No. 34917 (Change in Proposed Rule): Rule R162-2g. Real Estate Appraiser Licensing and Certification Administrative Rules

DAR File No.: 34917
Filed: 09/12/2011 01:52:14 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this change is to respond to public comments submitted by Barry Conover, Executive Director of the Utah State Tax Commission.

Summary of the rule or change:

In Subsections R162-2g-304d(5)(e), (f), and (g), clarify that the rule applies to "assignments" performed by mass appraisers and does not contemplate that these individuals are performing full appraisals. In Subsection R162-2g-304d(5)(i), clarify internal reference. In Subsection R162-2g-307c(2)(a)(i), remove requirement for continuing education providers to have their courses approved by the Appraisal Qualifications Board (AQB). In Subsection R162-2g-307c(3)(d), remove language stating that the Division will not award credit for a continuing education (CE) class taught outside of Utah if it was marketed to Utah licensees; specify that any class taught in Utah must be certified with the Division prior to its being taught. In Subsection R162-2g-307e(5), specify six-month reinstatement period with regard to an expired instructor certification. In Subsection R162-2g-504, identify the tables as appendices and add a space between two words in Appendix 3(f)(iv). (DAR NOTE: This change in proposed rule has been filed to make additional changes to a proposed new rule that was published in the July 1, 2011, issue of the Utah State Bulletin, on page 16. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the change in proposed rule and the proposed new rule together to understand all of the changes that will be enforceable should the agency make this rule effective.)

State statutory or constitutional authorization for this rule:

• Subsection 61-2g-201(2)(h)

Anticipated cost or savings to:

the state budget:

These changes are for clarification and correction only. They do not impose any new or additional requirements for the state to oversee or enforce. Therefore, no impact to the state budget is anticipated.

local governments:

Local governments are not subject to the appraiser rules. Therefore, no fiscal impact to local governments is anticipated from these corrections and clarifications.

small businesses:

Small businesses that offer continuing education courses will not be required to bear the costs of obtaining AQB approval for their courses, as originally proposed. This change eliminates a cost that would otherwise be borne by small businesses. The other corrections and clarifications are not anticipated to have a fiscal impact to small businesses.

persons other than small businesses, businesses, or local governmental entities:

A person who allows a continuing education certification to expire will have six months to reinstate the certification, which will cost less than reapplying as a new applicant. Otherwise, the corrections and clarifications proposed are not anticipated to have a fiscal impact to affected persons.

Compliance costs for affected persons:

Compliance is accomplished through an affected person acting properly in logging and submitting experience hours and in certifying educational offerings and instructors. No costs are associated beyond those that are currently in place within the industry.

Comments by the department head on the fiscal impact the rule may have on businesses:

As stated in the rule summary, these amendments are largely clarifying in nature, and the substantive changes may result in cost savings to licensees and to the industry. No fiscal impact to businesses is anticipated from these changes.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

This rule may become effective on:

11/01/2011

Authorized by:

Thad LeVar, Deputy Director

RULE TEXT

R162. Commerce, Real Estate.

R162-2g. Real Estate Appraiser Licensing and Certification Administrative Rules.

 

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R162-2g-304d. Experience Hours.

(1)(a) Except as provided in this Subsection (1)(b), appraisal experience shall be measured in hours according to the appraisal experience hours schedules found in Appendices 1 through 3.

(b)(i) An applicant who has experience in categories other than those shown on the appraisal experience hours schedules, or who believes the schedules do not adequately reflect the applicant's experience or the complexity or time spent on an appraisal, may petition the board on an individual basis for evaluation and approval of the experience as being substantially equivalent to that required for licensure or certification.

(ii) Upon a finding that an applicant's experience is substantially equivalent to that required for licensure or certification, the board may award the applicant an appropriate number of hours for the alternate experience.

(2) General restrictions.

(a) An applicant may not accrue more than 2,000 experience hours in any 12-month period.

(b) The board may not award credit:

(i) for appraisal experience earned more than five years prior to the date of application;

(ii) for appraisals that were performed in violation of:

(A) Utah law;

(B) the law of another jurisdiction; or

(C) the administrative rules adopted by the division and the board;

(iii) for appraisals that fail to comply with USPAP;

(iv) for appraisals of the value of a business as distinguished from the appraisal of commercial real estate; or

(v) for personal property appraisals.

(c) At least 50% of the appraisals submitted for experience credit shall be appraisals of properties located in Utah.

(d) With regard to experience hours claimed from the schedules found in Appendices 1 and 2:

(i) appraisals where only an exterior inspection of the subject property is performed shall be granted 25% of the credit awarded an appraisal that includes an interior inspection of the subject property; and

(ii) no more than 25% of the total experience required for licensure or certification may be earned from appraisals where the interior of the subject property is not inspected.

(e) A maximum of 250 experience hours may be earned from appraisal of vacant land.

(f) Appraisals on commercial or multi-unit form reports shall be awarded 75% of the credit normally awarded for the appraisal.

(g)(i) If an applicant's education was approved prior to January 1, 2008 and his or her experience was approved prior to January 1, 2011 (under a system referred to by the division and industry as a segmented application), but the applicant did not pass the applicable examination required for licensure or certification by December 31, 2010, the applicant shall, by December 31, 2011:

(A) complete all additional education, as required under the AQB standards;

(B) pass the required examination applicable to the license or certification being sought by the individual; and

(C) submit a complete application to the division.

