MISSISSIPPI LEGISLATURE
2019 Regular Session
To: Judiciary A
By: Representative Holland
AN ACT TO AMEND SECTION 73-34-9, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT THE COMMISSION MAIL REAL ESTATE APPRAISAL LICENSES TO LICENSEES AT EITHER HIS OR HER DESIGNATED PLACE OF BUSINESS OR ANOTHER LOCATION THAT IS DESIGNATED BY THE LICENSEE; TO AMEND SECTION 73-34-27, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A LICENSE, UPON RENEWAL, SHALL BE MAILED TO A LICENSEE AT EITHER HIS OR HER PLACE OF BUSINESS OR ANOTHER LOCATION DESIGNATED BY THE LICENSEE; TO AMEND SECTION 73-34-47, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT A REAL ESTATE APPRAISAL LICENSE BE MAILED TO A LICENSEE AT EITHER HIS OR HER PLACE OF BUSINESS OR ANOTHER LOCATION DESIGNATED BY THE LICENSEE AFTER PASSING EXAMINATION; TO AMEND SECTION 73-34-51, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT ONCE A LICENSE HAS BEEN ISSUED TO A MILITARY-TRAINED APPLICANT OR A MILITARY SPOUSE THAT IT BE MAILED TO EITHER HIS OR HER DESIGNATED PLACE OF BUSINESS OR ANOTHER LOCATION THAT IS DESIGNATED BY THE APPLICANT OR THE SPOUSE; TO AMEND SECTION 73-35-13, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT A REAL ESTATE BROKER'S LICENSE BE MAILED TO A LICENSEE AT EITHER HIS OR HER PLACE OF BUSINESS OR ANOTHER LOCATION DESIGNATED BY THE LICENSEE AFTER PASSING EXAMINATION; TO AMEND SECTION 73-35-15, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT A REAL ESTATE LICENSE BE MAILED TO A LICENSEE AT EITHER HIS OR HER NEW PLACE OF BUSINESS OR ANOTHER LOCATION DESIGNATED BY THE LICENSEE UPON REMOVAL FROM THE LICENSEE'S FORMER PLACE OF BUSINESS; TO AMEND SECTION 73-35-14.5, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT A TEMPORARY REAL ESTATE LICENSE BE MAILED TO AN APPLICANT AT EITHER HIS OR HER PLACE OF BUSINESS OR ANOTHER LOCATION DESIGNATED BY THE APPLICANT AFTER PASSING EXAMINATION; TO BRING FORWARD SECTION 73-34-103, MISSISSIPPI CODE OF 1972, WHICH RELATES TO THE REQUIRED REGISTRATION FOR AN INDIVIDUAL OR CORPORATION TO CONDUCT BUSINESS AS AN APPRAISAL MANAGEMENT COMPANY; TO BRING FORWARD SECTION 73-34-131, MISSISSIPPI CODE OF 1972, WHICH RELATES TO THE ADJUDICATORY PROCEEDINGS FOR A VIOLATION OF THE STANDARDS OF APPRAISAL PRACTICE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 73-34-9, Mississippi Code of 1972, is amended as follows:
73-34-9. (1) The commission shall have the following powers and duties:
(a) To receive applications for licensure as a real estate appraiser and applications for registration as an appraisal management company under this chapter; to establish appropriate administrative procedures for the processing of those applications; to issue licenses to qualified applicants under the provisions of this chapter; to mail licenses to licensees at either his or her designated place of business or another location that is designated by the licensee; and to maintain a registry of the names and addresses of individuals who are currently licensed under this chapter.
(b) To administer licensing examinations in the places and at the times as may be required to carry out its responsibilities under this chapter.
(c) To implement recommendations made to the commission by the Real Estate Appraiser Licensing and Certification Board with respect to upgrading and improving the experience, education and examination requirements that are required for an appraiser license and each classification of licensed state certified real estate appraiser in this state.
(d) To implement recommendations made to the commission by the board with respect to upgrading and improving the continuing education requirements that are required for renewal of a license.
(e) To collect all licensing fees required or permitted by this chapter.
