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        PRIOR PRINTER'S NO. 788                        PRINTER'S NO. 933

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 721 Session of 2007


        INTRODUCED BY PILEGGI, CORMAN, ERICKSON, PICCOLA, FONTANA,
           COSTA, RAFFERTY, M. WHITE, MUSTO, DINNIMAN, WAUGH, BAKER AND
           WASHINGTON, APRIL 2, 2007

        SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL
           LICENSURE, AS AMENDED, MAY 1, 2007

                                     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 real estate appraiser
     6     certification required, for powers and duties of board, for
     7     application and qualifications, for reciprocity, for
     8     certification renewal and record, for disciplinary and
     9     corrective measures, for reinstatement, for reporting of
    10     multiple certification, for surrender of suspended or revoked
    11     certificate, for penalties, for injunctive relief and for
    12     scope of practice.

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Section 3 of the act of July 10, 1990 (P.L.404,
    16  No.98), known as the Real Estate Appraisers Certification Act,
    17  amended July 2, 1996 (P.L.460, No.71), is amended to read:
    18  Section 3.  Real estate appraiser certification required.
    19     It shall be unlawful[, on or after January 1, 1993,] for any
    20  person to hold himself out as a State-certified real estate
    21  appraiser or to perform appraisals required by the Financial
    22  Institutions Reform, Recovery, and Enforcement Act of 1989

     1  (Public Law 101-73, 103 Stat. 183) to be performed by a State-
     2  certified or State-licensed real estate appraiser unless that
     3  person holds an appropriate, current and valid certification
     4  from the board to perform real estate appraisals. It shall be
     5  unlawful [two years after the effective date of this act] for
     6  any person to perform real estate appraisals in nonfederally
     7  related transactions unless that person holds [a] an
     8  appropriate, current and valid certificate or license from the
     9  board to perform real estate appraisals. It shall be unlawful
    10  for a person to hold himself out as a real estate appraiser or
    11  appraiser trainee without an appropriate, current and valid
    12  certificate or license from the board.
    13     Section 2.  Section 5 of the act is amended to read:
    14  Section 5.  Powers and duties of board.
    15     The board shall have the following powers and duties:
    16         (1)  To pass upon the qualifications and fitness of
    17     applicants for certification or licensure and to adopt and
    18     revise rules and regulations requiring applicants for
    19     certification or licensure as appraisers to pass examinations  <--
    20     relating to their qualifications for certification or
    21     licensure.
    22         (2)  To adopt and, from time to time, revise such rules
    23     and regulations as may be necessary to carry out the
    24     provisions of this act. Such regulations shall include, but
    25     not be limited to, standards of professional appraisal
    26     practice requiring that appraisals be performed in accordance
    27     with generally accepted appraisal standards as required
    28     pursuant to the Financial Institutions Reform, Recovery, and
    29     Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183).
    30         (3)  To examine for, deny, approve, issue, revoke,
    20070S0721B0933                  - 2 -     

     1     suspend or renew certificates and licenses of appraisers and   <--
     2     LICENSES OF appraiser trainees pursuant to this act and to     <--
     3     conduct hearings in connection therewith.
     4         (4)  To conduct hearings upon complaints concerning
     5     violations of the provisions of this act and the rules and
     6     regulations adopted pursuant to this act and seek the
     7     prosecution and enjoinder of all such violations.
     8         (5)  To expend moneys necessary to the proper carrying
     9     out of its assigned duties.
    10         (6)  To establish fees for the operation of the board,
    11     including fees for the issuance and renewal of certificates
    12     and licenses and for examinations.
    13         (7)  To submit annually a report to the Professional
    14     Licensure Committee of the House of Representatives and the
    15     Consumer Protection and Professional Licensure Committee of
    16     the Senate containing a description of the types of
    17     complaints received, status of the cases, board action which
    18     has been taken and length of time from the initial complaint
    19     to final board resolution.
    20         (8)  To submit annually to the Department of State, an
    21     estimate of the financial requirements of the board for its
    22     administrative, investigative, legal and miscellaneous
    23     expenses.
    24         (9)  To submit annually to the Appropriations Committees
    25     of the House of Representatives and the Senate, 15 days after
    26     the Governor has submitted his budget to the General
    27     Assembly, a copy of the budget request for the upcoming
    28     fiscal year which the board previously submitted to the
    29     Department of State.
    30         (10)  To submit annually pursuant to the Financial
    20070S0721B0933                  - 3 -     