(ii) An applicant who fails to comply with the December 31, 2011 deadline established in this Subsection (2)(g)(i) shall:

(A) complete all additional education as required under the AQB standards;

(B) pass the required examination applicable to the license or certification sought by the individual;

(C) submit recent appraisals that meet the requirements of all applicable statutes and rules for review by the experience review committee; and

(D) submit a complete application to the division according to deadlines established in Subsection R162-2g-304f(1).

(3) Specific restrictions applicable to trainees applying for licensure.

(a) A trainee and the trainee's supervisor who signs the experience log shall document on the log the specific duties that the trainee performs for each appraisal.

(b) For each duty performed, the trainee shall be awarded a percentage of the total experience hours that may be awarded for the property type being appraised:

(i) pursuant to the appraisal experience hour schedules found in Appendices 1 through 3; and

(ii) with the following limitations:

(A) participation in highest and best use analysis: 10% of total hours;

(B) participation in neighborhood description and analysis: 10% of total hours;

(C) property inspection: 20% of total hours, pursuant to this Subsection (3)(c);

(D) participation in land value estimate: 20% of total hours;

(E) participation in sales comparison property selection and analysis: 30% of total hours;

(F) participation in cost analysis: 20% of total hours;

(G) participation in income analysis: 30% of total hours;

(H) participation in the final reconciliation of value: 10% of total hours; and

(I) participation in report preparation: 20% of total hours.

(c) In order for a trainee to claim credit for an inspection pursuant to this Subsection (3)(b)(ii)(C):

(i) as to the first 100 residential appraisals or first 20 non-residential appraisals completed, as applicable to the license or certification being sought, the inspection must include:

(A) measurement of the exterior of a property that is the subject of an appraisal; and

(B) inspection of the exterior of a property that is used as a comparable in an appraisal; and

(ii) as to appraisals after the first 100 residential appraisals or first 20 non-residential appraisals completed, as applicable to the license or certification being sought, the inspection must satisfy all scope of work requirements.

(d) No more than one-third of the experience hours submitted toward licensure may come from any one of the categories identified in this Subsection (3)(b)(ii).

(4) Specific restrictions applicable to applicants for certification.

(a) An individual who obtained a license from the division through reciprocity shall provide to the division all records necessary for the division to verify that the individual satisfies the experience requirements outlined in these rules.

(b) The board may not award credit:

(i) for any appraisal where the applicant cannot prove more than 50% participation in the:

(A) data collection;

(B) verification of data;

(C) reconciliation;

(D) analysis;

(E) identification of property and property interests;

(F) compliance with USPAP standards; and

(G) preparation and development of the appraisal report; or

(ii) to more than one licensed appraiser per completed appraisal, except as provided in this Subsection (5).

(c)(i) An individual applying for certification as a state-certified residential appraiser shall document at least 75% of the hours submitted from:

(A) the residential experience hours schedule found in Appendix 1; or

(B) the residential portion of the mass appraisal hours schedule found in Appendix 3.

(ii) No more than 25% of the total hours submitted may be from:

(A) the general experience hours schedule found in Appendix 2; or

(B) properties other than 1- to 4-unit residential properties identified in the mass appraisal hours schedule found in Appendix 3.

(d) An individual applying for certification as a state-certified general appraiser shall document at least 1,500 experience hours as having been earned from:

(i) the general experience hours schedule found in Appendix 2; or

(ii) properties other than 1- to 4-unit residential properties identified in the mass appraisal hours schedule found in Appendix 3.

(5) Specific restrictions applicable to mass appraisers.

(a) Single-property appraisals performed under USPAP Standards 1 and 2 by mass appraisers shall be awarded full credit pursuant to Appendices 1 and 2.

(b) Review and supervision of appraisals by mass appraisers shall be awarded credit pursuant to this Subsection (6)(b)-(c).

(c)(i) Mass appraisers and mass appraiser trainees who perform 60% or more of the appraisal work shall be awarded full credit pursuant to Appendix 3.

(ii) Mass appraisers and mass appraiser trainees who perform between 25% and 59% of the appraisal work shall be awarded 50% credit pursuant to Appendix 3.

(iii) Mass appraisers and mass appraisal trainees who perform less than 25% of the appraisal work shall be awarded no credit for the appraisal assignment.

(d) In addition to submitting proof of required experience and samples, randomly selected from the experience log, of work conforming to USPAP Standard 6:

(i) a state-licensed appraiser applicant whose experience is earned primarily through mass appraisal shall submit proof of having performed at least five appraisals conforming to USPAP Standards 1 and 2;

(ii) a state-certified residential appraiser applicant whose experience is earned primarily through mass appraisal shall submit proof of having performed at least eight one-unit residential appraisals conforming to USPAP Standards 1 and 2; and

(iii) a state-certified general appraiser applicant whose experience is earned primarily through mass appraisal shall submit proof of having performed at least eight appraisals from Appendix 2 conforming to USPAP Standards 1 and 2.

