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LEGISLATURE OF NEBRASKA
ONE HUNDRED SIXTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 775
Introduced by Williams, 36.
Read first time January 08, 2020
Committee: Banking, Commerce and Insurance
1 A BILL FOR AN ACT relating to real property; to amend sections 76-2202,
2 76-2204, 76-2205.02, 76-2207.01, 76-2207.17, 76-2207.22, 76-2207.26,
3 76-2212.03, 76-2215, 76-2216, 76-2216.02, 76-2218.02, 76-2219.01,
4 76-2219.02, 76-2220, 76-2221, 76-2223, 76-2227, 76-2233, 76-2233.01,
5 76-2233.02, 76-2233.03, 76-2239, 76-2243, 76-2245, 76-2246,
6 76-2247.01, 76-3207, and 76-3210, Reissue Revised Statutes of
7 Nebraska, and sections 76-2207.27, 76-2207.30, 76-2228.01,
8 76-2228.02, 76-2230, 76-2231.01, 76-2232, 76-2236, 76-2238, 76-3202,
9 and 76-3203.01, Revised Statutes Supplement, 2019; to change
10 provisions relating to the Real Property Appraiser Act; to harmonize
11 provisions; to repeal the original sections; to outright repeal
12 sections 76-2205.01 and 76-2216.03, Reissue Revised Statutes of
13 Nebraska; and to declare an emergency.
14 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 76-2202, Reissue Revised Statutes of Nebraska, is
2 amended to read:
3 76-2202 The Legislature finds that as a result of the enactment of
4 the Dodd-Frank Wall Street Reform and Consumer Protection Act and the
5 Financial Institutions Reform, Recovery, and Enforcement Act of 1989,
6 Nebraska's laws providing for regulation of real property appraisers
7 require restructuring and updating in order to comply with such acts.
8 Compliance with the acts is necessary to ensure an adequate number of
9 real property appraisers in Nebraska to conduct appraisals of real estate
10 involved in federally related transactions as defined in such acts.
11 Sec. 2. Section 76-2204, Reissue Revised Statutes of Nebraska, is
12 amended to read:
13 76-2204 Appraisal means (1) as a noun, an opinion of value or the
14 act or process of developing an opinion of value or (2) as an adjective,
15 pertaining to appraising and related functions such as real property
16 appraisal practice or real property appraisal activity. An appraisal is
17 must be numerically expressed as a specific amount, as a range of
18 numbers, or as a relationship to a previous value opinion or numerical
19 benchmark.
20 Sec. 3. Section 76-2205.02, Reissue Revised Statutes of Nebraska, is
21 amended to read:
22 76-2205.02 Appraisal review means (1) as a noun, the act or process
23 of developing an opinion about the quality of a real property appraiser's
24 work that was performed as part of real property appraisal practice a
25 valuation assignment, evaluation assignment, or appraisal review
26 assignment or (2) as an adjective, of or pertaining to an opinion about
27 the quality of another real property appraiser's work that was performed
28 as part of real property appraisal practice a valuation assignment,
29 evaluation assignment, or appraisal review assignment.
30 Sec. 4. Section 76-2207.01, Reissue Revised Statutes of Nebraska, is
31 amended to read:
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1 76-2207.01 Assignment means a valuation service that is performed by
2 a real property an appraiser as a consequence of an agreement with a
3 client.
4 Sec. 5. Section 76-2207.17, Reissue Revised Statutes of Nebraska, is
5 amended to read:
6 76-2207.17 Assignment results means the opinions or conclusions, not
7 limited to value, developed by a real property appraiser when performing
8 valuation services specific to real property appraisal practice an
9 assignment not limited to value for an appraisal assignment, and not
10 limited to an opinion about the quality of another appraiser's work for
11 an appraisal review assignment.
12 Sec. 6. Section 76-2207.22, Reissue Revised Statutes of Nebraska, is
13 amended to read:
14 76-2207.22 Client means the person or persons who engage a real
15 property appraiser , by employment or contract, a real property appraiser
16 in a specific assignment whether . The client may engage and communicate
17 with the appraiser directly or through an agent.
18 Sec. 7. Section 76-2207.26, Reissue Revised Statutes of Nebraska, is
19 amended to read:
20 76-2207.26 Credential holder means (1) any person who holds a valid
21 credential as a trainee real property appraiser, licensed real property
22 appraiser, certified residential real property appraiser, or certified
23 general real property appraiser and (2) any person who holds a temporary
24 credential permit to engage in real property appraisal practice activity
25 within this state.
