The Texas Appraiser Licensing and Certification Board (TALCB) adopts 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. Section 153.1 is adopted with changes to the proposed text as published in the September 2, 2011, issue of the Texas Register (36 TexReg 5612) and will be republished. Sections 153.5, 153.10, 153.11, 153.13, 153.16, 153.17, 153.20, 153.21, 153.23, 153.26, and 153.27 are adopted without changes and will not be republished.

The amendments implement a number of "housekeeping" provisions of House Bill (HB) 2375, which amended Chapter 1103, Texas Occupations Code, effective May 27, 2011, and 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 adopted through the normal rulemaking process.

Amendments to §153.1, Definitions, modify the definition of "provisional license" to delete references to the statute regarding issuance of a provisional license, as HB 2375 repealed that license category; and add the definition of "USPAP" to reference the Uniform Standards of Professional Appraisal Practice. The change to the rule as adopted that was not in the proposed rule is that the definition of "evaluation" was proposed to be amended but is not being changed in the adopted draft. This revision does not change the nature or scope so much that they it 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 version and does not materially alter the issues raised in the proposed rule.

Amendments to §153.5, Fees, 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 being reduced on an annualized basis and restated as two-year fees, as trainee approvals are being changed from one year to two years in the adopted amendment to §153.10. The amendments 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 change 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.

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

Amendments to §153.11, Examinations, implement the provision of HB 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 amendments 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.

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

Amendments to §153.16, Provisional License, which were adopted on an emergency basis on June 23, 2011, implement HB 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 HB 2375's May 27, 2011 effective date and remain valid until their expiration, the amendments do not repeal the provision regarding the duty to maintain a current log of appraisal activities.

Consistent with changes in HB 2375, amendments to §153.17, Renewal or Extension of Certification and License or Renewal of Trainee Approval, delete provisions regarding the renewal of a provisional license. The amendments further 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 also delete provisions relating to identify theft, as those provisions are being adopted as new §153.26.

Amendments to §153.20, Guidelines for Revocation, Suspension, Denial of Licensure or Certification; Probationary Licensure, implement provisions of HB 2375 that authorize the Board to issue probationary licenses and certifications, subject to reasonable terms and conditions as established by the Board.

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

Amendments to §153.23, Inactive Status, specifically authorize inactive status for trainees.

Amendments to §153.27, Certification and Licensure by Reciprocity, which were adopted on an emergency basis on June 23, 2011, 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 amendments 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.

New §153.26, Identity Theft, constitutes a nonsubstantive 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. The provisions regarding identify theft are being deleted from §153.17, Renewal or Extension of Certification and License or Renewal of Trainee Approval.

The reasoned justification for the amendments is conformance with statutory changes enacted through House Bill 2375, 82nd Legislature, Regular Session (2011) and the need to 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.

One comment was received regarding the amendments as proposed. This comment pointed out that the definition of "evaluation" in §153.1 should not be stated in terms of an opinion of value, as evaluations are distinct from appraisals and the term "opinion" applies only to appraisals. Accordingly, the definition of "evaluation" (referring to an "estimate" of value) is not being modified from the current rule language.

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

The statute affected by this adoption is Texas Occupations Code, Chapter 1103. No other statute, code, or article is affected by the amendments and new section.