The Texas Appraiser Licensing and Certification Board (TALCB) proposes amendments to §§153.1, 153.5, 153.10, 153.11, 153.13, 153.16, 153.17, 153.20, 153.21, 153.23, and 153.27; and new §153.26, concerning Rules Relating to Provisions of the Texas Appraiser Licensing and Certification Act.

The proposed amendments would implement a number of "housekeeping" provisions of House Bill 2375, which amended Chapter 1103, Texas Occupations Code, effective May 27, 2011, and would make other changes to improve the efficiency of processes related to appraiser licensing and regulation. The amendments include certain provisions that were adopted on an emergency basis on June 23, 2011, and are now being proposed through the normal rulemaking process.

Proposed amendments to §153.1, Definitions, would modify the definition of "evaluation" to clarify that appraisal involves opinions, rather than estimates, of value; would modify the definition of "provisional license" to delete references to the statute regarding issuance of a provisional license, as House Bill 2375 repealed that license category; and would add the definition of "USPAP" to reference the Uniform Standards of Professional Appraisal Practice.

Proposed amendments to §153.5, Fees, would increase most application and renewal fees by $10 per two-year licensure period. The trainee application and renewal fees, which were previously for a one-year approval, are proposed to be reduced on an annualized basis and restated as two-year fees, as trainee approvals are proposed to be changed from one year to two years in the proposed amendment to §153.10. The proposed amendments would also reduce from one year to six months the period of time during which a person may renew an expired license by paying a fee of two times the timely renewal fee and would amend a reference to the state treasury to the Texas Treasury Safekeeping Trust Company in accordance with fiscal changes due to the passage of Senate Bill 1000.

Proposed amendments to §153.10, Issuance of Certification, License, or Trainee Approval, would change the license period for a trainee approval from one year to two.

Proposed amendments to §153.11, Examinations, would implement the provision of House Bill 2375 that prohibits an applicant who has failed the examination three times from retaking it until he or she has completed additional education as required by the Board. The proposed amendments would require an applicant who failed by one to five points to take 15 hours of additional education, and applicant who failed by six to ten points to take 30 hours, and so on, with a maximum of 60 hours of additional education.

Proposed amendments to §153.13, Educational Requirements, would mirror previous amendments to §153.18, Appraiser Continuing Education (ACE), to extend clarifications regarding the duration of course approval and the process for revoking the approval of courses, to pre-licensure courses.

Proposed amendments to §153.16, Provisional License, which were adopted on an emergency basis on June 23, 2011, would implement House Bill 2375's repeal of the provisional license category, deleting references to the issuance of such a license. Because there are approximately 20 provisional licenses that were issued prior to House Bill 2375's May 27, 2011 effective date and remain valid until their expiration, the proposed amendments would not repeal the provision regarding the duty to maintain a current log of appraisal activities.

Consistent with changes in House Bill 2375, proposed amendments to §153.17, Renewal or Extension of Certification and License or Renewal of Trainee Approval, would delete provisions regarding the renewal of a provisional license. The proposed amendments would also clarify that a trainee who files a late renewal within one year of expiration must provide evidence of successful completion of the continuing education that would be required for a timely renewal and would also delete provisions relating to identify theft, as those provisions are proposed to be moved to new §153.26.

Proposed amendments to §153.20, Guidelines for Revocation, Suspension, or Denial of Licensure or Certification, would implement provisions of House Bill 2375 that authorize the Board to issue probationary licenses and certifications, subject to reasonable terms and conditions as established by the Board.

Proposed amendments to §153.21, Appraiser Trainees and Sponsors, would change the trainee approval period from one year to two years and clarify that a trainee may be placed on inactive status.

Proposed amendments to §153.23, Inactive Certificate or License, would specifically authorize inactive status for trainees.

Proposed new §153.26, Identity Theft, constitutes a non-substantive reorganization of provisions regarding identity theft related to appraisers and clarifies that the form on which an appraiser who is the victim of identity theft is to report the issue to the Board is the appraiser complaint form. These provisions are proposed to be deleted from §153.17, Renewal or Extension of Certification and License or Renewal of Trainee Approval.

Proposed amendments to §153.27, Certification and Licensure by Reciprocity, which were adopted on an emergency basis on June 23, 2011, would conform the rules regarding issuance of a license or certification by reciprocity to changes made in House Bill 2375 as required by the federal Dodd-Frank Consumer Protection and Wall Street Reform Act. The proposed amendments would extend reciprocity, subject to the usual background check requirements, to licensed and certified appraisers from any state whose appraiser program has not been disapproved by the Appraisal Subcommittee.

Karen Alexander, Director of Staff Services, has determined that for the first five-year period the amendments to §153.5 are in effect there will be fiscal implications for the state, but not to units of local government, as a result of enforcing or administering the amended section. Approximately 450 applicants, 3,050 renewal applicants, and 55 late renewal applicants would be required to pay the increased fees in the remaining months of FY 2012 with estimated revenue of $80,500. For FY 2013, the total estimated revenue would be $96,600. For each of the three years after (FY 2014 - FY 2016), the estimated revenue would be $96,600 per year. There will be no fiscal implications for state or local government as a result of enforcing the amendments to §§153.1, 153.10, 153.11, 153.13, 153.16, 153.17, 153.20, 153.21, 153.23, and 153.27; and new §153.26.

Ms. Alexander has determined that there is no anticipated impact on local or state employment as a result of implementing the amendments. However, there is an anticipated impact on small businesses and micro-businesses as a result of implementing the amendments to §153.5. Approximately 450 applicants, 3,050 renewal applicants, and 55 late renewal applicants would be required to pay an additional $10 per two-year renewal. It is estimated that many of these companies are small businesses or micro-businesses. The projected economic impact of this rule amendment on these small businesses and micro-businesses will be negative due to these increased fees. Under §2006.002, Texas Government Code, an agency is required to consider alternative regulatory methods only if the alternative methods would be consistent with the health, safety and environmental and economic welfare of the state. The Board has developed this proposed rule in accordance the legislative mandate to cover all costs of operation under Senate Bill 1000, 82nd Legislature, Regular Session (2011). Consequently, any variance from the legislative mandate would not be consistent with the health, safety, and environmental and economic welfare of the state, and no alternative regulatory methods have been considered.

Ms. Alexander also has determined that for each year of the first five years the increased fees under §153.5 are in effect the public benefit anticipated as a result of enforcing the amendments is that the agency will raise sufficient revenue to fund costs of agency operations and required payments to the General Revenue Fund and other state agencies under Senate Bill 1000, 82nd Legislature, Regular Session (2011). The anticipated public benefit of the other rules is enforcement of Chapter 1103, Texas Occupations Code, in accordance with the provisions of House Bill 2375.

Comments on the proposed amendments may be submitted to Devon V. Bijansky, General Counsel, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under the Texas Occupations Code, §1103.151, Rules Relating to Certificates and Licenses, and §1103.156, Fees.

The statute affected by this proposal is Texas Occupations Code, Chapter 1103. No other statute, code, or article is affected by the proposed amendments.