Chapter 163
2023 -- H 5532 SUBSTITUTE A
Enacted 06/20/2023

A N   A C T
RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE APPRAISER CERTIFICATION ACT

Introduced By: Representative Joseph J. Solomon

Date Introduced: February 15, 2023

It is enacted by the General Assembly as follows:
     SECTION 1. Sections 5-20.7-2, 5-20.7-3, 5-20.7-4, 5-20.7-8, 5-20.7-9, 5-20.7-10, 5-20.7-
16 and 5-20.7-17 of the General Laws in Chapter 5-20.7 entitled "Real Estate Appraiser
Certification Act" are hereby amended to read as follows:
     5-20.7-2. Definitions.
     When used in this chapter, unless the context indicates otherwise:
     (1) “Appraisal” or “real estate appraisal” means an analysis, opinion, or conclusion relating
to the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate.
An appraisal may be classified by subject matter into either a valuation or an analysis. A “valuation”
is an estimate of the value of real estate or real property. An “analysis” is a study of real estate or
real property other than estimating value.
     (2) “Appraisal Foundation” means the Appraisal Foundation incorporated as an Illinois
not-for-profit corporation on November 30, 1987. The purposes of the Appraisal Foundation are:
     (i) To establish and improve uniform appraisal standards by defining, issuing, and
promoting such standards;
     (ii) To establish appropriate criteria for the certification, licensing, and recertification of
qualified appraisers by defining, issuing, and promoting that qualification criteria; to disseminate
that qualification criteria to states, governmental entities, and others; and
     (iii) To develop or assist in the development of appropriate examinations for qualified
appraisers.
     (3) “Appraisal report” means any communication, written or oral, of an appraisal.
     (4) “Board” means the real-estate appraisal board established pursuant to the provisions of
this chapter.
     (5) “Certified appraisal” or “certified appraisal report” means an appraisal or appraisal
report given or signed and certified as such by a state-certified real estate appraiser or state-licensed
real estate appraiser. When identifying an appraisal or appraisal report as “certified,” the state-
certified real estate appraiser shall indicate on it whether he or she has been licensed or certified as
a residential or general state-certified real estate appraiser. A certified appraisal or appraisal report
represents to the public that it meets the appraisal standards defined in this chapter.
     (6) “Department” means the department of business regulation.
     (7) “Director” means the director of the department of business regulation.
     (8) “Real estate” means an identified parcel or tract of land, including improvements, if
any.
     (9) “Real property” means one or more defined interests, benefits, and rights inherent in
the ownership of real estate.
     (10) “State-certified real estate appraiser” means a person who develops and communicates
real estate appraisals reports and who holds a current, valid certificate issued to him or her them
for either general or residential real estate under the provisions of this chapter. A duly certified
appraiser is not required to hold a real estate broker’s or salesperson’s license under chapter 20.5
of this title.
     (11) "State-licensed real estate appraiser" means a person who develops and communicates
real estate appraisals appraisal reports and who holds a current, valid license issued to him or her
them for residential real estate under the provisions of this chapter. A duly licensed appraiser is not
required to hold a real estate broker's or salesperson's license under chapter 20.5 of this title.
     5-20.7-3. Certification required. Certification or license required.
     (a) No person, other than persons certified or licensed in accordance with the provisions of
this chapter, shall assume or use that title or any title, designation, or abbreviation likely to create
the impression of certification as a real estate appraiser by this state. A person who is not certified
or licensed pursuant to this chapter shall not describe or refer to any appraisal or other valuation of
real estate located in the state by the term “certified or licensed.”
     (b) This chapter precludes any person who is not certified as a state-certified real estate
appraiser from appraising real property for compensation under chapter 20.5 of this title; provided,
however, that this chapter does not preclude any person who holds a license pursuant to chapter
20.5 of this title and, in the ordinary course of business, from giving a written or oral opinion of
value of real estate for the purposes of a prospective listing, purchase, sale, or business valuation;
provided, however, that such opinion of value shall not be referred to as an appraisal.
     (c) Nothing in this chapter shall preclude a trainee directly supervised by a certified
appraiser from assisting in or preparing a certified an appraisal report and signing such appraisal
provided the appraisal is approved and signed by a certified appraiser as appropriate.
