2013 -- H 5532

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LC01263

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE APPRAISER

CERTIFICATION ACT

     Introduced By: Representatives Marshall, and O'Brien

     Date Introduced: February 14, 2013

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 5-20.7-8, 5-20.7-10 and 5-20.7-17 of the General Laws in Chapter

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5-20.7 entitled "Real Estate Appraiser Certification Act" are hereby amended to read as follows:

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     5-20.7-8. Classes of certification and licensing -- Residential and general. -- (a) There

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are two (2) classes for state certified real estate appraisers: and two (2) classes of licensed real

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estate appraisers.

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      (1) A state certified residential real estate appraiser is a person who fulfills the

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requirements for certification for the appraisal of residential real property. For the purposes of

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this section residential property means property which is used for noncomplex single or multi-

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family dwellings of 1 -- 4 units having no minimum transaction value, or property used for

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complex 1 -- 4 residential units having a transaction value of less than two hundred fifty thousand

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dollars ($250,000).

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      (2)(a) A state certified general real estate appraiser is a person who fulfills the

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requirements for certification for the appraisal of all types of real property.

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      (b) A state licensed appraiser is a person who fulfills the requirements for licensing for

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the appraisal of residential property. For purposes of this section, residential property applies to

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the appraisal of noncomplex 1 -- 4 residential units having a transaction value of less than one

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million dollars ($1,000,000) and complex 1 -- 4 residential units having a transaction value of less

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than two hundred fifty thousand dollars ($250,000).

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      (c) An individual who meets the requirements of section 5-20.7-9 shall be allowed two

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(2) years from the date of issue of a trainee license to complete the experience requirement,

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providing that the individual works directly under a certified appraiser. Upon request, the trainee

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shall be granted only a two (2) year extension to complete his or her experience requirement. No

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further extensions shall be granted. All continuing education requirements shall be fulfilled. A

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licensed appraiser trainee is an individual who has successfully completed all requisite core

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courses as required by the appraisal qualifications board.

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      (d) No certified appraiser shall supervise more than five (5) trainees.

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     5-20.7-10. Experience requirement. -- (a) An original certification as a state certified

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real estate appraiser or licensing as a state licensed appraiser shall not be issued to any person

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who does not possess the requisite experience in real property appraisal as required by the

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appraisal qualifications board of the Appraisal Foundation and supported by adequate written

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reports or file memoranda. The experience must be acquired within a period of five (5) years

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immediately preceding the filing of the application for certification. The experience shall be of

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the type of appraisal for which the applicant is seeking certification/licensing and shall meet the

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minimum standards of the Appraisal Foundation and/or applicable federal regulations.

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      (b) Each applicant for certification and licensing shall furnish, under oath, a detailed

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listing of the real estate appraisal reports or file memoranda for each year for which experience is

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claimed by the applicant. For an applicant for general certification at least fifty percent (50%) of

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the prepared reports must demonstrate knowledge and working understanding of income

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capitalization or other nonresidential reports. Upon request, the applicant shall make available to

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the director or board for examination a sample of appraisal reports, which the applicant has

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prepared in the course of his or her practice.

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     (c) In order for a licensed trainee appraiser to be issued certification as a state certified

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appraiser or licensing as a state licensed appraiser, the trainee must have completed the requisite

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experience in real property appraisal as required by the appraisal qualification board and

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supported by adequate written reports or file memoranda. That experience must be completed

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under the direct supervision of certified real estate appraisers. The trainee may rely on more than

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one supervising appraiser in order to complete this experience requirement, and no certified

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appraiser shall supervise more than three (3) trainees.

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     5-20.7-17. Continuing education prerequisite to renewal. -- (a) As a prerequisite to

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certificate or license renewal, a state certified or licensed real estate appraiser shall present

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evidence satisfactory to the director of having met the continuing education requirements of this

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section.

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      (b) The basic continuing education requirement for renewal of a certificate or license is

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the completion by the applicant, during the immediately preceding term of certification, of not

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less than twenty (20) classroom twenty-eight (28) hours of instruction in courses or seminars

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from a duly licensed real estate school pursuant to the provisions of section 5-20.5-19 or a

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nationally recognized appraisal organization, college, university, or other school approved by the

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appraiser qualifications board of the Appraisal Foundation or such other school as approved by

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the board.

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      (c) In lieu of meeting the requirements of subsection (b) of this section, an applicant for

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certificate or license renewal may satisfy all or part of the recertification requirements by

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presenting evidence of the following:

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      (1) Completion of an educational program of study determined by the board to be

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equivalent, for continuing education purposes, to courses meeting the requirements of subsection

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(b) of this section; or

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      (2) Participation other than as a student in educational processes and programs approved

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by the board which relate to appraisal theory, practices or techniques, including, but not

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necessarily limited to, teaching, program development and preparation of textbooks, monographs,

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articles, and other instructional materials.

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      (3) The director may, for good cause, renew the license and/or certificate of an

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individual pending a review of the applicant's qualifications by the board and the department. The

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renewal shall be for a period not in excess of six (6) months.

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     SECTION 2. This act shall take effect upon passage.

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LC01263

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE APPRAISER

CERTIFICATION ACT

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     This act would add two (2) new classes of state licensed real estate appraisers.

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     This act would take effect upon passage.

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LC01263

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