GENERAL GOVERNMENT CABINET

Kentucky Real Estate Appraisers Board

(Amendment)

 

      201 KAR 30:070. Grievances.

 

      RELATES TO: KRS 324A.020, 324A.050, 324A.052

      STATUTORY AUTHORITY: KRS 324A.020, 324A.035, 324A.052

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 324A.020 authorizes the board to investigate allegations of wrongdoing. KRS 324A.050 authorizes the board to take disciplinary action against the certificate or license of an appraiser for violations of KRS Chapter 324A. This administrative regulation establishes the procedures for filing grievances with the board.

 

      Section 1. Definitions. (1) "Formal complaint" means a formal administrative pleading authorized by the board that states a charge against a credential holder or applicant and commences a formal disciplinary proceeding pursuant to KRS Chapter 13B.

      (2) "Grievance" means information that a person has allegedly violated the requirements of KRS Chapter 324A or 201 KAR Chapter 30.

 

      Section 2. Grievance and Answers. (1)(a) The board shall process any grievance submitted against a licensee or certificant.

      (b) A grievance against a licensee or a certificant shall be submitted in writing.

      (c) The person or organization who submits a grievance shall be identified within the document.

      (d)[(b)] A grievance shall contain a concise statement of the facts, transaction, or occurrence upon which it is based.

      (e)[(c)] Exhibits or other documents, if applicable, shall be attached to the grievance.

      (f)[(d)] A copy of the grievance and attachments shall be served on the licensee or certificant by the board:

      1. At the last known address of the licensee or certificant; and

      2. By certified mail, return receipt requested.

      (2) If the board receives an anonymous grievance, an investigation shall be conducted if the grievance is accompanied by sufficient corroborating evidence as would allow the board to believe, based upon a totality of the circumstances, that a reasonable probability exists that the grievance is meritorious.

      (3)(a) The licensee or certificant shall file with the board an answer to the grievance.

      (b) The answer shall be filed with the board within twenty (20) days after service of the grievance.

      (c) A copy of the answer shall be served on the grievant by the licensee or certificant, by certified mail, return receipt requested, to the address shown on the grievance.

 

      Section 3. Investigations. (1) The board shall conduct an investigation of the facts alleged in a grievance:

      (a) Upon receipt of a grievance and answer; or

      (b) If an answer is not filed with the board, upon expiration of the period established in Section 2(3)(b)[2(2)(b)] of this administrative regulation.

      (2) A party shall be granted access to information resulting from an investigation that:

      (a) Was conducted by the board or board personnel;

      (b) Was authorized by the board or board personnel; and

      (c) Is related to the subject matter of the grievance.

      (3) A party may rebut or comment upon the information or investigation established in subsection (1) of this section.

      (4) An investigation, or information resulting from an investigation, shall be disclosed to a party if it:

      (a) Was the basis for action appealed by an applicant or appraiser; or

      (b) Relates to the subject matter of a complaint.

      (5) The requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), incorporated by reference in 201 KAR 30:040, shall not apply to the board, its agents, and employees with regard to preparing an investigation for enforcement and disciplinary cases pursuant to this administrative regulation.

      Section 4. Dismissal of Grievance. The board shall dismiss a grievance if the facts stated in the grievance, or facts known to the board upon investigation, fail to establish a violation of KRS 324A.050. The board shall notify the grievant and the licensee or certificant in writing if it dismisses the grievance.

 

      Section 5. Formal Complaints. (1) If the facts alleged constitute a prima facie violation of KRS Chapter 324A, 201 KAR Chapter 30, or USPAP, the board shall issue a formal complaint, in accordance with KRS Chapter 13B, against the credential holder or applicant and proceed pursuant to KRS 324A.052.

      (2) The board may enter into informal settlement with the credential holder.

      (a) A settlement conference shall be convened upon agreement of the parties.

      (b) A person with a relationship to the proceedings who is permitted to attend the settlement conference may include the board’s investigator, executive director, board representative, licensee or certificate holder, and an attorney or attorneys, as applicable.

      (c) If the parties to a settlement conference agree on a stipulation, proposed term, or condition for an agreed order to resolve the complaint, the agreed order shall be forwarded to the board for consideration.

      (d) If the proposed agreed order is approved by the board, the complaint shall be considered resolved and a hearing shall not be held.

 

HAROLD BRANTLEY, Chairperson

      APPROVED BY AGENCY: May 22, 2015

      FILED WITH LRC: June 5, 2015 at 9 a.m.

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on July 21, 2015, at 1:30 p.m., in the office of the Kentucky Real Estate Appraisers Board; 135 W. Irvine Street, Suite 301, Richmond, Kentucky 40475, (859) 623-1658. Individuals interested in attending this hearing shall notify the agency in writing by five workdays prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who attends will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to attend the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until the end of the day on July 31, 2015. Send written notification of intent to attend the public hearing or submit written comments on the proposed administrative regulation to:

      CONTACT PERSON: Larry Disney, Executive Director, Kentucky Real Estate Appraisers Board, 135 W. Irvine Street, Suite 301, Richmond, Kentucky 40475, phone (859) 623-1658, fax (859) 623-2598.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact person: Larry Disney

      (1) Provide a brief summary of

      (a) What this administrative regulation does: This administrative regulation governs the grievance process.

      (b) The necessity of this administrative regulation: This regulation is necessary to establish the process that the board must follow to comply with KRS 324A.052.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: The regulation is in conformity as the authorizing statute gives the board the ability to promulgate regulations regarding who may be certified or licensed and the general requirements for certification or licensure.

      (d) How this administrative regulation will assist in the effective administration of the statutes: This administrative regulation will assist by establishing the grievance and investigation process.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: This amendment requires the identity of a person or organization making a grievance to be included and if not, how the board will handle an anonymous grievance.

      (b) The necessity of the amendment to this administrative regulation: This amendment is necessary so the board maintains the most updated standards of practice within the industry.

      (c) How the amendment conforms to the content of the authorizing statutes: KRS 324A.020 authorizes the board to promulgate regulations to investigate allegations of wrongdoing under this chapter. KRS 324A.052 provides the mechanism for the process of handling grievances and investigations.

      (d) How the amendment will assist in the effective administration of the statutes: This amendment provides how the board can handle anonymous grievances that lack sufficient corroborating evidence to make a determination.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: There are approximately 1,800 persons certified by the board.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either

the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Licensees and certificate holders will not face grievances which are anonymously filed that lack any corroborating evidence.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There are no additional costs for complying with the amendment.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Licensees and certificate holders will not face grievances which are anonymously filed that lack any corroborating evidence.

      (5) Provide an estimate of how much it will cost to implement this administrative regulation:

      (a) Initially: No new costs will be incurred by the changes.

      (b) On a continuing basis: No new costs will be incurred by the changes.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: The board’s operations are funded by fees paid by credential holders.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: No increase in fees or funding will be required to implement the changes made by this regulation.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This administrative regulation does not establish fees or directly or indirectly increase any fees.

      (9) TIERING: Is tiering applied? Tiering was not applied as the regulation is applicable to all certificate holders. This regulation does not distinguish between similarly situated individuals on the basis of any factor.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? Kentucky Real Estate Appraisers Board.

      2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation: 324A.020 and KRS 324A.052.

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. None

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? None

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? None

      (c) How much will it cost to administer this program for the first year? None

      (d) How much will it cost to administer this program for subsequent years? None

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: