House File 464 - 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 2478HH 82 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, which 1 6 list shall be available for public inspection. 1 7 Sec. 2. Section 543D.17, subsection 1, paragraph f, Code 1 8 2007, is amended to read as follows: 1 9 f. Negligence,orincompetencein 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 2007, 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 2007, 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 purposes. 2 15 Providing a recommendation pursuant to this paragraph is not 2 16 subject to the uniform standards of professional appraisal 2 17 practice adopted by the appraisal foundation. 2 18 b. An individual who provides administrative services to a 2 19 certified real estate appraiser, such as taking photographs, 2 20 preparing charts, or typing reports, who is not an associate 2 21 real estate appraiser and who does not provide any assistance 2 22 in developing the analysis, valuation, opinions, or 2 23 conclusions associated with the appraisal assignment. 2 24 c. Unless otherwise required by federal, state, or local 2 25 law, rule, ordinance, or policy, an employee of any of the 2 26 following: 2 27 (1) The federal government. 2 28 (2) The state, or any agency, department, or political 2 29 subdivision of the state, except as provided for an employee 2 30 of the state department of transportation pursuant to section 2 31 543D.3. 2 32 (3) A financial institution as defined in section 535A.1. 2 33 (4) An insurance company authorized to transact the 2 34 business of insurance in this state. 2 35 2. An individual under subsection 1, paragraph "a", may 3 1 provide a recommendation of price or pricing of real estate if 3 2 rendered solely for the purpose of real estate taxation. 3 3 3. An employee under subsection 1, paragraph "c", shall 3 4 not provide appraisal services or complete an appraisal 3 5 assignment for anyone other than the person's employer unless 3 6 certified under this chapter. 3 7 Sec. 6. APPROPRIATION. There is appropriated from the 3 8 general fund of the state to the real estate appraiser 3 9 examining board for the fiscal year beginning July 1, 2007, 3 10 and ending June 30, 2008, the following amount, or so much 3 11 thereof as is necessary, to be used for the purpose 3 12 designated: 3 13 For the purpose of funding full=time equivalent positions 3 14 for enforcement of the provisions of chapter 543D: 3 15 .................................................. $ 150,000 3 16 EXPLANATION 3 17 This bill requires that any person who provides real estate 3 18 appraisal services in this state, for compensation, must 3 19 register with the board. The board shall maintain a list of 3 20 registrations at the board office, available for public 3 21 inspection. The bill provides, in new Code section 543D.20, a 3 22 list of persons who are not subject to the provisions of Code 3 23 chapter 543D. 3 24 The bill also prohibits an appraiser from acting with 3 25 advocacy or bias while involved in valuation assignments in 3 26 real property appraisal practice and imposes a penalty. 3 27 The bill appropriates $150,000 for the purpose of funding 3 28 staff positions to enforce these licensing provisions. 3 29 LSB 2478HH 82 3 30 jr:nh/je/5