1 | A bill to be entitled |
2 | An act relating to regulation of real estate appraisers |
3 | and appraisal management companies; amending s. 475.611, |
4 | F.S.; providing definitions; amending s. 475.614, F.S.; |
5 | requiring the Florida Real Estate Appraisal Board to adopt |
6 | certain rules; amending s. 475.6147, F.S.; requiring |
7 | application, registration, and renewal fees for appraisal |
8 | management companies; creating s. 475.6235, F.S.; |
9 | requiring appraisal management companies to register with |
10 | the Department of Business and Professional Regulation; |
11 | specifying application requirements and procedures; |
12 | requiring the fingerprinting and criminal history records |
13 | checks of, and providing qualifications for, certain |
14 | persons who control appraisal management companies; |
15 | requiring nonresident appraisal management companies to |
16 | consent to commencement of actions in this state; |
17 | requiring the department to adopt rules relating to the |
18 | renewal of registrations; amending s. 475.624, F.S.; |
19 | conforming provisions to changes made by the act; creating |
20 | s. 475.6245, F.S.; providing for the discipline of |
21 | appraisal management companies by the board; amending s. |
22 | 475.626, F.S.; providing penalties; conforming provisions |
23 | to changes made by the act; amending s. 475.629, F.S.; |
24 | revising requirements for the retention of appraisal |
25 | records; requiring appraisal management companies to |
26 | follow such requirements; providing an effective date. |
27 |
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28 | Be It Enacted by the Legislature of the State of Florida: |
29 |
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30 | Section 1. Subsection (1) of section 475.611, Florida |
31 | Statutes, is amended to read: |
32 | 475.611 Definitions.- |
33 | (1) As used in this part, the term: |
34 | (a) "Appraisal" or "appraisal services" means the services |
35 | provided by certified or licensed appraisers or registered |
36 | trainee appraisers, and includes: |
37 | 1. "Appraisal assignment" denotes an engagement for which |
38 | a person is employed or retained to act, or could be perceived |
39 | by third parties or the public as acting, as an agent or a |
40 | disinterested third party in rendering an unbiased analysis, |
41 | opinion, review, or conclusion relating to the nature, quality, |
42 | value, or utility of specified interests in, or aspects of, |
43 | identified real property. |
44 | 2. "Analysis assignment" denotes appraisal services that |
45 | relate to the employer's or client's individual needs or |
46 | investment objectives and includes specialized marketing, |
47 | financing, and feasibility studies as well as analyses, |
48 | opinions, and conclusions given in connection with activities |
49 | such as real estate brokerage, mortgage banking, real estate |
50 | counseling, or real estate consulting. |
51 | 3. "Appraisal review assignment" denotes an engagement for |
52 | which an appraiser is employed or retained to develop and |
53 | communicate an opinion about the quality of another appraiser's |
54 | appraisal, appraisal report, or work. An appraisal review may or |
55 | may not contain the reviewing appraiser's opinion of value. |
56 | (b) "Appraisal Foundation" or "foundation" means the |
57 | Appraisal Foundation established on November 20, 1987, as a not- |
58 | for-profit corporation under the laws of Illinois. |
59 | (c) "Appraisal management company" means a person who |
60 | performs appraisal management services. |
61 | (d) "Appraisal management services" means the coordination |
62 | or management of appraisal services for compensation by: |
63 | 1. Employing, contracting with, or otherwise retaining one |
64 | or more appraisers to perform appraisal services for a client; |
65 | or |
66 | 2. Acting as a broker or intermediary between a client and |
67 | one or more appraisers to facilitate the client's employing, |
68 | contracting with, or otherwise retaining the appraisers. |
69 | (e)(c) "Appraisal report" means any communication, written |
70 | or oral, of an appraisal, appraisal review, appraisal consulting |
71 | service, analysis, opinion, or conclusion relating to the |
72 | nature, quality, value, or utility of a specified interest in, |
73 | or aspect of, identified real property, and includes any report |
74 | communicating an appraisal analysis, opinion, or conclusion of |
75 | value, regardless of title. However, in order to be recognized |
76 | in a federally related transaction, an appraisal report must be |
77 | written. |
78 | (f)(d) "Appraisal review" means the act or process of |
79 | developing and communicating an opinion about the quality of |
80 | another appraiser's appraisal, appraisal report, or work. |
81 | (g)(e) "Appraisal subcommittee" means the designees of the |
82 | heads of the federal financial institutions regulatory agencies |
83 | established by the Federal Financial Institutions Examination |
84 | Council Act of 1978 (12 U.S.C. ss. 3301 et seq.), as amended. |
85 | (h)(f) "Appraiser" means any person who is a registered |
86 | trainee real estate appraiser, a licensed real estate appraiser, |
87 | or a certified real estate appraiser. An appraiser renders a |
88 | professional service and is a professional within the meaning of |
89 | s. 95.11(4)(a). |
90 | (i) "Appraiser panel" means a group of appraisers selected |
91 | by an appraisal management company to perform appraisal services |
92 | for clients on behalf of the company. |
93 | (j)(g) "Board" means the Florida Real Estate Appraisal |
