AN ACT Relating to real estate appraisers;
amending RCW 18.140.005, 18.140.010, 18.140.020, 18.140.030, 18.140.040,
18.140.060, 18.140.070, 18.140.080, 18.140.090, 18.140.100, 18.140.110,
18.140.120, 18.140.130, 18.140.140, 18.140.150, 18.140.160, 18.140.170,
18.140.180, 18.140.190, and 18.140.900; adding new sections to chapter 18.140
RCW; creating a new section; and repealing RCW 18.140.911.
BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1.
RCW 18.140.005 and 1989 c 414 s 1 are each amended to read as follows:
It is the intent of the legislature that only
individuals who meet and maintain minimum standards of competence and conduct
may provide certified or licensed appraisal services to the public.
Sec. 2.
RCW 18.140.010 and 1989 c 414 s 3 are each amended to read as follows:
As used in this chapter, the following terms
have the meanings indicated unless the context clearly requires otherwise.
(1) "Appraisal" or "real estate appraisal"
means an analysis, opinion, or conclusion relating to the nature, quality,
value, or utility of specified interests in, or aspects of, identified real
estate, for or in expectation of compensation. An appraisal may be classified
by subject matter into either a valuation or an analysis. A
"valuation" is an estimate of the value of real estate or real
property. An "analysis" is a study of real estate or real property
other than estimating value.
(2) "Appraisal report" means any
communication, written or oral, of an appraisal, except that all appraisal
reports in federally related transactions are required to be written reports.
(3) "Appraisal assignment" means an
engagement for which an appraiser is employed or retained to act, or would be
perceived by third parties or the public as acting, as a disinterested third
party in rendering an unbiased analysis, opinion, or conclusion relating to the
nature, quality, value, or utility of specified interests in, or aspects of,
identified real estate. The term "appraisal assignment" may apply to
valuation work and analysis work.
(4) (("Board" means the certified
real estate appraiser certification board.
(5)))
"Certified appraisal" means an appraisal prepared or signed by a
state-certified real estate appraiser. A certified appraisal represents to the
public that it meets the appraisal standards defined in this chapter.
(5) "Committee" means the real
estate appraiser advisory committee of the state of Washington.
(6) "Department" means the department
of licensing.
(7) "Director" means the director of
the department of licensing.
(8) "Licensed appraisal" means an
appraisal prepared or signed by a state-licensed real estate appraiser. A
licensed appraisal represents to the public that it meets the appraisal
standards defined in this chapter.
(9) "Real estate" means an
identified parcel or tract of land, including improvements, if any.
(((9))) (10) "Real
property" means one or more defined interests, benefits, or rights
inherent in the ownership of real estate.
(((10))) (11) "Specialized
appraisal services" means all appraisal services which do not fall within
the definition of appraisal assignment. The term "specialized appraisal
service" may apply to valuation work and to analysis work. Regardless of
the intention of the client or employer, if the appraiser would be perceived by
third parties or the public as acting as a disinterested third party in
rendering an unbiased analysis, opinion, or conclusion, the work is classified
as an appraisal assignment and not a specialized appraisal service.
(((11))) (12) "State-certified
general real estate appraiser" means a person certified by the director to
develop and communicate real estate appraisals of all types of property. A
state-certified general real estate appraiser may designate or identify an
appraisal rendered by him or her as a "certified appraisal."
(13) "State-certified residential
real estate appraiser" means a person ((who)) certified by the
director to develop((s)) and communicate((s)) real estate
appraisals ((and who holds a valid certificate issued to him or her for either
general or residential real estate under this chapter)) of all types of
residential property of one to four units without regard to transaction value
or complexity and nonresidential property having a transaction value as
specified in rules adopted by the director. A ((state-certificated))
state certified residential real estate appraiser may designate or
identify an appraisal rendered by him or her as a "certified appraisal."
((and indicate which type of certification is held.))
(14) "State-licensed real estate
appraiser" means a person licensed by the director to develop and
communicate real estate appraisals of noncomplex one to four residential units
and complex one to four residential units and nonresidential property having
transaction values as specified in rules adopted by the director.
Sec. 3.
RCW 18.140.020 and 1989 c 414 s 4 are each amended to read as follows:
(1) No person, other ((that [than])) than
a state-certified or state-licensed real estate appraiser, may assume or
use that title or any title, designation, or abbreviation likely to create the
impression of certification or licensure as a real estate appraiser by
this state. A person who is not certified or licensed under this
chapter shall not describe or refer to any appraisal ((or)) of
real estate located in this state by the term "certified" or
"licensed."
