SB 155: "An Act relating to the registration and regulation of real estate appraisal management companies; relating to the establishment of fees by the Department of Commerce, Community, and Economic Development; relating to the Board of Certified Real Estate Appraisers; and relating to real estate appraisers."
00 SENATE BILL NO. 155 01 "An Act relating to the registration and regulation of real estate appraisal management 02 companies; relating to the establishment of fees by the Department of Commerce, 03 Community, and Economic Development; relating to the Board of Certified Real Estate 04 Appraisers; and relating to real estate appraisers." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 08.01.065(c) is amended to read: 07 (c) Except as provided in (f) - (j) [(f) - (i)] of this section, the department shall 08 establish fee levels under (a) of this section so that the total amount of fees collected 09 for an occupation approximately equals the actual regulatory costs for the occupation. 10 The department shall annually review each fee level to determine whether the 11 regulatory costs of each occupation are approximately equal to fee collections related 12 to that occupation. If the review indicates that an occupation's fee collections and 13 regulatory costs are not approximately equal, the department shall calculate fee 14 adjustments and adopt regulations under (a) of this section to implement the
01 adjustments. In January of each year, the department shall report on all fee levels and 02 revisions for the previous year under this subsection to the office of management and 03 budget. If a board regulates an occupation covered by this chapter, the department 04 shall consider the board's recommendations concerning the occupation's fee levels and 05 regulatory costs before revising fee schedules to comply with this subsection. In this 06 subsection, "regulatory costs" means costs of the department that are attributable to 07 regulation of an occupation plus 08 (1) all expenses of the board that regulates the occupation if the board 09 regulates only one occupation; 10 (2) the expenses of a board that are attributable to the occupation if the 11 board regulates more than one occupation. 12 * Sec. 2. AS 08.01.065 is amended by adding a new subsection to read: 13 (j) The department shall establish for real estate appraisal management 14 companies registered under AS 08.87 a registry fee in an amount that equals the 15 amount determined by the federal Appraisal Subcommittee established under 12 16 U.S.C. 3310 as a national registry fee for each real estate appraiser of the appraiser 17 panel of a real estate appraisal management company under 12 U.S.C. 3338 (Title XI, 18 Financial Institutions Reform, Recovery, and Enforcement Act of 1989), as amended 19 by 12 U.S.C. 5301 - 5641 (Dodd-Frank Wall Street Reform and Consumer Protection 20 Act); the department may annually remit fees paid under this subsection to the 21 Appraisal Subcommittee for participation in the national registry for real estate 22 appraisal management companies. 23 * Sec. 3. AS 08.87.020 is amended to read: 24 Sec. 08.87.020. Powers and duties of board. In addition to the powers and 25 duties conferred on the board by AS 08.01, the board shall 26 (1) establish the examination specifications for certification as a 27 general real estate appraiser, as a residential real estate appraiser, and as an 28 institutional real estate appraiser; 29 (2) adopt rules of professional conduct to establish and maintain a high 30 standard of integrity in the real estate appraisal profession; [AND] 31 (3) adopt regulations necessary to carry out the purposes of this
01 chapter, including regulations 02 (A) necessary to comply with the requirements of 03 (i) 12 U.S.C. 3331 - 3355 [12 U.S.C. 3331 - 3351] 04 (Title XI, Financial Institutions Reform, Recovery, and Enforcement 05 Act of 1989), as amended by 12 U.S.C. 5301 - 5641 (Dodd-Frank Wall 06 Street Reform and Consumer Protection Act); the regulations adopted 07 by the board under AS 08.87.110, 08.87.120, 08.87.135, 08.87.220, and 08 08.87.310 may not be more stringent than the corresponding minimum 09 requirements for receiving approval of the state's program of 10 certification of real estate appraisers and registration of real estate 11 appraisal management companies under 12 U.S.C. 3331 - 3355 [12 12 U.S.C. 3331 - 3351] or other federal law; and 13 (ii) 15 U.S.C. 1639e (Truth in Lending Act); 14 (B) establishing registration procedures and standards for a 15 real estate appraisal management company; and 16 (C) establishing the standards for the real estate appraisal 17 management company's appraiser panel, including panel size and 18 member qualifications; 19 (4) report relevant information regarding a real estate appraisal 20 management company's operations, including a disciplinary action under this 21 chapter or a violation of state or federal law, to the Appraisal Subcommittee 22 established under 12 U.S.C. 3310. 23 * Sec. 4. AS 08.87.020 is amended by adding a new subsection to read: 24 (b) The board may examine the records of a real estate appraisal management 25 company operating in the state and require the company to submit reports, 26 information, and documents to the board and investigate alleged violations of this 27 chapter. 28 * Sec. 5. AS 08.87 is amended by adding new sections to read: 29 Article 2A. Real Estate Appraisal Management Companies. 30 Sec. 08.87.130. Registration required. (a) A person shall register as a real 31 estate appraisal management company with the board to perform appraisal
