banking, real estate counseling, and real estate tax counseling.

(17) "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.

(18) "State" includes any state, district, territory, possession, or province of the United States or Canada.

(19) "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.

(20) "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.

(21) "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.

(22) "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.

(23) "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.

(24) "Valuation" means an estimate of the value of real estate or real property.

(25) "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.

(26) "Timberland" means forest land that is producing, or is capable of producing, timber as a crop.

(27) "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.

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.

SECTION 40-60-45. A real estate appraiser registered, licensed, or certified pursuant to this chapter is not required for real- estate related financial transactions exempt from the appraisal requirement under the regulations of federal banking agencies.

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.

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 board 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 board 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 40-60-90 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;

(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.

(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.

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 these 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 fees relative to the review, approval, or regulation of schools, organizations, associations, institutions, or instructors offering the education courses required by this chapter.

(C) The board may deny, reprimand, fine, suspend, or revoke the approval of an instructor or school, organization, association, institution, or other educational provider if, after a hearing held in accordance with the South Carolina Administrative Procedures Act, the board finds that the applicant, instructor, or educational provider has violated or failed to satisfy the provisions of this chapter or the regulations and guidelines established under this chapter.

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 chairman of the board or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing, and Regulation, 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 board and, at the discretion of the board, the nonresident applicant must comply with additional requirements specified by the board.

(D) 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;

(2) the appraiser's business is of a temporary nature; and

(3) the appraiser enrolls 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 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 board.

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.

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.

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, or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing, and Regulation, 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 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 chairman of the board, the board, any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing, and Regulation, or the respondent may apply to an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 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 board 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 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, review by the respondent after the service of a notice of hearing, or an appeal of a decision by the board to an administrative law judge as provided under Article 5 of Chapter 23 of Title 1. 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 board shall maintain a public docket or record, in which the board 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 a 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 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 chairman of the board or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing, and Regulation is considered to be the agent for the appraiser or applicant for the purposes of this section, and service upon the chairman of the board or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing, and Regulation is considered service upon the appraiser or applicant.

(D) A decision by the board to revoke or suspend a registration, license, or certification or to restrict, limit, or otherwise discipline a 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 an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 upon petition filed by the registration, license, or certification holder within thirty days from the date of delivery of the board's decision to the registration, license, or certification holder. A copy of the petition must be served upon the chairman of the board or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing, and Regulation.

(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 review by an administrative law judge as provided under Article 5 of Chapter 23 of Title 1.

(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, certification, or registration.

SECTION 40-60-180. The board shall have the authority to exclude all persons during the board's or the staff of the board's:

(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 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 before an administrative law judge as provided under Article 5 of Chapter 23 of Title 1.

(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 40-60-2. This chapter may be cited as the 'South Carolina Real Estate Appraiser License and Certification Act'.

Section 40-60-5. Unless otherwise provided for in this chapter, Article 1, Chapter 1 of Title 40 applies to real estate appraisers; however, if there is a conflict between this chapter and Article 1, Chapter 1 of Title 40, the provisions of this chapter control.

Section 40-60-10. (A)There is created the South Carolina Real Estate Appraisers Board under the administration of the Department of Labor, Licensing and Regulation. The purpose of this board is to regulate the real estate appraisal industry so as to protect the public's interest regarding real estate appraisal transactions.

(B) The South Carolina Real Estate Appraisers Board consists of seven members who must be residents of this State and appointed by the Governor with the advice and consent of the Senate with consideration given to appropriate geographic representation and to areas of appraisal expertise as follows:

(1) 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.

(2) One member must be a licensed real estate broker who is not a real estate appraiser.

(3) 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.

(4) Four members must be licensed or certified appraisers, actively engaged in real estate appraisal for at least three years, at least two of whom must be certified general appraisers.

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.

(C) Board members from the general public may be nominated by an individual, group, or association and must be appointed by the Governor in accordance with Section 40-1-45.

(D) Members shall serve terms of 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 for the unexpired portion of the term.

