An Act
Maine Legislature, Session 128, LD 1349
Committee Amendment CA_A_H467 (House)

COMMITTEE AMENDMENT "A" to H.P. 939, L.D. 1349, 
Regarding the Registration of Appraisal Management Companies" 
Bill, "An Act 
Amend the bill by striking out the title and substituting the following: 
'An Act Regarding the Licensure of Appraisal Management Companies' 
Amend the bill in section 1 in chapter 124-A in the 2nd line (page 1, line 4 in L.D.) 
by striking out the following: 
"REGISTRATION" and inserting the following: 
'LICENSING' 
Amend the bill in section 1 in § 14041 in the first paragraph in the last line (page 1, 
line 7 in L.D.) by striking out the following: "Registration" and inserting the following: 
'Licensing' 
Amend the bill in section 1 in § 14042 in subsection 2 in the last line (page 1, line 13 
in L.D.) by inserting after the following: "service." the following: ' "Appraisal 
assignment" does not include an appraisal review or quality control examination.' 
Amend the bill in section 1 in § 14042 in subsection 3 in the first and 2nd lines (page 
1, lines 14 and 15 in L.D.) by striking out the fo11owing: "an entity" and inserting the 
following: 'a person' 
Amend the bill in section 1 in § 14042 in subsection 3 by striking out all of paragraph 
A (page 1, lines 16 to 20 in L.D.) and insetting the following: 
'A. 
Provides appraisal management services to creditors or secondaiy m01tgage 
market pa1ticipants with appraisers who are pait of an appraiser panel that includes 
more than 15 appraisers who are independent contractors;' 
Amend the bill in section 1 in § 14042 in subsection 3 in paragraph B in the first line 
(page 1, line 21 in L.D.) by inserting after the following: "Provides" the following: 
'appraisal management' 
Amend the bill in section 1 in § 14042 by striking out all of subsections 5 and 6 (page 
2, lines 9 to 16 in L.D.) and insetting the following: 
Page I - 128LR1207(02)-1 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT,{} to H.P. 939, L.D. 1349 
'5. Appraisal review. "Appraisal review" means the act or process of developing 
and communicating an opinion about the quality of the work performed by an appraiser 
as patt of an appraisal assignment, which may take into account the appraiser's data 
collection, analysis, opinions, conclusions, estimate of value or compliance with the 
Uniform Standards of Professional Appraisal Practice. 
"Appraisal review" does not 
include a quality control examination. 
6. Appraisal service. "Appraisal service" means an act or process of completing an 
appraisal assignment.' 
Amend the bill in section 1 in § 14042 in subsection 8 in the 2nd line (page 2, line 19 
in L.D.) by inserting after the following: "perform appraisals" the following: 'as 
independent contractors' 
Amend the bill in section 1 in §14043 in the first line (page 4, line 21 in L.D.) by 
striking out the following: "Registration" and inserting the following: 'License' 
Amend the bill in section 1 in § 14043 in subsection 1 by striking out all of the first 
line (page 4, line 22 in L.D.) and insetting the following: 
'1. License. A person shall obtain a license from the board before:' 
Amend the bill in section 1 in § 14043 in subsection 2 in the first line (page 4, line 29 
in L.D.) by striking out the following: "registration" and inserting the following: 
'Ii censure' 
Amend the bill in section 1 in § 14043 in subsection 2 in the last line (page 4, line 32 
in L.D.) by striking out the following: "initial registration or an application for renewal of 
a registration" and insetting the following: 'an initial license or an application for renewal 
of a license' 
Amend the bill in section 1 in § 14043 by striking out all of subsection 3 (page 4, lines 
and 34 in L.D.). 
