PRIOR PRINTER'S NOS. 214, 733 PRINTER'S NO. 1711
No. 206 Session of 2001
INTRODUCED BY HOLL, JANUARY 31, 2001
SENATOR THOMPSON, APPROPRIATIONS, RE-REPORTED AS AMENDED,
FEBRUARY 11, 2002
AN ACT
1 Amending the act of July 10, 1990 (P.L.404, No.98), entitled "An
2 act providing for the certification of real estate
3 appraisers; specifying requirements for certification;
4 providing for sanctions and penalties; and making an
5 appropriation," further providing for the State Board of
6 Certified Real Estate Appraisers and for requirements
7 relating to appraising real estate; prohibiting certain acts;
8 PROVIDING FOR VIOLATIONS AND FOR REMEDIES AVAILABLE TO <--
9 CONSUMERS; and making editorial changes.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Sections 2 and SECTION 4 of the act of July 10, <--
13 1990 (P.L.404, No.98), known as the Real Estate Appraisers
14 Certification Act, are IS amended to read: <--
15 Section 2. Definitions. <--
16 The following words and phrases when used in this act shall
17 have the meanings given to them in this section unless the
18 context clearly indicates otherwise:
19 "Applicant." A natural person.
20 "Appraisal." A written or oral analysis, opinion or
21 conclusion relating to the nature, quality, value or utility of
1 specified interests in, or aspects of, identified real property,
2 for or in expectation of compensation.
3 "Appraisal management company." An individual or company
4 that acts as an intermediary for mortgage lending institutions
5 or other end users to recruit and hire appraisers to perform
6 real estate appraisal or appraisal reviews and to transmit the
7 appraisals, appraisal reviews, final value estimates or
8 certificates of value to lending institutions to be used in the
9 making of mortgage loans or to other end users of appraisal
10 services.
11 "Appraisal review." The act or process of developing and
12 communicating an opinion about the quality of another
13 appraiser's work.
14 "Board." The State Board of Certified Real Estate Appraisers
15 [within the Bureau of Professional and Occupational Affairs in
16 the Department of State].
17 "Commissioner." The Commissioner of Professional and
18 Occupational Affairs in the Department of State.
19 "Secretary." The Secretary of the Commonwealth or his or her
20 designee.
21 "State-certified real estate appraiser." A person who holds
22 a current valid certificate issued to him under the provisions
23 of this act.
24 Section 4. State Board of Certified Real Estate Appraisers.
25 (a) Creation.--There is hereby created the State Board of
26 Certified Real Estate Appraisers as a departmental
27 administrative board in the Department of State. The board shall
28 consist of [seven] NINE members who are citizens of the United <--
29 States and who have been residents of this Commonwealth for a
30 two-year period immediately prior to appointment, two of whom
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1 shall be public members, [four] two of whom shall be persons who
2 are general certified appraisers, two of whom shall be State-
3 certified [real estate] appraisers, ONE OF WHOM SHALL BE THE <--
4 DIRECTOR OF CONSUMER PROTECTION IN THE OFFICE OF ATTORNEY
5 GENERAL OR HIS OR HER DESIGNEE, ONE A MEMBER OF THE PUBLIC AT
6 LARGE and one of whom shall be the Secretary of the Commonwealth
7 or his or her designee. [For the initial board appointments, the
8 four professional members need not be certified at the time of
9 appointment but shall have appropriate appraisal experience and
10 education and shall have demonstrated adherence to standards of
11 professional practice.]
12 (b) Term of office.--The professional and public members
13 shall serve four-year terms[, except as provided in subsection
14 (c),] and shall be appointed by the Governor by and with the
15 advice and consent of a majority of the members elected to the
16 Senate.
17 [(c) Initial appointments.--Within 90 days of the effective
18 date of this act, the Governor shall nominate one professional
19 member to serve a four-year term; one public member and one
20 professional member to serve three-year terms; one public member
21 and one professional member to serve two-year terms; and one
22 professional member to serve a one-year term.]
23 (d) Continuation in office.--Each professional and public
24 member shall continue in office until a successor is duly
25 appointed and qualified but no longer than six months after the
26 expiration of the term. In the event that a board member shall
27 die, resign or otherwise become disqualified during the term of
28 office, a successor shall be appointed in the same way and with
29 the same qualifications as set forth in this section and shall
30 hold office for the unexpired portion of the unexpired term.
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1 (e) Limit on terms.--No board member shall be eligible for
2 appointment to serve more than two consecutive four-year terms.
