DEPARTMENT OF LICENSING

[Filed July 8, 2020, 11:48 a.m.]

Preproposal statement of inquiry was filed as WSR 20-03-027.

Title of Rule and Other Identifying Information: Amending WAC 308-125-010 Definitions, 308-125-080 Application for certification, 308-125-090 Continuing education required 308-125-120 Fees and charges; and new WAC 308-125-250 Inactive licenses.

Hearing Location(s): On August 25, 2020, at 9:00 a.m.

Telephonic public hearing. Call in number: 360-407-3780. Pin Code: 447041#.

Date of Intended Adoption: August 26, 2020.

Submit Written Comments to: Dee Sharp, Department of Licensing, Real Estate Appraiser Program, P.O. Box 9021, Olympia, WA 98507-9021, email reappraisers@dol.wa.gov, fax 360-570-4981, by August 24, 2020.

Assistance for Persons with Disabilities: Contact Dee Sharp, phone 360-664-6504, fax 360-570-4981, TTY 771 [711], email reappraisers@dol.wa.gov, by August 24, 2020.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Rule changes are necessary to update the WAC to incorporate changes required by ESSB 5480 to establish an inactive status, establish rules for inactive status, and establish rules for reactivation process for real estate appraisers. ESSB 5480 is effective September 1, 2020, and was passed by the 2019 legislature which requires the ability for an appraiser license to go inactive and the department of licensing (DOL) to establish rules to clarify inactive status and reactivation processes.

Reasons Supporting Proposal: Rule modifications and adoptions are proposed to comply with the state legislature's intent to provide an inactive status for real estate appraisers.

Statutory Authority for Adoption: RCW 18.140.030 (1) and (15).

Statute Being Implemented: None.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: DOL, governmental.

Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Dee Sharp, 2000 4th Avenue West, Olympia, WA 98507, 360-664-6504.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. A cost-benefit analysis is not required under subsections (5)(b)(ii) and (v) of RCW 34.05.328 as these rules relate to business and professional licensing application processes and are dictated by statute.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.025(3) as the rule content is explicitly and specifically dictated by statute; and rules set or adjust fees under the authority of RCW 19.02.075 or that set or adjust fees or rates pursuant to legislative standards, including fees set or adjusted under the authority of RCW 19.80.045.

AMENDATORY SECTION(Amending WSR 08-17-016, filed 8/8/08, effective 9/8/08)

WAC 308-125-010Definitions.

(1) Words and terms used in these rules shall have the same meaning as each has in the Certified Real Estate Appraiser Act, (chapter 18.140 RCW) and the Uniform Standards of Professional Appraisal Practice (USPAP).

(2) "Appraisal foundation" means a private association of appraiser professional organizations. The appraisal foundation develops appraisal standards which the regulatory agencies must use as minimum standards for federally related transactions and it develops qualification criteria for appraisers.

(3) "Appraisal subcommittee" means a committee created by Title XI. It monitors all activities related to the implementation of Title XI.

(4) "Appraisal standards board" means a board established by the appraisal foundation for the purpose of developing, publishing, interpreting and amending the Uniform Standards of Professional Appraisal Practice.

(5) "The Uniform Standards of Professional Appraisal Practice (USPAP)" means the current edition of the publication in force of the appraisal standards board (ASB) of the appraisal foundation. USPAP is the applicable standard for all appraisal practice in the state of Washington regulated under the provisions of chapter 18.140 RCW.

(6) "Appraiser qualifications board" means a board of the appraisal foundation for the purpose of developing, publishing, interpreting and amending the real property appraiser qualification criteria.

(7) "Real property appraiser qualification criteria" means the minimum criteria establishing the minimum education, experience and examination requirements for real property appraisers to obtain a state certification as established by the appraiser qualifications board (AQB) of the appraisal foundation under the provisions of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989, and any additional qualifying criteria established by the director in accordance with chapter 18.140 RCW.

(8) "Classroom hour" means fifty minutes out of each sixty minute hour.

(9) "Full-time" means the equivalent twelve-month period in which an applicant works at least one thousand hours in real estate appraisal.

(10) "Required core curriculum" means a set of appraiser subject matter areas (known as "modules") that require a specified number of educational hours at each credential level as established by the appraiser qualifications board.

(11) "Module" means an appraisal subject matter area (and required hours of coverage) as identified in the required core curriculum.

(12) "Residential properties" means one to four single family residential units and lots where the highest and best use is for one to four family purposes.

(13) "Significant professional appraisal assistance" shall include but not be limited to the work contributed or performed toward the completion of an appraisal report by either a trainee, state-licensed, or state-certified appraiser, while under the direct supervision of a certified residential appraiser or certified general appraiser as required by the department as qualifying appraisal experience for licensing. Significant professional appraisal assistance shall consist of identifying and analyzing the scope of work, collection of data, analyzing data to derive an opinion of value, or writing the appraisal report in accordance with the Uniform Standards of Professional Appraisal Practice.

(14) "Inactive status" means the status of an appraiser license or certification that is not expired and is eligible for reinstatement or renewal. An appraiser license in inactive status is not eligible to provide real estate appraisal services.

AMENDATORY SECTION(Amending WSR 97-02-004, filed 12/20/96, effective 1/20/97)

WAC 308-125-080Application for certification.

(1) Upon receipt of notice of passage of the examination, applicants must submit a complete original certification application with the certification fee to the department of licensing, business and professions division, at its official address. The department will verify qualifications under chapter 18.140 RCW and the rules promulgated thereunder.

