HB761 (2007) Detail

Establishing the licensure and regulation of municipal real estate appraisers.


HB 761-FN – AS INTRODUCED

2007 SESSION

07-1135

10/04

HOUSE BILL 761-FN

AN ACT establishing the licensure and regulation of municipal real estate appraisers.

SPONSORS: Rep. Ingbretson, Graf 5

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill establishes a board of municipal real estate appraisers for the regulation and licensure of persons engaged in the practice of appraising real property for property tax purposes.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-1135

10/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT establishing the licensure and regulation of municipal real estate appraisers.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; Municipal Real Estate Appraisers. Amend RSA by inserting after chapter 310-B the following new chapter:

CHAPTER 310-C

MUNICIPAL REAL ESTATE APPRASIERS

310-C:1 General Provisions.

I. It shall be a class B misdemeanor for any person to practice for compensation or offer to practice for compensation in this state, the profession of municipal real estate appraiser, or to use in connection with a name or otherwise assume, use, or advertise any title or description tending to convey the impression that such person is a municipal real estate appraiser, unless such person has been duly licensed or is exempt from licensing under the provisions of this chapter.

II. Nothing in this chapter, however, shall be construed as requiring any elected or appointed official of a municipality or the state, or any employee of a department or agency of any branch of government to be licensed pursuant to this chapter.

III. The provisions of this chapter shall not apply to persons licensed under RSA 310-B while acting pursuant to their license, nor to a real estate licensee under RSA 331-A when performing comparative market analyses or broker price opinions pursuant to permitted activities regulated by the New Hampshire real estate commission.

310-C:2 Definitions. In this chapter:

I. “Board” means the board of municipal real estate appraisers.

II. “Business organization” means any enterprise, whether corporation, partnership, limited liability company, proprietorship, association, business trust, real estate trust, or other form of organization, organized for gain or profit, carrying on any business activity within the state.

III. “Municipal real estate appraiser” means a person who is licensed by the board under this chapter.

IV. “Practice of municipal real estate appraising” means conducting real estate appraisals by a person or business organization under contract by a municipality doing valuation for the sole purpose of ad valorem taxation.

310-C:3 Board of Municipal Real Estate Appraisers; Establishment; Expenses.

I. A board of licensing for municipal real estate appraisers is established to administer the provisions of this chapter. The board shall consist of 7 persons appointed by the governor and council, 3 of whom shall be municipal real estate appraisers, one of whom shall be either an appraiser licensed under RSA 310-B or a real estate broker licensed under RSA 331-A, and 3 public members. A public member of the board shall be a person who is not, and never was, a member of the real estate appraisal profession or the spouse of any such person, and who does not have and never has had, a material financial interest in the profession.

II. Each member of the board shall be a citizen of the United States and shall have been a resident of this state for at least 5 years prior to appointment.

III. Members shall be appointed for 5-year terms, except that no more than one appointed member’s term may expire in any one calendar year. Appointments for terms of less than 5 years may be made in order to comply with this limitation. No appointed member shall be eligible to serve more than 2 full consecutive terms, provided that for this purpose only a period actually served which exceeds 1/2 of the 5-year term shall be deemed a full term. Upon expiration of a member’s term, the member shall serve until a successor is qualified and appointed. The successor’s term shall be 5 years from the date of expiration of the predecessor’s appointment, regardless of the date of the successor’s appointment. Vacancies occurring prior to the expiration of a specific term shall be filled by appointment for the unexpired term. A board member may be removed for cause by the governor and council under RSA 4:1.

IV. Members of the board shall be reimbursed for mileage at the state employee rate.

V. The board shall hold at least 3 regular meetings each year and special meetings at such times as it may deem necessary. Notice of all meetings shall be given in such a manner as rules adopted by the board may provide. The board shall biennially elect or appoint a chairperson, vice-chairperson, and secretary. Four members shall constitute a quorum.

VI.(a) The board shall adopt an official seal.

(b) The board shall keep a true record of its proceedings and a register of all applications for licensure, which shall show:

(1) The name, age, and residence of each applicant.

(2) The date of application.

(3) The place of business of such applicant.

(4) The applicant’s educational and other qualifications.

(5) Whether or not an examination was required.

(6) Whether the applicant was rejected and the reasons for such rejection.

(7) Whether a license was granted.

(8) The date of the action of the board.

(9) Such other information as may be deemed necessary by the board.

(c) The records of the board shall be prima facie evidence of the proceedings of the board, and a transcript of such records certified by the secretary of the board under seal shall be admissible in evidence with the same force and effect as if the original were produced. Biennially, as of December 31 of each even-numbered year, the board shall submit to the governor a report of the transactions of the preceding biennium, and a complete statement of the receipts and expenditures of the board.