(e) No more than 60% of the total hours submitted for licensure or certification may be earned from any combination of [appraisals of]appraisal assignments related to:

(i) property types identified in Appendix 3(a)(i) and (ii);

(ii) property types identified in Appendix 3 (b)(i) and (ii);

(iii) property types identified in Appendix 3 (c)(i) and (ii);

(iv) property types identified in Appendix 3 (d)(i) and (ii);

(v) property types identified in Appendix 3 (e)(i) and (ii), and

(vi) property types identified in Appendix 3 (f)(i).

(f) No more than 25% of the total hours submitted for licensure or certification may be earned from [appraisals of]appraisal assignments related to property types identified in Appendix 3(f)(iii) and (iv) combined.

(g) No more than 20% of the total hours submitted for licensure or certification may have been earned from [appraisals of]appraisal assignments related to property types identified in Appendix 3(g).

(h)(i) Mass appraisal of property with a personal property component of less than 50% of value shall be awarded full credit pursuant to Appendix 3 for the type of property appraised.

(ii) Mass appraisal of property with a personal property component of 50% to 85% of value shall be awarded 50% credit pursuant to Appendix 3 for the type of property appraised.

(iii) Mass appraisal of property with a personal property component greater than 85% shall be awarded no credit.

(i) The appraisals submitted for review pursuant to this Subsection (5) (d) shall be selected from the applicant's most recent work.

(6) Special circumstances - condemnation appraisals, review appraisals, supervision of appraisers, other real estate experience, and government agency experience.

(a) Condemnation appraisals. A condemnation appraisal shall be awarded an additional 50% of the hours normally awarded for the appraisal if the condemnation appraisal includes a before-and-after appraisal because of a partial taking of the property.

(b) Review appraisals.

(i) Review appraisals shall be awarded experience credit when the appraiser performs technical reviews of appraisals prepared by employees, associates, or others, provided the appraiser complies with USPAP Standards Rule 3 when the appraiser is required to comply with the rule.

(ii) Except as provided in this Subsection (6)(e)(i), the following credit shall be awarded for review of appraisals:

(A) desk review: 30% of the hours that would be awarded if a separate written review appraisal report were prepared, up to a maximum of 500 hours; and

(B) field review: 50% of the hours that would be awarded if a separate written review appraisal report were prepared, up to a maximum of 500 hours.

(c) Supervision of appraisers. Except as provided in this Subsection (6)(e)(i), supervision of appraisers shall be awarded 20% of the hours that would be awarded to the appraisal, up to a maximum of 500 hours.

(d) Other real estate experience acceptable for certification.

(i) Provided that an applicant demonstrates to the satisfaction of the board that the applicant has the ability to arrive at a fair market value of property and to properly document value conclusions, the following activities may be used to satisfy up to 50% of the experience required for certification:

(A) preliminary valuation estimates;

(B) range of value estimates or similar studies;

(C) other real estate-related experience gained by:

(I) bankers;

(II) builders;

(III) city planners and managers; or

(IV) other individuals.

(ii) A comparative market analysis by an individual licensed under Section 61-2f et seq. may be granted up to 100% experience credit toward certification if:

(A) the analysis conforms with USPAP Standards Rules 1 and 2; and

(B) the individual demonstrates to the board that the individual uses similar techniques as appraisers to value properties and effectively utilize the appraisal process.

(iii) The following activities, if performed in accordance with USPAP Standards Rules 4 and 5, may be used to satisfy up to 50% of the experience required for certification:

(A) appraisal analysis;

(B) real estate counseling or consulting services; and

(C) feasibility analysis/study.

(iv) Except as provided in this Subsection (6)(e)(i), no more than 50% of the total experience required for certification may be earned through any combination of experience described in this Subsection (6)(b)-(d).

(e) Government agency experience.

(i) An individual who obtains experience hours in conjunction with investigation by a government agency is not subject to the hour limitations of this Subsection (6).

(ii) In addition to submitting proof of required experience, an applicant whose experience is earned primarily in conjunction with investigations by government agencies and through review of appraisals, with no opinion of value developed, shall submit proof of having complied with USPAP Standards 1 and 2 in performing appraisals as follows:

(A) if applying for state-licensed appraiser with experience reviewing residential appraisals, five appraisals of one-unit dwellings;

(B) if applying for state-certified residential appraiser with experience reviewing residential appraisals, eight appraisals of one-unit dwellings; and

(C) if applying for state-certified general appraiser with experience reviewing appraisals of property types listed in Appendix 2, at least eight appraisals of property types identified in Appendix 2.

(7) The board, at its discretion, may request the division to verify the claimed experience by any of the following methods:

(a) verification with the clients;

(b) submission of selected reports to the board; and

(c) field inspection of reports identified by the applicant at the applicant's office during normal business hours.

 

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R162-2g-306a. Renewal and Reinstatement of a Registration, License, or Certification.

(1)(a) A registration, license, or certification is valid for two years and expires unless it is renewed according to this Subsection R162-2g-306a before the expiration date printed on the registration, license, or certificate.

(b) It shall be grounds for disciplinary sanction if, after an individual's registration, license, or certification has expired, the individual continues to perform work for which the individual is required to be registered, licensed, or certified.