     (d) Any appraisal conducted by an institution licensed in this state to accept deposits in
connection with a loan transaction, other than those conducted by:
     (1) Federally or NCUA insured banks, savings banks, or credit unions; or
     (2) Persons regulated or licensed under title 19 or any transactions, municipal or state,
regardless of monetary value, shall require an appraisal by a licensed or certified appraiser.
     (e) Any appraisal, as defined in § 5-20.7-2, must be performed by a licensed or certified
appraiser unless specifically exempted by federal law for federally insured institutions.
     5-20.7-4. Creation of board — Composition — Appointment, terms, and
compensation of members.
     (a)(1) Within the department of business regulation, there is created the Rhode Island real
estate appraisers board which shall consist of ten (10) members to be appointed by the governor.
Six (6) of the board members shall be practicing appraisers and, for the initial board appointment,
shall be members in good standing of one of the following professional associations or the
successor associations: the American Institute of Real Estate Appraisers, the Society of Real Estate
Appraisers, the International Right of Way Association, the National Association of Independent
Fee Appraisers, or the International Association of Assessing Officers. Where possible, at least one
but not more than two (2) appraiser appointments shall be from the membership of each of these
professional organizations.
     (2) One board member shall be a member of the general public, and shall not be engaged
in the practice of real estate appraisal. One board member shall hold a real estate license under
chapter 20.5 of this title and shall not be a state-certified real estate appraiser. One member shall
be a representative of the Rhode Island banking industry. The director of the department of business
regulation or his or her the director’s designee shall serve at all times as a member of the board ex
officio without voting privileges.
     (3) The term of office of the initial members and the powers of the initial board expire on
December 31, 1991.
     (b) Commencing January 1, 1992, and subsequently, the board shall consist of ten (10)
members:
     (1) Six (6) members shall be state-certified appraisers:
     (i) Two (2) appraiser members shall be appointed for a term of three (3) years;
     (ii) Two (2) members for a term of two (2) years; and
     (iii) Two (2) members for a term of one year;
     (2) One board member shall be a member of the general public, appointed for a term of
three (3) years, and shall not be engaged in the practice of real estate appraisal;
     (3) One board member shall hold a real estate license under chapter 20.5 of this title,
appointed for a term of two (2) years and shall not be a state-certified real estate appraiser;
     (4) One member shall be a representative of the Rhode Island banking industry and shall
be appointed for a term of one year; and
     (5) The director of the department of business regulation, or his or her designee, shall serve
at all times as a member of the board ex officio without voting privileges.
     (c)(1) Successors of all members shall each be appointed for terms of three (3) years and
until their successors are appointed and qualified by subscribing to the constitutional oath of office,
which shall be filed with the secretary of state. Members to fill vacancies shall be appointed for the
unexpired term. No member shall be appointed to succeed himself or herself for more than two (2)
terms. Upon qualification of the appointed members, the board shall organize by selecting from its
members a chairperson and vice-chairperson with a term of office of one year.
     (2) The board shall meet not less than once each month or as necessary in order to conduct
its business, the dates and times of which shall be decided by a vote of the members.
     (3) Each real estate appraiser member of the board appointed as of January 1, 1992, must
be a state-certified real estate appraiser. At least one-half (½) of the appraiser members shall hold
the general appraisal certificate and not less than two (2) shall hold the residential appraisal
certificate.
     (4) Upon expiration of their terms, members of the board shall continue to hold office until
the appointment and qualification of their successors. The appointing authority may remove a
member for cause.
     (5) A quorum of the board is a majority of the voting members of the board members
appointed and/or sitting, whichever is less, with at least three (3) of these members required to be
appraiser members.
     (6) The department of business regulation, with the assistance of the board, shall implement
a program for recertification on or before July 1, 1992, and establish any reasonable rules and
regulations that are appropriate to insure that the examination, education, and experience
requirements of certificate and license holders meet the public interest and the minimum standards
of the Appraisal Foundation.
