SB 334-FN – AS AMENDED BY THE SENATE
03/13/08 0466s
03/13/08 0591s
2008 SESSION
10/05
SENATE BILL 334-FN
AN ACT relative to undue influence on real estate appraisals and relative to the quorum of the real estate appraiser’s board.
SPONSORS: Sen. Gallus, Dist 1; Sen. Roberge, Dist 9; Rep. Emerton, Hills 7; Rep. Ingram, Rock 4
COMMITTEE: Executive Departments and Administration
This bill prohibits persons from engaging in undue influence on a real estate appraiser concerning a mortgage loan. The bill also reduces the quorum for the real estate appraiser’s board.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/13/08 0466s
03/13/08 0591s
08-2750
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT relative to undue influence on real estate appraisals and relative to the quorum of the real estate appraiser’s board.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Mortgages of Realty; Appraisals; Undue Influence Prohibited. Amend RSA 479 by inserting after section 30 the following new section:
479:31 Undue Influence Prohibited; Penalty.
I. No person with an interest in a real estate transaction involving an appraisal shall improperly influence or attempt to improperly influence, through coercion, extortion, bribery, or threat, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan. This shall not prohibit a person with an interest in a real estate transaction from asking an appraiser to do any of the following:
(a) Consider additional, appropriate property information.
(b) Provide further detail, substantiation, or explanation for the appraiser’s value conclusion.
(c) Correct errors in the appraisal report.
II. Any person who violates this section shall be guilty of a misdemeanor. If a person who violates this section is licensed under any state licensing law, a violation of this section shall be deemed a violation of that state licensing law.
2 Real Estate Appraisers; Prohibited Conduct. Amend RSA 310-B:5-a to read as follows:
310-B:5-a Prohibited Conduct.
I. A person licensed or certified by the board under this chapter, shall, after a hearing, be subject to disciplinary action as provided in RSA 310-B:18 for being convicted in a court of competent jurisdiction of this or any other state, or federal court, of forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, sexual crimes, drug distribution, arson, physical violence, or any similar offense or offenses; provided that, for the purposes of this section being convicted shall include all instances in which a plea of guilty or nolo contendere is the basis for the conviction, and all proceedings in which the sentence has been deferred or suspended.
II. A person licensed or certified by the board under this chapter who adjusts an appraisal in violation of RSA 479:31 shall be guilty of a misdemeanor and shall be subject to disciplinary proceedings under RSA 310-B:18.
3 Real Estate Appraiser Board; Quorum. Amend RSA 310-B:4, VI to read as follows:
VI. The board shall meet at least once each calendar quarter to conduct its business and more often on call of the chair, or when the chair is requested to do so by 4 or more members of the board. The action of the majority of the members of the board present and voting shall be deemed the action of the board, and at least [5] 4 members shall be present and voting on every vote of the board. Places of future meetings shall be decided by the vote of members at meetings or, in the event of a special meeting, by the chair. Written notice shall be given by the chair to each member of the time and place of each meeting of the board at least 10 days in advance.
4 Hearings; Board Members. Amend RSA 310-B:19 to read as follows:
310-B:19 Hearings. The board shall take no disciplinary action without a hearing. At least 14 days prior to 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 90 days after the date notice of a complaint was received by the accused, unless otherwise agreed to by the parties. Disciplinary hearings shall be conducted within 90 days of receipt of the complaint before at least [5] 4 members of the board. Written notice of all disciplinary decisions made by the board shall be given to all parties to the proceeding upon their issuance. Orders of the board shall be subject to the contested case provisions of RSA 541-A.
5 Effective Date. This act shall take effect upon its passage.
LBAO
08-2750
12/18/07
SB 334-FN - FISCAL NOTE
AN ACT relative to undue influence on real estate appraisals and relative to the quorum of the real estate appraiser’s board.
FISCAL IMPACT:
The Department of Justice, the Judicial Branch, the Judicial Council, and the New Hampshire Association of Counties state this bill may increase state and county expenditures by an indeterminable amount in FY 2009 and each year thereafter. There will be no fiscal impact on local expenditures or state, county, and local revenue.
METHODOLOGY:
The Department of Justice states this bill prohibits persons from engaging in undue influence on a real estate appraiser concerning a mortgage loan and makes it a misdemeanor for any person in violation of this law. The bill also reduces the quorum for the real estate appraiser’s board. The Department of Justice states the criminal offense created by the bill is typically prosecuted by a local prosecutor or a county attorney’s office. If an appeal is filed, the Department would have increased expenditures. The Department is unable to estimate how many cases would be appealed to the Supreme Court.
The Judicial Branch states it has no information to estimate how many misdemeanor charges would be brought as a result of this bill. The Branch states the cost of an unspecified misdemeanor case in the district court is $34.68 in FY 2009 and $35.75 in FY 2010 and each year thereafter. The Branch estimates it would take 289 cases in FY 2009 or 280 cases in FY 2010 and each year thereafter to have a fiscal impact that exceeds $10,000. The Branch also indicates this bill could result in administrative appeals to the Supreme Court following disciplinary proceedings conducted by the licensing board. If a single case were to be appealed to the New Hampshire Supreme Court, the fiscal impact would be in excess of $10,000.
The Judicial Council states this bill may result in increased general fund expenditures but is unable to determine the fiscal impact. The Council states if an individual is found to be indigent, the flat fee of $275 per misdemeanor is charged by a public defender or contract attorney. If an assigned counsel attorney is used, the fee is $60 per hour with a cap of $1,400 (effective January 1, 2008). The Council also states additional costs could be incurred if an appeal is filed. The public defender, contract attorney, and assigned counsel rates for Supreme Court appeals will be $2,000 per case (effective January 1, 2008), with many assigned counsel attorneys seeking permission to exceed the fee cap. However, such motions to exceed the fee cap are seldom granted. Finally, expenditures would increase if services other than counsel are requested and approved by the court during the defense of a case or during an appeal.
The New Hampshire Association of Counties states to the extent any individual is prosecuted, convicted, and sentenced to incarceration, the counties may have increased expenditures. The Association is unable to determine the number of individuals who might be detained or incarcerated as a result of this bill. The average cost to incarcerate an individual in a county facility is $29,000 a year.
The Real Estate Appraiser Board states the change in the quorum requirement will have no fiscal impact on the Board.