DAR File No. 27950

Commerce, Real Estate

R162-103-5

Appraisal Education Requirements

NOTICE OF PROPOSED RULE

DAR File No.: 27950
Filed: 06/01/2005, 10:27
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Language that was to be added to Subsection R162-103-5(103.5.3) by DAR No. 27241 was erroneously deleted when the Division amended the rule again (DAR No. 27349) before the changes made by DAR No. 27241 were made effective. This change completes the sentence. (DAR NOTE: DAR No. 27241 was published in the July 15, 2004, Bulletin and was effective 10/07/2004; and DAR No. 27349 was published in the September 1, 2004, Bulletin and was 11/24/2004.)

Summary of the rule or change:

The incomplete sentence in Subsection R162-103-5(103.5.3) is completed by the additional language requiring that a Uniform Standards of Professional Appraisal Practice (USPAP) instructor shall have been certified by the Appraisal Qualification Board (AQB) of the Appraisal Foundation. The Appraisal Subcommittee requires the Division to include AQB certification in the qualifications for USPAP instructors.

State statutory or constitutional authorization for this rule:

Subsection 61-2b-6(1)(l)

Anticipated cost or savings to:

the state budget:

None--A requirement imposed by the AQB that it must be the entity that certifies instructors who will teach the AQB's USPAP course neither costs nor saves the State of Utah any money.

local governments:

None--It is not anticipated that a change in how USPAP instructors are certified will have any impact on local governments, since local governments are not USPAP instructors.

other persons:

None--The only persons who could be affected by this change are providers of appraisal education. It is not known whether the change to AQB certification of USPAP instructors would have any financial impact on course providers. The Division of Real Estate does not know what the cost is, if in fact there is a cost, for an instructor to be certified by the AQB.

Compliance costs for affected persons:

It is unknown whether the change to AQB certification of USPAP instructors would have any financial impact on course providers. The Division of Real Estate does not know what the cost is, if in fact there is a cost, for an instructor to be certified by the AQB.

Comments by the department head on the fiscal impact the rule may have on businesses:

No fiscal impact to businesses is anticipated as a result of this rule filing, which corrects an error in a prior rule filing that inadvertently deleted language regarding certification requirements for appraiser instructors. Russell C. Skousen, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2005

This rule may become effective on:

07/16/2005

Authorized by:

Dexter Bell, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-103. Appraisal Education Requirements.

R162-103-5. Instructor Application for Certification.

103.5.1 Each instructor requesting approval to be certified as an instructor to teach the education requirements of appraisal licensure or certification shall make application for approval on a form prescribed by the Division and shall submit the applicable fees. The application shall include, and the Board may consider, the following information in determining the instructor's eligibility for approval:

103.5.1.1 Attestation to upstanding moral character, including whether the individual:

(a) has had a license or certification to practice in the appraisal profession, or any other profession or occupation, denied, restricted, suspended, or revoked.

(b) has been permitted to resign or surrender an appraiser license or certification, or has ever allowed an appraiser license or certification to expire while the individual was under investigation, or while action was pending against the individual by an appraiser licensing or any other agency.

(c) has any action now pending by any appraiser licensing or other agency.

(d) is currently under investigation for, or charged with, or has ever pled guilty or no contest to, or been convicted of, a misdemeanor or felony, excluding minor traffic offenses.

(e) has ever been placed on probation in connection with any criminal offense or a licensing action.

103.5.2 The instructor will demonstrate evidence of knowledge of the subject matter by the following:

103.5.2.1 A minimum of five years active experience in appraising, or

103.5.2.2 Evidence of having completed college or other appropriate courses specific to the topic he proposes to teach, or

103.5.2.3 Evidence of other qualifications of experience, education, or credentials which are acceptable to the Board; and

103.5.2.4 Evidence of having passed an examination designed to test knowledge of the subject matter he proposes to teach.

103.5.3 An applicant to teach the course on USPAP shall conform to all of the above criteria and inaddition shall have been certified by the Appraisal Qualifications Board (AQB) of the Appraisal Foundation as an AQB Certified USPAP instructor.

103.5.4 Upon approval by the Board, an applicant will be issued certification. Until January 1, 2005, all certifications expire January 1 of each even numbered year. Beginning January 1, 2005, instructor certifications will be issued for a term that expires twenty-four months from the date of issuance. Conditions of renewal of certification include providing proof of the following:

103.5.4.1 Must have taught at least 20 hours of in-class instruction in a certified course during the preceding two years; and

103.5.4.2 Must have attended a real estate instructor development workshop sponsored or approved by the Division during the preceding two years.

103.5.4.3 Instructor certifications may be renewed by submitting a properly completed application for renewal prior to the expiration date of the instructor's current certification, using the form required by the Division. Renewed instructor certifications will be issued for a term of twenty-four months. If the instructor does not submit a properly completed renewal form, renewal fee, and any required documentation prior to the expiration date of the current certification, the certification shall expire. When a certification expires, the certification may be reinstated for a period of thirty days after the expiration date upon payment of a late fee in addition to completing the requirements for a timely renewal. After this thirty day period, and until three months after the expiration date, an instructor certification may be reinstated upon payment of a non-refundable late fee and submission of proof of completion of six classroom hours of education related to real estate appraisal or teaching techniques in addition to completing the requirements for a timely renewal. Following the three month period, an instructor shall be required to apply as an original applicant in order to obtain a new certification.

103.5.5 Within 15 calendar days after the occurrence of any of the events listed in Section 103.5.1, an applicant or instructor shall give written notice to the Division of that event.

KEY: real estate appraisals, education

[November 24, 2004]2005

Notice of Continuation June 3, 2002

61-2b-8

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For questions regarding the content or application of this rule, please contact Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.