S.F. _____ H.F. _____ Section 1. Section 543D.1, Code 2021, is amended to read as 1 follows: 2 543D.1 Short title. 3 This chapter shall be known and may be cited as the “Iowa 4 Voluntary Appraisal Standards and Appraiser Certification Law” . 5 Sec. 2. Section 543D.2, Code 2021, is amended by adding the 6 following new subsections: 7 NEW SUBSECTION . 4A. “Appraisal review” means developing 8 and communicating an opinion under the uniform standards of 9 professional appraisal practice review standards regarding 10 the quality of an appraiser’s work product prepared as part 11 of an appraisal assignment. “Appraisal review” does not 12 include quality control solely to assure an appraisal report is 13 complete, or to correct grammatical, typographical, or similar 14 errors. 15 NEW SUBSECTION . 8A. “Federally related transaction” means 16 any financial transaction related to real estate which a 17 federal financial institutions regulatory agency engages in, 18 contracts for, or regulates, and which requires the services 19 of an appraiser pursuant to federally related transaction 20 regulations. 21 NEW SUBSECTION . 8B. “Federally related transaction 22 regulations” means regulations established by the comptroller 23 of the currency, the board of governors of the federal reserve 24 system, the federal deposit insurance corporation, or the 25 national credit union administration pursuant to sections 1112, 26 1113, and 1114 of Tit. XI of the federal Financial Institutions 27 Reform, Recovery, and Enforcement Act, 12 U.S.C. §3341 – 3343. 28 Sec. 3. Section 543D.2, subsection 9, Code 2021, is amended 29 to read as follows: 30 9. “Review appraiser” means a person who is responsible 31 for the administrative approval of the appraised value of 32 real property or assures that appraisal reports conform to 33 the requirements of law and policy, or that the value of real 34 property estimated by appraisers represents adequate security, 35 -1- LSB 1361XD (6) 89 jda/rn 1/ 7

S.F. _____ H.F. _____ fair market value, or other defined value conducting an 1 appraisal review . 2 Sec. 4. Section 543D.3, Code 2021, is amended to read as 3 follows: 4 543D.3 Purposes. 5 1. The purpose of this chapter is to establish standards 6 for real estate appraisals and a procedure for the mandatory 7 certification of real estate appraisers performing appraisals 8 for federally related transactions, the voluntary certification 9 of real estate appraisers performing appraisals not related to 10 federally related transactions, and the mandatory registration 11 of associate real estate appraisers. 12 1A. A person who performs an appraisal, other than an 13 appraisal review, for a federally related transaction as 14 it relates to real estate located in this state must be 15 a certified real estate appraiser under this chapter or a 16 registered associate real estate appraiser acting under the 17 direct supervision of a certified real estate appraiser. 18 2. A person who is not a certified real estate appraiser 19 under this chapter may appraise real estate for compensation if 20 certification is not required by this chapter or by federal or 21 state law, rule, or policy. However, an employee of the state 22 department of transportation whose duties include appraisals 23 of property pursuant to chapter 6B must be a certified real 24 estate appraiser under this chapter or a registered associate 25 real estate appraiser acting under the direct supervision 26 of a certified real estate appraiser. Notwithstanding this 27 subsection, in connection with the performance of an appraisal, 28 other than an appraisal review, of real estate located in this 29 state, the use of the title “certified real estate appraiser”, 30 “associate real estate appraiser”, or any other like title, 31 including a title that suggests an individual is certified 32 under the laws of this or another state, shall only be used 33 to refer to or by individuals who hold a certificate or 34 registration under this chapter. 35 -2- LSB 1361XD (6) 89 jda/rn 2/ 7

S.F. _____ H.F. _____ 3. An employee of the state department of transportation 1 whose duties include appraisals of property pursuant to chapter 2 6B must be a certified real estate appraiser under this chapter 3 or a registered associate real estate appraiser acting under 4 the direct supervision of a certified real estate appraiser. 5 Sec. 5. Section 543D.11, Code 2021, is amended to read as 6 follows: 7 543D.11 Certification by reciprocity. 8 1. If, in the determination by the board, another state 9 is deemed to have substantially equivalent certification 10 requirements, an applicant who is certified under the laws of 11 the other state may obtain a certificate as a certified real 12 estate appraiser upon terms and conditions as determined by the 13 board. 14 2. The board may recognize on a temporary basis the 15 certification or license of an appraiser issued by another 16 state, including where the property to be appraised is part of 17 a federally related transaction. An appraiser engaging in such 18 temporary practice shall register with the board, is subject to 19 the full regulatory jurisdiction of the board, and is governed 20 by the laws and rules administered by the board. 21 Sec. 6. Section 543D.15, subsection 1, Code 2021, is amended 22 to read as follows: 23 1. a. The term “certified real estate appraiser” title 24 “certified real estate appraiser” , “associate real estate 25 appraiser”, or any other like title shall only be used to refer 26 to individuals who hold the certificate or registration, as 27 applicable, and shall not be used in connection with or as part 28 of the name or signature of a firm, partnership, corporation, 29 or group, or in a manner that it may be interpreted as 30 referring to a firm, partnership, corporation, group, other 31 business entity, or anyone other than an individual holder of 32 the certificate or registration . 33 b. In connection with an appraisal assignment, other than 34 an appraisal review, performed on real estate located in this 35 -3- LSB 1361XD (6) 89 jda/rn 3/ 7

