House File 2272 - Introduced
HOUSE FILE
BY FORD
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the certification and registration of real
2 estate appraisers, providing a penalty, and making an
3 appropriation.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6293HH 81
6 jr/je/5
PAG LIN
1 1 Section 1. NEW SECTION. 543D.3A REGISTRATION REQUIRED.
1 2 A person engaged in the business or acting in the capacity
1 3 of a real estate appraiser for compensation within this state
1 4 shall register annually with the board. The board shall
1 5 maintain a list of registrations at the board office,
1 6 available for public inspection.
1 7 Sec. 2. Section 543D.17, subsection 1, paragraph f, Code
1 8 2005, is amended to read as follows:
1 9 f. Negligence, or incompetence in developing an appraisal,
1 10 in preparing an appraisal report, or in communicating an
1 11 appraisal, or acting with advocacy or bias while involved in
1 12 valuation assignments in real property appraisal practice.
1 13 Sec. 3. Section 543D.17, subsection 3, Code 2005, is
1 14 amended to read as follows:
1 15 3. Notwithstanding the limitations of section 272C.3,
1 16 subsection 2, paragraph "e", the board shall adopt a rule
1 17 providing for civil penalties in amounts and for the reasons
1 18 authorized by federal law where federal law requires the board
1 19 to have the authority to impose the civil penalties in order
1 20 to obtain or to retain the board's designation as a qualified
1 21 state appraiser certifying agency. An administrative penalty
1 22 imposed under this section shall not be more than one thousand
1 23 dollars in the case of a first violation and not more than
1 24 five thousand dollars for each second or subsequent violation.
1 25 All administrative penalties collected pursuant to this
1 26 chapter shall be deposited in the housing trust fund created
1 27 in section 16.181.
1 28 Sec. 4. Section 543D.17, Code 2005, is amended by adding
1 29 the following new subsection:
1 30 NEW SUBSECTION. 4. The board may investigate complaints
1 31 and initiate complaints against compensated real estate
1 32 appraisers who are not certified pursuant to this chapter and
1 33 may impose a penalty as provided in this chapter.
1 34 Sec. 5. NEW SECTION. 543D.20 EXCLUSIONS.
1 35 1. This chapter does not apply to any of the following:
2 1 a. An individual licensed under chapter 543B who does not
2 2 provide an appraisal, but who in the ordinary course of a real
2 3 estate brokerage business provides a recommendation of price
2 4 or pricing of real estate in connection with the listing of
2 5 property for sale or lease, or to assist a potential purchaser
2 6 or lessee in developing an offer to purchase or lease
2 7 property. No compensation, fee, or other consideration shall
2 8 be charged for such recommendation other than a real estate
2 9 commission or brokerage fee unless the recommendation is in
2 10 writing and includes a prominent disclosure stating that the
2 11 recommendation is not an appraisal, is intended only for the
2 12 benefit of the addressee in connection with the listing, sale,
2 13 lease, or purchase of real estate, and is not intended for any
2 14 other purpose, including, but not limited to, lending
2 15 purposes. Providing a recommendation pursuant to this
2 16 paragraph is not subject to the uniform standards of
2 17 professional appraisal practice adopted by the appraisal
2 18 foundation.
2 19 b. An individual who provides administrative services to a
2 20 certified real estate appraiser, such as taking photographs,
2 21 preparing charts, or typing reports, who is not an associate
2 22 real estate appraiser and who does not provide any assistance
2 23 in developing the analysis, valuation, opinions, or
2 24 conclusions associated with the appraisal assignment.
2 25 c. Unless otherwise required by federal, state, or local
2 26 law, rule, ordinance, or policy, an employee of any of the
2 27 following:
2 28 (1) The federal government.
2 29 (2) The state, or any agency, department, or political
2 30 subdivision of the state, except as provided for an employee
2 31 of the state department of transportation pursuant to section
2 32 543D.3.
2 33 (3) A financial institution as defined in section 535A.1.
2 34 (4) An insurance company authorized to transact the
2 35 business of insurance in this state.
3 1 2. An individual under subsection 1, paragraph "a", may
3 2 provide a recommendation of price or pricing of real estate if
3 3 rendered solely for the purpose of real estate taxation.
3 4 3. An employee under subsection 1, paragraph "c", shall
3 5 not provide appraisal services or complete an appraisal
3 6 assignment for anyone other than the person's employer unless
3 7 certified under this chapter.
3 8 Sec. 6. APPROPRIATION. There is appropriated from the
3 9 general fund of the state to the real estate appraiser
3 10 examining board for the fiscal year beginning July 1, 2006,
3 11 and ending June 30, 2007, the following amount, or so much
3 12 thereof as is necessary, to be used for the purpose
3 13 designated:
3 14 For the purpose of funding full=time equivalent positions
3 15 for enforcement of the provisions of chapter 543D:
3 16 .................................................. $ 150,000
3 17 EXPLANATION
3 18 This bill requires that any person who provides real estate
3 19 appraisal services in this state, for compensation, must
3 20 register with the board. The board shall maintain a list of
3 21 registrations at the board office, available for public
3 22 inspection. The bill provides, in new Code section 543D.20, a
3 23 list of persons who are not subject to the provisions of Code
3 24 chapter 543D.
3 25 The bill also prohibits an appraiser from acting with
3 26 advocacy or bias while involved in valuation assignments in
3 27 real property appraisal practice and imposes a penalty.
3 28 The bill appropriates $150,000 for the purpose of funding
3 29 staff positions to enforce these licensing provisions.
3 30 LSB 6293HH 81
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