6. The bill requires AMCs to compensate appraisers at a rate that is reasonable
and customary, and establishes other requirements with respect to the payment and
statement of fees by AMCs.
7. The bill establishes record-keeping requirements for AMCs and allows
DSPS to audit those records.
8. The bill establishes requirements and prohibitions to ensure appraiser
independence, consistent with federal law. The bill also establishes limitations on
the removal of appraisers from AMC appraiser panels and allows DSPS to order
reinstatement of an appraiser to an appraiser panel in certain cases.
9. The bill provides for discipline of AMCs by DSPS and the board, and requires
DSPS to report violations of applicable laws to the federal Appraisal Subcommittee
of the Federal Financial Institutions Examination Council.

10. The bill makes a violation of provisions established in the bill subject to a
fine of not more than $10,000.
The bill also modifies provisions in current law pertaining to the regulation of
appraisers to also reference AMCs. Finally, the bill removes from the Real Estate
Appraisers Board one public member and replaces it with a controlling individual of
an AMC.
The bill provides that the provisions in the bill do not apply if federal law is
amended or repealed so as to allow AMCs that are not federally regulated AMCs to
perform services related to a federally related transaction without being required to
register with and be subject to supervision by a state appraiser certifying and
licensing agency as required under the act.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB453,1 1Section 1. 15.405 (10r) (a) 1m. of the statutes is created to read:
SB453,4,32 15.405 (10r) (a) 1m. One controlling individual, as defined in s. 458.31 (6). This
3subdivision does not apply if s. 458.48 applies.
SB453,2 4Section 2. 15.405 (10r) (a) 3. of the statutes is amended to read:
SB453,4,65 15.405 (10r) (a) 3. Three Two public members or, if s. 458.48 applies, 3 public
6members
.
SB453,3 7Section 3. 20.165 (1) (g) of the statutes is amended to read:
SB453,5,28 20.165 (1) (g) General program operations. The amounts in the schedule for
9the licensing, rule making, and regulatory functions of the department, other than
10the licensing, rule-making, and credentialing functions of the medical examining
11board and the affiliated credentialing boards attached to the medical examining
12board and except for preparing, administering, and grading examinations. Ninety
13percent of all moneys received under chs. 440 to 480, except ch. 448 and ss. 440.03
14(13), 440.05 (1) (b), 458.21, and 458.365, less $10 of each renewal fee received under

1s. 452.12 (5); all moneys transferred from the appropriation under par. (i); and all
2moneys received under s. 440.055 (2), shall be credited to this appropriation.
SB453,4 3Section 4. 440.03 (9) (a) (intro.) of the statutes is amended to read:
SB453,5,74 440.03 (9) (a) (intro.) Subject to pars. (b) and (c) and s. 458.33 (2) (b) and (5),
5the department shall, biennially, determine each fee for an initial credential for
6which no examination is required, for a reciprocal credential, and for a credential
7renewal by doing all of the following:
SB453,5 8Section 5. 440.03 (13) (b) 5s. of the statutes is created to read:
SB453,5,99 440.03 (13) (b) 5s. Appraisal management company.
SB453,6 10Section 6. 440.08 (2) (a) 10m. of the statutes is created to read:
SB453,5,1211 440.08 (2) (a) 10m. Appraisal management company: December 15 of each
12odd-numbered year.
SB453,7 13Section 7. Subchapter I (title) of chapter 458 [precedes 458.01] of the statutes
14is created to read:
SB453,5,1515 chapter 458
SB453,5,1616 subchapter I
SB453,5,1717 general provisions
SB453,8 18Section 8. 458.01 (2m) of the statutes is created to read:
SB453,5,2019 458.01 (2m) “Appraisal management company" has the meaning given in 12
20CFR 34.211
(c).
SB453,9 21Section 9 . 458.01 (3m) of the statutes is created to read:
SB453,5,2322 458.01 (3m) “Appraisal subcommittee" has the meaning given in 12 USC 3350
23(2).
