Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 32-3601, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3601. Definitions
In this chapter, unless the context otherwise requires:
1. "Appraisal" or "real estate
appraisal" means a statement independently and impartially prepared by an
individual setting forth an opinion as to the market value of real property as
of a specific date and supported by the presentation and analysis of relevant
market information.
2. "Appraisal assignment" means an
engagement for which a real estate appraiser is employed or retained to act, or
would be perceived by third parties or the public in acting, as a disinterested
third party in rendering an unbiased analysis, opinion or conclusion relating
to the nature, quality, value or utility of specified interests in or aspects
of identified real estate.
3. "Appraisal foundation" means the
appraisal foundation incorporated as an Illinois not‑for‑profit
corporation on November 30, 1987.
4. "Appraisal report" means any
communication, written or oral, of an appraisal.
5. "Appraisal review" means the act of
reviewing or the report that follows a review of an appraisal assignment or
appraisal report in which a real estate appraiser forms an opinion as to the
adequacy and appropriateness of the report being reviewed.
6. "Appraisal
standards board" means the appraisal standards board appointed by the
board of trustees of the appraisal foundation to develop, interpret and amend
the uniform standards of professional appraisal practice.
6. 7. "Appraisal
subcommittee" means the subcommittee of the federal financial institutions
examination council created pursuant to 12 United States Code section 3310 and
chapter 34A, as amended.
7. 8. "Appraiser
qualifications board" means the appraiser qualifications board appointed
by the board of trustees of the appraisal foundation to establish the minimum
education, experience and examination requirements for real estate appraisers.
8. 9. "Board"
means the state board of appraisal.
9. "Certified
appraisal" or "certified appraisal report" means an appraisal or
appraisal report given or signed and certified as such by a state certified
appraiser.
10. "Complex one to four residential
units" means property that is atypical for the
marketplace. Atypical factors may include architectural style, age
of improvements, size of improvements, size of lot, neighborhood land use,
potential environmental hazard liability, leasehold interests, limited readily
available comparable sales data or other unusual factors.
11. "Course review
approval" means the act of the board reviewing course
materials to form an opinion as to the adequacy and appropriateness of the
course for licensing pursuant to
section 32-3613, certification pursuant to section 32-3614 and continuing
education as prescribed in section 32‑3625
in accordance with the appraiser qualifications board and this chapter.
12. "Federal financial institutions examination
council" means that agency of the federal government created pursuant to
12 United States Code chapters 34 and 34A, as amended.
13. "Federally related transaction" means
any real estate related financial transaction that a federal financial
institution's regulatory agency or the resolution trust corporation engages in,
contracts for or regulates and that requires an appraisal.
14. "Licensed
appraisal" or "licensed appraisal report" means an appraisal or
appraisal report given or signed by a state licensed appraiser.
15. 14. "Property
tax agent" means an individual who is designated by a person or is an
employee of an entity designated as an agent pursuant to section 42‑16001,
who acts on behalf of a person who owns, controls or possesses property valued
by a county assessor and who receives a fee for the analysis of any matter
relating to the review of the valuation of the person's property before the
assessor. Property tax agent does not include a person who is admitted to
practice law in this state, an employee of the person owning, controlling or
possessing the property or an employee of an entity designated pursuant to
section 42‑16001, if the employee is performing a secretarial, clerical
or administrative support function.
16. 15. "Real
estate" means an identified parcel or tract of land, including
improvements, if any.
17. 16. "Real
estate related financial transaction" means any transaction involving the
sale, lease, purchase, investment in or exchange of real property, including
interests in property or the financing of property, the refinancing of real
property or interests in real property and the use of real property or
interests in property as security for a loan or investment including mortgage‑backed
securities.
18. 17. "Real
property" means one or more defined interests, benefits and rights
inherent in the ownership of real estate.
19. 18. "Review
appraiser" means a person who engages in the activity of reviewing and
evaluating the appraisal work of others from the perspective of an appraiser,
generally for compensation as a separate skill. This includes the
function of reviewing an appraisal report or a file memorandum setting forth
the results of the review process.
20. 19. "Standards
of professional appraisal practice" means the uniform standards of
professional appraisal practice adopted by the board.
21. 20. "State
licensed or state certified appraiser" means a person who develops and
communicates appraisals and who holds a current, valid license or certificate
issued to him under the provisions of this chapter.
22. "Valuation"
means an estimate of the value of property.
21. "Value"
means the monetary relationship between properties and those who buy, sell or
use those properties. END_STATUTE
Sec. 2. Section
32-3602, Arizona Revised Statutes, is amended to read:
START_STATUTE32-3602. Applicability of chapter
This chapter does not apply to:
1. A real estate broker or salesperson who is
licensed in this state and who, when acting as such, gives an opinion as to the
price of real estate for the purpose of
prospective listing or sale if this opinion is not referred to as
an appraisal.
2. A natural person, a corporation through its
officers or a partnership through its partners that deals in gives an opinion of value of that person's or its own
property and does not receive special compensation for the transaction if this opinion is not referred to as an
appraisal.
3. An attorney in the performance of that person's
duties as an attorney.
4. A mortgage banker, mortgage broker or commercial
mortgage banker who is licensed in this state and who, when acting as such,
prepares a report analyzing real property if the report is not made for the
primary purpose of establishing the sale or market value of the property.
5. An individual who is otherwise subject to
licensing or certification by law and whose duties require appraisal of real
property for purposes of tax assessment.
6. A
professional An engineer
or architect registered in this state or a contractor or insurance producer
licensed in this state who, when acting as such, prepares a report analyzing
real property if the report utilizes the specialized knowledge of the
registered professional
engineer or architect or the licensed contractor or insurance producer.
7. A property tax agent who is registered in this
state and who, when acting as such, prepares a report analyzing real estate if
the report is made for purposes of tax assessment or tax valuation of the real
estate.
8. An individual appraising real property only for
the purpose of providing an opinion in a judicial proceeding or an individual
providing an opinion in a judicial proceeding. An individual providing an
opinion under the exemption of this paragraph shall not represent or imply in
any report or testimony that the individual testifying is licensed or certified
under this chapter.
