BILL NUMBER: SB 237 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Calderon
FEBRUARY 24, 2009
An act to amend Sections 11302, 11314, 11315, 11315.5, 11316,
11318, 11319, 11328, 11409, and 11422 of, to add Sections 11320.5,
11345, 11345.1, 11345.2, 11345.3, 11345.4, 11345.45, 11345.5,
11345.6, and 11406.5 to, and to repeal and add Section 11343 of, the
Business and Professions Code, and to amend Section 1090.5 of the
Civil Code, relating to real estate appraisers, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 237, as introduced, Calderon. Real estate appraisers.
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. Fees and
assessments collected under these provisions are deposited into the
Real Estate Appraisers Regulation Fund, and 5% of the amount of any
license or certificate fee collected is credited to the Recovery
Account in that fund, which account is continuously appropriated.
This bill would require appraisal management companies, as
defined, to register with the Office of Real Estate Appraisers, and
would subject those entities to the provisions of the Real Estate
Appraisers' Licensing and Certification Law. The bill would require
the office to adopt regulations governing the implementation of the
registration process, with specified minimum requirements, and
establish the fees to be imposed for registration in an amount
sufficient to cover the costs incurred by the office in administering
the registration. Because of 5% of those fees would be credited to
the Recovery Account, a continuously appropriated fund, the bill
would make an appropriation. The bill would also require the
fingerprinting of 10% owners and any controlling person of an
applicant for registration with the Department of Justice, and would
require the department to charge all applicants for licensure or
registration specified fees for that fingerprinting. The bill would
also set forth standards with which an appraisal management company
would need to comply. The bill would make conforming changes within
other provisions of the Real Estate Appraisers' Licensing and
Certification Law to incorporate the changes made by this bill.
Existing law prohibits a person with an interest in a real estate
transaction involving an appraisal to improperly influence or attempt
to improperly influence, through coercion, extortion, or bribery,
the development, reporting, result, or review of a real estate
appraisal sought in connection with a mortgage loan.
This bill would enumerate specified prohibited acts under that
provision, including, but not limited to, withholding or threatening
to withhold timely payment for an appraisal, or requesting the
payment of compensation to achieve higher priority in the assignment
of appraisal business. The bill would also provide that a violation
of those prohibited acts by an appraisal management company
constitutes a violation of the Real Estate Appraisers' Licensing and
Certification Law.
Vote: majority. Appropriation: yes. Fiscal committee: 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) "Agency" means the Business, Transportation and Housing
Agency.
(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 does one or more of the following:
(A) Administers networks of independent contractor appraisers to
perform appraisals for clients.
(B) Receives requests for appraisals from one or more clients and,
for a fee paid by a client, enters into an agreement with one or
more independent appraisers to complete the appraisals contained in
the request.
(C) Otherwise serves as a third-party broker of appraisals between
clients and 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 a person or
entity that does one or more of the following:
(A) Exclusively delegates appraisal assignments to appraisers or
trainees as employees rather than independent contractors, and is
responsible for ensuring that employees complete appraisal
assignments in accordance with the Uniform Standards of Professional
Appraisal Practice.
(B) Contracts with independent appraisers acting as independent
contractors for the completion of appraisal assignments that the
person or entity cannot complete for any reason, including
competency, workload, scheduling, or geographic location.
(C) Contracts with independent appraisers acting as independent
contractors for the completion of real estate appraisal assignments
and, upon the completion of those assignments, cosigns the appraisal
reports with the independent contractor appraisers.
(d)
(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 owner, officer, or director of 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, directly or indirectly, the power
to direct or cause the direction of the management or policies of an
appraisal management company.
(e)
(g) "Director" means the Director of the
Office of Real Estate Appraisers.
(f)
(h) "Federal financial institutions
regulatory agency" means the Federal Reserve Board, Federal Deposit
Insurance Corporation, Office of the Comptroller of the Currency,
Office of Thrift Supervision, Federal Home Loan Bank System, National
Credit Union Administration, the Resolution Trust Corporation, and
any other agency determined by the director to have jurisdiction over
transactions subject to this part.
(g)
(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.
(h)
(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.
(i)
(k) "License" means any license,
certificate, permit, registration, or other means issued by the
office authorizing the person to whom it is issued to act pursuant to
this part within this state.
(j)
(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.
(k)
(m) "Office" means the Office 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) "Secretary" means the Secretary of
the Business, Transportation and Housing
Agency .
(m)
(p) "State licensed real estate appraiser"
is a person who is issued and holds a current valid license under
this part.
(n)
(q) "Uniform Standards of Professional
Appraisal Practice" are the standards of professional appraisal
practice established by the Appraisal Foundation.
(o)
(r) "Course provider" means a person or
entity that provides educational courses related to professional
appraisal practice.
SEC. 2. Section 11314 of the Business and Professions Code is
amended to read:
11314. The office is required to include in its regulations
requirements for licensure and discipline of real estate appraisers
that ensure protection of the public interest and comply in all
respects with Title XI of the Financial Institutions Reform, Recovery
and Enforcement Act of 1989, Public Law 101-73 and any subsequent
amendments thereto. Requirements for each level of licensure shall,
at a minimum, meet the criteria established by the Appraiser
Qualification Board of the Appraisal Foundation. The office may
additionally include in its regulations requirements for the
registration of appraisal management companies.
SEC. 3. 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, registrant, applicant for a certificate of
registration, 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
directing a licensee, registrant, or one or more employees of a
registrant 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 ,
registrant, or employee of a registrant 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 or the registrant's certificate of
registration as of that date.
(E) Reinstatement of a license or registration
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, registrant,
applicant for a certificate of registration, 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,
registrant, applicant for a certificate of registration, 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
or a certificate of registration . A license or a
certificate of registration 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. 4. Section 11315.5 of the Business and Professions Code is
amended to read:
11315.5. Notwithstanding any other provision of law, the office
may, at any time the director deems it to be in the public interest,
enter into a settlement of any administrative allegation of violation
of this part, or of regulations promulgated pursuant thereto, upon
any terms and conditions as the director deems appropriate. Those
settlements may include, but are not limited to, a plan for abatement
of the violation or rehabilitation or requalification of the
applicant, licensed appraiser, course provider, registrant,
or person acting in a capacity requiring a license or course
provider accreditation within a specified time.
SEC. 5. Section 11316 of the Business and Professions Code is
amended to read:
11316. (a) The director may assess a fine against a licensee,
applicant for licensure, person who acts in a capacity that requires
a license under this part, registrant, applicant for a
certificate of registration, course provider, applicant for
course provider accreditation, or a person who, or entity that, acts
in a capacity that requires course provider accreditation for
violation of this part or any regulations adopted to carry out its
purposes.
(b) (1) Failure of a licensee, applicant for licensure, person who
acts in a capacity that requires a license under this part,
registrant, applicant for a certificate of registration, 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 make a fine payment within 30 days of
the date of assessment shall result in disciplinary action by the
office. If a licensee, applicant for licensure, person who acts in a
capacity that requires a license under this part, registrant,
applicant for a certificate of registration, 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 within 30 days, the director shall
charge him or her interest and a penalty of 10 percent of the fine or
payment amount. Interest shall be charged at the pooled money
investment rate.
(2) If a fine is not paid, the full amount of the assessed fine
shall be added to any fee for renewal of a license or a
certificate of registration . A license or a certificate
of registration shall not be renewed prior to payment of the
renewal fee and fine.
(3) The director may order the full amount of any fine to be
immediately due and payable if any payment on the fine, or portion
thereof, is not received within 30 days of its due date.
(4) Any fine, or interest thereon, not paid within 30 days of a
final order shall constitute a valid and enforceable civil judgment.
(5) A certified copy of the final order shall be conclusive proof
of the validity of the order of payment and the terms of payment.
(c) 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.
(d) Administrative fines collected pursuant to this section shall
be deposited in the Real Estate Appraisers Regulation Fund.
SEC. 6. Section 11318 of the Business and Professions Code is
amended to read:
11318. (a) A licensee, applicant for licensure, controlling
person of a registrant, applicant as controlling person of a
registrant, course provider, or applicant for course provider
accreditation shall report to the office, in writing, the occurrence
of any of the following events within 30 days of the date he or she
has knowledge of any of these events:
(1) The conviction of the licensee, applicant for licensure,
controlling person of a registrant, applicant as controlling person
of a registrant, course provider, or applicant for course
provider accreditation of any of the following:
(A) A felony.
(B) Any crime related to the qualifications, functions, or duties
of a licensee or registrant , or to acts or activities
committed in the course of the licensee's , registrant's,
or course provider's practice.
As used in this section, a conviction includes an initial plea,
verdict, or finding of guilty, plea of no contest, or pronouncement
of sentence by a trial court even though that conviction may not be
final, the sentence may not be imposed, or all appeals may not be
exhausted.
(2) The cancellation, revocation, or suspension of a license,
other authority to practice, or refusal to renew a license or other
authority to practice as an occupational or professional licensee or
course provider, by any other regulatory entity.
(3) The cancellation, revocation, or suspension of the right to
practice before any governmental body or agency.
(b) The report required by subdivision (a) shall be signed by the
licensee, applicant for licensure, controlling person of a
registrant, course provider, or applicant for course provider
accreditation and clearly set forth the facts that constitute the
reportable event. The report shall include the title of the matter,
court or agency name, docket number, and dates of occurrence of the
reportable event.
(c) The licensee, applicant for licensure, controlling person
of a registrant, course provider, or applicant for course
provider accreditation shall also promptly obtain and submit a
certified copy of the police or administrative agency's investigative
report and certified copies of the court or administrative agency's
docket, complaint or accusation, and judgment or other order.
(d) A licensee, applicant for licensure, registrant,
course provider, or applicant for course provider accreditation shall
promptly respond to oral or written inquiries from the office
concerning the reportable events.
SEC. 7. Section 11319 of the Business and Professions Code is
amended to read:
11319. Notwithstanding any other provision of this code, the
Uniform Standards of Professional Appraisal Practice constitute the
minimum standard of conduct and performance for a licensee or
registrant in any work or service performed that is addressed
by those standards. If a licensee also is certified by the Board of
Equalization, he or she shall follow the standards established by the
Board of Equalization when fulfilling his or her responsibilities
for assessment purposes.
SEC. 8. Section 11320.5 is added to the Business and Professions
Code, to read:
11320.5. No person or entity shall act in the capacity of an
appraisal management company without first obtaining a certificate of
registration from the office.
SEC. 9. Section 11328 of the Business and Professions Code is
amended to read:
11328. To substantiate documentation of appraisal experience, or
to facilitate the investigation of illegal or unethical activities by
a licensee, applicant, registrant, or other person acting
in a capacity that requires a license or certificate of
registration , that licensee, applicant, registrant,
or person shall, upon the request of the director, submit copies of
appraisals, or any work product which is addressed by the Uniform
Standards of Professional Appraisal Practice, and all supporting
documentation and data to the office. This material shall be
confidential in accordance with the confidentiality provisions of the
Uniform Standards of Professional Appraisal Practice.
SEC. 10. Section 11343 of the Business and Professions Code is
repealed.
11343. (a) Each applicant for a license shall submit two
completed fingerprint cards.
(b) The fingerprint cards shall be used for the purpose of a
criminal records check of applicants and licensees through state and
federal law enforcement authorities.
(c) Results of any records check by federal law enforcement
authorities shall not be released except in accordance with federal
requirements.
SEC. 11. Section 11343 is added to the Business and Professions
Code, to read:
11343. (a) The office shall submit to the Department of Justice
fingerprint images and related information required by the Department
of Justice of all real estate appraiser license applicants and each
10 percent owner and controlling person of each applicant for
registration as an appraisal management company, for the purposes of
obtaining 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.
(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. 12. Section 11345 is added to the Business and Professions
Code, to read:
11345. The director shall adopt regulations governing the process
and procedure of applying for registration as an appraisal
management company. Applications for a certificate of registration
shall require, at a minimum, all of the following:
(a) The name of the person or entity seeking registration.
(b) The business address and telephone number of the person or
entity seeking registration.
(c) If the applicant is not a person or entity domiciled in this
state, the name and contact number of a person or entity acting as
agent for service of process in this state, along with an irrevocable
consent to service of process in favor of the office.
(d) Designation of a controlling person for the applicant who
possesses the authority to enter into contractual relationships with
clients on behalf of the applicant, direct the management and
policies of the applicant, and respond to inquiries from the office.
(e) If the applicant is an entity, the name, address, and contact
information for any person or entity owning 10 percent or more of the
applicant.
(f) Evidence in a form prescribed by the office that the applicant
has established systems to ensure compliance with Section 11345.3.
SEC. 13. Section 11345.1 is added to the Business and Professions
Code, to read:
11345.1. A certificate of registration as an appraisal management
company shall be valid for a period of two years, unless otherwise
extended or limited by the director.
SEC. 14. Section 11345.2 is added to the Business and Professions
Code, to read:
11345.2. No person may own 10 percent or more of a registrant or
applicant for registration, nor act as a controlling person for a
registrant or applicant for registration if any of the following
apply:
(a) The person has been convicted of a felony, or misdemeanor
substantially related to the activities of an appraiser or appraisal
management company.
(b) The person has had a license or certificate as an appraiser
refused, denied, canceled, or revoked in this state or any other
state.
SEC. 15. Section 11345.3 is added to the Business and Professions
Code, to read:
11345.3. The director may
not issue a certificate of registration to an appraisal management
company unless the appraisal management company demonstrates, to the
satisfaction of the director, that it has established systems to do
all of the following:
(a) Ensure that independent contractor appraisers contracted by
the applicant possess all required licenses and certificates from the
office.
(b) Review the work of all 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) Maintain a detailed record of each service request and the
independent appraiser selected for the assignment.
SEC. 16. Section 11345.4 is added to the Business and Professions
Code, to read:
11345.4. No person or entity acting in the capacity of an
appraisal management company shall improperly influence or attempt to
improperly influence the development, reporting, result, or review
of any appraisal. Examples of prohibited acts include, but are not
limited to, the following:
(a) Withholding or threatening to withhold timely payment for an
appraisal.
(b) Withholding or threatening to withhold future business for an
independent appraiser, including removal from approved panels of
appraisers.
(c) Expressly or impliedly promising future business, promotions,
or increased compensation for an independent appraiser.
(d) Conditioning the request for an appraisal service or the
payment of an appraisal fee or salary or bonus on the opinion,
conclusion, or valuation in an appraisal report, or on a preliminary
estimate or opinion requested from an independent appraiser.
(e) Requesting the payment of compensation to achieve higher
priority in the assignment of appraisal business.
(f) Requesting that an appraiser provide an estimated,
predetermined, or desired valuation in an appraisal report, or
providing to an appraiser an anticipated, estimated, encouraged, or
desired valuation in an appraisal report.
SEC. 17. Section 11345.45 is added to the Business and Professions
Code, to read:
11345.45. A person or entity may not structure an appraisal
assignment or a contract with an independent appraiser for the
purpose of evading the provisions of this part relating to appraisal
management companies.
SEC. 18. Section 11345.5 is added to the Business and Professions
Code, to read:
11345.5. A violation of Section 1090.5 of the Civil Code by a
person or entity acting in the capacity of an appraisal management
company is a violation of this part.
SEC. 19. Section 11345.6 is added to the Business and Professions
Code, to read:
11345.6. No registered appraisal management company may alter,
modify, or otherwise change a completed appraisal report submitted by
an independent appraiser.
SEC. 20. Section 11406.5 is added to the Business and Professions
Code, to read:
11406.5. The director shall, by regulation, establish the fees to
be imposed on appraisal management companies. The fees shall be
sufficient to cover the costs incurred by the office in administering
the changes to this part made by the act adding this section.
SEC. 21. Section 11409 of the Business and Professions Code is
amended to read:
11409. (a) Except as otherwise provided by law, any order issued
in resolution of a disciplinary proceeding may direct a licensee,
applicant for licensure, person who acts in a capacity that requires
a license under this part, registrant, applicant for a
certificate of registration, course provider, applicant for
course provider accreditation, or a person who, or entity that, acts
in a capacity that requires course provider accreditation found to
have committed a violation or violations of statutes or regulations
relating to real estate appraiser practice to pay a sum not to exceed
the reasonable costs of investigation, enforcement, and prosecution
of the case.
(b) Where an order for recovery of costs is made and payment is
not made within 30 days of the date directed in the office's
decision, the order for recovery shall constitute a valid and
enforceable civil judgment. This judgment shall be in addition to,
and not in place of, any other criminal or civil penalties provided
for by law.
(c) (1) Failure of a licensee, applicant for licensure, person who
acts in a capacity that requires a license under this part,
registrant, applicant for a certificate of registration, 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 recovery costs or make a recovery cost payment
within 30 days of the date ordered, shall result in disciplinary
action by the office. If the person fails to pay recovery costs
within 30 days, that person shall pay interest and a penalty of 10
percent of the recovery costs or payment amount. Interest shall be
charged at the pooled money investment rate.
(2) If recovery costs are not paid as ordered, the full amount of
the assessed fine shall be added to any fee for renewal of a license
or a certificate of registration . A license or a
certificate of registration shall not be renewed prior to
payment of the renewal fee and recovery costs.
(3) The director may order the full amount of any recovery costs
to be immediately due and payable if any payment on the recovery
costs, or portion thereof, is not received within 30 days of its due
date.
(4) Any recovery costs, or interest thereon, not paid within 30
days of a final order shall constitute a valid and enforceable civil
judgment.
(d) A certified copy of the office's decision shall be conclusive
proof of the validity of the order and its terms.
(e) The office shall not renew or reinstate the license of any
licensee or the certificate of registration of any registrant
who has failed to pay all of the costs ordered under this
section.
(f) Nothing in this section shall preclude the office from
including the recovery of the costs of investigation and enforcement
of a case in any default decision or stipulated settlement.
SEC. 22. Section 11422 of the Business and Professions Code is
amended to read:
11422. The office shall, on or before February 1, 1994, and at
least annually thereafter, transmit to the appraisal subcommittee
specified in subdivision (d) (e) of
Section 11302 a roster of persons licensed pursuant to this part.
SEC. 23. Section 1090.5 of the Civil Code is amended to read:
1090.5. (a) No person with an interest in a real estate
transaction involving an appraisal shall improperly influence or
attempt to improperly influence, through coercion, extortion, or
bribery, the development, reporting, result, or review of a real
estate appraisal sought in connection with a mortgage loan.
Examples of prohibited acts include, but are not limited to, the
following:
(1) Withholding or threatening to withhold timely payment for an
appraisal.
(2) Withholding or threatening to withhold future business for an
independent appraiser, including removal from approved panels of
appraisers.
(3) Expressly or impliedly promising future business, promotions,
or increased compensation for an independent appraiser.
(4) Conditioning the request for an appraisal service or the
payment of an appraisal fee or salary or bonus on the opinion,
conclusion, or valuation in an appraisal report, or on a preliminary
estimate or opinion requested from an independent appraiser.
(5) Requesting the payment of compensation to achieve higher
priority in the assignment of appraisal business.
(6) Requesting that an appraiser provide an estimated,
predetermined, or desired valuation in an appraisal report, or
providing to an appraiser an anticipated, estimated, encouraged, or
desired valuation in an appraisal report.
(b) Subdivision (a) does not prohibit a person with an interest in
a real estate transaction from asking an appraiser to do any of the
following:
(1) Consider additional, appropriate property information.
(2) Provide further detail, substantiation, or explanation for the
appraiser's value conclusion.
(3) Correct errors in the appraisal report.
(c) If a person who violates this section is licensed or
registered under any state licensing or registration
law and the violation occurs within the course and scope of the
person's duties as a licensee or registrant , the
violation shall be deemed a violation of that state
licensing law.
(d) Nothing in this section shall be construed to authorize
communications that are otherwise prohibited under existing law.