94 | Board established under this section. |
95 | (k)(h) "Certified general appraiser" means a person who is |
96 | certified by the department as qualified to issue appraisal |
97 | reports for any type of real property. |
98 | (l)(i) "Certified residential appraiser" means a person |
99 | who is certified by the department as qualified to issue |
100 | appraisal reports for residential real property of one to four |
101 | residential units, without regard to transaction value or |
102 | complexity, or real property as may be authorized by federal |
103 | regulation. |
104 | (m) "Client" means a person who contracts with an |
105 | appraiser or appraisal management company for the performance of |
106 | appraisal services. |
107 | (n)(j) "Department" means the Department of Business and |
108 | Professional Regulation. |
109 | (o)(k) "Direct supervision" means the degree of |
110 | supervision required of a supervisory appraiser overseeing the |
111 | work of a registered trainee appraiser by which the supervisory |
112 | appraiser has control over and detailed professional knowledge |
113 | of the work being done. Direct supervision is achieved when a |
114 | registered trainee appraiser has regular direction, guidance, |
115 | and support from a supervisory appraiser who has the |
116 | competencies as determined by rule of the board. |
117 | (p)(l) "Federally related transaction" means any real |
118 | estate-related financial transaction which a federal financial |
119 | institutions regulatory agency or the Resolution Trust |
120 | Corporation engages in, contracts for, or regulates, and which |
121 | requires the services of a state-licensed or state-certified |
122 | appraiser. |
123 | (q)(m) "Licensed appraiser" means a person who is licensed |
124 | by the department as qualified to issue appraisal reports for |
125 | residential real property of one to four residential units or on |
126 | such real estate or real property as may be authorized by |
127 | federal regulation. After July 1, 2003, the department shall not |
128 | issue licenses for the category of licensed appraiser. |
129 | (r)(n) "Registered trainee appraiser" means a person who |
130 | is registered with the department as qualified to perform |
131 | appraisal services only under the direct supervision of a |
132 | licensed or certified appraiser. A registered trainee appraiser |
133 | may accept appraisal assignments only from her or his primary or |
134 | secondary supervisory appraiser. |
135 | (s) "Signature" means personalized evidence indicating |
136 | authentication of work performed by an appraiser and the |
137 | acceptance of responsibility for the content of an appraisal, |
138 | appraisal review, or appraisal consulting service or conclusions |
139 | in an appraisal report. |
140 | (t)(o) "Supervisory appraiser" means a licensed appraiser, |
141 | a certified residential appraiser, or a certified general |
142 | appraiser responsible for the direct supervision of one or more |
143 | registered trainee appraisers and fully responsible for |
144 | appraisals and appraisal reports prepared by those registered |
145 | trainee appraisers. The board, by rule, shall determine the |
146 | responsibilities of a supervisory appraiser, the geographic |
147 | proximity required, the minimum qualifications and standards |
148 | required of a licensed or certified appraiser before she or he |
149 | may act in the capacity of a supervisory appraiser, and the |
150 | maximum number of registered trainee appraisers to be supervised |
151 | by an individual supervisory appraiser. |
152 | (u)(p) "Training" means the process of providing for and |
153 | making available to a registered trainee appraiser, under direct |
154 | supervision, a planned, prepared, and coordinated program, or |
155 | routine of instruction and education, in appraisal professional |
156 | and technical appraisal skills as determined by rule of the |
157 | board. |
158 | (v)(q) "Uniform Standards of Professional Appraisal |
159 | Practice" means the most recent standards approved and adopted |
160 | by the Appraisal Standards Board of the Appraisal Foundation. |
161 | (w)(r) "Valuation services" means services pertaining to |
162 | aspects of property value and includes such services performed |
163 | by certified appraisers, registered trainee appraisers, and |
164 | others. |
165 | (x)(s) "Work file" means the documentation necessary to |
166 | support an appraiser's analysis, opinions, and conclusions. |
167 | Section 2. Section 475.614, Florida Statutes, is amended |
168 | to read: |
169 | 475.614 Power of board to adopt rules and decide questions |
170 | of practice; requirements for protection of appraiser's |
171 | signature.- |
172 | (1) The board has authority to adopt rules pursuant to ss. |
173 | 120.536(1) and 120.54 to implement provisions of law conferring |
174 | duties upon it. The board may decide questions of practice |
175 | arising in the proceedings before it, having regard to this |
176 | section and the rules then in force. |
177 | (2) The board shall adopt rules specifying the means by |
178 | which an appraiser's signature may be affixed to an appraisal |
179 | report or other work performed by the appraiser. The rules shall |
180 | include requirements for protecting the security of an |
181 | appraiser's signature and prohibiting practices that may |
182 | discredit the use of an appraiser's signature to authenticate |
183 | the work performed by the appraiser. |
184 | Section 3. Subsection (1) of section 475.6147, Florida |
185 | Statutes, is amended to read: |
186 | 475.6147 Fees.- |
187 | (1)(a) The board by rule may establish fees to be paid for |
