Bill Summary – FastDemocracy

House File 682 - Enrolled
                                                      House File 682
                                  AN ACT
     RELATING TO THE IOWA APPRAISAL STANDARDS AND APPRAISER
        CERTIFICATION LAW, MAKING PENALTIES APPLICABLE, AND
        INCLUDING APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    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, with or without also
 providing an opinion of value, 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.
                                                House File 682, p. 2
    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,
 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 if the
 services of a certified real estate appraiser are required by
                                                House File 682, p. 3
 federal law or regulation.
    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
 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.
    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.
    4. A person who is not a certified real estate appraiser
 under this chapter but who is licensed under chapter 543B may
 be compensated in the course of business for providing an
 estimate of the probable selling price or leasing price of a
 particular parcel of real estate or interest in real estate as
 a comparative market analysis or a broker price opinion. Such
 a comparative market analysis or broker price opinion shall not
 be considered an appraisal for purposes of this chapter and
 shall not be prepared for any purpose in lieu of an appraisal
 when an appraisal is required by federal or state law.
    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
                                                House File 682, p. 4
 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 apply for and obtain a temporary
 practice permit from the board before performing any services
 in relation to an appraisal, 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 performed on
 real estate located in this 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
                                                House File 682, p. 5
 board. Notwithstanding this subsection, in connection with the
 performance, or assistance in the performance, of an appraisal
 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.
    Sec. 10. Section 543D.22, subsections 1 and 3, Code 2021,
 are amended to read as follows:
    1. a. The Subject to paragraphs “b” and “c”, the board may
 require a national criminal history check through the federal
 bureau of investigation for applicants for certification or
 registration, or for persons certified or registered, under
 this chapter, if needed for credibility, to comply with
 federal law or regulation, or the policies of the appraisal
 qualification board of the appraisal foundation. The board
 may alternatively require a national criminal history check
 through the nationwide mortgage licensing system and registry,
 as defined in section 535D.3, when conducting background
 investigations under this section, if authorized by applicable
 federal law or regulation.
    b. The board shall not require a national criminal
 history check through the federal bureau of investigation
 for applicants for upgraded certification or registration
 if the applicant applies for the upgraded certification or
 registration within twenty-four months following the date the
 applicant obtained their original certification or registration
 under this chapter.
    c. By signing and submitting to the board a statement
 declaring that there have been no changes to the applicant’s
 criminal history since the date of the waiver specified
                                                House File 682, p. 6
 in subsection 4, and that there are no active or pending
 complaints in any state against the applicant, any of the
 following individuals may seek a waiver of the board’s
 requirement to undergo a national criminal history check:
    (1) An applicant for upgraded certification or registration
 who obtained their original certification or registration under
 this chapter more than twenty-four months prior to applying for
 the upgraded certification or registration.
    (2) An applicant for upgraded certification applying to the
 board under a reciprocity agreement.
    3. a. The Subject to paragraphs “b” and “c”, the board
 may also request and obtain, notwithstanding section 692.2,
 subsection 5, criminal history data for applicants, certificate
 holders, and registrants. A request for criminal history
 data shall be submitted to the department of public safety,
 division of criminal investigation, pursuant to section 692.2,
 subsection 1.
    b. The board shall not request or obtain criminal history
 data for applicants for upgraded certification or registration
 if the applicant applies for the upgraded certification or
 registration within twenty-four months following the date the
 applicant obtained their original certification or registration
 under this chapter.
    c. By signing and submitting to the board a statement
 declaring that there have been no changes to the applicant’s
 criminal history data since the date of the waiver specified
 in subsection 4, and that there are no active or pending
 complaints in any state against the applicant, any of the
 following individuals may seek a waiver of the board’s request
 to obtain criminal history data:
    (1) An applicant for upgraded certification or registration
 who obtained their original certification or registration under
 this chapter more than twenty-four months prior to applying for
 the upgraded certification or registration.
    (2) An applicant for upgraded certification applying to the
 board under a reciprocity agreement.
    Sec. 11. APPLICABILITY. The following applies to
 applications for original certification or registration and
 renewal certification or registration that are submitted to the
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real estate appraiser examining board on or after the effective
date of this Act:
  The section of this Act amending section 543D.22.
  ______________________________     ______________________________
  PAT GRASSLEY                       JAKE CHAPMAN
  Speaker of the House               President of the Senate
     I hereby certify that this bill originated in the House and
  is known as House File 682, Eighty-ninth General Assembly.
                                     ______________________________
                                     MEGHAN NELSON
                                     Chief Clerk of the House
  Approved _______________, 2021     ______________________________
                                     KIM REYNOLDS
                                     Governor
Statutes affected: 
Introduced: 543D.1, 543D.2, 543D.3, 543D.11, 543D.15, 543D.20, 543D.21
Reprinted: 543D.1, 543D.2, 543D.3, 543D.11, 543D.15, 543D.20, 543D.21
Enrolled: 543D.1, 543D.2, 543D.3, 543D.11, 543D.15, 543D.20, 543D.21