(2) Each original and renewal and reinstated certificate issued under RCW 18.140.130 shall expire on the applicant's second birthday following issuance of the certificate.

AMENDATORY SECTION(Amending WSR 13-17-002, filed 8/7/13, effective 9/7/13)

WAC 308-125-090Continuing education required.

(1) As a prerequisite to renewal of an active or inactive certification, licensure, or registration, the holder of a certificate, license, or registration shall present evidence satisfactory to the director of successful completion of the continuing education requirements of this section.

(2) The continuing education requirements for renewal of an active or inactive certification, licensure, or registration shall be the completion by the applicant of twenty-eight hours of instruction in courses or seminars which have received the approval of the director. Courses must be completed within the term of certification, licensure, or registration immediately preceding renewal. An applicant shall not receive credit in consecutive renewals for courses that have the same or very similar content and are deemed comparable by the department. The holder of a certificate, license, or registration will present evidence of successful completion of the seven-hour National USPAP update course or its equivalent.

(3) In order for courses or seminars to be accepted under subsection (2) of this section, the course or seminar must be a minimum of two hours in length and be directly related to real estate appraising. However, a maximum of one-half of the continuing education hours required for renewal can be in two-hour seminars or courses.

(4) An examination is not required for courses or seminars taken for continuing education classroom hours.

(5) Up to one-half of the requirement under subsection (2) of this section may be met by participation other than as a student in educational process and programs approved by the director including teaching, program development, and authorship of textbooks and other written instructional materials. A licensee or certificate holder may receive continuing education credit for teaching an approved real estate appraisal course. Once a licensee or certificate holder has received credit for teaching an approved real estate appraiser course, the credential holder shall not receive credit for teaching that course or any substantially similar course on any subsequent occasion, with the exception of the Uniform Standards of Professional Appraisal Practice, USPAP, 7-hour update.

(6) Courses or seminars taken to satisfy the continuing education requirement for real estate appraisers, should include coverage of real estate appraisal related topics, such as:

(a) Ad valorem taxation.

(b) Arbitrations, dispute resolution.

(d) Construction estimating.

(e) Ethics and standards of professional practice, USPAP.

(f) Land use planning, zoning, and taxation.

(g) Management, leasing, brokerage, timesharing.

(h) Property development, partial interests.

(i) Real estate appraisal (valuations/evaluations).

(j) Real estate financing and investment.

(k) Real estate law, easements and legal interests.

(l) Real estate litigation, damages and condemnation.

(m) Real estate related computer applications.

(n) Real estate securities and syndication.

(o) Real property exchange.

(p) Appraisal and consulting report writing.

(q) Green buildings.

(r) Seller concessions.

(s) Developing opinions of real property value in appraisals that also include personal property and/or business value.

(t) Such other presentations approved by the director.

(7) The director may approve continuing education credit for attendance at one real estate appraiser commission meeting of no more than seven hours.

(8) The director may defer completion of continuing education for the holder of a certificate, license, or registration returning from military service active duty and place the registration, license, or certificate in an active status for a period of ninety days pending completion of education. If the holder of a certificate, license, or registration fails to comply with the continuing education requirement within said ninety days, the registration, license, or certificate will revert to an expired status.

(9) A licensee or certificate holder may receive continuing education credit for teaching an approved real estate appraisal course. One hour of education credit for each hour of teaching an approved real estate appraisal course shall be given. Once a licensee or certificate holder has received credit for teaching an approved real estate appraisal course, the credential holder shall not receive credit for teaching that course or any substantially similar course on any subsequent occasion.

AMENDATORY SECTION(Amending WSR 11-19-103, filed 9/21/11, effective 10/22/11)

WAC 308-125-120Fees and charges.

The following fees shall be paid under the provisions of chapter 18.140 RCW:

Title of Fee		Fee
(1)	Application for examination	$370.00
(2)	Examination	120.00**
(3)	Reexamination	120.00**
(4)	Original certification	250.00*
(5)	((Certification))Active license renewal	530.00*
(6)	Inactive license renewal	110.00
(7)	Reinstatement	530.00
(8)	Late renewal ((penalty))	38.00
(((7)	Duplicate certificate	30.00
(8))) (9)	Certification history record	30.00
(((9))) (10)	Application for reciprocity	370.00
(((10))) (11)	Original certification via reciprocity	250.00*
(((11))) (12)	Temporary practice	150.00
(((12))) (13)	Trainee registration	200.00
(((13))) (14)	Trainee registration renewal	200.00
(15)	DOL license print	5.00

*	Fees for these categories marked with an asterisk include a national registry fee in an amount determined by the appraisal subcommittee to be submitted by the state. Title XI, SEC. 1109 requires each state to submit a roster listing of state licensed and certified appraisers to the Appraiser Subcommittee.
**	Charges for categories marked with a double asterisk are determined by contract with an outside testing service.

WAC 308-125-250Inactive licenses.

(1) Any license issued under this chapter and not otherwise revoked is deemed "inactive" at any time it is delivered to the director. Until reinstated under this chapter, the holder of an inactive license is prohibited from conducting real estate appraisal services.

(2) An inactive license may be renewed on the same terms and conditions as an active license, except that a person with an inactive license shall pay a reduced renewal fee. Failure to renew shall result in cancellation in the same manner as an active license.

(3) An inactive license may be placed in an active status upon submission of a reinstatement application to include proof of successful completion within one hundred eighty days of application of a fifteen hour course in the uniform standards of professional appraisal practice.

(4) If an appraiser license is inactive for more than eight years, the license shall be canceled in the same manner as an active license.