188 | application, licensing and renewal, certification and |
189 | recertification, registration and reregistration, reinstatement, |
190 | and recordmaking and recordkeeping. |
191 | (b) The fee for initial application of an appraiser may |
192 | not exceed $150, and the combined cost of the application and |
193 | examination may not exceed $300. The initial certification, |
194 | registration, or license fee and the certification, |
195 | registration, or license renewal fee may not exceed $150 for |
196 | each year of the duration of the certification, registration, or |
197 | license. |
198 | (c) The fee for initial application of an appraisal |
199 | management company may not exceed $150. The initial registration |
200 | and registration renewal fee may not exceed $150 for each year |
201 | of the duration of the registration. |
202 | (d) The board may also establish by rule a late renewal |
203 | penalty. |
204 | (e) The board shall establish fees which are adequate to |
205 | ensure its continued operation. Fees shall be based on estimates |
206 | made by the department of the revenue required to implement this |
207 | part and other provisions of law relating to the regulation of |
208 | real estate appraisers. |
209 | Section 4. Section 475.6235, Florida Statutes, is created |
210 | to read: |
211 | 475.6235 Registration of appraisal management companies |
212 | required.- |
213 | (1) A person may not engage in appraisal management |
214 | services for compensation in this state, advertise or represent |
215 | herself or himself as an appraisal management company, or use |
216 | the titles "appraisal management company," "appraiser |
217 | cooperative," "appraiser portal," or "mortgage technology |
218 | company," or any abbreviation or words to that effect, unless |
219 | the person is registered with the department as an appraisal |
220 | management company under this section. However, an employee of |
221 | an appraisal management company is not required to obtain a |
222 | separate registration. |
223 | (2) An application for registration must be submitted to |
224 | the department in the format prescribed by the department and |
225 | must include, at a minimum, the following: |
226 | (a) The firm or business name under which the appraisal |
227 | management company conducts business in this state. The |
228 | appraisal management company must notify the department of any |
229 | change in the firm or business name, on a form provided by the |
230 | department, within 10 days after such change. |
231 | (b) The mailing address, street address, and telephone |
232 | number of the appraisal management company's principal business |
233 | location. The appraisal management company must notify the |
234 | department of any change in the mailing or street address, on a |
235 | form provided by the department, within 10 days after such |
236 | change. |
237 | (c) The appraisal management company's federal employer |
238 | identification number. |
239 | (d) The appraisal management company's type of business |
240 | organization, such as a corporation, partnership, limited |
241 | liability company, or sole proprietorship. |
242 | (e) A statement as to whether the appraisal management |
243 | company, if incorporated, is a domestic or foreign corporation, |
244 | the company's date of incorporation, the state in which the |
245 | company was incorporated, its charter number, and, if it is a |
246 | foreign corporation, the date that the company first registered |
247 | with the Department of State to conduct business in this state. |
248 | (f) The full name, street address, telephone number, |
249 | corporate title, and social security number or federal employer |
250 | identification number of any person who possesses the authority, |
251 | directly or indirectly, to direct the management or policies of |
252 | the appraisal management company, whether through ownership, by |
253 | contract, or otherwise, including, but not limited to: |
254 | 1. Each officer and director if the appraisal management |
255 | company is a corporation. |
256 | 2. Each general partner if the appraisal management |
257 | company is a partnership. |
258 | 3. Each manager or managing member if the appraisal |
259 | management company is a limited liability company. |
260 | 4. The owner if the appraisal management company is a sole |
261 | proprietorship. |
262 | 5. Each other person who, directly or indirectly, owns or |
263 | controls 10 percent or more of an ownership interest in the |
264 | appraisal management company. |
265 | (g) The firm or business name under which any person |
266 | listed in paragraph (f) conducted business as an appraisal |
267 | management company within the 5 years preceding the date of the |
268 | application. |
269 | (h) The appraisal management company's registered agent |
270 | for service of process in this state. |
271 | (3) Appropriate fees, as set forth in the rules of the |
272 | board pursuant to s. 475.6147, and a complete set of |
273 | fingerprints for each person listed in paragraph (2)(f) must |
274 | accompany all applications for registration. The fingerprints |
275 | shall be forwarded to the Division of Criminal Justice |
276 | Information Systems within the Department of Law Enforcement for |
277 | purposes of processing the fingerprints to determine whether the |
278 | person has a criminal history record. The fingerprints shall |
279 | also be forwarded to the Federal Bureau of Investigation for |
280 | purposes of processing the fingerprints to determine whether the |
281 | person has a criminal history record. The information obtained |
