Engrossed House Bill 1797 — State of Washington, 68th Legislature, 2023 Regular Session

Summary

Engrossed House Bill 1797 of the 68th Legislature, 2023 Regular Session, State of Washington, by Representatives Cheney, Goodman, Hutchins, and Graham, read first time February 8, 2023, and referred to Committee on Consumer Protection & Business. The bill relates to residential real estate appraisers being allowed to complete real property evaluations, amends RCW 18.140.030, and adds new sections to chapter 18.140 RCW. Section 1 provides that a state-licensed appraiser or state-certified appraiser may perform evaluations for financial institutions. Section 4 states that the act takes effect upon the adoption of the administrative rules required in Section 3.

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Full text

                           ENGROSSED HOUSE BILL 1797


     State of Washington       68th Legislature         2023 Regular Session

     By Representatives Cheney, Goodman, Hutchins, and Graham

     Read first time 02/08/23.       Referred   to   Committee   on   Consumer
     Protection & Business.




1        AN ACT Relating to residential real estate appraisers being
2    allowed   to  complete   real  property  evaluations;  amending  RCW
3    18.140.030; adding new sections to chapter 18.140 RCW; and providing
4    a contingent effective date.


5    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 6       NEW SECTION. Sec. 1. A new section is added to chapter 18.140
 7   RCW to read as follows:
 8       (1) A state-licensed appraiser or state-certified appraiser may
 9   perform   evaluations   for  financial   institutions.  An   appraiser
10   performing evaluations is not engaged in real estate appraisal
11   activity when the appraiser includes a disclaimer as described in
12   subsection (2) of this section and is not subject to the jurisdiction
13   of the department or commission. The appraiser may choose to comply
14   with the uniform standards of professional appraisal practice.
15       (2) A state-licensed appraiser or state-certified appraiser
16   engaged to perform an evaluation is not engaged in real estate
17   appraisal activity if the evaluation includes a disclaimer that: (a)
18   Is located immediately above the appraiser's signature; and (b)
19   includes the following language in at least 10-point boldface type:
20   "I am a state-licensed appraiser or a state-certified appraiser. This
21   evaluation was not prepared in my capacity as a real estate appraiser
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1    and might not comply with the uniform standards of professional
2    appraisal practice."
3        (3) As used in this section, "evaluation" means an opinion of the
4    market value of real property or real estate provided to a financial
5    institution in conformance with the interagency appraisal and
6    evaluation guidelines adopted jointly by the federal financial
7    institution's regulatory agencies for use in real estate-related
8    financial transactions that do not require an appraisal.

 9       Sec. 2.   RCW 18.140.030 and 2005 c 339 s 4 are each amended to
10   read as follows:
11       The director shall have the following powers and duties:
12       (1) To adopt rules in accordance with chapter 34.05 RCW necessary
13   to implement this chapter and chapter 18.235 RCW, with the advice and
14   approval of the commission;
15       (2) To receive and approve or deny applications for certification
16   or licensure as a state-certified or state-licensed real estate
17   appraiser and for registration as a state-registered appraiser
18   trainee under this chapter; to establish appropriate administrative
19   procedures for the processing of such applications; to issue
20   certificates, licenses, or registrations to qualified applicants
21   pursuant to the provisions of this chapter; and to maintain a roster
22   of the names and addresses of individuals who are currently
23   certified, licensed, or registered under this chapter;
24       (3) To provide administrative assistance to the members of and to
25   keep records for the real estate appraiser commission;
26       (4) To solicit bids and enter into contracts with educational
27   testing services or organizations for the preparation of questions
28   and answers for certification or licensure examinations;
29       (5) To administer or contract for administration of certification
30   or licensure examinations at locations and times as may be required
31   to carry out the responsibilities under this chapter;
32       (6) To enter into contracts for professional services determined
33   to be necessary for adequate enforcement of this chapter;
34       (7) To consider recommendations by the real estate appraiser
35   commission relating to the experience, education, and examination
36   requirements for each classification of state-certified appraiser and
37   for licensure;



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 1       (8) To consider recommendations by the real estate appraiser
 2   commission relating to the educational requirements for the state-
 3   registered appraiser trainee classification;
 4       (9) To consider recommendations by the real estate appraiser
 5   commission relating to the maximum number of state-registered
 6   appraiser trainees that each supervisory appraiser will be permitted
 7   to supervise;
 8       (10) To consider recommendations by the real estate appraiser
 9   commission relating to continuing education requirements as a
10   prerequisite to renewal of certification or licensure;
11       (11) To consider recommendations by the real estate appraiser
12   commission relating to standards of professional appraisal conduct or
13   practice in the enforcement of this chapter;
14       (12) To employ such professional, clerical, and technical
15   assistance as may be necessary to properly administer the work of the
16   director;
17       (13) To establish forms necessary to administer this chapter;
18       (14) To establish an expert review appraiser roster comprised of
19   state-certified or licensed real estate appraisers whose purpose is
20   to assist the director by applying their individual expertise by
21   reviewing real estate appraisals for compliance with this chapter.
22   Qualifications to act as an expert review appraiser shall be
23   established by the director with the advice of the commission. An
24   application to serve as an expert review appraiser shall be submitted
25   to the real estate appraiser program, and the roster of accepted
26   expert review appraisers shall be maintained by the department. An
27   expert review appraiser may be added to or deleted from that roster
28   by the director. The expert review appraiser shall be reimbursed for
29   expenses in the same manner as the department reimburses the
30   commission; and
31       (15) To do all other things necessary to carry out the provisions
32   of this chapter and minimally meet the requirements of federal
33   guidelines regarding state certification or licensure of appraisers
34   and registration of state-registered appraiser trainees that the
35   director determines are appropriate for state-certified and state-
36   licensed appraisers and state-registered appraiser trainees in this
37   state, except as provided for in section 1 of this act.


38       NEW SECTION. Sec. 3.   A new section is added to chapter 18.140
39   RCW to read as follows:
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 1       (1) The department shall adopt rules to:
 2       (a) Require, beginning on January 1, 2024, all initial applicants
 3   for the state-registered appraiser trainee, state-licensed real
 4   estate appraiser, state-certified residential real estate appraiser,
 5   or state-certified general real estate appraiser certification to
 6   complete a seven-hour qualifying course with an examination on the
 7   topics of valuation bias and fair housing laws and regulations as
 8   part of the core modules required for registration, licensure, or
 9   certification pursuant to rules adopted by the director;
10       (b) Require, prior to January 1, 2025, all holders of an active
11   or inactive certification, licensure, or registration to complete a
12   seven-hour continuing education course on the topics of valuation
13   bias and fair housing laws and regulations as part of the continuing
14   education requirement pursuant to rules adopted by the director; and
15       (c) Requiring, beginning January 1, 2026, all holders of an
16   active or inactive certification, licensure, or registration to
17   complete a four-hour continuing education course of the topics of
18   valuation bias and fair housing laws and regulations as part of the
19   continuing education requirement pursuant to rules adopted by the
20   director.


21       NEW SECTION.     Sec. 4.   (1) This act takes effect upon the
22   adoption of the administrative rules required in section 3 of this
23   act.
24        (2) The department must provide written notice of the effective
25   date of this section to affected parties, the chief clerk of the
26   house of representatives, the secretary of the senate, the office of
27   the code reviser, and others as deemed appropriate by the department.

                                  --- END ---




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