9. A person
who produces a statement that is provided to any other person concerning the
estimated value of real property through an internet website, automated
valuation or other software program or other means of comparative market
analysis and who discloses that the estimate is not an appraisal. END_STATUTE
Sec. 3. Section 32-3603, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3603. License or certificate use; exception
A. All real estate appraisals and appraisal reviews
performed on real property in
this state shall be performed only by individuals licensed or certified in
accordance with the requirements of this chapter. No person, other
than a state licensed or state certified appraiser, may assume or use that
title or any title, designation or abbreviation likely to create the impression
of licensure or certification as an appraiser by this state.
B. No person other than a state licensed or state
certified appraiser may receive a fee for a real estate appraisal or an
appraisal review of real property in
this state. END_STATUTE
Sec. 4. Section 32-3604, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3604. State board of appraisal
A. A state board of appraisal is established and is
composed of nine members who are appointed by the governor pursuant to section
38‑211.
B. The membership of the board consists of:
1. Four members who are state certified or state
licensed appraisers under this chapter, one of whom is a state certified
general appraiser, one of whom is a state certified residential appraiser, one
of whom is a state licensed appraiser and one of whom is any state certified or
state licensed appraiser. Membership in a professional appraisal
organization or association is not a prerequisite to service on the board.
2. Three public members who are not related within
the third degree of consanguinity or affinity to any real estate appraiser.
3. A registered property tax agent.
4. One member, who is not a certified or licensed
appraiser, who is employed by a lending institution that purchases or makes use
of either commercial or residential appraisals and whose position of employment
relates to the use of appraisals by that institution.
C. Members shall serve for staggered terms of three
years.
D. No person
may serve as a member of the board for more than two consecutive terms. Not
more than two persons from the same professional appraisal organization or
association may serve on the board concurrently. The governor may remove a
member for cause. No person may serve
as a member of the board for more than two consecutive terms unless both of the
following apply:
1. The
person is appointed to serve the remainder of some other board member's term of
office after that board member's seat is declared vacant.
2. The
person's service for the remainder of the vacated term does not exceed eighteen
months.
E. The public members of the board shall not be
engaged in the practice of appraising or be the owner or employee of any
proprietary business involving appraisal education or testing of appraisers.
F. The board shall meet at least once each calendar
quarter to conduct business. Places of future meetings shall be
decided by the vote of members at meetings. By order of the chairman and if
necessary to meet the requirements of this chapter, the board may hold special
meetings or emergency meetings including meetings using conference telephone or
other similar communications equipment in such a manner that the voices of all
members participating in the meeting are simultaneously audible to all other
members participating in the meeting.
G. The board shall meet to elect a chairman annually
from among its members.
H. A majority of the members constitutes a quorum.
I. Each member of the board is eligible to receive
compensation not to exceed one hundred fifty dollars for each day or seventy‑five
dollars for each part of a day consisting of less than four hours actually
spent in the conduct of the business of the board, plus reimbursement for all
expenses pursuant to title 38, chapter 4, article 2.
J. The auditor general shall conduct a performance
audit or a special audit of the board pursuant to section 41‑1279.03 on
or before December 31, 2004 and at least once every ten years
thereafter. The auditor general shall also conduct performance
audits or special audits of the board when directed to do so by the joint
legislative audit committee. END_STATUTE
Sec. 5. Section 32-3605, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3605. State board of appraisal; duties
A. The board shall adopt rules in aid or in
furtherance of this chapter.
B. The state board of appraisal shall:
1. In prescribing standards of professional
appraisal practice, adopt standards that at a minimum are equal to the
standards prescribed by the appraiser
qualifications board
appraisal standards board.
2. In prescribing criteria for certification, adopt
criteria that at a minimum are equal to the minimum criteria for certification
adopted by the appraisal subcommittee appraiser qualifications board.
3. In prescribing criteria for licensing, adopt
criteria that at a minimum are equal to the minimum criteria for licensing
adopted by the appraisal subcommittee appraiser qualifications board.
4. Further define by rule with respect to state
licensed or state certified appraisers appropriate and reasonable educational
experience, appraisal experience and equivalent experience that meets the
statutory requirement of this chapter.
5. Establish the examination specifications for
state certified appraisers, provide or procure appropriate examination
questions and answers, administer examinations and establish procedures for
grading examinations consistent with and equivalent to the criteria adopted by
the appraisal subcommittee appraiser qualifications board.
6. Establish the examination specifications for
state licensed appraisers, provide or procure appropriate examination questions
and answers, administer examinations and establish procedures for grading
examinations consistent with and equivalent to the criteria adopted by the appraisal subcommittee appraiser qualifications board.
7. Establish administrative procedures for approving
or disapproving applications for licensure and certification and issuing
licenses and certificates.
8. Define by rule, with respect to state licensed
and certified appraisers, the continuing education requirements for the renewal
of licenses or certificates that satisfy the statutory requirements provided in
this chapter.
9. Periodically review the requirements for the
development and communication of appraisals provided in this chapter and adopt
rules explaining and interpreting the requirements.
10. Define and explain by rule each stage and step
associated with the administrative procedures for the disciplinary process
pursuant to this chapter including:
(a) Prescribing minimum criteria for accepting a
complaint against a licensed or certified appraiser.
(b) Defining the process and procedures used in
investigating the allegations of the complaint.
(c) Defining the process and procedures used in
hearings on the complaint, including a description of the rights of the board
and any person who is alleged to have committed the violation.
(d) Establishing criteria to be used in determining
the appropriate actions for violations.
11. Communicate information that is useful to the
public and appraisers relating to actions for violations.
12. Censure, suspend and revoke licenses and
certificates pursuant to the disciplinary proceedings provided for in section
32‑3631.
13. At least monthly transmit to the appraisal
subcommittee a roster listing individuals who have received a state certificate
or license in accordance with this chapter.
14. Report on the disposition of any matter referred
by the appraisal subcommittee or any other federal agency or instrumentality or
federally recognized entity reporting any action of a state licensed or state
certified appraiser that is contrary to this chapter.
15. Make a determination and finding if there exists
a scarcity of state certified or state licensed appraisers to perform
appraisals in connection with federally related transactions in this state and
issue resident temporary licenses and certificates pursuant to section 32‑3626.
16. Transmit the annual national
registry fee collected pursuant to section 32‑3607 to the federal financial institutions examination
council appraisal
subcommittee.
17. Establish the fees in accordance with the limits
established in section 32‑3607.
18. Perform such other functions and duties as may
be necessary to carry out this chapter.
C. The board may employ an executive director and
other personnel and designate their duties. The executive director
shall serve at the pleasure of the board.
D. The executive director shall not change or amend
actions of the board. END_STATUTE
Sec. 6. Section 32-3607, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3607. Fees
A. The board shall charge and collect fees that are
sufficient to fund the activities necessary to carry out this
chapter. These include:
1. An application fee for licensure or certification, of not more than four hundred dollars.
2. An application fee for a resident temporary
license or certificate,
of not more than four
hundred dollars.
3. An examination fee, of
not more than one hundred dollars.
4. A
reexamination fee, not more than one hundred dollars.
5. 4. A fee
for renewal of a license, certificate or resident temporary license or
certificate, of not more than four hundred
twenty‑five dollars.
6. 5. A
delinquent renewal fee in addition to the renewal fee, of
not more than twenty‑five dollars.
7. 6. A two year federal national registry fee, of
not to exceed the actual cost of twice the current annual federal national registry fee.
8. 7. A nonresident
temporary license licensure or certification fee, of not more than one hundred fifty dollars.
9. A fee for
an extension to renew a license or certification of not more than six months,
not more than twenty dollars.
10. 8. A
course review approval fee, of
not more than five hundred dollars.
B. If the appraisal
subcommittee raises the federal
national registry fee
during the second year of a biennial license or certificate, state licensed and
state certified appraisers shall pay the additional federal
national registry fee on demand by the board. Failure
to pay the additional fee within thirty days of notice by the board subjects
the licensee license or certificate holder
to a penalty of twice the amount owed but not to exceed twenty
dollars. The board shall not renew a license or certificate until
all outstanding obligations of the licensee
license or certificate
holder are paid. END_STATUTE
Sec. 7. Section 32-3608, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3608. Board of appraisal fund
A. A board of
appraisal fund is established. Except as provided in subsection C of
this section, pursuant to sections 35‑146 and 35‑147, the board
shall deposit ten per cent of the monies in the state general fund and deposit
the remaining ninety per cent in the board of appraisal fund.
B. Except as provided in subsection C of this
section, all monies deposited in the board of appraisal fund are subject to
section 35‑143.01.
C. The federal
national registry fee
collected pursuant to section 32‑3607, subsection A, paragraph 7 6 shall be deposited in the board of appraisal
fund pending transmittal to the federal
financial institutions examination council on direction by the board appraisal subcommittee. These
monies are not subject to section 35‑143.01. END_STATUTE
Sec. 8. Title 32, chapter 36, article 1,
Arizona Revised Statutes, is amended by adding section 32-3609, to read:
START_STATUTE32-3609. Confidential records
Except as otherwise
provided by law, the following records are confidential:
1. Questions
contained in any examination administered by or for the board or in any
examination submitted to the board for course approval.
2. Questions
asked and the answers of individual examinees, except that the board shall
provide the grades of each examinee for public inspection and copying.
3. Appraisal
reports or appraisal reviews and supporting documentation deemed confidential
under the uniform standards of professional appraisal practice edition adopted
by the board.
4. All
documents associated with a complaint until the complaint is resolved. END_STATUTE
Sec. 9. Section 32-3611, Arizona Revised Statutes,
is amended to read:
START_STATUTE32-3611. Licensure and certification process
A. Applications for original licensure or
certification, renewals and examinations shall be made in writing to the
executive director on forms approved by the board.
B. Appropriate fees, as fixed by the board pursuant
to section 32‑3607, shall accompany all applications for original
licensure or certification, renewal and examination.
C. At the time of filing an application for
licensure or certification, each applicant shall sign a pledge to comply with
the standards set forth in this chapter and shall state that he the
applicant understands the types of misconduct for which
disciplinary proceedings may be initiated against a state licensed or state
certified appraiser, as set forth in this chapter.
D. Except as otherwise provided in this chapter, the
executive director shall require such other proof and request such documents,
through the application or otherwise, as the board deems necessary for the
interests of the public and to verify the honesty, truthfulness, reputation and
competency of the applicant and shall require that the applicant for licensure
or certification:
1. Be at least eighteen years of age and a citizen of
the United States or a qualified alien
as defined in 8 United States Code section 1641 legal resident alien.
2. Shall not have had a license or certificate
denied pursuant to this chapter within one year immediately preceding the
application.
3. Shall not have had a license or certificate
revoked pursuant to this chapter within two years immediately preceding the
application.
4. State whether or not he the
applicant has ever been convicted in a court of competent
jurisdiction in this or any other state of a felony or of forgery, theft,
extortion or conspiracy to defraud or any other offense crime
involving dishonesty or moral turpitude.
E. Applications for licensure or certification by
persons who are charged or under indictment for fraud involving appraisal of
real property may be denied pending final disposition of the charge or
indictment. Upon final disposition, the board shall review the
proceedings and act upon the application. END_STATUTE
Sec. 10. Section
32-3615, Arizona Revised Statutes, is amended to read:
START_STATUTE32-3615. Experience requirement for licensure
or certification
A. An original
certificate as a state certified real estate appraiser shall not be issued to
any person who does not possess either:
1. Two years
of experience as an appraiser in real estate appraisal supported by adequate
written reports or filed memoranda. This experience shall have been
acquired during any period within five years immediately preceding the filing
of the application for certification.
2. Four years
of experience as an appraiser in real estate appraisal supported by adequate
written reports or filed memoranda. This experience shall have been
acquired during any period within ten years immediately preceding the filing of
the application for certification.
A. Each
applicant for licensure or certification shall have experience that was
acquired within ten years immediately preceding the filing of the application
for licensure or certification.
B. Each applicant for licensure or certification shall furnish under
oath a detailed listing of the real estate or other appraisal reports, review
reports or filed memoranda for each year for which experience is claimed by the
applicant. On request, the applicant shall make available to the
board for examination copies of appraisal reports which the applicant has
prepared in the course of his
the applicant's appraisal
practice experience. END_STATUTE
Sec. 11. Section 32-3617, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3617. Nonresident temporary licensure or
certification
A. Every applicant for nonresident temporary licensure or
certification under this chapter who is not a resident of this state shall
submit, with the application for nonresident
temporary licensure or certification, an irrevocable consent that
service of process on the applicant may be made by delivery of the process to
the secretary of state if, in an action against the applicant in a court of
this state arising out of the applicant's activities as a nonresident temporary state licensed or state
certified appraiser, the plaintiff cannot effect, in the exercise of due
diligence, personal service on the applicant.
B. A nonresident of
this state who has complied with subsection A may obtain a nonresident temporary license or certificate
as a nonresident temporary state
licensed or state certified appraiser by conforming to all of the requirements
of this chapter relating to state licensed or state certified appraisers.
C. A nonresident of this state who is licensed or
certified in another state is entitled to a nonresident temporary
license licensure or certification from the board,
which shall be valid until the completion of each appraisal assignment but not
for a period of more than one year from the date of issuance, if:
1. The properties to be appraised are federally
related.
2. The nonresident appraiser's business in this
state is of a temporary nature.
3. The nonresident appraiser applies with the board
on forms prepared by the board.
4. The nonresident appraiser pays the nonresident temporary license licensure or certification fee required by the
board. END_STATUTE
Sec. 12. Section 32-3618, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3618. Nonresident licensure or certification
by reciprocity
If, in the determination of the board, another state is deemed
to have substantially equivalent licensing and or certification
requirements and the board has entered
into a reciprocity agreement with that state, an applicant who is
licensed or certified under the laws of the other state may obtain a license or
certificate as a state licensed or state certified appraiser in this state on
such terms and conditions as may be determined by the board. END_STATUTE
Sec. 13. Section 32-3619, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3619. Renewal of license or certificate;
fees; military duty exception
A. Except as
otherwise provided in this section, to renew a license or
certificate as a state licensed or state certified appraiser, the holder of a
current, valid license or certificate shall make an application and pay the
prescribed fee to the board not earlier than one hundred twenty ninety days nor later than thirty days before
the expiration date of the license or certificate then held. With
the application for renewal, the state licensed or state certified appraiser
shall present evidence in the form prescribed by the board of having completed
the continuing education requirements for renewal specified in section 32‑3625. The
renewal application shall be mailed to the last known address of record not
more than ninety days nor less than sixty days before the renewal date.
B. If the board
determines that an applicant has failed to meet the requirements for renewal of
a license or certificate through mistake, misunderstanding or circumstances
beyond the control of the applicant, the board may extend the term of the
license or certificate for a period of not more than six months, on payment by
the applicant of a prescribed fee for the extension.
C. At the time
of the first renewal, the licensee shall have fully completed the requirements
of section 32‑3613, subsection C and section 32‑3625, subsection A.
D. If the
applicant satisfies the requirements for renewal during the extended term of
licensure or certification, the beginning date of the renewal license or
certificate is the day after the expiration of the license or certificate previously
held by the applicant.
E. If a person
fails to renew a license or certificate as a state licensed or state certified
appraiser before its expiration or within a period of extension granted by the
board pursuant to this chapter, the person may obtain a renewal license or
certificate by satisfying all of the requirements for renewal and by the
payment of a late renewal fee.
B. The board
may accept a renewal application after the expiration date and within ninety
days of the date of expiration but shall assess a delinquent renewal fee in
addition to the renewal fee.
C. A person
deployed outside of the United States on active military duty with the United
States armed forces and whose license or certificate has expired during such
active military duty outside of the United States may file a renewal
application within one hundred eighty days of returning home from active
military duty and shall not be required to pay a delinquent renewal fee.
Evidence of the renewal applicant's dates and locations of deployment must be
submitted with a renewal application filed under this subsection. In addition,
the renewal applicant must provide evidence of completion of the continuing
education requirements that the renewal applicant would have otherwise been
required to meet during the period preceding the renewal application.
D. An
appraiser who fails to seek renewal within the time period specified in
subsection A, B or C of this section must reapply for licensure or
certification and meet all of the requirements of this chapter.
E. An
appraiser shall not engage in, advertise or purport to engage in real estate
APPRAISAL activity in this state after a license or certificate has expired and
before the renewal of the expired license or certificate.
F. Notwithstanding
section 41-1092.11, a license or certificate expires on its expiration date.END_STATUTE
Sec. 14. Section 32-3621, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3621. Principal place of business
A. Each state licensed or state certified appraiser
shall advise the board of the address of his
the appraiser's principal
place of business and all other addresses at which he the
appraiser is currently engaged in the business of preparing real
property appraisal reports.
B. If a state
licensed or state certified appraiser changes a place of business, he shall
give written notification within ten days of the change to the board and shall
apply for an amended license or certificate.
C. B. Every
state licensed or state certified appraiser shall notify the board of his the appraiser's current residence
address. Residence addresses on file with the board are exempt from
disclosure as public records.
C. Every
state licensed or state certified appraiser shall provide a daytime telephone
number to the board.
D. If a
state licensed or state certified appraiser changes a place of business or
residence or the appraiser's daytime telephone number, the appraiser shall give
written notification of the change within ten days after the change to the
board. END_STATUTE
Sec. 15. Section 32-3622, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3622. Licenses and certificates
A. A license or certificate issued under this
chapter shall bear the signatures or
facsimile signatures of the members be signed on behalf of the board and shall bear the license or
certificate number assigned by the board.
B. Each state licensed or state certified appraiser
shall place his the appraiser's license or
certificate number adjacent to or immediately below the title "state
licensed appraiser" or "state certified appraiser" and the
number shall be included in an appraisal report or in a contract or other
instrument used by the license or certificate holder in conducting appraisal
activities. END_STATUTE
Sec. 16. Section 32-3625, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3625. Continuing education
A. As a prerequisite to renewal of a license or
certificate, a state licensed or state certified appraiser shall present evidence
satisfactory to the board of having met the continuing education requirements
of either subsection B or C.
B. The basic continuing education requirement for
renewal of a license or certificate is the completion by the applicant, during
the immediately preceding term of the license or certificate, of courses or
seminars which are approved by the board.
C. An applicant for relicensing or recertification
may satisfy all or part of the continuing education requirements by presenting
evidence of the following which shall be approved by the board:
1. Completion of an education program of study
determined by the board to be equivalent, for continuing education purposes, to
courses approved by the board pursuant to subsection B.
2. Participation other than as a student in
educational processes and programs which are approved by the board and which
relate to appropriate appraisal theory, practices or techniques, including
teaching, program development and preparation of textbooks, monographs,
articles and other instructional materials, not to exceed fifty per cent of an applicant's continuing
education requirements and not for the same course in consecutive renewal
periods.
D. The board shall adopt rules to assure that
persons renewing their licenses or certificates as state licensed or state
certified appraisers follow practices and techniques which provide a high
degree of service and protection to those members of the public with whom they
deal in the professional relationship under the authority of the license or
certificate. The rules shall include the following:
1. Policies and procedures for obtaining board
approval of courses and instruction pursuant to subsection B.
2. Standards, policies and procedures to be applied
by the board in evaluating an applicant's claims of equivalency in accordance
with subsection C.
3. Standards, monitoring methods and systems for
recording attendance to be employed by course sponsors as a prerequisite to
board approval of courses for credit.
E. In adopting rules pursuant to subsection D,
paragraph 1, the board shall give consideration to courses of instruction,
seminars and other appropriate appraisal educational courses or programs
previously or hereafter developed by or under the auspices of professional
appraisal organizations and utilized by those associations for purposes of
designation, or indicating compliance with the continuing education
requirements of such organizations. No person who offers these courses may
discriminate in the opportunity to participate in these courses on the basis of
membership or nonmembership in an appraisal organization.
F. No amendment or repeal of a rule adopted by the
board pursuant to this section may operate to deprive a state licensed or state
certified appraiser of credit toward renewal of a license or certificate for
any course of instruction either completed by the applicant or enrolled in by
the applicant before the amendment or repeal of the rule which would have
qualified for continuing education credit under the rule as it existed before
the repeal or amendment.
G. A license or certificate as a state licensed or
state certified appraiser that has been revoked as a result of disciplinary
action by the board shall not be reinstated unless the applicant presents
evidence of completion of the continuing education required by this
chapter. This requirement of evidence of continuing education shall
not be imposed on an applicant for reinstatement who has been required to
successfully complete the examination for state licensed or state certified
appraiser as a condition of reinstatement of a license or certificate. END_STATUTE
Sec. 17. Section
32-3626, Arizona Revised Statutes, is amended to read:
START_STATUTE32-3626. Scarcity determination; resident
temporary licenses and certificates; exemption
A. No later than November 1 of each year, the board
shall determine and make a finding whether there is a scarcity of state
certified or state licensed appraisers in an area within the state to perform
appraisals in federally related transactions.
B. In determining whether a scarcity exists, the
board shall follow procedures in accordance with the provisions governing
scarcity in 12 United States Code section 3348 and regulations adopted pursuant
to that section as of September 30, 1992.
C. If the board makes a finding of scarcity, within
fifteen days after the finding, the board shall apply to the appropriate
federal agency for a temporary waiver of the state certification or licensing
requirements.
D. If a waiver request has been approved by the
federal agency authorized to issue waivers, the board may thereafter issue
resident temporary licenses or certificates to applicants consistent with the reduction
in application requirements of this chapter for licenses and certificates as
authorized by the waiver. A resident temporary license or certificate shall be
subject to all provisions of this chapter not inconsistent with the provisions
of the waiver.
E. A person obtaining a resident temporary license
or certificate under this section is required to comply with all of the
provisions of this chapter except for those provisions of this chapter for
which a temporary waiver has been approved and shall indicate on all appraisals
performed by the person that the appraisal is not an appraisal done by a state
certified or state licensed appraiser and the person performing the appraisal
is a resident temporary licensee
license or certificate
holder. A person holding a resident temporary license or certificate may
perform appraisals only in areas within the state where it has been determined
by the board that a scarcity exists.
F. The board is exempt from title 41, chapter 6,
article 10 in making the determination and finding and in issuing resident
temporary licenses and certificates in accordance with the waiver in subsection
D of this section and section 32‑3605, subsection B, paragraph 14.END_STATUTE
Sec. 18. Title 32, chapter 36, article 2,
Arizona Revised Statutes, is amended by adding sections 32-3627 and 32-3628, to
read:
START_STATUTE32-3627. Inactive license or certificate
status; reactivation application; renewal application and fee; continuing
education
A. Any
license or certificate holder may request that the license or certificate be
placed on inactive status by filing with the board an application that includes
all of the following:
1. The
license or certificate holder's name.
2. The
license or certificate number.
3. A request
for inactive status.
B. The
period a license or certificate is on inactive status under this section may
not exceed two years.
C. A license
or certificate holder who is on inactive status shall not do either of the
following:
1. Represent
that the license or certificate holder is an active appraiser licensed or
certified in this state.
2. Perform
real estate appraisals or appraisal reviews on real estate in this state.
D. A license
or certificate holder on inactive status under this section must file with the
board an application for reactivation of the license or certificate before
resuming real estate appraisal activity.
e. To return
to active status, an inactive license or certificate holder shall do both of
the following:
1. File with
the board an application for reactivation of the license or certificate.
2. Provide
evidence of completion of the required continuing education that the license or
certificate holder would have been required to meet during the period when the
license or certificate holder's license or certificate was on inactive status.
F. If the
holder of an inactive license or certificate under this section does not file
an application for reactivation within a two year period, that person must
reapply for licensure or certification pursuant to the requirements of this
chapter.
G. A license
or certificate holder who is on inactive status pursuant to this section
remains on inactive status until the board approves the application for
reactivation of the license or certificate.
H. The board
may take disciplinary or remedial action against a license or certificate
holder who is on inactive status pursuant to this section.
I. A license
or certificate holder who places the holder's license or certificate on inactive status must pay the renewal fee and complete an application for renewal as prescribed in section 32-3619. a license or certificate holder on inactive
status is not required to provide evidence of completion of the continuing
education requirements until the application for reactivation is filed pursuant
to suBSECTION E of this section.END_STATUTE
START_STATUTE32-3628. Inactive license or certificate status
during military duty; reactivation application; renewal application and fee;
continuing education
A. A license
or certificate holder who is ordered to active military duty with the United
States armed forces may request that the license or certificate be placed on
inactive status by filing with the board an application that includes all of
the following:
1. The
license or certificate holder's name.
2. The
license or certificate number.
3. The date
that the active military duty begins.
4. A request
for inactive status.
b. The
license or certificate is deemed to be on inactive status while the license or
certificate holder is on active military duty but the period of inactive status
may not exceed three years.
C. A license
or certificate holder who is on inactive status pursuant to this section shall
not do either of the following:
1. Represent
that the holder is an active appraiser licensed or certified in this state.
2. Perform
real estate appraisals or appraisal reviews on real estate in this state.
D. A license
or certificate holder on inactive status must file with the board an
application for reactivation of the license or certificate within thirty days
after returning home from active military duty.
E. If the
holder of an inactive license or certificate timely files an application for
reactivation of the license or certificate, the license or certificate is
returned to active status on the board's approval of the application for
reactivation. The time period for completion of the continuing education
requirements that the license or certificate holder would otherwise have been
required to meet during the period when the license or certificate was on
inactive status is extended for a period not to exceed one hundred eighty days
after return from active military duty. The license or certificate holder must
submit proof of completion of any continuing education requirements to the
board no later than thirty days after completion.
F. If the
holder of an inactive license or certificate under this section does not make a
timely application for reactivation as required by subsection D of this
section, the holder must reapply for licensure or certification meeting all of
the requirements of this chapter.
G. A license
or certificate holder who is on inactive status pursuant to this section
remains on inactive status until the board approves the application for
reactivation of the license or certificate.
H. The
holder of an inactive license or certificate applying for reactivation of the
license or certificate under this section shall include with the application
for reactivation a copy of the documentation from the armed forces showing the
period of time that the holder of the inactive license or certificate was on
active military duty.
I. Any
license or certificate holder who places the holder's license or certificate on inactive status under this section must pay the renewal fee prescribed in
section 32-3607 and complete an application for renewal pursuant to section
32-3619. a license or certificate holder on inactive status pursuant to this
section who files an application for reactivation is required to provide
evidence of completion of the continuing education requirements pursuant to
subsection E of this section.
J. For the
purposes of this SECTION, active military duty does not include service persons
performing weekend drill and annual training.END_STATUTE
Sec. 19. Section
32-3631, Arizona Revised Statutes, is amended to read:
START_STATUTE32-3631. Disciplinary proceedings
A. The rights of an
applicant or holder under a license or certificate as a state licensed or state
certified appraiser may be revoked or suspended or the holder of the license or
certificate may otherwise be disciplined in accordance with this chapter on any
of the grounds set forth in this section. The board may investigate
the actions of a state licensed or state certified appraiser and may revoke or
suspend the rights of a license or certificate holder or otherwise discipline a
state licensed or state certified appraiser for any of the following acts or
omissions:
1. Procuring or attempting to procure a license or
certificate pursuant to this chapter by knowingly making a false statement,
submitting false information, refusing to provide complete information in
response to a question in an application for a license or certificate or
committing any form of fraud or misrepresentation.
2. Failing to meet the minimum qualifications
established by this chapter.
3. Paying or offering to pay money or other
considerations other than as provided by this chapter to any member or employee
of the board to procure a license or certificate under this chapter.
4. A conviction, including a conviction based on a
plea of guilty, of a crime which is substantially related to the
qualifications, functions and duties of a person developing appraisals and
communicating appraisals to others, or convicted
of a conviction for
any felony or any crime involving
moral turpitude.
5. An act or omission involving dishonesty, fraud or
misrepresentation with the intent to substantially benefit the license or
certificate holder or another person or with the intent to substantially injure
another person.
6. Violation of any of the standards of the
development or communication of appraisals as provided in this chapter.
7. Negligence or incompetence in developing an
appraisal, in preparing an appraisal report or in communicating an appraisal.
8. Willfully
Wilfully disregarding or
violating any of the provisions of this chapter or the rules of the board for
the administration and enforcement of this chapter.
9. Accepting an appraisal assignment if the
employment itself is contingent on the appraiser reporting a predetermined
estimate, analysis or opinion or if the fee to be paid is contingent on the
opinion, conclusion or valuation
value reached or on the
consequences resulting from the appraisal assignment.
10. Violating the confidential nature of any records
to which he the appraiser gains access through employment
or engagement as an appraiser.
11. Entry of a final civil judgment against the
person on grounds of fraud, misrepresentation or deceit in the making of any
appraisal.
B. In a disciplinary proceeding based on a civil
judgment, the state licensed or state certified appraiser shall be afforded an
opportunity to present matters in mitigation and extenuation.
C. The board may issue subpoenas for the attendance
of witnesses and the production of books, records, documents and other evidence
necessary and relevant to an investigation or hearing. END_STATUTE
Sec. 20. Section 32-3636, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3636. Contingent fees
A. A
state licensed or state certified appraiser may not accept a fee for an
appraisal assignment that is contingent on the appraiser reporting a
predetermined estimate, analysis or opinion or that is contingent on the
opinion, conclusion or valuation
value reached or on the
consequences resulting from the appraisal assignment.
B. A state
licensed or state certified appraiser who enters into an agreement to perform
specialized services may be paid a fixed fee or a fee that is contingent on the
results achieved by the specialized services.
C. If a state
licensed or state certified appraiser enters into an agreement to perform
specialized services for a contingent fee, this provision shall be clearly
stated in each written or oral report. In each written report, this
provision shall be clearly stated in a prominent location in the report, in
each letter of transmittal and in the certification statement made by the
appraiser in the report. END_STATUTE
Sec. 21. Section 32-3654, Arizona Revised
Statutes, is amended to read:
START_STATUTE32-3654. Disciplinary actions
A. On the complaint of any person or on its own
motion, the board shall investigate any suspected violation of this article by
a property tax agent. If the board finds a violation it may issue a letter of
concern.