(2) To timely renew a registration, license, or certification, an applicant shall, prior to the expiration date of the registration, license, or certification, submit to the division:

(a) a completed renewal application as provided by the division;

(b) proof of completion of the following continuing education taken during the preceding two years:

(i)(A) the 7-hour National USPAP Update Course, taught by an instructor or instructors, at least one of whom is a state-certified residential or state-certified general appraiser and has been certified by the AQB; or

(B) equivalent education, as determined through the course approval program of the AQB; and

(ii)(A) 21 additional hours of continuing education:

(I) certified by the division for the appraisal industry at the time the courses are taught; or

(II) not required to be certified, pursuant to Subsection R162-2g-307c(3); or

(B) if the renewal applicant is also working toward certification, 21 hours of pre-licensing education credit applicable to the certification being sought; and

(c) the applicable nonrefundable renewal fee.

(3)(a) In order to renew on time, an applicant shall complete continuing education hours by the 15th day of the month in which the registration, license, or certification expires.

(b) An applicant who complies with this Subsection (3)(a), but whose credits are not banked by the education provider pursuant to Subsection R162-2g-502a(5)(c), may obtain credit for the course(s) taken by:

(i) submitting to the division the original course completion certificates; and

(ii) filing a complaint against the provider.

(4) A license, certification, or registration may be renewed for a period of 30 days after the expiration date upon payment of a late fee in addition to the requirements of this Subsection (2).

(5)(a) After the 30-day period described in this Subsection (4) and until six months after the expiration date, an individual may reinstate an expired license, certification, or registration by:

(i) complying with this Subsection (2);

(ii) paying a late fee; and

(iii) paying a reinstatement fee.

(b) After the six-month period described in this Subsection (5)(a) and until one year after the expiration date, an individual may reinstate an expired license, certification, or registration by:

(i) complying with this Subsection (2);

(ii) paying a late fee;

(iii) paying a reinstatement fee; and

(iv) completing 24 hours of additional continuing education as approved by the division.

(c)(i) An individual who does not reinstate an expired license, certification, or registration within 12 months of the expiration date shall:

(A) reapply with the division as a new applicant;

(B) retake and pass the 15-hour USPAP course; and

(C) retake and pass any applicable licensing or certification examination.

(ii) An individual reapplying under this Subsection (4)(c)(i) shall receive credit for previously credited pre-licensing education if:

(A) it was completed within the five-year period prior to the date of reapplication; and

(B) it was either:

(I) completed after January 1, 2008; or

(II) certified by the division and the AQB prior to January 1, 2008, as approved, qualified pre-licensing education.

(6) If the division receives renewal documents in a timely manner, but the information is incomplete, the appraiser or trainee may be extended a 15-day grace period to complete the application.

(7) Renewal while on active military service.

(a) An appraiser or trainee who is unable to renew a registration, license, or certification because active military service has prevented the completion of the appraiser's or trainee's required continuing education may:

(i) submit a timely application for renewal that is complete, except for proof of continuing education; and

(ii) request that the application for renewal be held in suspense pending the completion of the continuing education requirement.

(b) The appraiser or trainee shall have 120 days after completion of active military service to complete the continuing education required for the renewal and submit proof of the continuing education to the division.

(c) An individual may not act as an appraiser or trainee in Utah:

(i) after the expiration of the registration, license, or certification; or

(ii) while the individual's application for renewal is held in suspense by the division pending the completion of military service and the completion of the continuing education required for renewal.

 

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R162-2g-307c. Continuing Education Course Certification.

(1) The division and the board may not award continuing education credit for a course that is taught in Utah to registered, licensed, or certified appraisers unless the course is certified prior to its being taught.

[(1)](2) To certify a continuing education course, an applicant shall, at least 30 days prior to the course being taught, submit a completed application as required by the division, including:

(a) name and contact information of the course sponsor and the entity through which the course will be provided;

(b) description of the physical facility where the course will be taught;

(c) the proposed number of credit hours for the course;

(d) identification of whether the method of instruction will be traditional education or distance education;

(e) title of the course;

(f) statement defining how the course will meet the objectives of continuing education by increasing the licensee's knowledge, professionalism, and ability to protect and serve the public;

(g) course outline including:

(i) a description of the subject matter covered in each 15-minute segment; and

(ii) a minimum of one learning objective for every hour of class time;

(h) the name and certification number of each certified instructor who will teach the course;

(i) copies of all materials that will be distributed to the participants;

(j) the procedure for pre-registration;

(k) the tuition or registration fee and a copy of the cancellation and refund policy;

(l) except for courses approved for distance education, the procedure for taking and maintaining control of attendance during class time;

(m) sample of the completion certificate;

(n) signed statement agreeing that the course provider will, within 10 business days of completing the class, upload to the division the following information:

(i) course name;

(ii) course certificate number assigned by the division;

(iii) date the course was taught;

(iv) number of credit hours; and

(v) names and license numbers of all students receiving continuing education credit;

(o) signed statement agreeing not to market personal sales products; and

(p) other information the division might require.

(2) Standards for approval.

(a)(i) A distance education course shall:

(A) provide interaction between the student and instructor; and

(B) include a written examination that requires a student to demonstrate mastery and fluency[; and

(C) meet the requirements established by the AQB].

(ii) The division may approve a distance education course offered by a college or university if the college or university:

(A) offers distance education programs in other disciplines; and

(B)(I) is accredited by the Commission on Colleges or a regional accreditation association; or

(II) is approved by the International Distance Education Certification Center.

