No. 36973 (Amendment): Rule R162-2g. Real Estate Appraiser Licensing and Certification Administrative Rules

(Amendment)

DAR File No.: 36973
Filed: 10/22/2012 08:35:49 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to remove sections that are no longer needed and to add clarity to existing rules regarding experience hours and administrative proceedings.

Summary of the rule or change:

Subsection R162-2g-302(7) is deleted. This section sets out deadlines and procedures for re-registering appraiser trainees who obtained their initial registrations prior to 01/01/2008. All deadlines have passed and the re-registration process is complete; this section is no longer needed. In Section R162-2g-304d, language is added to clarify that experience credit may be awarded only on the basis of appraisal report(s) where the applicant's contribution in completing the assignment is clearly and conspicuously disclosed. In Subsection R162-2g-504(4), language regarding registration of an expert witness is removed; due to statutory changes in the 2012 General Legislative Session, the Division is no longer processing such registrations. In Subsection R162-2g-504(5), language is added to clarify that the presiding officer in an adjudicative proceeding may require a respondent to provide a witness and exhibit list. Finally, a new section, R162-2g-601, is added to separate the appendices from the administrative procedures section.

State statutory or constitutional authorization for this rule:

• Subsection 61-2g-401(5)
• Subsection 61-2g-201(2)(h)

Anticipated cost or savings to:

the state budget:

This rule filing removes moot language and clarifies existing provisions. The state budget will not be affected.

local governments:

Local governments are not required to comply with or enforce the appraisal administrative rules. This filing will have no fiscal impact on local governments.

small businesses:

This rule filing is for clarification only. It does not impose any new requirements or procedures on small businesses. Therefore, no fiscal impact is anticipated.

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

This rule filing is for clarification only. It does not impose any new requirements or procedures on affected persons. Therefore, no fiscal impact is anticipated.

Compliance costs for affected persons:

This rule filing is for clarification only. To comply, an affected applicant will be required to properly document his or her contribution in completing an appraisal assignment in order to receive experience credit. An affected respondent in an administrative proceeding may be required to identify his or her witnesses and documentary evidence prior to hearing. No fiscal impact is anticipated.

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

As stated in the rule analysis, the proposed amendments clarify existing rules regarding experience hours and administrative procedures and remove provisions that are no longer necessary. No fiscal impact to businesses is anticipated from this filing.

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:

• Mike Palumbo at the above address, by phone at 801-530-6654, by FAX at , 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:

12/17/2012

This rule may become effective on:

12/24/2012

Authorized by:

Jonathan Stewart, Director

RULE TEXT

R162. Commerce, Real Estate.

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

R162-2g-302. Application for Trainee Registration.

(1) Registration required.

(a) An individual who intends to obtain a license to practice as a state-licensed appraiser shall first register with the division as a trainee.

(b) The division and the board shall not award or recognize experience hours toward licensure for any appraisal work that is performed by an individual during a period of time when the individual is not registered as a trainee.

(2) Character. An individual registering with the division as a trainee shall evidence honesty, integrity, and truthfulness.

(a) A trainee applicant shall be denied registration for:

(i) a felony that resulted in:

(A) a conviction occurring within five years of the date of application; or

(B) a jail or prison release date falling within five years of the date of application; or

(ii) a misdemeanor involving fraud, misrepresentation, theft, or dishonesty that resulted in:

(A) a conviction occurring within three years of the date of application; or

(B) a jail or prison release date falling within three years of the date of application.

(b) A trainee applicant may be denied registration upon consideration of the following:

(i) criminal convictions and pleas entered at any time prior to the date of application;

(ii) the circumstances that led to any criminal convictions or pleas under consideration;

(iii) past acts related to honesty or moral character, with particular consideration given to any such acts involving the appraisal business;

(iv) dishonest conduct that would be grounds under Utah law for sanctioning an existing licensee;

(v) civil judgments in lawsuits brought on grounds of fraud, misrepresentation, or deceit;

(vi) court findings of fraudulent or deceitful activity in civil lawsuits;

(vii) evidence of non-compliance with court orders or conditions of sentencing;

(viii) evidence of non-compliance with terms of a probation agreement, plea in abeyance, or diversion agreement; and

(ix) failure to pay taxes or child support obligations.