SB453,10 24Section 10. 458.03 (1) (c) of the statutes is amended to read:
SB453,6,3
1458.03 (1) (c) Submit to the board a copy of any legislation proposed by the
2department relating to appraisers or appraisal management companies or to the
3board, prior to introduction in the legislature.
SB453,11 4Section 11. 458.03 (1) (dm) of the statutes is created to read:
SB453,6,75 458.03 (1) (dm) Transmit the annual registry fees paid to the department under
6s. 458.365 to the federal financial institutions examination council or its successor
7agency.
SB453,12 8Section 12. 458.03 (2) of the statutes is amended to read:
SB453,6,119 458.03 (2) The department may prepare letters and bulletins and conduct
10clinics disseminating information to appraisers and appraisal management
11companies
.
SB453,13 12Section 13. 458.03 (3) (a) of the statutes is amended to read:
SB453,6,1413 458.03 (3) (a) Advise the secretary on matters relating to appraisers or
14appraisal management companies
or to the board.
SB453,14 15Section 14. 458.03 (3) (b) of the statutes is amended to read:
SB453,6,1916 458.03 (3) (b) At least once each year, transmit to the appraisal subcommittee
17of the federal financial institutions examination council, or its successor agency, a
18roster listing the names and addresses of certified appraisers and licensed
19appraisers.
SB453,15 20Section 15. 458.03 (3) (c) of the statutes is created to read:
SB453,6,2421 458.03 (3) (c) Transmit reports to the appraisal subcommittee on a timely basis
22of supervisory activities involving appraisal management companies or other
233rd-party providers of appraisals and appraisal management services, as defined in
24s. 458.31 (2), including investigations initiated and disciplinary actions taken.
SB453,16 25Section 16. 458.04 (3) of the statutes is created to read:
SB453,7,4
1458.04 (3) (a) If the secretary creates an advisory committee under s. 15.04 (1)
2(c), other than an advisory committee under sub. (1), to provide advice to the
3department on matters relating to appraisal management companies, the advisory
4committee shall consist of the following members:
SB453,7,55 1. One controlling individual, as defined in s. 458.31 (6).
SB453,7,66 2. One public member.
SB453,7,87 3. One member of the board who is an appraiser, who shall serve as chairperson
8of the advisory committee.
SB453,7,109 (b) An advisory committee under par. (a) shall report to the secretary and the
10board.
SB453,17 11Section 17. Subchapter II (title) of chapter 458 [precedes 458.055] of the
12statutes is created to read:
SB453,7,1313 chapter 458
SB453,7,1414 subchapter II
SB453,7,1515 real estate appraisers
SB453,18 16Section 18. 458.085 (1) of the statutes is amended to read:
SB453,7,1817 458.085 (1) Educational requirements for general and residential appraiser
18certification and for appraiser licensure under this chapter subchapter.
SB453,19 19Section 19. 458.085 (2) of the statutes is amended to read:
SB453,7,2120 458.085 (2) Experience requirements for general and residential appraiser
21certification and for appraiser licensure under this chapter subchapter.
SB453,20 22Section 20. 458.085 (3) of the statutes is amended to read:
SB453,7,2423 458.085 (3) Continuing education requirements for renewal of certificates
24issued under this chapter subchapter.
SB453,21 25Section 21. 458.095 (intro.) of the statutes is amended to read:
SB453,8,4
1458.095 Temporary use of titles; appraisers certified or licensed in
2other states.
(intro.) A certificate under this chapter subchapter is not required for
3an appraiser who holds a current appraiser certificate in another state if all of the
4following apply:
SB453,22 5Section 22. 458.105 of the statutes is amended to read:
SB453,8,8 6458.105 Certificate number. The department shall assign a certificate
7number to each individual who is certified or licensed under this chapter subchapter
8and shall place the number upon each certificate prior to its issuance.