(E) The board annually shall elect from its total membership a chairman, vice-chairman, and other officers the board determines necessary. The board may adopt an official seal and shall adopt rules and procedures reasonably necessary for the performance of its duties and the governance of its operations and proceedings.

(F) 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.

(G) Members of the board are entitled to per diem, subsistence, and mileage as is provided by law for state boards, committees, and commissions.

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 prepared by an appraiser as to the nature, quality, value, or utility of, or specified interests in, identified real estate as of a specified date, for or in expectation of compensation, fee, or other consideration.

(3) 'Appraisal assignment' or 'valuation assignment' means an engagement for which an appraiser is employed or retained to act, or would be perceived by third parties or the public as acting, as a disinterested third party in rendering an unbiased analysis, opinion, or conclusion that estimates the value of real estate.

(4) 'Appraisal Foundation' means the Appraisal Foundation established on November 30, 1987, as a not-for-profit corporation under the laws of Illinois, containing the Appraisal Standards Board, Appraiser Qualifications Board, a board of trustees, and other advisory bodies.

(5) '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 estate or real property is considered to be an oral appraisal report.

(6) 'Appraisal subcommittee' means the designees of the heads of the federal financial institutions regulatory agencies established by the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. Section 3301, et seq.), as amended, as well as the secretary of the Department of Housing and Urban Development, or his designee, under the Department of Housing and Urban Development Reform Act of 1989 (12 U.S.C. Section 1708(e)).

(7) 'Appraiser' means a person who holds a permit, license, or certification issued by the board that allows the person to appraise real property.

(8) 'Appraiser apprentice' means an individual authorized by permit to assist a licensed or certified appraiser in the performance of an appraisal if the apprentice is actively and personally supervised by the licensed or certified appraiser.

(9) 'Board' means the South Carolina Real Estate Appraisers Board established pursuant to the provisions of this chapter.

(10) 'Complex residential property appraisal' means one in which the property to be appraised, the form of ownership, or market conditions are atypical.

(11) 'Evaluation' means an analysis, opinion, or conclusion that relates to the nature, quality, or utility of identified real estate and does not estimate value.

(12) 'Federally-related transaction' means any real estate-related financial transaction which a federal financial institution regulatory agency engages in, contracts for, or regulates.

(13) 'Market analysis' means a study of real estate market conditions for a specific type of property.

(14) 'Mass appraisal' means the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing.

(15) 'Mass appraiser' means any appraiser who is employed in the office of a tax assessor to appraise real property for ad valorem tax purposes and who is licensed or certified as a mass appraiser.

(16) 'Non-complex residential property appraisal' means one in which the property to be appraised, the form of ownership, and market conditions are those which are typically found in the subject market.

(17) 'Person' means an individual, corporation, partnership, or association, foreign and domestic.

(18) 'Real estate' or 'real property' means an identified parcel of land, including improvements, as well as interests, benefits, and rights inherent in ownership of the parcel.

(19) 'Real estate appraisal activity' means the act or process of valuing real estate or real property and preparing an appraisal report.

(20) 'Residential appraisal' is an appraisal of a vacant or improved parcel of land that is devoted to or available for use as a one-to-four family abode, including, but not limited to, a single family home, apartment, or rooming house.

(21) 'Specialized services' means services other than independent appraisal assignments which are performed by an appraiser. Specialized services may include marketing studies, financing studies, and feasibility studies, valuations, analyses, opinions, and conclusions given in connection with activities, including, but not limited to, real estate brokerage, mortgage banking, real estate counseling, and real estate tax counseling.

(22) 'Standards of professional appraisal practice' or 'USPAP' means the Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal Standards Board of the Appraisal Foundation and adopted by the board.

(23) 'State certified general appraiser' means an appraiser authorized to engage in the appraisal of all types of real property.

(24) 'State certified general mass appraiser' means an appraiser authorized to engage in all types of real estate mass appraisal activity for ad valorem purposes.

(25) 'State certified residential appraiser' means an appraiser authorized to engage in the appraisal of one to four residential units without regard to transaction value or complexity.