01 management services if the person 02 (1) provides an appraisal management service 03 (A) to a creditor or secondary mortgage market participant, 04 including an affiliate; and 05 (B) in connection with valuing a consumer's principal dwelling 06 as security for a consumer credit transaction or incorporating consumer credit 07 transactions into a securitization; and 08 (2) oversees an appraiser panel. 09 (b) A person is guilty of a class B misdemeanor if the person engages in 10 business as or holds out as a real estate appraisal management company, or performs 11 or attempts to perform appraisal management services, at a time when the 12 (1) person does not hold a registration issued by the board; or 13 (2) registration issued by the board to the person is suspended, 14 revoked, lapsed, or surrendered. 15 Sec. 08.87.135. Requirements for registration of real estate appraisal 16 management companies. (a) The board shall register a real estate appraisal 17 management company operating in the state if the company applies on a form 18 approved by the board, pays the fee required under AS 08.01.165(j), and presents 19 evidence satisfactory to the board that the company 20 (1) has designated a controlling person who will be the main point of 21 contact between the board and the company and who meets the requirements under (b) 22 of this section; 23 (2) has, if the company is not a corporation that is domiciled in this 24 state, filed with the department a written consent to service of process on a resident of 25 this state for any court action arising from an activity regulated under this chapter or 26 12 U.S.C. 3331 - 3355 and provided the name and contact information for the 27 company's agent for service of process in this state; 28 (3) requires a real estate appraiser to comply with the Uniform 29 Standards of Professional Appraisal Practice adopted by the Appraisal Standards 30 Board of the Appraisal Foundation when completing appraisals at the company's 31 request;
01 (4) engages only appraisers who are certified under this chapter; 02 (5) has a process to verify that a person who is assigned to serve on an 03 appraiser panel of the company 04 (A) is certified under this chapter and maintains a certification 05 in good standing; and 06 (B) is qualified to conduct federally related transactions under 07 federal law; in this subparagraph, "federally related transaction" means a real 08 estate related transaction that involves an insured depository institution 09 regulated by the United States Comptroller of the Currency, the Board of 10 Governors of the Federal Reserve System, the Federal Deposit Insurance 11 Corporation, or the National Credit Union Administration and requires the 12 services of a real estate appraiser under the interagency appraisal rules; 13 (6) conducts appraisals independently and free from inappropriate 14 influence and coercion as required under 12 U.S.C. 3353; 15 (7) is not directly or indirectly owned in whole or in part by a person 16 that has had a certificate to act as a real estate appraiser denied, cancelled, suspended, 17 revoked, put on probation, or surrendered in lieu of a pending revocation in any state 18 unless the person has later had a certificate to act as a real estate appraiser granted or 19 reinstated by the same state; and 20 (8) has posted a surety bond in an amount required by the board, not to 21 exceed $25,000. 22 (b) A controlling person designated under (a) of this section 23 (1) must be actively certified in the state as a real estate appraiser at all 24 times that the person is designated as a controlling person; 25 (2) may not have had a certificate to act as a real estate appraiser 26 denied, cancelled, suspended, revoked, put on probation, or surrendered in lieu of a 27 pending revocation in any state unless the person has later had the certificate to act as 28 a real estate appraiser granted or reinstated; and 29 (3) must be of good moral character. 30 (c) A controlling person designated under (a) of this section shall submit 31 fingerprints and the fees required by the Department of Public Safety under
