NOTICE IS HEREBY GIVEN that pursuant to ss.
227.11 (2) and
458.24, Stats., and interpreting ss.
458.24 and
458.26 (3) (b), Stats., and according to the procedure set forth in s.
227.16 (2) (e), Stats., the Department of Regulation and Licensing will adopt the following rules as proposed in this notice, without public hearing unless, within 30 days after publication of this notice, on
March 15, 2006, the Department of Regulation and Licensing is petitioned for a public hearing by 25 natural persons who will be affected by the rule; a municipality which will be affected by the rule; or an association which is representative of a farm, labor, business or professional group which will be affected by the rule.
Analysis prepared by the Department of Regulation and Licensing.
Explanation of agency authority
The Department of Regulation and Licensing is authorized under ss.
227.11 (2) and
458.24, Stats., to promulgate rules establishing the standards for appraisal practice for licensed and certified appraisers.
Related statute or rule: There are no related statutes or rules other than those listed above.
Plain language analysis: In this proposed rule-making order, the Department of Regulation and Licensing proposes to amend ch.
RL 87 Appendix I, which incorporates by reference the 2005 edition of the Uniform Standards of Professional Appraisal Practice (USPAP). Currently, the 2005 edition of USPAP states that the effective date of the publication is from January 1, 2005 to December 31, 2005. The department proposes to amend the rule to state that the effective date of the publication is from January 1, 2005 to June 30, 2006. The department also proposes to incorporate by reference the 2006 edition of USPAP.
SECTION 1. The department proposes to amend Appendix I, which incorporates by reference the 2005 edition of USPAP, to change the expiration date from December 31, 2005 to June 30, 2006. The department also proposes to amend Appendix I to incorporate by reference the 2006 edition of USPAP.
As required under s.
227.11, Stats, the department has obtained the consent of the attorney general and revisor of statutes to the incorporation of the 2005 and the 2006 editions of USPAP into the rules by reference.
Summary of, and comparison with, existing or federal regulation
The Federal 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."
The Appraisal Subcommittee of the Federal Financial Institutions Examination Council is authorized under FIRREA to monitor the requirements established by states for the certification and licensing of individuals who are qualified to perform appraisals in connection with federally related transactions.
21 USC 3333; Appraisal Subcommittee – Policy Statements Regarding State Certification and Licensing of Appraisers.
Under FIRREA, real estate appraisals performed in connection with federally related transactions are required to be performed in accordance with generally accepted appraisal standards as evidenced by the appraisal standards promulgated by the Appraisal Standards Board (ASB) of the Appraisal Foundation.
21 USC 3339; Appraisal Subcommittee – Policy Statements Regarding State Certification and Licensing of Appraisers, Statement 3.\
The appraisal standards promulgated by the ASB are contained in the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP is available on the Appraisal Foundation's website at:
http://www.appraisalfoundation.org.
Comparison with rules in adjacent states:
Under FIRREA, all states, including Illinois, Iowa, Michigan and Minnesota , must assure that certified appraisers comply with the Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board. In Wisconsin, USPAP has been incorporated by reference in Appendix I to ch.
RL 87, Code. See also, s.
458.24, Stats.
Summary of factual data and analytical methodologies:
No study resulting in the collection of factual data was used relating to this rule. The primary methodology for revising the rule is the board's analysis and determination that a rule change is necessary.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report:
The proposed rule would change the standards for appraisal practice for licensed and certified appraisers licensed in Wisconsin. There are 1,940 licensed appraisers, 1,454 certified residential appraisers, and 1,375 certified general appraisers who are licensed in Wisconsin and would have to comply with the standards. Of the licensed appraisers in Wisconsin, a majority of them probably work in small businesses.
Under the Federal Reform, Recovery and Enforcement Act (FIRREA), all states must assure that certified appraisers comply with the Uniform Standards of Appraisal Practice that are promulgated by the Appraisal Standards Board. This will be the latest update of practice standards and will not have an effect on small business.
Section
227.137, Stats., requires an “agency" to prepare an economic impact report before submitting the proposed rule-making order to the Wisconsin Legislative Council. The Department of Regulation and Licensing is not included as an “agency" in this section.