B. If the board finds that the property tax agent
committed any of the following violations, it shall revoke or suspend the
agent's registration:
1. Secured registration by fraud or deceit.
2. Committed an act or is responsible for an
omission involving fraud or knowing misrepresentation with the intent to obtain
a benefit.
3. Knowingly violated section 32‑3653.
C. The board shall:
1. Suspend the agent's registration for not less
than six months on the first finding of a violation pursuant to subsection B of
this section.
2. Suspend the agent's registration for not less
than twelve months on the second finding of a violation pursuant to subsection
B of this section.
3. Revoke the agent's registration on a third or
subsequent finding of a violation pursuant to subsection B of this section.
D. The board shall not impose discipline until the
agent has been provided an opportunity for a hearing before the board pursuant
to title 41, chapter 6, article 10. The board shall notify the agent of the
charges and the date and time of the hearing. The notice may be personally
served or sent by certified mail to the agent's last known address. The board may assess the costs of the
investigation and hearing against a person who is found guilty of violating
this article. Except as provided in section 41‑1092.08,
subsection H, the final decision of the board is subject to judicial review
pursuant to title 12, chapter 7, article 6.
E. The board shall not renew an agent's registration
during the time the registration is suspended or revoked. If the agent is not registered or the agent's registration
expires, the board shall not issue a new registration to the agent during the
time the registration is suspended or revoked. END_STATUTE
Sec. 22. Title
32, chapter 36, article 4, Arizona Revised Statutes, is amended by adding
section 32-3656, to read:
START_STATUTE32-3656. Confidential records
Except as otherwise provided by law, all documents
associated with a complaint pursuant to this article are confidential until the
complaint is resolved. END_STATUTE
Sec. 23. Section
43-1089.02, Arizona Revised Statutes, is amended to read:
START_STATUTE43‑1089.02. Credit for donation of school site
A. A credit is
allowed against the taxes imposed by this title in the amount of thirty per
cent of the value of real property and improvements donated by the taxpayer to
a school district or a charter school for use as a school or as a site for the
construction of a school.
B. To qualify for the credit:
1. The real property and improvements must be
located in this state.
2. The real property and improvements must be
conveyed unencumbered and in fee simple, except that:
(a) The conveyance must include as a deed
restriction and protective covenant running with title to the land the
requirement that as long as the donee holds title to the property the property
shall only be used as a school or as a site for the construction of a school,
subject to the provisions of
subsection I or J of this section.
(b) In the case of a donation to a charter school,
the donor shall record a lien on the property as provided by subsection J,
paragraph 3 of this section.
3. The conveyance shall not violate the provisions of section 15‑341,
subsection D and section 15‑183, subsection V.
C. For purposes of this section, the value of the
donated property is the property's fair market value as determined in a certified an appraisal as defined in section 32‑3601
that is conducted by an independent party and that is paid for by the donee.
D. If the property is donated by co-owners,
including partners in a partnership and shareholders of an S corporation, as
defined in section 1361 of the internal revenue code, each donor may claim only
the pro rata share of the allowable credit under this section based on the
ownership interest. If the property is donated by a husband and wife
who file separate returns for a taxable year in which they could have filed a
joint return, they may determine between them the share of the credit each will
claim. The total of the credits allowed all co-owner donors may not exceed the
allowable credit.
E. If the allowable tax credit exceeds the taxes
otherwise due under this title on the claimant's income, or if there are no
taxes due under this title, the taxpayer may carry the amount of the claim not
used to offset the taxes under this title forward for not more than five
consecutive taxable years' income tax liability.
F. The credit under this section is in lieu of any
deduction pursuant to section 170 of the internal revenue code taken for state
tax purposes.
G. On written request by the donee, the donor shall
disclose in writing to the donee the amount of the credit allowed pursuant to
this section with respect to the property received by the donee.
H. A school district or charter school may refuse
the donation of any property for purposes of this section.
I. If the donee is a school district:
1. The district shall notify the school facilities
board established by section 15‑2001 and furnish the board with any
information the board requests regarding the donation. A school district shall
not accept a donation pursuant to this section unless the school facilities
board has reviewed the proposed donation and has issued a written determination
that the real property and improvements are suitable as a school site or as a
school. The school facilities board shall issue a determination that the real
property and improvements are not suitable as a school site or as a school if
the expenses that would be necessary to make the property suitable as a school
site or as a school exceed the value of the proposed donation.
2. The district may sell any donated property pursuant
to section 15‑342, but the proceeds from the sale shall only be used for
capital projects. The school facilities board shall withhold an amount that
corresponds to the amount of the proceeds from any monies that would otherwise
be due the school district from the school facilities board pursuant to section
15-2041.
J. If the donee is a charter school:
1. The charter school shall:
(a) Immediately notify the sponsor of the charter
school by certified mail and shall furnish the sponsor with any information
requested by the sponsor regarding the donation during the ten year period
after the conveyance is recorded.
(b) Notify the sponsor by certified mail, and the
sponsor shall notify the state treasurer, in the event of the charter school’s
financial failure or if the charter school:
(i) Fails to establish a charter school on the
property within forty‑eight months after the conveyance is recorded.
(ii) Fails to provide instruction to pupils on the
property within forty-eight months after the conveyance is recorded.
(iii) Establishes a charter school on the property
but subsequently ceases to operate the charter school on the property for
twenty‑four consecutive months or fails to provide instruction to pupils
on the property for twenty-four consecutive months.
2. The charter school, or a successor in interest,
shall pay to the state treasurer the amount of the credit allowed under this
section, or if that amount is unknown, the amount of the allowable credit under
this section, if any of the circumstances listed in paragraph 1, subdivision
(b) of this section subsection occur. If the
amount is not paid within one year after the treasurer receives notice under
paragraph 1, subdivision (b) of this subsection, a penalty and interest shall
be added, determined pursuant to title 42, chapter 1, article 3.
3. A tax credit under this section constitutes a
lien on the property, which the donor must record along with the title to the
property to qualify for the credit. The amount of the lien is the amount of
the allowable credit under this section, adjusted according to the average
change in the GDP price deflator, as defined in section 41-563, for each
calendar year since the donation, but not exceeding twelve and one-half per
cent more than the allowable credit. The lien is subordinate to any liens
securing the financing of the school construction. The lien is extinguished on
the earliest of the following:
(a) Ten years after the lien is recorded. After
that date, the charter school, or a successor in interest, may request the
state treasurer to release the lien.
