HB 172 - Real estate appraisers; amend provisions

First Reader Summary

A BILL to amend Chapter 39A of Title 43 of the Official Code of Georgia Annotated, known as the "Real Estate Appraiser Classification and Regulation Act," so as to change the definition of a certain term; to provide that any instructor approved to teach any required education course at an approved school shall pay an original application fee and renewal fee as established by the Georgia Real Estate Appraisers Board; and for other purposes.

Powell, Alan T (23rd) Skipper, Jimmy (137th)
Status Summary HC: Ind SC: CAFF LA: 04/04/97 Signed by Governor
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7
Code Sections - 43-39A-13
Recorded Votes
House Action Senate
1/16/97 Read 1st Time 2/4/97
1/17/97 Read 2nd Time 2/14/97
1/30/97 Favorably Reported 2/13/97
Sub Committee Amend/Sub Sub
2/3/97 Read 3rd Time 3/25/97
2/3/97 Passed/Adopted 3/25/97
CS Comm/Floor Amend/Sub CSFA
3/27/97 Amend/Sub Agreed To
4/3/97 Sent to Governor
4/4/97 Signed by Governor
36 Act/Veto Number
4/4/97 Effective Date

HB 172                                              HB 172/AP 
 
      H. B. No. 172 (AS PASSED HOUSE AND SENATE) 
      By:  Representatives Powell of the 23rd and Skipper of the 
      137th 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Chapter 39A of Title 43 of the Official Code of 
  1- 2  Georgia Annotated, known as the "Real Estate Appraiser 
  1- 3  Classification and Regulation Act," so as to change the 
  1- 4  definition of a certain term; to change the provisions 
  1- 5  relating to requirements for nonresident applicants; to 
  1- 6  provide that any instructor approved to teach any required 
  1- 7  education course at an approved school shall pay an original 
  1- 8  application fee and renewal fee as established by the 
  1- 9  Georgia Real Estate Appraisers Board; to provide that the 
  1-10  Georgia Real Estate Appraisers Board is authorized to enter 
  1-11  into such contracts as are necessary to carry out its 
  1-12  duties; to provide for contracts for investigations; to 
  1-13  provide that such board is authorized to retain all funds 
  1-14  received as collection fees for use in defraying the cost of 
  1-15  collection of fees required by law; to change the penalties 
  1-16  for violations of said chapter; to provide that if an 
  1-17  appraiser is in violation of certain provisions of said 
  1-18  chapter, such board may revoke any appraiser classification 
  1-19  issued to the appraiser and simultaneously issue such 
  1-20  appraiser a classification with more restricted authority to 
  1-21  conduct appraisals; to change certain penalty provisions; to 
  1-22  provide that performing or attempting to perform any real 
  1-23  estate appraisal activity in a federally related transaction 
  1-24  without complying with the standards required by the federal 
  1-25  financial institutions regulatory agency that regulates the 
  1-26  financial transaction for which the appraisal assignment is 
  1-27  undertaken shall be a violation of standards of conduct 
  1-28  under such chapter; to provide for the deposit of certain 
  1-29  funds in the state treasury; to provide for construction; to 
  1-30  provide for compliance with certain budgetary laws; to 
  1-31  provide an effective date; to repeal conflicting laws; and 
  1-32  for other purposes. 
 
  1-33       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
 
 
 
 
 
                                 -1- 
 
 
 
  2- 1                           SECTION 1. 
 
  2- 2  Chapter 39A of Title 43 of the Official Code of Georgia 
  2- 3  Annotated, known as the "Real Estate Appraiser 
  2- 4  Classification and Regulation Act," is amended by striking 
  2- 5  paragraph (14) of Code Section 43-39A-2, relating to 
  2- 6  definitions applicable to said chapter, and inserting in 
  2- 7  lieu thereof a new paragraph (14) to read as follows: 
 
  2- 8      "(14) 'Real estate' means an identified parcel or tract 
  2- 9      of land, including improvements, if any. condominiums 
  2-10      and leaseholds as well as any other interest or estate 
  2-11      in land, whether corporal, incorporeal, freehold, or 
  2-12      nonfreehold and whether the real estate is situated in 
  2-13      this state or elsewhere.  Such term also includes any 
  2-14      structure or structures equipped with the necessary 
  2-15      service connections and made so as to be readily 
  2-16      moveable as a unit or units when such a structure is 
  2-17      affixed to land." 
 
