2. The projected anticipated state fiscal effect during the current biennium of the proposed rule is: $0.00.
3. The projected net annualized fiscal impact on state funds of the proposed rule is: $0.00.
Initial Regulatory Flexibility Analysis
These proposed rules will be reviewed by the department through its Small Business Review Advisory Committee to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s. 227.114 (1) (a), Stats.
Copies of Rule and Contact Person
Copies of this proposed rule are available without cost upon request to: Pamela Haack, Department of Regulation and Licensing, Office of Administrative Rules, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708 (608) 266-0495.
Notice of Hearing
Regulation and Licensing
(Real Estate Appraisers Board)
Notice is hereby given that pursuant to authority vested in the Department of Regulation and Licensing in ss. 227.11 (2) and 458.24, Stats., and interpreting ss. 458.24 and 458.26 (3) (b), Stats., the Department of Regulation and Licensing will hold a public hearing at the time and place indicated below to consider an order to repeal s. RL 86.01 (6); and to repeal and recreate ch. RL 87, Appendix I, relating to the 2000 edition of the Uniform Standards of Professional Appraisal Practice (USPAP).
Hearing Information
The hearing will be held as follows:
Date and Time Location
June 28, 2000 Room 180
Wednesday 1400 East Washington Ave.
9:45 a.m. MADISON, WI
Written Comments
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Administrative Rules, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received by Friday, June 30, 2000 to be included in the record of rule-making proceedings.
Analysis Prepared by the Dept. of Regulation and Licensing
Statutes authorizing promulgation: ss. 227.11 (2) and 458.24
Statutes interpreted: ss. 458.24 and 458.26 (3) (b)
In this proposed rule-making order, the Department of Regulation and Licensing repeals s. RL 86.01 (6) and repeals and recreates the Uniform Standards of Professional Appraisal Practice (“USPAP") which is contained in ch. RL 87, Appendix I.
Section RL 86.01 (6) states that a certified or licensed appraiser shall not offer to perform, nor perform, services which he or she is not competent to perform through education or experience. This provision is being repealed because it is not consistent with the Competency Rule contained in USPAP. The Competency Rule states that prior to accepting an assignment or entering into an agreement to perform any assignment, an appraiser must properly identify the problem to be addressed and have the knowledge and experience to complete the assignment; or alternatively:
• Disclose the lack of knowledge and/or experience to the client before accepting the assignment; and
• Take all steps necessary or appropriate to complete the assignment competently; and
• Describe the lack of knowledge and/or experience and the steps taken to complete the assignment competently in the report.
The Uniform Standards of Professional Appraisal Practice set forth in ch. RL 87, Appendix I, is being repealed and recreated to include revisions contained in the 2000 edition of USPAP. Under s. 458.24, Stats., the Department is required to periodically review the “Uniform Standards of Professional Appraisal Practice" and, if appropriate, revise its rules to reflect revision to the Standards.
Key Features Of The 2000 Edition Of The Uniform Standards Of Professional Appraisal Practice (USPAP).
The 2000 edition of USPAP is the result of exposure drafts that occurred on April 27, April 28, June 25 and August 11, 1999. On the basis of written responses and substantial public testimony at Appraisal Standards Board (ASB) public hearings, the ASB formally adopted the 2000 edition of USPAP on September 15, 1999. Based on the input of professional organizations, educators, regulators, and state enforcement agencies, the effective date of the 2000 edition of USPAP is January 1, 2000.
Format:
Consecutive line numbers have been added to the text beginning with the Preamble and concluding at the end of Statement 9 (SMT-9). Consecutive line numbers have also been added to each Advisory Opinion. The line numbers are intended to facilitate references to the document, including the identification of changes from the previous action.
Ethics Rule:
The Confidentiality section has been changed to include the appraiser's obligation to “act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results" (Lines 135-136). The term “confidential factual data" has been replaced with “confidential information" (Line 138). The comment in the Confidentiality section has been modified to clarify that the section does not apply when confidential elements have been removed through redaction or the process of aggregation (Lines 144-146). The definition of confidential information was clarified by removing the reference to “publicly available" information. The revised definition focuses on information received from and identified by the client as being confidential when given to the appraiser.
Competency Rule:
The Competency Rule has been changed to acknowledge that different kinds of competency in addition to “geographic" competency may be necessary in an assignment. These include, but are not limited to, “an appraiser's familiarity with a specific type of property, a market, a geographic area, or an analytical method" (Lines 198-199). When these or potentially other forms of competency are necessary for developing credible results, appraisers are responsible for having the requisite competency to complete the assignment properly, or they must follow the steps outlined in the Rule.