S.F. _____ H.F. _____ state, the title “certified real estate appraiser”, “associate 1 real estate appraiser”, or any other like title, including a 2 title that suggests an individual is licensed or certified 3 under the laws of this state or another state, shall only 4 be used to refer to individuals who hold a certificate or 5 registration under this chapter. 6 Sec. 7. Section 543D.20, subsection 5, Code 2021, is amended 7 to read as follows: 8 5. Persons who appraise real estate where certification is 9 not required by this chapter or by federal or state law, rule, 10 or policy, and who are not assisting a certified real estate 11 appraiser in the development or reporting of an appraisal 12 assignment that is required by this chapter , or by federal 13 or state law, rule, or policy to be performed by a certified 14 real estate appraiser, are not required to register with the 15 board. Notwithstanding this subsection, in connection with the 16 performance, or assistance in the performance, of an appraisal 17 other than an appraisal review, of real estate located in this 18 state, the use of the title “associate real estate appraiser” 19 or any other like title, including a title that suggests an 20 individual is an associate real estate appraiser under the laws 21 of this state or another state, shall only be used to refer to 22 individuals who hold a registration under this chapter. 23 Sec. 8. Section 543D.21, subsection 4, Code 2021, is amended 24 by adding the following new paragraph: 25 NEW PARAGRAPH . 0a. A violation of section 543D.3, 26 subsections 1A, 2, or 3. 27 Sec. 9. Section 543D.21, subsection 4, paragraph c, Code 28 2021, is amended to read as follows: 29 c. A violation of section 543D.20, subsection 1 or 5 . 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to the Iowa appraisal standards and 34 appraiser certification law. 35 -4- LSB 1361XD (6) 89 jda/rn 4/ 7

S.F. _____ H.F. _____ Current law provides that Code chapter 543D shall be known 1 as the Iowa voluntary appraisal standards and appraiser 2 certification law. The bill provides that Code chapter 543D 3 shall be known as the Iowa appraisal standards and appraiser 4 certification law. 5 The bill defines “appraisal review” as developing and 6 communicating an opinion under the uniform standards of 7 professional appraisal practice review standards regarding 8 the quality of an appraiser’s work product prepared as part 9 of an appraisal assignment. The bill defines “federally 10 related transaction” as any financial transaction related to 11 real estate which a federal financial institutions regulatory 12 agency engages in, contracts for, or regulates, and which 13 requires the services of an appraiser pursuant to federally 14 related transaction regulations. The bill defines “federally 15 related transaction regulations” as regulations established 16 by the comptroller of the currency, the board of governors 17 of the federal reserve system, the federal deposit insurance 18 corporation, or the national credit union administration 19 pursuant to sections 1112, 1113, and 1114 of Tit. XI of 20 the federal Financial Institutions Reform, Recovery, and 21 Enforcement Act, 12 U.S.C. §3341 – 3343. The bill modifies 22 the definition of “review appraiser” to mean a person who is 23 responsible for conducting an appraisal review. 24 The bill provides that the purpose of Code chapter 543D is 25 to establish a procedure for the mandatory certification of 26 real estate appraisers performing appraisals for federally 27 related transactions and voluntary certification of real estate 28 appraisers performing appraisals that are not related to 29 federally related transactions. 30 The bill requires a person to be a certified real estate 31 appraiser or a registered associate real estate appraiser 32 acting under the direct supervision of a certified real estate 33 appraiser if the person performs an appraisal for a federally 34 related transaction as it relates to real estate located in 35 -5- LSB 1361XD (6) 89 jda/rn 5/ 7

S.F. _____ H.F. _____ this state. 1 Current law provides that a person who is not a certified 2 real estate appraiser may appraise real estate if certification 3 is not required by Code chapter 543D or any other state or 4 federal law. The bill provides that, notwithstanding that 5 provision, in connection with an appraisal of real estate 6 located in this state, the title certified real estate 7 appraiser, associate real estate appraiser, or any other 8 similar title shall only be used by an individual who holds a 9 certificate or registration under Code chapter 543D. 10 The bill provides that the real estate appraiser examining 11 board may recognize on a temporary basis the certification or 12 license of an appraiser issued by another state. An appraiser 13 who has been recognized on a temporary basis is required to 14 register with the board and is governed by the laws and rules 15 administered by the board. 16 The bill provides that the title certified real estate 17 appraiser, associate real estate appraiser, or any similar 18 title shall only be used to refer to individuals who hold 19 the appropriate certificate or registration. Additionally, 20 the bill provides that, in connection with an appraisal 21 assignment performed on real estate located in this state, the 22 title certified real estate appraiser, associate real estate 23 appraiser, or any other like title shall only be used to refer 24 to individuals who hold a certificate or registration under 25 Code chapter 543D. 26 Current law does not require registration with the board 27 of those who appraise real estate where certification is not 28 required by Code chapter 543D or any other state or federal 29 law, and who are not assisting a certified real estate 30 appraiser in the development of an appraisal assignment that is 31 required by Code chapter 543D or any other state or federal law 32 to be performed by a certified real estate appraiser. The bill 33 provides that, notwithstanding that provision, in connection 34 with an appraisal of real estate located in this state, the 35 -6- LSB 1361XD (6) 89 jda/rn 6/ 7

S.F. _____ H.F. _____ title associate real estate appraiser or any other similar 1 title shall only be used to refer to or by an individual who 2 holds a certificate or registration under Code chapter 543D. 3 The bill authorizes civil penalties against a person who is 4 not certified under Code chapter 543D for a violation of Code 5 section 543D.3, subsection 1A, 2, or 3, or for a violation of 6 Code section 543D.20, subsection 5. The maximum civil penalty 7 that may be imposed is $1,000 for each violation. 8 -7- LSB 1361XD (6) 89 jda/rn 7/ 7