Bill Summary – FastDemocracy

House Study Bill 176 - Introduced
                                  SENATE/HOUSE FILE _____
                                  BY (PROPOSED DEPARTMENT OF
                                      COMMERCE/BANKING DIVISION
                                      BILL)
                            A BILL FOR
An Act relating to the Iowa appraisal standards and appraiser
  certification law and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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    Section 1. Section 543D.1, Code 2021, is amended to read as
 follows:
    543D.1 Short title.
    This chapter shall be known and may be cited as the “Iowa
 Voluntary Appraisal Standards and Appraiser Certification Law”.
    Sec. 2. Section 543D.2, Code 2021, is amended by adding the
 following new subsections:
    NEW SUBSECTION. 4A. “Appraisal review” means developing
 and communicating an opinion under the uniform standards of
 professional appraisal practice review standards regarding
 the quality of an appraiser’s work product prepared as part
 of an appraisal assignment. “Appraisal review” does not
 include quality control solely to assure an appraisal report is
 complete, or to correct grammatical, typographical, or similar
 errors.
    NEW SUBSECTION. 8A. “Federally related transaction” means
 any financial transaction related to real estate which a
 federal financial institutions regulatory agency engages in,
 contracts for, or regulates, and which requires the services
 of an appraiser pursuant to federally related transaction
 regulations.
    NEW SUBSECTION. 8B. “Federally related transaction
 regulations” means regulations established by the comptroller
 of the currency, the board of governors of the federal reserve
 system, the federal deposit insurance corporation, or the
 national credit union administration pursuant to sections 1112,
 1113, and 1114 of Tit. XI of the federal Financial Institutions
 Reform, Recovery, and Enforcement Act, 12 U.S.C. §3341 – 3343.
    Sec. 3. Section 543D.2, subsection 9, Code 2021, is amended
 to read as follows:
    9. “Review appraiser” means a person who is responsible
 for the administrative approval of the appraised value of
 real property or assures that appraisal reports conform to
 the requirements of law and policy, or that the value of real
 property estimated by appraisers represents adequate security,
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 fair market value, or other defined value conducting an
 appraisal review.
    Sec. 4. Section 543D.3, Code 2021, is amended to read as
 follows:
    543D.3 Purposes.
    1. The purpose of this chapter is to establish standards
 for real estate appraisals and a procedure for the mandatory
 certification of real estate appraisers performing appraisals
 for federally related transactions, the voluntary certification
 of real estate appraisers performing appraisals not related to
 federally related transactions, and the mandatory registration
 of associate real estate appraisers.
    1A. A person who performs an appraisal, other than an
 appraisal review, for a federally related transaction as
 it relates to real estate located in this state must be
 a certified real estate appraiser under this chapter or a
 registered associate real estate appraiser acting under the
 direct supervision of a certified real estate appraiser.
    2. A person who is not a certified real estate appraiser
 under this chapter may appraise real estate for compensation if
 certification is not required by this chapter or by federal or
 state law, rule, or policy. However, an employee of the state
 department of transportation whose duties include appraisals
 of property pursuant to chapter 6B must be a certified real
 estate appraiser under this chapter or a registered associate
 real estate appraiser acting under the direct supervision
 of a certified real estate appraiser. Notwithstanding this
 subsection, in connection with the performance of an appraisal,
 other than an appraisal review, of real estate located in this
 state, the use of the title “certified real estate appraiser”,
 “associate real estate appraiser”, or any other like title,
 including a title that suggests an individual is certified
 under the laws of this or another state, shall only be used
 to refer to or by individuals who hold a certificate or
 registration under this chapter.
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    3. An employee of the state department of transportation
 whose duties include appraisals of property pursuant to chapter
 6B must be a certified real estate appraiser under this chapter
 or a registered associate real estate appraiser acting under
 the direct supervision of a certified real estate appraiser.
    Sec. 5. Section 543D.11, Code 2021, is amended to read as
 follows:
    543D.11 Certification by reciprocity.
    1. If, in the determination by the board, another state
 is deemed to have substantially equivalent certification
 requirements, an applicant who is certified under the laws of
 the other state may obtain a certificate as a certified real
 estate appraiser upon terms and conditions as determined by the
 board.
    2. The board may recognize on a temporary basis the
 certification or license of an appraiser issued by another
 state, including where the property to be appraised is part of
 a federally related transaction. An appraiser engaging in such
 temporary practice shall register with the board, is subject to
 the full regulatory jurisdiction of the board, and is governed
 by the laws and rules administered by the board.
    Sec. 6. Section 543D.15, subsection 1, Code 2021, is amended
 to read as follows:
    1. a. The term “certified real estate appraiser” title
 “certified real estate appraiser”, “associate real estate
 appraiser”, or any other like title shall only be used to refer
 to individuals who hold the certificate or registration, as
 applicable, and shall not be used in connection with or as part
 of the name or signature of a firm, partnership, corporation,
 or group, or in a manner that it may be interpreted as
 referring to a firm, partnership, corporation, group, other
 business entity, or anyone other than an individual holder of
 the certificate or registration.
    b. In connection with an appraisal assignment, other than
 an appraisal review, performed on real estate located in this
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 state, the title “certified real estate appraiser”, “associate
 real estate appraiser”, or any other like title, including a
 title that suggests an individual is licensed or certified
 under the laws of this state or another state, shall only
 be used to refer to individuals who hold a certificate or
 registration under this chapter.