3 (f) Forfeiture of membership.--A board member who fails to
4 attend three consecutive meetings shall forfeit his or her seat
5 unless the secretary, upon written request from the member,
6 finds that the member should be excused from a meeting because
7 of illness or the death of a family member.
8 (g) Compensation.--Each member of the board, except the
9 secretary, shall receive per diem compensation at the rate of
10 $60 per diem when actually attending to the work of the board.
11 Members shall also receive reasonable traveling, hotel and other
12 necessary expenses incurred in the performance of their duties
13 in accordance with Commonwealth regulations.
14 (h) Forfeiture for nonattendance.--A public member who fails
15 to attend two consecutive statutorily mandated training seminars
16 in accordance with section 813(e) of the act of April 9, 1929
17 (P.L.177, No.175), known as The Administrative Code of 1929,
18 shall forfeit his or her seat unless the secretary, upon written
19 request from the public member, finds that the public member
20 should be excused from a meeting because of illness or the death
21 of a family member.
22 (i) Quorum.--A majority of the members of the board serving
23 in accordance with law shall constitute a quorum for purposes of
24 conducting the business of the board. A member may not be
25 counted as part of a quorum or vote on any issue unless he or
26 she is physically in attendance at the meeting.
27 (j) Meetings.--The board shall meet at least four times a
28 year in Harrisburg.
29 (k) Notice.--Reasonable notice of all meetings shall be
30 given in conformity with the act of July 3, 1986 (P.L.388,
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1 No.84), known as the Sunshine Act.
2 (l) Operating procedures.--[The board shall meet within 30
3 days after the appointment of its initial members and] The board
4 shall set up operating procedures and an application form for
5 certifying appraisers. It shall be the responsibility of the
6 board to circulate these forms and educate the public to the
7 requirements of certification. No other board and no commission
8 within the Bureau of Professional and Occupational Affairs shall
9 be responsible, in any manner, for the policies, procedures or
10 other substantive matters which are within the powers and duties
11 of the board as set forth in this act.
12 (m) Election of officers.--The board shall elect annually
13 from its membership a chairman, a vice chairman and a secretary.
14 Section 2. Section 11(a)(14) of the act is amended to read: <--
15 Section 11. Disciplinary and corrective measures.
16 (a) Authority of board.--The board may deny, suspend or
17 revoke certificates, or limit, restrict or reprimand a
18 certificateholder for any of the following causes:
19 * * *
20 (14) [Contracting] Rebating appraisal fees under section
21 3, paying referral fees which provide anything of substantial
22 economic value in order to obtain appraisal assignments
23 except to the persons authorized to receive appraisal fees
24 under section 18.1, or contracting for or accepting
25 compensation for appraisal services in the form of a
26 commission, rebate, division of brokerage commissions or any
27 other similar form. Nothing in this paragraph shall be
28 construed to prohibit advertising, promotional activities,
29 gifts or entertainment of a routine and customary nature not
30 intended as consideration for the referral or procurement of
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1 appraisal assignments.
2 * * *
3 Section 3 2. The act is amended by adding sections to read: <--
4 Section 14.1. Registration of appraisal management companies. <--
5 An appraisal management company shall register with the
6 board, pay a registration fee and acknowledge receipt and
7 understanding of the board's current certification law and
8 professional and vocational standards.
9 Section 14.2 14.1. Unlawful acts. <--
10 It shall be unlawful for: <--
11 (1) Any person to knowingly solicit a certificateholder
12 to violate any provision of this act or to knowingly aid or
13 abet a certificateholder in committing any violation of this
14 act.
15 (2) Any person to collect and retain a fee for real
16 estate appraisal or real estate appraisal review services
17 unless that person holds a valid certificate from the board
18 to perform real estate appraisals.
19 (3) Any person with an interest in the transaction
20 involving an appraisal to intimidate, coerce, threaten,
21 extort, bribe or otherwise adversely impact the independence
22 of a State-certified appraiser or State-certified
23 broker/appraiser in the development and reporting of an
24 appraisal. Nothing in this paragraph shall be construed to
25 prohibit any person from performing relevant property
26 IT SHALL BE UNLAWFUL FOR ANY PERSON WITH AN INTEREST IN THE <--
27 TRANSACTION INVOLVING AN APPRAISAL TO COERCE, EXTORT OR BRIBE A
28 STATE-CERTIFIED APPRAISER OR STATE-CERTIFIED BROKER/APPRAISER IN
29 THE DEVELOPMENT AND REPORTING OF AN APPRAISAL WITH THE INTENT TO
30 COMPEL THE APPRAISER OR BROKER/APPRAISER TO PROVIDE AN
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1 UNSUPPORTED AND UNREASONABLE VALUE FOR A PROPERTY. NOTHING IN
2 THIS PARAGRAPH SHALL BE CONSTRUED TO PROHIBIT ANY PERSON FROM:
3 (I) CONSIDERING APPROPRIATE PROPERTY INFORMATION;
4 (II) ASKING THE APPRAISER TO PROVIDE FURTHER DETAIL,
5 SUBSTANTIATION OR EXPLANATION FOR THE APPRAISER'S VALUE
6 CONCLUSION;
7 (III) ASKING THE APPRAISER TO RECONSIDER A VALUE
8 CONCLUSION IN LIGHT OF ADDITIONAL INFORMATION RELATING TO
9 THE PROPERTY;
10 (IV) ASKING AN APPRAISER TO CORRECT ANY ERROR IN THE
11 APPRAISAL REPORT; OR
12 (V) PERFORMING RELEVANT appraisal underwriting in
13 accordance with, but not limited to, the guidelines of
14 federally or State-chartered financial institutions or
15 government-sponsored enterprises, including, but not
16 limited to, Fannie Mae or Freddie Mac.
17 Section 4. Sections 15(b) and 17(a) of the act are amended <--
18 to read:
19 Section 15. Penalties.
20 * * *
21 (b) Civil penalty.--
22 (1) In addition to any other civil remedy or criminal
23 penalty provided for in this act, the board, by a vote of the
24 majority of the maximum number of the authorized membership
25 of the board as provided by law, or by a vote of the majority
26 of the duly qualified and confirmed membership or a minimum
27 of three members, whichever is greater, may levy a civil
28 penalty of up to $1,000 on any person or any current
29 certificateholder who violates any provision of this act or
30 on any person who holds himself or herself out as a certified
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1 real estate appraiser or performs appraisals for which
2 certification or licensure is required pursuant to the
3 Financial Institutions Reform, Recovery, and Enforcement Act
4 of 1989 (Public Law 101-73, 103 Stat. 183) without being so
5 certified pursuant to this act. The board shall levy this
6 penalty only after affording the accused party the
7 opportunity for a hearing, as provided in 2 Pa.C.S. (relating
8 to administrative law and procedure).
9 (2) In the same manner as provided to levy a civil
10 penalty, the board may initiate a proceeding before a court
11 of competent jurisdiction to levy a civil penalty of up to
12 $1,000 on any person who is not a certificateholder who
13 violates a provision of this act.
14 * * *
15 Section 17. Injunctive relief.
16 (a) Injunction.--A violation of section 3, 14.1 or 14.2 may
17 be enjoined by the courts upon petition of the secretary or the
18 board. In any proceeding under this section, it shall not be
19 necessary to show that any person is individually injured by the
20 actions complained of. If the court finds that the respondent
21 has violated section 3, it shall enjoin [him or her] the
22 respondent from so practicing or holding [himself or herself]
23 out until [he or she] the respondent has been duly certified. If
24 the court finds that the respondent violated section 14.1, it
25 shall enjoin the respondent from operating in this Commonwealth
26 until the respondent has been duly registered. If the court
27 finds that the respondent has violated section 14.2, it shall
28 enjoin the respondent from committing further violations.
29 Procedure in such cases shall be the same as in any other
30 injunction suit.
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1 * * *
2 SECTION 18.1. VIOLATIONS. <--
3 A VIOLATION OF THIS ACT OR THE REGULATIONS PROMULGATED
4 PURSUANT TO THIS ACT IS ALSO A VIOLATION OF THE ACT OF DECEMBER
5 17, 1968 (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES
6 AND CONSUMER PROTECTION LAW.
7 SECTION 18.2. REMEDIES AVAILABLE TO CONSUMERS.
8 NOTHING IN THIS ACT SHALL BE CONSTRUCTED TO LIMIT THE
9 REMEDIES AVAILABLE TO CONSUMERS, THE ATTORNEY GENERAL OR ANY
10 DISTRICT ATTORNEY UNDER THE ACT OF DECEMBER 17, 1968 (P.L.1224,
11 NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES AND CONSUMER
12 PROTECTION LAW, OR ANY OTHER FEDERAL OR STATE LAW.
13 Section 5 3. This act shall take effect in 60 days. <--
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