(26) 'State certified residential mass appraiser' means an appraiser authorized to engage in the mass appraisal of any one to four residential units without regard to value or complexity.

(27) 'State licensed appraiser' means an appraiser authorized to engage in the appraisal of non-complex one to four residential units having a transaction value less than one million dollars and complex one to four residential units having a transaction value less than two hundred fifty thousand dollars.

(28) 'State licensed mass appraiser' means an appraiser authorized to engage in the mass appraisal of non-complex one to four residential units having a value less than one million dollars and complex one to four residential units having a value less than two hundred fifty thousand dollars.

(29) 'Timberland' means forest land that is producing, or is capable of producing, timber as a crop.

(30) 'Valuation' means an estimate of the value of real estate or real property.

Section 40-60-30. It is unlawful for an individual to assume or use a title, designation, or abbreviation likely to create the impression that the person is a real estate appraiser or to engage in appraisal activity or advertise as an appraiser without a valid license issued by the department.

Section 40-60-50. The Department of Labor, Licensing and Regulation shall provide all administrative, fiscal, investigative, inspection, clerical, secretarial, and license renewal operations and activities of the board in accordance with Section 40-1-50.

Section 40-60-60. (A) The board shall set general policy with regard to administering and enforcing this chapter and regulations promulgated under this chapter. Powers and duties include, but are not limited to:

(1) determining the standards and qualifications for issuance of permits, licenses, and certifications;

(2) conducting disciplinary hearings on alleged violations of this chapter and regulations promulgated under this chapter and deciding disciplinary actions as provided in this chapter for those found to be in violation;

(3) recommending changes in legislation and promulgating regulations pursuant to this chapter;

(4) approving and regulating educational courses, providers, and instructors;

(5) establishing standards for real estate appraisals consistent with the standards recognized by the Appraisal Standards Board.

Section 40-60-70. (A) Fees relevant to the licensure and regulation of real estate appraisers must be established in regulation and in accordance with the department's procedures for establishing initial fees, for assessing, collecting, and adjusting fees, and for the development and analysis of fee structures as provided for in Section 40-1-50(D).

(B) Application and license fees are payable to the department in advance and must accompany an examination application or a license application. Initial fees for exam, permit, license, or certificate must be paid by certified funds. Fees are nonrefundable.

(C) The board must periodically transmit to the appraisal subcommittee as defined in Section 40-60-20(6), 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.

Section 40-60-80. To qualify as an appraiser, an applicant must:

(1) have attained the age of eighteen years;

(2) have graduated from high school or hold a certificate of equivalency;

(3) submit proof of completion of qualifying education and, if applicable, experience requirements as specified in this chapter;

(4) submit certificates of licensure from all jurisdictions where presently or previously certified;

(5) pass an examination, if applicable. An 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 40-60-90. An application for examination, permit, licensure, or certification must be made in writing on a form prescribed by the department.

Section 40-60-100. In addition to the requirements of Section 40-60-80, an applicant for a permit, license, or certification must provide proof of having met the following educational and applicable experience requirements:

(1) To qualify as an appraiser apprentice, an applicant must:

(a) furnish evidence that the applicant will be supervised by an appraiser who is licensed or certified by the board;

(b) furnish evidence that the applicant has successfully completed within the past five years at least seventy-five classroom hours of courses approved by the board.

(2) To qualify as a state licensed real estate appraiser, an applicant must:

(a) furnish evidence that he has successfully completed within the past five years at least ninety hours of courses approved by the board;

(b) demonstrate two thousand hours of appraisal experience since January 1, 1992, but in not less than twenty-four months including, but not limited to, fee and staff appraisal, ad valorem tax appraisal not to exceed forty percent of the total hours claimed, review appraisal, appraisal analysis, highest and best use analysis, and feasibility analysis/study. The verification for experience credit claimed by an applicant must be by affidavit on forms prescribed by the board;

(c) pass an examination approved by the board. The only prerequisite to sit for the examination is completion of the educational requirements.

