The Texas Appraiser Licensing and Certification Board (TALCB) adopts amendments to 22 TAC §159.3, Appraisal Management Company Advisory Committee; §159.105, Denial of Registration or Renewal of Registration; §159.108, Renewal; and §159.155, Periodic Review of Appraisals, with changes to the text of §159.155 as published in the September 7, 2018, issue of the Texas Register (43 TexReg 5746); therefore, the rule will be republished.

The amendments are recommended for adoption with changes by the TALCB Executive Committee and AMC Members of the AMC Advisory Committee following a comprehensive review of this Chapter to better reflect current TALCB procedures and to simplify and clarify where needed and to align the rules with changes to the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board (ASB). The amendments to §159.3 align the rule with Texas Occupations Code §1103.159; clarify that a quorum of the AMC Advisory Committee is three members; and renew the AMC Advisory Committee through September 1, 2022, to coincide with the agency's next quadrennial rule review. The amendments to §159.105 and §159.108 align these rules with other TALCB rules and processes for license or registration renewals. The amendments to §159.155 reduce the percentage of required periodic reviews from five to two percent of reviews performed by an AMC in a twelve-month period; conform the rule to changes to USPAP adopted by the ASB; and align the required scope of work to perform a periodic review to the requirements for performing an appraisal review in USPAP.

The reasoned justification for the amendments is to align TALCB rules with USPAP, conform TALCB rules with current practices, and provide clarity for license holders and members of the public.

Three comments were received on the amendments as published, and one comment was from a trade association. Two commenters supported adoption of the amendments as published. One commenter suggested changing the phrase "appraisal under review" to "work under review" throughout the rule to align the language of the rule with the language of USPAP. This commenter also suggested removing the phrase "real property appraisal consulting conclusions" from subsection (f) to align the rule with USPAP because that phrase is not included in Standards 3 and 4 of USPAP. Members of the AMC Advisory Committee also recommended removing "and USPAP" from subsection (e) of the amendments as published. The Executive Committee recommends the Board adopt the amendments with these changes. TALCB agrees with the Executive Committee's recommendation to adopt the amendments with changes to the text of §159.155.

The revisions to §159.155 as adopted do not change the nature or scope so much that the rule as adopted could be deemed a different rule. The rule as adopted does not affect individuals other than those contemplated by the rule as proposed. The rule as adopted does not impose more onerous requirements than the proposed rule.

The amendments are adopted under Texas Occupations Code §1104.051, which authorizes TALCB to adopt rules necessary to administer Chapter 1104, Texas Occupations Code.

The statute affected by these amendments and rules is Chapter 1104, Texas Occupations Code. No other statute, code or article is affected by the amendments.