Amend the bill in section 1 in § 14043 in subsection 4 in the first line (page 4, line 3 5 
in L.D.) by striking out the following: "registration" and inse1ting the following: 
'Ii censure' 
Amend the bill in section 1 in §14043 in subsection 5 in the first line (page 5, line 1 
in L.D.) by striking out the following: "registred" and inserting the following: 'licensed' 
Amend the bill in section 1 in § 14043 in subsection 5 in the 2nd line (page 5, line 2 in 
L.D.) by striking out the following: "registered" and insetting the following: 'licensed' 
Amend the bill in section 1 in § 14043 in subsection 6 in the 3rd line (page 5, line 7 in 
L.D.) by striking out the following: "register with" and inserting the following: 'obtain a 
license from' 
Amend the bill in section 1 in § 14043 by renumbering the subsections to read 
consecutively. 
Amend the bill by striking out all of §14044 and §14045 (page 5, lines 13 to 28 in 
L.D.) and inse1ting the following: 
COMMITTEE AMENDMENT 
COMMITI'EE AMENDMENT "A" to H.P. 939, L.D. 1349 
'§14044. License renewal 
A license expires on the date set by the Commissioner of Professional and Financial 
Regulation pursuant to Title 10, section 8003, subsection 4 for the licensing period for 
which the license was issued. A license may be renewed upon receipt of an application 
for renewal and payment of the renewal fee as set under section 14045. Licenses may be 
renewed up to 90 days after the date of expiration upon payment of a late fee, as set under 
section 14045. 
The board shall deny a renewal license to any applicant whose license has lapsed for 
more than 90 days unless the applicant satisfies the provisions governing new applicants 
under this subchapter. 
§14045. Fees 
1. 
Fee established by rule. 
The Director of the Office of Professional and 
Occupational Regulation within the Department of Professional and Financial Regulation 
may establish by rule fees for purposes authorized under this chapter in amounts that are 
reasonable and necessary for their respective purposes, except that the fee for any one 
purpose may not exceed $450 annually. Rules adopted pursuant to this section are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
2. National registry fees. The board may collect from an applicant for licensure 
under this chapter and from a licensee and remit to the appropriate agency or 
instrumentality of the Federal Government any additional fees required to provide 
appraisal management services in connection with federally related transactions.' 
Amend the bill in section 1 in § 14046 by striking out all of subsection 1 (page 5, lines 
to 35 in L.D.) and inserting the following: 
'1. License or certification as appraiser. An appraisal management company 
licensed or applying for or renewing a license under this chapter may not be owned in 
whole or in part, directly or indirectly, by a person that has had a license or certificate to 
act as an appraiser refused, denied, cancelled, revoked or surrendered in lieu of a pending 
revocation in any state for substantive cause. An appraisal management company is not 
ineligible for a license under this subsection if the person's license or cettificate to act as 
an appraiser was not revoked for substantive cause and the person has subsequently had 
the license or certificate granted or reinstated.' 
Amend the bill in section I in§ 14047 in subsection 1 in the 2nd line (page 6, line 4 in 
L.D.) by striking out the following: "registration or for renewal of a registration" and 
insetting the following: 'license or for renewal of a license' 
5 
Amend the bill in section 1 in § 1404 7 in subsection 2 in paragraph B in the last line 
(page 6, line 11 in L.D.) by insetting after the following: "pending revocation" the 
7 
following: 'for substantive cause' 
8 
Amend the bill in section 1 in § 14048 by striking out all of the first paragraph (page 
6, lines 15 and 16 in L.D.) and inserting the following: 
'An appraisal management company that is licensed or applies for a license or 
renewal of a license may not:' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ·A "to H.P. 939, L.D. 1349 
Amend the bill in section 1 in § 14048 in subsection 1 in the last line (page 6, line 21 
in L.D.) by inserting after the following: "revocation" the following: 'unless the license or 
certificate was subsequently granted or reinstated' 
Amend the bill in section 1 in § 14048 in subsection 2 in the last line (page 6, line 25 
