Commerce, Real Estate

Rule R162-110

Trainee Registration

Notice of Proposed Rule

(New Rule)

DAR File No.: 33148
Filed: 11/16/2009 10:38:31 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

In H.B. 86 (2009), the Utah Legislature enacted a requirement that appraiser trainees must undergo a background check in order to register with the Division. The legislation also requires trainees to renew their registrations every two years. This rule implements these requirements. (DAR NOTE: H.B. 86 (2009) is found at Chapter 352, Laws of Utah 2009, and was effective 05/12/2009.)

Summary of the rule or change:

A trainee must undergo a background check and must meet character and competency standards in order to register with the Division. A trainee must also complete pre-registration education, submit application materials, and affiliate with a certified appraiser. The trainee must notify the Division upon changing a supervisory affiliation. Trainees who registered with the Division without undergoing a background check must re-register. Trainees must renew their registrations every two years.

State statutory or constitutional authorization for this rule:

• Subsection 61-2b-8(2)(d)
• Subsection 61-2b-6(4)

Anticipated cost or savings to:

the state budget:

The Division has been registering trainees for several years. The systems and resources for trainee registration are already in place. Similarly, the Division has been conducting background checks for applicants in real estate and mortgage for several years, and it is not anticipated that new resources will be required to conduct background checks for trainee applicants. Finally, it is anticipated that the Division has adequate staff and resources to process trainee renewal applications along with the renewals already being processed for state-licensed and state-certified appraisers.

local governments:

Local governments are not involved in the registration of appraiser trainees.

small businesses:

If small businesses that employ trainees wish to bear the application and fingerprinting costs, they may do so. The current cost to fingerprint and register a trainee is $135.

persons other than small businesses, businesses, or local governmental entities:

It will cost a trainee $135 to fingerprint and register with the Division. Note that the trainee will also bear the costs of the pre-registration education, but that cost has been in place and is not a new cost as a result of this rule. The trainee will also be affected by the fees for renewal. The current fee for renewal of a trainee registration is set at $100.

Compliance costs for affected persons:

Affected persons must pay fees for fingerprinting, registration, and renewal as outlined.

Comments by the department head on the fiscal impact the rule may have on businesses:

As required by recent statutory amendments, this rule filing codifies the requirements for initial and renewal registration for appraiser trainees. No fiscal impact to businesses is anticipated beyond those addressed by the Legislature in passing the statutory amendments.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Real Estate
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at jjonsson@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/31/2009

This rule may become effective on:

01/07/2010

Authorized by:

Deanna Sabey, Director

R162. Commerce, Real Estate.

R162-110. Trainee Registration.

R162-110-1. Trainee Registration.

(1) Registration Required.

(a) An individual who intends to obtain a license to practice as a state-licensed appraiser must first register with the Division as a trainee.

(b) The Division and the Board shall not award or recognize experience hours toward licensure for any appraisal work that is performed by an individual during a period of time when the individual is not validly and currently registered as a trainee.

(2) Character. An individual registering with the Division as a trainee shall evidence honesty, integrity, and truthfulness.

(a) A trainee applicant shall be denied registration for

(i) Any felony that resulted in

(A) a conviction occurring within five years of the date of application; or

(B) a jail or prison release date falling within five years of the date of application.

(ii) Any misdemeanor involving fraud, misrepresentation, theft, or dishonesty that resulted in

(A) a conviction occurring within three years of the date of application; or

(B) a jail or prison release date falling within three years of the date of application.

(b) A trainee applicant may be denied registration upon consideration of the following:

(i) criminal convictions and pleas entered at any time prior to the date of application;

(ii) the circumstances that led to any criminal convictions or pleas under consideration;

(iii) past acts related to honesty or moral character, with particular consideration given to any such acts involving the business of appraising;

(iv) dishonest conduct that would be grounds under Utah law for sanctioning an existing licensee;

(v) civil judgments in lawsuits brought on grounds of fraud, misrepresentation, or deceit;

(vi) court findings of fraudulent or deceitful activity in civil lawsuits;

(vii) evidence of non-compliance with court orders or conditions of sentencing;

(viii) evidence of non-compliance with terms of a probation agreement, plea in abeyance, or diversion agreement; and

(ix) failure to pay taxes or child support obligations.