(2) This section does not preclude a person who
is not certified or licensed as a state-certified or state-licensed
real estate appraiser from appraising real estate in this state for
compensation, except in federally related transactions requiring licensure
or certification to perform appraisal services.
Sec. 4.
RCW 18.140.030 and 1989 c 414 s 7 are each amended to read as follows:
The director shall have the following powers
and duties:
(1) To adopt rules in accordance with chapter
34.05 RCW necessary to implement this chapter;
(2) To receive and approve or deny
applications for certification or licensure as a state-certified or
state-licensed real estate appraiser under this chapter; to establish
appropriate administrative procedures for the processing of such applications;
to issue certificates or licenses to qualified applicants pursuant to
the provisions of this chapter; and to maintain a register of the names and
addresses of individuals who are currently certified or licensed under
this chapter;
(3) To establish, provide administrative
assistance ((to)), and appoint the members for the real estate
appraiser ((certification board)) advisory committee to enable
the ((board)) committee to ((carry out its responsibilities
under this chapter)) act in an advisory capacity to the director;
(4) To solicit bids and enter into contracts
with educational testing services or organizations for the preparation of
questions and answers for certification or licensure examinations;
(5) To administer or contract for
administration of certification or licensure examinations at locations
and times as may be required to carry out the responsibilities under this
chapter;
(6) To enter into contracts for professional
services determined to be necessary for adequate enforcement of this chapter;
(7) To consider recommendations by the
real estate appraiser ((certification board)) advisory committee
relating to the experience, education, and examination requirements for each
classification of state-certified appraiser and for licensure;
(((7))) (8) To impose continuing
education requirements as a prerequisite to renewal of certification or
licensure;
(((8))) (9) To consider
recommendations by the real estate appraiser ((certification board)) advisory
committee relating to standards of professional appraisal practice in the
enforcement of this chapter;
(((9) To issue an annual statement
describing the receipts and expenditures in the administration of this chapter
during each fiscal year;))
(10) To investigate all complaints or
reports of unprofessional conduct as defined in this chapter and to hold
hearings as provided in this chapter;
(11) To establish appropriate
administrative procedures for disciplinary proceedings conducted pursuant to
the provisions of this chapter;
(((11))) (12) To compel the
attendance of witnesses and production of books, documents, records, and other
papers; to administer oaths; and to take testimony and receive evidence
concerning all matters within their jurisdiction. These powers may be
exercised directly by the director or the director's authorized representatives
acting by authority of law;
(((12))) (13) To take emergency
action ordering summary suspension of a license or certification pending
proceedings by the director;
(14) To employ such professional,
clerical, and technical assistance as may be necessary to properly administer
the work of the director;
(((13))) (15) To establish forms
necessary to administer this chapter; ((and
(14))) (16)
To adopt standards of professional conduct or practice; and
(17) To do all other things necessary to
carry out the provisions of this chapter and minimally meet the requirements of
federal guidelines regarding state certification or licensure of
appraisers that the director determines are appropriate for state-certified and
state-licensed appraisers in this state.
Sec. 5.
RCW 18.140.040 and 1989 c 414 s 8 are each amended to read as follows:
The director((, members of the board,))
or individuals acting on ((their)) behalf of the director are
immune from suit in any action, civil or criminal, based on any acts performed
in the course of their duties except for their intentional or willful
misconduct.
Sec. 6.
RCW 18.140.060 and 1989 c 414 s 10 are each amended to read as follows:
(1) Applications for examinations, original
certification or licensure, and renewal certification or licensure
shall be made in writing to the department on forms approved by the director.
Applications for original and renewal certification or licensure shall
include a statement confirming that the applicant shall comply with applicable
rules and regulations and that the applicant understands the penalties for
misconduct.
(2) The appropriate fees shall accompany all
applications for examination, reexamination, original certification or
licensure, and renewal certification or licensure.
Sec. 7.
RCW 18.140.070 and 1989 c 414 s 11 are each amended to read as follows:
There shall be one category of
state-licensed real estate appraisers and two categories of state-certified
real estate appraisers as follows:
(1) The ((state-certified residential)) state-licensed
real estate appraiser ((classification shall consist of those persons
meeting the requirements for appraisal of residential real property of one to
four units.));
(2) The state-certified ((general)) residential
real estate appraiser ((classification shall consist of those persons
meeting the requirements for certification relating to the appraisal of all
types of real property));
(3) The state-certified general real estate
appraiser.
Sec. 8.
