It is enacted by the General Assembly as follows:

SECTION 1. Section 5-20.5-1 of the General Laws in Chapter 5-20.5 entitled "Real Estate Brokers and Salespersons" is hereby amended to read as follows:

{ADD 5-20.5-1. Definitions. -- ADD} When used in this chapter, unless the context indicates otherwise;

(a) The term "director" shall mean the director of business regulation for the state of Rhode Island.

(b) The term "real estate", as used in this chapter, shall include leaseholds as well as any and every interest or estate in land, whether corporeal or incorporeal, freehold or non-freehold, and whether the property is situated in this state or elsewhere.

(c) The term "real estate broker", within the meaning of this chapter, shall include all persons, partnerships, associations and corporations, foreign and domestic, who for a fee, commission, or other valuable consideration, or who with the intention or expectation of receiving or collecting a fee, commission, or other valuable consideration, lists, sells, purchases, exchanges, rents, leases, appraises {ADD residential property containing four (4) or fewer units ADD} , or auctions any real estate, or the improvements thereon including options or who negotiates or attempts to negotiate any such activity; or who advertises or holds him or herself, itself or themselves out as engaged in those activities; or who directs or assists in the procuring of a purchaser or prospect calculated or intended to result in a real estate transaction; or shall negotiate or attempt to negotiate a loan secured or to be secured by mortgage or other encumbrance upon a transfer of any real estate. The term "real estate broker" shall also include any person, partnership, association or corporation employed by or on behalf of the owner or owners of lots, or other parcels of real estate, at a stated salary, or upon a fee, commission or otherwise, to sell that real estate, or any parts thereof, in lots or other parcels, and who shall sell, exchange or lease, or offer or attempt or agree to negotiate the sale, exchange or lease of any such lot or parcel of real estate.

(d) The term "real estate salesperson" shall mean and include any person employed or engaged as an independent contractor by or on behalf of a licensed real estate broker to do or deal in any activity as included or comprehended by the definitions of a real estate broker in subdivision (c) of this section, for compensation or otherwise.

(e) The term "associate broker" shall mean and include any licensed real estate broker who is employed or engaged as an independent contractor by or in behalf of a licensed real estate broker to do or deal in any activity as included or comprehended by the definitions of a real estate broker in subdivision (c) of this section, for compensation or otherwise.

SECTION 2. Sections 5-20.7-3 and 5-20.7-18 of the General Laws in Chapter 5-20.7 entitled "Real Estate Appraiser Certification Act" are hereby amended to read as follows:

{ADD 5-20.7-3. Certification required. -- ADD} (a) No person, other than persons certified 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 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".

(b) This chapter shall not preclude a person who is not certified as a state certified real estate appraiser from appraising {DEL real estate DEL} {ADD residential property containing four (4) or fewer units ADD} for compensation {DEL or other subject to any requirements DEL} under chapter 20.5 of this title.

{ADD Such appraisals may be used in any court in this state to establish residential property valuation, but shall not be utilized for mortgage lending and/or for state or municipal valuation purposes. ADD}

(c) Nothing in this chapter shall preclude a person directly supervised by a certified appraiser from assisting in or preparing a certified appraisal and signing such appraisal provided the appraisal is approved and signed by a certified appraiser as appropriate.

{ADD 5-20.7-18. Retention of records. -- ADD} (a) A state certified or licensed real estate appraiser shall retain for {DEL three (3) DEL} {ADD five (5) ADD} years, originals or true copies of all written contracts engaging his or her services for real property appraisal work, and all reports and supporting data assembled and formulated by the appraiser in preparing the reports.

(b) The {DEL three (3) DEL} {ADD five (5) ADD} year period for retention of records shall be applicable to each engagement of the services of the appraiser and shall commence upon the date of the submittal of the appraisal to the client unless, within such {DEL three (3) DEL} {ADD five (5) ADD} year period, the appraiser is notified that the appraisal or report is involved in litigation, in which event the {DEL three (3) DEL} {ADD five (5) ADD} year period for the retention of records shall {DEL commence upon DEL} {ADD be five (5) years upon the date of the submittal of the appraisal to the client or three (3) years from ADD} the date of the final disposition of such litigation {ADD , whichever is greater ADD} .

v (c) All records required to be maintained under the provisions of this chapter shall be made available by the certified real estate appraiser for inspection and copying by the board on reasonable notice to the appraiser.

SECTION 3. Section 7-11-604 of the General Laws in Chapter 7-11 entitled "Sale of Securities" is hereby amended to read as follows:

{ADD 7-11-604. Criminal penalties. -- ADD} (a) A person who willfully violates a provision of this chapter, except section 7-11-504, or a rule of the director under this chapter, or who violates section 7-11-504, knowing the statement made or omitted to be false or misleading in any material respect, is guilty of a felony {ADD and upon conviction be fined not more than ten thousand dollars ($10,000) or imprisoned not more than ten (10) years, or both ADD} .

(b) A person who willfully violates a stop order or a cease and desist order issued by the director under this chapter is guilty of a misdemeanor {ADD and shall be fined not more than one thousand dollars ($1,000) or imprisoned for not more than one (1) year, or both ADD} .

(c) A person convicted of violating a rule or order under this chapter may be fined {ADD as set forth in subsection (b) above ADD} , but may not be imprisoned, if the person proves lack of knowledge of the rule or order.

(d) No indictment {ADD or information ADD} may be brought under this section more than {DEL five (5) DEL} {ADD ten (10) ADD} years after the alleged violation.

(e) The director may refer evidence concerning violations of this chapter or a rule or order of the director under this chapter to the attorney general who may, with or without a reference, institute appropriate criminal proceedings under this chapter.

(f) Nothing in this chapter limits the power of this state to punish a person for conduct constituting a crime under other law.

SECTION 4. Chapter 42-30 of the General Laws entitled "Notaries Public and Justices of the Peace" is hereby amended by adding thereto the following section:

{ADD 42-30-16. Notary public--Fraud or deceit in office. -- ADD} {ADD A notary public, who in the exercise of the powers, or in the performance of the duties of such office, shall practice any fraud or deceit, the punishment for which is not otherwise provided for by law, shall be guilty of a misdemeanor and fined nor more than one thousand dollars ($1,000) or imprisoned not more than one (1) year or both. ADD}

SECTION 5. Sections 1 and 2 of this act shall take effect on June 1, 1995. Sections 3 and 4 of this act shall take effect upon passage.