(b) The course topic must be AQB-approved.

(c) The procedure for taking and maintaining control of attendance shall be more extensive than having the students sign a class roll.

(d) The completion certificate shall allow for entry of:

(i) licensee's name;

(ii) type of license;

(iii) license number;

(iv) date of course;

(v) name of the course provider;

(vi) course title;

(viii) course certification number and expiration date;

(ix) credit hours awarded; and

(x) signatures of the course sponsor and the licensee.

(e) A real estate appraisal-related field trip that is submitted for continuing education credit may not include transit time to or from the field trip location as part of the credit hours awarded.

[(3)](4) Non-certified continuing education credit. [The]Except as provided in Subsection R162-2f-307c(1), the board may award continuing education credit on a case-by-case basis for the following:

(a) participation, other than as a student, in an appraisal practicum course;

(b) teaching, program development, authorship of textbooks, or similar activities that are determined by the board to be equivalent to obtaining continuing education, up to one-half of an individual's continuing education credit requirement;

(c) service as a member of the experience review committee, or the technical advisory panel, if approved by the board and offered in accordance with AQB standards as a:

(i) practicum course under this Subsection (3)(a); or

(ii) course under this Subsection (3)(b); and

(d) completion of any course that:

(i) meets the continuing education objectives of increasing the licensee's knowledge, professionalism, and ability to protect and serve the public; and

(ii) is taught outside the state of Utah[; and

(iii) is not marketed to appraisers or appraiser trainees in Utah].

 

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R162-2g-307e. Instructor Certification for Continuing Education.

(1) A continuing education course that is required to be certified shall be taught by a certified instructor.

(2) To obtain a continuing education instructor certification, and individual shall, at least 30 days prior to the date on which instruction is proposed to begin:

(a) evidence that the applicant meets the character and competency requirements outlined in Subsection R162-2g-302(2)-(3);

(b) submit a completed application form, as provided by the division;

(c) evidence:

(i) at least three years of full-time experience in the course subject;

(ii) college-level education related to the course subject; or

(iii) a combination of experience and education acceptable to the division;

(d) evidence:

(i) at least 12 months of full-time teaching experience;

(ii) part-time teaching experience equivalent to 12 months of full-time teaching experience; or

(iii) attendance at the division's Instructor Development Workshop;

(e) provide a signed statement agreeing to allow the instructor's courses to be randomly audited on an unannounced basis by the division or its representative;

(f) provide a signed statement agreeing not to market personal sales products;

(g) provide any other information the division requires; and

(h) pay a nonrefundable application fee.

(3) A continuing education instructor certification is valid for two years.

(4) To renew a continuing education instructor certification, an individual shall, prior to the date of expiration:

(a) submit a completed renewal application, as provided by the division;

(b)(i) evidence having taught a minimum of 12 continuing education credit hours during the past term of certification; or

(ii) provide a written explanation outlining the reason for not meeting the requirement having taught 12 continuing education credit hours and provide evidence satisfactory to the division that the applicant maintains an appropriate level of expertise; and

(c) pay a nonrefundable renewal fee.

(5)(a) To reinstate an expired continuing instructor certification within 30 days following the expiration date, an individual shall:

(i) comply with [this] Subsection (4); and

(ii) pay a nonrefundable late fee.

(b) To reinstate an expired continuing instructor certification after 30 days and within six months following the expiration date, an individual shall:

(i) comply with [this] Subsection (4); and

(ii) pay a nonrefundable reinstatement fee;

(c) After a continuing instructor certification has been expired for [three]six months, an individual is required to apply as an original applicant and obtain a new certification.

 

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R162-2g-504. Administrative Proceedings.

(1) Formal adjudicative proceedings. An adjudicative proceeding conducted subsequent to the issuance of a cease and desist order or other emergency order shall be conducted as a formal adjudicative proceeding.

(2) Informal adjudicative proceedings.

(a) An adjudicative proceeding as to any matter not specifically designated as requiring a formal adjudicative proceeding shall be conducted as an informal adjudicative proceeding.

(b) A hearing shall be held in an informal adjudicative proceeding only if required or permitted by the Utah Real Estate Appraiser Licensing and Certification Act or by these rules.

(3)(a) A hearing before the board will be held in:

(i) a proceeding conducted subsequent to the issuance of a cease and desist order or other emergency order;

(ii) a case where the division seeks to deny an application for original or renewed registration, licensure, or certification for failure of the applicant to meet the criteria of good moral character, honesty, integrity or truthfulness;

(iii) a case where the division seeks disciplinary action pursuant to Sections 61-2g-501 and 502 against a trainee or an appraiser; and

(iv) an appeal from an automatic revocation under Section 61-2g-302(2)(d), if the appellant requests a hearing.

(b) If properly requested by the applicant, a hearing will be held before the board to consider an application:

(i) that is denied by the division on the grounds that the instructor's attestation to upstanding moral character is false;

(ii) for an initial appraiser license or certification that is denied by the board on the recommendation of the experience review committee; and

(iii) for a temporary permit that is denied by the division for any reason.