  2-18                          SECTION 1.1. 
 
  2-19  Said chapter is further amended by striking paragraph (3) of 
  2-20  subsection (c) of Code Section 43-39A-9, relating to 
  2-21  requirements for nonresident applicants and temporary 
  2-22  permits, and inserting in lieu thereof a new paragraph (3) 
  2-23  to read as follows: 
 
  2-24      "(3) Providing any documentation required by the board 
  2-25      of the applicant's classification in any other state 
  2-26      Causing the licensing body of the applicant's resident 
  2-27      state, or any other state in which the applicant may 
  2-28      hold an appraiser classification, to furnish to the 
  2-29      board a certification of such appraiser classification 
  2-30      and copies of the records of any disciplinary actions 
  2-31      taken against the applicant's appraiser classification 
  2-32      in that or other states.  The imposition of a 
  2-33      disciplinary action by any other lawful licensing 
  2-34      authority may be grounds for denial of an appraiser 
  2-35      classification to a nonresident or for suspension or 
  2-36      revocation of the appraiser classification issued to a 
  2-37      nonresident;". 
 
  2-38                           SECTION 2. 
 
  2-39  Said chapter is further amended by striking subsection (j) 
  2-40  of Code Section 43-39A-11, relating to fees for examination, 
  2-41  activation, and renewal of appraiser classifications, and 
 
 
 
 
                                 -2- 
 
 
 
  3- 1  inserting in lieu thereof a new subsection (j) to read as 
  3- 2  follows: 
 
  3- 3    "(j) Any school approved to offer required education 
  3- 4    courses under this chapter, except units of the University 
  3- 5    System of Georgia, and any instructor approved to teach 
  3- 6    any of such courses shall pay an original application fee 
  3- 7    and renewal fee as established by the board.  If such an 
  3- 8    approval lapses, the school may reinstate the approval by 
  3- 9    paying the total amount of all renewal fees and late 
  3-10    charges which would have been due during the period the 
  3-11    approval was lapsed plus a reactivation fee." 
 
  3-12                           SECTION 3. 
 
  3-13  Said chapter is further amended by striking Code Section 
  3-14  43-39A-13, relating to the power of the Georgia Real Estate 
  3-15  Appraisers Board to regulate the issuance of appraiser 
  3-16  classifications, and inserting in lieu thereof a new Code 
  3-17  Section 43-39A-13 to read as follows: 
 
  3-18    "43-39A-13. 
 
  3-19    The board, through its rules and regulations, shall have 
  3-20    the full power to regulate the issuance of appraiser 
  3-21    classifications, to discipline appraisers in any manner 
  3-22    permitted by this chapter, to establish qualifications for 
  3-23    appraiser classifications consistent with this chapter, to 
  3-24    regulate approved courses, and to establish standards for 
  3-25    real estate appraisals. Except for conducting an 
  3-26    investigation as provided in this chapter, the board is 
  3-27    authorized to enter into such contracts as are necessary 
  3-28    to carry out its duties under this chapter; provided, 
  3-29    however, the board may enter into contracts to assist it 
  3-30    in the conduct of investigations authorized by this 
  3-31    chapter only whenever it needs special legal or appraisal 
  3-32    expertise or other extraordinary circumstances exist. 
  3-33    Whenever the board contracts to perform such investigative 
  3-34    functions, any such contractor working on an investigation 
  3-35    authorized by this chapter shall be under the supervision 
  3-36    of the board or a duly authorized representative of the 
  3-37    board.  Any contractor used by the board shall be 
  3-38    knowledgeable in the work area for which such contractor 
  3-39    is retained.  A contractor shall not be empowered to 
  3-40    determine the disposition of any investigation nor to make 
  3-41    any discretionary decision that the board is authorized by 
  3-42    law to make.  Notwithstanding any other provision of law, 
  3-43    the board is authorized to retain all funds received as 
 
