GENERAL GOVERNMENT CABINET

Kentucky Real Estate Appraisers Board

(Amendment)

 

      201 KAR 30:200. Reciprocity requirements for applicants licensed or certified in another state.

 

      RELATES TO: KRS 324A.035(1), (3), 324A.065, 324A.075, 12 U.S.C. 3331-3351

      STATUTORY AUTHORITY: KRS 324A.035(1), (3), 324A.075, 12 U.S.C. 3331 - 3351

      NECESSITY, FUNCTION, AND CONFORMITY: 12 U.S.C. 3331 through 3351 requires the board to promulgate administrative regulations for certification and licensure of appraisers of real property in federally related transactions. KRS 324A.075 authorizes the board to issue a license or certification to a person licensed or certified in another state under certain requirements. This administrative regulation establishes the requirements for certification or licensure of persons licensed or certified in another state.

 

      Section 1. General. A licensee from another state who seeks to obtain a certification or license in Kentucky by reciprocity shall obtain a Kentucky real property appraiser certification upon terms and conditions established in this administrative regulation.

 

      Section 2. (1) An individual who is a certified residential or a certified general real property appraiser out-of-state may apply for a Kentucky certification that is the same as the out-of-state certification held by that individual in the other state if the appraiser licensing program of the other state:

      (a) Is in compliance with the provisions of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of Title XI Real Estate Appraisal Reform Amendments (12 U.S.C. 3331-3351) as administered by the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council (FFIEC); and

      (b) Meets or exceeds the minimum certification criteria established by the Appraiser Qualifications Board (AQB) of The Appraisal Foundation upon application.

      (2) To obtain a Kentucky certification issued by the board, an out-of-state applicant shall:

      (a) Complete the Application for Out-of-state Resident Certification;

      (b) File with the board a letter of good standing, license history, the current National Registry Appraiser Report from the National Registry of the ASC, or other proof of good standing issued to the applicant for reciprocity by the out-of-state appraiser regulatory agency;

      (c) Be identified on the National Registry of The Appraisal Subcommittee as an active certified real property appraiser that currently conforms to the AQB criteria;

      (d) Not have received disciplinary action that limited or stopped the ability to complete the practice of real property appraising; and

      (e) Not have lost a license to practice any profession by revocation, suspension, or voluntary surrender[;

      (f) Certify completion of the experience requirements in 201 KAR 30:050, Section 2, for the type of certification requested on the Application for Reciprocal Appraisal License/Certification; and

      (g) Successfully complete a Kentucky real property appraiser law and administrative regulation course developed and offered by the board].

 

      Section 3. Exemption from requirements. No provision of this administrative regulation shall be construed to prohibit the professional appraisal practice activities of any out-of-state certified appraiser who is performing the duties and responsibilities while a direct full-time employee of any entity of the United States government.

 

      Section 4. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Application for Out-of-State Resident Certification", June 2013, Kentucky Real Estate Appraisers Board; and

      (b) "Application for Reciprocal Appraisal License/Certification", June 2013.

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Real Estate Appraisers Board, 135 W. Irvine Street, Suite 301, Richmond, Kentucky 40475, (859) 623-1658, Monday through Friday, 8 a.m. to 4:30 p.m.

     

HAROLD G. BRANTLEY, Chair

      APPROVED BY AGENCY: August 15, 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 the requirements for certification for persons seeking certification who are certified in another state.

      (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 requirements for certified and licensed appraisers from another state to obtain certification or licensure in Kentucky.

      (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 the requirements for certification.

      (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 identifying the requirements for applicants who are certified in another state.

      (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 expands the means for verification of good standing and removes reporting requirements covered elsewhere.

      (b) The necessity of the amendment to this administrative regulation: This amendment allows the board to issue reciprocal licenses.

      (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 the requirements for certification.

(d) How the amendment will assist in the effective administration of the statutes: This amendment allows the board to administer reciprocal licensure.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: The board is unable to determine the exact number of persons currently involved in obtaining licensure or certification by the board from other states, but estimates the number to be under 100 per year.

      (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: The applicants will have to file an application and demonstrate compliance with the requirements set forth in this administrative regulation.

      (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 beyond the standard application fees.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Persons seeking licensure from another state that is in good standing with the federal oversight agency, the Appraisal Subcommittee of the Federal Financial Institutions Examination Council, can be licensed or certified in Kentucky through the process established in this administrative regulation.

      (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 and applicants.

      (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. 3351

      (2) State compliance standards. This administrative regulation requires compliance with the Real Property Appraiser Qualification Criteria and Interpretations which as promulgated by the Appraisal Qualifications Board of the Appraisal Foundation.

      (3) Minimum or uniform standards contained in the federal mandate. The federal mandate requires that persons who are certified by the state must meet the criteria for certification as promulgated by the Appraisal Qualifications Board of the Appraisal Foundation. 12 U.S.C. 3351 mandates that the states institute a reciprocity process for licensure or certification

      (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: 324A.035(1), (3), 324A.075, 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.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: