Bill Text: MI HB5860 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Occupations; appraisers; qualification criteria for appraisers; provide for establishment by rule. Amends secs. 2601 & 2605 of 1980 PA 299 (MCL 339.2601 & 339.2605).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-12-31 - Assigned Pa 433'14 With Immediate Effect 2014 Addenda [HB5860 Detail]
Download: Michigan-2013-HB5860-Engrossed.html
HB-5860, As Passed Senate, December 17, 2014
SUBSTITUTE FOR
HOUSE BILL NO. 5860
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending sections 2601 and 2605 (MCL 339.2601 and 339.2605), as
amended by 2006 PA 414.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2601. As used in this article:
(a) "Appraisal" means an opinion, conclusion, or analysis
relating to the value of real property but does not include any of
the following:
(i) A market analysis performed by a person that is licensed
under article 25 solely for the purpose of assisting a customer or
potential customer in determining the potential sale, purchase, or
listing price of real property or the rental rate of real property
as long as a fee or any other valuable consideration is not charged
for that analysis.
(ii) A market analysis of real property for a fee performed by
a
broker or associate broker who is licensed under article 25 which
that does not involve a federally related transaction if the market
analysis
is put in writing and it states in boldface boldfaced
print "This is a market analysis, not an appraisal and was prepared
by a licensed real estate broker or associate broker, not a
licensed
appraiser.". Failure to do so results in the individual
being
subject to the penalties set forth in article 6.
(iii) An assessment of the value of real property performed on
behalf of a local unit of government that is authorized to impose
property taxes when performed by an assessor who is certified under
section 10d of the general property tax act, 1893 PA 206, MCL
211.10d, or an individual employed in an assessing capacity.
(b)
"AQB criteria" means the all of the following, if
applicable:
(i) The criteria established by the appraiser qualifications
board
of the appraisal foundation or as adopted by rule of the
director.
Until January 1, 2008, AQB criteria means the criteria
entitled
"Real Property Appraiser Qualification Criteria and
Interpretation
of the Criteria", adopted by the appraiser
qualifications
board on February 16, 1994, effective January 1,
1998,
and as revised and effective January 1, 2003. Beginning
January
1, 2008, AQB criteria means the criteria entitled "Real
Property
Appraiser Qualification Criteria and Interpretation of the
Criteria",
adopted by the appraiser qualifications board on
February
20, 2004, effective January 1, 2008.and in effect on the
effective date of the amendatory act that added subparagraph (ii).
The director by rule may amend the criteria described in this
subparagraph if the director determines that an amendment is
required for purposes of this article.
(ii) Any amendments adopted by the appraiser qualifications
board of the appraisal foundation to the criteria described in
subparagraph (i). The director by rule may amend the amendments
described in this subparagraph if the director determines that an
amendment is required for purposes of this article.
(c) "Appraiser" means an individual who is engaged in or
offering to engage in the development and communication of an
appraisal.
(d) "Certified general real estate appraiser" means an
individual who is licensed under section 2610 to appraise all types
of real property, including nonresidential real property involving
federally related transactions and real estate related financial
transactions.
(e) "Certified residential real estate appraiser" means an
individual who is licensed under section 2610 to appraise all types
of residential real property involving real estate related
financial transactions and federally related transactions as
authorized by the regulations of a federal financial institution
regulatory agency and resolution trust corporation as well as any
nonresidential, nonfederally related transaction for which the
individual is qualified.
(f) "Federal financial institution regulatory agency" means
the board of governors of the federal reserve system, the federal
deposit insurance corporation, the office of the comptroller of the
currency, the office of thrift supervision, or the national credit
union administration.
(g) "Federally related transaction" means any real estate
related financial transaction that a federal financial institution
regulatory agency engages in, contracts for, or regulates and that
requires the services of an appraiser under any of the following:
(i) 12 CFR part 323, adopted by the federal deposit insurance
corporation.
(ii) 12 CFR parts 208 and 225, adopted by the board of
governors of the federal reserve system.
(iii) 12 CFR parts 701, 722, and 741, adopted by the national
credit union administration.
(iv) 12 CFR part 34, adopted by the office of the comptroller
of the currency.
(v) 12 CFR parts 506, 545, 563, 564, and 571, adopted by the
office of thrift supervision.
(h) "Limited real estate appraiser" means an individual
meeting
who meets the AQB criteria for appraiser trainee and is
licensed
under section 2610 to perform appraisals of real property
not
involving real estate related financial transactions or
federally
related transactions that require the services of a state
licensed
real estate appraiser, certified residential real estate
appraiser,
or certified general real estate appraiser.those
properties that the state certified supervisory appraiser is
permitted and competent to appraise.
(i) "Real estate related financial transaction" means any of
the following:
(i) A sale, lease, purchase, investment in, or exchange of real
property or the financing of real property.
(ii) A refinancing of real property.
(iii) The use of real property as security for a loan or
investment, including mortgage-backed securities.
(j) "Real property" means an identified tract or parcel of
land, including improvements on that land, as well as any
interests, benefits, or rights inherent in the land.
(k) "Residential real property" means real property used as a
residence containing a dwelling that has not more than 4 living
units.
(l) "State licensed real estate appraiser" means an individual
who is licensed under section 2610 to appraise real property,
including, but not limited to, residential and nonresidential real
property involving federally related transactions and real estate
related financial transactions.
(m) "Uniform standards of professional appraisal practice"
means
those standards all of the
following, if applicable:
(i) Standards relating to real property adopted by the
appraisal
foundation on March 31, 1999, or as adopted by rule of
the
director.and in effect on the
effective date of the amendatory
act that added subparagraph (ii). The director by rule may amend the
standards described in this subparagraph if the director determines
that an amendment is required for purposes of this article.
(ii) Any amendments adopted by the appraiser standards board of
the appraisal foundation to the standards described in subparagraph
(i). The director by rule may amend the amendments described in this
subparagraph if the director determines that an amendment is
required for purposes of this article.
Sec. 2605. (1) At a minimum and subject to subsection (2),
licensees
a licensee under this article who performs an appraisal
shall utilize the uniform standards of professional appraisal
practice that are in effect at the time the licensee is engaged to
perform the appraisal.
(2) The director may supplement or adopt by reference any
amendments to the uniform standards of professional appraisal
practice through the promulgation of rules if the director
determines that the amendments or supplemental standards serve as a
basis for the competent development and communication of an
appraisal and are not in conflict with federal requirements.
(3) The director through promulgation of a rule may supplement
or adopt by reference any changes promulgated by a federal
financial institution regulatory agency relative to standards for a
federally related transaction.
(4) The department shall utilize the AQB criteria regarding
education, examination, and experience for licensure under this
article.
The AQB criteria are adopted by reference. The department
may,
by promulgation of a rule by the director, supplement or amend
the
standards by adoption of a stricter standard that is otherwise
in
compliance with the minimum AQB criteria in effect or by
adoption
of subsequent amendments to that standard adopted by the
appraiser
qualification board of the appraisal foundation.
Enacting section 1. This amendatory act takes effect January
1, 2015.
