MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Accountability, Efficiency, Transparency
By: Senator(s) Polk, Blackwell, Jackson
AN ACT TO AMEND SECTION 73-34-7, MISSISSIPPI CODE OF 1972, TO SEPARATE THE MISSISSIPPI REAL ESTATE APPRAISAL BOARD FROM THE MISSISSIPPI REAL ESTATE COMMISSION; TO AMEND SECTIONS 73-34-3, 73-34-9, 73-34-13, 73-34-17, 73-34-27, 73-34-35, 73-34-41, 73-34-45, 73-34-47, 73-34-49, 73-34-51, 73-34-103, 73-34-113, 73-34-117, 73-34-129 AND 73-34-131, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) Effective July 1, 2023, the Mississippi Real Estate Appraiser Licensing and Certification Board shall be separated from the Mississippi Real Estate Commission and shall thereafter operate as an independent board to be known as the Mississippi Real Estate Appraisal Board.
(2) The Mississippi Real Estate Commission and the Mississippi Real Estate Appraisal Board shall cooperate on the orderly transfer of functions and resources as provided under this act to ensure that by July 1, 2023, the Mississippi Real Estate Appraisal Board shall be fully functional and independent from the Real Estate Commission.
(3) The Mississippi Real Estate Commission and the Mississippi Real Estate Appraisal Board shall comply with the provisions of Section 5-11-1 et seq. regarding the transfer of agency functions.
(4) (a) The Mississippi State Personnel Board shall provide assistance to the Commission and the board to ensure that all authorized positions of the Mississippi Real Estate Appraisal Board are identified and properly assigned to the Mississippi Real Estate Appraisal Board by July 1, 2023.
(b) The Department of Finance and Administration shall assist the Mississippi Real Estate Appraisal Board in identifying office space appropriate to its needs in a state-owned office building if possible, and shall further provide any temporary accounting or other assistance to the board to assist the board in becoming operational and independent.
(c) The Department of Information Technology Services shall provide assistance to the Mississippi Real Estate Appraisal Board to ensure that any and all computer systems, web pages and other information technology communications systems are operational by July 1, 2023.
SECTION 2. Section 73-34-7, Mississippi Code of 1972, is amended as follows:
73-34-7. (1) (a) There is
hereby established * * * a board
to be known as the Mississippi Real Estate * * * Appraisal
Board, which shall consist of * * * five (5) members. * * * Each member shall be
appointed by the Governor, with the advice and consent of the Senate, one (1)
from each congressional district as such district existed on January 1, * * * 2004, and one
(1) member from the state at large. No more than two (2) members of the
board shall be appointed who hold membership in the same professional appraisal
organization.
* * *
( * * *b) At least * * * two (2) members shall be certified
general real estate appraisers * * * and at least two (2) members shall be * * * certified residential real estate appraisers. * * * Each member
shall serve for a term of four (4) years. Upon the expiration of a member's
term, such member shall continue to serve until the appointment and
qualification of a successor. * * * No
person shall be appointed as a member of the board for more than * * * three (3) consecutive terms.
The Governor may remove an appointed member for cause. The provisions of this
paragraph (b) shall not affect persons who are members of the board as of January
1, 2023. Such member(s) shall serve out their respective terms, upon the expiration
of which the provisions of this paragraph (b) shall take effect. Nothing provided
herein shall be construed as prohibiting the reappointment of any such member.
(2) The board shall meet not less than twice a calendar year. Written notice shall be given to each member of the time and place of each meeting of the board at least ten (10) days prior to the scheduled date of the meeting.
(3) A quorum of the board
shall be three (3) voting members * * *, including
at least one (1) * * * licensed certified general real estate appraiser or * * * certified residential real estate appraiser.
Appointed members of the board are entitled to mileage and actual expenses as
authorized by Section 25-3-41 and per diem as provided by Section 25-3-69 * * *.
(4) The board shall elect a chairman and such other officers as it deems necessary. Such officers shall serve as such for terms established by the board.