Fiscal Estimate
The proposed rule will have no impact on the department's funds.
Anticipated costs incurred by private sector:
The department finds that this rule has no significant fiscal effect on the private sector.
Effect on small business:
These proposed rules will have no significant 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
larry.martin@drl.state.wi.us, or by calling (608) 266-8608.
Agency Contact
Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708-8935. Telephone: (608) 266-0495.
Place where comments are to be submitted and deadline for submission:
Comments may be submitted to Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708-8935; email
pamela.haack@drl.state.wi.us. Comments must be received on or before March 25, 2006 to be included in the record of rule-making proceedings.
TEXT OF RULE
SECTION 1. Ch.
RL 87, Appendix
I is amended to read:
APPENDIX I
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE
The 2005 edition of the Uniform Standards of Professional Appraisal Practice (USPAP) is hereby incorporated by reference into this Appendix. The 2005 edition of USPAP is effective January 1, 2005 to December 31, 2005 June 30, 2006.
After January 1, 2005, copies of the 2005 edition of USPAP may be purchased from the Appraisal Standards Board of the Appraisal Foundation,
1029 Vermont Avenue 1155 15th Street, N.W., Suite
900 1111, Washington, D.C.
20005-3517 20005, and (202) 347-7722. After January 1, 2005, copies of the 2005 edition of USPAP may also be obtained, at no charge, from the Appraisal Foundation's website at
http://www.appraisalfoundation.org. The direct link to the electronic copy of the 2005 and prior year publications of the Uniform Standards of Professional Appraisal Practice is:
http://www.appraisalfoundation.org/html/standards.asp?FileName=current_uspap.
The 2006 edition of the Uniform Standards of Professional Appraisal Practice (USPAP) is hereby incorporated by reference into this Appendix. The 2006 edition of USPAP is effective July 1, 2006 to December 31, 2007.
After July 1, 2006, copies of the 2006 edition of USPAP may be purchased from the Appraisal Standards Board of the Appraisal Foundation, 1155 15
th Street, N.W., Suite 1111, Washington, D.C., 20005, (202) 347-7722. After July 1, 2006, copies of the 2006 edition of USPAP may also be obtained, at no charge, from the Appraisal Foundation's website at:
http://www.appraisalfoundation.org.
Note: As required under s.
227.21, Stats., the attorney general and revisor of statutes have consented to the incorporation by reference of the 2005
edition
and the 2006 editions of the Uniform Standards of Professional Appraisal Practice.
After January 1, 2005, copies Copies of the 2005
edition and the 2006 editions of the USPAP will be on file in the offices of the department, the secretary of state and the revisor of statutes.
Notice of Hearing
Regulation and Licensing
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Regulation and Licensing in ss.
227.11 (2) and
480.08 (6), Stats., and interpreting s.
480.08 (5) and
(6), the Department of Regulation and Licensing will hold a public hearing at the time and place indicated below to consider an order to repeal RL 128.03 (1) (c) and (d); and to amend RL 128.03 (1) (intro.), (a) and (b), the Note following RL 128.04 (1), the Note following RL 128.04 (1m) (e), and the Note following RL 128.04 (6) (b), relating to educational programs for auctioneers.
Hearing Date, Time and Location
Date: April 18, 2006
Time: 9:30 a.m.
Location: 1400 East Washington Avenue
Room 121A
Madison, Wisconsin
Appearances at the Hearing
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 Pamela Haack, Paralegal, Department of Regulation and Licensing, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708-8935, or by email at
pamela.haack@drl.state.wi.us. Comments must be received on or before April 28, 2006 to be included in the record of rule-making proceedings.
Analysis
Explanation of agency authority: The Department of Regulation and Licensing is authorized under s.
480.08 (6), Stats., to promulgate rules establishing requirements and procedures for registered auctioneers to complete continuing education programs or courses of study in order to qualify for renewal.
Related statute or rule: Section
480.08 (5), Stats., which states, in part, that a renewal application for an auctioneer certificate shall be accompanied by proof of completion of continuing education requirements under sub. (6).
