BILL NUMBER: AB 2519 CHAPTERED
BILL TEXT
CHAPTER 683
FILED WITH SECRETARY OF STATE SEPTEMBER 28, 2012
APPROVED BY GOVERNOR SEPTEMBER 28, 2012
PASSED THE SENATE AUGUST 23, 2012
PASSED THE ASSEMBLY MAY 10, 2012
AMENDED IN ASSEMBLY MAY 3, 2012
INTRODUCED BY Assembly Member Bill Berryhill
FEBRUARY 24, 2012
An act to amend Sections 11315, 11340, 11343, 11345.3, 11345.45,
11345.6, 11400, 11404, 11405, and 11408 of, and to add Section
11315.3 to, the Business and Professions Code, relating to real
estate appraisers.
LEGISLATIVE COUNSEL'S DIGEST
AB 2519, Bill Berryhill. Real estate appraisers: licensing.
Existing law, the Real Estate Appraisers' Licensing and
Certification Law, provides for the licensure and regulation of real
estate appraisers and vests the duty of enforcing and administering
that law in the Office of Real Estate Appraisers. Existing law
authorizes the Director of the Office of Real Estate Appraisers to
adopt regulations governing the process and procedure of licensing
real estate appraisers, as specified.
(1) Existing law authorizes the Director of the Office of Real
Estate Appraisers to issue to a licensee, or course provider, as
specified, a citation that may impose the requirement to complete an
education course or courses by the licensee, under specified
conditions. Existing law provides for the automatic suspension of a
real estate appraiser's license if the licensee fails to
satisfactorily or timely complete an education course as imposed by
the citation.
This bill would prohibit the renewal of a license if the licensee
fails to satisfactorily complete the additional education
requirements imposed by the citation, as specified.
(2) Existing law authorizes the office to publish a summary of
public disciplinary actions taken by the office against licensees and
registrants, including resignations while under investigation.
This bill would authorize the office to institute or continue
disciplinary proceedings against a licensee or registrant, or to
suspend or revoke a license or certificate of registration,
notwithstanding the expiration, or suspension, cancellation, or
forfeiture by operation of law, or by an order of the office or a
court of law, of the license or certificate of registration, as
specified.
(3) Existing law requires fingerprinting and background checks, as
specified, by the Department of Justice of applicants for real
estate appraiser licenses and each controlling person of an applicant
for registration as an appraisal management company.
This bill would require the applicants for real estate appraiser
licenses and each controlling person of each applicant for
registration as an appraisal management company to submit to the
Department of Justice fingerprint images and information via
LiveScan. The bill would also require that applicants located out of
state submit fingerprint cards with their application package, for
submission by the office to the department.
(4) Existing law sets forth standards with which an appraisal
management company needs to comply regarding independent contractor
appraisers, including standards relating to licensure, performance of
appraisal services, and appraisal reports.
This bill would, in addition, make these requirements applicable
to employee appraisers, as specified.
(5) Existing law prohibits a registered appraisal management
company from requiring an appraiser to provide it with the appraiser'
s digital signature or seal. Existing law, however, allows an
appraiser to provide his or her digital signature or seal to another
person voluntarily.
This bill would allow an appraiser to provide his or her digital
signature or seal to another person only to the extent permissible
under the Uniform Standards of Professional Appraiser Practice.
(6) Existing law requires the department to charge licensing and
issuance-related fees to each applicant, and requires that these fees
be paid to the office at the time of filing the application.
Existing law also provides that fees may be paid, among other means,
by government purchase order.
This bill would remove the requirement that issuance-related fees
be paid at the time of filing that application. The bill would also
delete the provision allowing payment of these fees by government
purchase order.
(7) Existing law requires that applications for a license be
submitted to the office within one year of the successful completion
of the required examination.
This bill would instead specify that an applicant is not eligible
to have a license issued unless he or she notifies the office within
one year of successful completion of the required examination.
(8) This bill would also delete an obsolete reference and make
other conforming changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 11315 of the Business and Professions Code is
amended to read:
11315. (a) The director may issue to a licensee, applicant for
licensure, person who acts in a capacity that requires a license
under this part, course provider, applicant for course provider
accreditation, or a person who, or entity that, acts in a capacity
that requires course provider accreditation, a citation that may
contain an order to pay an administrative fine assessed by the office
if the person or entity is in violation of this part or any
regulations adopted to carry out its purposes.
(b) A citation shall be written and describe with particularity
the nature of the violation, including a specific reference to the
provision of law determined to have been violated.
(c) If appropriate, the citation may contain an order of abatement
fixing a reasonable time for abatement of the violation.
(d) (1) If appropriate, the citation may contain an order to
enroll in and successfully complete additional basic or continuing
education courses.
(2) When a citation imposes an education course or courses, the
completion of the course or courses by the licensee shall be subject
to the following conditions:
(A) The citation imposing the education requirement may specify
the specific course content, the number of hours to be completed, the
date by which the course is to be completed, and the method by which
satisfaction of the order is to be reported to the office.
(B) An education course imposed by citation may not be credited
towards the licensee's continuing education requirements pursuant to
Section 11360.