     (d) The board shall adopt a seal of any design that it prescribes. Copies of all records and
papers in the office of the board, duly certified and authenticated by its seal, shall be received in all
courts with like effect as the original. All records of the board shall be open to public inspection
under any reasonable rules and regulations that it prescribes.
     (e)(d) (e) No member of the board shall receive compensation for his or her their official
duties on the board but shall be reimbursed for his or her their actual and necessary expenses
incurred in the performance of his or her their official duties.
     5-20.7-8. Classes of certification and licensing — Residential and general.
     (a) There are two (2) classes for state-certified real estate appraisers and two (2) classes of
licensed real estate appraisers.
     (b) State-certified appraisers.
     (1) A state-certified residential real estate appraiser is a person who fulfills the
requirements for certification for the appraisal of residential real property. For the purposes of this
section, residential property means property used for noncomplex single or multi-family dwellings
of 1 — 4 units having no minimum transaction value, or property used for complex 1 — 4
residential units having a transaction value of less than two hundred fifty thousand dollars
($250,000) as required by the appraiser qualifications board of the appraisal foundation Appraiser
Quaifications Board of the Appraisal Foundation.
     (2)(a) A state-certified general real estate appraiser is a person who fulfills the requirements
for certification for the appraisal of all types of real property.
     (c) State-licensed appraisers.
     (b)(1) A state-licensed appraiser is a person who fulfills the requirements for licensing for
the appraisal of residential property as required by the appraiser qualifications board of the
appraisal foundation Appraiser Qualifications Board of the Appraisal Foundation. For
purposes of this section, residential property applies to the appraisal of noncomplex 1 — 4
residential units having a transaction value of less than one million dollars ($1,000,000) and
complex 1 — 4 residential units having a transaction value of less than two hundred fifty thousand
dollars ($250,000).
     (c)(2) A licensed appraiser trainee is an individual who has successfully completed all
requisite core courses as required by the appraisal appraiser qualifications board of the Appraisal
Foundation Appraiser Qualifications Board of the Appraisal Foundation.
     (d) [Deleted by P.L. 2013, ch. 54, § 1 and P.L. 2013, ch. 58, § 1].
     5-20.7-9. Requirements prior to certification or licensing examination. Education
requirements prior to examination.
     (a) Residential classification. As a prerequisite to taking the examination for certification
as a state-certified residential real estate appraiser, an applicant shall present evidence satisfactory
to the board that he or she the applicant has successfully completed the required classroom hours
of courses promulgated by the appraisal appraiser qualifications board of the Appraisal Foundation
Appraiser Qualifications Board of the Appraisal Foundation in subjects related to real estate
appraisal and the uniform standards of professional appraisal practice from a duly licensed real
estate school pursuant to the provisions of § 5-20.5-19 or a nationally recognized appraisal
organization, college, university, or other school approved by the appraisal appraiser qualifications
board of the Appraisal Foundation Appraiser Qualifications Board of the Appraisal
Foundation, or any other school that is approved by the board.
     (b) General classification. As a prerequisite to taking the examination for certification as a
state-certified general real estate appraiser, an applicant shall present evidence satisfactory to the
director that he or she the applicant has successfully completed the required classroom hours of
courses promulgated by the appraisal appraiser qualifications board of the Appraisal Foundation
Appraiser Qualifications Board of the Appraisal Foundation in subjects related to real estate
appraisal and the uniform standards of professional appraisal practice from a duly licensed real
estate school pursuant to the provisions of § 5-20.5-19, or a nationally recognized appraisal
organization, college, university, or other school approved by the appraisal appraiser qualifications
board of the Appraisal Foundation Appraiser Qualifications Board of the Appraisal
Foundation, or such other school as approved by the board.
     (c) Licensed real estate appraiser. As a prerequisite to taking the examination for licensing
as a state-licensed residential real estate appraiser, an applicant shall present evidence satisfactory
to the board that he or she the applicant has successfully completed the required classroom hours
of courses promulgated by the appraisal appraiser qualifications board of the Appraisal Foundation
Appraiser Qualifications Board of the Appraisal Foundation in subjects related to real estate
appraisal and the uniform standards of professional appraisal practice from a duly licensed real
estate school pursuant to the provisions of § 5-20.5-19 or a nationally recognized appraisal
organization, college, university, or other school approved by the appraisal appraiser qualifications
board of the Appraisal Foundation Appraiser Qualifications Board of the Appraisal
Foundation, or any other school that is approved by the board.
