Am. S. B. No. 144 As Reported by the House Commerce and Labor Committee

Senators Schuler, Clancy, Mumper, Spada

Representatives Seitz, Collier, Cassell, Distel, Schaffer

A BILL

To amend section 4763.05 of the Revised Code to 1
modify the Ohio Real Estate Appraiser law with 2
respect to the temporary registration of 3
appraisers licensed or certified in another state. 4

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 4763.05 of the Revised Code be 5
amended to read as follows: 6

       Sec. 4763.05. (A)(1) A person shall make application for an 7
initial state-certified general real estate appraiser certificate, 8
an initial state-certified residential real estate appraiser 9
certificate, an initial state-licensed residential real estate 10
appraiser license, or an initial state-registered real estate 11
appraiser assistant registration in writing to the superintendent 12
of real estate on a form the superintendent prescribes. The 13
application shall include the address of the applicant's principal 14
place of business and all other addresses at which the applicant 15
currently engages in the business of preparing real estate 16
appraisals and the address of the applicant's current residence. 17
The superintendent shall retain the applicant's current residence 18
address in a separate record which shall not constitute a public 19
record for purposes of section 149.03 of the Revised Code. The 20
application shall indicate whether the applicant seeks 21
certification as a general real estate appraiser or as a 22
residential real estate appraiser, licensure as a residential real 23
estate appraiser, or registration as a real estate appraiser 24
assistant and be accompanied by the prescribed examination and 25
certification, registration, or licensure fees set forth in 26
section 4763.09 of the Revised Code. The application also shall 27
include a pledge, signed by the applicant, that the applicant will 28
comply with the standards set forth in this chapter and a 29
statement that the applicant understands the types of misconduct 30
for which disciplinary proceedings may be initiated against the 31
applicant pursuant to this chapter. 32

       (2) For purposes of providing funding for the real estate 33
appraiser recovery fund established by section 4763.16 of the 34
Revised Code, the real estate appraiser board shall levy an 35
assessment against each person issued an initial certificate, 36
registration, or license and against current licensees, 37
registrants, and certificate holders, as required by board rule. 38
The assessment is in addition to the application and examination 39
fees for initial applicants required by division (A)(1) of this 40
section and the renewal fees required for current certificate 41
holders, registrants, and licensees. The superintendent shall 42
deposit the assessment into the state treasury to the credit of 43
the real estate appraiser recovery fund. The assessment for 44
initial certificate holders, registrants, and licensees shall be 45
paid prior to the issuance of a certificate, registration, or 46
license, and for current certificate holders, registrants, and 47
licensees, at the time of renewal. 48

       (B) An applicant for an initial general real estate appraiser 49
certificate shall possess at least thirty months of experience in 50
real estate appraisal, or any equivalent experience the board 51
prescribes. An applicant for a residential real estate appraiser 52
certificate or residential real estate appraiser license shall 53
possess at least two years of experience in real estate appraisal, 54
or any equivalent experience the board prescribes. In addition to 55
any other information required by the board, the applicant shall 56
furnish, under oath, a detailed listing of the appraisal reports 57
or file memoranda for each year for which experience is claimed 58
and, upon request of the superintendent or the board, shall make 59
available for examination a sample of the appraisal reports 60
prepared by the applicant in the course of the applicant's 61
practice. 62

       (C)(1) Except as provided in division (C)(2) of this section, 63
an applicant for an initial certificate, registration, or license 64
shall be at least eighteen years of age, honest, truthful, and of 65
good reputation and shall present satisfactory evidence to the 66
superintendent of the following, as appropriate: 67

       (a) If the applicant is seeking a state-certified general 68
real estate appraiser certificate, that the applicant has 69
successfully completed at least one hundred sixty-five classroom 70
hours of courses in subjects related to real estate appraisal, 71
including at least one course devoted exclusively to federal, 72
state, and municipal fair housing law, presented by a nationally 73
recognized appraisal organization, an institution of higher 74
education, a career school registered by the state board of career 75
colleges and schools, a state or federal commission or agency, or 76
any other organization that represents the interests of financial 77
institutions or real estate brokers, appraisers, or agents and 78
that provides appraisal education, plus fifteen classroom hours 79
related to standards of professional practice and the provisions 80
of this chapter; 81