26 Sec. 8. Section 76-2207.27, Revised Statutes Supplement, 2019, is
27 amended to read:
28 76-2207.27 Education provider means: Any real property appraisal or
29 real-estate-related organization; proprietary school; accredited degree-
30 awarding community college, college, or university; state or federal
31 agency; or such other provider that may be approved by the board that
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1 provides real property appraiser training or education.
2 Sec. 9. Section 76-2207.30, Revised Statutes Supplement, 2019, is
3 amended to read:
4 76-2207.30 Financial Institutions Reform, Recovery, and Enforcement
5 Act of 1989 means the act as it existed on January 1, 2020 2019.
6 Sec. 10. Section 76-2212.03, Reissue Revised Statutes of Nebraska,
7 is amended to read:
8 76-2212.03 Jurisdiction of practice means any jurisdiction in which
9 an appraiser devotes his or her time engaged in real property appraisal
10 practice activity.
11 Sec. 11. Section 76-2215, Reissue Revised Statutes of Nebraska, is
12 amended to read:
13 76-2215 Real property appraisal practice activity means any act or
14 process performed by a real property appraiser involved in developing and
15 reporting an analysis, opinion, or conclusion relating to the specified
16 interests in or aspects of identified real estate or identified real
17 property or an appraisal review. Real property appraisal practice
18 activity includes, but is not limited to, evaluation assignments,
19 valuation assignments, and appraisal review assignments.
20 Sec. 12. Section 76-2216, Reissue Revised Statutes of Nebraska, is
21 amended to read:
22 76-2216 Real property appraiser means a person who is a credential
23 holder. :
24 (1) Engages in real property appraisal activity;
25 (2) Advertises or holds himself or herself out to the general public
26 as a real property appraiser; or
27 (3) Offers, attempts, or agrees to perform or performs real property
28 appraisal activity.
29 Sec. 13. Section 76-2216.02, Reissue Revised Statutes of Nebraska,
30 is amended to read:
31 76-2216.02 Report means any communication, written, oral, or by
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1 electronic means, of assignment results an appraisal or appraisal review
2 that is transmitted to the client or a party authorized by the client
3 upon completion of an assignment. Testimony related to assignment results
4 an appraisal or appraisal review is deemed to be an oral report.
5 Sec. 14. Section 76-2218.02, Reissue Revised Statutes of Nebraska,
6 is amended to read:
7 76-2218.02 Uniform Standards of Professional Appraisal Practice
8 means the standards adopted and promulgated by The Appraisal Foundation
9 as the standards existed on January 1, 2020 2018.
10 Sec. 15. Section 76-2219.01, Reissue Revised Statutes of Nebraska,
11 is amended to read:
12 76-2219.01 Valuation services means all services pertaining to an
13 aspect aspects of property value, including a service services performed
14 by real property appraisers.
15 Sec. 16. Section 76-2219.02, Reissue Revised Statutes of Nebraska,
16 is amended to read:
17 76-2219.02 Workfile means data, information, and documentation
18 necessary to support a real property appraiser's opinions analyses,
19 opinion, and conclusions, and to show compliance with the Uniform
20 Standards of Professional Appraisal Practice as it applies to an
21 assignment.
22 Sec. 17. Section 76-2220, Reissue Revised Statutes of Nebraska, is
23 amended to read:
24 76-2220 (1) Except as provided in section 76-2221, it shall be
25 unlawful for anyone to act as a real property appraiser in this state
26 without first obtaining proper credentialing as required under the Real
27 Property Appraiser Act.
28 (2) Except as provided in section 76-2221, any person who, directly
29 or indirectly for another, offers, attempts, or agrees to engage, or
30 engages in real property appraisal practice, or who advertises or holds
31 himself or herself out to the general public as a real property
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1 appraiser, perform any act described in section 76-2216 shall be deemed a
2 real property appraiser within the meaning of the Real Property Appraiser
3 Act, and such action shall constitute sufficient contact with this state
4 for the exercise of personal jurisdiction over such person in any action
5 arising out of such act. Committing a single act described in this such
6 section by a person required to be credentialed under the Real Property
7 Appraiser Act and not so credentialed shall constitute a violation of the
8 act for which the board may impose sanctions pursuant to this section for
9 the protection of the public health, safety, or welfare.