(C) Only courses accredited by the office shall be accepted for
purposes of fulfilling education imposed by citation.
(D) Any failure to satisfactorily complete or timely report an
education course to the office by the date specified in the citation
shall result in the automatic suspension of the licensee's real
estate appraiser license as of that date. A license shall not be
renewed prior to the satisfactory completion of an education course
specified in the citation, unless the citation provides for a
completion date that is subsequent to the license renewal date.
(E) Reinstatement of a license suspended pursuant to subparagraph
(D) shall be made only if all of the following events occur:
(i) Satisfactory verification of the completion of the education
course or courses imposed by the citation.
(ii) Completion and filing of a reinstatement application.
(iii) Payment of all applicable fees, fines, or penalties.
(e) In no event shall an administrative fine assessed by the
office by citation or order exceed ten thousand dollars ($10,000) per
violation. In assessing a fine, the office shall give due
consideration to the appropriateness of the amount of the fine with
respect to factors such as the gravity of the violation, the good
faith of the person who committed the violation, and the history of
previous violations.
(f) A citation or fine assessment issued pursuant to a citation
shall inform the person cited that, if he or she desires a hearing to
contest the finding of a violation, he or she must request a hearing
by written notice to the office within 30 days of the date of
issuance of the citation or assessment. Hearings shall be held
pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code. The citation or fine
assessment shall also inform the person cited that failure to respond
to the citation or fine assessment shall result in any order or
administrative fine imposed becoming final, and that any order or
administrative fine shall constitute an enforceable civil judgment in
addition to any other penalty or remedy available pursuant to law.
(g) (1) If a licensee, applicant for licensure, person who acts in
a capacity that requires a license under this part, course provider,
applicant for course provider accreditation, or a person who, or
entity that, acts in a capacity that requires course provider
accreditation fails to pay a fine, penalty, or required installment
payment on the fine or penalty by the date when it is due, the
director shall charge him or her interest and a penalty of 10 percent
of the fine or installment payment amount. Interest shall be charged
at the pooled money investment rate.
(2) Failure of a licensee, applicant for licensure, person who
acts in a capacity that requires a license under this part, course
provider, applicant for course provider accreditation, or a person
who, or entity that, acts in a capacity that requires course provider
accreditation to pay a fine or required installment payment on the
fine within 30 days of the date ordered in the citation, unless the
citation is being appealed, shall be cause for additional
disciplinary action by the office.
(3) If a citation is not contested and a fine or fine payment is
not paid within 30 days of the date ordered in the citation or other
order of the director, the full amount of the unpaid balance of the
assessed fine shall be added to any fee for renewal of a license. A
license shall not be renewed prior to payment of the renewal fee and
fine.
(4) The director may order the full amount of any fine to be
immediately due and payable if any payment due on a fine is not
received by the office within 30 days of its due date.
(5) Any fine, or interest thereon, not paid within 30 days of a
final citation or order shall constitute a valid and enforceable
civil judgment.
(6) A certified copy of the final order, or the citation with
certification by the office that no request for hearing was received
within 30 days of the date of issuance of the citation, shall be
conclusive proof of the civil judgment, its terms, and its validity.
(h) A citation may be issued without the assessment of an
administrative fine.
(i) Any administrative fine or penalty imposed pursuant to this
section shall be in addition to any other criminal or civil penalty
provided for by law.
(j) Administrative fines collected pursuant to this section shall
be deposited in the Real Estate Appraisers Regulation Fund.
SEC. 2. Section 11315.3 is added to the Business and Professions
Code, to read:
11315.3. The suspension, expiration, or forfeiture by operation
of law of a license or certificate of registration issued by the
office, or its suspension, forfeiture, or cancellation by order of
the office or by order of a court of law, or its surrender without
the written consent of the office, shall not, during any period in
which it may be renewed, restored, reissued, or reinstated, deprive
the office of its authority to institute or continue a disciplinary
proceeding against the licensee or registrant upon any ground
provided by law or to enter an order suspending or revoking the
license or certificate of registration, or otherwise taking
disciplinary action against the licensee or registrant on any such
ground.
SEC. 3. Section 11340 of the Business and Professions Code is
amended to read:
11340. The director shall adopt regulations governing the process
and the procedure of applying for a license which shall include, but
not be limited to, necessary experience or education, equivalency,
and minimum requirements of the Appraisal Foundation, if any.
(a) For purposes of the educational background requirements
established under this section, the director shall grant credits for
any courses taken on real estate appraisal ethics or practices
pursuant to Section 10153.2, or which are deemed by the director to
meet standards established pursuant to this part and federal law.
(b) For the purpose of implementing and applying this section, the
director shall prescribe by regulation "equivalent courses" and
"equivalent experience." The experience of employees of an assessor's
office or of the State Board of Equalization in setting forth
opinions of value of real property for tax purposes shall be deemed
equivalent to experience in federally related real estate appraisal
activity. Notwithstanding any other law, a holder of a valid real
estate broker license shall be deemed to have completed appraisal
license application experience requirements upon proof that he or she
has accumulated 1,000 hours of experience in the valuation of real
property.