(b) On payment to the state treasurer by the donee
charter school, or by a successor in interest, of the amount of the allowable
credit under this section, either voluntarily or as required by paragraph 2 of
this subsection. After the required amount is paid, the charter school or
successor in interest may request the state treasurer to release the lien.
(c) On conveyance of fee simple title to the
property to a school district.
(d) On enforcement and satisfaction of the lien
pursuant to paragraph 4 of this subsection.
4. The state treasurer shall enforce the lien by
foreclosure within one year after receiving notice of any of the circumstances
described in paragraph 1, subdivision (b) of this subsection.
5. Subject to paragraphs 3 and 4 of this subsection,
the charter school may sell any donated property.END_STATUTE
Sec. 24. Section 43-1181, Arizona Revised
Statutes, is amended to read:
START_STATUTE43-1181. Credit of donation of school site
A. A credit is allowed against the taxes imposed by
this title in the amount of thirty per cent of the value of real property and
improvements donated by the taxpayer to a school district or a charter school
for use as a school or as a site for the construction of a school.
B. To qualify for the credit:
1. The real property and improvements must be
located in this state.
2. The real property and improvements must be
conveyed unencumbered and in fee simple except that:
(a) The conveyance must include as a deed
restriction and protective covenant running with title to the land the
requirement that as long as the donee holds title to the property the property
shall only be used as a school or as a site for the construction of a school,
subject to subsection I or J of this section.
(b) In the case of a donation to a charter school,
the donor shall record a lien on the property as provided by subsection J,
paragraph 3 of this section.
3. The conveyance shall not violate section 15‑341,
subsection D or section 15‑183, subsection U.
C. For the purposes of this section, the value of
the donated property is the property's fair market value as determined in a certified an appraisal as defined in section 32‑3601
that is conducted by an independent party and that is paid for by the donee.
D. If the property is donated by co‑owners,
including corporate partners in a partnership, each donor may claim only the
pro rata share of the allowable credit under this section based on the
ownership interest. The total of the credits allowed all co-owner donors may
not exceed the allowable credit.
E. If the allowable tax credit exceeds the taxes
otherwise due under this title on the claimant's income, or if there are no
taxes due under this title, the taxpayer may carry the amount of the claim not
used to offset the taxes under this title forward for not more than five
consecutive taxable years' income tax liability.
F. The credit under this section is in lieu of any
deduction pursuant to section 170 of the internal revenue code taken for state
tax purposes.
G. On written request by the donee, the donor shall
disclose in writing to the donee the amount of the credit allowed pursuant to
this section with respect to the property received by the donee.
H. A school district or charter school may refuse
the donation of any property for purposes of this section.
I. If the donee is a school district:
1. The district shall notify the school facilities
board established by section 15‑2001 and furnish the board with any
information the board requests regarding the donation. A school district shall
not accept a donation pursuant to this section unless the school facilities
board has reviewed the proposed donation and has issued a written determination
that the real property and improvements are suitable as a school site or as a
school. The school facilities board shall issue a determination that the real
property and improvements are not suitable as a school site or as a school if
the expenses that would be necessary to make the property suitable as a school
site or as a school exceed the value of the proposed donation.
2. The district may sell any donated property
pursuant to section 15‑342, but the proceeds from the sale shall only be
used for capital projects. The school facilities board shall withhold an
amount that corresponds to the amount of the proceeds from any monies that
would otherwise be due the school district from the school facilities board
pursuant to section 15‑2041.
J. If the donee is a charter school:
1. The charter school shall:
(a) Immediately notify the sponsor of the charter
school by certified mail and shall furnish the sponsor with any information
requested by the sponsor regarding the donation during the ten year period
after the conveyance is recorded.
(b) Notify the sponsor by certified mail, and the
sponsor shall notify the state treasurer, in the event of the charter school’s
financial failure or if the charter school:
(i) Fails to establish a charter school on the
property within forty‑eight months after the conveyance is recorded.
(ii) Fails to provide instruction to pupils on the
property within forty-eight months after the conveyance is recorded.
(iii) Establishes a charter school on the property
but subsequently ceases to operate the charter school on the property for
twenty-four consecutive months or fails to provide instruction to pupils on the
property for twenty-four consecutive months.
2. The charter school, or a successor in interest,
shall pay to the state treasurer the amount of the credit allowed under this
section, or if that amount is unknown, the amount of the allowable credit under
this section, if any of the circumstances listed in paragraph 1, subdivision
(b) of this subsection occur. If the amount is not paid within one year after
the treasurer receives notice under paragraph 1, subdivision (b) of this
subsection, a penalty and interest shall be added, determined pursuant to title
42, chapter 1, article 3.
3. A tax credit under this section constitutes a
lien on the property, which the donor must record along with the title to the
property to qualify for the credit. The amount of the lien is the amount of
the allowable credit under this section, adjusted according to the average
change in the GDP price deflator, as defined in section 41‑563, for each
calendar year since the donation, but not exceeding twelve and one-half per
cent more than the allowable credit. The lien is subordinate to any liens
securing the financing of the school construction. The lien is extinguished on
the earliest of the following:
(a) Ten years after the lien is recorded. After
that date, the charter school, or a successor in interest, may request the
state treasurer to release the lien.
(b) On payment to the state treasurer by the donee
charter school, or by a successor in interest, of the amount of the allowable
credit under this section, either voluntarily or as required by paragraph 2 of
this subsection. After the required amount is paid, the charter school or
successor in interest may request the state treasurer to release the lien.
(c) On conveyance of fee simple title to the
property to a school district.
(d) On enforcement and satisfaction of the lien
pursuant to paragraph 4 of this subsection.
4. The state treasurer shall enforce the lien by
foreclosure within one year after receiving notice of any of the circumstances
described in paragraph 1, subdivision (b) of this subsection.
5. Subject to paragraphs 3 and 4 of this subsection,
the charter school may sell any donated property. END_STATUTE
Sec. 25. Emergency
This act is an emergency measure that is necessary to preserve
the public peace, health or safety and is operative immediately as provided by
law.