in L.D.) by inserting after the following: "revocation" the following: 'unless the license or 
ce1tificate was subsequently granted or reinstated' 
Amend the bill in section 1 by striking out all of§ 14049 and inserting the following: 
'§14049. Denial of license 
In addition to the grounds enumerated in Title 10, section 8003, subsection 5-A, 
paragraph A, the board may deny a license, refuse to renew a license or impose the 
disciplinmy sanctions authorized by Title 10, section 8003, subsection 5-A for: 
1. Lack of trustworthiness. Lack of trustw01thiness and competence to conduct 
appraisal management services in a manner that safeguards the interests of the public; 
2. Misconduct. The commission of an act or omission in the practice of appraisal 
management services that constitutes dishonesty, fraud or misrepresentation with the 
intent to benefit the licensee or another person or with the intent to injure another person; 
3. Court judgment. The entty of a final civil or criminal judgment against the 
licensee on grounds of fraud, misrepresentation or deceit in the provision of appraisal 
management services; 
4. Unauthorized payment. Payment of a finder's fee or a refetTal fee to a person 
who does not have an appraiser license under chapter 124 in connection with appraisal 
management services; 
5. Misrepresentation of professional qualifications. Pe1mitting an employee of 
the licensee or a member of the licensee's appraisal panel to make a false or misleading 
statement in that portion of a written appraisal report that deals with professional 
qualifications or in any testimony concerning professional qualifications; 
6. Predetermined appraisal result. Accepting a fee for performing an appraisal 
service when, in fact, the fee is or was contingent upon the appraiser's repo1ting a 
predete1mined analysis, opinion or conclusion or is or was contingent upon the analysis, 
opinion, conclusion or valuation reached or upon the consequences resulting from the 
appraisal assignment; 
7. Lack of diligence. Failure or refusal, without good cause, to exercise reasonable 
diligence in providing appraisal management services; 
8. 
Negligence or incompetence. 
Negligence or incompetence in perfonning 
appraisal management services; 
9. Breach of confidentiality. A violation of the confidential nature of individual, 
business or governmental records to which a licensee or applicant gained access through 
employment or engagement as an appraisal management company; 
10. Suspension or revocation of license. Having had a professional or occupational 
license suspended or revoked for disciplinary reasons or an application rejected for 
reasons related to untrustw01thiness within 3 years prior to the date of application; and 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT "A" to H.P. 939, L.D. 1349 
11. 
Failure to meet professional qualifications; failure to submit complete 
application. Failure to meet the professional qualifications for licensure as provided in 
this chapter or failure to submit a complete application within 30 days after being notified 
of the materials needed to complete the application.' 
Amend the bill in section 1 in § 14049-D in subsection 2 by striking out all of the first 
and 2nd lines (page 8, lines 17 and 18 in L.D.) and inserting the following: 
'2. Record keeping. An appraisal management company licensed or applying to be 
license or to renew a licensed in this State shall:' 
Amend the bill in section 1 in §14049-D in subsection 2 in the blocked paragraph in 
the first line (page 8, line 27 in L.D.) by striking out the following: "registered" and 
insetting the following: 'licensed' 
Amend the bill in section 1 by striking out all of § 14049-E and inserting the 
following: 
'§14049-E. Compensation of appraisers 
An appraisal management company shall compensate appraisers in accordance with 
· the appraisal independence standards established under the federal Truth in Lending Act, 
United States Code, Section 1639e (2016) and its implementing regulations, 12 Code 
of Federal Regulations, Section 1026.42 (2016). Except in cases of breach of contract or 
substandard performance of an appraisal service, an appraisal management company shall 
make payment to an appraiser for the completion of an appraisal service within 45 days 
of the date on which the appraiser transmits or otherwise provides the results of the 
completed appraisal service to the appraisal management company.' 