01 AS 12.62.160 for criminal justice information and a national criminal history record 02 check. The department shall submit the fingerprints and fees to the Department of 03 Public Safety for a report of criminal justice information under AS 12.62 and a 04 national criminal history record check under AS 12.62.400. 05 (d) The board shall provide a copy of a registration under this section to the 06 Appraisal Subcommittee under 12 U.S.C. 3310 on a form approved by the 07 subcommittee. 08 (e) A registration under this section is valid for two years and may be renewed 09 upon proof of continued compliance with the requirements of (a) - (c) of this section. 10 Sec. 08.87.140. Mandatory reporting. A real estate appraisal management 11 company or a controlling person, employee, director, officer, or agent of a real estate 12 appraisal management company that has reasonable cause to believe that a real estate 13 appraiser has failed to comply with the Uniform Standards of Professional Appraisal 14 Practice as adopted under 12 U.S.C. 3339 in a manner that materially affects a 15 valuation appraisal shall report the noncompliance to the board and to the Appraisal 16 Subcommittee established under 12 U.S.C. 3310. 17 Sec. 08.87.145. Retention of records and inspection. A registered real estate 18 appraisal management company or a real estate appraisal management company that 19 has applied for registration shall allow the board to inspect and shall retain, for not less 20 than the later of either five years after the date a file is submitted to the company or 21 two years after final disposition of a related judicial proceeding, 22 (1) copies of all records related to requests for the company's appraisal 23 management services and the real estate appraisers who perform the appraisals; 24 (2) a written record of all substantive communications between a real 25 estate appraisal management company registered under this chapter and a real estate 26 appraiser relating to an appraisal or participation in an appraiser panel. 27 Sec. 08.87.150. Reporting requirements for federally regulated real estate 28 appraisal management companies. (a) A real estate appraisal management company 29 that is owned and controlled by an insured depository institution as defined in 12 30 U.S.C. 1813 and regulated by the United States Comptroller of the Currency, the 31 Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance
01 Company, shall annually submit to the board information that the board is required to 02 submit to the Appraisal Subcommittee under 12 U.S.C. 3310, including a 03 (1) report of intent to operate in the state; and 04 (2) disclosure of whether the company is directly or indirectly owned 05 in whole or in part by any person that has had a certificate to act as a real estate 06 appraiser denied, cancelled, suspended, revoked, put on probation, or surrendered in 07 lieu of a pending revocation in any state. 08 (b) If a person has had disciplinary action taken against the person under 09 (a)(2) of this section, the board shall collect information related to whether the 10 certificate to act as a real estate appraiser was denied, cancelled, suspended, revoked, 11 put on probation, or surrendered in lieu of a pending revocation for a substantive cause 12 and whether the person has later had the certificate to act as a real estate appraiser 13 reinstated by the same state. 14 Sec. 08.87.155. Exemptions. AS 08.87.130 - 08.87.150, 08.87.215, and 15 08.87.220 do not apply to a 16 (1) person who is employed by a department or division of an entity 17 that provides appraisal management services only to that entity; 18 (2) real estate appraisal management company that is 19 (A) owned and controlled by an insured depository institution; 20 and 21 (B) regulated by the Consumer Financial Protection Bureau, 22 the Federal Housing Finance Agency, the Board of Governors of the Federal 23 Reserve System, the Federal Deposit Insurance Corporation, the United States 24 Comptroller of the Currency, or the National Credit Union Administration; or 25 (3) real estate appraiser who enters into an agreement with another real 26 estate appraiser for the performance of an appraisal that upon completion results in a 27 report signed by both the real estate appraiser who completed the appraisal and the 28 real estate appraiser who requested completion of the appraisal. 29 * Sec. 6. AS 08.87 is amended by adding new sections to article 3 to read: 30 Sec. 08.87.215. Prohibited practices; real estate appraisal management 31 companies. (a) A real estate appraisal management company may not, while
01 registered in the state, retain or enter into a business relationship with an employee, 02 contractor, or agent whose certificate to act as a real estate appraiser is denied, 03 cancelled, suspended, revoked, put on probation, or surrendered in lieu of a pending 04 revocation in any state unless the employee, contractor, or agent has later had a 05 certificate to act as a real estate appraiser granted or reinstated by the same state. 