282 | by the processing of fingerprints by the Department of Law |
283 | Enforcement and the Federal Bureau of Investigation shall be |
284 | sent to the department for the purpose of determining whether |
285 | the appraisal management company is statutorily qualified for |
286 | registration. |
287 | (4) At the time of filing an application for registration |
288 | of an appraisal management company, each person listed in |
289 | paragraph (2)(f) must sign a pledge to comply with the Uniform |
290 | Standards of Professional Appraisal Practice upon registration |
291 | and must indicate in writing that she or he understands the |
292 | types of misconduct for which disciplinary proceedings may be |
293 | initiated. The application shall expire 1 year after the date |
294 | received. |
295 | (5) Each person listed in paragraph (2)(f) must be |
296 | competent and qualified to engage in appraisal management |
297 | services with safety to the general public and those with whom |
298 | the person may undertake a relationship of trust and confidence. |
299 | If any person listed in paragraph (2)(f) has been denied |
300 | registration, licensure, or certification as an appraiser or has |
301 | been disbarred, or if the person's registration, license, or |
302 | certificate to practice or conduct any regulated profession, |
303 | business, or vocation has been revoked or suspended by this or |
304 | any other state, any nation, any possession or district of the |
305 | United States, or any court or lawful agency thereof because of |
306 | any conduct or practices that would have warranted a like result |
307 | under this part, or if the person has been guilty of conduct or |
308 | practices in this state or elsewhere that would have been |
309 | grounds for disciplining her or his registration, license, or |
310 | certification under this part had the person then been a |
311 | registered trainee appraiser or a licensed or certified |
312 | appraiser, the person shall be deemed not to be qualified |
313 | unless, because of lapse of time and subsequent good conduct and |
314 | reputation, or other reason deemed sufficient, it appears to the |
315 | board that the interest of the public is not likely to be |
316 | endangered by the granting of registration. |
317 | (6) An applicant seeking to become registered under this |
318 | part as an appraisal management company may not be rejected |
319 | solely by virtue of membership or lack of membership of any |
320 | person listed in paragraph (2)(f) or any employee of the company |
321 | in any particular appraisal organization. |
322 | (7) An applicant for registration who is not a resident of |
323 | the state shall file an irrevocable consent that suits and |
324 | actions may be commenced against the appraisal management |
325 | company in any county of the state in which a plaintiff having a |
326 | cause of action or suit against the company resides and that |
327 | service of any process or pleading in suits or actions against |
328 | the company may be made by delivering the process or pleading to |
329 | the director of the Division of Real Estate by certified mail, |
330 | return receipt requested, and also to the appraisal management |
331 | company by registered mail addressed to the company's designated |
332 | principal business location or, if its principal business |
333 | location is located in this state, to the company's registered |
334 | agent. Service, when so made, must be taken and held in all |
335 | courts to be as valid and binding upon the appraisal management |
336 | company as if made upon the company in this state within the |
337 | jurisdiction of the court in which the suit or action is filed. |
338 | The irrevocable consent must be in a form prescribed by the |
339 | department and be acknowledged before a notary public. |
340 | (8) The department shall renew the registration of an |
341 | appraisal management company upon receipt of the renewal |
342 | application and the proper fee. The department shall adopt rules |
343 | establishing a procedure for renewal of the registration of an |
344 | appraisal management company at least every 4 years. |
345 | Section 5. Section 475.624, Florida Statutes, is amended |
346 | to read: |
347 | 475.624 Discipline of appraisers.-The board may deny an |
348 | application for registration or certification of an appraiser; |
349 | may investigate the actions of any appraiser registered, |
350 | licensed, or certified under this part; may reprimand or impose |
351 | an administrative fine not to exceed $5,000 for each count or |
352 | separate offense against any such appraiser; and may revoke or |
353 | suspend, for a period not to exceed 10 years, the registration, |
354 | license, or certification of any such appraiser, or place any |
355 | such appraiser on probation, if the board it finds that the |
356 | registered trainee, licensee, or certificateholder: |
357 | (1) Has violated any provision provisions of this part or |
358 | s. 455.227(1); however, any appraiser registered, licensed, or |
359 | certified certificateholders, registrants, and licensees under |
360 | this part is are exempt from the provisions of s. 455.227(1)(i). |
361 | (2) Has been guilty of fraud, misrepresentation, |
362 | concealment, false promises, false pretenses, dishonest conduct, |
363 | culpable negligence, or breach of trust in any business |
364 | transaction in this state or any other state, nation, or |
365 | territory; has violated a duty imposed upon her or him by law or |
366 | by the terms of a contract, whether written, oral, express, or |
