Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=sb346%20intr.htm&yr=2013&sesstype=RS&i=346
Timestamp: 2020-01-28 03:57:35
Document Index: 167650969

Matched Legal Cases: ['§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30', '§30']

(By Senators Snyder, Miller, Green, Sypolt, D. Hall and Williams)
A BILL to amend and reenact §30-38-7 and §30-38-9 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto a new article, designated §30-38A-1, §30-38A-2, §30-38A-3, §30-38A-4, §30-38A-5, §30-38A-6, §30-38A-7, §30- 38A-8, §30-38A-9, §30-38A-10, §30-38A-11, §30-38A-12, §30-38A- 13, §30-38A-14, §30-38A-15 and §30-38A-16, all relating to requiring appraisal management companies to be registered with the West Virginia Real Estate Appraiser Licensing and Certification Board; updating the duties, powers and rule- making authority of the board; unlawful acts; applicable law; definitions; requirements for registration, including written applications, verifications and background checks; requiring surety bonds; duties of appraisal management companies; prohibited acts; disciplinary action; hearing and notice procedures; and civil penalties.
That §30-38-7 and §30-38-9 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that said code be amended by adding thereto a new article, designated §30-38A-1, §30-38A-2, §30-38A-3, §30-38A-4, §30-38A-5, §30-38A-6, §30-38A-7, §30-38A-8, §30-38A-9, §30-38A-10, §30-38A-11, §30-38A-12, §30-38A-13, §30-38A- 14, §30-38A-15 and §30-38A-16, all to read as follows:
(c) Establish registration requirements and procedure for appraisal management companies under the provisions of article thirty-eight-a of this chapter;
__________(c) (d) Approve or disapprove applications for certification and licensure;
__________(d) (f) Define by rule continuing education requirements for the renewal of certifications and licenses;
__________(f) (i) Hold meetings, hearings and examinations;
__________(i) (m) Maintain accurate records on applicants and licensed or certified real estate appraisers;
(n) Maintain accurate records on registrants under the provisions of article thirty-eight-a of this chapter;
__________(j) (o) Issue to each licensed or certified real estate appraiser a pocket card with the appraiser's name and license or certification number. Pocket cards are the property of the State of West Virginia and, upon suspension or revocation of the license to practice pursuant to this article, will be returned immediately to the board;
__________(k) (q) Deposit all fees collected by the board to the credit of the West Virginia appraiser licensing and certification board fund established in the office of the State Treasurer. The board shall disburse moneys from the account to pay the cost of board operation. Disbursements from the account may not exceed the moneys credited to it;
__________(2) (3) Fees for licenses, renewals of licenses and other services provided by the board;
(4) A fee schedule for registrations for appraisal management companies under the provisions of article thirty-eight-a of this chapter;
__________(5) Surety bond requirements for registrations for appraisal management companies under the provisions of article thirty-eight-a of this chapter;
__________(6) Requirements and procedures for appraisal management companies to maintain records under the provisions of article thirty-eight-a of this chapter;
__________(3) (7) Experience, education and continuing education requirements and approval of courses; and
(c) Any rules in effect as of the passage of this article on January 1, 2013, will remain in effect until amended, modified, repealed or replaced, except that references to provisions of former enactments of this act are interpreted to mean provisions of this article.
(a) Commencing January 1, 2014, it is unlawful for any person or firm to perform or offer to perform appraisal management services, or act as an appraisal management company within this state without a registration issued by the West Virginia Real Estate Appraiser Licensing and Certification Board under the provisions of this article.
(b) Commencing January 1, 2014, it is unlawful for any person or firm not registered under the provisions of this article to advertise or use a title or description conveying the impression that the person or firm is registered to perform appraisal management services or registered to act as an appraisal management company within this state.
(c) "Appraisal Management Company" means a person or firm that performs or provides appraisal management services, directly or indirectly, through any means of communication.
(d) "Appraisal management services" means the business of managing the process of having an appraisal performed for compensation or pecuniary gain, including:
(6) Negotiating fees with appraisers;
(7) Receiving appraisal orders from clients;
(8) Contracting with appraisers to perform appraisal services;
(9) Receiving appraisals from the appraiser;
(10) Reviewing or verifying the appraisal received from the appraiser;
(11) Tracking and determining the status of orders for appraisals;
(12) Conducting quality control of a completed appraisal;
(13) Submitting to the client a completed appraisal received from an appraiser;
(14) Collecting fees from the clients;
(15) Reimbursing appraisers for appraisal services rendered; and
(16) Providing software products that are used to select appraisers, order appraisals or perform any other appraisal management services.