    Sec. 7. Section 543D.20, subsection 5, Code 2021, is amended
 to read as follows:
    5. Persons who appraise real estate where certification is
 not required by this chapter or by federal or state law, rule,
 or policy, and who are not assisting a certified real estate
 appraiser in the development or reporting of an appraisal
 assignment that is required by this chapter, or by federal
 or state law, rule, or policy to be performed by a certified
 real estate appraiser, are not required to register with the
 board. Notwithstanding this subsection, in connection with the
 performance, or assistance in the performance, of an appraisal
 other than an appraisal review, of real estate located in this
 state, the use of the title “associate real estate appraiser”
 or any other like title, including a title that suggests an
 individual is an associate real estate appraiser under the laws
 of this state or another state, shall only be used to refer to
 individuals who hold a registration under this chapter.
    Sec. 8. Section 543D.21, subsection 4, Code 2021, is amended
 by adding the following new paragraph:
    NEW PARAGRAPH. 0a. A violation of section 543D.3,
 subsections 1A, 2, or 3.
    Sec. 9. Section 543D.21, subsection 4, paragraph c, Code
 2021, is amended to read as follows:
    c. A violation of section 543D.20, subsection 1 or 5.
                           EXPLANATION
         The inclusion of this explanation does not constitute agreement with
          the explanation’s substance by the members of the general assembly.
  This bill relates to the Iowa appraisal standards and
appraiser certification law.
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    Current law provides that Code chapter 543D shall be known
 as the Iowa voluntary appraisal standards and appraiser
 certification law. The bill provides that Code chapter 543D
 shall be known as the Iowa appraisal standards and appraiser
 certification law.
    The bill defines “appraisal review” as developing and
 communicating an opinion under the uniform standards of
 professional appraisal practice review standards regarding
 the quality of an appraiser’s work product prepared as part
 of an appraisal assignment. The bill defines “federally
 related transaction” as any financial transaction related to
 real estate which a federal financial institutions regulatory
 agency engages in, contracts for, or regulates, and which
 requires the services of an appraiser pursuant to federally
 related transaction regulations. The bill defines “federally
 related transaction regulations” as regulations established
 by the comptroller of the currency, the board of governors
 of the federal reserve system, the federal deposit insurance
 corporation, or the national credit union administration
 pursuant to sections 1112, 1113, and 1114 of Tit. XI of
 the federal Financial Institutions Reform, Recovery, and
 Enforcement Act, 12 U.S.C. §3341 – 3343. The bill modifies
 the definition of “review appraiser” to mean a person who is
 responsible for conducting an appraisal review.
    The bill provides that the purpose of Code chapter 543D is
 to establish a procedure for the mandatory certification of
 real estate appraisers performing appraisals for federally
 related transactions and voluntary certification of real estate
 appraisers performing appraisals that are not related to
 federally related transactions.
    The bill requires a person to be a certified real estate
 appraiser or a registered associate real estate appraiser
 acting under the direct supervision of a certified real estate
 appraiser if the person performs an appraisal for a federally
 related transaction as it relates to real estate located in
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 this state.
    Current law provides that a person who is not a certified
 real estate appraiser may appraise real estate if certification
 is not required by Code chapter 543D or any other state or
 federal law. The bill provides that, notwithstanding that
 provision, in connection with an appraisal of real estate
 located in this state, the title certified real estate
 appraiser, associate real estate appraiser, or any other
 similar title shall only be used by an individual who holds a
 certificate or registration under Code chapter 543D.
    The bill provides that the real estate appraiser examining
 board may recognize on a temporary basis the certification or
 license of an appraiser issued by another state. An appraiser
 who has been recognized on a temporary basis is required to
 register with the board and is governed by the laws and rules
 administered by the board.
    The bill provides that the title certified real estate
 appraiser, associate real estate appraiser, or any similar
 title shall only be used to refer to individuals who hold
 the appropriate certificate or registration. Additionally,
 the bill provides that, in connection with an appraisal
 assignment performed on real estate located in this state, the
 title certified real estate appraiser, associate real estate
 appraiser, or any other like title shall only be used to refer
 to individuals who hold a certificate or registration under
 Code chapter 543D.
    Current law does not require registration with the board
 of those who appraise real estate where certification is not
 required by Code chapter 543D or any other state or federal
 law, and who are not assisting a certified real estate
 appraiser in the development of an appraisal assignment that is
 required by Code chapter 543D or any other state or federal law
 to be performed by a certified real estate appraiser. The bill
 provides that, notwithstanding that provision, in connection
 with an appraisal of real estate located in this state, the
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 title associate real estate appraiser or any other similar
 title shall only be used to refer to or by an individual who
 holds a certificate or registration under Code chapter 543D.
    The bill authorizes civil penalties against a person who is
 not certified under Code chapter 543D for a violation of Code
 section 543D.3, subsection 1A, 2, or 3, or for a violation of
 Code section 543D.20, subsection 5. The maximum civil penalty
 that may be imposed is $1,000 for each violation.
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Statutes affected: 
Introduced: 543D.1, 543D.2, 543D.3, 543D.11, 543D.15, 543D.20, 543D.21