GENERAL GOVERNMENT CABINET
Kentucky Real Estate Appraisers Board
RELATES TO: KRS 324A.035(3), 324A.045(2), (3), 12 U.S.C. 3331-3351
STATUTORY AUTHORITY: KRS 324A.015(1), 324A.020, 324A.035(3)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 324A.015(1) and 324A.020 authorize the board to promulgate administrative regulations and perform functions and duties necessary to carry out the provisions of KRS 324A.010 to 324A.090. KRS 324A.035(3) requires the board to establish by administrative regulation requirements for continuing education for appraisers. Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, 12 U.S.C. 3331-3351, establishes requirements for the renewal of certification or licensure of appraisers of real property in federally related transactions. This administrative regulation establishes the continuing education requirements for appraisers.
Section 1. Continuing Education: Number of Hours Required. (1) A certified general real property appraiser, a certified residential real property appraiser, a licensed real property appraiser, and an associate real property appraiser shall:
(a) Complete fourteen (14) hours of board approved continuing education, pursuant to 12 U.S.C. 1116 and 3345, and Section 2 of this administrative regulation, each license year prior to May 16 of the current renewal year; and
(b) Submit to the board proof of course completion prior to May 31 of the current renewal year.
(2) Noncompliance with[
the requirements specified in this administrative regulation[ section]
shall cause the applicant’s renewal application to be late, which shall result
in a $200 late fee for renewal.
Section 2. Continuing Education. (1) Continuing education credit may be granted by the board. If granted, continuing education credit shall be for:
(a) Approved continuing education courses; or
(b) Participation, other than as a student, in appraisal educational programs and processes not to exceed seven (7) hours of the required fourteen (14) hours of continuing education for each licensure year.
(2) Appraisal educational programs and processes shall include:
(a) Teaching a course. Credit for instructing any given course shall only be awarded one (1) time during a continuing education cycle;
(b) Program development;
(c) Authorship of textbooks; or
(d) Similar activities.
(3) Continuing education credit shall be granted if a course:
(a) Is at least two (2) hours in duration;
(b) Subject is designed to ensure that an appraiser's skill, knowledge, and competency in real estate appraisal shall be maintained or increased; and
(c) Has been approved by the board.
(4) Course Approval Program Application for continuing education credit shall be submitted to the board in writing and documented by the approved provider of instruction.
(5) To be approved for continuing education credit, a course shall be consistent with the purpose of continuing education and cover those real property related appraisal topics, including:
(a) Ad valorem taxation;
(b) Arbitration, dispute resolution;
(c) Courses related to the practice of real estate appraisal or consulting;
(d) Development cost estimating;
(e) Ethics and standards of professional practice, USPAP;
(f) Land use planning, zoning;
(g) Management, leasing, timesharing;
(h) Property development, partial interests;
(i) Real estate law, easements, and legal;
(j) Real estate litigation, damages, condemnation;
(k) Real estate financing and investment;
(l) Real estate appraisal related computer applications;
(m) Real estate securities and syndication;
(n) Green building construction;
(o) Impact of seller concessions;
(p) Appraising personal property as a component of real property value; or
(q) Appraising business value as a component of real property value.
(6) Real estate appraisal related field trips shall be acceptable for credit toward the continuing education requirements, except transit time to or from the field trip shall not be included unless instruction occurs during the transit time.
(7)(a) Each credential holder shall successfully complete the seven (7) hour National Uniform Standards of Professional Appraisal Practice Update Course, or its equivalent, between January 1 and May 15 of each even numbered year.
(b) Equivalency shall be evaluated through the Appraiser Qualifications Board Course Approval Program.
(c) USPAP continuing education credit shall only be awarded if the class is instructed by an AQB Certified Instructor who is also a State Certified General Real Property Appraiser or a State Certified Residential Real Property Appraiser.
(8) The board shall defer continuing education requirements for up to 180 days for credential holders:
(a) Returning from active military duty; or
(b) Whose business or residence is located in a county that has been declared a disaster area by the governor or President of the United States.
(9) Credit for repeating the same course title and content within a twenty-four (24) month period shall not be granted.
Section 3. Incorporation by Reference. (1) "Course Approval Program Application", October 2012, is incorporated by reference.
(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the office of the Kentucky Real Estate Appraisers Board, 135 W. Irvine Street, Suite 301, Richmond, Kentucky 40475, Monday through Friday, 8 a.m. to 4:30 p.m.
HAROLD G. BRANTLEY, Chair
APPROVED BY AGENCY: August 14, 2014
FILED WITH LRC: August 14, 2014 at 2 p.m.
PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on September 25, 2014, at 9:00 a.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 this 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 11:59 p.m. on September 30, 2014. 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 establishes continuing education requirements for certified and licensed appraisers.
(b) The necessity of this administrative regulation: This regulation is necessary to comply with Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and to identify the continuing education requirements for certified and licensed appraisers.
(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 continuing education.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This regulation will assist the board in administering this program by setting forth continuing education requirements for certificate holders.
(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 will simplify the reporting period for renewals.
(b) The necessity of the amendment to this administrative regulation: This amendment is necessary to allow the board to review continuing education submission in time for the renewal of a certificate.
(c) How the amendment 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 continuing education.
(d) How the amendment will assist in the effective administration of the statutes: This amendment to the administrative regulation allows the board to ensure that continuing education submissions are made in time for the renewal of a certificate.
(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: A licensee will be required to obtain continuing education for renewal within the period identified.
(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): The licensees will be up to date in the profession.
(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 certificate 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.
FEDERAL MANDATE ANALYSIS COMPARISON
(1) Federal statute or regulation constituting the federal mandate. 12 U.S.C. 3331, 3336, and 3339 and 12 C.F.R. 225.64 and 225.65.
(2) State compliance standards. This administrative regulation requires compliance with the educational requirements promulgated by the Appraisal Qualifications Board of the Appraisal Foundation.
(3) Minimum or uniform standards contained in the federal mandate. The federal mandate requires compliance with the educational requirements promulgated by the Appraisal Qualification Board of the Appraisal Foundation.
(4) Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate? No.
(5) Justification for imposition of the stricter standard, or additional or different responsibilities or requirements. No stricter standard, or additional or different responsibilities or requirements imposed.
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: KRS 324A.035(1), (3), 324A.040(2), 12 U.S.C. 3331-3351.
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.