(e) "Appraisal review" means the act of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraiser assignment. The review does not include an examination of an appraisal for grammatical, typographical or other similar errors that do not make a substantive valuation change.
(i) "Automated valuation model (AVM)" means a mathematically based computer software program that produces an estimate of market value based on market analysis of location, market conditions, and real estate characteristics from information that was previously and separately collected. The distinguishing feature of an AVM is that it is an estimate of market value produced through mathematical modeling. Credibility of an AVM is dependent on the data used and the skills of the modeler producing the AVM.
(l) "Controlling person" or "Managing principal" means a person authorized by an appraisal management company to contract or enter into agreements with clients and independent appraisers for the performance of appraisal services and has the power to manage the appraisal management company.
(a) A person or firm performing or offering to perform appraisal management services or acting as an appraisal management company within this state shall be registered with the board by January 1, 2014.
(b) A person or firm applying for a registration may not be owned, in whole or in part, directly or indirectly by:
(1) A person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended or surrendered in this state or any other jurisdiction; or
(2) A firm that is owned by a person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended or surrendered in this state or any other jurisdiction.
(1) Makes written application to the board as set out in section five of this article;
(2) Submits verifications as set out in section six of this article;
(3) Submits national and state criminal background checks as set out in section seven of this article;
(4) Posts a surety bond as set out in section eight of this article;
(5) Pays the applicable fees as set out in section nine of this article;
(6) Has a designated controlling person or managing principal as set out in section ten of this article; and
(d) The registrations issued under the provisions of this article shall be renewed annually on January 1.
§30-38A-5. Written application requirements.
(2) The name, the street and mailing address and the contact information, including telephone number and e-mail address, of each owner seeking registration;
(3) The name, the street and mailing address and the contact information, including telephone number and e-mail address, of the controlling person or managing principal of the firm seeking registration; and
(i) A copy of the filing with the Secretary of State's Office appointing an agent for service of process; and
§30-38A-6. Verification requirements.
(a) The verification for registration shall be in writing, on a form prescribed by the board and signed by the applicant. The verification shall include statements that the applicant:
(2) Has set requirements to ensure that appraisers are geographically competent and can perform the appraisals assigned;
(3) Has set procedures for an appraiser licensed or certified in West Virginia to review the work of the appraisers performing appraisals for the applicant to ensure that the appraisals are being conducted in accordance with the minimum USPAP standards;
(4) Will require appraisals to be conducted independently;
(5) Will pay reasonable and customary fees to the appraisers;
(6) Maintains a detailed record of each request for appraisal it receives from a client and the appraiser that performs the appraisal; and
(7) Has submitted any other information required by the board.
(b) The applicant and any controlling partner or managing principal or person directly or indirectly controlling the applicant shall submit a written verification, on a form prescribed by the board, that includes statements that:
(3) The applicant, each owner and the controlling person or managing principal of the firm seeking registration has not pleaded guilty or nolo contendere to or been convicted of a felony;
(4) Within the past ten years, the applicant, each owner and the controlling person or managing principal of the firm seeking registration has not pleaded guilty or nolo contendere to or been convicted of:
(5) The applicant, each owner and the controlling person or managing principal of the firm seeking registration are of good character and reputation and that none of them has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended or surrendered in this state or any other jurisdiction;
(6) The applicant, each owner and the controlling person or managing principal of the firm seeking registration are not permanently or temporarily enjoined by a court of competent jurisdiction from engaging in or continuing any conduct or practice involving appraisals, appraisal management services or operating an appraisal management company;
(7) The applicant, each owner and the controlling person or managing principal of the firm seeking registration are not the subject of an order of the board, any state agency that regulates appraisal management companies or any other jurisdiction that denied, suspended or revoked the applicant's or firm's privilege to operate as an appraisal management company;
(8) The applicant, each owner and the controlling person or managing principal of the firm seeking registration have not acted as an appraisal management company while not being properly registered by the board; and
§30-38A-7. Background check requirements.
(a) The applicant, each owner and the controlling person or managing principal of the firm seeking registration shall obtain national and state criminal background checks.
(b) The applicant, each owner and the controlling person or managing principal of the firm seeking registration shall obtain a state criminal background check first and then provide their fingerprints to the West Virginia State Police or a designated vendor for submission to the Federal Bureau of Investigation.
(c) The results of the national and state criminal background checks shall be sent to the board.
(d) The fees for the national and state criminal background checks cannot exceed the actual costs of processing the request and conducting the checks and are to be paid by the applicant, each owner and the controlling person or managing principal of the firm seeking registration.