       (b) If the applicant is seeking a state-certified residential 82
real estate appraiser certificate, that the applicant has 83
successfully completed at least one hundred five classroom hours 84
of courses in subjects related to real estate appraisal, including 85
at least one course devoted exclusively to federal, state, and 86
municipal fair housing law, presented by a nationally recognized 87
appraisal organization, an institution of higher education, a 88
career school registered by the state board of career colleges and 89
schools, or any other organization that represents the interests 90
of financial institutions or real estate brokers, appraisers, or 91
agents and that provides appraisal education, plus fifteen 92
classroom hours related to standards of professional practice and 93
the provisions of this chapter; 94

       (c) If the applicant is seeking a state-licensed residential 95
real estate appraiser license, that the applicant has successfully 96
completed at least seventy-five classroom hours of courses in 97
subjects related to real estate appraisal, including at least one 98
course devoted exclusively to federal, state, and municipal fair 99
housing law, presented by a nationally recognized appraisal 100
organization, an institution of higher education, a career school 101
registered by the state board of career colleges and schools, a 102
state or federal commission or agency, or any other organization 103
that represents the interests of financial institutions or real 104
estate brokers, appraisers, or agents and that provides appraisal 105
education, plus fifteen classroom hours related to standards of 106
professional practice and the provisions of this chapter; 107

       (d) If the applicant is seeking a state-registered real 108
estate appraiser assistant registration, that the applicant has 109
successfully completed at least seventy-five classroom hours of 110
courses in subjects related to real estate appraisal, including at 111
least one course devoted exclusively to federal, state, and 112
municipal fair housing law, presented by a nationally recognized 113
appraisal organization, an institution of higher education, a 114
career school registered by the state board of career colleges and 115
schools, or any other organization that represents the interests 116
of financial institutions or real estate brokers, appraisers, or 117
agents, and that provides appraisal education that included at 118
least fifteen classroom hours of instruction related to standards 119
of professional practice and the requirements of this chapter and 120
the rules adopted under this chapter. 121

       (2) Each person who files an application for an initial 122
certificate or license within one year of the date established by 123
the board as the first date on which applications will be accepted 124
under this section, which date shall be no later than September 1, 125
1990, and who, at the time of filing that application, does not 126
satisfy the educational requirements for the certification or 127
licensure sought of either division (C)(1)(a) or (b) of this 128
section is exempt from those educational requirements for the term 129
of the initial certification or licensure. In applying for a 130
renewal certificate or license pursuant to section 4763.06 of the 131
Revised Code, a certificate holder or licensee who was exempted 132
from the educational requirements of division (C)(1)(a) or (b) of 133
this section when applying for the initial certificate or license 134
shall present satisfactory evidence to the superintendent that the 135
certificate holder or licensee has completed the educational 136
requirements for the certification or licensure to be renewed of 137
one of those divisions before the renewal certificate or license 138
may be issued. 139

       (D) An applicant for an initial general real estate appraiser 140
or residential real estate appraiser certificate or residential 141
real estate appraiser license shall take and successfully complete 142
a written examination in order to qualify for the certificate or 143
license. The examination shall require the applicant to 144
demonstrate all of the following: 145

       (1) Appropriate knowledge of technical terms commonly used in 146
or related to real estate appraising, appraisal report writing, 147
and the economic concepts applicable to real estate; 148

       (2) Understanding of the principles of land economics, real 149
estate appraisal processes, and problems likely to be encountered 150
in gathering, interpreting, and processing of data in carrying out 151
appraisal disciplines; 152

       (3) Understanding of the standards for the development and 153
communication of real estate appraisals as provided in this 154
chapter and the rules adopted thereunder; 155

       (4) Knowledge of theories of depreciation, cost estimating, 156
methods of capitalization, direct sales comparison, and the 157
mathematics of real estate appraisal that are appropriate for the 158
certification or licensure for which the applicant has applied; 159

