Senate File 2373 - Introduced



                                       SENATE FILE       
                                       BY  COMMITTEE ON STATE GOVERNMENT

                                       (SUCCESSOR TO SF 2098)


    Passed Senate, Date               Passed House,  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 and providing a penalty.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5631SV 81
  5 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 biennially 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    A person who has registered but has not been certified
  1  8 under this chapter shall inform a client, prior to providing
  1  9 any appraisal service, that the person is not a certified real
  1 10 estate appraiser.  The board may investigate complaints
  1 11 against compensated real estate appraisers who are not
  1 12 certified pursuant to this chapter and may impose a penalty as
  1 13 provided in this chapter.
  1 14    Sec. 2.  Section 543D.17, subsection 1, paragraph f, Code
  1 15 2005, is amended to read as follows:
  1 16    f.  Negligence, or incompetence, or bias in developing an
  1 17 appraisal, in preparing an appraisal report, or in
  1 18 communicating an appraisal, or acting with bias while involved
  1 19 in valuation assignments in real property appraisal practice.
  1 20    Sec. 3.  Section 543D.17, subsection 3, Code 2005, is
  1 21 amended to read as follows:
  1 22    3.  Notwithstanding the limitations of section 272C.3,
  1 23 subsection 2, paragraph "e", the board shall adopt a rule
  1 24 providing for civil penalties in amounts and for the reasons
  1 25 authorized by federal law where federal law requires the board
  1 26 to have the authority to impose the civil penalties in order
  1 27 to obtain or to retain the board's designation as a qualified
  1 28 state appraiser certifying agency.  An administrative penalty
  1 29 imposed under this section shall not be more than one thousand
  1 30 dollars for each violation.  All administrative penalties
  1 31 collected pursuant to this chapter shall be deposited in the
  1 32 housing trust fund created in section 16.181.
  1 33    Sec. 4.  NEW SECTION.  543D.20  EXCLUSIONS.
  1 34    1.  This chapter does not apply to any of the following:
  1 35    a.  An individual licensed under chapter 543B.
  2  1    b.  An individual registered under chapter 535B.
  2  2    c.  An individual who provides administrative services to a
  2  3 certified real estate appraiser, such as taking photographs,
  2  4 preparing charts, or typing reports, who is not an associate
  2  5 real estate appraiser and who does not provide any assistance
  2  6 in developing the analysis, valuation, opinions, or
  2  7 conclusions associated with the appraisal assignment.
  2  8    d.  An employee of any of the following:
  2  9    (1)  The federal government.
  2 10    (2)  The state, or any agency, department, or political
  2 11 subdivision of the state, except as provided for an employee
  2 12 of the state department of transportation pursuant to section
  2 13 543D.3.
  2 14    (3)  A financial institution as defined in section 527.2.
  2 15    (4)  An insurance company authorized to transact the
  2 16 business of insurance in this state.
  2 17    (5)  A licensee or registrant under chapter 535B, 536, or
  2 18 536A.
  2 19    2.  An employee under subsection 1, paragraph "d", shall
  2 20 not provide appraisal services or complete an appraisal
  2 21 assignment for any person other than the person's employer
  2 22 unless the person is in compliance with this chapter.
  2 23                           EXPLANATION
  2 24    This bill requires that any person who provides real estate
  2 25 appraisal services in this state, for compensation, must
  2 26 register with the board.  The board shall maintain a list of
  2 27 registrations at the board office, available for public
  2 28 inspection.  The bill provides, in new Code section 543D.20, a
  2 29 list of persons who are not subject to the provisions of Code
  2 30 chapter 543D.
  2 31    The bill also prohibits an appraiser from acting with bias
  2 32 in developing an appraisal, preparing an appraisal report, or
  2 33 communicating an appraisal or while involved in valuation
  2 34 assignments in real property appraisal practice.  The bill
  2 35 limits any administrative penalties which may be imposed under
  3  1 Code chapter 543D to $1,000 for each violation.
  3  2 LSB 5631SV 81
  3  3 jr:nh/je/5