§30-38A-8. Surety bond requirements and claims.
(2) Not exceed $500,000;
(3) Be in the form prescribed by the board; and
(4) Accrue to the state for the benefit of any claimant against the registrant to secure the faithful performance of the registrant's obligations.
(c) A party having a claim against the registrant may bring suit directly against the surety bond or the board may bring suit on behalf of the party having a claim against the registrant.
(e) If a claim reduces the face amount of the surety bond, then the surety bond amount shall be restored upon renewal of the registrant's annual registration.
§30-38A-9. Fee requirements.
§30-38A-10. Controlling person or managing principal requirements.
(a) An appraisal management company shall have a designated controlling person or managing principal who will ensure compliance with this article and will be the main contact for all communication between the board and the appraisal management company.
(b) The controlling person or managing principal shall:
(2) Submit to national and state criminal background checks as set out in section seven of this article;
(3) Never have had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended or surrendered in this state or any other jurisdiction;
(5) Never have been the subject of an order of the board, any state agency that regulates appraisal management companies or any other jurisdiction that denied, suspended or revoked the applicant's or firm's privilege to operate as an appraisal management company.
§30-38A-11. Requirements for removal from an appraiser panel.
(a) An appraisal management company may only remove an appraiser from an appraiser panel or refuse to assign appraisals to an appraiser after providing the appraiser thirty days prior written notice stating the reasons for the removal or refusal and providing an opportunity for the appraiser to be heard.
(b) An appraiser may only be removed from an appraiser panel or refused appraisal assignments for the following reasons:
(1) Illegal conduct;
(2) Violating the minimum USPAP standards;
(3) Violating applicable statutes or rules that result in a suspension or revocation of an appraiser's license or certification;
(4) Substandard or improper performance as determined by the board by rule; or
(5) Violating the contract between the appraiser and the appraisal management company.
(c) An appraiser that is removed from an appraiser panel or refused appraisal assignments may file a complaint with the board for a review of the appraisal management company's decision.
§30-38A-12. Duties of appraisal management companies.
(B) Licensed or certified under the provisions of article thirty-eight of this chapter; and
(C) In good standing in this state;
(2) Designate a controlling person or managing principal responsible for ensuring compliance with this article, including filing with the board the following:
(A) The name of the controlling person or managing principal;
(B) The contact information for the controlling person or managing principal;
(C) A verified acceptance of responsibility from the controlling person or managing principal; and
(D) A new form when there is a change of the controlling person or managing principal;
(4) Ensure that appraisal services are provided in an independent manner, free from inappropriate influence and coercion;
(5) Pay an appraiser reasonable and customary fees;
(6) Except in cases of breach of contract or substandard performance, pay an appraiser for the completion of an appraisal within sixty days after the appraiser provides the completed appraisal to the appraisal management company;
(7) Disclose its registration number on all its instruments and electronic transmissions;
(8) Disclose on all contracts, agreements, invoices, purchase orders or other documents, including any amendments, establishing work to be performed for or compensation due from its clients:
(A) The name of the appraiser or third party performing the services;
(B) A description of the services performed;
(C) An itemization of the actual fees paid to an appraiser or third party for services performed; and
(D) An itemization of the actual fees charged by the appraisal management company to the client for services;
(9) Inform the board, when it has a reasonable basis to believe, that an appraiser has:
(A) Failed to comply with USPAP;
(10) Keep accounts, correspondence, memoranda, papers and books, either by paper or electronically, in accordance with administrative procedures established by the board by legislative rule, for a minimum of five years or as long as the board determines by legislative rule; and
(11) Maintain a registered agent for service of process and provide the board with the same information for the agent that is provided to the Secretary of State.
(c) A sole proprietor of an appraisal management company is considered the controlling person or managing principal.
(d) If a disclosure becomes inaccurate for any reason, then a revised or amended disclosure shall be provided by the end of the next business day after the change. The revised or amended disclosure shall be clearly marked as revised or amended and contain sufficient information for the client to identify the original disclosure referenced.
§30-38A-13. Unprofessional conduct.
(2) Requires an appraiser to prepare an appraisal when the appraiser believes, in his or her own professional judgment and notifies the appraisal management company, that the appraiser does not have the necessary expertise for the specific geographic area;
(5) Requires an appraiser to do anything that does not comply with:
§30-38A-14. Prohibited acts.