       (5) Knowledge of other principles and procedures as 160
appropriate for the certification or license; 161

       (6) Basic understanding of real estate law; 162

       (7) Understanding of the types of misconduct for which 163
disciplinary proceedings may be initiated against a certificate 164
holder and licensee. 165

       (E)(1) A nonresident, natural person of this state who has 166
complied with this section may obtain a certificate, registration, 167
or license. The board shall adopt rules relating to the 168
certification, registration, and licensure of a nonresident 169
applicant whose state of residence the board determines to have 170
certification, registration, or licensure requirements that are 171
substantially similar to those set forth in this chapter and the 172
rules adopted thereunder. 173

       (2) ~~A nonresident appraiser may apply for, and the board may~~ 174
~~issue, a temporary certificate or license if the board determines~~ 175
~~that the state in which the nonresident appraiser is licensed or~~ 176
~~certified has licensing or certification requirements that are~~ 177
~~substantially similar to the certification or licensure~~ 178
~~requirements set forth in this chapter and the rules adopted~~ 179
~~thereunder~~The board shall recognize on a temporary basis a 180
certification or license issued in another state and shall 181
register on a temporary basis an appraiser who is certified or 182
licensed in another state if all of the following apply: 183

       (a) The temporary registration is to perform an appraisal 184
assignment that is part of a federally related transaction; 185

       (b) The appraiser's business in this state is of a temporary 186
nature; 187

       (c) The appraiser registers with the board pursuant to this 188
division. 189

       An appraiser who is certified or licensed in another state 190
shall register with the board for temporary practice before 191
performing an appraisal assignment in this state in connection 192
with a federally related transaction. 193

       The board shall adopt rules relating to registration for the 194
temporary recognition of certification and licensure of 195
~~nonresident~~ appraisers from another state. ~~Each temporary~~ 196
~~certificate and license issued by the board shall identify the~~ 197
~~location of the real estate property to be appraised and~~The 198
registration for temporary recognition of certified or licensed 199
appraisers from another state shall not authorize ~~appraisal~~ 200
completion of more than one ~~real estate property located~~appraisal 201
assignment in this state. The board shall not issue more than two 202
registrations for temporary ~~certificates or licenses~~practice to 203
any one applicant in any ~~one~~ calendar year ~~to any one applicant~~. 204

       (3) In addition to any other information required to be 205
submitted with the nonresident applicant's or appraiser's 206
application for a certificate, registration, license, or temporary 207
recognition of a certificate or license, each nonresident 208
applicant or appraiser shall submit a statement consenting to the 209
service of process upon the nonresident applicant or appraiser by 210
means of delivering that process to the secretary of state if, in 211
an action against the applicant, certificate holder, registrant, 212
or licensee arising from the applicant's, certificate holder's, 213
registrant's, or licensee's activities as a certificate holder, 214
registrant, or licensee, the plaintiff, in the exercise of due 215
diligence, cannot effect personal service upon the applicant, 216
certificate holder, registrant, or licensee. 217

       (F) The superintendent shall not issue a certificate, 218
registration, ~~temporary certificate or license,~~ or license to, or 219
recognize on a temporary basis an appraiser from another state 220
that is a corporation, partnership, or association. This 221
prohibition shall not be construed to prevent a certificate holder 222
or licensee from signing an appraisal report on behalf of a 223
corporation, partnership, or association. 224

       (G) Every person licensed, registered, or certified under 225
this chapter shall notify the superintendent, on a form provided 226
by the superintendent, of a change in the address of the 227
licensee's, registrant's, or certificate holder's principal place 228
of business or residence within thirty days of the change. If a 229
licensee's, registrant's, or certificate holder's license, 230
registration, or certificate is revoked or not renewed, the 231
licensee, registrant, or certificate holder immediately shall 232
return the annual and any renewal certificate, registration, or 233
license to the superintendent. 234

       (H) The superintendent shall not issue a certificate, 235
registration, ~~temporary certificate or license,~~ or license to any 236
person, or recognize on a temporary basis an appraiser from 237
another state, who does not meet applicable minimum criteria for 238
state certification, registration, or licensure prescribed by 239
federal law or rule. 240

       Section 2. That existing section 4763.05 of the Revised Code 241
is hereby repealed. 242

Section 1. That section 4763.05 of the Revised Code be	5
amended to read as follows:	6

Sec. 4763.05. (A)(1) A person shall make application for an	7
initial state-certified general real estate appraiser certificate,	8
an initial state-certified residential real estate appraiser	9
certificate, an initial state-licensed residential real estate	10
appraiser license, or an initial state-registered real estate	11
appraiser assistant registration in writing to the superintendent	12
of real estate on a form the superintendent prescribes. The	13
application shall include the address of the applicant's principal	14
place of business and all other addresses at which the applicant	15
currently engages in the business of preparing real estate	16
appraisals and the address of the applicant's current residence.	17
The superintendent shall retain the applicant's current residence	18
address in a separate record which shall not constitute a public	19
record for purposes of section 149.03 of the Revised Code. The	20
application shall indicate whether the applicant seeks	21
certification as a general real estate appraiser or as a	22
residential real estate appraiser, licensure as a residential real	23
estate appraiser, or registration as a real estate appraiser	24
assistant and be accompanied by the prescribed examination and	25
certification, registration, or licensure fees set forth in	26
section 4763.09 of the Revised Code. The application also shall	27
include a pledge, signed by the applicant, that the applicant will	28
comply with the standards set forth in this chapter and a	29
statement that the applicant understands the types of misconduct	30
for which disciplinary proceedings may be initiated against the	31
applicant pursuant to this chapter.	32

(2) For purposes of providing funding for the real estate	33
appraiser recovery fund established by section 4763.16 of the	34
Revised Code, the real estate appraiser board shall levy an	35
assessment against each person issued an initial certificate,	36
registration, or license and against current licensees,	37
registrants, and certificate holders, as required by board rule.	38
The assessment is in addition to the application and examination	39
fees for initial applicants required by division (A)(1) of this	40
section and the renewal fees required for current certificate	41
holders, registrants, and licensees. The superintendent shall	42
deposit the assessment into the state treasury to the credit of	43
the real estate appraiser recovery fund. The assessment for	44
initial certificate holders, registrants, and licensees shall be	45
paid prior to the issuance of a certificate, registration, or	46
license, and for current certificate holders, registrants, and	47
licensees, at the time of renewal.	48

(B) An applicant for an initial general real estate appraiser	49
certificate shall possess at least thirty months of experience in	50
real estate appraisal, or any equivalent experience the board	51
prescribes. An applicant for a residential real estate appraiser	52
certificate or residential real estate appraiser license shall	53
possess at least two years of experience in real estate appraisal,	54
or any equivalent experience the board prescribes. In addition to	55
any other information required by the board, the applicant shall	56
furnish, under oath, a detailed listing of the appraisal reports	57
or file memoranda for each year for which experience is claimed	58
and, upon request of the superintendent or the board, shall make	59
available for examination a sample of the appraisal reports	60
prepared by the applicant in the course of the applicant's	61
practice.	62

(C)(1) Except as provided in division (C)(2) of this section,	63
an applicant for an initial certificate, registration, or license	64
shall be at least eighteen years of age, honest, truthful, and of	65
good reputation and shall present satisfactory evidence to the	66
superintendent of the following, as appropriate:	67

(a) If the applicant is seeking a state-certified general	68
real estate appraiser certificate, that the applicant has	69
successfully completed at least one hundred sixty-five classroom	70
hours of courses in subjects related to real estate appraisal,	71
including at least one course devoted exclusively to federal,	72
state, and municipal fair housing law, presented by a nationally	73
recognized appraisal organization, an institution of higher	74
education, a career school registered by the state board of career	75
colleges and schools, a state or federal commission or agency, or	76
any other organization that represents the interests of financial	77
institutions or real estate brokers, appraisers, or agents and	78
that provides appraisal education, plus fifteen classroom hours	79
related to standards of professional practice and the provisions	80
of this chapter;	81

(b) If the applicant is seeking a state-certified residential	82
real estate appraiser certificate, that the applicant has	83
successfully completed at least one hundred five classroom hours	84
of courses in subjects related to real estate appraisal, including	85
at least one course devoted exclusively to federal, state, and	86
municipal fair housing law, presented by a nationally recognized	87
appraisal organization, an institution of higher education, a	88
career school registered by the state board of career colleges and	89
schools, or any other organization that represents the interests	90
of financial institutions or real estate brokers, appraisers, or	91
agents and that provides appraisal education, plus fifteen	92
classroom hours related to standards of professional practice and	93
the provisions of this chapter;	94

(c) If the applicant is seeking a state-licensed residential	95
real estate appraiser license, that the applicant has successfully	96
completed at least seventy-five classroom hours of courses in	97
subjects related to real estate appraisal, including at least one	98
course devoted exclusively to federal, state, and municipal fair	99
housing law, presented by a nationally recognized appraisal	100
organization, an institution of higher education, a career school	101
registered by the state board of career colleges and schools, a	102
state or federal commission or agency, or any other organization	103
that represents the interests of financial institutions or real	104
estate brokers, appraisers, or agents and that provides appraisal	105
education, plus fifteen classroom hours related to standards of	106
professional practice and the provisions of this chapter;	107

(d) If the applicant is seeking a state-registered real	108
estate appraiser assistant registration, that the applicant has	109
successfully completed at least seventy-five classroom hours of	110
courses in subjects related to real estate appraisal, including at	111
least one course devoted exclusively to federal, state, and	112
municipal fair housing law, presented by a nationally recognized	113
appraisal organization, an institution of higher education, a	114
career school registered by the state board of career colleges and	115
schools, or any other organization that represents the interests	116
of financial institutions or real estate brokers, appraisers, or	117
agents, and that provides appraisal education that included at	118
least fifteen classroom hours of instruction related to standards	119
of professional practice and the requirements of this chapter and	120
the rules adopted under this chapter.	121

(2) Each person who files an application for an initial	122
certificate or license within one year of the date established by	123
the board as the first date on which applications will be accepted	124
under this section, which date shall be no later than September 1,	125
1990, and who, at the time of filing that application, does not	126
satisfy the educational requirements for the certification or	127
licensure sought of either division (C)(1)(a) or (b) of this	128
section is exempt from those educational requirements for the term	129
of the initial certification or licensure. In applying for a	130
renewal certificate or license pursuant to section 4763.06 of the	131
Revised Code, a certificate holder or licensee who was exempted	132
from the educational requirements of division (C)(1)(a) or (b) of	133
this section when applying for the initial certificate or license	134
shall present satisfactory evidence to the superintendent that the	135
certificate holder or licensee has completed the educational	136
requirements for the certification or licensure to be renewed of	137
one of those divisions before the renewal certificate or license	138
may be issued.	139

(D) An applicant for an initial general real estate appraiser	140
or residential real estate appraiser certificate or residential	141
real estate appraiser license shall take and successfully complete	142
a written examination in order to qualify for the certificate or	143
license. The examination shall require the applicant to	144
demonstrate all of the following:	145

(1) Appropriate knowledge of technical terms commonly used in	146
or related to real estate appraising, appraisal report writing,	147
and the economic concepts applicable to real estate;	148

(2) Understanding of the principles of land economics, real	149
estate appraisal processes, and problems likely to be encountered	150
in gathering, interpreting, and processing of data in carrying out	151
appraisal disciplines;	152

(3) Understanding of the standards for the development and	153
communication of real estate appraisals as provided in this	154
chapter and the rules adopted thereunder;	155

(4) Knowledge of theories of depreciation, cost estimating,	156
methods of capitalization, direct sales comparison, and the	157
mathematics of real estate appraisal that are appropriate for the	158
certification or licensure for which the applicant has applied;	159

(5) Knowledge of other principles and procedures as	160
appropriate for the certification or license;	161

(7) Understanding of the types of misconduct for which	163
disciplinary proceedings may be initiated against a certificate	164
holder and licensee.	165

(E)(1) A nonresident, natural person of this state who has	166
complied with this section may obtain a certificate, registration,	167
or license. The board shall adopt rules relating to the	168
certification, registration, and licensure of a nonresident	169
applicant whose state of residence the board determines to have	170
certification, registration, or licensure requirements that are	171
substantially similar to those set forth in this chapter and the	172
rules adopted thereunder.	173

(2) ~~A nonresident appraiser may apply for, and the board may~~	174
~~issue, a temporary certificate or license if the board determines~~	175
~~that the state in which the nonresident appraiser is licensed or~~	176
~~certified has licensing or certification requirements that are~~	177
~~substantially similar to the certification or licensure~~	178
~~requirements set forth in this chapter and the rules adopted~~	179
~~thereunder~~The board shall recognize on a temporary basis a	180
certification or license issued in another state and shall	181
register on a temporary basis an appraiser who is certified or	182
licensed in another state if all of the following apply:	183

(a) The temporary registration is to perform an appraisal	184
assignment that is part of a federally related transaction;	185

(b) The appraiser's business in this state is of a temporary	186
nature;	187

(c) The appraiser registers with the board pursuant to this	188
division.	189

An appraiser who is certified or licensed in another state	190
shall register with the board for temporary practice before	191
performing an appraisal assignment in this state in connection	192
with a federally related transaction.	193

The board shall adopt rules relating to registration for the	194
temporary recognition of certification and licensure of	195
~~nonresident~~ appraisers from another state. ~~Each temporary~~	196
~~certificate and license issued by the board shall identify the~~	197
~~location of the real estate property to be appraised and~~The	198
registration for temporary recognition of certified or licensed	199
appraisers from another state shall not authorize ~~appraisal~~	200
completion of more than one ~~real estate property located~~appraisal	201
assignment in this state. The board shall not issue more than two	202
registrations for temporary ~~certificates or licenses~~practice to	203
any one applicant in any ~~one~~ calendar year ~~to any one applicant~~.	204

(3) In addition to any other information required to be	205
submitted with the nonresident applicant's or appraiser's	206
application for a certificate, registration, license, or temporary	207
recognition of a certificate or license, each nonresident	208
applicant or appraiser shall submit a statement consenting to the	209
service of process upon the nonresident applicant or appraiser by	210
means of delivering that process to the secretary of state if, in	211
an action against the applicant, certificate holder, registrant,	212
or licensee arising from the applicant's, certificate holder's,	213
registrant's, or licensee's activities as a certificate holder,	214
registrant, or licensee, the plaintiff, in the exercise of due	215
diligence, cannot effect personal service upon the applicant,	216
certificate holder, registrant, or licensee.	217

(F) The superintendent shall not issue a certificate,	218
registration, ~~temporary certificate or license,~~ or license to, or	219
recognize on a temporary basis an appraiser from another state	220
that is a corporation, partnership, or association. This	221
prohibition shall not be construed to prevent a certificate holder	222
or licensee from signing an appraisal report on behalf of a	223
corporation, partnership, or association.	224

(G) Every person licensed, registered, or certified under	225
this chapter shall notify the superintendent, on a form provided	226
by the superintendent, of a change in the address of the	227
licensee's, registrant's, or certificate holder's principal place	228
of business or residence within thirty days of the change. If a	229
licensee's, registrant's, or certificate holder's license,	230
registration, or certificate is revoked or not renewed, the	231
licensee, registrant, or certificate holder immediately shall	232
return the annual and any renewal certificate, registration, or	233
license to the superintendent.	234

(H) The superintendent shall not issue a certificate,	235
registration, ~~temporary certificate or license,~~ or license to any	236
person, or recognize on a temporary basis an appraiser from	237
another state, who does not meet applicable minimum criteria for	238
state certification, registration, or licensure prescribed by	239
federal law or rule.	240

Section 2. That existing section 4763.05 of the Revised Code	241
is hereby repealed.	242