 
 
                                 -3- 
 
 
 
  4- 1    collection fees for use in defraying the cost of 
  4- 2    collection of fees required under this chapter. Any such 
  4- 3    funds not expended for this purpose in the fiscal year in 
  4- 4    which they are generated shall be deposited in the state 
  4- 5    treasury; provided, however, that nothing in this Code 
  4- 6    section shall be construed so as to allow the board to 
  4- 7    retain any funds required by the Constitution to be paid 
  4- 8    into the state treasury; provided, further, that the board 
  4- 9    shall comply with all provisions of Part 1 of Article 4 of 
  4-10    Chapter 12 of Title 45, the 'Budget Act,' except Code 
  4-11    Section 45-12-92, prior to expending any such funds." 
 
  4-12                           SECTION 4. 
 
  4-13  Said chapter is further amended by striking subsection (a) 
  4-14  of Code Section 43-39A-18, relating to penalties for 
  4-15  violations of such chapter, and inserting in lieu thereof a 
  4-16  new subsection (a) to read as follows: 
 
  4-17    "(a) In accordance with the hearing procedures established 
  4-18    for contested cases by Chapter 13 of Title 50, the 
  4-19    'Georgia Administrative Procedure Act,' the board shall 
  4-20    have the power to reprimand appraisers and approved 
  4-21    schools; to revoke or suspend any appraiser classification 
  4-22    issued under this chapter; to revoke any appraiser 
  4-23    classification issued to an appraiser under this chapter 
  4-24    and simultaneously to issue such appraiser a 
  4-25    classification with more restricted authority to conduct 
  4-26    appraisals; to revoke or suspend approval of any school; 
  4-27    to impose a fine not to exceed $1,000.00 for each 
  4-28    violation of this chapter or its rules and regulations 
  4-29    with fines for multiple violations limited to $5,000.00 in 
  4-30    any one hearing; to require completion of a course of 
  4-31    study in real estate appraisal or instruction; or to 
  4-32    utilize any combination of these sanctions which the board 
  4-33    may deem appropriate whenever an appraiser classification 
  4-34    or a school approval has been obtained by false or 
  4-35    fraudulent representation or whenever an appraiser or an 
  4-36    approved school has been found guilty of a violation of 
  4-37    this chapter, of the rules and regulations promulgated by 
  4-38    the board, or of any standard of conduct, including, but 
  4-39    not limited to, the following acts or omissions: 
 
  4-40      (1) Performing any real estate appraisal activity or 
  4-41      specialized services which indicate any preference, 
  4-42      limitation, or discrimination based on race, color, 
  4-43      religion, sex, disability, familial status, or national 
 
 
 
                                 -4- 
 
 
 
  5- 1      origin or an intention to make any such preference, 
  5- 2      limitation, or discrimination; 
 
  5- 3      (2) An act or omission involving dishonesty, fraud, or 
  5- 4      misrepresentation with the intent to benefit 
  5- 5      substantially an appraiser or another person or with the 
  5- 6      intent to injure substantially another person; 
 
  5- 7      (3) Commission of any act of fraud, misrepresentation, 
  5- 8      or deceit in the making of an appraisal of real estate 
  5- 9      for which act a final civil or criminal judgment has 
  5-10      been rendered; 
 
  5-11      (4) Engaging in real estate appraisal activity under an 
  5-12      assumed or fictitious name not properly registered in 
  5-13      this state; 
 
  5-14      (5) Paying a finder's fee or a referral fee to a person 
  5-15      who is not an appraiser in connection with an appraisal 
  5-16      of real estate or real property; 
 
  5-17      (6) Making a false or misleading statement in that 
  5-18      portion of a written appraisal report that deals with 
  5-19      professional qualifications or in any testimony 
  5-20      concerning professional qualifications; 
 
