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Introduced Version House Bill 2608 History

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hb2608 intr
H. B. 2608


          (By Delegates Staggers, Morgan, Swartzmiller,
               R. Phillips, Diserio, Romine, Azinger,
                    Border and Householder)
          [Introduced
February 22, 2013 ; referred to the
          Committee on Government Organization then the Judiciary.]


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.
Be it enacted by the Legislature of West Virginia:
          That §30-38-7 and §30-38-9 of the Code of West Virginia, 1931, as amended, be amended and reenacted; 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:
ARTICLE 38. THE REAL ESTATE APPRAISER LICENSING AND CERTIFICATION ACT.
§30-38-7. General powers and duties.
          The board shall:
          (a) Define by rule the type of educational experience, appraisal experience and equivalent experience that will meet the statutory requirements of this article;
          (b) Establish examination specifications as prescribed herein and provide for appropriate examinations;
          (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;
          (e) Approve or disapprove applications for registration under the provisions of article thirty-eight-a of this chapter;
__________
(d) (f) Define by rule continuing education requirements for the renewal of certifications and licenses;
          (e) (g) Censure, suspend or revoke licenses and certification as provided in this article;
          (h) Suspend or revoke registrations under the provisions of article thirty-eight-a of this chapter;
__________
(f) (i) Hold meetings, hearings and examinations;
          (g) (j) Establish procedures for submitting, approving and disapproving applications;
          (h) (k) Maintain an accurate registry of the names, and addresses and contact information of all persons certified or issued a license to practice under this article;
          (l) Maintain an accurate registry of the names, addresses and contact information of all persons and firms registered under the provisions of article thirty-eight-a of this chapter;
__________
(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;
          (p) Issue registration numbers to registrants under the provisions of article thirty-eight-a of this chapter;
__________
(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;
          (l) (r) Keep records and make reports as required by article one of this chapter; and
          (m) (s) Perform any other functions and duties necessary to carry out the provisions of this article and article thirty-eight-a of this chapter.
§30-38-9. Rulemaking.
          (a) The board may propose rules for legislative approval in accordance with the provisions of article three, chapter twenty- nine-a of this code, to provide for:
          (1) Licensure and certification requirements, including requirements for applications, examinations, reciprocity, temporary permits, apprentice permits and reinstatement;
          (2) Registration requirements, including delinquent and expired registrations, for appraisal management companies under the provisions of article thirty-eight-a of this chapter;
__________
(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
          (4) (8) Any other purpose to carry out the requirements of this article and article thirty-eight-a of this chapter.
          (b) The rule governing appraiser qualifications must include requirements which meet or exceed the education, experience and examination requirements issued or endorsed by the appraisal qualifications board of the appraisal foundation.
          (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.
ARTICLE 38A. APPRAISAL MANAGEMENT COMPANIES REGISTRATION ACT.
§30-38A-1.
Unlawful acts.
__________(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.
§30-38A-2. Applicable law.
__________Appraisal management companies and appraisal management services covered under the provisions of this article are subject to the requirements set forth in this article and the rules promulgated hereunder, and the provisions of article one and article thirty-eight of this chapter.
§30-38A-3. Definitions.
__________
As used in this article, the following words and terms have the following meanings, unless the context clearly indicates otherwise:
__________(a) "Applicant" means a person or firm making an application for registration under the provisions of this article.
__________(b) "Appraisal" means an analysis, opinion or conclusion prepared by a real estate appraiser relating to the nature, quality, value or utility of specified interests in, or aspects of, identified real estate or identified real property. An appraisal may be classified by the nature of the assignment as a valuation appraisal, an analysis assignment or a review assignment.
__________(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:
__________(1) Conducting business directly or indirectly by telephone, electronically, mail or in person;
__________(2) Providing related administrative and clerical duties;
__________(3) Recruiting, selecting or retaining appraisers;
__________(4) Verifying qualifications of appraisers;
__________(5) Establishing and administering an appraiser panel;
__________(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.
__________(f) "Appraisal services" means the practice of developing an opinion of the value of real estate in conformity with the minimum USPAP standards.
__________(g) "Appraiser" means a person licensed or certified, under the provisions of article thirty-eight of this chapter, to perform an appraisal.
__________(h) "Appraiser panel" means a group of appraisers that perform appraisals for an appraisal management company as independent contractors.
__________(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.
__________(j) "Board" means the West Virginia Real Estate Appraiser Licensing and Certification Board established under the provisions of article thirty-eight of this chapter.
__________(k) "Client" means a person or firm that contracts or enters into an agreement with an appraisal management company for the performance of an appraisal.
__________(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.
__________(m) "Firm" means a corporation, limited liability company, partnership, sole proprietorship or any other business entity.
__________(n) "Registrant" means a person or firm holding a registration issued by the board under the provisions of this article.
__________(o) "Registration" means a registration issued by the board under the provisions of this article.
__________(p) "State" means the State of West Virginia.
__________(q) "USPAP" means the Uniform Standards of Professional Appraisal Practice.
§30-38A-4. Registration requirements.
__________(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.
__________(c) The board may issue a registration to perform appraisal management services or act as an appraisal management company to a person or firm that:
__________(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
__________(7) Meets any other requirement set by the board.
__________(d) The registrations issued under the provisions of this article shall be renewed annually on January 1.
__________(e) Registrations not renewed in a timely manner are delinquent. To reinstate a delinquent registration, the registrant must pay a monthly penalty, as set by the board.
__________(f) A registration that has been delinquent for more than three months shall be considered expired and a new application for registration is required.
__________(g) The board shall issue a registration number to each appraisal management company registered in this state.
__________(h) The board shall keep a list of appraisal management company registered in this state and publish the list on its website.