(3) To qualify as a state certified residential real estate appraiser, an applicant must:

(a) furnish evidence that the applicant has successfully completed within the past five years at least one hundred twenty classroom hours of courses approved by the board;

(b) demonstrate two thousand five hundred hours of appraisal experience since January 1, 1992, but in not less than twenty-four months. Experience may include, but is not limited to, fee and staff appraisal, ad valorem tax appraisal not to exceed forty percent of the total hours claimed, review appraisal, appraisal analysis, highest and best use analysis, and feasibility analysis/study. The verification for experience credit claimed by an applicant must be by affidavit on forms prescribed by the board;

(c) pass an examination approved by the board. The only prerequisite to sit for the examination is completion of the educational requirements.

(4) To qualify as a state certified general real estate appraiser an applicant must:

(a) furnish evidence that the applicant has successfully completed within the past five years at least one hundred eighty hours of courses approved by the board;

(b) demonstrate three thousand hours of appraisal experience since January 1, 1992, but in not less than thirty months and of which at least fifty percent must be in non-residential appraisal work. Experience may include, but is not limited to, fee and staff appraisal, ad valorem tax appraisal not to exceed forty percent of the total hours claimed, review appraisal, appraisal analysis, highest and best use analysis, and feasibility analysis/study. The verification for experience credit claimed by an applicant must be by affidavit on forms prescribed by the board;

(c) pass an examination approved by the board. The only prerequisite to sit for the examination is completion of the educational requirements;

(d) the qualifications for licensed mass appraiser, certified mass appraiser, or certified general mass appraiser are identical to those enumerated in this chapter for the comparable levels of licensed appraiser, certified residential appraiser, and certified general appraiser with the exception that one hundred percent of the required experience hours for the mass appraiser designations may be in the area of mass appraisals.

Section 40-60-110. (A) The board shall prescribe the form of a permit, license, and certificate containing an identification number that the appraiser shall use when signing appraisal reports. When an appraiser advertises or executes contracts or other instruments, the appraiser's name, appraiser classification, and number assigned by the board must be printed or typed adjacent to the appraiser's signature.

(B) The appraiser apprentice performing fee appraisal work or seeking to establish experience for a state licensed or state certified designation must:

(1) perform appraisal assignments only under the direct supervision of a state licensed or certified appraiser;

(2) maintain a log containing the following for each assignment:

(a) date of appraisal;

(b) address of appraised property;

(c) description of work performed;

(d) number of points claimed for the assignment;

(e) name and address of the client; and

(f) name and license or certification number of supervising appraiser;

(3) sign all appraisal reports for which the appraiser acts as primary appraiser;

(4) maintain complete copies of all appraisals.

(C) The appraiser apprentice performing mass appraisal work seeking to establish credit for a licensed or certified mass appraiser designation must:

(1) perform appraisal assignments only under the direct supervision of a state licensed or certified appraiser, mass or otherwise;

(2) maintain a log on a form provided by the board.

(D) The appraiser supervising an apprentice fee appraiser must:

(1) personally review appraisal reports prepared by the apprentice and sign and certify the report as being independently and impartially prepared in compliance with the USPAP and applicable statutory requirements;

(2) provide a copy of final appraisal documents to any participating apprentice.

(E) the appraiser supervising an appraiser apprentice performing mass appraisal work must personally review and approve all work performed by the apprentice to ensure that the work is prepared in compliance with the USPAP and applicable statutory requirements.

(F) The board may issue to an appraiser who is licensed or certified in another state a temporary permit, which is only effective for one specific appraisal assignment. If the appraisal is not completed within six months from the date of the permit, the board must grant an extension upon request from the appraiser. The appraiser shall place the following notation on all statements of qualification, contracts, or other instruments: 'Practicing in the State of South Carolina under Temporary Permit No...'.

(G) Licenses, certifications, and apprentice permits expire annually on June 30. As a condition of renewal, an appraiser shall provide evidence satisfactory to the board of having met the continuing education requirements established by this chapter. An appraiser apprentice may only renew the annual apprentice permit five times.

(H) Permits, licenses, or certifications not renewed by date of expiration are no longer valid but may be reinstated within twelve months after expiration upon proper application, payment of renewal fee, a late penalty, as established in the fee schedule, and proof of having met continuing education requirements as prescribed.

