No. 30199 (Amendment): R162-102-1. Application

DAR File No.: 30199
Filed: 07/17/2007, 09:12
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Appraiser candidates are currently allowed to follow a "segmented approach" in obtaining approval of their education or experience, which means that they can submit either component for approval independent of the other component. The segmented approach could erode public protection by allowing a person's education or experience to become outdated before the person completes the licensing or certification process and starts practicing the profession.

Summary of the rule or change:

Beginning on January 1, 2008, appraiser candidates will be required to obtain approval of their education and experience credits at the same time. Those who obtained approval of either the education component or the experience component, but not both, prior to January 1, 2008, will have three years to obtain approval of the other component.

State statutory or constitutional authorization for this rule:

Subsections 61-2b-6(1)(l) and 61-2b-8(1)(a)

Anticipated cost or savings to:

the state budget:

There will be no added cost to the state budget. There should be a savings to the Division of Real Estate because it will not have to approve education and experience separately at two different times and keep track of the fact that one of the components has been approved. It is not possible to calculate what the savings would be for a number of reasons, among them, the fact that it is unknown how many applicants might choose a segmented approval process instead of submitting both the education and the experience components at once if the choice is available to them.

local governments:

Local governments do have appraisers and appraisal trainees on staff. This rule change could impact local governments because an appraiser candidate would have to obtain approval of education and experience at the same time, but it is unknown what, if any, financial impact this change in the appraiser application process would have on those local government entities who employ appraisers. It is not anticipated that this rule change would save local governments any money. If it results in any increased cost to local government, that potential impact would be lessened by the fact that the Division is providing considerable lead time (until January 1, 2011) before approval of a component would lapse if the applicant did not obtain approval of the other component.

small businesses and persons other than businesses:

Many appraisal firms in Utah are small businesses. While this rule change would have no impact on other small businesses, there could be an impact on appraisal firms in that appraisal trainees who want to become licensed and those licensed appraisers who want to become certified would have to pursue licensure and certification more actively instead of obtaining approval of either their education or experience and then allowing many years to go by before completing their licensing or certification process. It is impossible to estimate how many persons would be affected and what, if anything, the cost would be of requiring a person who starts the licensing or certification process by submitting either the education or experience component to complete the process in a more timely fashion.

Compliance costs for affected persons:

The only persons potentially affected by this rule change are candidates for appraisal licensure or certification. Although requiring appraiser candidates to complete the licensing or certification process more quickly after they start the process might potentially cost appraiser candidates in an amount that the Division does not know how to quantify, the Division and the Utah Appraiser Board believe that public protection will be enhanced if a person's education and experience are not allowed to become stale before they start practicing the profession.

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

It is not clear what fiscal impact to businesses, if any, might result from this rule filing which requires applicants to submit education and experience documentation at the same time. Current applicants who have already submitted their education or experience documentation will have a period of three years from the effective date of the rule filing to complete the remaining component. Thus, any fiscal impact to the industry should be minimal. 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:

Shelley Wismer at the above address, by phone at 801-366-0145, by FAX at 801-366-0315, 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:

09/14/2007

This rule may become effective on:

09/22/2007

Authorized by:

Derek Miller, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-102. Application Procedures.

R162-102-1. Application.

102.1.1 Initial Review - An applicant for licensure or certification as an appraiser will be required to submit, on forms provided by the Division, documentation indicating successful completion of the education and experience required by the [s]State of Utah. Until January 1, 2008, an applicant may submit education documentation and experience documentation to the Division for approval separately. Effective January 1, 2008, an applicant shall submit education documentation and experience documentation to the Division at the same time.

102.1.1.1 [The application]Education documentation may be reviewed by an Appraiser Education Review Committee appointed by the Real Estate Appraiser Licensing and Certification Board to determine if the education requirement has been met.

102.1.1.1.1 As a prerequisite to sitting for either the licensing examination or the certification examination, the applicant shall submit proof of successful completion of the 15-hour National USPAP Course or its equivalent from 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 Appraiser Qualifications Board (AQB) of the Appraisal Foundation. Equivalency to the 15-hour National USPAP Course will be determined through the Course Approval Program of the Appraiser Qualifications Board (AQB) of the Appraisal Foundation.

102.1.1.2 The [candidate will]applicant shall provide evidence of meeting the experience requirement by completing the form required by the Division.

102.1.1.3 The candidate [will]shall submit the appropriate license or certification fee at the time of submission to the Division of either the education [and]or experience documentation forms.

102.1.1.4 If an applicant has submitted education or experience documentation to the Division prior to January 1, 2008 and has obtained approval of only the education component or only the experience component required for licensure or certification, the applicant must submit proper documentation of the remaining component to the Division prior to January 1, 2011 or any approval of a component shall lapse.

102.1.2 Exam Application

102.1.2.1 Upon determining the candidate has completed the education and experience requirements, the Division will issue to the candidate a form permitting the candidate to register to sit for the examination. The permission to register to sit for the examination shall be valid for twenty-four months after issuance[, or twenty-four months after May 17, 2005, whichever is longer].

[102.1.2.1.1 As a prerequisite to sitting for the licensing/certification examination, the applicant will be required to submit proof of successful completion of the 15-hour National USPAP Course or its equivalent from 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 Appraiser Qualifications Board (AQB) of the Appraisal Foundation. Equivalency to the 15-hour National USPAP Course will be determined through the Course Approval Program of the Appraiser Qualifications Board (AQB) of the Appraisal Foundation.

]102.1.2.2 The candidate [will]shall make application to take the examination by returning the application form and the appropriate testing fee to the testing service designated by the Division. If the applicant fails to take the examination, the fee will be forfeited.

102.1.3 Final Application

102.1.3.1 Within 90 days after successful completion of the exam, the appraiser applicant must return to the Division each of the following:

102.1.3.1.1 A report from the testing service indicating successful completion of the exam.

102.1.3.1.2 The [license ]application form required by the Division. The application form shall include the applicant's business and home addresses. A post office box without a street address is unacceptable as a business or home address. The applicant may designate either address to be used as a mailing address.

102.1.3.1.3 The fee for the federal registry if the applicant is applying for certification.

 

KEY: real estate appraisals, licensing

Date of Enactment or Last Substantive Amendment: [May 29], 2007

Notice of Continuation: February 15, 2007

Authorizing, and Implemented or Interpreted Law: 61-2b-6(1)(l)