§30-38A-5. Written application
requirements.
__________
(a) The written application shall be submitted on a form prescribed by the board and shall include:
__________(1) The name, the street and mailing address and the contact information, including telephone number and e-mail address, of the person or firm seeking registration;
__________(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
__________(4) (A) If the applicant is a domestic firm, the designation of an agent for service of process; or
__________(B) If the applicant is a foreign firm, documentation that the foreign firm is authorized to do business in West Virginia and that an agent for service of process has been designated and the following has been submitted:
__________(i) A copy of the filing with the Secretary of State's Office appointing an agent for service of process; and
__________(ii) A certificate of authority issued by the Secretary of State.
__________(b) The board shall maintain a list of all applicants for registration that includes the information in the written application.
§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:
__________(1) Has a process in place to verify that any person used as an appraiser or added to the appraiser panel of the applicant is a licensed or certified appraiser in good standing in West Virginia;
__________(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:
__________(1) The written application and verification for registration contain no false or misleading statements;
__________(2) The applicant has complied with the requirements of this article;
__________(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:
__________(A) A misdemeanor involving mortgage lending or real estate appraisals; or
__________(B) An offense involving breach of trust or fraudulent or dishonest dealing;
__________(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
__________(9) Set forth any other requirements of the board.
§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.
__________
(a) Each applicant shall post and maintain a surety bond with the board. The aggregate liability of the surety bond may not exceed the principal sum of the surety bond.
__________(b) The surety bond shall:
__________(1) Be established by the board through rules;
__________(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.
__________(d) Consumer claims shall be given priority in recovering from the surety bond.
__________(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.
__________
The fees assessed by the board, as established by legislative rule, shall include the annual fee for appraisal management companies to be included in the national registry maintained by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.
§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:
__________(1) Be of good character and reputation;
__________(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;
__________(4) Never have been a part of a firm that was 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; and
__________(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.
__________(d) The board shall hold a hearing on the complaint within a reasonable time, not exceeding one year after the complaint was filed.
__________(e) If the board determines after the hearing that an appraisal management company acted improperly then the board shall order the appraisal management company to restore the appraiser to the appraiser panel or assign appraisals to the appraiser.
__________(f) After the board's order, an appraisal management company may not:
__________(1) Reduce the number of appraisals given to the appraiser; or
__________(2) Penalize the appraiser in any other manner.
§30-38A-12. Duties of appraisal management companies.
__________(a) Each appraisal management company shall:
__________(1) Verify that an appraiser receiving work or being placed on an appraiser panel is:
__________(A) Professionally and geographically competent;
__________(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;
__________(3) Maintain complete detailed records of requests for appraisals from clients, including:
__________(A) The type of appraisal requested;
__________(B) The name and license or certification number of the appraiser to whom the appraisal was referred;
__________(C) The fees received from the client; and
__________(D) The fees paid to the appraiser or any third party for services performed;
__________(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;
__________(B) Violated applicable laws or rules; or
__________(C) Engaged in unethical or unprofessional conduct;
__________(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.
__________(b) The board may inspect the records of appraisal management companies at any time without prior notice.
__________(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.
__________(e) The provisions of this section do not exempt a registrant from any other reporting requirements contained in any federal or state law.
§30-38A-13. Unprofessional conduct.