(I) A permit, license, or certification which has expired and has not been reinstated by the last day of the 12th month following expiration must be canceled.

(J) A license or certification may be placed on inactive status by informing the board in writing and must be renewed in the same manner as provided for active renewal.

(K) A fee appraiser must retain for five years the original or exact copy of each appraisal report prepared or signed by the appraiser and all supporting data assembled and formulated by the appraiser in preparing each appraisal report. The five-year period for retention of records is applicable to each engagement of the services of the appraiser and commences on the date of delivery of each appraisal report to the client.

(L) An appraiser who has had a permit, license, or certification revoked by the board must not be issued a new permit, license, or certification within two years after the date of the revocation or at any time thereafter except upon an affirmative vote of a majority of the board. A person seeking a permit, license, or certification after revocation shall:

(1) present evidence of completion of the continuing education required by this chapter;

(2) pass the applicable examination; and

(3) meet any other qualifications and conditions which apply to individuals applying for a license who have not been previously licensed.

Section 40-60-120. (A) The board may enter into reciprocal agreements with appraiser regulatory authorities of other jurisdictions which provide for waivers of education, examination, and experience requirements if the board considers the education and examination requirements of another jurisdiction to be substantially equivalent to the requirements of this chapter.

(B) A non-resident applicant shall file an irrevocable consent that suits and actions may be commenced against the applicant in the proper court in a judicial circuit of the state in which a cause of action may arise or in which the plaintiff may reside by the service of process or pleading, authorized by the laws of the state, on the Director of the Department of Labor, Licensing and Regulation. The consent shall stipulate that the service of process or pleading must be taken and held in all courts to be as valid and binding as if service had been made upon the applicant in South Carolina. If the process or pleadings mentioned in this chapter are served upon the Director of the Department of Labor, Licensing and Regulation, it must be by duplicate copies, one of which must be filed in the office of the board and the other immediately forwarded by the board by registered or certified mail to the applicant against whom the process or pleadings are directed, at the last known address of the applicant as shown by the records of the board.

Section 40-60-130. (A) For renewal of an active permit, license, or certification, an appraiser shall present evidence of satisfactory completion by the applicant of fourteen classroom hours of instruction in courses or seminars which have been approved by the board for each year of the renewal period.

(B) A permit, license, or certification of an appraiser that has been suspended may not be reissued until the applicant presents evidence of completion of the continuing education required by this section.

(C) An appraiser who fails to complete the continuing education requirements by the date of license renewal may renew by submitting applicable fees but must immediately be placed on inactive status and may not engage in appraising while on inactive status. The appraiser seeking to activate shall pay the applicable fee and meet the continuing education required by this section.

(D) Appraisers may request to receive credit for continuing education for a course that has not been pre-approved by the board or the Appraisers Qualifications Board. However, credit may be granted only if the appraiser provides satisfactory proof of course qualification 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.

(E) The following are exempt from the continuing education requirement:

(1) instructors of approved courses if they request in writing continuing education credit for time spent teaching or developing approved continuing education courses;

(2) non-resident appraisers who have successfully satisfied the continuing education requirements of the jurisdiction of residence.

Section 40-60-140. (A) In addition to Section 40-1-110, the board may deny licensure to an applicant or may take disciplinary action against an appraiser who:

(1) fails to meet the minimum qualifications for a permit, license, or certification established by or pursuant to this chapter;

(2) procures or attempts to procure a permit, license, or certification by knowingly making a false statement, submitting false information, or making a material misrepresentation in an application filed with the board, or procures or attempts to procure a permit, license, or certification through fraud or misrepresentation;

(3) performs an act in the practice of real estate appraising which constitutes dishonest, fraudulent, or improper conduct;

(4) engages in the business of real estate appraising under an assumed or fictitious name;

(5) pays a finder's fee or a referral fee in connection with an appraisal of real estate or real property in this State;

(6) makes 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;

(7) violates the confidential nature of governmental records to which an appraiser gained access through employment or engagement as an appraiser by a governmental agency;