(3) Competency. An individual registering with the division as a trainee shall evidence competency. In evaluating an applicant for competency, the division and board may consider any evidence, including the following:

(a) civil judgments, with particular consideration given to any such judgments involving the appraisal business;

(b) failure to satisfy a civil judgment that has not been discharged in bankruptcy;

(c) the extent and quality of the applicant's training and education in appraisal;

(d) the extent of the applicant's knowledge of the Utah Real Estate Appraiser Licensing and Certification Act;

(e) evidence of disregard for licensing laws;

(f) evidence of drug or alcohol dependency; and

(g) the amount of time that has passed since any incident under consideration.

(4)(a) Pre-licensing education. Within the five-year period preceding the date of application, an applicant shall successfully complete 75 classroom hours:

(i) approved by the AQB; and

(ii)(A) certified by the division pursuant to Subsection R162-2g-307b(1)-(3); or

(B) not required to be certified by the division pursuant to Subsection R162-2g-307b(6).

(b) The 75 hours of required education shall include:

(i) 30 hours of appraisal principles;

(ii) 30 hours of appraisal procedures; and

(iii) the 15-hour National USPAP course, or its equivalent.

(c) The15-hour National USPAP Course or its equivalent may not be accepted by the division as qualifying education unless it is:

(i) taught by an instructor who:

(A) is a state-certified residential or state-certified general appraiser; and

(B) has been certified by the AQB; or

(ii) approved as a distance education course by the AQB and International Distance Education Certification Center.

(d) Examination. An applicant shall evidence having passed the final examination in all pre-licensing courses.

(5) Application to the division. An applicant shall submit the following to the division:

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

(b) course completion certificates for the 75 hours of pre-licensing education;

(c)(i) two fingerprint cards in a form acceptable to the division; or

(ii) evidence that the applicant's fingerprints have been successfully scanned at a testing center;

(d) all court documents related to any past criminal proceeding;

(e) complete documentation of any sanction taken against any license in any jurisdiction;

(f) a signed letter of waiver authorizing the division to:

(i) obtain the fingerprints of the applicant;

(ii) review past and present employment records;

(iii) review education records; and

(iv) conduct a criminal background check;

(g) the fee for the criminal background check;

(h) the name of the state-certified appraiser(s) with whom the trainee is affiliated;

(i) the name and business address of any appraisal entity or government agency with which the trainee is affiliated; and

(j) the nonrefundable application fee.

(6) Affiliation with certified appraiser(s). Applicants shall affiliate with at least one supervising certified appraiser and evidence that affiliation by:

(a) identifying each supervising certified appraiser on a form supplied by the division; and

(b) obtaining each supervising certified appraiser's signature on the application.

[(7) Re-registration of existing trainees.

(a) A trainee registration that was granted by the division prior to January 1, 2008 expired on January 1, 2011.

(b) A trainee registration that is not expired pursuant to this Subsection (7)(a), but that did not include a background check, shall expire unless the trainee re-registers with the division according to the following schedule:

(i) a trainee who registered during the 2008 calendar year shall re-register in 2011 by the anniversary of the trainee's registration date; and

(ii) a trainee who registered on or after January 1, 2009 shall re-register on the two-year anniversary of the registration date.

(c) To re-register, a trainee shall submit the following to the division:

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

(ii)(A) two fingerprint cards in a form acceptable to the division; or

(B) evidence that the applicant's fingerprints have been successfully scanned at a testing center;

(iii) all court documents related to any past criminal proceeding;

(iv) complete documentation of any sanction taken against any license in any jurisdiction;

(v) a signed letter of waiver authorizing the division to:

(A) obtain the fingerprints of the applicant;

(B) review past and present employment records;

(C) review education records; and

(D) conduct a criminal background check;

(vi) the fee for the criminal background check;

(vii) evidence of having completed:

(A) the pre-licensing education required by this Subsection (4); and

(B) 28 hours of continuing education or AQB qualifying education as required for renewal under Subsection R162-2g-306a(2)(b);

(viii) the name of the state-certified appraiser(s) with whom the trainee is affiliated;

(ix) the name and address of any appraisal entity or government agency with which the trainee is affiliated; and

(x) a nonrefundable application fee.