SECTION 3. Section 73-34-3, Mississippi Code of 1972, is amended as follows:
73-34-3. As used in this chapter, the following terms and phrases shall have the following meanings unless the context clearly indicates otherwise:
(a) "Appraisal" means an analysis, opinion or conclusion prepared by a real estate appraiser relating to the nature, quality, value or utility of specified interests in, or aspects of, identified real estate or identified real property performed in accordance with the Uniform Standards for Professional Appraisal Practice. An appraisal may be classified by the nature of the assignment into either a valuation assignment or an evaluation assignment. The term "valuation assignment" means an analysis, opinion or conclusion prepared by a real estate appraiser that estimates the value of an identified parcel of real estate or identified real property at a particular point in time. The term "evaluation assignment" means an analysis, opinion or conclusion prepared by a real estate appraiser that relates to the nature, quality or utility of identified real estate or identified real property.
(b) "Appraisal report" means any communication, written or oral, of an appraisal. For the purposes of this chapter, the testimony of an appraiser dealing with the appraiser's analyses, conclusions or opinions concerning identified real property is deemed to be an oral appraisal report.
(c) "Board"
means the Mississippi Real Estate * * * Appraisal
Board that is established under the provisions of this chapter.
(d) "Certified appraisal report" means an appraisal report given or signed and certified as such by a state certified real estate appraiser. When a state certified real estate appraiser identifies an appraisal report as "certified," such state certified real estate appraiser must indicate which type of certification he holds. The certification of an appraisal report by a state certified real estate appraiser represents to the public that it meets the appraisal standards established under this chapter.
* * *
( * * *e) "Licensed real estate appraiser"
means a person who holds a current, valid appraisal license issued to him under
the provisions of this chapter.
( * * *f) "Real estate or real property"
means an identified parcel or tract of land, with improvements, and includes
easements, rights-of-way, undivided or future interest, or similar rights in a tract
of land, but does not include mineral rights, timber rights, growing crops,
water rights, or similar interests severable from the land when the transaction
does not involve the associated parcel or tract of land.
( * * *g) "Real estate appraisal activity"
means the act or process of making an appraisal of real estate or real property
and preparing an appraisal report.
( * * *h) "Real estate appraiser"
means a person who engages in real estate appraisal activity for a fee or other
valuable consideration.
( * * *i) "Real property" means one
or more defined interests, benefits or rights inherent in the ownership of real
estate.
( * * *j) "State certified real estate
appraiser" means a person who holds a current, valid license as a real
estate appraiser issued to him under the provisions of this chapter for
certified real estate appraisers.
( * * *k) "Appraisal management company"
or "AMC" means, in connection with valuing properties collateralizing
mortgage loans or mortgages incorporated into a securitization, any external
third party that oversees a network or panel of more than fifteen (15) certified
or licensed appraisers in this state or twenty-five (25) or more nationally
within a given year, that is authorized either by a creditor of a consumer
credit transaction secured by a consumer's principal dwelling or by an
underwriter of or other principal in the secondary mortgage markets to:
(i) Recruit, select, and retain appraisers;
(ii) Contract with licensed and certified appraisers to perform appraisal assignments;
(iii) Manage the process of having an appraisal performed, including providing administrative duties such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for services
provided, and reimbursing appraisers for services performed; or
(iv) Review and verify the work of appraisers.
( * * *l) "Appraisal review" means the
act or process of developing and communicating an opinion about the quality of
another appraiser's work that was performed as part of an appraisal assignment,
except that a quality control examination of an appraisal shall not be an
appraisal review.
( * * *m) "Appraiser" means an
individual who holds a license or certification as an appraiser and is expected
to perform valuation services competently and in a manner that is independent,
impartial and objective.
( * * *n) "Appraiser panel" means a
network, list or roster of licensed or certified appraisers approved by an AMC
to perform appraisals as independent contractors for the AMC.