(c) A hearing is not required and will not be held in the following informal adjudicative proceedings:

(i) the issuance, renewal, or reinstatement of a trainee registration or an appraiser license or certification by the division;

(ii) the issuance or renewal of an appraisal course, school, or instructor certification;

(iii) the issuance of any interpretation of statute, rule or order, or the issuance of any written opinion or declaratory order determining the applicability of a statute, rule or order, when enforcement or implementation of the statute, rule or order lies within the jurisdiction of the division; and

(iv) the denial of renewal or reinstatement of a trainee registration or an appraiser license or certification for failure to complete any continuing education required by statute or rule; and

(v) the denial of an application for an original or renewed school, instructor, or course certification on the ground that it does not comply with the requirements stated in these rules.

(4)(a) Request for agency action. The following applications shall be deemed a request for agency action:

(i) registration as an expert witness;

(ii) registration as a trainee;

(iii) licensure or certification as an appraiser;

(iv) certification of a course, school, or instructor; and

(v) issuance of a temporary permit.

(b) Any other request for agency action shall be in writing, signed by the requestor, and shall contain the following:

(i) the names and addresses of all persons to whom a copy of the request for agency action is being sent;

(ii) the agency's file number or other reference number, if known;

(iii) the date of mailing of the request for agency action;

(iv) a statement of the legal authority and jurisdiction under which the agency action is requested, if known;

(v) a statement of the relief or action sought from the division; and

(vi) a statement of the facts and reasons forming the basis for relief or agency action.

(c) A complaint against a trainee, an appraiser, or the holder of a temporary permit requesting that the division commence an investigation or a disciplinary action is not a request for agency action.

(5) Procedures for hearings in informal adjudicative proceedings.

(a) All informal adjudicative proceedings shall adhere to procedures as outlined in:

(i) Utah Administrative Procedures Act Title 63G, Chapter 4;

(ii) Utah Administrative Code Rule R151-4 et seq.; and

(iii) the rules promulgated by the division.

(b) Except as provided in this Subsection (6)(b), a party is not required to file a written answer to a notice of agency action from the division in an informal adjudicative proceeding.

(c) In any proceeding under this Subsection R162-2g-504, the board and division may at their discretion delegate a hearing to an administrative law judge or request that an administrative law judge assist the board and the division in conducting the hearing. Any delegation of a hearing to an administrative law judge shall be in writing.

(d)(i) Upon the scheduling of a hearing by the division and at least 30 days prior to the hearing, the division shall, by first class postage-prepaid delivery, mail written notice of the date, time, and place scheduled for the hearing, to the respondent at the address last provided to the division pursuant to Subsection R162-2g-306b.

(ii) The notice shall set forth the matters to be addressed in the hearing.

(e) Formal discovery is prohibited.

(f) The division may issue subpoenas or other orders to compel production of necessary evidence:

(i) on its own behalf; or

(ii) on behalf of a party where the party:

(A) makes a written request;

(B) assumes responsibility for effecting service of the subpoena; and

(C) bears the costs of the service, any witness fee, and any mileage to be paid to a witness.

(g) Upon ordering a licensee to appear for a hearing, the division shall provide to the licensee the information that the division will introduce at the hearing.

(h) Intervention is prohibited.

(i) Hearings shall be open to all parties unless the presiding officer closes the hearing pursuant to:

(i) Title 63G, Chapter 4, the Utah Administrative Procedures Act; or

(ii) Title 52, Chapter 4, the Open and Public Meetings Act.

(j) Upon filing a proper entry of appearance with the division pursuant to Utah Administrative Code Section R151-4-110(1)(a), an attorney may represent a party.

(6) Additional procedures for disciplinary proceedings.

(a) The division shall commence a disciplinary proceeding by filing and serving on the respondent:

(i) a notice of agency action;

(ii) a petition setting forth the allegations made by the division;

(iii) a witness list, if applicable; and

(iv) an exhibit list, if applicable.

(b) Answer.

(i) At the time the petition is filed, the presiding officer, upon a determination of good cause, may require the respondent to file an answer to the petition by so ordering in the notice of agency action.

(ii) The respondent may file an answer, even if not ordered to do so in the notice of agency action.

(iii) Any answer shall be filed with the division no later than 30 days following the mailing date of the notice of agency action pursuant to this Subsection (6)(a).

(c) Witness and exhibit lists.

(i) Where applicable, the division shall provide its witness and exhibit lists to the respondent at the time it mails its notice of agency action.

(ii) Any witness list shall contain:

(A) the name, address, and telephone number of each witness; and

(B) a summary of the testimony expected from the witness.

(iii) Any exhibit list:

(A) shall contain an identification of each document or other exhibit that the party intends to use at the hearing; and

(B) shall be accompanied by copies of the exhibits.

(d) Pre-hearing motions.

(i) Any pre-hearing motion permitted under the Administrative Procedures Act or the rules promulgated by the Department of Commerce shall be made in accordance with those rules.

(ii) The division director shall receive and rule upon any pre-hearing motions.

[Table]Appendix 1. Residential Experience Hours Schedule. The hours shown in the following schedule shall be awarded to form appraisals. Fifteen hours may be added to the hours shown if the appraisal is a narrative appraisal instead of a form appraisal.

 

[TABLE]APPENDIX 1

Property Type                              Hours that may be earned

(a) one-unit dwelling, above-grade:

  (i) living area less than 4,000 square

feet, including a site                         5 hours

  (ii) living area 4,000 square

feet or more, including a site                 7.5 hours

(b) multiple one-unit dwellings in

the same subdivision or condominium

project, which dwellings are substantially

similar:

  (i) 1-25 dwellings                           5 hours per dwelling, up

                                               to a maximum of 30 hours

  (ii) over 25 dwellings                       50 hours maximum

(c) two to four-unit dwelling                  20 hours

(d) employee relocation counsel reports

completed on currently accepted Employee

Relocation Counsel form                        10 hours

(e) residential lot, 1-4 unit                  5 hours

(f) multiple lots in the same subdivision,

which lots are substantially similar

  (i) 1-25 lots                                5 hours per lot, up to

                                               a maximum of 30 hours

  (ii) Over 25 lots                            50 hours maximum

(g) small parcel up to 5 acres                 5 hours

(h) vacant land, 20-500 acres                  20-40 hours, per

                                               board decision

(i) recreational, farm, or timber acreage

suitable for a house site:

  (i) up to 10 acres                           10 hours

  (ii) over 10 acres                           15 hours

(j) all other unusual structures or            5-35 hours, per

acreage which are much larger or more          board decision

complex than typical properties

(k) review of residential appraisals with no

opinion of value developed as part of the

review performed in conjunction with

investigations by government agencies          10-50 hours

  
[Table]Appendix 2. General Experience Hours Schedule. All appraisal
reports claimed for property types identified in sections (a)
through (k) of the following schedule shall be narrative appraisal
reports. Experience hours listed in this schedule may be increased
by 50% for unique and complex properties if the applicant notes the
number of extra hours claimed on the appraiser experience log
submitted by the applicant, and if the applicant maintains in the
workfile for the appraisal an explanation as to why the extra hours
are claimed.

 

[TABLE]APENDIX 2

Property Type                                  Hours that

                                               may be earned

(a) Apartment buildings:

  (i) 5-100 units                              40 hours

  (ii) over 100 units                          50 hours

(b) hotel or motels:

  (i) 50 units or fewer                        30 hours

  (ii) 51-150 units                            40 hours

  (iii) over 150 units                         50 hours

(c) nursing home, rest home, care facilities:

  (i) fewer than 80 beds                       40 hours

  (ii) over 80 beds                            50 hours

(d) industrial or warehouse building:

  (i) smaller than 20,000 square feet          30 hours

  (ii) larger than 20,000 square feet, single

  tenant                                       40 hours

  (iii) larger than 20,000 square feet, multiple

  tenants                                      50 hours

(e) office buildings:

  (i) smaller than 10,000 square feet          30 hours

  (ii) larger than 10,000 square feet, single

  tenant                                       40 hours

  (iii) larger than 10,000 square feet, multiple

  tenants                                      50 hours

(f) entire condominium projects, using income

approach to value:

  (i) 5- to 30-unit project                    30 hours

  (ii) 31- or more-unit project                50 hours

(g) retail buildings:

  (i) smaller than 10,000 square feet          30 hours

  (ii) larger than 10,000 square feet, single

  tenant                                       40 hours

  (iii) larger than 10,000 square feet, multiple

  tenants                                      50 hours

(h) commercial, multi-unit, industrial,

or other nonresidential use acreage:

  (i) 1 to 99 acres                            20-40 hours

  (ii) 100 acres or more, income approach

  to value                                     50-60 hours

(i) all other unusual structures or assignments

  that are much larger or more complex than    5 to 100 hours per

  the properties described in (a) to (h)       board decision

  herein.

(j)entire subdivisions or planned unit

developments (PUDs):

  (i) 1- to 25-unit subdivision or PUD         30 hours

  (ii) over 25-unit subdivision or PUD         50 hours

(k) feasibility or market analysis             5 to 100 hours,

                                               each per board

                                               decision, up to a

                                               maximum of 500 hours

(l) farm and ranch appraisals:                 Form        Narrative

  (i) separate grazing privileges or permits   20 hours    25 hours

  (ii)  irrigated cropland, pasture

other than rangeland:

    (A) 1 to 10 acres                          10 hours    15 hours

    (B) 11-50 acres                            12.5 hours    20 hours

    (C) 51-200 acres                           15 hours      25 hours

    (D) 201-1000 acres                         25 hours      40 hours

    (E)  more than 1000 acres                  40 hours      50 hours

  (iii) dry farm:

    (A) 1 to 1000 acres                        15 hours      25 hours

    (B) more than 1000 acres                   20 hours      40 hours

(m) Improvements on properties other than

a rural residence, maximum 10 hours:

  (i) dwelling                                 5 hours       5 hours

  (ii) shed                                    2.5 hours     2.5 hours

(n)  cattle ranches

  (i) 0-200 head                               15 hours      20 hours

  (ii) 201-500 head                            25 hours      30 hours

  (iii) 501-1000 head                          30 hours      40 hours

  (iv) more than 1000 head                     40 hours      50 hours

(o) sheep ranches

  (i) 0-2000 head                              25 hours      30 hours

  (ii) more than 2000 head                     35 hours      45 hours

(p) dairy, including all improvements

except a dwelling

  (i) 1-100 head                               20 hours      25 hours

  (ii) 101-300 head                            25 hours      30 hours

  (iii) more than 300 head                     30 hours      35 hours

(q) orchards

  (i) 5-50 acres                               30 hours      40 hours

  (ii) more than 50 acres                      40 hours      50 hours

(r) rangeland/timber

  (i) 0-640 acres                              20 hours      25 hours

  (ii) more than 640 acres                     30 hours      35 hours

(s) poultry

  (i) 0-100,000 birds                          30 hours      40 hours

  (ii) more than 100,000 birds                 40 hours      50 hours

(t) mink

  (i) 0-5000 cages                             30 hours      35 hours

  (ii) more than 5000 cages                    40 hours      50 hours

(u) fish farm                                  40 hours      50 hours

(v) hog farm                                   40 hours      50 hours

(w) review of appendix 2 appraisals with

  no opinion of value developed as part

  of the review, performed in conjunction

  with investigations by government agencies   20-100 hours

 

[Table]Appendix 3. Mass Appraisal Experience Hours Schedule.

 

[TABLE]APPENDIX 3

Property Type                                  Hours that

                                               may be earned

(a) one-unit dwelling, above-grade living

  area less than 4,000 square feet:

  (i) exterior inspection, highest and best

  use analysis, data collection only           0.5 hours

  (ii) interior and exterior inspection,

  highest and best use analysis, data

  collection only                              1 hour

  (iii) inspection, highest and best use

  analysis, data collection, valuation analysis,

  conclusion, report                           3.75 hours

(b) one-unit dwelling, above-grade living area

  area 4,000 square feet or more:

  (i) exterior inspection, highest and best

  use analysis, data collection only           0.75 hours

  (ii) interior and exterior inspection,

  highest and best use analysis, data

  collection only                              1.5 hours

  (iii) inspection, highest and best use

  analysis, data collection, valuation analysis,

  conclusion, report                           5 hours

(c) two to four unit dwelling:

  (i) exterior inspection, highest and best

  use analysis, data collection only           1.5 hours

  (ii) interior and exterior inspection,

  highest and best use analysis, data

  collection only                              3 hours

  (iii) inspection, highest and best use

  analysis, data collection, valuation analysis,

  conclusion, report                           15 hours

(d) commercial and industrial buildings,

  depending on complexity:

  (i) exterior inspection, highest and best use

  analysis, data collection only               1-5 hours

  (ii) interior and exterior inspection,

  highest and best use analysis, data

  collection only                              2-10 hours

  (iii) inspection, highest and best use

  analysis, data collection, valuation analysis,

  conclusion, report                           3-37.5 hours

(e) agricultural and other improvements,

  depending on complexity:

  (i) exterior inspection, highest and best

  use analysis, data collection only           0.5-2.5 hours

  (ii) interior and exterior inspection,

  highest and best use analysis, data

  collection only                              1-5 hours

  (iii) inspection, highest and best use

  analysis, data collection, valuation analysis,

  conclusion, report                           3.75-20 hours

(f) vacant land, depending on complexity:

  (i) inspection, highest and best use

  analysis, data collection only               0.5-2.5 hours

  (ii) inspection, highest and best use

  analysis, data collection, valuation

  analysis, conclusion, report                 2.5-25 hours

  (iii) land segregation (division) analysis

  and processing, no field inspection          0.25 hours

  (iv)land segregation (division)
 analysis

  and processing, field inspection             0.5 hours

(g) data input and review for experience

  hours claimed under property types(a)

  through (f)                                  0.25 hours

(h) land valuation guideline:

  (i) 25 or fewer parcels                      10 hours

  (ii) 26 to 500 parcels                       30 hours

  (iii) over 500 parcels                       25 additional hours

                                               for each 500 parcels,

                                               up to a maximum of

                                               125 hours

(i) assessment/sales ratio study, data

  collection, verification, sample inspection,

  analysis, conclusion, and implementation:

  (i) base study of 100 reviewed sales         125 hours

  (ii) additional increments of 100 sales      25 additional hours for

                                               each 100 additional

                                               sales, up to a maximum

                                               of 375 hours

(j) multiple regression model,

  development and implementation:

  (i) fewer than 5,000 parcels                 100 hours

  (ii) additional increments of 500 parcels    5 additional hours for

                                               each additional 500

                                               parcels, up to a

                                               maximum of 375 hours

(k) depreciation study and analysis            100 hours

(l) reviews of "land value in use" in

  accordance with U.C.A. Section 59-2-505:

  (i)office review only                        0.25 hours

  (ii) field review                            0.5 hours

(m) natural resource properties,

  depending on complexity:

  (i) sand and gravel                          7.5-20 hours per site

  (ii) mine                                    7.5-110 hours

  (iii) oil and gas                            1.65-50 hours per site

(n) pipelines and gas distribution

  properties, depending on complexity          10-40 hours

(o) telephone and electrics properties,

  depending on complexity                      5-80 hours

(p) airline and railroad properties,

  depending on complexity                      10-80 hours

(q) appraisal review/audit, depending

  on complexity                                2.5-125 hours

(r) capitalization rate study                  80 hours

 

KEY: real estate appraisals, trainee registration, licensing and certification, enforcement

Date of Enactment or Last Substantive Amendment: 2011

Authorizing, and Implemented or Interpreted Law: 61-2g-201(2)(h); 61-2g-202(1); 61-2g-205(5)(c)

 

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