     1     Institutions Reform, Recovery, and Enforcement Act of 1989 a
     2     roster listing individuals who have received State
     3     certification.
     4     Section 3.  Section 6 of the act, amended July 2, 1996
     5  (P.L.460, No.71) and October 18, 2000 (P.L.600, No.77), is
     6  amended to read:
     7  Section 6.  Application and qualifications.
     8     (a)  Classes of certification.--There shall be three classes
     9  of [certification for certified] certified and licensed real      <--
    10  estate appraisers as follows:
    11         (1)  [Residential] Certified Residential Appraiser, which
    12     shall consist of those persons applying for and granted
    13     certification relating solely to the appraisal of residential
    14     real property [as] in accordance with the criteria
    15     established by the Appraiser Qualifications Board of the
    16     Appraisal Foundation required pursuant to the Financial
    17     Institutions Reform, Recovery, and Enforcement Act of 1989
    18     (Public Law 101-73, 103 Stat. 183).
    19         (2)  [General] Certified General Appraiser, which shall
    20     consist of those persons applying for and granted
    21     certification relating to the appraisal of both residential
    22     and nonresidential real property without limitation [as] in
    23     accordance with the criteria established by the Appraiser
    24     Qualifications Board of the Appraisal Foundation required
    25     pursuant to the Financial Institutions Reform, Recovery, and
    26     Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183).
    27         (3)  Broker/appraiser, which shall consist of those
    28     persons who, [on the effective date of this act, are] as of
    29     September 3, 1996, were licensed real estate brokers under
    30     the act of February 19, 1980 (P.L.15, No.9), known as the
    20070S0721B0933                  - 4 -     

     1     Real Estate Licensing and Registration Act, and who, [within
     2     two years of the effective date of this act, make] by
     3     September 3, 1998, made application to the board and [are]
     4     were granted without examination a broker/appraiser
     5     certificate. A holder of a broker/appraiser certificate shall
     6     only be permitted to perform those real property appraisals
     7     that were permitted to be performed by a licensed real estate
     8     broker under the Real Estate Licensing and Registration Act
     9     as of [the effective date of this act] September 3, 1996. A
    10     holder of a broker/appraiser certificate is not authorized to
    11     perform real estate appraisals pursuant to the Financial
    12     Institutions Reform, Recovery, and Enforcement Act of 1989.
    13         (4)  Licensed Real Estate Appraiser, if deemed             <--
    14     appropriate, the board may establish a class of licensed real
    15     estate appraisers, which shall consist of those persons who,
    16     at a minimum, meet the requirements recommended by the
    17     Appraiser Qualifications Board of the Appraisal Foundation
    18     with regard to licensed appraisers on or after January 1,
    19     2008. The board may prescribe limitations on the term,
    20     renewal and continuing education of licensed real estate
    21     appraisers consistent with progress toward certification.
    22     (b)  Classification to be specified.--The application for
    23  examination, original certification or license and renewal of
    24  certification or license shall specify the classification being
    25  applied for.
    26     (c)  Application.--An applicant for certification or license
    27  [as a certified or licensed real estate appraiser] shall submit   <--
    28  a written application on forms provided by the board. The
    29  application and any and all documentation submitted with the
    30  application shall be subscribed and sworn to before a notary
    20070S0721B0933                  - 5 -     

