Title of Regulation: 18VAC130-20. Real Estate Appraiser Board Rules and Regulations (amending 18VAC130-20-90, 18VAC130-20-130).

Statutory Authority: § 54.1-2013 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: November 21, 2012.

Effective Date: January 1, 2013.

Agency Contact: Christine Martine, Executive Director, Real Estate Appraiser Board, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-8552, FAX (804) 527-4298, or email reappraisers@dpor.virginia.gov.

Basis: Section 54.1-2013 of the Code of Virginia states that the Real Estate Appraiser Board "shall have all the powers under Chapter 2 (§ 54.1-200 et seq.) of Title 54.1 of the Code of Virginia and may do all things necessary and convenient for carrying into effect the provisions of this chapter and all things required or expected of a state appraiser certifying and licensing agency under Title 11 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (12 USC § 3331 et seq.)."

Section 54.1-2013 of the Code of Virginia further states that the board "shall include in its regulations, provisions for the enforcement of standards of professional appraiser practice."

Section 54.1-2017 of the Code of Virginia states, "Each licensed residential real estate appraiser, certified residential real estate appraiser, and certified general real estate appraiser shall comply with the standards of professional appraisal practice and code of ethics adopted by the Board."

Purpose: The board's regulations require that all certified, licensed, and trainee real estate appraiser applicants and licensees be assessed a $21 biennial fee for a copy of the Uniform Standards of Professional Appraisal Practice (USPAP) that is provided to licensees by the board. This $21 fee is subject to the fee charged by the Appraisal Foundation and may be adjusted and charged to the applicant/licensee in accordance with the fee charged by the Appraisal Foundation. The Appraisal Foundation adjusted the fee for each copy of USPAP from $22 to $30 on October 1, 2009. The regulations are being amended to comply with this adjustment by amending the biennial USPAP fee for all certified, licensed, and trainee real estate appraisers from $21 to $30.

Rationale for Using Fast-Track Process: The Appraisal Foundation, the sole source of USPAP, changed the price it charges state appraiser regulatory agencies for a copy of USPAP from $22 to $30 on October 1, 2009. By regulation, the board must provide each appraiser license applicant and licensee with a new copy of USPAP every two years. The board only charges its applicants and licensees $21 every two years for a copy of USPAP. The board is spending $9.00 more than it receives for every copy of USPAP purchased.

This regulatory action should be noncontroversial because all appraisers understand that the board provides them with a copy of USPAP every two years. In addition, the Appraisal Foundation charges state regulatory boards a discount price of $30 for each copy of USPAP, while the Appraisal Foundation charges individual appraisers $75 for each copy of USPAP.

Substance: The Real Estate Appraiser Board's existing regulations are being amended to adjust the fee to cover the actual cost of the copy of USPAP provided by the board to its licensees. The current regulations list the cost of USPAP at $21. The proposed regulations will list the cost of USPAP at $30.

Issues: There appear to be no issues or disadvantages associated with the proposed regulation.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Real Estate Appraiser Board (Board) proposes to raise the biennial fees it charges to certified, licensed and trainee real estate appraisers by $9.

Result of Analysis. There is insufficient data to accurately compare the magnitude of the benefits versus the costs. Detailed analysis of the benefits and costs can be found in the next section.

Estimated Economic Impact. Section 54.1-2013 of the Code of Virginia states that the Board "may do all things necessary and convenient for carrying into effect the provisions of this chapter and all things required or expected of a state appraiser certifying and licensing agency under Title 11 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989." The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) was passed by Congress in 1989 as a result of the savings and loan crisis; it requires the state licensing of real estate appraisers. FIRREA created the Appraisal Subcommittee which monitors and reviews the practices, procedures, activities, and organizational structure of the Appraisal Foundation. The Appraisal Foundation promulgates the Uniform Standards of Professional Appraisal Practice (USPAP) which are the generally accepted appraisal standards by which appraisals must be performed.

The Appraisal Foundation, the sole source of USPAP, changed the price it charges state appraiser regulatory agencies for a copy of USPAP from $22 to $30 on October 1, 2009. By regulation, the Board must provide each appraiser license applicant and licensee with a new copy of USPAP every two years. According to the Department of Professional and Occupational Regulation (Department), significant changes to USPAP occur over the two year period. Currently the Board only charges its applicants and licensees $21 every two years for a copy of USPAP. The Board is spending $9 more than it receives for every copy of USPAP purchased. Thus the proposal to raise the biennial fees it charges to certified, licensed and trainee real estate appraisers by $9 will allow the Board to recover its cost of supplying the USPAP, but does not subsidize any other function. Given that the Appraisal Foundation charges state regulatory boards a discount price of $30 for each copy of USPAP versus $75 per copy to individual appraisers, the Department believes this proposal will be non-controversial.

Businesses and Entities Affected. The proposed amendments affect certified, licensed and trainee real estate appraisers and firms which employ them.

Localities Particularly Affected. The proposed amendments do not disproportionately affect particular localities.

Projected Impact on Employment. The proposal amendments are unlikely to significantly affect total employment.