Definitions:
Modifications were made to the definitions of CONFIDENTIAL INFORMATION (Line 395), PERSONAL PROPERTY (Line 439) and REPORT (Line 451.) The definition of REVIEW was replaced with a definition of APPRAISAL REVIEW (Line 358). One new definition was added: ASSIGNMENT RESULTS (Line 367).
Standard 1:
Standards Rule 1-2(f) was modified to identify more specifically the parties associated with the appraiser's scope of work obligations. Accordingly, the phrase “third party" was replaced with the “client, an intended user, or the appraiser's peers' in the same or a similar assignment" (Line 620).
Standard 2:
Standards Rule 2-4 was changed to clarify what compliance with the Rule means and to permit departure when the appraiser is not able to comply (Line 1201-1202). References to “the extent that is both possible and appropriate" and “including expert testimony" have been deleted.
Standard 3:
Changes to Standard 3 restructure the requirements for better organization, consistency, and understandability in appraisal review, clarify a number of concepts in the Standard, and incorporate personal property valuation into the Standard's text. As mentioned above, the term REVIEW was replaced with a definition of APPRAISAL REVIEW. Throughout the document, the phrases “review," “review appraisal," and “review appraiser" have been updated to “appraisal review" or “reviewer" for consistency with the revisions to Standard 3. The Comment section of the Standard clarifies the nature of appraisal review and scope of work obligations (Lines 1231-1256). Standards Rules 3-1 and 3-2 (Lines 1258-1429) have been expanded to achieve better clarity and consistency with the other development and reporting standards. Standards Rule 3-3 (Lines 1431-1439) was added to clarify how the Standard applies to oral appraisal review reports. Statement 1 (STM-1), which concerned clarifications to the Comment on Standards Rule 3-1(g) in previous editions, was retired (see below).
Standards 7 and 8:
With the exception of Standards Rule 8-5, Standards 7 and 8 were comprehensively updated to include terminology familiar to personal property appraisers, to ensure consistency, where appropriate, with the structure and concepts adopted in other parts of the document, and to assist personal property appraisers and users of personal property appraisals in understanding and applying the Standards in practice.
Standards 9 and 10:
With the exception of Standards Rules 10-1(c) and 10-5, Standards 9 and 10 were comprehensively updated to include terminology familiar to business appraisers, to ensure consistency, where appropriate, with the structure and concepts adopted in other parts of the document, and to assist business appraisers and users of business and intangible asset appraisals in understanding and applying the Standards in practice.
Statement 1:
As the subject matter of this Statement was incorporated into the changes associated with Standard 3, STM-1 was retired. However, its number and place in the document have been retained for editorial consistency (Lines 3323-3329).
Statements 3, 4, 6, 7 and 9:
These Statements have been edited to add references and/or text consistent with the terminology used in the context of Standard 8. For example, previous references to “real estate" have been eliminated and replaced with “property" or “appraisals" (Lines 3440-3576, 3686-4120, 4215-4938.)
Advisory Opinions:
Advisory Opinion 8 (AO-8) was updated to reflect current Financial Accounting Standards Board (FASB) references to “fair value." Advisory Opinion 19 (AO-19), “Unacceptable Assignment Conditions in Real Property Appraisal Assignments," was added.
Note: Administrative edits were made to all sections of the document to improve consistency.
Fiscal Estimate
1. The anticipated fiscal effect on the fiscal liability and revenues of any local unit of government of the proposed rule is: $0.00.
2. The projected anticipated state fiscal effect during the current biennium of the proposed rule is: $0.00.
3. The projected net annualized fiscal impact on state funds of the proposed rule is: $0.00.
Initial Regulatory Flexibility Analysis
These proposed rules will be reviewed by the Department through its Small Business Review Advisory Committee to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s. 227.114 (1) (a), Stats.
Copies of Rule and Contact Information
Copies of this proposed rule are available without cost upon request to:
Pamela Haack
Department of Regulation and Licensing
Office of Administrative Rules
1400 East Washington Ave., Room 171
P.O. Box 8935
Madison, WI 53708
Telephone (608) 266-0495
Notice of Hearing
Transportation
Notice is hereby given that pursuant to ss. 85.16 (1) and 348.07 (4), Stats., interpreting s. 348.07 (4), Stats., the Department of Transportation will hold a public hearing at the following location to consider the amendment of ch. Trans 276, Wis. Adm. Code, relating to allowing the operation of “double bottoms" and certain other vehicles on certain specified highways.
Hearing Information
The hearing will be held as follows:
Date and Time Location
June 29, 2000 Room 419, Hill Farms
Thursday State Trans. Bldg.
10:00 a.m. 4802 Sheboygan Ave.