RCW 18.140.080 and 1989 c 414 s 12 are each amended to read as follows:
(((1))) As a prerequisite to taking ((the))
an examination for certification ((as a state-certified general real
estate appraiser)) or licensure, an applicant shall present evidence
satisfactory to the director that he or she has successfully completed the
education requirements adopted by the director.
(((2) As a prerequisite to taking the
examination for certification as a state-certified residential real estate
appraiser, an applicant shall present evidence satisfactory to the director
that he or she has successfully completed the education requirements adopted by
the director.
(3) The education requirements of subsections
(1) and (2) of this section may be waived by the director if the applicant
presents evidence to the satisfaction of the director that the applicant was
practicing as a real estate appraiser in the state of Washington on July 1,
1990.))
Sec. 9.
RCW 18.140.090 and 1989 c 414 s 13 are each amended to read as follows:
As a prerequisite to taking ((the)) an
examination for certification ((as a state-certified real estate appraiser))
or licensure, an applicant must meet the experience requirements adopted
by the director.
Sec. 10.
RCW 18.140.100 and 1989 c 414 s 14 are each amended to read as follows:
An original ((certification as a
state-certified real estate appraiser)) license or certificate shall
be issued to persons who have satisfactorily passed ((a)) the
written examination as endorsed by the Appraiser Qualifications Board of the
Appraisal Foundation and as adopted by the director.
Sec. 11.
RCW 18.140.110 and 1989 c 414 s 15 are each amended to read as follows:
Every applicant for licensing or
certification who is not a resident of this state shall submit, with the
application for licensing or certification, an irrevocable consent that
service of process upon him or her may be made by service on the director if,
in an action against the applicant in a court of this state arising out of the
applicant's activities as a state-licensed or state-certified real estate
appraiser, the plaintiff cannot, in the exercise of due diligence, obtain
personal service upon the applicant.
Sec. 12.
RCW 18.140.120 and 1989 c 414 s 16 are each amended to read as follows:
An applicant for licensure or
certification who is currently licensed or certified and in good
standing under the laws of another state may obtain a license or
certificate as a Washington state-licensed or state-certified real
estate appraiser without being required to satisfy the examination requirements
of this chapter if: The director determines that the licensure or
certification requirements are substantially similar to those found in
Washington state; and that the other state has a written reciprocal agreement
to provide similar treatment to holders of Washington state licenses and/or
certificates.
Sec. 13.
RCW 18.140.130 and 1989 c 414 s 17 are each amended to read as follows:
(1) Each original and renewal license or
certificate issued under this chapter shall ((be for a period of two
years)) expire on the applicant's second birthday following issuance of
the license or certificate.
(2) To be renewed as a state-licensed or
state-certified real estate appraiser, the holder of a valid license or
certificate shall apply and pay the prescribed fee to the director no earlier
than one hundred twenty days prior to the expiration date of the license or
certificate and shall demonstrate satisfaction of any continuing education
requirements.
(3) If a person fails to renew a license or
certificate prior to its expiration and no more than two years have passed
since the person last held a valid license or certificate, the person may
obtain a renewal license or certificate by satisfying all of the
requirements for renewal and paying late renewal fees.
The director shall cancel the license or
certificate of any person whose renewal fee is not received within two years
from the date of expiration. A person may obtain a new license or certificate
by satisfying the procedures and qualifications for initial licensure or
certification, including the successful completion of any applicable
examinations.
Sec. 14.
RCW 18.140.140 and 1989 c 414 s 18 are each amended to read as follows:
(1) A license or certificate issued
under this chapter shall bear the signature or facsimile signature of the
director and a license or certificate number assigned by the director.
(2) Each state-licensed or
state-certified real estate appraiser shall place his or her certificate number
adjacent to or immediately below the title "state-licensed real estate
appraiser," "state-certified residential real estate appraiser,"
or "state-certified general real estate appraiser" when used in an
appraisal report or in a contract or other instrument used by the licensee
or certificate holder in conducting real property appraisal activities.
Sec. 15.
RCW 18.140.150 and 1989 c 414 s 19 are each amended to read as follows:
(1) The term "state-licensed" or
"state-certified real estate appraiser" may only be used to refer to
individuals who hold the license or certificate and may not be used
following or immediately in connection with the name or signature of a firm,
partnership, corporation, or group, or in such manner that it might be
interpreted as referring to a firm, partnership, corporation, group, or anyone
other than an individual holder of the license or certificate.
(2) No license or certificate may be
issued under this chapter to a corporation, partnership, firm, or group. This
shall not be construed to prevent a state-licensed or state-certified appraiser
from signing an appraisal report on behalf of a corporation, partnership, firm,
or group practice.
