Texas Register

TITLE 22 EXAMINING BOARDS
PART 8TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD
CHAPTER 153RULES RELATING TO PROVISIONS OF THE TEXAS APPRAISER LICENSING AND CERTIFICATION ACT
RULE §153.20Guidelines for Revocation, Suspension, Denial of License [Licensure or Certification]; Probationary License [Licensure]
ISSUE 05/30/2014
ACTION Proposed
Preamble Texas Admin Code Rule

(a)The Board [board] may suspend or revoke a license[, certification, authorization or registration issued under provisions of this Act] or deny issuing a license[ , certification, authorization or registration] to an applicant at any time the Board determines that the applicant or license holder [when it has been determined that the person applying for or holding the license, certification, authorization, or registration ]:

  (1)disregards or violates a provision of the Act or [of] the Board rules [Rules of the Texas Appraiser Licensing and Certification Board];

  (2)is convicted of a felony;

  (3)fails to notify the Board [board] not later than the 30th day after the date of the final conviction if the person, in a court of this or another state or in a federal court, has been convicted of or entered a plea of guilty or nolo contendere to a felony or a criminal offense involving fraud or moral turpitude;

  (4)fails to notify the Board [board] not later than the 30th day after the date of incarceration if the person, in this or another state, has been incarcerated for a criminal offense involving fraud or moral turpitude;

  (5)fails to notify the Board [board] not later than the 30th day after the date disciplinary action becomes final against the person with regard to any occupational license the person holds in Texas or any other jurisdiction;

  (6)fails to comply with the USPAP edition [ Uniform Standards of Professional Appraisal Practice (USPAP)] in effect at the time of the appraiser service [appraisal or appraisal practice];

  (7)acts or holds himself or herself or any other person out as a licensed [or certified] real estate appraiser under the Act when not so licensed [or certified];

  (8)accepts payment for appraiser services but fails to deliver the agreed service in the agreed upon manner;

  (9)refuses to refund payment received for appraiser services when he or she has failed to deliver the appraiser service in the agreed upon manner;

  (10)accepts payment for services contingent upon a minimum, maximum, or pre-agreed value estimate except when such action would not interfere with the appraiser's obligation to provide an independent and impartial opinion of value and full disclosure of the contingency is made in writing to the client;

  (11)offers to perform appraiser services or agrees to perform such services when employment to perform such services is contingent upon a minimum, maximum, or pre-agreed value estimate except when such action would not interfere with the appraiser's obligation to provide an independent and impartial opinion of value and full disclosure of the contingency is made in writing to the client;

  (12)makes a material misrepresentation or omission of material fact;

  (13)has had a license [or certification] as an appraiser revoked, suspended, or otherwise acted against by any other jurisdiction for an act which is a crime [an offense] under Texas law;

  (14)procures, or attempts to procure, a license[, certification, authorization, approval, or registration pursuant to the Act] by making false, misleading, or fraudulent representation;

  (15)fails to actively, personally, and diligently supervise an appraiser trainee [under his or her sponsorship] or any person not licensed [ or certified] under the Act who assists the license [licensee or certificate] holder in performing real estate appraiser services;

  (16)has had a final civil judgment entered against him or her on any one of the following grounds:

    (A)fraud;

    (B)intentional or knowing misrepresentation;

    (C)grossly negligent misrepresentation in the performance of [making of real estate] appraiser services;

  (17)fails to make good on a payment issued to the Board [board] within thirty days after the Board [ board] has mailed a request for payment by certified mail to the license holder's [licensee's] last known business address as reflected by the Board's [board's] records;

  (18)knowingly or willfully engages in false or misleading conduct or advertising with respect to client solicitation;

  (19)acts or holds himself or any other person out as a licensed [or certified] real estate appraiser under this or another state's Act when not so licensed [or certified];

  (20)misuses or misrepresents the type of classification or category of license [licensure, certification, approval, or registration, or the license, certification, approval, or registration] number;

  (21)engages in any other act relating to the business of [or] appraising that the Board [board ], in its discretion, believes warrants a suspension or revocation;

  (22)uses any title, designation, initial or other insignia or identification that would mislead the public as to that person's credentials, qualifications, competency, or ability to perform [certified or] licensed appraisal services;

  (23)fails to comply with a final order of the Board [ board];

  (24)fails to answer all inquiries concerning matters under the jurisdiction of the Board [board] within 20 days of notice to said individual's address of record, or within the time period allowed if granted a written extension by the Board [board]; or

  (25)after conducting reasonable due diligence, knowingly accepts an assignment from an appraisal management company that is not exempt from registration under the Act which:

    (A)has not registered with the Board [board ]; or

    (B)is registered with the Board [board] but has not placed the appraiser on its panel of appraisers maintained with the Board [board]; or

  (26)fails to approve, sign, and deliver to their appraiser trainee the appraisal experience log and affidavit required by §153.15(f)(1) and §153.17(c)(1) of this title for all experience actually and lawfully acquired by the trainee while under the appraiser's sponsorship.

