458.03 (3) (a) Advise the secretary on matters relating to appraisers or appraisal management companies or to the board.
458.03 (3) (b) of the statutes is amended to read:
458.03 (3) (b) At least once each year, transmit to the appraisal subcommittee of the federal financial institutions examination council, or its successor agency, a roster listing the names and addresses of certified appraisers and licensed appraisers.
458.03 (3) (c) of the statutes is created to read:
458.03 (3) (c) Transmit reports to the appraisal subcommittee on a timely basis of supervisory activities involving appraisal management companies or other 3rd-party providers of appraisals and appraisal management services, as defined in s. 458.31 (2), including investigations initiated and disciplinary actions taken.
458.04 (3) of the statutes is created to read:
458.04 (3) (a) If the secretary creates an advisory committee under s. 15.04 (1) (c), other than an advisory committee under sub. (1), to provide advice to the department on matters relating to appraisal management companies, the advisory committee shall consist of the following members:
1. One controlling individual, as defined in s. 458.31 (6).
2. One public member.
3. One member of the board who is an appraiser, who shall serve as chairperson of the advisory committee.
(b) An advisory committee under par. (a) shall report to the secretary and the board.
Subchapter II (title) of chapter 458 [precedes 458.055] of the statutes is created to read:
real estate appraisers
458.085 (1) of the statutes is amended to read:
458.085 (1) Educational requirements for general and residential appraiser certification and for appraiser licensure under this chapter subchapter.
458.085 (2) of the statutes is amended to read:
458.085 (2) Experience requirements for general and residential appraiser certification and for appraiser licensure under this chapter subchapter.
458.085 (3) of the statutes is amended to read:
458.085 (3) Continuing education requirements for renewal of certificates issued under this chapter
458.095 (intro.) of the statutes is amended to read:
458.095 Temporary use of titles; appraisers certified or licensed in other states. (intro.) A certificate under this chapter subchapter is not required for an appraiser who holds a current appraiser certificate in another state if all of the following apply:
458.105 of the statutes is amended to read:
458.105 Certificate number. The department shall assign a certificate number to each individual who is certified or licensed under this chapter subchapter and shall place the number upon each certificate prior to its issuance.
458.13 of the statutes is amended to read:
458.13 Continuing education requirements. At the time of renewal of a certificate issued under this chapter subchapter, each applicant shall submit proof that, within the 2 years immediately preceding the date on which the renewal application is submitted, he or she has satisfied the continuing education requirements specified in the rules promulgated under s. 458.085 (3).
458.21 of the statutes is amended to read:
458.21 Appraisals in federally related transactions; annual registry fee required. Each certified appraiser or licensed appraiser who performs or desires to perform an appraisal in a federally related transaction shall pay to the department the annual registry fee required by the federal financial institutions examination council appraisal subcommittee or its successor agency.
458.26 (2) of the statutes is amended to read:
458.26 (2) The department shall present the findings of any investigation of an appraiser or an applicant for a certificate under this chapter subchapter to the board for its consideration. The department shall, upon motion of the board, and may, upon its own determination, commence disciplinary proceedings on any matter under investigation concerning a certified appraiser, licensed appraiser or applicant.
458.26 (3) (intro.) of the statutes is amended to read:
458.26 (3) (intro.) Disciplinary proceedings shall be conducted by the board according to the rules promulgated under s. 440.03 (1). The department may deny any certificate under this chapter subchapter, and the board may limit, suspend or revoke any certificate under this chapter subchapter or reprimand or impose additional continuing education requirements on the holder of a certificate under this chapter subchapter, if the department or board finds that the applicant for or holder of the certificate has done any of the following:
458.26 (3) (i) of the statutes is amended to read:
458.26 (3) (i) Violated this chapter subchapter or any rule promulgated under this chapter subchapter.
458.26 (4) of the statutes is amended to read:
458.26 (4) In addition to or in lieu of a reprimand or denial, limitation, suspension or revocation of a certificate under sub. (3), the board may assess against a certified appraiser, licensed appraiser or applicant for a certificate under this chapter subchapter a forfeiture of not less than $100 nor more than $1,000 for each violation enumerated under sub. (3).
458.30 of the statutes is amended to read:
458.30 Penalties. Any person who violates this chapter subchapter or any rule promulgated under this chapter subchapter may be fined not more than $1,000 or imprisoned for not more than 6 months or both.
Subchapter III of chapter 458 [precedes 458.31] of the statutes is created to read:
REAL ESTATE Appraisal
458.31 Definitions. In this subchapter:
“Appraisal management company” has the meaning given in 12 CFR 34.211
“Appraisal management services” has the meaning given in 12 CFR 34.211
(3) (a) Except as provided in par. (b), “appraisal review" means the process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal assignment or appraisal review assignment related to the appraiser's data collection, analysis, opinions, conclusions, estimate of value, or compliance with the Uniform Standards of Professional Appraisal Practice described in s. 458.24.