NEW SECTION. Sec. 16. A
new section is added to chapter 18.140 RCW to read as follows:
(1) A real estate appraiser from another state
who is licensed or certified by another state may apply for registration to
receive temporary licensing or certification in Washington by paying a fee and
filing a notarized application with the department on a form provided by the
department.
(2) Licensing and certification privileges
granted under the provisions of this section shall expire ninety days from
issuance. Licensing or certification shall not be renewed, nor shall an
applicant receive more than two registrations within any twelve-month period.
(3) Persons granted temporary licensing or
certification privileges under this section shall not advertise or otherwise
hold themselves out as being licensed or certified by the state of Washington.
(4) Persons granted temporary licensure or
certification are subject to all provisions under this chapter.
Sec. 17.
RCW 18.140.160 and 1989 c 414 s 20 are each amended to read as follows:
An application for licensure or
certification ((or recertification)) may be denied((, and the
certification of any state-certified real estate appraiser may be revoked,
suspended,)). The director may impose any one or more of the following
sanctions against state-licensed or state-certified appraisers: Suspend,
revoke, or levy a fine not to exceed one thousand dollars for each offense and/or
otherwise ((disciplined)) discipline in accordance with the
provisions of this chapter, for any of the following acts or omissions:
(1) Failing to meet the minimum qualifications
for state licensure or certification established by or pursuant to this
chapter;
(2) Procuring or attempting to procure state licensure
or certification under this chapter by knowingly making a false statement,
knowingly submitting false information, or knowingly making a material
misrepresentation on any application filed with the director;
(3) Paying money other than the fees provided
for by this chapter to any employee of the director or the ((board)) committee
to procure state licensure or certification under this chapter;
(4) Obtaining a license or certification
through the mistake or inadvertence of the director;
(5) Conviction of any gross misdemeanor or
felony or the commission of any act involving moral turpitude, dishonesty, or
corruption whether or not the act constitutes a crime. If the act constitutes
a crime, conviction in a criminal proceeding is not a condition precedent to
disciplinary action. Upon such a conviction, however, the judgment and
sentence is conclusive evidence at the ensuing disciplinary hearing of the
guilt of the license or certificate holder or applicant of the crime described
in the indictment or information, and of the person's violation of the statute
on which it is based. For the purposes of this section, conviction includes
all instances in which a plea of guilty or nolo contendere is the basis for the
conviction and all proceedings in which the sentence has been deferred or
suspended. Nothing in this section abrogates rights guaranteed under chapter
9.96A RCW;
(6) Failure or refusal without good
cause to exercise reasonable diligence in developing an appraisal, preparing an
appraisal report, or communicating an appraisal;
(((5))) (7) Negligence or
incompetence in developing an appraisal, preparing an appraisal report, or
communicating an appraisal;
(((6))) (8) Continuing to act as
a state-licensed or state-certified real estate appraiser when his or
her license or certificate is on an expired status;
(((7))) (9) Failing, upon demand,
to disclose any information within his or her knowledge to, or to produce any
document, book, or record in his or her possession for inspection of the
director or the director's authorized representatives acting by authority of
law; ((and
(8))) (10)
Violating any provision of this chapter or any lawful rule or regulation made
by the director pursuant thereto;
(11) Advertising in a false, fraudulent, or
misleading manner;
(12) Suspension, revocation, or restriction
of the individual's license or certification to practice the profession by
competent authority in any state, federal, or foreign jurisdiction, with a
certified copy of the order, stipulation, or agreement being conclusive
evidence of the revocation, suspension, or restriction;
(13) Failing to comply with an order issued
by the director;
(14) Committing any act of fraudulent or
dishonest dealing or a crime involving moral turpitude, with a certified copy
of the final holding of any court of competent jurisdiction in such matter
being conclusive evidence in any hearing under this chapter; and
(15) Issuing an appraisal report on any real
property in which the appraiser has an interest unless his or her interest is
clearly stated in the appraisal report.
Sec. 18.
RCW 18.140.170 and 1989 c 414 s 21 are each amended to read as follows:
The director may investigate the actions of a state-licensed
or state-certified real estate appraiser or an applicant for licensure
or certification or relicensure or recertification. Upon receipt of
information indicating that a state-licensed or state-certified real
estate appraiser under this chapter may have violated this chapter, the
director shall cause one or more of the staff investigators to make an
investigation of the facts to determine whether or not there is admissible
evidence of any such violation. If technical assistance is required, a staff
investigator may consult with ((not)) one or more ((than one))
of the ((appraiser)) members of the ((board. If an appraiser member
of the board is consulted and renders assistance in an investigation, the
appraiser member is excused from service on the board in connection with any
administrative hearing that may result from such investigation)) committee.