(a) An appraisal management company or any person acting for an appraisal management company as an owner, director, officer, agent, employee or independent contractor may not:
(1) Improperly influence or attempt to improperly influence the development, reporting, result or review of an appraisal;
(2) Use intimidation, inducement, coercion, extortion, collusion, bribery, compensation, blackmail, threat of nonpayment, threat of exclusion from future appraisal work or any other means that unduly influences or pressures the appraiser;
(3) Withhold payment to an appraiser for appraisal services;
(4) Provide payment to an appraiser that is less than what is reasonable and customary;
(5) Withhold business from an appraiser without cause;
(6) Demote or terminate an appraiser without cause;
(7) Expressly or impliedly promise future business, promotions or increased compensation to an appraiser;
(8) Knowingly employ a person to a position of responsibility who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended or surrendered in this state or any other jurisdiction;
(9) Knowingly enter into a contract with a person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended or surrendered in this state or any other jurisdiction;
(10) Knowingly enter into a contract, agreement or other business relationship for the purpose of obtaining real estate appraisal services with a firm that employs or contracts with a person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended or surrendered in this state or any other jurisdiction;
(11) Knowingly fail to separate and disclose any fees charged to a client by the appraisal management company for an appraisal by an appraiser from fees charged to a client by the appraisal management company for appraisal management services;
(12) Prohibit an appraiser from stating, in a submitted appraisal, the fee paid by the appraisal management company to the appraiser for the appraisal;
(13) Request, allow or require an appraiser to collect any portion of the fee, including the appraisal fee, charged by the appraisal management company to the client;
(14) Require an appraiser to provide the registrant with the appraiser's signature or seal in any form;
(15) Alter, amend or change an appraisal submitted by an appraiser;
(16) Remove an appraiser's signature or seal from an appraisal;
(17) Add information to or remove information from an appraisal with the intent to change the conclusion of the appraisal;
(18) Remove an appraiser from an appraiser panel without thirty days prior written notice to the appraiser and an opportunity for the appraiser to be heard;
(19) Enter into an agreement or contract for the performance of appraisal services with an appraiser who is not in good standing with the board;
(20) Request or require an appraiser to provide an estimated, predetermined or desired valuation in an appraisal;
(21) Request or require an appraiser to provide estimated values or comparable sales at any time prior to the appraiser completing an appraisal;
(22) Condition a request for an appraisal or the payment of an appraisal fee on:
(23) Provide to an appraiser an anticipated, estimated, encouraged or desired value for an appraisal or a proposed or targeted amount to be loaned or borrowed, except that a copy of the sales contract for the purchase transaction may be provided;
(24) Require an appraiser to indemnify or hold harmless an appraisal management company for any liability, damage, losses or claims arising out of the services provided by the appraisal management company;
(25) Have a direct or indirect interest, financial or otherwise, in the property or transaction involving the appraisal;
(26) Provide to an appraiser or a person related to the appraiser stock or other financial or nonfinancial benefits;
(27) Obtain, use or pay for a second or subsequent appraisal or order an automated valuation model, unless:
(28) Commit an act or practice that impairs or attempts to impair an appraiser's independence, objectivity or impartiality.
§30-38A-15. Disciplinary action.
The board may deny, suspend, revoke or refuse to issue or renew the registration of an appraisal management company or may restrict or limit the activities of an appraisal management company or of a person or firm that owns an interest in or participates in the business of an appraisal management company for the following reasons:
(12) A person or firm is the subject of an order of the board or any other jurisdiction's appraisal management company regulatory agency that denied, suspended, revoked or restricted a person's or firm's privilege to operate as an appraisal management company;
§30-38A-16. Notice and hearing procedures.
(a) The board, on its own motion or upon receipt of a written complaint, may investigate an appraisal management company, a person or firm associated therewith and a person or firm performing appraisal management services.
(c) The board has the same powers set out in article thirty- eight of this chapter.
(1) Suspend, revoke, deny, reprimand, cancel or restrict the registration of a registrant;
(e) The board may obtain injunctive relief in Kanawha County Circuit Court to prevent a person or firm from violating the provisions of this article or the rules promulgated hereunder. The circuit court may grant a temporary or permanent injunction.
NOTE: The purpose of this bill is to require Appraisal Management Companies to be registered with the West Virginia Real Estate Appraiser Licensing and Certification Board. The bill updates the duties, powers and rule-making authority of the board and the general and specific regulation of Appraisal Management Companies.
Article 38A is new; therefore, strike-throughs and underscoring have been omitted.
This bill was recommended for introduction and passage during the Regular Session of the Legislature by the Joint Committee on Government Organization.