Amend the bill in section 1 in § 14049-G in subsection 1 in the first line (page 9, line 
in L.D.) by striking out the following: "registered" and inse1iing the following: 
'licensed' 
Amend the bill in section 1 in § 14049-G in subsection 1 in the 2nd line (page 9, line 
in L.D.) by striking out the following: "registered" and inserting the following: 
'licensed' 
Amend the bill in section 1 in § 14049-G in subsection 1 in paragraph Q by striking 
out all of subparagraph (1) (page 10, lines 37 to 39 in L.D.) and inserting the following: 
'(1) Complete an appraisal service if the appraiser determines the appraiser does 
not have the necessary expe1iise for the specific geographic area, the appraiser 
has notified the company of that detennination and the appraiser has declined the 
assignment;' 
5 
Amend the bill in section 1 in § 14049-G in subsection 1 in paragraph Q in 
subparagraph (2) in the last line (page 11, line 3 in L.D.) by inse1iing after the following: 
7 
"belief' the following: 'and has declined the assignment' 
Amend the bill in section 1 by striking out all of §14049-I, §14049-J, §14049-L and 
§14049-M. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "M "to H.P. 939, L.D. 1349 
Amend the bill in section 1 in § 14049-N in subsection 2 in the last line (page 13, line 
in L.D.) by striking out the following: "registration" and inserting the following: 
'licensure pursuant to Title 10, section 8003' 
Amend the bill in section 1 in §14049-N in subsection 3 in the last line (page 13, line 
in L.D.) by striking out the following: "registration" and inserting the following: 
'license pursuant to Title 10, section 8003' 
Amend the bill in section 1 in § 14049-N in subsection 6 in the first line (page 13, line 
in L.D.) by inserting after the following: "investigations" the following: 'pursuant to 
Title 10, chapter 90 l' 
Amend the bill in section 1 in §14049-N by striking out all of subsection 7 (page 13, 
line 30 to 33 in L.D.) and inserting the following: 
'7. Discipline. Discipline an appraisal management company or suspend, terminate 
or refuse to renew the license of an appraisal management company that violates this 
chapter, a rule adopted pursuant to this chapter or an order issued pursuant to this chapter 
pursuant to Title 10, section 8003, except that the board may impose a civil penalty of up 
to $5,000 for each violation of applicable laws, rules or conditions of licensure or for 
each instance of actionable conduct or activity; and' 
Amend the bill in section 1 by adding after § 14049-N the following: 
'§14049-0. Repeal; board repo11 
1. Repeal. This chapter is repealed on March 15, 2018. 
2. Report. The board shall submit a report to the joint standing committee of the 
Legislature having jurisdiction over business matters by January I, 2018 indicating 
whether Section 1124 of the federal Dodd-Frank Wall Street Reform and Consumer 
Protection Act (2010) has been repealed or substantially amended by federal legislation. 
The committee may report out a bill to the Legislature related to the report.' 
Amend the bill in section 1 in chapter 124-A by renumbering the sections to read 
consecutively. 
SUMMARY 
This amendment, which is the unanimous rep01t of the committee, clarifies that 
appraisal management companies must be licensed, not registered, by the Board of Real 
Estate Appraisers. The amendment makes several changes to the bill to comply with the 
federal Dodd-Frank Wall Street Ref01m and Consumer Protection Act as well as to 
provide appropriate cross-references to the laws governing licensing boards within the 
Department of Professional and Financial Regulation, Office of Professional and 
Occupational Regulation in the Maine Revised Statutes, Title 10, chapter 901. 
The amendment adds a provision repealing the statute establishing licensure of 
appraisal management companies on March 15, 2018. 
The Board of Real Estate 
Appraisers is required to submit a repo1t to the Joint Standing Committee on Labor, 
Commerce, Research and Economic Development by January 1, 2018 indicating whether 
the federal Dodd-Frank Wall Street Reform and Consumer Protection Act has been 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" h·" to H.P. 939, L.D. 1349 
repealed or substantially amended. The committee may repo1t out a bill related to the 
report. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/20/17 frac;.. 
LD 1349 
LR 1207(02) 
An Act Regarding the Registration of Appraisal Management Companies 
Fiscal Note for Bill as Amended by Committee Amendment •/} [ H , L/ ltJ ~ 
Committee: Labor, Commerce, Research and Economic Development 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Minor revenue increase - Other Special Revenue Funds 
Additional costs to the Board of Real Estate Appraisers within the Office of Professional and Occupational 
Regulation, Department of Professional and Financial Regulation, for rulemaking and other administrative functions 
associated with establishing a licensing requirement for appraisal management companies can be absorbed within 
existing budgeted resources. The amount of dedicated revenue to be received by the board from initial licensing and 
renewal fees can not be detennined but is expected to be minor. 
LR1207(02) - Fiscal Note - Page 1 of 1