(b) “Appraisal review" does not include any of the following:
1. A general examination for grammatical, typographical, mathematical, or other similar errors.
2. A general examination for completeness, including regulatory or client requirements as specified in the agreement process, that does not communicate an opinion of value.
“Appraiser panel” has the meaning given in 12 CFR 34.211
(5) “Client" means a person that contracts with an appraisal management company for the performance of appraisal management services for the person.
(6) “Controlling individual" means any of the following:
(a) An owner, officer, or director of an appraisal management company.
(b) An individual who is authorized by an appraisal management company to do all of the following:
1. Contract with a client.
2. Contract with an independent appraiser to perform an appraisal service.
(c) An individual who has, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company.
“Federally regulated appraisal management company" has the meaning given in 12 CFR 34.211
(8) “Independent appraiser" means an appraiser who performs an appraisal service on an independent contractor basis.
(9) “Licensed appraisal management company" means an appraisal management company licensed under s. 458.33.
“Person" has the meaning given in 12 CFR 34.211
458.32 Prohibited conduct. Except as provided under s. 458.34, no appraisal management company may do any of the following unless the company is a licensed appraisal management company:
(1) Perform appraisal management services for compensation.
(2) Advertise that the person is an appraisal management company; use the title “licensed appraisal management company," “appraisal management company," or other similar title; or otherwise hold itself out as an appraisal management company.
458.33 Licensure. (1) Application. A person applying for a license under sub. (2) shall submit an application to the department on a form prescribed by the department. The application shall include all of the following:
(a) The applicant's name, address, and telephone number.
(b) If the applicant is not a business domiciled in this state, the name, address, and telephone number of the applicant's agent for service of process in this state.
(c) The name, address, and telephone number of each person that owns more than 10 percent of the applicant.
(d) The name, address, and telephone number of the applicant's designated controlling individual under s. 458.36.
(e) A statement of the applicant in a form prescribed by the department that certifies all of the following:
1. That the applicant has in place a system to verify that each independent appraiser on the applicant's appraiser panel and any other appraiser that may perform an appraisal service for the applicant is a certified appraiser or licensed appraiser.
2. That the applicant requires all appraisers performing appraisal services for the applicant to perform appraisal services in accordance with the Uniform Standards of Professional Appraisal Practice described under s. 458.24.
3. That the applicant has in place a system to verify that all appraisal services performed for the applicant are conducted independently and free from inappropriate influence or coercion under s. 458.41 and under 15 USC 1639e
and rules promulgated under 15 USC 1639e
4. That the applicant maintains a detailed record of each request for an appraisal service that it receives, including the identity of the appraiser that performs the appraisal service.
5. That the applicant satisfies s. 458.35 (2).
(f) The information and authorizations necessary to conduct a background investigation for all of the following:
1. Each person identified in par. (c).
2. The applicant's controlling individual designated under s. 458.36.
(2) Appraisal management company license. The department shall, after an investigation, grant and issue an appraisal management company license to an appraisal management company that does all of the following:
(a) Complies with sub. (1).
(b) Pays the initial credential fee determined by the department under s. 440.03 (9) (a), but not to exceed $4,000.
(c) Meets to the satisfaction of the department any other requirements for licensure under this subchapter and under rules promulgated by the department. The department shall promulgate rules under this paragraph that require an applicant for a license under this subsection to demonstrate that the applicant is qualified to competently perform appraisal management services in compliance with all applicable state and federal laws.
The department shall conduct a background investigation that satisfies 12 CFR 34.214
(b) (2) on each person specified under sub. (1) (f) 1. and 2.
(4) Denial of license or renewal. The department may not issue or renew an appraisal management company license if any of the following applies to any person that owns more than 10 percent of the appraisal management company:
(a) The person is determined by the department not to have good moral character.
(b) The person fails to submit to a background investigation under sub. (3).
(5) Renewals. A licensed appraisal management company shall submit a renewal application, along with the applicable renewal fee determined by the department under s. 440.03 (9) (a), but not to exceed $2,000, to the department on a form prescribed by the department by the applicable renewal date specified under s. 440.08 (2) (a). A renewal under this subsection is subject to sub. (4).
458.34 Exemptions. (1) A license under s. 458.33 (2) is not required for any of the following:
(a) An appraiser that, in the ordinary course of business, contracts with an independent appraiser for the performance of an appraisal if upon completion of the appraisal the appraiser co-signs the appraisal report.