AB533: Bill Text

AB533,8,20 458.21 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.

AB533,25 Section 25. 458.26 (2) of the statutes is amended to read:

AB533,9,2 458.26 (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.

AB533,26 Section 26. 458.26 (3) (intro.) of the statutes is amended to read:

AB533,9,10 458.26 (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:

AB533,27 Section 27. 458.26 (3) (i) of the statutes is amended to read:

AB533,9,13 458.26 (3) (i) Violated this chapter subchapter or any rule promulgated under this chapter subchapter.

AB533,28 Section 28. 458.26 (4) of the statutes is amended to read:

AB533,9,19 458.26 (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).

AB533,29 Section 29. 458.30 of the statutes is amended to read:

AB533,9,23 458.30 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.

AB533,30 Section 30. Subchapter III of chapter 458 [precedes 458.31] of the statutes is created to read:

AB533,10,1 chapter 458

AB533,10,4 subchapter III REAL ESTATE Appraisal management companies

AB533,10,5 458.31 Definitions. In this subchapter:

AB533,10,7 (1) “Appraisal management company” has the meaning given in 12 CFR 34.211 (c).

AB533,10,9 (2) “Appraisal management services” has the meaning given in 12 CFR 34.211 (d).

AB533,10,15 (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.

AB533,10,16 (b) “Appraisal review" does not include any of the following:

AB533,10,18 1. A general examination for grammatical, typographical, mathematical, or other similar errors.

AB533,10,21 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.

AB533,10,22 (4) “Appraiser panel” has the meaning given in 12 CFR 34.211 (e).

AB533,10,24 (5) “Client" means a person that contracts with an appraisal management company for the performance of appraisal management services for the person.

AB533,10,25 (6) “Controlling individual" means any of the following:

AB533,11,1 (a) An owner, officer, or director of an appraisal management company.

AB533,11,3 (b) An individual who is authorized by an appraisal management company to do all of the following:

AB533,11,4 1. Contract with a client.

AB533,11,5 2. Contract with an independent appraiser to perform an appraisal service.

AB533,11,7 (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.

AB533,11,9 (7) “Federally regulated appraisal management company" has the meaning given in 12 CFR 34.211 (k).

AB533,11,11 (8) “Independent appraiser" means an appraiser who performs an appraisal service on an independent contractor basis.

AB533,11,13 (9) “Licensed appraisal management company" means an appraisal management company licensed under s. 458.33.

AB533,11,14 (10) “Person" has the meaning given in 12 CFR 34.211 (m).

AB533,11,17 458.32 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:

AB533,11,18 (1) Perform appraisal management services for compensation.

AB533,11,22 (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.

AB533,11,25 458.33 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:

AB533,12,1 (a) The applicant's name, address, and telephone number.

AB533,12,3 (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.

AB533,12,5 (c) The name, address, and telephone number of each person that owns more than 10 percent of the applicant.

AB533,12,7 (d) The name, address, and telephone number of the applicant's designated controlling individual under s. 458.36.

AB533,12,9 (e) A statement of the applicant in a form prescribed by the department that certifies all of the following:

AB533,12,13 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.

AB533,12,16 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.

AB533,12,20 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.

AB533,12,23 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.

AB533,12,24 5. That the applicant satisfies s. 458.35 (2).

AB533,13,2 (f) The information and authorizations necessary to conduct a background investigation for all of the following:

AB533,13,3 1. Each person identified in par. (c).

AB533,13,4 2. The applicant's controlling individual designated under s. 458.36.

AB533,13,7 (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:

AB533,13,8 (a) Complies with sub. (1).

AB533,13,10 (b) Pays the initial credential fee determined by the department under s. 440.03 (9) (a), but not to exceed $4,000.

AB533,13,16 (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.

AB533,13,19 (3) Investigation. 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.

AB533,13,22 (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:

AB533,13,24 (a) The person is determined by the department not to have good moral character.

AB533,13,25 (b) The person fails to submit to a background investigation under sub. (3).

AB533,14,5 (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).

AB533,14,7 458.34 Exemptions. (1) A license under s. 458.33 (2) is not required for any of the following:

AB533,14,10 (a) A person 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 person co-signs the appraisal report.

AB533,14,11 (b) A federally regulated appraisal management company.

AB533,14,20 (c) A department or unit within a financial institution that is subject to direct regulation by an agency of the United States government that is a member of the federal financial institutions examination council or its successor, or to regulation by an agency of this state, and receives a request for the performance of an appraisal from one employee of the financial institution, and another employee of the same financial institution assigns the request for the appraisal to an appraiser that is an independent contractor to the institution. An appraisal management company that is a wholly owned subsidiary of a financial institution shall not be considered a “department or unit within a financial institution” for purposes of this paragraph.

AB533,14,22 (d) An appraisal management company that does not contract with independent appraisers for the performance of appraisal services.