     5-20.7-10. Experience requirement. Experience requirements prior to examination.
     (a) An original certification as a state-certified real estate appraiser or licensing as a state-
licensed appraiser shall not be issued to any person who does not possess the requisite experience
in real property appraisal as required by the appraisal appraiser qualifications board of the Appraisal
Foundation and supported by adequate written reports or file memoranda. The experience must be
acquired within a period of five (5) years immediately preceding the filing of the application for
certification. The experience shall be of the type of appraisal for which the applicant is seeking
certification/licensing and shall meet the minimum standards of the Appraisal Foundation and/or
applicable federal regulations.
     (b) Each applicant for certification and licensing shall furnish, under oath, a detailed listing
of the real estate appraisal reports or file memoranda for each year for which experience is claimed
by the applicant. For an applicant for general certification at least fifty percent (50%) of the
prepared reports must demonstrate knowledge and working understanding of income capitalization
or other nonresidential reports. Upon request, the applicant shall make available to the director or
board for examination a sample of appraisal reports, which the applicant has prepared in the course
of his or her practice.
     (c) In order for a licensed trainee appraiser to be issued certification as a state-certified
appraiser or licensing as a state-licensed appraiser, the trainee must have completed the requisite
experience in real property appraisal as required by the appraisal appraiser qualifications board and
supported by adequate written reports or file memoranda. That experience must be completed under
the direct supervision of certified real estate appraisers. The trainee may rely on more than one
supervising appraiser in order to complete this experience requirement, and no certified appraiser
shall supervise more than three (3) trainees.
     5-20.7-16. Nonresident certified or licensed real estate appraisers — Secretary of state
as agent for service of process — Reciprocity.
     (a) Every applicant for certification or licensing under this chapter who is not a resident of
this state shall submit, with the application for certification or licensing, an irrevocable consent that
service of process upon him or her the applicant may be made by delivery of the process to the
secretary of state, if in an action against the applicant in a court of this state arising out of the
applicant’s activities as a state-certified or licensed real estate appraiser, the plaintiff cannot, in the
exercise of due diligence, effect personal service upon the applicant.
     (b) A nonresident of the state who has complied with the provisions of subsection (a) may
obtain a certificate as a state-certified real estate appraiser or a licensed real estate appraiser by
conforming to all of the provisions of this chapter relating to state-certified or licensed real estate
appraisers. If, in the determination by the board, another state is deemed to have substantially
equivalent certification requirements, an applicant who is certified under the laws of that other state
may obtain a certificate as a state-certified or licensed real estate appraiser in this state upon any
terms and conditions that are determined by the board.
     5-20.7-17. Continuing education prerequisite to renewal.
     (a) As a prerequisite to certificate or license renewal, a state-certified or licensed real estate
appraiser shall present evidence satisfactory to the director of having met the continuing education
requirements of this section.
     (b) The basic continuing education requirement for renewal of a certificate or license is the
completion by the applicant, during the immediately preceding term of certification, of not less
than twenty-eight (28) hours of instruction in courses or seminars from a duly licensed real estate
school pursuant to the provisions of § 5-20.5-19 or a nationally recognized appraisal organization,
college, university, or other school approved by the appraiser qualifications board of the Appraisal
Foundation or such other school as approved by the board.
     (c) In lieu of meeting the requirements of subsection (b) of this section, an applicant for
certificate or license renewal may satisfy all or part of the recertification requirements by presenting
evidence of the following:
     (1) Completion of an educational program of study determined by the board to be
equivalent, for continuing education purposes, to courses meeting the requirements of subsection
(b) of this section; or
     (2) Participation Up to one-half (1/2) of an individual's continuing education requirement
may be completed by participation other than as a student in educational processes and programs
approved by the board that relate to appraisal theory, practices, or techniques, including, but not
necessarily limited to, teaching, program development, and preparation of textbooks, monographs,
articles, and other instructional materials.