10 (3) The board may issue a cease and desist order against any person
11 who violates this section by performing any action described in section
12 76-2216 without the appropriate credential. Such order shall be final ten
13 days after issuance unless such person requests a hearing pursuant to
14 section 76-2240. The board may, through the Attorney General, obtain an
15 order from the district court for the enforcement of the cease and desist
16 order.
17 Sec. 18. Section 76-2221, Reissue Revised Statutes of Nebraska, is
18 amended to read:
19 76-2221 The Real Property Appraiser Act shall not apply to:
20 (1) Any real property appraiser who is a salaried employee of (a)
21 the federal government, (b) any agency of the state government or a
22 political subdivision which appraises real estate, (c) any insurance
23 company authorized to do business in this state, or (d) any bank, savings
24 bank, savings and loan association, building and loan association, credit
25 union, or small loan company licensed by this state or supervised or
26 regulated by or through federal enactments covering financial
27 institutions, except that any employee of the entities listed in
28 subdivisions (a) through (d) of this subdivision who signs a report as a
29 credentialed real property appraiser shall be subject to the act and the
30 Uniform Standards of Professional Appraisal Practice. Any salaried
31 employee of the entities listed in subdivisions (a) through (d) of this
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1 subdivision who is a credentialed real property appraiser and who does
2 not sign a report as a credentialed real property appraiser shall include
3 the following disclosure prominently with such report: This opinion of
4 value may not meet the minimum standards contained in the Uniform
5 Standards of Professional Appraisal Practice and is not governed by the
6 Real Property Appraiser Act;
7 (2) A person referred to in subsection (1) of section 81-885.16;
8 (3) Any person who provides assistance (a) in obtaining the data
9 upon which assignment results are an appraisal is based, (b) in the
10 physical preparation of a report, such as taking photographs, preparing
11 charts, maps, or graphs, or typing or printing the report, or (c) that
12 does not directly involve the exercise of judgment in arriving at the
13 assignment results analyses, opinions, or conclusions concerning real
14 estate or real property set forth in the report;
15 (4) Any owner of real estate, employee of the owner, or attorney
16 licensed to practice law in this state representing the owner who renders
17 an estimate or opinion of value of the real estate or any interest in the
18 real estate when such estimate or opinion is for the purpose of real
19 estate taxation, or any other person who renders such an estimate or
20 opinion of value when that estimate or opinion requires a specialized
21 knowledge that a real property appraiser would not have, except that a
22 real property appraiser or a person licensed under the Nebraska Real
23 Estate License Act is not exempt under this subdivision;
24 (5) Any owner of real estate, employee of the owner, or attorney
25 licensed to practice law in this state representing the owner who renders
26 an estimate or opinion of value of real estate or any interest in real
27 estate or damages thereto when such estimate or opinion is offered as
28 testimony in any condemnation proceeding, or any other person who renders
29 such an estimate or opinion when that estimate or opinion requires a
30 specialized knowledge that a real property appraiser would not have,
31 except that a real property appraiser or a person licensed under the
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1 Nebraska Real Estate License Act is not exempt under this subdivision;
2 (6) Any owner of real estate, employee of the owner, or attorney
3 licensed to practice law in this state representing the owner who renders
4 an estimate or opinion of value of the real estate or any interest in the
5 real estate when such estimate or opinion is offered in connection with a
6 legal matter involving real property;
7 (7) Any person appointed by a county board of equalization to act as
8 a referee pursuant to section 77-1502.01, except that any person who also
9 practices as an independent real property appraiser for others shall be
10 subject to the Real Property Appraiser Act and shall be credentialed
11 prior to engaging in such other real property appraisal practice
12 appraising. Any real property appraiser appointed to act as a referee
13 pursuant to section 77-1502.01 and who prepares a report for the county
14 board of equalization shall not sign such report as a credentialed real
15 property appraiser and shall include the following disclosure prominently
16 with such report: This opinion of value may not meet the minimum
17 standards contained in the Uniform Standards of Professional Appraisal
18 Practice and is not governed by the Real Property Appraiser Act;
19 (8) Any person who is appointed to serve as an appraiser pursuant to
20 section 76-706, except that if such person is a credential holder, he or
21 she shall (a) be subject to the scope of practice applicable to his or
22 her classification of credential and (b) comply with the Uniform
23 Standards of Professional Appraisal Practice, excluding standards 1
24 through 10; or
25 (9) Any person, including an independent contractor, retained by a
26 county to assist in the appraisal of real