Summary of the Perfected Version of the Bill


HCS HB 1988 -- REAL ESTATE APPRAISERS AND APPRAISAL MANAGEMENT

COMPANIES (Brandom)


COMMITTEE OF ORIGIN: Committee on Professional Registration and

Licensing


This substitute changes the laws regarding real estate appraisers

and appraisal management companies. In its main provisions, the

substitute:


(1) Renames the Missouri Certified and Licensed Real Estate

Appraisers Act the Missouri Certified and Licensed Real Estate

Appraisers and Appraisal Management Company Regulation Act;


(2) Prohibits a person from engaging in the business as an

appraisal management company, engaging to perform appraisal

management services, or holding himself or herself out as being

an appraisal management company without first obtaining a

registration issued by the Missouri Real Estate Appraisers

Commission within the Department of Insurance, Financial

Institutions and Professional Registration;


(3) Creates the classifications of licensure for appraiser

trainees of state-certified general appraiser trainee, state-certified residential appraiser trainee, and state-licensed

appraiser trainee. The commission is required to adopt rules and

procedures for the issuing and regulating of appraiser trainee

licenses;


(4) Requires state-certified and state-licensed trainees to

comply with the Uniform Standards of Professional Appraisal

Practice established by the Appraisal Standards Board of the

Appraisal Foundation;


(5) Requires the commission to maintain a registry of the names

and addresses of appraisal management companies and to establish

by rule the requirements for obtaining a license as an appraisal

management company;


(6) Renames the Missouri Real Estate Appraisers Fund to the

Missouri Real Estate Appraisers and Appraisal Management Company

Fund;


(7) Exempts an appraisal management company from specified

licensing and examination requirements;


(8) Removes the provision requiring the signature of the

chairman of the commission and a certificate or assigned license

number to be on each certificate or license;


(9) Requires each appraisal management company to disclose its

license number on every engagement letter utilized in assigning

an appraisal request for assignments within the state;


(10) Exempts an appraisal management company from the

requirement that a certificate or license can only be issued to a

natural person;


(11) Requires an appraisal management company to notify the

commission within 30 days of any change in its controlling

person, agent of record, ownership composition, or address;


(12) Authorizes the commission to cause complaints to be filed

with the Administrative Hearing Commission against a state-licensed appraisal management company that is a legal entity

other than a natural person;


(13) Requires all appraisal management company records to be

retained for five years and made promptly available to the

commission for inspection and copying;


(14) Specifies that it will be a class B misdemeanor for any

company or controlling person to practice any deception or fraud

in its identity in connection with an application or holding out

to the public or representation as a licensed appraisal

management company when it is not;


(15) Requires the commission to take all action necessary to be

able to issue licenses to qualified applicants seeking a license

as an appraisal management company; and


(16) Repeals Sections 339.1100 to 339.1240, RSMo, regarding the

Missouri Appraisal Management Company Registration and Regulation

Act.


FISCAL NOTE: No impact on state funds in FY 2013, FY 2014, and

FY 2015.


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