Effects on the Use and Value of Private Property. The proposed amendments will increase costs for certified, licensed and trainee real estate appraisers by $4.50 per year.

Small Businesses: Costs and Other Effects. The proposed amendments will not significantly affect small businesses.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed amendments will not significantly affect small businesses.

Real Estate Development Costs. The proposed amendments are unlikely to have a large impact on real estate development costs.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency's Response to Economic Impact Analysis: The agency concurs with the approval.

Summary:

The amendments raise the biennial fees charged to certified, licensed, and trainee real estate appraiser applicants and licensees by $9.00 to cover the cost of the Uniform Standards of Professional Appraisal Practice that is provided to licensees by the board.

18VAC130-20-90. Application and registration fees.

There will be no pro rata refund of these fees to licensees who resign or upgrade to a higher license or to licensees whose licenses are revoked or surrendered for other causes. All application fees for licenses and registrations are nonrefundable.

1. Application fees for registrations, certificates and licenses are as follows:

Registration of business entity	$100
Certified General Real Estate Appraiser	$141 $150
Temporary Certified General Real Estate Appraiser	$45
Certified Residential Real Estate Appraiser	$141 $150
Temporary Certified Residential Real Estate Appraiser	$45
Licensed Residential Real Estate Appraiser	$141 $150
Temporary Licensed Residential Real Estate Appraiser	$45
Appraiser Trainee	$96 $105
Upgrade of license	$65
Instructor Certification	$135

Application fees for a certified general real estate appraiser, a certified residential real estate appraiser, a licensed residential real estate appraiser and an appraiser trainee include a $21 $30 fee for a copy of the Uniform Standards of Professional Appraisal Practice. This fee is subject to the fee charged by the Appraisal Foundation and may be adjusted and charged to the applicant in accordance with the fee charged by the Appraisal Foundation.

2. Examination fees. The fee for examination or reexamination is subject to contracted charges to the department by an outside vendor. These contracts are competitively negotiated and bargained for in compliance with the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia). Fees may be adjusted and charged to the candidate in accordance with this contract.

3. An $80 National Registry fee assessment for all permanent license applicants is to be assessed of each applicant in accordance with § 1109 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 USC §§ 3331-3351). This fee may be adjusted and charged to the applicant in accordance with the Act. If the applicant fails to qualify for licensure, then this assessment fee will be refunded.

18VAC130-20-130. Fees for renewal and reinstatement.

A. All fees are nonrefundable.

B. National Registry fee assessment. In accordance with the requirements of § 1109 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, $80 of the biennial renewal or reinstatement fee assessed for all certified general real estate appraisers, certified residential and licensed residential real estate appraisers shall be submitted to the Appraisal Subcommittee. The registry fee may be adjusted in accordance with the Act and charged to the licensee.

Renewal and reinstatement fees for a certified general real estate appraiser, a certified residential real estate appraiser, a licensed residential real estate appraiser and an appraiser trainee include a $21 $30 fee for a copy of the Uniform Standards of Professional Appraisal Practice. This fee is subject to the fee charged by the Appraisal Foundation and may be adjusted and charged to the applicant in accordance with the fee charged by the Appraisal Foundation.

C. Renewal fees are as follows:

	Certified general real estate appraiser	$141 $150
	Certified residential real estate appraiser	$141 $150
	Licensed residential real estate appraiser	$141 $150
	Appraiser trainee	$61 $70
	Registered business entity	$60
	Certified instructor	$125

D. Reinstatement fees are as follows:

	Certified general real estate appraiser	$201 $210
	Certified residential real estate appraiser	$201 $210
	Licensed residential real estate appraiser	$201 $210
	Appraiser trainee	$121 $130
	Registered business entity	$100
	Certified instructor	$230

FORMS (18VAC130-20)

Real Estate Appraiser Board License Application, 40LIC (rev. 1/12).

Real Estate Appraiser Board License Application, 40LIC (rev. 12/12).

Real Estate Appraiser Board Experience Log, 40EXP (rev. 7/10).

Real Estate Appraiser Board Experience Verification Form, 40EXPVER (rev. 4/09).

Real Estate Appraiser Board Experience Requirements, 40EXPREQ (rev. 4/10).

Real Estate Appraiser Board Appraiser Trainee License Application, 40TRLIC (rev. 6/10).

Real Estate Appraiser Board Appraiser Trainee License Application, 40TRLIC (rev. 12/12).

Real Estate Appraiser Board Trainee Supervisor Verification Form, 40TRSUP (rev. 4/09).

Real Estate Appraiser Board Business Registration Application, 40BUS (rev. 12/09).

Real Estate Appraiser Board Pre-License Course Application, 40CRS (rev. 4/09).

Real Estate Appraiser Board Instructor Certificate Application, 40INSTR (rev. 5/09).

Real Estate Appraiser Board Pre-License Renewal Course Application, 40RENCRS (rev. 2/09).

Real Estate Appraiser Board Activate Application, 40ACT (rev. 4/09).

Real Estate Appraiser Board Temporary Appraiser License Application, 40TLIC (rev. 6/10).