AB533,14,25 (2) An appraisal management company that is exempt from licensure under sub. (1) (b) may advertise as an appraisal management company but may not hold itself out as a licensed appraisal management company.

AB533,15,4 (3) An appraisal management company that is exempt from licensure under sub. (1) (b) shall be considered a licensed appraisal management company for purposes of, and shall comply with the provisions of, ss. 458.35, 458.365, 458.37, 458.38, 458.39, 458.41, 458.43, and 458.44.

AB533,15,6 458.35 Limitations. (1) No licensed appraisal management company may do any of the following:

AB533,15,8 (a) Contract with an appraiser for the performance of an appraisal service unless the appraiser is a certified appraiser or licensed appraiser.

AB533,15,13 (b) Employ any person in a position in which the person has the responsibility to request appraisal services from an appraiser or to review the results of completed appraisal services if the person has had a license or other credential to act as an appraiser in any state denied, canceled, revoked, or surrendered in lieu of revocation unless that license or other credential was later granted or reinstated.

AB533,15,17 (c) Contract with an appraiser for the provision of appraisal services if the appraiser has had a license or other credential to act as an appraiser in any state denied, canceled, revoked, or surrendered in lieu of revocation unless the license or other credential was later granted or reinstated.

AB533,15,24 (d) Contract with any person for the provision of appraisal services if the licensed appraisal management company knows or has reason to know that the person employs or is under contract with an independent appraiser or other person for the provision of appraisal services who, as a result of disciplinary action, has had a license or other credential to act as an appraiser in any state denied, canceled, revoked, or surrendered in lieu of revocation unless the license or other credential was later granted or reinstated.

AB533,16,3 (2) No licensed appraisal management company or applicant for a license under s. 458.33 may be owned in whole or in part, directly or indirectly, by any of the following:

AB533,16,7 (a) A person who, as a result of disciplinary action, has had a license or other credential to act as an appraiser in any state denied, canceled, revoked, or surrendered in lieu of revocation unless that license or other credential was later granted or reinstated.

AB533,16,11 (b) A person that is more than 10 percent owned by another person if that other person, as a result of disciplinary action, has had a license or other credential to act as an appraiser in any state denied, canceled, revoked, or surrendered in lieu of revocation unless that license or other credential was later granted or reinstated.

AB533,16,16 458.36 Designated controlling individuals. Each applicant for a license under s. 458.33 shall designate one controlling individual who will be the primary contact for all communications between the department and the appraisal management company. An individual may be designated as a controlling individual under this section only if he or she meets all of the following criteria:

AB533,16,17 (1) The individual is a certified appraiser.

AB533,16,20 (2) The individual remains in good standing in this state and in any other state that has at any time issued the controlling individual an appraiser license or certification.

AB533,16,24 (3) The individual has never had an appraiser license or certification in this state or any other state refused, denied, canceled, revoked, or surrendered in lieu of a pending disciplinary proceeding in any jurisdiction and not subsequently reinstated or granted.

AB533,16,25 (4) The individual is of good moral character.

AB533,17,1 (5) The individual submits to a background investigation under s. 458.33 (3).

AB533,17,6 458.365 Appraisal management services in federally related transactions; annual registry fee required. Each licensed appraisal management company that performs or desires to perform appraisal management services in a federally related transaction shall pay to the department the annual registry fee required by the appraisal subcommittee or its successor agency.

AB533,17,13 458.37 Appraiser competency. (1) (a) Before assigning an appraisal service to an appraiser, a licensed appraisal management company shall verify that the appraiser has the requisite license or certification, education, expertise, experience, and competency necessary to complete the appraisal assignment for the particular market and property type in accordance with the Uniform Standards of Professional Appraisal Practice described under s. 458.24, and that the independent appraiser is a certified appraiser or licensed appraiser in good standing with the board.

AB533,17,16 (b) A licensed appraisal management company that has reviewed the work of an appraiser under sub. (4) shall consider the review for the purposes of verifying the competency of an appraiser for future work.

AB533,17,19 (2) (a) Before assigning an appraisal service to an appraiser, a licensed appraisal management company shall obtain a written declaration from the appraiser that the appraiser satisfies all of the following:

AB533,17,21 1. The appraiser is competent, or will become competent, in the property type of the assignment.

AB533,17,23 2. The appraiser is competent, or will become competent, in the geographical area of the assignment.

AB533,17,25 3. The appraiser has, or will obtain, access to appropriate data sources for the assignment.

AB533,18,3 4. The appraiser will immediately notify the licensed appraisal management company in writing if the appraiser later determines that he or she is not qualified to complete the assignment under subd. 1., 2., or 3.

AB533,18,7 (b) An appraiser that intentionally misrepresents the information provided by the appraiser to the licensed appraisal management company under par. (a) shall be subject to disciplinary action by the board under s. 458.26 or removal from the appraiser panel.