BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2519|
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THIRD READING
Bill No: AB 2519
Author: Bill Berryhill (R)
Amended: 5/3/12 in Assembly
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 8-0,
6/25/12
AYES: Price, Emmerson, Corbett, Correa, Negrete McLeod,
Strickland, Vargas, Wyland
NO VOTE RECORDED: Hernandez
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/10/12 (Consent) - See last page
for vote
SUBJECT : Real estate appraisers: licensing
SOURCE : California Government Relations Subcommittee of
the
Appraisal Institute
DIGEST : This bill specifies a number of required or
discretionary disciplinary actions to be taken by the
Office of Real Estate Appraisers (OREA) against its
licensees, and makes other changes to the law governing
real estate appraisers and appraisal management companies
(AMCs).
ANALYSIS :
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Existing law:
1. Defines "appraisal" as a written statement
independently and impartially prepared by a qualified
appraiser setting forth an opinion in a federally
related transaction as to the market value of an
adequately described property as of a specific date,
supported by the presentation and analysis of relevant
market information.
2. Authorizes the Director of the OREA to adopt
regulations governing the process and procedure of
licensing and disciplining real estate appraisers.
3. Authorizes the Director to issue a citation to a
licensee or course provider that may impose a
requirement to complete an education course or courses,
as specified. If the licensee fails to satisfactorily
or timely complete the required education course, the
license is automatically suspended.
4. Authorizes OREA to publish a summary of public
disciplinary actions against licensees and registrants,
including resignations while under investigation.
5. Provides that a holder of a valid real estate broker
license shall be deemed to have completed the experience
requirements for licensure, upon proof that he or she
has accumulated 1,000 hours of experience in the
valuation of real property.
6. Requires fingerprinting and background checks by the
Department of Justice (DOJ) for applicants for real
estate appraiser licenses and each controlling person of
an applicant for registration as an AMC.
7. Requires AMCs to comply with specified standards
regarding appraisers who act as independent contractors,
including standards relating to licensure, performance
of appraisal services, and appraisal reports.
8. Prohibits a registered AMC from requiring an appraiser
to provide the AMC with the appraiser's digital
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signature or seal. An appraiser may voluntarily provide
his or her digital signature or seal to another person.
9. Requires licensing and issuance-related fees to be paid
to the OREA at the time of submitting the application
and allows fees to be paid, among other means, by
government purchase order.
10.Requires applications for a license be submitted to
OREA within one year of the successful completion of a
required examination.
This bill:
1. Prohibits the renewal of a license if the licensee
fails to satisfactorily complete the additional
education requirements imposed by the citation.
2. Authorizes the office to institute or continue
disciplinary proceedings against a licensee or
registrant despite the expiration, suspension,
cancellation, forfeiture of the license and certificate
of registration.
3. Requires each real estate appraiser applicant and each
controlling person of each applicant for registration as
an AMC to submit to the DOJ fingerprint images and
information via LiveScan. If the applicant is located
out-of-state, the applicant shall include his/her
fingerprint card with the application package and the
OREA shall submit the fingerprint cards to the DOJ.
4. Adds employee appraisers of AMCs to existing law
requirements that apply to AMC independent contractor
appraisers, and makes conforming changes.
5. Allows an appraiser to voluntarily provide his/her
digital signature or seal to another person only to the
extent permissible under the Uniform Standards of
Professional Appraiser Practice.
6. Deletes a requirement that issuance-related fees be
paid at the time the issuance application is submitted,
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deletes a provision allowing payment of fees by
government purchase order, and makes conforming changes.
7. Specifies that an applicant for licensure shall not be
eligible to have a license issued unless he/she notifies
the OREA within one year of successful completion of a
required examination.
8. Repeals existing law providing that a holder of a valid
real estate broker license shall be deemed to have
completed the experience requirements for licensure upon
proof of accumulating 1,000 hours of experience in the
valuation of real property.
9. Deletes reference to the Resolution Trust Corporation.
10.Repeals reference to inclusion of application and
issuance fees as part of the fee for an original or
renewal certification.
Background
The OREA is responsible for regulating the practice of real
estate appraisers in California, by ensuring that only
qualified persons are licensed to conduct appraisals in
federally related real estate loan transactions and that
all real estate appraisers licensed by the state adhere to
applicable laws, regulations, and standards. Originally
enacted in 1990, the OREA was established and charged with
developing and implementing a real estate appraiser
licensing program that complied with the federal mandate
established by Congress in 1989 as a result of the savings
and loan disaster of the late 1980's. That mandate, Title
XI of the Financial Institutions Reform, Recovery and
Enforcement Act, requires states to license and certify
real estate appraisers who appraise property for federally
related transactions.
OREA currently licenses more than 13,800 licensed
appraisers in California, with some 200 new licenses issued
and 6,000 licenses renewed in FY 2009/2010. There are four
levels of appraiser licensees: appraiser trainee (AT);
appraiser licensee (AL); certified residential (AR); and
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certified general (AG). Levels of licensure are
distinguished by increasing levels of education,
experience, and scope of practice (property type,
transaction value and supervision level). When a licensee
wishes to move to up to a higher level of licensure, they
must meet the qualifications and apply to upgrade the
license.
The Director of the OREA, who serves as the chief executive
of the OREA, is appointed by the Governor, subject to
confirmation by the Senate Rules Committee. The Director
is mandated to administer and enforce the Real Estate
Appraisers Licensing and Certification Law.
Related Legislation
SB 706 (Price), Chapter 712, Statutes of 2011, makes
numerous enforcement changes to the Department of Real
Estate and the OREA, requires specified licensing boards to
post information about licensees on the Internet, and made
updating and conforming changes.
SB 6 (Calderon), Chapter 716, Statues of 2011, updates
California's Real Estate Law, Appraisal Law, and Civil
Code, to reflect recent changes enacted at the federal
level, pursuant to the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank).
SB 2357 (Calderon), Chapter 173, Statutes of 2009, creates
a registration program for AMCs, as defined, within the
OREA, and requires AMCs to meet similar existing licensing
program requirements for independent appraisers. This bill
also specifies and clarifies prohibited acts by AMCs as
well as others who have an interest in a real estate
transaction involving an appraisal.
AB 33 (Nava, 2009) proposed to consolidate the OREA with
the Department of Real Estate. The bill also proposed a
number of other changes, including a complete
reorganization of several departments in BTH. This bill
was amended to address a different subject.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 8/7/12)
California Government Relations Subcommittee of the
Appraisal Institute (source)
ASSEMBLY FLOOR : 73-0, 5/10/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill,
Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Pan, Perea,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. Pérez
NO VOTE RECORDED: Cook, Fletcher, Furutani, Jeffries,
Norby, Olsen, V. Manuel Pérez
JJA:d 8/7/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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