(f) To take appropriate action upon a decision and the related findings of fact made by the board if, after an administrative hearing, the board (i) determines that a licensed appraiser or a licensed state certified real estate appraiser under this chapter has violated the standards of appraisal practice or ethical rules established under Section 73-34-37, or has committed one or more of the acts that are prohibited by Section 73-34-35, and (ii) recommends that the license of the appraiser be suspended or revoked, that renewal be denied, or that some other disciplinary action be taken.
(g) To solicit bids and enter into contracts with one or more educational testing services or organizations approved by the board for the preparation of a bank of questions and answers for licensure examinations under this chapter.
(h) To promote research and conduct studies relating to the profession of real estate appraising and sponsor real estate appraisal educational activities.
(i) To adopt rules and regulations for the administration of this chapter that are not inconsistent with the provisions of this chapter or the Constitution and laws of Mississippi or of the United States.
(j) To employ an assistant to the Mississippi Real Estate Commission Administrator who shall keep a record of all proceedings, transactions, communications and official acts of the commission and board and perform any other duties as the commission and board may require.
(k) To employ an appropriate staff to investigate allegations that licensed appraisers or licensed state certified real estate appraisers under this chapter failed to comply with the terms or provisions of this chapter.
(l) To employ any other professional, clerical and technical assistance as may be necessary to properly administer the work of this chapter.
(2) The board shall have the following powers and duties:
(a) To be responsible for matters relating to real estate appraisal standards, real estate appraiser qualifications, testing standards, appraisal management companies and disciplinary functions.
(b) To hold meetings; to hold public hearings and administrative hearings; and to prepare examination specifications for licensed appraisers and licensed state certified appraisers.
(c) To enable the board to carry out its responsibilities under this chapter with respect to licensing and registering, the board shall have:
(i) The power to compel the attendance of witnesses;
(ii) The power to require a licensed appraiser or an applicant for licensure to produce books, appraisal documents, records and other papers;
(iii) The power to administer oaths; and
(iv) The power to take testimony and receive evidence concerning all matters within its jurisdiction.
These powers may be exercised directly by the board in such manner as the board shall determine.
(d) To establish appropriate administrative procedures for disciplinary proceedings conducted under the provisions of this chapter.
(e) To keep a record of its proceedings and issue an annual report of its activities.
(f) To further define by regulation, and with respect to each of the categories of licensed appraiser, the type of educational experience, appraisal experience and equivalent experience that will meet the statutory requirements of this chapter.
(g) To approve or disapprove applications for licensing or registration under this chapter.
(h) To suspend or revoke licenses or registrations under the disciplinary proceedings provided for in this chapter.
(i) To present an annual budget to the Mississippi Legislature for approval. A copy of the budget shall be given to the commission.
(j) To implement all requirements directed by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council or their designated agent.
(k) To make rules and regulations providing for an inactive license or registration status and for the reactivation thereof.
(l) To make rules and regulations necessary to implement its powers and duties under this chapter.
(m) To do all other things necessary to carry out the provisions of this chapter.
(n) To adopt rules consistent with the provisions of this chapter which may be reasonably necessary to implement, administer, and enforce the provisions of this chapter.
(o) To provide for at least one (1) member of the board to represent the appraisal management company industry.
(p) To establish the standard for measuring residential properties up to four (4) family buildings as promulgated by the American National Standards Institute or as provided in the American Measurement Standard Manual. The board shall require appraisals required to use those standards to indicate on the appraisal or separately appended document which standard was used.
(q) To conduct surveys as necessary.
(3) The members of the commission and board shall be immune from any civil action or criminal prosecution for initiating or assisting in any lawful investigation of the actions of, or participating in any disciplinary proceeding concerning, an appraiser licensed under this chapter, provided that the action is taken without malicious intent and in the reasonable belief that the action was taken in accordance with the powers and duties vested in the members of the commission and board under this chapter.
SECTION 2. Section 73-34-27, Mississippi Code of 1972, is amended as follows:
73-34-27. (1) To obtain a renewal of any of the real estate appraisal licenses or a renewal of any registration issued under this chapter, the holder of a current, valid license or registration shall make application and pay the prescribed fee to the commission not earlier than one hundred twenty (120) days nor later than the expiration date, as defined in Section 73-34-25, of the license then held. Each application for renewal shall be accompanied by evidence, in the form prescribed by the board, of having completed the continuing education requirements for renewal specified in this chapter.
(2) If a licensed appraiser or licensed certified real estate appraiser under this chapter fails to renew his or her license, or an appraisal management company fails to renew its registration before its expiration or within any period of extension granted under this chapter, that person or company may obtain a renewal of their license or registration by satisfying all of the requirements for renewal and filing an application for renewal, accompanied by a late renewal fee, within sixty (60) days of the date that the license or registration expired.
(3) After a license has been renewed, it shall be mailed to the licensee at either his or her designated place of business or another location that is designated by the licensee.
(4) From and after January 1, 2015, all applicants for a real estate appraisal license renewal shall undergo a fingerprint-based criminal history records check of the Mississippi central criminal database and the Federal Bureau of Investigation criminal history database pursuant to the provisions of Section 73-34-14.
SECTION 3. Section 73-34-47, Mississippi Code of 1972, is amended as follows:
73-34-47. The commission at the direction of the board shall issue to each licensed appraiser or licensed certified real estate appraiser under this chapter a license evidencing such licensure. The commission shall at the direction of the board also issue a pocket card in such size and form as the board approves.
A license issued under this chapter shall bear a license number assigned by the commission. When signing an appraisal report or certified appraisal report, the licensee shall place such appraiser's license number adjacent to or immediately below the title of "licensed appraiser" or "licensed certified residential real estate appraiser" or "licensed certified general real estate appraiser" or "licensed timberland appraiser." Such license number shall also be used in all statements of qualification, contracts or other instruments used by the license holder when reference is made to such license holder's status as a licensed appraiser or licensed certified real estate appraiser.
The license must bear the
current physical address of the licensee's place of business, which shall be a
room either in his or her home or an office elsewhere, to be used for
the transaction of the appraisal business. The license shall be mailed to
the licensee at either his or her place of business or another location that is
designated by the licensee. In case of removal from the designated
address, the licensee shall make application to the commission before removal,
or within ten (10) days after removal, designating the new location of such
office * * *.
The commission at the direction of the board shall * * * issue a new license for the new
location and mail it to the licensee at either his or her new place of
business or another location that is designated by the licensee.
Licenses and pocket cards shall remain the property of the state; and, upon any suspension or revocation of a license pursuant to this chapter, the individual holding the related license and pocket card shall immediately return such license and pocket card to the commission.
The commission shall maintain and keep open for public inspection during office hours a complete and properly indexed record of all applications for licensure received and licenses issued, renewed, revoked, cancelled or suspended under the provisions of this chapter. A copy of any such record, except pending investigation files, shall be made available to the public, upon application to the commission, at such reasonable price per copy as may be fixed by the commission.
SECTION 4. Section 73-34-51, Mississippi Code of 1972, is amended as follows:
73-34-51. (1) Each applicant for licensure under this chapter who is not a resident of this state shall submit, with his or her application, an irrevocable consent that legal action arising out of his or her activities as a real estate appraiser in this state may be commenced against him or her in the proper court of any county of this state in which a cause of action may arise or in which the plaintiff may reside by service of process or pleading authorized by laws of this state, by the Secretary of State, or by the Administrator of the Mississippi Real Estate Commission. The consent shall stipulate that the service of process or pleading shall be taken in all courts to be valid and binding as if personal service had been made upon the nonresident licensee in this state. The consent shall be duly acknowledged. Every nonresident licensee shall consent to have any hearings conducted by the board pursuant to Section 73-34-35 at a place designated by the board.
(2) Any service of process or pleading shall be served on the Administrator of the Mississippi Real Estate Commission by filing duplicate copies, one (1) of which shall be filed in the office of the board and the other forwarded by certified mail to the last-known principal address of the nonresident licensee against whom the process or pleading is directed.
(3) If, in the determination of the board, another state or territory or the District of Columbia is deemed to have substantially equivalent licensure laws for real estate appraisers, an applicant for licensure in this state who is licensed under the law of such other state, territory or district may obtain a license as a real estate appraiser in this state upon such terms and conditions as may be determined by the board provided that disciplinary proceedings are not pending against such applicant in his or her state of licensure. The issuance of a license by reciprocity to a military-trained applicant or military spouse shall be subject to the provisions of Section 73-50-1. A license that has been issued to a military-trained applicant or military spouse shall be mailed to either his or her place of business or another location that is designated by the applicant or spouse.
SECTION 5. Section 73-35-13, Mississippi Code of 1972, is amended as follows:
73-35-13. (1) In addition to proof of his or her honesty, trustworthiness and good reputation, the applicant shall take a written examination which shall be held at least four (4) times each year at regular intervals and on stated times by the commission and shall test reading, writing, spelling, elementary arithmetic and his or her general knowledge of the statutes of this state relating to real property, deeds, mortgages, agreements of sale, agency, contract, leases, ethics, appraisals, the provisions of this chapter and such other matters the commission certifies as necessary to the practice of real estate brokerage in the State of Mississippi. The examination for a broker's license shall differ from the examination for a salesperson's license, in that it shall be of a more exacting nature and require higher standards of knowledge of real estate. The commission shall cause examinations to be conducted at such times and places as it shall determine.
(2) In event the license of
any real estate broker or salesperson is revoked by the commission * * * after the enactment of
this chapter, no new license shall be issued to such person unless he or she
complies with the provisions of this chapter.
(3) No person shall be permitted or authorized to act as a real estate broker or salesperson until he or she has qualified by examination, except as hereinbefore provided. Any individual who fails to pass the examination for salesperson upon two (2) occasions, shall be ineligible for a similar examination, until after the expiration of three (3) months from the time such individual last took the examination. Any individual who fails to pass the broker's examination upon two (2) occasions, shall be ineligible for a similar examination until after the expiration of six (6) months from the time such individual last took the examination, and then only upon making application as in the first instance.
(4) If the applicant is a partnership, association or corporation, the examination shall be taken on behalf of the partnership, association or corporation by the member or officer thereof who is designated in the application as the person to receive a license by virtue of the issuing of a license to such partnership, association or corporation.
(5) Upon satisfactorily passing such examination and upon complying with all other provisions of law and conditions of this chapter, a license shall thereupon be issued to the successful applicant who, upon receiving such license, is authorized to conduct the business of a real estate broker or real estate salesperson in this state. The license shall be mailed to the licensee at either his or her designated place of business or another location that is designated by the licensee.
(6) The commission is authorized to exempt from such examination, in whole or in part, a real estate licensee of another state who desires to obtain a license under this chapter, provided that the examination administered in the other state is determined by the commission to be equivalent to such examination given in this state and provided that such other state extends this same privilege or exemption to Mississippi real estate licensees. The issuance of a license by reciprocity to a military-trained applicant or military spouse shall be subject to the provisions of Section 73-50-1.
SECTION 6. Section 73-35-15, Mississippi Code of 1972, is amended as follows:
73-35-15. (1) Every
person, partnership, association or corporation licensed as a real estate
broker shall be required to have and maintain a definite place of business that
is designated in its license, which shall be a room either in his or her
home or an office elsewhere, to be used for the transaction of real estate
business, or such business and any allied business. The certificate of
registration as broker and the certificate of each real estate salesperson
employed by such broker shall be prominently displayed in * * * the designated place of business.
* * * The license shall be
mailed to the licensee at either his or her place of business or another
location that is designated by the licensee. In case of removal from the
designated address, the licensee shall make application to the commission
before removal, or within ten (10) days after removal, designating the new
location of such office * * *, whereupon. The commission shall * * * issue a new license for the new
location for the unexpired period, which shall be mailed to the licensee at
either his or her new place of business or another location that is designated
by the licensee.
(2) All licenses issued to
a real estate salesperson or broker-salesperson shall designate the responsible
broker of such salesperson or broker-salesperson. Prompt notice in writing,
within three (3) days, shall be given to the commission by any real estate
salesperson of a change of responsible broker, and of the name of the principal
broker into whose agency the salesperson is about to enter; and a new license
shall * * *
be issued by the commission to such salesperson for the unexpired term of the
original license upon the return to the commission of the license previously
issued. The new license shall be mailed to the licensee at either his or
her place of business or another location that is designated by the licensee.
The change of responsible broker or employment by any licensed real estate
salesperson without notice to the commission as required shall automatically
cancel his or her license. Upon termination of a salesperson's agency,
the responsible broker shall within three (3) days return the salesperson's
license to the commission for cancellation. It shall be unlawful for any real
estate salesperson to perform any of the acts contemplated by this chapter
either directly or indirectly after his or her agency has been
terminated and his or her license has been returned for cancellation
until his or her license has been reissued by the commission.
SECTION 7. Section 73-35-14.5, Mississippi Code of 1972, is amended as follows:
73-35-14.5. (1) Upon passing the Mississippi broker's or salesperson's examination and complying with all other conditions for licensure, a temporary license shall be issued to the applicant at either his or her designated place of business or another location that is designated by the applicant. The fee for the temporary license shall also be the same for the permanent license as provided in Section 73-35-17. A temporary license shall be valid for a period of one (1) year following the first day of the month after its issuance.
(2) All Mississippi residents who apply for and receive a nonresident Mississippi broker's or salesperson's license shall be subject to the requirements under this section, including temporary licensure and completion of a thirty-hour post-license course.
(3) The holder of a temporary license shall not be issued a permanent license until he or she has satisfactorily completed a thirty-hour post-license course prescribed by the commission and offered by providers specifically certified by the commission to offer this mandated post-license education. The holder of a temporary license shall complete the entire thirty-hour course within twelve (12) months of issuance of his or her temporary license; otherwise this temporary license shall automatically be placed on inactive status by the Mississippi Real Estate Commission. If the holder of the temporary license does not complete the course and have his or her permanent license issued within one (1) year following the first day of the month after its issuance, the temporary license shall automatically expire and lapse. A temporary license is not subject to renewal procedures in this chapter and may not be renewed.
(4) The thirty-hour post-license course shall be offered by providers certified and approved by the commission, and an annual certification fee of One Thousand Dollars ($1,000.00) shall be charged to providers. The thirty-hour post-license coursework shall be offered in no less than fifteen-hour increments of classroom instruction. No more than eight (8) hours may be earned in a single day. The commission shall determine standards for approval of post-license courses and course providers, and shall require certification of such coursework of the applicant. There shall be different content criteria for post-license education for salesperson licensees and for broker licensees. In the post-license course for salesperson licensees, a minimum of twenty-four (24) hours of the thirty-hour coursework shall be in the following subjects: agency relationships, contracts, earnest money, antitrust, fair housing, ethics and property condition disclosure. The remaining six (6) hours shall be in subjects intended to enhance the competency of salesperson licensees in representing consumers, and may include the following subjects: pricing property, environmental issues, home inspections, leases and property management, and mortgage processes. In the post-license course for broker licensees, a minimum of twenty-four (24) hours of the thirty-hour coursework shall be in the following subjects: managing escrow accounts, intraoffice confidentiality, broker responsibilities to licensees, office policies and procedures (including agency office policies), broker agreements with licensees and assistants and Mississippi Real Estate Commission required forms and any other subject as the commission may, by rule, require to be included in such course. The remaining six (6) hours shall be in subjects intended to enhance the competency of brokers, including, without limitation, managing agents, recruiting, retention, budgeting and financial planning.
(5) The holder of an active license who has satisfactorily completed the post-license course and whose permanent license has been issued shall not be subject to the sixteen-hour continuing education requirement in this chapter for the first renewal of his or her permanent license.
