Overview

HB 2239 makes various changes to the powers, duties and regulations of the Arizona Board of Appraisal

History

Established by Laws 1990, Chapter 313, the Arizona Board of Appraisal’s (Board) mission is to promote quality real estate appraisal in Arizona that protects the health, safety and welfare of the public. The Board accomplishes its mission by implementing national education, experience and examination requirements and regulating appraisers, appraisal management companies (AMCs) and property tax agents. The Board administers appraiser licenses and certifications, AMC and property tax agent registrations, complaint investigations and issuances of disciplinary action.

In April 2013, the Office of the Auditor General (OAG) conducted a performance audit pursuant to Arizona Revised Statutes (A.R.S.) § 32-3604. The OAG recommended to the Board to improve its complaint resolution process to better protect the public; request background investigations for AMCs that register with the Board to ensure compliance with statutory requirements; provide prompt and complete complaint and disciplinary information; and ensure compliance with open meeting law.

The Board is a 90/10 board and does not receive State General Fund monies and is primarily funded from application, renewal and registration fees. According to the OAG, as of November 2012, the Board had a total of 2,181 active appraisers.

Provisions

Duties and Registration Process

Specifies that the Board may not consider a complaint for administrative action as follows:

If the complaint was submitted five years after the appraisal was completed or two years after the final disposition of any judicial proceeding.

If the complaint relates to the performance of the Board.

Allows the Board to consolidate complaints if:

The complaint was made against the same appraiser within a six-month period.

The complaint is relative to the same appraisal and property.

The complaint is filed by an entity subject to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

  • Prohibits an applicant from having a revoked license or certificate within five years of applying to the Board, rather than two years (current law).

Disciplinary Order and Judicial Review

  • Authorizes the Board to assess periods and terms of probation and impose civil penalties.
  • Enables the Board to collect monies for the expenses incurred of a prevailed formal hearing from an applicant, trainee, appraiser or property tax agent.
  • Allows and applicant, trainee, appraiser or property tax agent of a prevailing case to collect expenses associated with the formal hearing from the Board.
  • Stipulates that the Board may spend reimbursed monies from a prevailed judicial proceeding without legislative appropriation.
  • Asserts the Board may impose a civil penalty up to $3000 per complaint filed with the Board and monies be deposited into the State General Fund.
  • Clarifies that the Board may investigate the actions of a trainee or registered appraiser in this state and any other state.

Fingerprint Clearance Cards

  • Removes the requirement for a criminal background check for applicants and instead requires a valid fingerprint clearance card.
  • Repeals the sections of Title 41 regarding definitions associated with the Board of Fingerprinting and definitions and duties associated with the Fingerprinting Division.

Miscellaneous

  • Increases the surety bond from $20,000 to between $20,000 and $50,000.
  • Eliminates the requirement of mailing in renewal applications within 60-90 days before the renewal date.
  • Clarifies that the failure to pay a Board imposed fee is considered unprofessional conduct.
  • Revises references to federal law and uniform standards.