(c) The director shall adopt regulations for licensure which shall
meet, at a minimum, the requirements and standards established by
the Appraisal Foundation and the federal financial institutions
regulatory agencies acting pursuant to Section 1112 of the Financial
Institutions Reform Recovery and Enforcement Act of 1989, Public Law
101-73 (FIRREA). The director shall, by regulation, require the
application for a real estate appraiser license to include the
applicant's social security number.
(d) In evaluating the experience of any applicant for a license,
regardless of the number of hours required of that applicant, the
director shall apply the same standards to the experience of all
applicants.
(e) No license shall be issued to an applicant who is less than 18
years of age.
SEC. 4. Section 11343 of the Business and Professions Code is
amended to read:
11343. (a) Each real estate appraiser license applicant and each
controlling person of each applicant for registration as an appraisal
management company shall submit to the Department of Justice
fingerprint images and related information required by the Department
of Justice via LiveScan for the purposes of allowing the office to
obtain information as to the existence and content of a record of
state or federal convictions and state or federal arrests and also
information as to the existence and content of a record of state or
federal arrests for which the Department of Justice establishes that
the person is free on bail or on his or her own recognizance pending
trial or appeal. If the applicant is located out of state, then the
applicant shall include his or her fingerprint card with the
application package and the office shall submit the fingerprint cards
to the Department of Justice for the purposes of this subdivision.
(b) When received, the Department of Justice shall forward to the
Federal Bureau of Investigation requests for federal summary criminal
history information received pursuant to this section. The
Department of Justice shall review the information returned from the
Federal Bureau of Investigation and compile and disseminate a
response to the office.
(c) The Department of Justice shall provide a response to the
office pursuant to paragraph (1) of subdivision (p) of Section 11105
of the Penal Code.
(d) The office shall request from the Department of Justice
subsequent arrest notification service, as provided pursuant to
Section 11105.2 of the Penal Code, for persons described in
subdivision (a).
(e) The Department of Justice shall charge a fee sufficient to
cover the cost of processing the request described in this section.
SEC. 5. Section 11345.3 of the Business and Professions Code is
amended to read:
11345.3. The director may not issue a certificate of registration
to an appraisal management company unless the appraisal management
company confirms in its application for registration that all of its
contracts with clients include provision of each of the following as
standard business practices, as and where applicable:
(a) Ensuring that employee appraisers and independent contractor
appraisers contracted by the applicant possess all required licenses
and certificates from the office.
(b) Reviewing the work of all employee appraisers and independent
contractor appraisers contracted by the applicant to ensure that
appraisal services are performed in accordance with the Uniform
Standards of Professional Appraisal Practice.
(c) Maintaining records of each of the following for each service
request:
(1) Date of receipt of the request.
(2) Name of the person from whom the request was received.
(3) Name of the client for whom the request was made, if different
from the name of the person from whom the request was received.
(4) The appraiser or appraisers assigned to perform the requested
service.
(5) Date of delivery of the appraisal product to the client.
SEC. 6. Section 11345.45 of the Business and Professions Code is
amended to read:
11345.45. A person or entity may not structure an appraisal
assignment for, or a contract with, an employee appraiser or an
independent contractor appraiser for the purpose of evading the
provisions of this part relating to appraisal management companies.
SEC. 7. Section 11345.6 of the Business and Professions Code is
amended to read:
11345.6. (a) No registered appraisal management company may
alter, modify, or otherwise change a completed appraisal report
submitted by an employee appraiser or an independent contractor
appraiser, including, without limitation, by doing either of the
following:
(1) Permanently removing the appraiser's signature or seal.
(2) Adding information to, or removing information from, the
appraisal report with an intent to change the value conclusion.
(b) No registered appraisal management company may require an
employee or independent contractor appraiser to provide it with the
appraiser's digital signature or seal. However, nothing in this
subdivision shall be deemed to prohibit an appraiser from voluntarily
providing his or her digital signature or seal to another person, to
the extent permissible under the Uniform Standards of Professional
Appraiser Practice.
SEC. 8. Section 11400 of the Business and Professions Code is
amended to read:
11400. (a) Initial application fees shall be paid to the office
at the time of application.
(b) All fees shall be paid by cashier's check, certified check, or
money order. In addition, the office may accept personal checks or
credit cards for the payment of fees. All fees shall be deemed earned
by the office upon receipt and are refundable at the discretion of
the director.
SEC. 9. Section 11404 of the Business and Professions Code is
amended to read:
11404. The fee for an original or renewal real estate appraiser
license or appraiser trainee license shall not exceed four hundred
fifty dollars ($450).
SEC. 10. Section 11405 of the Business and Professions Code is
amended to read:
11405. The fee for an original or renewal certification as a
state certified real estate appraiser shall not exceed five hundred
twenty-five dollars ($525).
SEC. 11. Section 11408 of the Business and Professions Code is
amended to read:
11408. (a) An applicant for licensure shall not be eligible to
have a license issued unless he or she notifies the office within one
year of successful completion of the examination.
(b) Every applicant or licensee shall pay federal registry fees
and state registry processing fees to the state as required as part
of licensing fees.