__________An appraisal management company commits unprofessional conduct if it:
__________(1) Requires an appraiser to modify an aspect of an appraisal which modification is not related to substandard performance or noncompliance with the terms of a contract or agreement;
__________(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;
__________(3) Requires an appraiser to prepare an appraisal under a certain time frame that the appraiser believes, in his or her own professional judgment and notifies the appraisal management company, that the appraiser does not have the necessary time to meet all the necessary and relevant legal and professional obligations;
__________(4) Prohibits or inhibits communication between an appraiser and any other person from whom the appraiser, in the appraiser's own professional judgment, believes information would be relevant;
__________(5) Requires an appraiser to do anything that does not comply with:
__________(A) The USPAP; or
__________(B) The requests of the client; or
__________(6) Makes any portion of the appraiser's fee or the appraisal management company's fee contingent on a favorable outcome, including:
__________(A) A loan closing; or
__________(B) An appraisal for a specific dollar amount.
§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:
__________(A) An opinion, conclusion or valuation reached; or
__________(B) A preliminary estimate or opinion requested from an appraiser;
__________(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:
__________(A) There is a reasonable basis to believe that the initial appraisal was flawed and the basis is clearly and appropriately noted in the file;
__________(B) The second or subsequent appraisal, or automated valuation model is done under a bona fide prefunding or post-funding appraisal review or quality control process;
__________(C) The second appraisal is required by law; or
__________(D) The second or subsequent appraisal or automated valuation model is ordered by a client; or
__________(28) Commit an act or practice that impairs or attempts to impair an appraiser's independence, objectivity or impartiality.
__________(b) This section does not prohibit an appraisal management company from requesting that an appraiser:
__________(1) Provide additional information about the basis for a valuation;
__________(2) Correct objective factual errors in an appraisal;
__________(3) Provide further detail, substantiation or explanation for the appraiser's conclusion; or
__________(4) Consider additional appropriate property information, including the consideration of additional comparable properties to make or support an appraisal.
§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:
__________(1) A person or firm acted as an appraisal management company or performed appraisal management services without being properly registered with the board;
__________(2) A person or firm did not perform the duties set out in this article;
__________(3) A person or firm engaged in unprofessional conduct as set out in this article;
__________(4) A person or firm engaged in a prohibited act set out in this article;
__________(5) The application for registration contained false or misleading information;
__________(6) A person or firm fraudulently or deceptively obtains or attempts to obtain a registration;
__________(7) A person or firm fraudulently or deceptively used a registration;
__________(8) A person or firm violated the provisions of this article, this code, or the board's rules;
__________(9) A person or firm was found guilty of a felony or pleaded guilty or nolo contendere to a felony;
__________(10) Within the past ten years, a person or firm was found guilty of or pleaded guilty or nolo contendere to a misdemeanor involving:
__________(A) Mortgage lending;
__________(B) Appraisals;
__________(C) Breach of trust; or
__________(D) Fraudulent or dishonest dealing;
__________(11) A person or firm is permanently or temporarily enjoined by a court of competent jurisdiction from engaging in or continuing any conduct or practice involving appraisal management services or operating an appraisal management company;
__________(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;
__________(13) A person or firm failed to pay the applicable fees; or
__________(14) For any other finding by the board.
§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.
__________(b) If the board determines after the investigation there are grounds for disciplinary action, the board may hold a hearing after giving thirty days' prior notice.
__________(c) The board has the same powers set out in article thirty- eight of this chapter.
__________(d) After notice and a hearing, the board may:
__________(1) Suspend, revoke, deny, reprimand, cancel or restrict the registration of a registrant;
__________(2) Impose a fine not to exceed $25,000
for each violation; or
__________(3) Take other disciplinary action as established by the board by rule.
__________(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, it has been completely underscored.

          Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

          This bill was recommended for introduction and passage during the Regular Session of the Legislature by the Joint Committee on Government Organization.
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