367 | implied, in an appraisal assignment; has aided, assisted, or |
368 | conspired with any other person engaged in any such misconduct |
369 | and in furtherance thereof; or has formed an intent, design, or |
370 | scheme to engage in such misconduct and committed an overt act |
371 | in furtherance of such intent, design, or scheme. It is |
372 | immaterial to the guilt of the registered trainee appraiser or |
373 | licensed, licensee, or certified appraiser certificateholder |
374 | that the victim or intended victim of the misconduct has |
375 | sustained no damage or loss; that the damage or loss has been |
376 | settled and paid after discovery of the misconduct; or that such |
377 | victim or intended victim was a customer or a person in |
378 | confidential relation with the registered trainee appraiser or |
379 | licensed, licensee, or certified appraiser certificateholder, or |
380 | was an identified member of the general public. |
381 | (3) Has advertised services in a manner that which is |
382 | fraudulent, false, deceptive, or misleading in form or content. |
383 | (4) Has violated any provision of the provisions of this |
384 | part or any lawful order or rule issued under the provisions of |
385 | this part or chapter 455. |
386 | (5) Has been convicted or found guilty of, or entered a |
387 | plea of nolo contendere to, regardless of adjudication, a crime |
388 | in any jurisdiction that which directly relates to the |
389 | activities of a registered trainee appraiser or licensed or |
390 | certified appraiser, or that which involves moral turpitude or |
391 | fraudulent or dishonest conduct. The record of a conviction |
392 | certified or authenticated in such form as admissible in |
393 | evidence under the laws of the state shall be admissible as |
394 | prima facie evidence of such guilt. |
395 | (6) Has had a registration, license, or certification as |
396 | an appraiser revoked, suspended, or otherwise acted against;, or |
397 | has been disbarred;, or has had her or his registration, |
398 | license, or certificate to practice or conduct any regulated |
399 | profession, business, or vocation revoked or suspended by this |
400 | or any other state, any nation, or any possession or district of |
401 | the United States;, or has had an application for such |
402 | registration, licensure, or certification to practice or conduct |
403 | any regulated profession, business, or vocation denied by this |
404 | or any other state, any nation, or any possession or district of |
405 | the United States. |
406 | (7) Has become temporarily incapacitated from acting as an |
407 | appraiser with safety to those in a fiduciary relationship with |
408 | her or him because of drunkenness, use of drugs, or temporary |
409 | mental derangement; however, suspension of a license, |
410 | certification, or registration in such cases shall only be for |
411 | the period of such incapacity. |
412 | (8) Is confined in any county jail, postadjudication; is |
413 | confined in any state or federal prison or mental institution; |
414 | or, through mental disease or deterioration, can no longer |
415 | safely be entrusted to deal with the public or in a confidential |
416 | capacity. |
417 | (9) Has failed to inform the board in writing within 30 |
418 | days after pleading guilty or nolo contendere to, or being |
419 | convicted or found guilty of, any felony. |
420 | (10) Has been found guilty, for a second time, of any |
421 | misconduct that warrants disciplinary action, or has been found |
422 | guilty of a course of conduct or practice that which shows that |
423 | she or he is incompetent, negligent, dishonest, or untruthful to |
424 | an extent that those with whom she or he may sustain a |
425 | confidential relationship may not safely do so. |
426 | (11) Has made or filed a report or record, either written |
427 | or oral, that which the registered trainee appraiser or |
428 | licensed, licensee, or certified appraiser certificateholder |
429 | knows to be false; has willfully failed to file a report or |
430 | record required by state or federal law; has willfully impeded |
431 | or obstructed such filing;, or has induced another person to |
432 | impede or obstruct such filing. However, such reports or records |
433 | shall include only those that which are signed or presented in |
434 | the capacity of a registered trainee appraiser or licensed or |
435 | certified appraiser. |
436 | (12) Has obtained or attempted to obtain a registration, |
437 | license, or certification by means of knowingly making a false |
438 | statement, submitting false information, refusing to provide |
439 | complete information in response to an application question, or |
440 | engaging in fraud, misrepresentation, or concealment. |
441 | (13) Has paid money or other valuable consideration, |
442 | except as required by this section, to any member or employee of |
443 | the board to obtain a registration, license, or certification |
444 | under this section. |
445 | (14) Has violated any standard for the development or |
446 | communication of a real estate appraisal or other provision of |
447 | the Uniform Standards of Professional Appraisal Practice. |
448 | (15) Has failed or refused to exercise reasonable |
449 | diligence in developing an appraisal or preparing an appraisal |
450 | report. |
451 | (16) Has failed to communicate an appraisal without good |
452 | cause. |
453 | (17) Has accepted an appraisal assignment if the |
454 | employment itself is contingent upon the appraiser reporting a |
455 | predetermined result, analysis, or opinion, or if the fee to be |
