House File 682 - Reprinted HOUSE FILE 682 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 176) (As Amended and Passed by the House March 10, 2021 ) A BILL FOR An Act relating to the Iowa appraisal standards and appraiser 1 certification law and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 HF 682 (4) 89 jda/rn/md

H.F. 682 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 the 10 quality of an appraiser’s work product, with or without also 11 providing an opinion of value, prepared as part of an appraisal 12 assignment. “Appraisal review” does not include quality control 13 solely to assure an appraisal report is complete, or to correct 14 grammatical, typographical, or similar 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- HF 682 (4) 89 jda/rn/md 1/ 5

H.F. 682 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 if the 18 services of a certified real estate appraiser are required by 19 federal law or regulation. 20 2. A person who is not a certified real estate appraiser 21 under this chapter may appraise real estate for compensation if 22 certification is not required by this chapter or by federal or 23 state law, rule, or policy. However, an employee of the state 24 department of transportation whose duties include appraisals 25 of property pursuant to chapter 6B must be a certified real 26 estate appraiser under this chapter or a registered associate 27 real estate appraiser acting under the direct supervision 28 of a certified real estate appraiser. Notwithstanding this 29 subsection, in connection with the performance of an appraisal 30 of real estate located in this state, the use of the title 31 “certified real estate appraiser”, “associate real estate 32 appraiser”, or any other like title, including a title that 33 suggests an individual is certified under the laws of this or 34 another state, shall only be used to refer to or by individuals 35 -2- HF 682 (4) 89 jda/rn/md 2/ 5

H.F. 682 who hold a certificate or registration under this chapter. 1 3. An employee of the state department of transportation 2 whose duties include appraisals of property pursuant to chapter 3 6B must be a certified real estate appraiser under this chapter 4 or a registered associate real estate appraiser acting under 5 the direct supervision of a certified real estate appraiser. 6 4. A person who is not a certified real estate appraiser 7 under this chapter but who is licensed under chapter 543B may 8 in the course of business provide a valuation of real estate 9 for compensation as a comparative market analysis or a broker 10 price opinion. 11 Sec. 5. Section 543D.11, Code 2021, is amended to read as 12 follows: 13 543D.11 Certification by reciprocity. 14 1. If, in the determination by the board, another state 15 is deemed to have substantially equivalent certification 16 requirements, an applicant who is certified under the laws of 17 the other state may obtain a certificate as a certified real 18 estate appraiser upon terms and conditions as determined by the 19 board. 20 2. The board may recognize on a temporary basis the 21 certification or license of an appraiser issued by another 22 state, including where the property to be appraised is part 23 of a federally related transaction. An appraiser engaging in 24 such temporary practice shall apply for and obtain a temporary 25 practice permit from the board before performing any services 26 in relation to an appraisal, is subject to the full regulatory 27 jurisdiction of the board, and is governed by the laws and 28 rules administered by the board. 29 Sec. 6. Section 543D.15, subsection 1, Code 2021, is amended 30 to read as follows: 31 1. a. The term “certified real estate appraiser” title 32 “certified real estate appraiser”, “associate real estate 33 appraiser”, or any other like title shall only be used to refer 34 to individuals who hold the certificate or registration, as 35 -3- HF 682 (4) 89 jda/rn/md 3/ 5

H.F. 682 applicable, and shall not be used in connection with or as part 1 of the name or signature of a firm, partnership, corporation, 2 or group, or in a manner that it may be interpreted as 3 referring to a firm, partnership, corporation, group, other 4 business entity, or anyone other than an individual holder of 5 the certificate or registration . 6 b. In connection with an appraisal assignment performed on 7 real estate located in this state, the title “certified real 8 estate appraiser”, “associate real estate appraiser”, or any 9 other like title, including a title that suggests an individual 10 is licensed or certified under the laws of this state or 11 another state, shall only be used to refer to individuals who 12 hold a certificate or registration under this chapter. 13 Sec. 7. Section 543D.20, subsection 5, Code 2021, is amended 14 to read as follows: 15 5. Persons who appraise real estate where certification is 16 not required by this chapter or by federal or state law, rule, 17 or policy, and who are not assisting a certified real estate 18 appraiser in the development or reporting of an appraisal 19 assignment that is required by this chapter , or by federal 20 or state law, rule, or policy to be performed by a certified 21 real estate appraiser, are not required to register with the 22 board. Notwithstanding this subsection, in connection with the 23 performance, or assistance in the performance, of an appraisal 24 of real estate located in this state, the use of the title 25 “associate real estate appraiser” or any other like title, 26 including a title that suggests an individual is an associate 27 real estate appraiser under the laws of this state or another 28 state, shall only be used to refer to individuals who hold a 29 registration under this chapter. 30 Sec. 8. Section 543D.21, subsection 4, Code 2021, is amended 31 by adding the following new paragraph: 32 NEW PARAGRAPH . 0a. A violation of section 543D.3, 33 subsections 1A, 2, or 3. 34 Sec. 9. Section 543D.21, subsection 4, paragraph c, Code 35 -4- HF 682 (4) 89 jda/rn/md 4/ 5

H.F. 682 2021, is amended to read as follows: 1 c. A violation of section 543D.20, subsection 1 or 5 . 2 -5- HF 682 (4) 89 jda/rn/md 5/ 5