BILL NUMBER: AB 624	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Wilk

                        FEBRUARY 24, 2015

   An act to amend  Section   Sections 11302 and
 11319 of the Business and Professions Code, relating to real
estate appraisers.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 624, as amended, Wilk. Real estate  appraisers.
  appraisers: standards of conduct. 
   Existing law, the Real Estate Appraisers' Licensing and
Certification Law, regulates the licensing of real estate 
appraisers.   appraisers and provides definitions of
specified terms that govern the construction of that law. 
 That   Existing  law provides that the
Uniform Standards of Professional Appraisal Practice sets forth the
minimum standards of conduct and performance for real estate
appraisers  in any work or service performed   that is
addressed by those standards  . 
   This bill would make nonsubstantive changes to these provisions.
 
   This bill would instead provide that the Uniform Standards of
Professional Appraisal Practice constitutes the minimum standard of
conduct and performance for federally related real estate appraisal
activity, as defined. The bill would revise existing, and
additionally include new, definitions for specified terms for
purposes of the Real Estate Appraisers' Licensing and Certification
Law. The bill would also authorize, if a licensee is performing a
nonfederally related appraisal activity, a standard of valuation
practice, as defined, for a licensee if that practice is disclosed
to, and agreed upon, by the client, and if that practice is described
in an appraisal, as provided. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 11302 of the  
Business and Professions Code  is amended to read: 
   11302.  For the purpose of applying this part, the following
terms, unless otherwise expressly indicated, shall mean and have the
following definitions:
   (a) "Department" means the Department of Consumer Affairs.
   (b) "Appraisal" means 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.
   The term "appraisal" does not include an opinion given by a real
estate licensee or engineer or land surveyor in the ordinary course
of his or her business in connection with a function for which a
license is required under Chapter 7 (commencing with Section 6700) or
Chapter 15 (commencing with Section 8700) of Division 3, or Chapter
3 (commencing with Section 10130) or Chapter 7 (commencing with
Section 10500) and the opinion shall not be referred to as an
appraisal. This part does not apply to a probate referee acting
pursuant to Sections 400 to 408, inclusive, of the Probate Code
unless the appraised transaction is federally related.
   (c) "Appraisal Foundation" means the Appraisal Foundation that was
incorporated as an Illinois not-for-profit corporation on November
30, 1987.
   (d) (1) "Appraisal management company" means any person or entity
that satisfies all of the following conditions:
   (A) Maintains an approved list or lists, containing 11 or more
independent contractor appraisers licensed or certified pursuant to
this part, or employs 11 or more appraisers licensed or certified
pursuant to this part.
   (B) Receives requests for appraisals from one or more clients.
   (C) For a fee paid by one or more of its clients, delegates
appraisal assignments for completion by its independent contractor or
employee appraisers.
   (2) "Appraisal management company" does not include any of the
following, when that person or entity directly contracts with an
independent appraiser:
   (A) Any bank, credit union, trust company, savings and loan
association, or industrial loan company doing business under the
authority of, or in accordance with, a license, certificate, or
charter issued by the United States or any state, district,
territory, or commonwealth of the United States that is authorized to
transact business in this state.
   (B) Any finance lender or finance broker licensed pursuant to
Division 9 (commencing with Section 22000) of the Financial Code,
when acting under the authority of that license.
   (C) Any residential mortgage lender or residential mortgage
servicer licensed pursuant to Division 20 (commencing with Section
50000) of the Financial Code, when acting under the authority of that
license.
   (D) Any real estate broker licensed pursuant to Part 1 (commencing
with Section 10000) of Division 4 of the Business and Professions
Code, when acting under the authority of that license.
   (3) "Appraisal management company" does not include any person
licensed to practice law in this state who is working with or on
behalf of a client of that person in connection with one or more
appraisals for that client.
   (e) "Appraisal Subcommittee" means the Appraisal Subcommittee of
the Federal Financial Institutions Examination Council.
   (f) "Controlling person" means one or more of the following:
   (1) An officer or director of an appraisal management company, or
an individual who holds a 10 percent or greater ownership interest in
an appraisal management company.
   (2) An individual employed, appointed, or authorized by an
appraisal management company that has the authority to enter into a
contractual relationship with clients for the performance of
appraisal services and that has the authority to enter into
agreements with independent appraisers for the completion of
appraisals.
   (3) An individual who possesses the power to direct or cause the
direction of the management or policies of an appraisal management
company.
   (g) "Director" or "chief" means the Chief of the Bureau of Real
Estate Appraisers.
   (h) "Federal financial institutions regulatory agency" means the
Federal Reserve Board, Federal Deposit Insurance Corporation, Office
of the Comptroller of the Currency, Federal Home Loan Bank System,
National Credit Union Administration,  Consumer Financial
Protection Bureau,  and any other agency determined by the
director to have jurisdiction over transactions subject to this part.

   (i) "Federally related real estate appraisal activity" means the
act or process of making or performing an appraisal on real estate or
real property in a federally related transaction and preparing an
appraisal as a result of that activity.
   (j) "Federally related transaction" means any real estate-related
financial transaction which a federal financial institutions
regulatory agency engages in, contracts for or regulates and which
requires the services of a state licensed real estate appraiser
regulated by this part. This term also includes any transaction
identified as such by a federal financial institutions regulatory
agency.
   (k) "License" means any license, certificate, permit,
registration, or other means issued by the bureau authorizing the
person to whom it is issued to act pursuant to this part within this
state.
   (l) "Licensure" means the procedures and requirements a person
shall comply with in order to qualify for issuance of a license and
includes the issuance of the license.
   (m) "Office" or "bureau" means the Bureau of Real Estate
Appraisers.
   (n) "Registration" means the procedures and requirements with
which a person or entity shall comply in order to qualify to conduct
business as an appraisal management company.
   (o) "State licensed real estate appraiser" is a person who is
issued and holds a current valid license under this part.
   (p) "Uniform Standards of Professional Appraisal Practice" are the
standards of professional appraisal practice established by the
Appraisal Foundation  for use in a federally related transaction
 .
   (q) "Course provider" means a person or entity that provides
educational courses related to professional appraisal practice. 
   (r) "Nonfederally related real estate appraisal activity" means
the act or process of making or performing an appraisal on real
estate or real property for any purpose other than a federally
related transaction.  
   (s) "Standard of valuation practice" means any nationally or
internationally recognized valuation standard addressing the
credibility of an appraisal or an appraisal review. 
   SECTION 1.   SEC. 2.   Section 11319 of
the Business and Professions Code is amended to read:
   11319.  Notwithstanding any other provision of this code, the 
following shall apply:   Uniform 
    (a)     The Uniform  Standards of
Professional Appraisal Practice constitute the minimum standard of
conduct and performance for  a licensee in any work or
service performed that is addressed by those standards. If 
 federally related real estate appraisal activity. 
    (b)     If  a licensee also is
certified by the Board of Equalization, the licensee shall follow the
standards established by the Board of Equalization when fulfilling
the licensee's responsibilities for assessment purposes. 
   (c) If a licensee is performing a nonfederally related appraisal
activity, a standard of valuation practice may be utilized if that
practice is disclosed to, and agreed upon, by the client, and if that
practice is described in the appraisal. If a licensee utilizes a
standard of valuation practice other than the Uniform Standards of
Professional Appraisal Practice pursuant to this subdivision, the
licensee shall comply with the Ethics, Record Keeping, Competency,
and Scope of Work rules of the Uniform Standards of Professional
Appraisal Practice contained in the 2014-2015 edition of the Uniform
Standards of Professional Appraisal Practice.