(3) Competency. An individual registering with the Division as a trainee shall evidence competency. In evaluating an applicant for competency, the Division and Commission may consider any evidence, including the following:

(a) civil judgments, with particular consideration given to any such judgments involving the appraisal business;

(b) failure to satisfy a civil judgment that has not been discharged in bankruptcy;

(c) the extent and quality of the applicant's training and education in appraising;

(d) the extent of the applicant's knowledge of the Utah Real Estate Appraiser Licensing and Certification Act;

(e) evidence of disregard for licensing laws;

(f) evidence of drug or alcohol dependency; and

(g) the amount of time that has passed since any incident under consideration.

(4) Pre-registration Education. Within the five-year period preceding the date of application, an applicant must successfully complete 75 classroom hours of AQB-approved education as follows:

(a) 30 hours of appraisal principles;

(b) 30 hours of appraisal procedures; and

(c) the 15-hour Uniform Standards of Professional Appraisal Practice (USPAP) course.

(5) Examination. An applicant must pass the final examination in all pre-registration courses.

(6) Application to the Division. An applicant shall submit the following to the Division:

(a) a completed application as provided by the Division;

(b) course completion certificates for the 75 hours of pre-registration education;

(c)(i) two fingerprint cards in a form acceptable to the Division; or

(ii) evidence that the applicant's fingerprints have been scanned at a testing center;

(d) all court documents related to any past criminal proceeding;

(e) complete documentation of any sanction taken against any license in any jurisdiction;

(f) a signed letter of waiver authorizing the Division to obtain the fingerprints of the applicant, review past and present employment records, review education records, and conduct a criminal background check;

(g) the fee for the criminal background check; and

(h) the application fee.

(7) Affiliation with a Certified Appraiser. Applicants shall affiliate with at least one supervising certified appraiser and evidence that affiliation by

(a) identifying each supervising certified appraiser on a form supplied by the Division; and

(b) obtaining each supervising certified appraiser's signature on the application.

(8) Notification Requirements. A registered trainee must notify the Division within 10 working days whenever the trainee

(a) affiliates with a new supervising certified appraiser; or

(b) terminates an affiliation with a supervising certified appraiser.

(9) Re-registration of Existing Trainees.

(a) Any trainee who registered with the Division without undergoing a background check shall re-register with the Division according to the following schedule:

(i) a trainee who registered prior to January 1, 2008 must re-register by January 1, 2011;

(ii) a trainee who registered during the 2008 calendar year must re-register in 2011 by the anniversary of the trainee's registration date;

(iii) a trainee who registered on or after January 1, 2009 must re-register on the two-year anniversary of the registration date.

(b) To re-register, a trainee shall submit the following to the Division:

(i) a completed application as provided by the Division;

(ii)(A) two fingerprint cards in a form acceptable to the Division; or

(B) evidence that the applicant's fingerprints have been scanned at a testing center;

(iii) all court documents related to any past criminal proceeding;

(iv) complete documentation of any sanction taken against any license in any jurisdiction;

(v) a signed letter of waiver authorizing the Division to obtain the fingerprints of the applicant, review past and present employment records, review education records, and conduct a criminal background check;

(vi) the fee for the criminal background check;

(vii) evidence of having completed the 28 hours of continuing education or AQB qualifying education required for renewal under Subsection 102-3; and

(viii) the application fee.

(d) A Division hearing officer shall review the application of any trainee re-registering under Subsection (9) who fails to meet the character and competency requirements of Subsections (2) and (3). The hearing officer may

(i) approve the application with the concurrence of the Board;

(ii) approve the application subject to probation or restriction; or

(iii) refer the application to the Board for decision.

(10) Registration Renewal.

(a) A trainee registration is valid for two years and must be renewed according to Subsection 102-3 before the expiration date printed on the registration certificate.

(b) If the renewal fee and required documentation are not received by the expiration date, the registration shall expire. It shall be grounds for disciplinary sanction if, after the registration has expired, the trainee continues to perform work for which the trainee is required to be registered.

(c) An expired registration may be renewed or reinstated according to the same rules that govern the renewal and reinstatement of appraiser licenses and certifications, as outlined in Subsections 102.3.2 through 102.3.4.

 

KEY: real estate appraisals, trainees, registration

Date of Enactment or Last Substantive Amendment: 2010

Authorizing, and Implemented or Interpreted Law: 61-2b-6(4); 61-2b-8(2)(d)