(d) A division hearing officer shall review the application of any trainee re-registering under this Subsection (7) who fails to meet the character and competency requirements of this Subsection (2) and (3). The hearing officer may:

(i) approve the application with the concurrence of the board;

(ii) approve the application subject to probation or restriction; or

(iii) refer the application to the board for decision.

]

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 for:

(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[.]; or

(vi) an appraisal that fails to clearly and conspicuously disclose the contribution made by the applicant in completing the assignment.

(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 residential appraisals:

(A) conforming to USPAP Standards 1 and 2; and

(B) including the following property types:

(I) vacant property;

(II) two- to four-unit dwelling;

(III) non-complex single-family unit; and

(IV) complex single-family unit; 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 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 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 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.

 

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)](i) registration as a trainee;

[(iii)](ii) licensure or certification as an appraiser;

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

[(v)](iv) 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.

(iv)(A) The presiding officer, upon a determination of good cause, may require a respondent to file a witness and exhibit list.

(B) Failure to comply with a requirement to file a witness and exhibit list may result in the exclusion of any witness or exhibit not disclosed.

(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.

 

R162-2g-601 Appendices.

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 1

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

 

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 2

APPENDIX 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 hrs   25 hrs

  (ii)  irrigated cropland, pasture

other than rangeland:

    (A) 1 to 10 acres                          10 hrs   15 hrs

    (B) 11-50 acres                            12.5 hrs 20 hrs

    (C) 51-200 acres                           15 hrs   25 hrs

    (D) 201-1000 acres                         25 hrs   40 hrs

    (E)  more than 1000 acres                  40 hrs   50 hrs

  (iii) dry farm:

    (A) 1 to 1000 acres                        15 hrs   25 hrs

    (B) more than 1000 acres                   20 hrs   40 hrs

(m) Improvements on properties other than

a rural residence, maximum 10 hours:

  (i) dwelling                                  5 hrs    5 hrs

  (ii) shed                                     2.5 hrs  2.5 hrs

(n)  cattle ranches

  (i) 0-200 head                               15 hrs   20 hrs

  (ii) 201-500 head                            25 hrs   30 hrs

  (iii) 501-1000 head                          30 hrs   40 hrs

  (iv) more than 1000 head                     40 hrs   50 hrs

(o) sheep ranches

  (i) 0-2000 head                              25 hrs   30 hrs

  (ii) more than 2000 head                     35 hrs   45 hrs

(p) dairy, including all improvements

except a dwelling

  (i) 1-100 head                               20 hrs   25 hrs

  (ii) 101-300 head                            25 hrs   30 hrs

  (iii) more than 300 head                     30 hrs   35 hrs

(q) orchards

  (i) 5-50 acres                               30 hrs   40 hrs

  (ii) more than 50 acres                      40 hrs   50 hrs

(r) rangeland/timber

  (i) 0-640 acres                              20 hrs   25 hrs

  (ii) more than 640 acres                     30 hrs   35 hrs

(s) poultry

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

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

(t) mink

  (i) 0-5000 cages                             30 hrs   35 hrs

  (ii) more than 5000 cages                    40 hrs   50 hrs

(u) fish farm                                  40 hrs   50 hrs

(v) hog farm                                   40 hrs   50 hrs

(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

 

Appendix 3. Mass Appraisal Experience Hours Schedule.

 

TABLE 3

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]administrative procedures

Date of Enactment or Last Substantive Amendment: [November 1, 2011]2012

Authorizing, and Implemented or Interpreted Law: 61-2g-201(2)(h); 61-2g-202; 61-2g-205(5)(c); 61-2g-401(5)

 

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