     (3) [Deleted by P.L. 2013, ch. 54, § 1 and P.L. 2013, ch. 58, § 1].
     SECTION 2. Sections 5-20.9-2, 5-20.9-4, 5-20.9-8, 5-20.9-9, 5-20.9-11 and 5-20.9-15 of
the General Laws in Chapter 5-20.9 entitled "Real Estate Appraisal Management Company
Registration Act" are hereby amended to read as follows:
     5-20.9-2. Definitions.
     (a) All definitions set forth in § 5-20.7-2 are herein incorporated by reference.
     (b) As used in this chapter, the following terms shall have the following meanings unless
the context clearly specifies otherwise:
     (1) “Appraisal” means an analysis, opinion, or conclusion relating to the nature, quality,
value, or utility of specified interests in, or aspects of, identified real estate. An appraisal may be
classified by subject matter into either a valuation or an analysis.
     (i) A “valuation” is an estimate of the value of real estate or real property.
     (ii) An “analysis” is a study of real estate or real property other than estimating value.
     (2) “Appraisal management company” means:
     (i) In connection with valuing properties collateralizing mortgage loans or mortgages
incorporated into a securitization, any external third party authorized either by a creditor of a
consumer credit transaction secured by a consumer’s principal dwelling, or by an underwriter of or
other principal in the secondary mortgage markets, that oversees a network or panel of more than
fifteen (15) certified or licensed appraisers in Rhode Island or twenty-five (25) or more nationally,
excluding those appraisers who do not provide appraisal services for covered transactions, within
a given year to:
     (A) Recruit, select, and retain appraisers;
     (B) Contract with licensed and certified appraisers to perform appraisal assignments;
     (C) Manage the process of having an appraisal performed, including providing
administrative duties such as receiving appraisal orders and appraisal reports, submitting completed
appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for
services provided, and reimbursing appraisers for services performed; or
     (D) Review and verify the work of appraisers.
     (ii) An appraisal management company does not include any entity that employs real estate
appraisers as employees for the performance of real estate appraisal services in a manner consistent
with federal regulations promulgated in accordance with § 1473 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
     (3) “Appraisal review” means the act or process of developing and communicating an
opinion about the quality of another appraiser’s work that was performed as part of an appraisal
assignment related to the appraiser’s data collection, analysis, opinions, conclusions, opinion of
value, or compliance with the Uniform Standards of Professional Appraisal Practice; provided
however, that “appraisal review” shall not include:
     (i) A general examination for grammatical, typographical, or similar errors; or
     (ii) A general examination for completeness, including regulatory or client requirements as
specified in an agreement that does not communicate an opinion of value.
     (4) “Appraiser panel” means a group of independent fee appraisers that have been selected
by an appraisal management company to perform residential real estate appraisal services for the
appraisal management company.
     (5) “Client” means any person or entity who or that contracts with, or otherwise enters into
an agreement with, an appraisal management company for the management of residential real estate
appraisal services.
     (6) “Controlling person” means:
     (i) An owner, officer, or director of a corporation, partnership, or other business entity
seeking to offer appraisal management services in this state; or
     (ii) An individual employed, appointed, or authorized by an appraisal management
company who has the authority to enter into a contractual relationship with clients for the
performance of appraisal management services and has the authority to enter into agreements with
independent appraisers for the performance of residential real estate appraisal services; or
     (iii) An individual who possesses, directly or indirectly, the power to direct or cause the
direction of the management or policies of an appraisal management company.
     (7) "Covered transaction" means any consumer credit transaction secured by the
consumer's principal dwelling.
     (7)(8) “Department” means the department of business regulation.
     (8)(9) “Director” means the director of the department of business regulation.
     (9)(10) “Independent fee appraiser” means:
     (i) A natural person who is a state-licensed or state-certified appraiser and receives a fee
for performing an appraisal, but who is not an employee of the person engaging the appraiser; or
     (ii) An organization that, in the ordinary course of business, employs state-licensed or state-
certified appraisers to perform appraisals, receives a fee for performing the appraisals, and is not
subject to § 1124 of the federal Financial Institutions Reform, Recovery and Enforcement Act of
1989 (“FIRREA”), 12 U.S.C. § 3353.