( * * *o) "Controlling person"
means:
(i) An officer or director, or owner of greater than a ten percent (10%) interest, of a corporation, partnership or other business entity, seeking to act as an appraisal management company in this state;
(ii) An individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with other persons for the performance of services requiring registration as an appraisal management company and has the authority to enter
into agreements with appraisers for the performance of appraisals; or
(iii) An individual who possesses, directly or indirectly, the power to direct or cause the direction of
the management or policies of an appraisal management company.
( * * *p) "Federal financial
institutions regulatory agencies" means the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance Corporation, the Office
of the Comptroller of the Currency, the Office of Thrift Supervision, and the
National Credit Union Administration.
( * * *q) "Federally related transaction"
means any real estate-related financial transaction which a federal financial
institutions regulatory agency or the Resolution Trust Corporation engages in,
contracts for, or regulates, and which requires the services of an appraiser.
( * * *r) "Person" means an
individual, firm, partnership, limited partnership, limited liability company,
association, corporation, or other group engaged in joint-business activities,
however organized.
( * * *s) "Quality control examination"
means an examination of an appraisal report for compliance and completeness,
including grammatical, mathematical, typographical or other similar errors.
( * * *t) "Real estate-related financial
transaction" means any transaction involving:
(i) The sale, lease, purchase, auction, investment in or exchange of real property, including interests in
property, or the financing thereof;
(ii) The refinancing of real property or interests in real property; and
(iii) The use of real property or interests in property as security for a loan or investment, including
mortgage-backed securities.
( * * *u) "Uniform Standards of
Professional Appraisal Practice" means the current standards of the appraisal
profession, developed for appraisers and users of appraisal services by the
Appraisal Standards Board of the Appraisal Foundation.
( * * *v) "USPAP" means the Uniform
Standards of Professional Appraisal Practice.
( * * *w) "Appraisal Foundation"
means the Appraisal Foundation, as defined by 12 USC Section 3350, or its
successor.
( * * *x) "Appraisal Standards Board"
means the Appraisal Standards Board of the Appraisal Foundation, or its successor.
( * * *y) "Appraisal Subcommittee"
means the Appraisal Subcommittee of the Federal Financial Institutions
Examination Council, or its successor.
( * * *z) "Appraiser Qualifications
Board" means the Appraiser Qualifications Board of the Appraisal
Foundation, or its successor.
( * * *aa) "Supervisory appraiser"
means a supervisory appraiser as defined by the Appraiser Qualifications Board.
( * * *bb) "Trainee appraiser"
means a trainee appraiser as defined by the Appraiser Qualifications Board.
SECTION 4. Section 73-34-9, Mississippi Code of 1972, is amended as follows:
73-34-9. (1) The * * * board 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 approve or disapprove applications for licensing or registration under this chapter; to issue licenses to qualified applicants under the provisions of this chapter; 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 collect all licensing fees required
or permitted by this chapter.
( * * *d) 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.
( * * *e) To solicit bids and enter into
contracts * * *.
( * * *f) To promote research and conduct
studies relating to the profession of real estate appraising and sponsor real estate
appraisal educational activities.
( * * *g) 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.
( * * *h) To employ an * * *
administrator or director who shall keep a record of all proceedings,
transactions, communications and official acts of the * * * board and perform any other
duties as the * * * board may require.
( * * *i) 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.
( * * *j) To employ any other professional,
clerical and technical assistance as may be necessary to properly administer
the work of this chapter.
* * *
( * * *k) To be responsible for matters
relating to real estate appraisal standards, real estate appraiser qualifications,
testing standards, and appraisal management companies and enforce the
same through its disciplinary functions.
( * * *l) To hold meetings; to hold public
hearings and administrative hearings; and to prepare examination specifications
for licensed appraisers and licensed state certified appraisers.
( * * *m) 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.
( * * *n) To establish appropriate
administrative procedures for disciplinary proceedings conducted under the provisions
of this chapter.
( * * *o) To keep a record of its proceedings
and issue an annual report of its activities.