     1  public. The applicant shall be held responsible for the
     2  statements contained in the application. The making of a false
     3  statement in an application may constitute a ground for
     4  certification or license denial or revocation. The application
     5  shall evidence that:
     6         (1)  He or she is of good moral character.
     7         (2)  His or her application has been accompanied by the
     8     application fee.
     9     (d)  Residential Appraiser certification.--As a prerequisite
    10  to taking the examination for certification relating solely to
    11  the appraisal of residential real property, an applicant shall,
    12  in addition to meeting the requirements of subsection (c), meet
    13  the minimum education and experience requirements established
    14  pursuant to the Financial Institutions Reform, Recovery, and
    15  Enforcement Act of 1989.
    16     (e)  General Appraiser certification.--As a prerequisite to
    17  taking the examination for the general certification relating to
    18  the appraisal of real property, an applicant shall, in addition
    19  to meeting the requirements of subsection (c), meet the minimum
    20  education and experience requirements established pursuant to
    21  the Financial Institutions Reform, Recovery, and Enforcement Act
    22  of 1989.
    23     (f)  Definition of subjects.--The board shall prescribe and
    24  define the subjects related to real property appraisal and the
    25  experience in real property appraisal which will satisfy the
    26  requirements of subsections (a), (d) [and (e)], (e) and (i). To
    27  the extent permitted pursuant to the Financial Institutions
    28  Reform, Recovery, and Enforcement Act of 1989 with regard to
    29  certified appraisers, the board may give credit to an applicant
    30  for classroom hours of academic experience successfully
    20070S0721B0933                  - 6 -     

     1  completed prior to the board's prescription and definition of
     2  subjects pursuant to this subsection.
     3     (g)  Examinations.--Examinations for certification or license
     4  shall be selected in accordance with the Financial Institutions
     5  Reform, Recovery, and Enforcement Act of 1989. Examinations
     6  shall be prepared and administered by a qualified and approved
     7  professional testing organization in accordance with section
     8  812.1 of the act of April 9, 1929 (P.L.177, No.175), known as
     9  The Administrative Code of 1929.
    10     (i)  Appraiser trainee license.--In addition to the
    11  certificates and licenses authorized in subsection (a), the
    12  board shall issue an appraisal trainee license, without
    13  examination, to any person who meets the appraiser trainee
    14  educational requirements of the Appraiser Qualifications Board
    15  of the Appraisal Foundation and who does not already hold an
    16  appraiser credential under subsection (a). An appraiser trainee
    17  shall operate under the direct supervision of a Certified
    18  Residential Appraiser or Certified General Appraiser for the
    19  purpose of completing the experience requirement for an
    20  appraiser credential in subsection (a). An appraisal trainee
    21  shall be permitted to assist in the performance of any appraisal
    22  that is within the supervisory appraiser's scope of practice.
    23     (j)  Real estate brokers as appraisers.--
    24         (1)  Nothing in this section shall preclude a licensed
    25     real estate broker from also holding an appraiser license or
    26     certificate under subsection (a)(1), (2) or (4) OR (2) or      <--
    27     (i).
    28         (2)  All persons holding a broker/appraiser certificate
    29     under subsection (a)(3) shall be entitled to hold the
    30     certificate for the entire term and shall be entitled and
    20070S0721B0933                  - 7 -     

     1     subject to the privileges, obligations and renewals which
     2     accompany the certificate.
     3     Section 4.  Section 7 of the act is amended to read:
     4  Section 7.  Reciprocity.
     5     The board shall have the power to grant a reciprocal
     6  [certification] certificate or license to an applicant who is
     7  certified or licensed as an appraiser in another state and has
     8  demonstrated qualifications which equal or exceed those required
     9  pursuant to this act in the determination of the board, provided
    10  that no certificate or license shall be granted under this
    11  section to an applicant unless the state in which the applicant
    12  is certified or licensed affords reciprocal treatment to persons
    13  who are residents of this Commonwealth and who are certified or
    14  licensed pursuant to this act.
    15     Section 5.  Section 10 of the act, amended December 20, 2000
    16  (P.L.733, No.103), is amended to read:
    17  Section 10.  Certification and licensure renewal; records.
    18     (a)  Renewal term.--Renewal of certification or licensure
    19  shall be on a biennial basis for persons in good standing,
    20  except that the board may prescribe limitations on the number of
    21  times that a licensed real estate appraiser or appraiser trainee
    22  may renew such CERTIFICATES AND licenses.                         <--
    23     (b)  Continuing education for licensed appraisers and          <--
    24  certified residential and general appraisers.--The board shall
    25  by regulation require evidence of professional activity or
    26  continuing education as a condition of licensure renewal of       <--
    27  appraisers and certification renewal of residential and general
    28  appraisers if, and only to the minimum extent, required pursuant
    29  to the Financial Institutions Reform, Recovery, and Enforcement
    30  Act of 1989 (Public Law 101-73, 103 Stat. 183). No credit shall
    20070S0721B0933                  - 8 -     

     1  be given for any course in office management or practice
     2  building.
     3     (b.1)  Continuing education for broker/appraisers.--
     4  Broker/appraisers shall be subject to the same continuing
     5  education requirements for certification renewal as residential
     6  and general appraisers. The board shall have the power and
     7  authority to promulgate regulations to prescribe evidence of
     8  continuing education required for certification renewal pursuant
     9  to this section.
    10     (b.2)  Continuing education for appraisal trainees.--
    11  Appraisal trainees shall be subject to such continuing education
    12  requirements for licensure renewal as the board may prescribe by
    13  regulation.
    14     (c)  Records.--A record of all persons licensed as appraiser
    15  trainees and all persons certified or licensed as real estate     <--
    16  appraisers in this Commonwealth shall be kept in the office of
    17  the board and shall be open to public inspection and copying
    18  upon payment of a nominal fee for copying the record. Each
    19  certificateholder and licensee shall advise the board of the
    20  address of his or her principal place of business.
    21     Section 6.  Section 11 of the act, amended July 2, 1996
    22  (P.L.460, No.71), is amended to read:
    23  Section 11.  Disciplinary and corrective measures.
    24     (a)  Authority of board.--The board may deny, suspend or
    25  revoke certificates or licenses, or limit, restrict or reprimand
    26  a certificateholder or licensee for any of the following causes:
    27         (1)  Procuring or attempting to procure a certificate or
    28     license or renewal of a certificate or license pursuant to
    29     this act by knowingly making a false statement, submitting
    30     false information or refusing to provide complete information
    20070S0721B0933                  - 9 -     

     1     in response to a question in an application for certification
     2     or licensure or renewal of certification or licensure through
     3     any form of fraud or misrepresentation.
     4         (2)  Failing to meet the minimum qualifications
     5     established by this act.
     6         (3)  Paying, or offering to pay, any valuable
     7     consideration other than provided for by this act to any
     8     member or employee of the board to procure a certificate
     9     under this act.
    10         (4)  Being convicted of or pleading guilty to a crime
    11     which is substantially related to the qualifications,
    12     functions and duties of a person developing real property
    13     appraisals and communicating real property appraisals to
    14     others.
    15         (5)  Performing an act or omitting an act when such
    16     performance or omission involves dishonesty, fraud or
    17     misrepresentation with intent to substantially benefit the
    18     certificateholder or licensee in his profession or with the
    19     intent to substantially injure another person.
    20         (6)  Violating any of the standards for the development
    21     or communication of real property appraisals as required
    22     pursuant to this act or the Financial Institutions Reform,
    23     Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103
    24     Stat. 183).
    25         (7)  Failing or refusing, without good cause, to exercise
    26     reasonable diligence in developing an appraisal, preparing an
    27     appraisal report or communicating an appraisal.
    28         (8)  Negligently or incompetently developing an
    29     appraisal, preparing an appraisal report or communicating an
    30     appraisal.
    20070S0721B0933                 - 10 -     

