- Section SPS 85.115 is created to incorporate by reference into chs. SPS 85 to 87 the 2018-2019 Uniform Standards of Professional Appraisal Practice issued by the Appraisal Standards Board of The Appraisal Foundation. By letter dated October 30, 2018, the Attorney General has consented to the incorporation of these standards into chs. SPS 85 to 87. - The minimum requirements for certification as a general appraiser under subch. III of ch. SPS 85, certification as a residential appraiser under subch. IV of ch. SPS 85 and licensure as an appraiser under subch. V of ch. SPS 85 have been revised to adopt the minimum qualifications for real property appraisers established May 1, 2018 by the Appraiser Qualifications Board of The Appraisal Foundation. - Sections SPS 85.400, 85.500, and 86.01 have been revised to reflect that the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have issued a final rule that increases the threshold for commercial real estate transactions requiring an appraisal from $250,000 to $500,000 (Federal Register Vol. 83, No. 68). - Section SPS 85.900 (5) is revised to clarify that continuing education credit may be claimed for teaching a continuing education course that is approved by the Department of Safety and Professional Services. - The provisions for renewal under s. SPS 87.02 are revised to specify the requirements for late renewal or reinstatement of a certification or license include completion of the most current edition of the 7-Hour National USPAP Update Course. - Other provisions throughout chs. SPS 85 to 87 have been revised to update notes, provide clarity, and conform to current drafting standards. Summary of, and comparison with, existing or proposed federal statutes and regulations:
The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), 12 U.S.C. 3331 et seq., (Title XI) was enacted in 1989. Under FIRREA, insured financial institutions and insured credit unions are required to obtain the services of a state certified or licensed appraiser for appraisals conducted in connection with “federally related transactions.” Title XI also directs each federal financial institutions regulatory agency (the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of Currency, and National Credit Union Association) to publish appraisal regulations for federally related transactions within its jurisdiction.
Under FIRREA, all states that certify real estate appraisers for purposes of conducting appraisals in federally related transactions must assure compliance with the criteria established by the Appraiser Qualifications Board (AQB). The criteria established by the AQB are set forth in the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria (Criteria). The AQB Criteria includes the minimum experience, examination, qualifying education, and continuing education requirements that must be satisfied by an individual in order to obtain and maintain a certified appraiser credential.
The regulations in the proposed rules will comply with the AQB Criteria.
Comparison with rules in adjacent states:
Illinois: Rules of the Illinois Department of Financial and Professional Regulation address the practice of real estate appraisal in Illinois (68 Ill. Adm. Code 1455). The rules incorporate by reference the 2018-2019 Uniform Standards of Professional Appraisal Practice issued by the Appraisal Standards Board of The Appraisal Foundation (68 Ill. Adm. Code 1455.240). The rules do not currently adopt the minimum qualifications for real property appraisers established May 1, 2018 by the Appraiser Qualifications Board of The Appraisal Foundation.
Iowa: Rules of the Iowa Real Estate Appraiser Examining Board address the practice of real estate appraisal in Iowa (193F IAC 1 to 17). The rules provide that the Board has adopted the Uniform Standards of Professional Appraisal Practice issued by The Appraisal Foundation [193F IAC 1.1(1)]. The rules do not currently adopt the minimum qualifications for real property appraisers established May 1, 2018 by the Appraiser Qualifications Board of The Appraisal Foundation.
Michigan: Rules of the Michigan Department of Licensing and Regulatory Affairs address the practice of real estate appraisal in Michigan (Mich Admin Code, R 339.23101 to R 339.23405). The rules reference the Uniform Standards of Professional Appraisal Practice, and specifically provide (Mich Admin Code, R 339.23104) that the following individuals are exempt from the requirements of Standard 3 (Appraisal Review, Development):
- A member of the Board of Real Estate Appraisers who is performing an investigation or testifying at an adjudicatory hearing on behalf of the Department.
- A member of the Board of Real Estate Appraisers who is serving in the capacity of a reviewer while reviewing the work experience of an applicant for licensure.
- An investigator employed by or retained by the Department who is performing an investigation or testifying at an adjudicatory hearing.
The Michigan Statutes, Section 339.2610, adopts the minimum education, examination, and experience requirements contained in the qualifications for real property appraisers established by the Appraiser Qualifications Board of The Appraisal Foundation. Minnesota: The Minnesota Statutes, Sections 82B.02 to 82B.24, address the practice of real estate appraisal in Michigan. The statutes define “standards of professional practice to mean the Uniform Standards of Professional Appraisal Practice of the Appraisers Standards Board of The Appraisal Foundation in effect as of January 1, 1991, or other version of the standards designated by the Commissioner of the Department of Commerce (Minnesota Statutes, Section 82B.021, Subdivision 26). The statutes do not currently adopt the minimum qualifications for real property appraisers established May 1, 2018 by the Appraiser Qualifications Board of The Appraisal Foundation.