( * * *p) To further define by rule or
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 and of the
Appraiser Qualifications Board.
( * * *q) To approve or disapprove
applications for licensing or registration under this chapter.
( * * *r) To suspend or revoke licenses or
registrations under the disciplinary proceedings provided for in this chapter.
( * * *s) To present an annual budget to the Mississippi
Legislature for approval. * * * A copy of the budget shall be given to the commission.
( * * *t) To implement all requirements
directed by the Appraiser Qualifications Board, Appraisal Subcommittee of the
Federal Financial Institutions Examination Council or their designated agent.
( * * *u) To make rules and regulations
providing for an inactive license or registration status and for the
reactivation thereof.
( * * *v) To make rules and regulations
necessary to implement its powers and duties under this chapter.
( * * *w) To do all other things necessary to
carry out the provisions of this chapter.
( * * *x) 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.
( * * *y) To provide for at least one (1)
member of the board to represent the appraisal management company industry.
( * * *z) 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.
( * * *aa) To conduct surveys as necessary.
( * * *2) The members of the * * * 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 * * * board under this chapter.
SECTION 5. Section 73-34-13, Mississippi Code of 1972, is amended as follows:
73-34-13. Applications for
one (1) of the appraisal licenses, applications for renewal, applications to
take an examination, and applications for registration as an appraisal management
company shall be made in writing to the * * * board on approved forms.
The payment of the appropriate fee, as fixed under Section 73-34-45, must accompany all applications for licensure and renewal thereof, all applications to take an examination and all applications for registration as an appraisal management company. At the time of filing an application for licensure under this chapter, for renewal, or for registration as an appraisal management company, each applicant shall sign a pledge to comply with the standards of professional appraisal practices that are established from time to time for licensed appraisers and for licensed certified real estate appraisers under this chapter. Each applicant shall also certify that he understands the types of misconduct, as set forth in this chapter, for which disciplinary proceedings may be initiated against a licensed appraiser or a licensed certified real estate appraiser.
Each application or filing
made under this section shall include the last four (4) digits of the applicant's
social security number * * *.
SECTION 6. Section 73-34-17, Mississippi Code of 1972, is amended as follows:
73-34-17. To qualify to be a licensed real estate appraiser, an applicant must:
(a) Successfully complete the number and type of classroom hours or other educational qualifications that meet or exceed the qualifications required by the Appraiser Qualifications Board.
(b) Provide evidence satisfactory to the board that the applicant has completed the number of hours of experience in performing appraisals over the specified number of calendar years that meet or exceed the number of hours of experience over the specified number of calendar years as required by the Appraiser Qualifications Board.
(c) Pass any
examination administered by the * * *
board or its designated agent that is consistent with other requirements
of this chapter and approved by the Appraiser Qualifications Board when such
approval is required.
(d) Be trustworthy and competent to transact the business of real estate appraising.
(e) Comply with such other requirements as may be prescribed by the board.
The courses of study referred to in paragraph (a) above must (i) be conducted by an accredited university, college or junior college; (ii) be conducted by an approved appraisal society, institute or association; or (iii) be conducted by such other school as may be approved by the board; or (iv) consist of courses relating to appraisal education that were approved by the Mississippi Real Estate Commission prior to July 1, 1990.
SECTION 7. Section 73-34-27, Mississippi Code of 1972, is amended as follows:
73-34-27. 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 * * * board 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.
If a licensed appraiser or licensed certified real estate appraiser under this chapter fails to renew his 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.
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 8. Section 73-34-35, Mississippi Code of 1972, is amended as follows:
73-34-35. (1) An application for licensure or renewal may be denied, and the rights of any licensed appraiser or licensed certified real estate appraiser may be revoked or suspended, or the holder of the license may be otherwise disciplined, in accordance with the provisions of this chapter for any of the following acts or omissions:
(a) Failing to meet the minimum qualifications for licensure established under this chapter;
(b) Procuring or
attempting to procure licensure under this chapter by knowingly making a false
statement, submitting false information or making a material misrepresentation
in an application filed with the * * * board or procuring or
attempting to procure licensure through any form of fraud or misrepresentation;
(c) Paying money other
than the fees provided for by this chapter to any member or employee of the * * * board to procure licensure under
this chapter;
(d) An act or omission in the practice of real estate appraising which constitutes dishonesty, fraud or misrepresentation with the intent to substantially benefit the licensee or another person or with the intent to substantially injure another person;
(e) Entry of a final civil or criminal judgment against a licensee on grounds of fraud, misrepresentation or deceit;
(f) Conviction, including a conviction based upon a plea or finding of guilty, of a crime which is substantially related to the qualifications, functions or duties of a person developing real estate appraisals and communicating real estate appraisals to others;
(g) Engaging in the business of real estate appraising under an assumed or fictitious name not properly registered in this state;
(h) Paying a finder's fee or a referral fee;
(i) Making a false or misleading statement in that portion of a written appraisal report that deals with professional qualifications or in any testimony concerning professional qualifications;
(j) Issuing an appraisal on any real property in which the appraiser has an interest through fee simple ownership, leasehold, rental agreement or auction agreement;
(k) Taking a listing for the sale of a property within ninety (90) days of appraising such property, except as may be otherwise agreed upon by all parties and disclosed in the listing agreement; or
(l) Any act or conduct, whether the same or of a different character than specified above, which constitutes or demonstrates bad faith, incompetency or untrustworthiness; or dishonest, fraudulent or improper dealing; or any other violation of the provisions of this chapter and of rules and regulations established by the board.
(2) In accordance with the laws of this state, and to the extent permitted by any applicable federal legislation or regulation, the board may censure an appraisal management company, conditionally or unconditionally suspend or revoke any registration issued under this chapter, or deny renewal of any registration issued under this chapter, or levy fines or impose civil penalties not to exceed Five Thousand Dollars ($5,000.00), if after appropriate investigation the board concludes that an appraisal management company is attempting to perform, has performed, or has attempted to perform any of the following acts:
(a) Committed any act in violation of this chapter;
(b) Violated any rule or regulation adopted by the board in the interest of the public and consistent with the provisions of this chapter; or
(c) Procured a registration for itself or any other person by fraud, misrepresentation or deceit.
(3) In order to promote voluntary compliance, encourage appraisal management companies to correct errors promptly, and ensure a fair and consistent approach to enforcement, the board is authorized to impose fines or civil penalties that are reasonable in light of the nature, extent and severity of the violation. The board is also authorized to take action against an appraisal management company's registration, if at all, only after less
severe sanctions have proven insufficient to ensure behavior consistent with this chapter. When deciding whether to impose a sanction permitted by subsection (2), determining the sanction that is most appropriate in a specific instance, or making any other discretionary decision regarding the enforcement of this chapter, the board shall consider whether an appraisal management company:
(a) Has an effective program reasonably designed to ensure compliance with this chapter;
(b) Has taken prompt and appropriate steps to correct and prevent the recurrence of any detected violations; and
(c) Has independently reported to the board any significant violations or potential violations of this chapter, before an imminent threat of disclosure or investigation and within a reasonably prompt time after becoming aware of their occurrence.
(4) In addition to the reasons specified in subsection (1) of this section, the board shall be authorized to suspend the license of any licensee for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a license for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a license suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a license suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be. If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.
SECTION 9. Section 73-34-41, Mississippi Code of 1972, is amended as follows:
73-34-41. The * * * board may investigate * * * the actions of an
individual licensed or entity registered under this chapter or an applicant for
licensure, renewal or registration. Upon compliance with the procedural
requirements set forth in this chapter, the board may revoke or suspend the
license or otherwise discipline a licensed appraiser, licensed certified real
estate appraiser or registered appraisal management company, or deny an
application or registration, for any of the acts or omissions set forth in
Section 73-34-35.
Upon receipt of information indicating that a licensed appraiser, licensed certified real estate appraiser or a registered appraisal management company may have committed a violation under Section 73-34-35, the board may, upon compliance with the procedural requirements set forth in this chapter, revoke or suspend the license or otherwise discipline the licensee or registrant, or deny an application or registration, for any of the acts or omissions set forth in Section 73-34-35.
Upon receipt of information
indicating that a licensed appraiser, licensed certified real estate appraiser
or registered appraisal management company may have committed a violation under
Section 73-34-35, * * * the board * * * may cause one or more of the investigators on
its staff to make an investigation of the facts to determine whether or not
there is evidence of any such violation. If technical assistance is required,
a staff investigator may consult with not more than two (2) of the voting
members of the board. If a voting member of the board is consulted and renders
assistance in an investigation, such member shall be excused from service on
the Board in connection with any administrative hearing that results from such
investigation.
In any investigation made by
the * * *
board's investigative staff, the board shall have the power to compel
the attendance of witnesses and the production of books, appraisal documents,
records and other papers, the power to administer oaths, and the power to take
testimony and receive evidence concerning all matters within its jurisdiction.
If an investigation
indicates that a licensed appraiser, licensed certified real estate appraiser
or registered appraisal management company has committed a violation under Section
73-34-35, a formal complaint shall be prepared by the * * * board's staff at the
direction of the board and served upon such real estate appraiser or appraisal
management company in accordance with the board's rules. This complaint
shall require the accused party to file an answer to the complaint within
twenty (20) days of the date of service.
In responding to a complaint
filed by the staff of the * * * commission board, the accused party may admit the
allegations of the complaint, deny the allegations of the complaint, or otherwise
plead. Failure to make a timely response shall be deemed an admission of the allegations
of the complaint.
Upon completion of the investigation of the complaint, the board shall set a date, time and place for an administrative hearing on the complaint.
SECTION 10. Section 73-34-45, Mississippi Code of 1972, is amended as follows:
73-34-45. (1) The * * *
board shall charge and collect appropriate fees for its services under this
chapter. The fees charged shall not exceed the amounts indicated below and
shall be set by the board.
Application and examination......................... $225.00
Application only.................................... $175.00
Initial and renewal license......................... $325.00
Delinquent renewal penalty............... 100% of renewal fee
For each change of address.......................... $ 25.00
For each duplicate license.......................... $ 25.00
To change status as a licensee between
active/inactive..................................... $ 25.00
For each bad check received by the * * *
board....... $ 25.00
(2) (a) The board shall establish the fee to be paid by
each appraisal management company
making application for registration under this chapter that is sufficient for
the administration regulation and enforcement of the provisions of the
Mississippi Appraisal Management Company Registration Act (Section 73-34-101 et
seq.), but in no case shall the fee for initial registration be more than * * *
One Thousand Five Hundred Dollars ($1,500.00) * * *.
(b) The board may
establish a similar fee, not to exceed * * * One Thousand Five Hundred Dollars ($1,500.00) * * *
for the renewal of any registration, and a delinquent renewal penalty
not to exceed one hundred percent (100%) of the renewal fee.
(3) The board by rule shall establish and collect from each appraisal management company (AMC) registered under this chapter the national registry fee required by the Appraisal Subcommittee for each person who is on the appraisal panel of the company and licensed or certified as an appraiser in this state.
(a) Unless exempted under provisions of this chapter or federal law/regulation, the board shall collect from each appraisal management company operating in this state:
(i) The national registry fee required by the Appraisal Subcommittee;
(ii) Information necessary for the board to determine the national registry fee as required by the Appraisal Subcommittee;
(iii) A fee in an amount that is sufficient for the administration of this subsection as established by board rule; and
(iv) Any other information required by state or federal law.
(b) The board shall deposit the national registry fees collected under this section into an account maintained only for purposes of collecting and disbursing the national registry fees collected pursuant to this subsection.
(c) The national registry fees collected under this section shall be transmitted to the Appraisal Subcommittee regularly as required by the Appraisal Subcommittee and federal law.
(d) The board may adopt such rules and regulations necessary to implement the requirements of this subsection.
(4) The board may charge additional fees for its services which the board deems appropriate to carry out its intent and purpose. These additional fees shall not exceed the cost of rendering the service.
(5) Except for those fees
collected by the board as required for disbursement to national registries, all
fees charged and collected under this chapter shall be paid by the * * *
board at least once a week, accompanied by a detailed statement hereof,
to the credit of the fund known as the "Real Estate Appraisal License
Fund," hereby created in the State Treasury. All monies which are
collected under this chapter shall be paid into and credited to the fund for the
use of the board in carrying out the provisions of this chapter, including the
payment of salaries and expenses, printing an annual directory of licensees, and
for educational purposes. * * *The commission shall submit a monthly statement to the board detailing
any expenses which it bears as a share in the expense of administering this
chapter, for which expenses it shall be reimbursed in the amount approved by
the board. The * * * board
shall prepare an annual statement of income and expenses related to its appraisal-related
administrative function.
SECTION 11. Section 73-34-47, Mississippi Code of 1972, is amended as follows:
73-34-47. The * * * board shall issue to each licensed appraiser
or licensed certified real estate appraiser under this chapter a license
evidencing such licensure. The * * *
board shall * * * 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 * * *
board. 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. In case of removal from the designated address,
the licensee shall make application to the * * *
board before removal, or within ten (10) days after removal, designating
the new location of such office, whereupon * * * the board shall forthwith issue a new license
for the new location.
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 * * * board.
The * * * board 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 * * * board, at such reasonable
price per copy as may be fixed by the * * * board.
SECTION 12. Section 73-34-49, Mississippi Code of 1972, is amended as follows:
73-34-49. The * * * board shall prepare and issue
at least once each calendar year a roster showing the name and place of
business of each real estate appraiser currently licensed and appraisal
management company registered under the provisions of this chapter. A copy of
the roster shall be made available to the public, upon application to the * * * board, at a reasonable price
per copy as may be fixed by the * * * board. The * * * board shall send a copy of
this list to the Appraisal Subcommittee of the Federal Financial Institutions
Examination Council, or its designated agent.
SECTION 13. 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 application, an irrevocable consent that legal action arising out of his
activities as a real estate appraiser in this state may be commenced against him
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 * * *
or by the Secretary of State * * *or by the administrator * * * or
director of the board or by the board. 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 * * * Mississippi Real Estate * * *
Appraisal Board 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 state of licensure. The issuance of a license by reciprocity to a military-trained applicant, military spouse or person who establishes residence in this state shall be subject to the provisions of Section 73-50-1 or 73-50-2, as applicable.
SECTION 14. Section 73-34-103, Mississippi Code of 1972, is amended 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 * * * Appraisal Board under the provisions of this
chapter.
( * * *2) An applicant for registration as an
appraisal management company in this state shall submit to the * * * board 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.
* * *
( * * *3) 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 * * *
board;
(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.
( * * *4) 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.
( * * *5) A registration granted by the * * *
board 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.
( * * *6) This section shall stand repealed on
July 1, * * * 2027.
SECTION 15. Section 73-34-113, Mississippi Code of 1972, is amended as follows:
73-34-113. (1) An appraisal management company doing business in this state as an appraisal management company shall not:
(a) Knowingly employ any individual to perform appraisal services, who has had a license or certificate to act as an appraiser in this state or in any other state, refused, denied, cancelled, surrendered in lieu of revocation, or revoked; or
(b) Knowingly enter into any independent contractor arrangement for the performance of appraisal services, in verbal, written, or other form, with any individual who has had a license or certificate to act as an appraiser in this state or in any other state, refused, denied, cancelled, surrendered in
lieu of revocation, or revoked.
(2) Before assigning appraisal orders, the appraisal management company shall have a system in place to verify that a person being added to the appraiser panel holds the appropriate appraiser credential in good standing.
(3) Each appraisal management
company doing business as an appraisal management company shall certify to the * * *
board on an annual basis on a form prescribed by the * * *
board that the appraisal management company has systems in place to verify
that:
(a) An individual on the appraiser panel has not had a license or certification as an appraiser refused, denied, cancelled, revoked or surrendered in lieu of a pending revocation in the previous twelve (12) months; and
(b) Only licensed or certified appraisers are used to complete appraisal assignments in connection with federally related transactions.
SECTION 16. Section 73-34-117, Mississippi Code of 1972, is amended as follows:
73-34-117. (1) Each appraisal
management company doing business in this state shall certify to the * * *
board on an annual basis that it requires appraisers completing
appraisals at its request to comply with the Uniform Standards of Professional
Appraisal Practice, including the requirements for geographic and product
competence.
(2) Each appraisal
management company doing business in this state shall certify to the * * *
board on an annual basis that it 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 requirement that
fee appraisers be compensated at a customary and reasonable rate when the
appraisal management company is providing services for a consumer credit
transaction secured by the principal dwelling of a consumer.
(3) Each appraisal management
company doing business in this state shall certify to the * * *
board on an annual basis that it has a system in place requiring payment
to an independent contract appraiser for the completion of an appraisal service
within thirty (30) days after the appraiser provides the completed appraisal report
to the appraisal management company, except in cases involving a bona fide
breach of contract, substandard performance of services, or alternate payment
terms agreed upon by the appraiser and the appraisal management company.
(4) An appraisal management company shall not prohibit an appraiser from reporting the fee paid to the appraiser in the body of the appraisal report, however an appraisal management company may require an appraiser to present any such disclosure in a specified format and location.
SECTION 17. Section 73-34-129, Mississippi Code of 1972, is amended as follows:
73-34-129. (1) (a) * * * An appraisal management company may not remove an appraiser from its
appraiser panel, or otherwise refuse to assign requests for real estate appraisal
services to an independent appraiser without:
(b) Notifying the appraiser in writing of the reasons why the appraiser is being removed from the appraiser panel of the appraisal management company;
(c) If the appraiser is being removed from the panel for illegal conduct, violation of USPAP, or a violation of state licensing standards, notifying the appraiser of the nature of the alleged conduct or violation;
(d) Providing an opportunity for the appraiser to respond to the notification of the appraisal management company.
(2) An appraiser who is removed
from the appraiser panel of an appraisal management company for alleged illegal
conduct, violation of USPAP, or violation of state licensing standards, may file
a complaint with the board for a review of the decision of the appraisal management
company. The scope of the * * * board's
review in any such case is limited to determining whether the appraisal management
company has complied with subsection (1) and whether illegal conduct, a violation
of USPAP, or a violation of state licensing standards has occurred.
(3) If an appraiser files a
complaint against an appraisal management company under subsection (2), the * * *
board shall adjudicate the complaint within one hundred eighty (180) days.
(4) If after opportunity for
hearing and review, the * * * board determines that an appraisal
management company acted improperly in removing the appraiser from the appraiser
panel, or that the appraiser did not commit a violation of law, a violation of USPAP,
or a violation of state licensing standards, the * * *
board shall:
(i) Provide written findings to the involved parties;
(ii) Provide an opportunity for the appraisal management company and/or the appraiser to respond to the findings; and
(iii) Make recommendations for action.
SECTION 18. Section 73-34-131, Mississippi Code of 1972, is amended 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 * * *
board, such that:
(a) Before censuring
any registrant, or suspending or revoking any registration, the * * *
board 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 * * *
board.
(c) The hearing on the
charges shall be at a time and place prescribed by the * * *
board and in accordance with the applicable state laws.
(d) The * * *
board 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 19. Section 1 of this act shall be codified in Title 73, Chapter 34, Mississippi Code of 1972.
SECTION 20. This act shall take effect and be in force from and after July 1, 2023.