(8) violates any of the standards for the development or communication of real estate appraisals as promulgated by the board in regulation;

(9) fails or refuses without good cause to exercise reasonable diligence in developing an appraisal, preparing an appraisal report, or communicating an appraisal;

(10) exhibits negligence or incompetence in developing an appraisal, in preparing an appraisal report, or in communicating an appraisal;

(11) accepts an independent appraisal assignment or valuation 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;

(12) fails to retain records in accordance with Section 40-60-110;

(13) fails upon reasonable request of an investigator of the board to make all records required to be maintained under this chapter available to the board for inspection and copying by the board or fails to appear upon reasonable request for an interview with an investigator of the board;

(14) demonstrates bad faith, dishonesty, untrustworthiness, or incompetency to act as an appraiser in a manner to endanger the interests of the public;

(15) performs or attempts to perform any real estate appraisal activity on property located in another state without first having complied with that state's laws regarding real estate appraisal activity;

(16) performs or attempts to perform, if licensed or certified as a mass appraiser, any appraisal other than those for ad valorem tax purposes and directly related to the assessor office employment duties of the mass appraiser;

(17) has been convicted of a felony or a crime involving moral turpitude or pleaded guilty or nolo contendere to any such offense;

(18) fails to report to the department in writing by certified mail, within ten days, notice of conviction of a crime provided for in item (17);

(19) has had a license to practice a regulated profession or occupation in this State, another state or jurisdiction canceled, revoked, suspended, or otherwise disciplined;

(20) issues a check to the board which is returned for insufficient funds or closed account;

(21) fails to comply with or obey a final order of the board;

(22) violates any provision of this chapter or any regulation promulgated under this chapter.

Section 40-60-150. (A) Investigations must be conducted in accordance with Section 40-1-80.

(B) A restraining order must be obtained in accordance with Section 40-1-100.

(C)(1) If the department has reason to believe that a violation of this chapter has occurred, an investigation must be initiated within thirty days.

(2) A hearing on the charges must be at the time and place designated by the board and must be conducted in accordance with the Administrative Procedures Act.

(3) The board shall render a decision and shall serve notice, in writing, of the board's decision to the applicant or appraiser charged. The board also shall state in the notice the date the ruling or decision becomes effective.

(4) The department shall maintain a public docket or other permanent record in which all orders, consent orders, or stipulated settlements must be recorded.

(D) An appraiser's license may voluntarily be surrendered in accordance with Section 40-1-150.

(E)(1) The board may impose disciplinary action in accordance with Section 40-1-120.

(2) Upon determination by the board that one or more of the grounds for discipline exists, as provided for in Section 40-1-110 or Section 40-60-140, the board may also impose a fine of not less than one hundred dollars or more than one thousand dollars for each violation.

(3) Nothing in this section prevents a licensee from voluntarily entering into a consent order with the board wherein violations are not contested and sanctions are accepted.

(F) If a complaint filed with the board involves an appraisal report which varies from a sales, lease, or exchange price, the board may decline to conduct an investigation.

(G) The board is prohibited from conduction an investigation based solely on a dispute over the value of property for ad valorem tax purposes.

(H) No stay or supersedeas may be granted for more than six months pending appeal from a decision by the board to revoke, suspend, or otherwise restrict a permit, license, or certification.

(I) A person aggrieved by a final action of the board may seek review of the decision in accordance with Section 40-1-160.

Section 40-60-160. In addition to other remedies provided for in this chapter or Chapter 1, Title 40, the board in accordance with Section 40-1-100 may issue a cease and desist order or may petition an administrative law judge for a temporary restraining order or other equitable relief to enjoin a violation of this chapter.

Section 40-60-170. (A) The board shall establish and publish standards relevant to the approval and conduct of education required by this chapter.

(B) The department shall review, approve, and regulate educational courses required by this chapter and providers and instructors of these courses including, but not limited to, accredited colleges, universities, private business entities, organizations, schools, associations, individuals, and institutions.

