DAR File No. 28237

Commerce, Real Estate

R162-107

Unprofessional Conduct

NOTICE OF PROPOSED RULE

DAR File No.: 28237
Filed: 09/15/2005, 08:47
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Appraiser Licensing and Certification Board wishes to liberalize the different ways appraisers may compensate their trainees for their work.

Summary of the rule or change:

The ways that an appraiser trainee may be paid by his supervising appraiser are changed from "a reasonable salary or a reasonable hourly rate for" to "reasonable compensation proportionate to" the service performed in connection with appraisals.

State statutory or constitutional authorization for this rule:

Subsection 61-2b-6(l)

Anticipated cost or savings to:

the state budget:

None--If any state agencies have appraiser trainees on staff, they would typically be paid in a method that would be consistent with either the current version of the rule or the proposed change to the rule. Therefore, the change in the rule would neither cost nor save the state money.

local governments:

None--Although County Assessors Offices do employ appraisal trainees, they would typically be paid in a method that would be consistent with either the current version of the rule or the proposed change to the rule. Therefore, the change in the rule would neither cost nor save local governments.

other persons:

None--The only persons who are affected by the rules on how appraiser trainees may be paid are the appraiser trainees and their supervisors. Changing the wording of the rule to allow other methods of payment besides salary or hourly rate presumably will not change how much the trainees are paid but just provide more flexibility in acceptable methods of figuring their compensation.

Compliance costs for affected persons:

None--The only persons who are affected by the rules on how appraiser trainees may be paid are the appraiser trainees and their supervisors. Providing more flexible methods of compensation should not result in any cost to comply with the rule change.

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

No fiscal impact to businesses is anticipated from this rule filing, which broadens the methods by which an appraiser trainee may be paid for work performed. Jason P. Perry, Acting 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:

10/31/2005

This rule may become effective on:

11/01/2005

Authorized by:

Dexter Bell, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-107. Unprofessional Conduct.

R162-107-1. Unprofessional Conduct.

107.1 Unprofessional conduct includes the following specific acts or omissions:

107.1.1 Violating or disregarding a disciplinary order of the Utah Appraiser Licensing and Certification Board or the division;

107.1.2 Signing an appraisal report containing a statement indicating that an appraiser has inspected a property if the appraiser has not inspected the property;

107.1.3 Signing an appraisal report as the supervising appraiser without having given adequate supervision to the registered appraiser or the unclassified assistant;

107.1.4 Allowing an appraiser in his employ, or an appraiser whom he is otherwise responsible to supervise, to:

(a) exceed the authority of the subordinate appraiser's classification;

(b) engage in conduct which is a violation of Title 61, Chapter 2b.

107.1.5 Allowing a non-appraiser to:

(a) exceed the authority granted to an unclassified person by these rules;

(b) engage in conduct which would be a violation of Title 61, Chapter 2b if done by an appraiser; or

(c) accept an appraisal assignment.

107.1.6 Splitting appraisal fees with any person who is not a State-Licensed Appraiser or a State-Certified Appraiser, except that an appraisal trainee may be paid [a reasonable salary or a reasonable hourly rate for]reasonable compensation proportionate to lawful services actually performed in connection with appraisals. Such payment must be paid to the trainee by the trainee's supervisor or the supervisor's appraisal firm and not by any other person or entity.

107.2 The Board may appoint members of the appraisal industry to serve as a Technical Advisory Panel to provide advice to the Division concerning technical appraisal issues and conduct constituting unprofessional conduct.

KEY: real estate appraisals, conduct

[May 25, ]2005

Notice of Continuation January 21, 2003

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.