456 | paid for the performance of the appraisal assignment is |
457 | contingent upon the opinion, conclusion, or valuation reached |
458 | upon the consequences resulting from the appraisal assignment. |
459 | (18) Has failed to timely notify the department of any |
460 | change in business location, or has failed to fully disclose all |
461 | business locations from which she or he operates as a registered |
462 | trainee real estate appraiser or licensed or certified real |
463 | estate appraiser. |
464 | Section 6. Section 475.6245, Florida Statutes, is created |
465 | to read: |
466 | 475.6245 Discipline of appraisal management companies.- |
467 | (1) The board may deny an application for registration of |
468 | an appraisal management company; may investigate the actions of |
469 | any appraisal management company registered under this part; may |
470 | reprimand or impose an administrative fine not to exceed $5,000 |
471 | for each count or separate offense against any such appraisal |
472 | management company; and may revoke or suspend, for a period not |
473 | to exceed 10 years, the registration of any such appraisal |
474 | management company, or place any such appraisal management |
475 | company on probation, if the board finds that the appraisal |
476 | management company or any person listed in s. 475.6235(2)(f): |
477 | (a) Has violated any provision of this part or s. |
478 | 455.227(1); however, any appraisal management company registered |
479 | under this part is exempt from s. 455.227(1)(i). |
480 | (b) Has been guilty of fraud, misrepresentation, |
481 | concealment, false promises, false pretenses, dishonest conduct, |
482 | culpable negligence, or breach of trust in any business |
483 | transaction in this state or any other state, nation, or |
484 | territory; has violated a duty imposed upon her or him by law or |
485 | by the terms of a contract, whether written, oral, express, or |
486 | implied, in an appraisal assignment; has aided, assisted, or |
487 | conspired with any other person engaged in any such misconduct |
488 | and in furtherance thereof; or has formed an intent, design, or |
489 | scheme to engage in such misconduct and committed an overt act |
490 | in furtherance of such intent, design, or scheme. It is |
491 | immaterial to the guilt of the appraisal management company that |
492 | the victim or intended victim of the misconduct has sustained no |
493 | damage or loss; that the damage or loss has been settled and |
494 | paid after discovery of the misconduct; or that such victim or |
495 | intended victim was a customer or a person in confidential |
496 | relation with the appraisal management company or was an |
497 | identified member of the general public. |
498 | (c) Has advertised services in a manner that is |
499 | fraudulent, false, deceptive, or misleading in form or content. |
500 | (d) Has violated any provision of this part or any lawful |
501 | order or rule issued under this part or chapter 455. |
502 | (e) Has been convicted or found guilty of, or entered a |
503 | plea of nolo contendere to, regardless of adjudication, a crime |
504 | in any jurisdiction that directly relates to the activities of |
505 | an appraisal management company or that involves moral turpitude |
506 | or fraudulent or dishonest conduct. The record of a conviction |
507 | certified or authenticated in such form as admissible in |
508 | evidence under the laws of the state shall be admissible as |
509 | prima facie evidence of such guilt. |
510 | (f) Has had a registration, license, or certification as |
511 | an appraiser or a registration as an appraisal management |
512 | company revoked, suspended, or otherwise acted against; has been |
513 | disbarred; has had her or his registration, license, or |
514 | certificate to practice or conduct any regulated profession, |
515 | business, or vocation revoked or suspended by this or any other |
516 | state, any nation, or any possession or district of the United |
517 | States; or has had an application for such registration, |
518 | licensure, or certification to practice or conduct any regulated |
519 | profession, business, or vocation denied by this or any other |
520 | state, any nation, or any possession or district of the United |
521 | States. |
522 | (g) Has become temporarily incapacitated from acting as an |
523 | appraisal management company with safety to those in a fiduciary |
524 | relationship with her or him because of drunkenness, use of |
525 | drugs, or temporary mental derangement; however, suspension of a |
526 | registration in such cases shall only be for the period of such |
527 | incapacity. |
528 | (h) Is confined in any county jail, postadjudication; is |
529 | confined in any state or federal prison or mental institution; |
530 | or, through mental disease or deterioration, can no longer |
531 | safely be entrusted to deal with the public or in a confidential |
532 | capacity. |
533 | (i) Has failed to inform the board in writing within 30 |
534 | days after pleading guilty or nolo contendere to, or being |
535 | convicted or found guilty of, any felony. |
536 | (j) Has been found guilty, for a second time, of any |
537 | misconduct that warrants disciplinary action, or has been found |
538 | guilty of a course of conduct or practice that shows that she or |
539 | he is incompetent, negligent, dishonest, or untruthful to an |
540 | extent that those with whom she or he may sustain a confidential |
541 | relationship may not safely do so. |
542 | (k) Has made or filed a report or record, either written |
543 | or oral, that the appraisal management company knows to be |