  5-21      (7) Violation of the confidential nature of governmental 
  5-22      records to which an appraiser gained access through 
  5-23      employment or engagement as an appraiser by a 
  5-24      governmental agency; 
 
  5-25      (8) Violation of any of the standards for the 
  5-26      development or communication of real estate appraisals 
  5-27      as promulgated by the board; 
 
  5-28      (9) Failure or refusal without good cause to exercise 
  5-29      reasonable diligence in developing an appraisal, 
  5-30      preparing an appraisal report, or communicating an 
  5-31      appraisal; 
 
  5-32      (10) Negligence or incompetence in developing an 
  5-33      appraisal, in preparing an appraisal report, or in 
  5-34      communicating an appraisal; 
 
  5-35      (11) Accepting an independent appraisal assignment when 
  5-36      the employment itself is contingent upon the appraiser's 
  5-37      reporting a predetermined estimate, analysis, valuation, 
  5-38      or opinion or where the fee to be paid is contingent 
  5-39      upon the opinion, conclusions, analysis, or valuation 
  5-40      reached or upon the consequences resulting from the 
  5-41      appraisal assignment; 
 
 
                                 -5- 
 
 
 
  6- 1      (12) Failure to retain for a period of five years the 
  6- 2      original or a true copy of each appraisal report 
  6- 3      prepared or signed by the appraiser and all supporting 
  6- 4      data assembled and formulated by the appraiser in 
  6- 5      preparing each such appraisal report.  The five-year 
  6- 6      period for retention of records is applicable to each 
  6- 7      engagement of the services of the appraiser and shall 
  6- 8      commence upon the date of the delivery of each appraisal 
  6- 9      report to the client unless, within such five-year 
  6-10      period, the appraiser is notified that the appraisal or 
  6-11      the appraisal report is involved in litigation, in which 
  6-12      event the five-year period for the retention of records 
  6-13      shall commence upon the date of the final disposition of 
  6-14      such litigation; 
 
  6-15      (13) Failure upon reasonable request of an appraiser to 
  6-16      make all records required to be maintained under the 
  6-17      provisions of this chapter available to the board for 
  6-18      inspection and copying by the board; 
 
  6-19      (14) Performing any appraisal beyond the scope of 
  6-20      authority granted in the appraiser classification held; 
 
  6-21      (15) Demonstrating incompetency to act as an appraiser 
  6-22      in such a manner as to safeguard the interests of the 
  6-23      public or any other conduct, whether of the same or a 
  6-24      different character than specified in this subsection, 
  6-25      which constitutes dishonest dealing; 
 
  6-26      (16) Performing or attempting to perform any real estate 
  6-27      appraisal activity on property located in another state 
  6-28      without first having complied fully with that state's 
  6-29      laws regarding real estate appraisal activity; 
 
  6-30      (17) Providing an oral appraisal report in a federally 
  6-31      related transaction; or 
 
  6-32      (18) Utilizing the services of any person in other than 
  6-33      a ministerial capacity whose appraised classification is 
  6-34      suspended or revoked in developing an appraisal, in 
  6-35      preparing an appraisal report, or in communicating an 
  6-36      appraisal. if such person's appraiser classification is 
  6-37      suspended or revoked or if such person does not hold an 
  6-38      appraiser classification; or 
 
  6-39      (19) Performing or attempting to perform any real estate 
  6-40      appraisal activity in a federally related transaction 
  6-41      without complying with the standards required by the 
  6-42      federal financial institutions regulatory agency that 
 
 
 
                                 -6- 
 
 
 
  7- 1      regulates the financial transaction for which the 
  7- 2      appraisal assignment is undertaken." 
 
  7- 3                           SECTION 5. 
 
  7- 4  This Act shall become effective upon its approval by the 
  7- 5  Governor or upon its becoming law without such approval. 
 
  7- 6                           SECTION 6. 
 
  7- 7  All laws and parts of laws in conflict with this Act are 
  7- 8  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -7- 

Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/20/98

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