(b)The Board [board] has discretion in determining the appropriate penalty for any violation under subsection (a) of this section.

(c)The Board [board] may probate a penalty or sanction, and may impose conditions of the probation, including, but not limited to:

  (1)the type and scope of appraisals or appraisal practice;

  (2)the number of appraiser trainees or authority to sponsor appraiser trainees;

  (3)requirements for additional education;

  (4)monetary administrative penalties; and

  (5)requirements for reporting real property appraisal activity to the Board [board].

(d)A person applying for reinstatement after revocation or surrender of a license [or certification] must comply with all requirements that would apply if the license [or certification ] had instead expired.

(e)The provisions of this section do not relieve a person from civil liability or from criminal prosecution under the Act or other [under the] laws of this State.

(f)The Board [board] may not investigate [under this section] a complaint submitted either more than two years after the date of discovery or more than two years after the completion of any litigation involving the incident, whichever event occurs later, involving the license holder [ state licensed real estate appraiser, provisional licensed appraiser, state certified real estate appraiser, or appraiser trainee] who is the subject of the complaint.

(g)Except as provided by Texas Government Code §402.031(b) and Texas Penal Code §32.32(d), there shall be no undercover or covert investigations conducted by authority of the Act.

[(h)All board members, officers, directors, and employees of this agency shall be held harmless with respect to any disclosures made to the board in connection with any complaints filed with the board.]

(h)[(i)] A license[, certification, authorization or registration] may be revoked or suspended by the Attorney General or other court of competent jurisdiction for failure to pay child support under the provisions of Chapter 232 of the Texas Family Code.

[(j)A certified or licensed appraiser who files a complaint against another certified or licensed appraiser that the board determines to be frivolous is liable for a civil penalty. At the request of the board, the attorney general or a district or county attorney may institute a civil action in district court to collect a penalty under this subsection. A civil penalty under this subsection may not be less than $500 or more than $10,000. A civil penalty recovered in a suit instituted under this subsection shall be deposited in the state treasury to the credit of the general revenue fund.]

(i)[(k)] If the Board [ board] determines that issuance of a probationary license is appropriate, the order entered by the Board [board] with regard to the application must set forth the terms and conditions for the probationary license. Terms and conditions for a probationary license may include any of the following:

  (1)that the probationary license holder [ licensee] comply with the Act and with the rules of the Texas Appraiser Licensing and Certification Board;

  (2)that the probationary license holder [ licensee] fully cooperate with the enforcement division of the [Texas Appraiser Licensing and Certification] Board in the investigation of any complaint filed against the license holder [licensee] or any other complaint in which the license holder [licensee] may have relevant information;

  (3)that the probationary license holder [ licensee] attend a prescribed number of classroom hours in specific areas of study during the probationary period;

  (4)that the probationary license holder [ licensee] limit appraisal practice as prescribed in the order;

  (5)that the probationary license holder [ licensee] work under the direct supervision of a certified general or certified residential appraiser who will review and sign each appraisal report completed;

  (6)that the probationary license holder [ licensee] report regularly to the Board [board] on any matter which is the basis of the probationary license; or

  (7)that the probationary license holder [ licensee] comply with any other terms and conditions contained in the order which have been found to be reasonable and appropriate by the Board [board] after due consideration of the circumstances involved in the particular application.

(k)[(l)] Unless the order granting a probationary license specifies otherwise, a probationary license holder [licensee] may renew the license after the probationary period by filing a renewal application, satisfying applicable renewal requirements, and paying the prescribed renewal fee.

(l)[(m)] If a probationary license expires prior to the completion of a probationary term and the probationary license holder [licensee] files a late renewal application, any remaining probationary period shall be reinstated effective as of the day following the renewal of the probationary [previous ] license.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 19, 2014

TRD-201402339

Kristen Worman

General Counsel

Texas Appraiser Licensing and Certification Board

Earliest possible date of adoption: June 29, 2014

For further information, please call: (512) 936-3652



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