     1         (9)  Willfully disregarding or violating any of the
     2     provisions of this act or the guidelines or regulations of
     3     the board for the administration and enforcement of the
     4     provisions of this act.
     5         (10)  Accepting an appraisal assignment when the
     6     employment itself is contingent upon the appraiser's
     7     reporting a predetermined analysis or opinion, or where the
     8     fee to be paid for the performance of the appraisal
     9     assignment is contingent upon the opinion, conclusion or
    10     valuation reached, or upon the consequence resulting from the
    11     appraisal assignment.
    12         (11)  Violating the confidential nature of records to
    13     which the appraiser gained access through employment or
    14     engagement as an appraiser.
    15         (12)  Making the fee or compensation contingent upon an
    16     award or recovery in any case where the amount of the award
    17     or recovery would be affected by the appraisal.
    18         (13)  Basing the fee or compensation on a percentage of
    19     the final estimate of value.
    20         (14)  Contracting for or accepting compensation for
    21     appraisal services in the form of a commission, rebate,
    22     division of brokerage commissions or any other similar form.
    23         (15)  Having a license or certificate to perform
    24     appraisals suspended, revoked or refused by an appraisal
    25     licensure or certification authority of another state,
    26     territory or country, or receiving other disciplinary actions
    27     by the appraisal licensure or certification authority of
    28     another state, territory or country.
    29     (b)  Board action.--When the board finds that the
    30  [certification] certificate or license or application for
    20070S0721B0933                 - 11 -     

     1  certification or licensure or renewal of [any person]
     2  certification or licensure may be denied, revoked, restricted or
     3  suspended under the terms of subsection (a), the board may:
     4         (1)  Deny the application for certification or licensure
     5     for renewal of certification or licensure.
     6         (2)  Administer a public reprimand.
     7         (3)  Revoke, suspend, limit or otherwise restrict a
     8     certificate or license as determined by the board.
     9         (4)  Suspend enforcement of its findings thereof and
    10     place a certificateholder on probation with the right to
    11     vacate the probationary order for noncompliance.
    12         (5)  Restore a suspended [certification] certificate or
    13     license and impose any disciplinary or corrective measure
    14     which it might originally have imposed.
    15     (c)  Hearing.--All actions of the board shall be taken
    16  subject to the right of notice, hearing and adjudication and the
    17  right of appeal therefrom in accordance with 2 Pa.C.S. (relating
    18  to administrative law and procedure). Appeals from actions of
    19  the board shall be taken to Commonwealth Court or to such other
    20  court as prescribed by law.
    21     Section 7.  Sections 12, 13, 14, 15 and 17 of the act are
    22  amended to read:
    23  Section 12.  Reinstatement of certificate or license.
    24     Unless ordered to do so by Commonwealth Court or an appeal
    25  therefrom, the board shall not reinstate the certificate or
    26  license of a person to practice as a certified or licensed real   <--
    27  estate appraiser, or as an appraiser trainee, pursuant to this
    28  act, which has been revoked. Any person whose [certification]
    29  certificate or license has been revoked may apply for
    30  reinstatement, after a period of at least five years, but must
    20070S0721B0933                 - 12 -     

     1  meet all of the certification or licensure qualifications of
     2  this act, including the examination requirement, if he or she
     3  desires to hold himself or herself out or to practice as a
     4  [certified] real estate appraiser pursuant to this act at any
     5  time after such revocation.
     6  Section 13.  Reporting of multiple certification.
     7     Any appraiser certified or APPRAISER TRAINEE licensed in this  <--
     8  Commonwealth who is also certified or licensed to perform
     9  appraisals in any other state, territory or country shall report
    10  this information to the board on the biennial renewal
    11  application. Any disciplinary action taken in any other state,
    12  territory or country shall be reported to the board on the
    13  biennial renewal application, or within 90 days of disposition,
    14  whichever is sooner. Multiple licensure or certification shall
    15  be noted by the board on the [certified] appraiser's record, and
    16  such state, territory or country shall be notified by the board
    17  of any disciplinary actions taken against [said certified] the
    18  appraiser in this Commonwealth.
    19  Section 14.  Surrender of suspended or revoked certificate.
    20     The board shall require a person whose [certification]
    21  certificate or license has been suspended or revoked to return
    22  the certificate or license in such manner as the board directs.
    23  Failure to do so shall be a misdemeanor of the third degree.
    24  Section 15.  Penalties.
    25     (a)  Criminal penalties.--A person who violates this act
    26  commits a misdemeanor of the third degree and shall, upon
    27  conviction, be sentenced to pay a fine of up to $1,000 or to
    28  imprisonment for not more than 90 days, or both.
    29     (b)  Civil penalty.--In addition to any other civil remedy or
    30  criminal penalty provided for in this act, the board, by a vote
    20070S0721B0933                 - 13 -     