544 | false; has willfully failed to file a report or record required |
545 | by state or federal law; has willfully impeded or obstructed |
546 | such filing; or has induced another person to impede or obstruct |
547 | such filing. However, such reports or records shall include only |
548 | those that are signed or presented in the capacity of an |
549 | appraisal management company. |
550 | (l) Has obtained or attempted to obtain a registration, |
551 | license, or certification by means of knowingly making a false |
552 | statement, submitting false information, refusing to provide |
553 | complete information in response to an application question, or |
554 | engaging in fraud, misrepresentation, or concealment. |
555 | (m) Has paid money or other valuable consideration, except |
556 | as required by this section, to any member or employee of the |
557 | board to obtain a registration, license, or certification under |
558 | this section. |
559 | (n) Has instructed an appraiser to violate any standard |
560 | for the development or communication of a real estate appraisal |
561 | or other provision of the Uniform Standards of Professional |
562 | Appraisal Practice. |
563 | (o) Has engaged in the development of an appraisal or the |
564 | preparation of an appraisal report. |
565 | (p) Has failed to communicate an appraisal without good |
566 | cause. |
567 | (q) Has accepted an appraisal assignment if the employment |
568 | itself is contingent upon the appraisal management company |
569 | reporting a predetermined result, analysis, or opinion or if the |
570 | fee to be paid for the performance of the appraisal assignment |
571 | is contingent upon the opinion, conclusion, or valuation reached |
572 | upon the consequences resulting from the appraisal assignment. |
573 | (r) Has failed to timely notify the department of any |
574 | change in principal business location as an appraisal management |
575 | company. |
576 | (s) Has influenced or attempted to influence the |
577 | development, reporting, or review of an appraisal through |
578 | coercion, extortion, collusion, compensation, inducement, |
579 | intimidation, bribery, or any other means, including, but not |
580 | limited to: |
581 | 1. Withholding or threatening to withhold timely payment |
582 | for an appraisal, unless such nonpayment is based upon specific |
583 | quality or other service issues that constitute noncompliance |
584 | with the appraisal engagement agreement. |
585 | 2. Withholding or threatening to withhold future business |
586 | from an appraiser. |
587 | 3. Promising future business, promotions, or increased |
588 | compensation for an appraiser, whether the promise is express or |
589 | implied. |
590 | 4. Conditioning a request for appraisal services or the |
591 | payment of an appraisal fee, salary, or bonus upon the opinion, |
592 | conclusion, or valuation to be reached or upon a preliminary |
593 | estimate or opinion requested from an appraiser. |
594 | 5. Requesting that an appraiser provide an estimated, |
595 | predetermined, or desired valuation in an appraisal report or |
596 | provide estimated values or comparable sales at any time before |
597 | the appraiser's completion of appraisal services. |
598 | 6. Providing to an appraiser an anticipated, estimated, |
599 | encouraged, or desired value for a subject property or a |
600 | proposed or target amount to be loaned to the borrower, except |
601 | that a copy of the sales contract for purchase transactions may |
602 | be provided. |
603 | 7. Providing to an appraiser, or any person related to the |
604 | appraiser, stock or other financial or nonfinancial benefits. |
605 | 8. Allowing the removal of an appraiser from an appraiser |
606 | panel without prior written notice to the appraiser. |
607 | 9. Obtaining, using, or paying for a second or subsequent |
608 | appraisal or ordering an automated valuation model in connection |
609 | with a mortgage financing transaction unless there is a |
610 | reasonable basis to believe that the initial appraisal was |
611 | flawed or tainted and such basis is clearly and appropriately |
612 | noted in the loan file, or unless such appraisal or automated |
613 | valuation model is issued pursuant to a bona fide prefunding or |
614 | postfunding appraisal review or quality control process. |
615 | 10. Any other act or practice that impairs or attempts to |
616 | impair an appraiser's independence, objectivity, or |
617 | impartiality. |
618 | (t) Has altered, modified, or otherwise changed a |
619 | completed appraisal report submitted by an appraiser to an |
620 | appraisal management company. |
621 | (u) Has employed, contracted with, or otherwise retained |
622 | an appraiser whose registration, license, or certification is |
623 | suspended or revoked to perform appraisal services or appraisal |
624 | management services. |
625 | (2) The board may reprimand an appraisal management |
626 | company, conditionally or unconditionally suspend or revoke any |
627 | registration of an appraisal management company issued under |
628 | this part, or impose administrative fines not to exceed $5,000 |
629 | for each count or separate offense against any such appraisal |
630 | management company if the board determines that the appraisal |
631 | management company is attempting to perform, has performed, or |
632 | has attempted to perform any of the following acts: |
633 | (a) Committing any act in violation of this part. |
634 | (b) Violating any rule adopted by the board under this |
635 | part. |
636 | (c) Obtaining a registration of an appraisal management |
637 | company by fraud, misrepresentation, or deceit. |