     (10)(11) “Real estate appraisal services” means the practice of developing an appraisal by
a licensed or certified appraiser in conformance with the USPAP.
     (11)(12) “USPAP” mean the Uniform Standards for Professional Appraisal Practice
published by the Appraisal Foundation.
     5-20.9-4. Requirements for registration.
     (a) Appraisal management companies shall provide the following information upon
registration:
     (1) Name and contact information of the entity seeking registration;
     (2) Name and contact information of the controlling person for the entity;
     (3) If the entity is not a corporation domiciled in this state, the name and contact
information for the company’s agent for service of process in this state; and
     (4) Name, address, and contact information for any individual or any corporation,
partnership, or other business entity who or that owns 10% or more of the appraisal management
company.
     (b) Contact information shall include the entity’s business and mailing address, telephone
number, facsimile number, and electronic mail (email) address.
     (c) An appraisal management company shall certify that the following is true upon its initial
registration and upon each renewal of its registration:
     (1) The registered entity has a system and process in place to verify that a person being
added to the appraiser panel of the appraisal management company holds a certification or license
in good standing in this state any jurisdiction to perform appraisals;
     (2) The registered entity has a system in place to periodically perform a quality assurance
review of the work of independent fee appraisers who or that are performing real estate appraisal
services on its behalf to ensure that appraisal services are being conducted in accordance with
USPAP;
     (3) The registered entity maintains a detailed record of each service request that it receives
for five (5) years;
     (4) The registered entity maintains a system to assure that the appraiser selected for an
appraisal assignment is independent of the transaction and has the requisite education, expertise,
and experience necessary to competently complete the appraisal assignment for the particular
market and property type; and
     (5) The registered entity will have a system in place to ensure that real estate appraisal
services are provided independently and free from inappropriate influence and coercion under the
appraisal independence standards established under § 129E of the Truth in Lending Act, 15 U.S.C.
§ 1639e, including the requirement that independent fee appraisers be compensated at a customary
and reasonable rate when the appraisal management company is providing services for a consumer
credit transaction secured by the principal dwelling of a consumer.
     (d) A person who, directly or indirectly, owns more than ten percent (10%) of an applicant,
or any officer, controlling person, employee in charge, or managing principal of an applicant, shall
furnish to the department authorization for a state or national criminal history background check.
An appraisal management company that has an owner of more than ten percent (10%), directly or
indirectly, or any officer, controlling person, employee in charge, or managing principal, who has
had a license or certificate to act as an appraiser or to engage in any activity related to the transfer
of real property refused, denied, canceled, or revoked in this state or in any other state, whether on
a temporary or permanent basis, or who is not of good moral character as determined by the
director, shall not be eligible for licensure.
     (e) Ownership requirements. An AMC appraisal management company shall not be
registered in this state if:
     (1) Any person who owns, in whole or in part, directly or indirectly, more than ten percent
(10%) of the AMC appraisal management company fails to submit to a background investigation,
and/or is determined by the director not to have good moral character as determined by an analysis
of the factors in § 28-5.1-14.
     (2) The AMC appraisal management company is owned in whole or in part, directly or
indirectly, by any person who has had a license or certificate to act as an appraiser refused, denied,
canceled, surrendered in lieu of revocation, or revoked in this state or in any other state for
substantive cause, as determined by the appropriate certifying and licensing agency. However, an
AMC appraisal management company is not barred from registration if the license or certificate
of the appraiser with an ownership interest was not revoked for a substantive cause and has been
reinstated by the state or states in which the appraiser was licensed or certified.
     5-20.9-8. Expiration of registration.
     A registration granted by the department pursuant to this chapter shall be valid for two (2)
years one year from the date on which it is issued.
     5-20.9-9. Grounds for denial, suspension, or revocation of registration — Fines and
penalties.