     1  of the majority of the maximum number of the authorized
     2  membership of the board as provided by law, or by a vote of the
     3  majority of the duly qualified and confirmed membership or a
     4  minimum of three members, whichever is greater, may levy a civil
     5  penalty of up to $1,000 on any [current] certificateholder or     <--
     6  licensee who violates any provision of this act or on any person
     7  who holds himself or herself out as a certified or licensed real
     8  estate appraiser or appraiser trainee or performs appraisals for
     9  which certification [or licensure] is required pursuant to the
    10  Financial Institutions Reform, Recovery, and Enforcement Act of
    11  1989 (Public Law 101-73, 103 Stat. 183) without being so
    12  certified pursuant to this act. The board shall levy this
    13  PENALTY OF UP TO [$1,000] $10,000 ON ANY [CURRENT]                <--
    14  CERTIFICATEHOLDER OR LICENSEE WHO VIOLATES ANY PROVISION OF THIS
    15  ACT [OR]; ON ANY [PERSON] NONCERTIFICATEHOLDER WHO HOLDS HIMSELF
    16  [OR HERSELF] OUT AS A [CERTIFIED] REAL ESTATE APPRAISER IN THIS
    17  COMMONWEALTH OR PERFORMS APPRAISALS FOR WHICH CERTIFICATION OR
    18  LICENSURE IS REQUIRED PURSUANT TO THE FINANCIAL INSTITUTIONS
    19  REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989 (PUBLIC LAW 101-
    20  73, 103 STAT. 183) OR ANY OTHER APPRAISER WITHOUT BEING SO
    21  CERTIFIED PURSUANT TO THIS ACT. THE BOARD SHALL LEVY THIS
    22  penalty only after affording the accused party the opportunity
    23  for a hearing, as provided in 2 Pa.C.S. (relating to
    24  administrative law and procedure).
    25     (c)  Disposition.--All fines and civil penalties imposed in
    26  accordance with this section shall be paid into the Professional
    27  Licensure Augmentation Account.
    28  Section 17.  Injunctive relief.
    29     (a)  Injunction.--A violation of section 3 may be enjoined by
    30  the courts upon petition of the secretary or the board. In any
    20070S0721B0933                 - 14 -     

     1  proceeding under this section, it shall not be necessary to show
     2  that any person is individually injured by the actions
     3  complained of. If the court finds that the respondent has
     4  violated section 3, it shall enjoin him or her from so
     5  practicing or holding himself or herself out until he or she has
     6  been duly certified or licensed. Procedure in such cases shall
     7  be the same as in any other injunction suit.
     8     (b)  Remedy cumulative.--The injunctive remedy provided in
     9  this section shall be in addition to any other civil or criminal
    10  prosecution and punishment.
    11     Section 8.  Section 18 of the act, amended July 2, 1996
    12  (P.L.460, No.71), is amended to read:
    13  Section 18.  Scope of practice.
    14     Persons who are certified as residential real estate
    15  appraisers and general real estate appraisers under [this act]
    16  section 6(a)(1) and (2) shall also have authority to perform
    17  real estate appraisals in nonfederally related transactions
    18  appropriate to their certification classification.
    19  Brokers/appraisers shall continue to have authority to perform
    20  real estate appraisals in nonfederally related transactions.
    21  Persons who are otherwise licensed by the board shall have
    22  authority to perform real estate appraisals in nonfederally
    23  related transactions appropriate to their appraiser license
    24  classification.
    25     Section 9.  This act shall take effect in 60 days.




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