Summary of factual data and analytical methodologies:
The proposed rules were developed by, in consultation with the Real Estate Appraisers Board, reviewing the provisions of chs. SPS 85 to 87 to ensure the rules are consistent with current professional and licensing practices and applicable Wisconsin statutes and federal regulations. Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
The proposed rules were posted for a period of 14 days to solicit public comment on economic impact, including how the proposed rules may affect businesses, local government units, and individuals. No comments were received.
Fiscal Estimate and Economic Impact Analysis:
The Fiscal Estimate and Economic Impact Analysis document is attached.
Effect on small business:
These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1), Stats. The Department’s Regulatory Review Coordinator may be contacted by email at Kirsten.Reader@wisconsin.gov, or by calling (608) 267-2435. Agency contact person:
Dale Kleven, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, Wisconsin 53708-8366; telephone (608) 261-4472; email at DSPSAdminRules@wisconsin.gov. Place where comments are to be submitted and deadline for submission:
Comments may be submitted to Dale Kleven, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, WI 53708-8366, or by email to DSPSAdminRules@wisconsin.gov. Comments must be received at or before the public hearing to be held at 9:00 a.m. on February 12, 2019, to be included in the record of rule-making proceedings. ------------------------------------------------------------------------------------------------------------
TEXT OF RULE
SUBCHAPTER I
AUTHORITY, INTENT, ADOPTION OF STANDARDS, AND DEFINITIONS
Section 2. SPS 85.110 is amended to read:
SPS 85.110 Intent. The intent of the department in adopting chs. SPS 85 to 87 is to establish minimum standards for professional appraisal practice for certified and licensed appraisers which that are consistent with the uniform standards Uniform Standards of professional appraisal practice promulgated Professional Appraisal Practice issued by the Appraisal Standards Board of the The Appraisal Foundation. It is further intended that these rules shall establish standards of competency such that persons certified or licensed as appraisers are qualified to perform appraisals for federally related transaction under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 USC 3331 et seq. Section 3. SPS 85.115 is created to read:
SPS 85.115 Adoption of standards. The Uniform Standards of Professional Appraisal Practice, 2018-2019, issued by the Appraisal Standards Board of The Appraisal Foundation, are incorporated by reference into chs. SPS 85 to 87. Note: Copies of the standards are on file in the offices of the department and the legislative reference bureau. A copy of the standards may be purchased from the organization listed or may be reviewed on the organization’s website at no cost.
Section 4. SPS 85.120 (1), (2), (3), (Note), (6), (14), (15), (17), and (18) are amended to read:
SPS 85.120 (1) “Accredited college or university" means an institution which is accredited by the Commission on Colleges, a national or regional accreditation association, or by a regional or national an accrediting agency recognized by the U.S. department of education.
(2) “Appraiser Appraisal experience" means experience obtained by the performance of appraisals, appraisal reviews, appraisal consulting assignments, or mass appraisals in accordance with the uniform standards Uniform Standards of professional appraisal practice Professional Appraisal Practice in effect at the time the experience is obtained.
(3) “AQB" means the appraiser qualifications board Appraiser Qualifications Board of the appraisal foundation The Appraisal Foundation.
(6) “CLEP" means college level examination program College Level Examination Program.
(14) “Fee and staff appraisal" means a real property appraisal developed and reported in accordance with Standards 1 and 2 of the uniform standards Uniform Standards of professional appraisal practice Professional Appraisal Practice.
(15) “FIRREA" means the financial institutions reform Financial Institutions Reform, recovery Recovery, and enforcement act Enforcement Act of 1989.
(17) “Hour of appraisal experience" means 60 minutes of verifiable time spent performing tasks as identified in s. SPS 85.700 (1) (b) in accordance with the uniform standards of professional appraisal practice, in effect at the time the tasks were performed appraisal experience.
(18) “Mass appraisal" means an appraisal performed in accordance with Standard Standards 5 and 6 of the USPAP Uniform Standards of Professional Appraisal Practice.
Section 5. SPS 85.120 (22) is repealed.
Section 6. SPS 85.120 (23) is renumbered SPS 85.120 (1m) and amended to read:
SPS 85.120 (1m) “Real estate Appraisal consulting" means the performance of consulting services in accordance with Standards 4 and 5 of the uniform standards Uniform Standards of professional appraisal practice Professional Appraisal Practice.
Section 7. SPS 85.120 (24) and (26) are amended to read:
SPS 85.120 (24) “Supervision" means direct, personal, and active oversight by a certified or licensed appraiser of employees or associates who assist in the preparation of appraisals.
(26) “Uniform standards Standards of professional appraisal practice Professional Appraisal Practice" or (“USPAP)” means the standards promulgated issued by the appraisal standards board Appraisal Standards Board of the appraisal foundation The Appraisal Foundation for the performance of real estate appraisals.
