BILL ANALYSIS �
AB 2519
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Date of Hearing: May 2, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2519 (Berryhill) - As Introduced: February 24, 2012
Policy Committee: Business and
Professions Vote: 8 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
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 law governing real estate appraisers and appraisal management
companies (AMCs). Specifically, this bill:
1)Provides that a real estate appraiser's license shall not be
renewed prior to the satisfactory completion of an education
course imposed by a citation, unless the citation provides for
a completion date that is subsequent to the license renewal
date.
2)Provides that the suspension, expiration, or forfeiture of a
license or certificate of registration issued by OREA, or its
suspension, forfeiture, or cancellation by order of OREA or by
order of a court of law, or its surrender without the written
consent of OREA, shall not deprive OREA of its authority to
institute or continue a disciplinary proceeding against the
licensee or registrant, or to enter an order suspending or
revoking the license or certificate of registration, or to
otherwise taking disciplinary action against the licensee or
registrant, as specified.
3)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.
4)Specifies that an applicant for licensure shall not be
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eligible to have a license issued unless he or she notifies
OREA within one year of successful completion of a required
examination.
FISCAL EFFECT
Workload costs for OREA are minor and absorbable within existing
resources.
COMMENTS
1)Purpose . The intent of this legislation is to provide
technical changes to real estate law as it pertains to real
estate appraiser licenses. The author notes that the language
clarifies enforcement powers, modernizes the statutes and in
some cases makes changes that are necessary in order to remain
in compliance with federal law.
2)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 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.
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The Director of the Office of Real Estate Appraisers, who
serves as the chief executive of the OREA, is appointed by the
governor, subject to confirmation by the Senate Committee on
Rules. The Director is mandated to administer and enforce the
Real Estate Appraisers Licensing and Certification Law.
3)Related Legislation . SB 706 (Price) Chapter 712, Statutes of
2011, made numerous enforcement changes to the Department of
Real Estate and the OREA, required specified licensing boards
to post information about licensees on the Internet, and made
updating and conforming changes.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081