Plain language analysis: SECTIONS 1 and 2. Under the current law, in order to renew a registration, an auctioneer must complete 12 hours of continuing education that consists of four specific courses. The subject matter of those courses include: 1) three hours in Wisconsin laws relating to auctioneer ethical and professional conduct; 2) three hours in Wisconsin laws relating to maintenance of records and trust accounts; 3) three hours in federal laws relating to auctioneering and Wisconsin laws other than those described in paragraphs 1) and 2) above, and 4) three hours in certain elective courses that are relevant to the practice and legal requirements of auctioneering.
Except for the three hour ethics course, the department proposes to revise the rules to eliminate the specific subject matter areas or topics identified in the rules. Instead, the department would identify and approve the subject matter areas or topics biennially.
SECTIONS 3, 4 and 5 amend Notes to amend the address of the department and include the department's website.
Summary of, and comparison with, existing or proposed federal regulation: There are no federal laws that govern continuing education requirements for auctioneers. Comparison with rules in adjacent states:
Illinois: Illinois requires auctioneers to complete 12 hours of continuing education, of which six include mandatory core subjects and 6 include elective subjects.
Iowa: Do not regulate auctioneers.
Michigan: Do not regulate auctioneers.
Minnesota: Do not regulate auctioneers.
Summary of factual data and analytical methodologies:
No study resulting in the collection of factual data was used relating to this rule. The primary methodology for revising the rule is the board's analysis and determination that a rule change is necessary.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report:
The proposed rule would change the specific subject matter area requirements for auctioneer continuing education requirements. There are 1,963 auctioneers licensed in Wisconsin. There are also 318 registered auction companies who are licensed in Wisconsin. It should be noted that an individual who is registered as an auctioneer may act as an auction company without having to additionally register as an auction company. Auction companies are not required to take continuing education and would not be affected by this rule change. Of the 1,963 auctioneers licensed in Wisconsin, a majority are probably small business owners.
In order for auctioneers to renew their license, the auctioneer would have to take continuing education courses. Currently, four specific courses are required for continuing education for a total of 12 hours. Except for the ethics course requirement, the remaining course requirements would be in subjects approved by the department biennially. There will be no additional reporting requirements, bookkeeping requirements, or compliance costs. This rule would merely set a standard for review of course content biennially, rather than have permanent course requirements. The same 12 hour requirement would be in place. In the future, auctioneers may have to take classes in different subjects than were required previously. This rule change will not have an effect on small business.
Section
227.137, Stats., requires an “agency" to prepare an economic impact report before submitting the proposed rule-making order to the Wisconsin Legislative Council. The Department of Regulation and Licensing is not included as an “agency" in this section.
Anticipated costs incurred by private sector:
The Department of Regulation and Licensing anticipates no significant fiscal impact on the private sector.
Fiscal Estimate
The Department of Regulation and Licensing will incur staff costs of $5,100 annually to approve an expansion of available educational courses.
Effect on small business: These proposed rules will have no significant 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
larry.martin@drl.state.wi.us, or by calling (608) 266-8608.
Agency Contact
Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708-8935. Telephone: (608) 266-0495. Email:
pamela.haack@drl.state.wi.us.
Place where comments are to be submitted and deadline for submission: Comments may be submitted to Pamela Haack, Paralegal, Department of Regulation and Licensing, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708-8935, or by email at
pamela.haack@drl.state.wi.us. Comments must be received on or before April 28, 2006 to be included in the record of rule-making proceedings.
TEXT OF RULE
SECTION 1. RL 128.03 (1) (intro.), (a) and (b) are amended to read:
RL 128.03 Courses; examinations. (1) COURSES. (intro.) The educational program shall consist of 4 courses and shall cover all of the topics under each paragraph title, be presented during no less than the number of hours stated after each paragraph title, and 12 hours, which shall include:
(a) Course A: 3 Three hours in the Wisconsin laws relating to auctioneer ethical and professional conduct.
(b) Course B: 3 Nine hours in the Wisconsin laws relating to maintenance of records and trust accounts topics pertinent to the practice of auctioneering that shall be approved by the department biennially.
SECTION 2. RL 128.03 (1) (c) and (d) are repealed.
SECTION 3. The Note following RL 128.04 (1) is amended to read:
