MISSISSIPPI LEGISLATURE
2004 Regular Session
To: Business and Financial Institutions
By: Senator(s) Michel
AN ACT TO AMEND SECTION 73-34-3, MISSISSIPPI CODE OF 1972, TO DELETE THE DEFINITION OF THE TERM "TIMBERLAND" AS USED IN THE REAL ESTATE APPRAISER LICENSING AND CERTIFICATION ACT; TO AMEND SECTION 73-34-5, MISSISSIPPI CODE OF 1972, TO DELETE THE TIMBERLAND APPRAISER LICENSE; TO AMEND SECTION 73-34-7, MISSISSIPPI CODE OF 1972, TO REVISE THE COMPOSITION OF THE BOARD TO CONFORM TO CURRENT CONGRESSIONAL DISTRICTS; TO AMEND SECTIONS 73-34-17, 73-34-19 AND 73-34-21, MISSISSIPPI CODE OF 1972, TO REVISE THE EDUCATIONAL REQUIREMENTS FOR APPRAISER LICENSES; TO AMEND SECTION 73-34-33, MISSISSIPPI CODE OF 1972, TO REVISE CONTINUING EDUCATION REQUIREMENTS; TO AMEND SECTION 73-34-41, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE BOARD TO TAKE ACTION OTHER THAN A FORMAL HEARING AT THE CLOSE OF AN INVESTIGATION; TO AMEND SECTION 73-34-45, MISSISSIPPI CODE OF 1972, TO DELETE LANGUAGE CONCERNING FEES IMPOSED ON LICENSEES BEFORE 1991; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. 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. 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 Appraiser Licensing and Certification Board that is established pursuant to 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 pursuant to this chapter.
(e) "Commission" means the Mississippi Real Estate Commission as established under Section 73-35-5, Mississippi Code of 1972.
(f) "Licensed real estate appraiser" means a person who holds a current, valid appraiser license issued to him under the provisions of this chapter.
(g) "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.
(h) "Real estate appraisal activity" means the act or process of making an appraisal of Mississippi real estate or real property and preparing an appraisal report.
(i) "Real estate appraiser" means a person who engages in real estate appraisal activity * * *.
(j) "Real property" means one or more defined interests, benefits or rights inherent in the ownership of real estate.
(k) "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.
* * *
SECTION 2. Section 73-34-5, Mississippi Code of 1972, is amended as follows:
73-34-5. (1) Except as otherwise provided for in this section, it shall be unlawful for anyone to engage in real estate appraisal activity in this state without first obtaining one (1) of the three (3) real estate appraiser licenses as provided in this chapter.
(a) * * * If * * * the Appraisal Subcommittee of the Federal Financial Institutions Examination Council or the Appraisal Standards Board or Appraiser Qualifications Board of the Appraisal Foundation * * * waives any requirement relating to certification or licensing of persons to perform appraisals in Mississippi, then such waiver shall also be effective in Mississippi under the Real Estate Appraiser Licensing and Certification Act and such requirement shall be waived by the Real Estate Appraiser Licensing and Certification Board until the waiver is terminated * * *.
(b) The provisions of this chapter shall not apply to any director, officer or salaried employee of commercial banks, savings banks, credit unions, and savings and loan associations, when engaged in appraisal or evaluation activities for and on behalf of such financial institution unless there is a fee charged for the appraisal or evaluation; provided that a federal statute, rule or regulation does not require such appraisal or evaluation activities to be performed by a state licensed appraiser.
(c) This section shall not be construed to apply to individuals who do not render significant professional assistance in arriving at a real estate appraisal analysis, opinion or conclusion. Examples of the type of assistance which are not considered "significant professional assistance" under this section include the following: (i) assistance in obtaining the data upon which the appraisal is based; (ii) assistance in the physical preparation of the appraisal report (such as taking photographs, preparing charts, maps or graphs, or typing or printing the report); and (iii) any other assistance that does not directly involve the exercise of judgment in arriving at the analysis, opinions or conclusions concerning real estate or real property set forth in the appraisal report.
(2) This chapter shall not apply to a real estate broker or salesperson licensed by this state who, in the ordinary course of his business, gives an opinion as to the price of real estate for the purpose of a prospective listing or sale; provided, however, that this opinion as to the listing price or the sale price shall not be referred to as an appraisal and provided, further, that no compensation, fee or other consideration is charged for such opinion other than the real estate commission or brokerage fee that is charged or paid for brokerage services rendered in connection with the sale of the real property involved.
(3) The provisions of this chapter shall not apply to:
(a) Any state, county, or municipal public officers or their salaried employees while performing their duties as such;
(b) The employees of private firms engaged pursuant to Section 27-35-165(2)(a) who perform work under the direction of the county tax assessor; or
(c) Private consultants hired pursuant to Section 27-35-165(2)(b) and all personnel employed or otherwise engaged by private consultants to appraise property who perform work under the direction of the county tax assessor.
(4) No license shall be issued under the provisions of this chapter to a corporation, partnership, firm or group.
(5) The provisions of this chapter shall not apply to individuals performing timber cruises * * *.
SECTION 3. Section 73-34-7, Mississippi Code of 1972, is amended as follows:
73-34-7. (1) (a) There is hereby established, as an adjunct board to the Mississippi Real Estate Commission, a board to be known as the Mississippi Real Estate Appraiser Licensing and Certification Board, which shall consist of six (6) members. Five (5) members shall be appointed by the Governor, with the advice and consent of the Senate, one (1) from each congressional district as such district exists on July 1, 2004, and one (1) from the state at large; the Administrator of the Mississippi Real Estate Commission shall be an ex officio, nonvoting member. Gubernatorial appointments shall be made pursuant to the procedure established in this subsection. At least two (2) members shall be certified general real estate appraisers and one (1) member shall be a certified residential real estate appraiser. Upon the expiration of a member's term, the 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 two (2) consecutive terms. The Governor may remove an appointed member for cause.
(b) The * * * appointments made by the Governor shall be in compliance with guidelines issued by the Federal Financial Institutions Examination Council or its designee * * *. Not more than two (2) positions on the board shall be filled with appointees who hold membership in the same professional appraisal organization.
* * *
(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; commencing January 1, 1992, at least one (1) present must be a licensed certified general real estate appraiser or a 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; ex officio members are entitled to mileage and actual expenses only.
(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 4. 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 not less than the minimum number of classroom hours * * * consisting of course criteria as set by the Appraiser Qualifications Board (AQB), and as approved by the Mississippi Real Estate Appraiser Licensing and Certification Board. * * *
(b) Pass an exam administered by the commission that is based upon required appraisal study and is designed to test an individual's knowledge of the basic principles of land economics and the basic principles of real estate appraising.
(c) Be trustworthy and competent to transact the business of real estate appraising.
(d) 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 5. Section 73-34-19, Mississippi Code of 1972, is amended as follows:
73-34-19. The following shall be the two (2) classes for licensed certified real estate appraisers and one (1) class for licensed real estate appraisers:
(a) Licensed certified residential real estate appraiser. The licensed certified residential real estate appraiser classification shall consist of those persons who meet the requirements that relate to the appraisal of residential real property of one (1) to four (4) units without regard to transaction value or complexity. In addition, when nonfederally related transactions are involved, the licensed certified residential real estate appraiser shall enjoy the same privileges as set forth for the licensed real estate appraiser.
(b) Licensed certified general real estate appraiser. The licensed certified general real estate appraiser classification shall consist of those persons who meet the requirements relating to the appraisal of all types of real estate.
(c) Licensed * * * real estate appraiser. The licensed * * * real estate appraiser classification shall consist of those persons who meet the requirements that relate to the appraisal of all types of real estate that does not require a certified appraisal.
Each application for licensing as a licensed certified real estate appraiser, or for the renewal of a license, and each application to take an examination, shall specify the classification of licensing being applied for and, if applicable, the class of license previously granted. Each applicant shall be trustworthy and competent to transact the business of real estate appraising and comply with such other requirements as may be prescribed by the board.
SECTION 6. Section 73-34-21, Mississippi Code of 1972, is amended as follows:
73-34-21. (1) As a prerequisite to taking the examination for licensing as a licensed certified residential real estate appraiser, an applicant shall present acceptable evidence that such applicant has successfully completed not less than the minimum number of classroom hours in courses of study as required by the Appraiser Qualifications Board (AQB) and as approved by the board * * *. The courses of study referred to above must be conducted by an accredited university, college or junior college; an approved appraisal society, institute or association; or such other school as may be approved by the board and in compliance with federal requirements * * *.
(2) As a prerequisite to taking the examination for licensing as a licensed certified general real estate appraiser, an applicant shall present acceptable evidence that such applicant has successfully completed not less than * * * the minimum number of classroom hours in courses of study as required by the Appraiser Qualifications Board (AQB) and as approved by the board. The courses of study referred to above must be conducted by an accredited university, college or junior college; an approved appraisal society, institute or association; or such other school as may be approved by the board and in compliance with federal requirements * * *.
(3) As a prerequisite to taking the examination for licensing as a licensed * * * real estate appraiser, an applicant shall present acceptable evidence that such applicant has successfully completed not less than the minimum number of classroom hours in courses of study as required by the Appraiser Qualifications Board (AQB) and as approved by the board. * * * The courses of study referred to above must be conducted by an accredited university, college or junior college; an approved appraisal society, institute or association; or such other school as may be approved by the board and in compliance with federal requirements.
(4) A license as a licensed certified real estate appraiser shall not be issued to any person who does not possessthe minimum number of classroom hours in courses of study as required by the Appraiser Qualifications Board (AQB) and as approved by the board, supported by adequate written reports or file memoranda.
SECTION 7. Section 73-34-33, Mississippi Code of 1972, is amended as follows:
73-34-33. (1) As a prerequisite to renewal of license, an active status licensed appraiser shall present evidence satisfactory to the board that such appraiser has met the continuing education requirements of this section. The basic continuing education requirement for renewal of a license shall be completed by the applicant, during the immediately preceding term of licensure, of not less than the minimum number of classroom hours in courses of study as required by the Appraiser Qualifications Board (AQB) and as approved by the board. Inactive status licensees are not required to meet the continuing education requirements specified in this section; however, such inactive licensees, before activating their license to active status, shall cumulatively meet the requirements missed during the period their license was inactive.
(2) In lieu of meeting the requirements set forth above, an applicant for renewal may satisfy * * * the requirements provided in subsection (1), except for USPAP, by presenting evidence of the following:
(a) Completion of an educational program of study determined by the board to be equivalent, for continuing education purposes, to courses or seminars approved by the board; or
(b) Participation, other than as a student, in educational processes and programs approved by the board which relate to real property appraisal theory, practices or techniques, including, but not necessarily limited to, teaching, program development and preparation of textbooks, monographs, articles and other instructional materials.
(3) The board shall develop regulations for the implementation of the provisions of this section to ensure that an individual who renews his license as a licensed appraiser or as a licensed certified real estate appraiser under this chapter has a working knowledge of current real estate appraisal theories, practices and techniques that will enable him to provide competent real estate appraisal services to the members of the public with whom he deals in a professional relationship under the authority of his licensure. The regulations developed by the board shall prescribe the following:
(a) Policies and procedures to be followed in obtaining board approval of courses of instruction and seminars;
(b) Standards, policies and procedures to be used by the board in evaluating an applicant's claims of equivalency; and
(c) Standards, monitoring methods, and systems for recording attendance to be employed by course and seminar sponsors as a prerequisite to board approval of courses and seminars for credit.
In developing and proposing regulations under this section, the board shall give consideration to courses of instruction, seminars and other appraisal education programs developed by or under the authority of organizations or associations of professional real estate appraisers which are utilized by such organizations or associations for the purpose of awarding real estate appraisal designations or indicating compliance with the continuing education requirements of such organizations or associations.
(4) No amendment or repeal of a regulation adopted by the board pursuant to this section shall operate to deprive a licensed appraiser or licensed certified real estate appraiser of credit toward renewal of such appraiser's license for any course of instruction or seminar that had been completed by such individual prior to the amendment or repeal of the regulation.
SECTION 8. Section 73-34-41, Mississippi Code of 1972, is amended as follows:
73-34-41. The commission may investigate at the direction of the board the actions of an individual licensed under this chapter or an applicant for licensure or renewal. 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 or licensed certified real estate appraiser, or deny an application, for any of the acts or omissions set forth in Section 73-34-35.
Upon receipt of information indicating that a licensed appraiser or a licensed certified real estate appraiser 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 deny an application, for any of the acts or omissions set forth in Section 73-34-35.
Upon receipt of information indicating that a licensed appraiser or licensed certified real estate appraiser may have committed a violation under Section 73-34-35, the commission, at the direction of 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 commission'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 or licensed certified real estate appraiser has committed a violation under Section 73-34-35, a formal complaint shall be prepared by the commission staff at the direction of the board and served upon such real estate appraiser. 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, 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, or other action deemed appropriate by the board.
SECTION 9. Section 73-34-45, Mississippi Code of 1972, is amended as follows:
73-34-45. The commission 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.
LICENSURE FEES:
Application and examination ..........................$225.00
Initial and renewal license ......................... $325.00
Delinquent renewal penalty ............. 100% of renewal fee
SERVICES:
For each change of address .............................. $ 25.00
For each duplicate license .............................. $ 25.00
To change status as a licensee from active to inactive .. $ 25.00
For each bad check received * * * ....................... $ 25.00
All fees charged and collected under this chapter shall be paid by the commission at least once a week, accompanied by a detailed statement thereof, 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 such 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 commission shall prepare an annual statement of income and expenses related to its appraisal related administrative function.
* * *
SECTION 10. This act shall take effect and be in force from and after July 1, 2004.