SB453,23 9Section 23. 458.13 of the statutes is amended to read:
SB453,8,14 10458.13 Continuing education requirements. At the time of renewal of a
11certificate issued under this chapter subchapter, each applicant shall submit proof
12that, within the 2 years immediately preceding the date on which the renewal
13application is submitted, he or she has satisfied the continuing education
14requirements specified in the rules promulgated under s. 458.085 (3).
SB453,24 15Section 24. 458.21 of the statutes is amended to read:
SB453,8,20 16458.21 Appraisals in federally related transactions; annual registry
17fee required.
Each certified appraiser or licensed appraiser who performs or
18desires to perform an appraisal in a federally related transaction shall pay to the
19department the annual registry fee required by the federal financial institutions
20examination council
appraisal subcommittee or its successor agency.
SB453,25 21Section 25. 458.26 (2) of the statutes is amended to read:
SB453,9,222 458.26 (2) The department shall present the findings of any investigation of
23an appraiser or an applicant for a certificate under this chapter subchapter to the
24board for its consideration. The department shall, upon motion of the board, and

1may, upon its own determination, commence disciplinary proceedings on any matter
2under investigation concerning a certified appraiser, licensed appraiser or applicant.
SB453,26 3Section 26. 458.26 (3) (intro.) of the statutes is amended to read:
SB453,9,104 458.26 (3) (intro.) Disciplinary proceedings shall be conducted by the board
5according to the rules promulgated under s. 440.03 (1). The department may deny
6any certificate under this chapter subchapter, and the board may limit, suspend or
7revoke any certificate under this chapter subchapter or reprimand or impose
8additional continuing education requirements on the holder of a certificate under
9this chapter subchapter, if the department or board finds that the applicant for or
10holder of the certificate has done any of the following:
SB453,27 11Section 27. 458.26 (3) (i) of the statutes is amended to read:
SB453,9,1312 458.26 (3) (i) Violated this chapter subchapter or any rule promulgated under
13this chapter subchapter.
SB453,28 14Section 28. 458.26 (4) of the statutes is amended to read:
SB453,9,1915 458.26 (4) In addition to or in lieu of a reprimand or denial, limitation,
16suspension or revocation of a certificate under sub. (3), the board may assess against
17a certified appraiser, licensed appraiser or applicant for a certificate under this
18chapter subchapter a forfeiture of not less than $100 nor more than $1,000 for each
19violation enumerated under sub. (3).
SB453,29 20Section 29. 458.30 of the statutes is amended to read:
SB453,9,23 21458.30 Penalties. Any person who violates this chapter subchapter or any
22rule promulgated under this chapter subchapter may be fined not more than $1,000
23or imprisoned for not more than 6 months or both.
SB453,30 24Section 30. Subchapter III of chapter 458 [precedes 458.31] of the statutes is
25created to read:
SB453,10,1
1chapter 458
SB453,10,42 subchapter III
3 REAL ESTATE Appraisal
4 management companies
SB453,10,5 5458.31 Definitions. In this subchapter:
SB453,10,7 6(1) “Appraisal management company” has the meaning given in 12 CFR 34.211
7(c).
SB453,10,9 8(2) “Appraisal management services” has the meaning given in 12 CFR 34.211
9(d).
SB453,10,15 10(3) (a) Except as provided in par. (b), “appraisal review" means the process of
11developing and communicating an opinion about the quality of another appraiser's
12work that was performed as part of an appraisal assignment or appraisal review
13assignment related to the appraiser's data collection, analysis, opinions,
14conclusions, estimate of value, or compliance with the Uniform Standards of
15Professional Appraisal Practice described in s. 458.24.
SB453,10,1616 (b) “Appraisal review" does not include any of the following:
SB453,10,1817 1. A general examination for grammatical, typographical, mathematical, or
18other similar errors.
SB453,10,2119 2. A general examination for completeness, including regulatory or client
20requirements as specified in the agreement process, that does not communicate an
21opinion of value.
SB453,10,22 22(4) “Appraiser panel” has the meaning given in 12 CFR 34.211 (e).
SB453,10,24 23(5) “Client" means a person that contracts with an appraisal management
24company for the performance of appraisal management services for the person.
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