VII. The secretary of the board shall publish a roster listing the names and places of business of all municipal real estate appraisers licensed under this chapter by the board secretary during February of each even-numbered year. Copies of this roster shall be mailed to each licensed municipal real estate appraiser upon request, placed on file with the secretary of state, and furnished to the public upon request at a fee to be established by the board.

VIII. The board shall be administratively attached to the department of administrative services.

310-C:4 Procedures. The records of the board shall be prima facie evidence of the proceedings of the board, and a transcript of such records certified by the secretary of the board under seal shall be admissible in evidence with the same force and effect as if the original were produced. Such subpoenas issued by the board shall have the same effect as though issued for appearance before the superior court.

310-C:5 Rulemaking. Pursuant to RSA 541-A, the board shall make rules reasonably necessary for the proper performance of its duties and the conduct of the proceedings brought before it, so long as such rules do not conflict with the constitution and laws of the state of New Hampshire. Such rulemaking authority includes, but is not limited to:

I. Application procedures for obtaining a license under this chapter.

II. Qualifications of applicants in addition to those requirements already set forth, including satisfactory evidence of good professional character.

III. Examination procedures, including time and place of examination.

IV. Renewal procedures, including requirements for continuing education.

V. Establishment of fees to cover the costs of administering this chapter.

VI. Ethical and professional standards to be met by each license holder under this chapter and the manner in which disciplinary actions by the board shall be implemented for violations of these standards.

VII. Establishment of administrative fines for violations of this chapter.

310-C:6 Disclosure. To ensure compliance with ethical standards established by the board when dealing with the public, municipal real estate appraisers shall:

I. Clearly identify themselves, their employer, and in whose interest they are working.

II. Provide complete services required by municipalities or by the state.

310-C:7 Qualifications for License. Applicants for licensure as municipal real estate appraisers shall have at least the minimum educational requirement for licensure as a municipal real estate appraiser as is satisfactory to the board pursuant to rules adopted under RSA 541-A. The applicant shall be required to pass an oral or written exam, or otherwise meet the approval of the board.

310-C:8 Applications; Fees. Applications for licensing shall be made on forms prescribed and furnished by the board, and shall contain statements made under oath as to citizenship, residence, the applicant’s education, a detailed summary of the applicant’s technical experience, and shall contain the names of not less than 5 references, 3 or more of whom shall be individuals having personal or professional knowledge of the applicant’s experience. The fee for a license as a municipal real estate appraiser shall be fixed by the board. One-half of the fee shall accompany the application, the balance to be paid before the issuance of the license. Should the applicant fail to remit the remaining balance within 30 days after being notified by certified mail, return receipt requested, that the application has been accepted, the applicant shall forfeit the right to have the license issued and the applicant may be required to again submit an original application and pay an original fee on such application. Should the board deny the issuance of a license to any applicant, the fee deposited shall be retained by the board as an application fee.

310-C:9 Examination; Re-examination; Fee. Written and oral examinations shall be at such time and place as the board may determine. The methods and procedure shall be prescribed by the board. A candidate failing an examination may apply for re-examination at the expiration of 6 months and shall be entitled to one re-examination without payment of an additional fee. Subsequent re-examinations may be granted upon payment of a fee to be fixed by the board.

310-C:10 Issuance of License; Endorsement of Documents. The board shall issue a license upon payment of the fee as provided in this chapter to any applicant, who, in the opinion of the board, has satisfactorily met all the requirements of this chapter. Licenses shall show the full name of the licensee, shall have a serial number, and shall be signed by the chairperson and secretary under the seal of the board. The issuance of a license by the board shall be evidence that the person named in the license is entitled to all rights and privileges of a licensed municipal real estate appraiser while such license remains unrevoked or unexpired. Reports issued by the licensee shall be endorsed with the licensee’s name and license number during the life of the license. It shall be a class B misdemeanor for anyone to endorse any document with such name and license number after the license of the named licensee has expired or has been revoked, unless said license has been renewed or reissued. It shall be a class B misdemeanor for any licensed municipal real estate appraiser to endorse any report unless the licensed municipal real estate appraiser shall have actually prepared such plan, map or report, or shall have been in the actual charge of the preparation of the same.

310-C:11 Expiration. All licenses shall expire at 12:01 a.m. on January 1, biennially.

310-C:12 License Renewal. Licenses may be renewed by written application prior to the expiration date and by payment of the prescribed renewal fee. The secretary shall notify each municipal real estate appraiser one month prior to the expiration of such certificate. The applicant shall submit proof of completion of 20 hours of continuing education approved by the board at the time of license renewal, together with a record of any legal action brought against the applicant for services as a municipal real estate appraiser.

310-C:13 Failure to Renew. Failure to remit the biennial renewal fee when due or failure to submit proof of required continuing education shall automatically cancel the license. If properly renewed, a license shall remain in effect continuously from the date of issuance, unless suspended or revoked by the board for just cause. A person whose license is cancelled for such failure may reinstate such license by paying, within one year of cancellation, all fees due, plus a late fee as established by the board, provided continuing education requirements have been met.

310-C:14 Disciplinary Action.

I. The board may undertake disciplinary proceedings:

(a) Upon its own initiative; or

(b) Upon written complaint of any person which charges that a person licensed by the board has committed misconduct under paragraph II, and which specifies the grounds for such complaint. The board may utilize the services of the selectmen or board of assessors or the department of revenue administration in any preliminary gathering of related information.

II. Misconduct sufficient to support disciplinary proceedings under this section shall include:

(a) Fraud or deceit in procuring or attempting to procure a license to practice under this chapter.

(b) Conviction of a felony or any offense involving moral turpitude.

(c) Any unprofessional conduct, or conduct unworthy of, and affecting the practice of municipal appraising.

(d) Unfitness or incompetence by reason of negligent habits or other causes, or negligent or willful acts performed in a manner inconsistent with the interests of persons relying on the professional expertise of the municipal real estate appraiser.

(e) Mental or physical incompetence to practice under this chapter.

(f) Willful or repeated violation of the provisions of this chapter.

(g) Suspension or revocation of a license, issued in another jurisdiction and similar to one issued under this chapter, which was not reinstated.

III. The board may take disciplinary action in any one or more of the following ways and notice of such action shall be provided to newspapers of general circulation in the area in which the licensee practices:

(a) By reprimand.

(b) By suspension, limitation, or restriction of a license for a period of up to 5 years.

(c) By revocation of a license.

(d) By requiring the person to participate in a program of continuing education in the area or areas in which the person has been found deficient.

310-C:15 Hearings. The board shall take no disciplinary action without a hearing. At least 14 days prior to a hearing, all parties to a disciplinary proceeding shall be served, either personally or by certified mail, return receipt requested, with a written copy of the complaint filed and notice of the time and place for hearing. All complaints shall be objectively received and fairly heard by the board, but no complaint shall be acted upon unless in writing. A hearing shall be held on all written complaints received by the board within 3 months of the date of notice of a complaint received by the licensee, unless otherwise agreed to by the parties. Written notice of all disciplinary decisions made by the board shall be given to both parties to the proceeding upon their issuance. Orders of the board shall be subject to rehearing and appeal in the manner prescribed by RSA 541.

310-C:16 Additional Powers; Subpoenas. The board shall have the power to subpoena witnesses and compel, by subpoena duces tecum, the production of books, papers, and documents in a case involving the suspension or revocation of licensure. Any member of the board may administer oaths or affirmations to witnesses appearing before the board.

310-C:17 Violations; Penalty. Any person or business organization who practices or offers to practice municipal real estate appraising in this state for others for compensation without a license in accordance with this chapter, or any person presenting or attempting to use the license or seal of another, or any person who gives any false or forged evidence of any kind to the board or to any board member in obtaining or attempting to obtain a license, or any person who falsely impersonates any other licensed municipal real estate appraiser, or any person who attempts to use an expired or nonexistent or revoked license, or any person who violates any of the provisions of this chapter, shall be guilty of a class B misdemeanor if a natural person, or guilty of a felony if any other person. The board may also impose administrative fines for violations of this chapter in accordance with rules which shall not exceed $2,000 per offense, or in the case of a continuing offense, $250 for each day the violation continues.

310-C:18 Restraint of Violations. The superior court shall have jurisdiction in equity to restrain violations of this chapter on proceedings brought by the attorney general, the board, or any society of licensed municipal real estate appraisers duly incorporated under the laws of this state.

310-C:19 Administrative Costs. The fees established by the board under this chapter shall be sufficient to produce estimated revenues equal to 125 percent of the estimated direct operating expenses of the board pursuant to RSA 332-G:2.

2 Repeal. The following are repealed.

I. RSA 21-J:3, XVIII, relative to appeals for decertification.

II. RSA 21-J:13, XII, relative to rulemaking for certification of appraisers.

III. RSA 21-J:14-f, relative to certification required.

IV. RSA 21-J:14-g, relative to decertification.

V. RSA 21-J:14-j, relative to appraisers in cooperative assessment districts.

VI. RSA 21-J:14-k, relative to unauthorized appraisals.

VII. RSA 21-J:39, IV, relative to penalties for certified appraisers.

VIII. RSA 31:95-g, relative to town authorization for certified appraisers.

3 Effective Date. This act shall take effect January 1, 2008.

LBAO

07-1135

01/29/07

HB 761-FN - FISCAL NOTE

AN ACT establishing the licensure and regulation of municipal real estate appraisers.

FISCAL IMPACT:

    The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from the Real Estate Appraisers Board. When completed, the fiscal note will be forwarded to the House Clerk's Office.