638 | (3) This section does not prohibit an appraisal management |
639 | company from requesting an appraiser to: |
640 | (a) Provide additional information about the basis of a |
641 | valuation, including consideration of additional comparable |
642 | data; or |
643 | (b) Correct objective factual errors in an appraisal |
644 | report. |
645 | Section 7. Section 475.626, Florida Statutes, is amended |
646 | to read: |
647 | 475.626 Violations and penalties.- |
648 | (1) A person may not: VIOLATIONS.- |
649 | (a) No person shall Operate or attempt to operate as a |
650 | registered trainee appraiser, a or licensed or certified |
651 | appraiser, or an appraisal management company without being the |
652 | holder of a valid and current registration, license, or |
653 | certification. |
654 | (b) No person shall Violate any lawful order or rule of |
655 | the board which is binding upon her or him. |
656 | (c) No person shall Commit any conduct or practice set |
657 | forth in s. 475.624 or s. 475.6245. |
658 | (d) No person shall Make any false affidavit or |
659 | affirmation intended for use as evidence by or before the board |
660 | or any member thereof, or by any of its authorized |
661 | representatives, nor may shall any person give false testimony |
662 | under oath or affirmation to or before the board or any member |
663 | thereof in any proceeding authorized by this section. |
664 | (e) No person shall Fail or refuse to appear at the time |
665 | and place designated in a subpoena issued with respect to a |
666 | violation of this section, unless such failure to appear is the |
667 | result of facts or circumstances that are sufficient to excuse |
668 | appearance in response to a subpoena from the circuit court; nor |
669 | may shall a person who is present before the board or a member |
670 | thereof or one of its authorized representatives acting under |
671 | authority of this section refuse to be sworn or to affirm or |
672 | fail or refuse to answer fully any question propounded by the |
673 | board, the member, or such representative, or by any person by |
674 | the authority of such officer or appointee. |
675 | (f) No person shall Obstruct or hinder in any manner the |
676 | enforcement of this section or the performance of any lawful |
677 | duty by any person acting under the authority of this section, |
678 | or interfere with, intimidate, or offer any bribe to any member |
679 | of the board or any of its employees or any person who is, or is |
680 | expected to be, a witness in any investigation or proceeding |
681 | relating to a violation of this section. |
682 | (g) No person shall Knowingly conceal any information |
683 | relating to violations of this section. |
684 | (2) A PENALTIES.-Any person who violates any provision of |
685 | the provisions of subsection (1) commits is guilty of a |
686 | misdemeanor of the second degree, punishable as provided in s. |
687 | 775.082 or s. 775.083, except when a different punishment is |
688 | prescribed by this section. Nothing in This section does not |
689 | shall prohibit the prosecution under any other criminal statute |
690 | of this state of any person for an act or conduct prohibited by |
691 | this section; however, in such cases, the state may prosecute |
692 | under this section or under such other statute, or may charge |
693 | both offenses in one prosecution, but the sentence imposed shall |
694 | not be a greater fine or longer sentence than that prescribed |
695 | for the offense which carries the more severe penalties. A civil |
696 | case, a criminal case, or a denial, revocation, or suspension |
697 | proceeding may arise out of the same alleged state of facts, and |
698 | the pendency or result of one such case or proceeding shall not |
699 | stay or control the result of either of the others. |
700 | Section 8. Section 475.629, Florida Statutes, is amended |
701 | to read: |
702 | 475.629 Retention of records.-An appraiser registered, |
703 | licensed, or certified under this part or an appraisal |
704 | management company registered under this part shall retain, for |
705 | at least 5 years or the period specified in the Uniform |
706 | Standards of Professional Appraisal Practice, whichever is |
707 | greater, original or true copies of any contracts engaging the |
708 | appraiser's or appraisal management company's services, |
709 | appraisal reports, and supporting data assembled and formulated |
710 | by the appraiser or company in preparing appraisal reports or |
711 | engaging in appraisal management services. Except as otherwise |
712 | specified in the Uniform Standards of Professional Appraisal |
713 | Practice, the period for retention of the records applicable to |
714 | each engagement of the services of the appraiser or appraisal |
715 | management company runs from the date of the submission of the |
716 | appraisal report to the client. These records must be made |
717 | available by the appraiser or appraisal management company for |
718 | inspection and copying by the department upon on reasonable |
719 | notice to the appraiser or company. However, the department may |
720 | not inspect or copy the records of an appraisal management |
721 | company except in connection with a pending investigation or |
722 | complaint. If an appraisal has been the subject of or has served |
723 | as evidence for litigation, reports and records must be retained |
724 | for at least 2 years after the trial or the period specified in |
725 | the Uniform Standards of Professional Appraisal Practice, |
726 | whichever is greater. |
727 | Section 9. This act shall take effect July 1, 2010. |