     (a) The department may deny, censure, suspend, or revoke a registration of an appraisal
management company issued under this chapter, levy fines or impose civil penalties not to exceed
five thousand dollars ($5,000) per violation, if in the opinion of the department, an appraisal
management company is attempting to perform, has performed, or has attempted to perform any of
the following acts:
     (1) The appraisal management company has filed an application for registration that, as of
its effective date or as of any date after filing, contained any statement that, in light of the
circumstances under which it was made, is false or misleading with respect to any material fact;
     (2) The appraisal management company has violated or failed to comply with any provision
of this chapter, or any rule adopted by the department;
     (3) The appraisal management company is permanently or temporarily enjoined by any
court of competent jurisdiction from engaging in or continuing any conduct or practice involving
any aspect of the real estate appraisal management business;
     (4) The appraisal management company or a controlling person thereof is the subject of an
order of the department or any other state appraiser regulatory agency denying, suspending, or
revoking that person’s license as a real estate appraiser;
     (5) The appraisal management company acted as an appraisal management company while
not properly registered with the department;
     (6) The appraisal management company has failed to pay the proper filing or renewal fee
under this chapter;
     (7) The appraisal management company has demonstrated incompetence,
untrustworthiness, or conduct or practices that render the applicant unfit to perform appraisal
management services; or
     (8) The appraisal management company has committed any of the prohibited practices set
forth in this chapter or in the department’s regulations.
     (b) The department shall provide written notice of the denial, suspension, or revocation of
a registration under this chapter. Any party aggrieved by the department’s decision regarding
registration issuance or renewal may, within ten (10) days of the decision, appeal the matter to the
director by submitting a written request for a formal hearing to be conducted in accordance with
the provisions of § 5-20.9-17 5-20.9-18.
     5-20.9-11. Controlling person and appraisal review appraiser employees.
     (a) Each appraisal management company applying to the department for a registration in
this state shall designate one controlling person who will be the principal contact for all
communication between the department and the appraisal management company.
     (b) Any employee of the appraisal management company who has the responsibility to
conduct an appraisal review, as defined in § 5-20.9-2, of the work of independent fee appraisers
must have a current USPAP certification be a state-licensed or certified appraiser.
     5-20.9-15. Adjudication of disputes between an appraisal management company and
an appraiser.
     (a) Except within the first thirty (30) days after an independent appraiser is added to the
appraiser panel of an appraisal management company, an An appraisal management company may
not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real
estate appraisal services to an independent appraiser without:
     (1) Notifying the appraiser in writing of the reasons why the appraiser is being removed
from the appraiser panel of the appraisal management company, including the alleged statutory or
USPAP violation, if any; and
     (2) Providing an opportunity for the appraiser to respond to the notification of the appraisal
management company.
     (b) An appraiser that is removed from the appraiser panel of an appraisal management
company for alleged illegal conduct, violation of the USPAP, or violation of state licensing statutes,
may file a complaint with the department for a review of the decision of the appraisal management
company. The review of the department in any such case is limited to determining whether the
appraisal management company has complied with subsection (a) of this section and whether the
appraiser has committed a violation of state law, state licensing standards, or a violation of the
USPAP.
     (c) If, after opportunity for hearing and review, the department determines that an appraisal
management company acted improperly in removing an appraiser from the appraiser panel, or that
an appraiser did not commit a violation of law, a violation of the USPAP, or a violation of state
licensing standards, the department may order that an appraiser be restored to the appraiser panel
of the appraisal management company that was the subject of the complaint, or impose any other
administrative penalties set forth in regulations.
     (d) Hearings will be conducted in accordance with § 5-20.9-17 5-20.9-18, chapter 35 of
title 42, and the department’s rules of procedure for administrative hearings.
     SECTION 3. Section 5-20.9-10 of the General Laws in Chapter 5-20.9 entitled "Real Estate
Appraisal Management Company Registration Act" is hereby repealed.
     5-20.9-10. Owner requirements.
     (a) An appraisal management company applying for a registration in this state may not be
owned or controlled by a person if such person has had a license or certification to act as an
appraiser denied or revoked in this state or in any other state, or who is not of good moral character
as determined by the director.
     (b) Each owner or controlling person of an appraisal management company in this state
shall certify to the department that such person has never had a license to act as an appraiser denied,
suspended, or revoked in this state or in any other state.
     SECTION 4. This act shall take effect upon passage.
========
LC001627/SUB A
========