SECTION 8. Section 73-34-103, Mississippi Code of 1972, is brought forward as follows:
73-34-103. (1) It is unlawful for a person to directly or indirectly engage or attempt to engage in business as an appraisal management company in this state or to advertise or hold itself out as engaging in or conducting business as an appraisal management company in this state without first obtaining a registration issued by the Mississippi Real Estate Appraiser Licensing and Certification Board under the provisions of this chapter.
(a) An applicant for registration as an appraisal management company in this state shall submit to the Mississippi Real Estate Commission an application on a form or forms prescribed by the board accompanied by an original or certified copy of a surety bond payable to the State of Mississippi in the amount of Twenty Thousand Dollars ($20,000.00) for the use, benefit and indemnity of any person who suffers any damage or loss as a result of the appraisal management company's breach of contract or of any obligation arising therefrom or any violation of law.
(b) In the event a registration process is unavailable on December 1, 2013, an appraisal management company already conducting business in this state may continue to conduct business in accordance with Sections 73-34-101 through
73-34-131 until one hundred twenty (120) days after a registration process becomes available.
(2) An application for the registration required by subsection (1) of this section shall, at a minimum, include:
(a) The name of the person seeking registration and the fictitious name or names under which he does business in any state;
(b) The business address of the entity seeking registration;
(c) The phone contact information of the entity seeking registration;
(d) If the person is not a corporation that is domiciled in this state, the name and contact information for the person's agent for service of process in this state;
(e) The name, address, and contact information for any individual or any corporation, partnership, or other business entity that owns ten percent (10%) or more of the appraisal management company;
(f) The name, address, and contact information for one (1) controlling person designated as the main contact for all communication between the appraisal management company and the commission;
(g) A certification that the person has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds a license in good standing in this state under the Real Estate Appraiser Licensing and Certification Act if a license or certification is required to perform appraisals;
(h) A certification that the person requires appraisers completing appraisals at its request to comply with the Uniform Standards of Professional Appraisal Practice (USPAP), including the requirements for geographic and product competence;
(i) A certification that the person has a system in place to verify that only licensed or certified appraisers are used for federally related transactions;
(j) A certification that the person has a system in place to require that appraisals are conducted independently and free from inappropriate influence and coercion as required by the appraisal independence standards established under Section 129E of the Truth in Lending Act, including the requirements for payment of a reasonable and customary fee to appraisers when the appraisal
management company is providing services for a consumer credit transaction secured by the principal dwelling of a consumer;
(k) A certification that the person maintains a detailed record of each service request that it receives
and the appraiser that performs the residential real estate appraisal services for the appraisal management company;
(l) An irrevocable Consent to Service of Process required under Section 73-34-107;
(m) Any other information required by the board which is reasonably necessary to implement Sections 73-34-101 through 73-34-131.
(3) An application for the renewal of a registration shall include substantially similar information required for the initial registration as noted in subsection (2), as determined by the board.
(4) A registration granted by the commission under the provisions of Sections 73-34-101 through 73-34-131 shall be valid for one (1) year from the date on which it is issued.
(5) The provisions of this section shall stand repealed on July 1, 2019.
SECTION 9. Section 73-34-131, Mississippi Code of 1972, is brought forward as follows:
73-34-131. The conduct of adjudicatory proceedings in accordance with applicable state laws for violations of Sections 73-34-101 through 73-34-131 is vested in the commission, such that:
(a) Before censuring any registrant, or suspending or revoking any registration, the commission shall notify the registrant in writing of any charges made at least twenty (20) days before the date set for the hearing and shall afford the registrant an opportunity to be heard in person or by counsel.
(b) The written notice shall be satisfied by personal service on the controlling person of the registrant, or the registrant's agent for service of process in this state, or by sending the notice by certified mail, return receipt requested to the controlling person of the registrant to the registrant's
address on file with the commission.
(c) The hearing on the charges shall be at a time and place prescribed by the commission and in accordance with the applicable state laws.
(d) The commission may make findings of fact and shall deliver or mail such findings to the registrant charged with an offense under Sections 73-34-101 through 73-34-131.
SECTION 10. This act shall take effect and be in force from and after July 1, 2019.