Section 8. SPS 85.200 is amended to read:
SPS 85.200 Prerequisite to submitting credential application. Prior to submitting an application for a licensed or certified real estate appraiser credential, an individual shall successfully complete the education and experience hours required under s. ss. SPS 85.310 and 85.320, 85.410 and 85.420, or 85.510 and, 85.320, 85.420, 85.520, as appropriate. Section 9. SPS 85.210 (intro.), (1), (2), (3), (5), and (7) are renumbered SPS 85.210 (1) (intro.) and (a) to (e) and amended to read:
SPS 85.210 (1) (intro.) An applicant for certification or licensure shall apply on a form provided by the department. Any applicant who files an application for certification or licensure, but does not comply with a request for information related to the application within 120 calendar days from the date of the request, shall file a new application and fee if certification or licensure is sought at a later date. A qualified applicant with a disability shall be provided with reasonable accommodations. The application shall include all of the following:
(a) A The application fee as established by the department plus and the annual registry fees required under s. 458.21, Stats.
(b) A Subject to ss. 111.321, 111.322, and 111.335, Stats., a statement relating to any pending criminal charge or conviction record, subject to ss. 111.321, 111.322 and 111.335, Stats. An applicant who has a pending criminal charge or has a conviction record shall provide the department with all related information necessary for the department to determine whether the circumstances of the pending charge or conviction substantially relate to the practice of appraisal. (c) Evidence of successful completion of the educational course work required in ss. under s. SPS 85.320, 85.420, and or 85.520 for licensure or certification. (d) Evidence of successful completion of the national and state examinations as specified in under s. SPS 85.600.
(e) The roster of appraisal experience required under s. SPS 85.700 (3).
Section 10. SPS 85.210 (Note) is amended to read:
SPS 85.210 (Note) Applications are available from the Department of Safety and Professional Services, Division of Professional Credential Processing, 1400 East Washington Avenue, P.O. Box 8935, Madison, WI 53708-8935 or from the department's website at: http://dsps.wi.gov. Section 11. SPS 85.210 (2m) and (3m) are created to read:
SPS 85.210 (2m) The department may request additional information to determine if an applicant is qualified for certification or licensure. Failure by an applicant to comply with a request for additional information within 120 days from the date of the request shall void the application and require the applicant to reapply for certification or licensure.
(3m) The department shall provide an applicant with a disability reasonable accommodations for completing an application.
Section 12. SPS 85.220 (1) (intro.) and (2) (intro.), (b), (c), and (Note) are amended to read:
SPS 85.220 (1) (intro.) Requirements. An appraiser who holds a current appraiser certificate in another state, which is not currently limited, suspended, or revoked, may use the titles described under s. 458.055, Stats., when performing an appraisal in this state, if all of the following apply:
(2) (intro.) Application. An appraiser seeking a temporary registration shall apply on a form provided by the department. An applicant who fails to comply with a request for information related to the application for registration within 120 calendar days from the date of the request, shall submit a new application and fee if registration is sought at a later date. The application shall include all of the following:
(b) A description of the appraisal assignment in this state, including, but not limited to, information pertaining to the type of property being appraised, the location and approximate size of the property, the anticipated completion date, and the name and address of the lender requesting the appraisal.
(c) A Subject to ss. 111.321, 111.322, and 111.335, Stats., a statement relating to any pending criminal charge or conviction record, subject to ss. 111.321, 111.322 and 111.335, Stats. An applicant who has a pending criminal charge or has a conviction record shall provide the department with all related information necessary for the department to determine whether the circumstances of the pending charge or conviction substantially relate to the practice of appraisal. (Note) Applications are available from the Department of Safety and Professional Services, Division of Professional Credential Processing, 1400 East Washington Avenue, P.O. Box 8935, Madison, WI 53708-8935 or from the department's website at: http://dsps.wi.gov. Section 13. SPS 85.220 (3) and (4) are created to read:
SPS 85.220 (3) Request for additional information. The department may request additional information to determine if an applicant is qualified for a temporary registration. Failure by an applicant to comply with a request for additional information within 120 days from the date of the request shall void the application and require the applicant to reapply for temporary registration.
(4) Accomodations. The department shall provide an applicant with a disability reasonable accommodations for completing an application.
Section 14. SPS 85.230 (1) (a) (Note) and (c) (intro.), 1., and 2. are amended to read:
SPS 85.230 (1) (a) (Note) Application forms are available on request to the Department of Safety and Professional Services, Division of Professional Credentialing, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708-8935 or from the department's website at: http://dsps.wi.gov. (c) (intro.) Submit evidence satisfactory to the department that he or she has satisfied the applicant meets all of the following requirements:
1. Holds The applicant holds a current appraiser license or certification in another state or territory of the United States, which is not currently limited, suspended, or revoked and which that was granted in accordance with the requirements set forth under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 USC 3331 et seq of FIRREA. 2. Has passed Successful completion of the examination under s. SPS 85.600 on Wisconsin statutes and rules of this state governing appraisers, as provided under s. SPS 85.600. Section 15. SPS 85.230 (1) (c) 3. is renumbered SPS 85.230 (1) (d) and amended to read:
SPS 85.230 (1) (d) Subject to ss. 111.321., 111.322, and 111.335, Stats., does not have an arrest provide a statement relating to any pending criminal charge or conviction record. An applicant who has a pending criminal charge or a conviction record shall provide the department with all related information necessary for the department to determine whether the circumstances of the pending charge or conviction substantially relate to the practice of appraisal.