In any investigation made by the director's
investigative staff, the director shall have the power to compel the attendance
of witnesses and the production of books, documents, records, and other papers,
to administer oaths, and to take testimony and receive evidence concerning all
matters within the director's jurisdiction.
If the director determines, upon investigation,
that a state-licensed or state-certified real estate appraiser under
this chapter has violated this chapter, a statement of charges shall be
prepared and served upon the state-licensed or state-certified real
estate appraiser. This statement of charges shall require the accused party to
file an answer to the statement of charges within twenty days of the date of
service.
In responding to a statement of charges, the
accused party may admit to the allegations, deny the allegations, or otherwise
((plea)) plead. Failure to make a timely response shall be deemed
an admission of the allegations contained in the statement of charges and
will result in a default whereupon the director may enter an order under RCW
34.05.440. If a hearing is requested, the time of the hearing shall be
scheduled but the hearing shall not be held earlier than thirty days after
service of the charges upon the accused. A notice of hearing shall be issued
at least twenty days prior to the hearing, specifying the time, date, and place
of hearing.
NEW SECTION. Sec. 19. A
new section is added to chapter 18.140 RCW to read as follows:
(1) The director may issue a cease and desist
order to a person after notice and hearing and upon a determination that the
person has violated a provision of this chapter or a lawful order or rule of
the director.
(2) If the director makes a written finding of
fact that the public interest will be irreparably harmed by delay in issuing an
order, the director may issue a temporary cease and desist order. Before
issuing the temporary cease and desist order, whenever possible, the director
shall give notice by telephone or otherwise of the proposal to issue a
temporary cease and desist order to the person. Every temporary cease and
desist order shall include a provision that a hearing will be held upon request
to determine whether the order will become permanent.
At the time the temporary cease and desist
order is served, the person shall be notified that he or she is entitled to
request a hearing for the sole purpose of determining whether the public
interest requires that the temporary cease and desist order be continued or
modified pending the outcome of the hearing to determine whether the order will
become permanent. The hearing shall be held within thirty days after the
department receives the request for hearing, unless the person requests a later
hearing. A person may secure review of any decision rendered at a temporary
cease and desist order review hearing in the same manner as an adjudicative
proceeding.
Sec. 20.
RCW 18.140.180 and 1989 c 414 s 22 are each amended to read as follows:
The administrative hearing on the allegations
in the statement of charges may be heard by ((the board or)) an
administrative law judge appointed under chapter 34.12 RCW at the time and
place prescribed by the director and in accordance with the provisions of the
administrative procedure act, chapter 34.05 RCW. If the ((board or the))
administrative law judge determines that a state-licensed or
state-certified real estate appraiser is guilty of a violation of any of the
provisions of this chapter, a formal decision shall be prepared that contains
findings of fact and recommendations to the director concerning the appropriate
disciplinary action to be taken.
In such event the director shall enter an order
to that effect and shall file the same in his or her office and immediately
mail a copy thereof to the affected party at the addresses of record with the
department. Such order shall not be operative for a period of ten days from
the date thereof. Any ((licensee or applicant)) party aggrieved
by a final decision by the director in an adjudicative proceeding whether such
decision is affirmative or negative in form, is entitled to a judicial review
in the superior court under the provisions of the administrative procedure act,
chapter 34.05 RCW.
Sec. 21.
RCW 18.140.190 and 1989 c 414 s 23 are each amended to read as follows:
The attorney general shall render to the
director ((and board)) opinions upon all questions of law relating to
the construction or interpretation of this chapter, or arising in the
administration thereof that may be submitted by the director ((or board)),
and shall act as attorney for the director ((and board)) in all actions
and proceedings brought by or against the director ((and board)) under
or pursuant to any provisions of this chapter.
Sec. 22.
RCW 18.140.900 and 1989 c 414 s 2 are each amended to read as follows:
This chapter may be known and cited as the ((certified))
real estate appraiser act.
NEW SECTION. Sec. 23. The
department shall identify and notify all holders of state-certified residential
appraiser certificates that their certificates will be converted to the
designation of state-licensed real estate appraiser if they have not met the
educational requirements for state-certified residential appraiser as
prescribed by the director and the Appraiser Qualifications Board of the
Appraisal Foundation. The department shall issue licenses with the new
designation which reflects the person's qualifications as prescribed by the
director.
NEW SECTION. Sec. 24.
RCW 18.140.911 and 1989 c 414 s 27 are each repealed.