06 (b) A real estate appraisal management company or a controlling person, 07 employee, director, officer, or agent of a real estate appraisal management company 08 may not 09 (1) seek to influence a real estate appraiser through intimidation, 10 coercion, extortion, or bribery; 11 (2) condition payment of an appraisal fee on a real estate appraiser's 12 opinion, conclusion, or valuation; 13 (3) request that a real estate appraiser report a predetermined opinion, 14 conclusion, or valuation; 15 (4) alter, amend, or change an appraisal report submitted by a real 16 estate appraiser without the real estate appraiser's written consent; 17 (5) require a real estate appraiser to sign an indemnification agreement 18 for a claim that does not arise from a service performed by the real estate appraiser; 19 (6) prohibit a real estate appraiser who is part of an appraiser panel 20 from recording within the appraisal communication the fee that the appraiser was paid 21 by the company for the performance of the appraisal; 22 (7) prohibit lawful communication between a real estate appraiser and 23 any other person who the real estate appraiser determines possesses information 24 relevant to the appraisal; 25 (8) engage in an act or practice with intent to impair a real estate 26 appraiser's independence, objectivity, and impartiality; 27 (9) knowingly make a false statement, submit false information, or fail 28 to provide complete information in response to a question in an application for 29 registration or renewal of a registration; or 30 (10) violate this chapter or a regulation adopted under this chapter. 31 Sec. 08.87.220. Disciplinary proceedings; real estate appraisal
01 management companies. The board may take disciplinary action under AS 08.01.075 02 or suspend or revoke a registration of a real estate appraisal management company if it 03 finds that the 04 (1) company or a controlling person, employee, director, officer, or 05 agent of a real estate appraisal management company has violated a provision of this 06 chapter or a regulation adopted by the board under this chapter; 07 (2) company or a controlling person of the company has had a 08 certificate to act as a real estate appraiser or a registration as a real estate appraisal 09 management company denied, cancelled, suspended, revoked, put on probation, or 10 surrendered in lieu of a pending revocation in any state; 11 (3) company fails to comply with the Uniform Standards of 12 Professional Appraisal Practice under 12 U.S.C. 3339; 13 (4) company performs appraisal management services in a manner that 14 causes injury or loss to the public; 15 (5) company has ceased to operate in the state as a real estate appraisal 16 management company; 17 (6) company used fraud, deception, misrepresentation, or bribery in 18 securing a registration under this chapter. 19 * Sec. 7. AS 08.87.900 is amended by adding new paragraphs to read: 20 (14) "appraisal management services" includes the performance of any 21 of the following functions on behalf of a lender, financial institution, or other person: 22 (A) administration of an appraiser panel; 23 (B) recruitment, retention, or selection of real estate appraisers 24 for the performance of appraisal services; 25 (C) contracting with real estate appraisers to perform 26 appraisals; 27 (D) review of a completed appraisal before the delivery of the 28 appraisal or review assignment to the person that ordered the appraisal; 29 (15) "appraiser panel" means a group of licensed or certified real estate 30 appraisers who perform appraisals as independent contractors for a real estate 31 appraisal management company;
01 (16) "company" means a real estate appraisal management company 02 required to register under AS 08.87.130 that performs appraisal management services; 03 (17) "controlling person" includes a person who 04 (A) owns more than 10 percent of a real estate appraisal 05 management company or an officer or director of a real estate appraisal 06 management company; 07 (B) is employed and authorized by a real estate appraisal 08 management company to enter into a contractual relationship with another 09 person for the performance of appraisal management services or with a real 10 estate appraiser to perform an appraisal; and 11 (C) has the authority to direct the management or policies of a 12 real estate appraisal management company; 13 (18) "principal dwelling" means a residential structure or mobile home 14 that contains one to four units but does not include a vacation or second home unless 15 the consumer buys or builds a new dwelling that will become the primary location that 16 the consumer inhabits within a year after the purchase or completion of construction. 17 * Sec. 8. AS 12.62.400(a) is amended by adding a new paragraph to read: 18 (19) a position as a controlling person of a real estate appraisal 19 management company under AS 08.87.135. 20 * Sec. 9. AS 37.05.146(c) is amended by adding a new paragraph to read: 21 (90) real estate appraisal management company registry fees under 22 AS 08.01.065(j). 23 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 APPLICABILITY. This Act applies to a person offering or providing appraisal 26 management services on or after the effective date of this Act. In this section, "appraisal 27 management services" has the meaning given in AS 08.87.900.