(C) The department may deny, reprimand, fine, suspend, or revoke the approval of an educational provider or instructor if the department finds that the education provider or instructor has violated or failed to satisfy the provisions of this chapter or the regulations and standards promulgated pursuant to this chapter.

(D) Application by providers seeking approval to offer and conduct educational instruction or application by instructors must be made on a form prescribed by the department and accompanied by applicable fees not less than sixty days before a course offering and must be approved by the department before the commencement of any instruction. Approval of providers, courses, or instructors by the Appraisal Qualifications Board must be recognized by the board without submitting further application or fee to the department.

(E) If an application for provider, instructor, or course is not approved, the reason must be detailed and the applicant must be given thirty days to respond.

(F) Upon approval, certificates must be issued to providers, courses, and instructors to be renewed biennially.

(G) Approved courses must be taught by approved instructors who are qualified and have demonstrated knowledge of the subject matter to be taught as well as the ability to teach.

(H) Approved instructors shall attend annual instructor development workshops sponsored by the department whenever possible or provide evidence of equivalent hours of continuing education which increases their knowledge of either the subject content in their area of expertise or their teaching techniques.

Section 40-60-180. A person found in violation of this chapter or regulations promulgated under this chapter may be required to pay costs associated with the investigation and prosecution of the case in accordance with Section 40-1-170.

Section 40-60-190. Costs and fines imposed pursuant to this chapter must be paid in accordance with and are subject to the collection and enforcement provisions of Section 40-1-180.

Section 40-60-200. Investigations and proceedings conducted under this chapter are confidential, and all communications are privileged as provided for in Section 40-1-190.

Section 40-60-210. (A) It is unlawful for a person, directly or indirectly, to engage in or conduct the business of, or to advertise or hold himself out as engaging in or conducting the business of, or to act in the capacity of, an appraiser within this State without first obtaining a permit, license, or certification as provided in this chapter.

(B) A person acting as an appraiser within the meaning of this chapter without a permit, license, or certification is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than six months, or both.

(C) An appraiser who fails to renew a license or certification and who continues to engage in appraisal activities or business is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than six months, or both.

Section 40-60-220. A civil action may be brought for violations of this chapter as provided for violations of Title 40, Chapter 1, Article 1 in accordance with Section 40-1-210.

Section 40-60-230. This chapter does not apply to:

(1) a real estate licensee licensed in accordance with Chapter 57 may only perform a market analysis or give an opinion as to the price of real estate on the condition that the market analysis or opinion is not referred to as an appraisal. Before performing a market analysis, the real estate licensee must disclose to the requesting party: 'This market analysis may not be used for the purposes of obtaining financing in a federally-related transaction';

(2) a forester registered pursuant to Chapter 27 of Title 48 who appraises or evaluates standing or growing timber or timberland located in this State and issues an appraisal or evaluation on the timber or timberland; however, when an appraisal or evaluation is to be used in a federally-related transaction, the registered forester must be licensed or certified under this chapter if required by federal law;

(3) a real estate appraisal or evaluation for real estate related financial transactions exempt from the appraisal requirements under the regulations of federal banking agencies.

Section 40-60-240. The board shall adopt the standards, and amendments to these standards, of professional appraisal practice, as promulgated by the Appraisal Standards Board of the Appraisal Foundation. All appraiser apprentices and state licensed and certified appraisers shall conform their professional conduct to these standards of professional appraisal practice.

Section 40-60-250. (A) The board is authorized to waive or to modify any experience, examination, or education requirements established for appraisers in this chapter in order to bring those requirements into conformity with any requirements established by federal statutes and regulations relating to state licensure of appraisers as established by federal financial institutions regulatory agencies, as defined in Title XI of the U. S. Code, or the Department of Housing and Urban Development, or other such similar agencies.

(B) Effective July 1, 2000, a person classified as a registered appraiser will automatically be classified as an apprentice appraiser.

Section 40-60-260. If a provision of this chapter or the application of a provision to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable."

SECTION 2. This act takes effect upon approval by the Governor.

This web page was last updated on Friday, June 26, 2009 at 3:09 P.M.