TITLE 22.EXAMINING BOARDS

Part 8. TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD

Chapter 151. RULES RELATING TO PRACTICE AND PROCEDURE

The Texas Appraiser Licensing and Certification Board adopts the repeal of §§151.1-151.8, 151.9-151.14 and 151.15-151.19 and 151.30, concerning General Provisions, Contested Case Hearings and Post Hearing, without changes to the proposed text as published in the December 22, 2000, issue of the Texas Register (25 TexReg 12574) and will not be republished.

Chapter 151 is being repealed and replaced with new Chapter 157, which is contemporaneously adopted elsewhere in this issue of the Texas Register . Section 151.1, concerning Definitions, has been combined with the definitions in §153.1. Chapter 151 is being relocated to Chapter 157 so that Chapter 153 concerning Provisions of the Texas Appraiser Licensing and Certification Act, are the first set of rules that appear in the Texas Administrative Code.

No comments were received regarding adoption of the rules.

Subchapter A. GENERAL PROVISIONS

22 TAC §§151.1-151.8

The repeals are adopted under the Powers and Duties of the Board, Texas Appraiser Licensing and Certification Act, §5, (a) (1), (2), (3), and (7) (Texas Civil Statutes, Article 6573a.2), and §14(c), Certificate and License Renewal.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 26, 2001.

TRD-200101157

Renil C. Linér

Commissioner

Texas Appraiser Licensing and Certification Board

Effective date: April 1, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 465-3950


Subchapter B. CONTESTED CASE HEARINGS

22 TAC §§151.9-151.14

The repeals are adopted under the Powers and Duties of the Board, Texas Appraiser Licensing and Certification Act, §5, (a) (1), (2), (3), and (7) (Texas Civil Statutes, Article 6573a.2), and §14(c), Certificate and License Renewal.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 26, 2001.

TRD-200101158

Renil C. Linér

Commissioner

Texas Appraiser Licensing and Certification Board

Effective date: April 1, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 465-3950


Subchapter C. POST HEARING

22 TAC §§151.15-151.19, 151.30

The repeals are adopted under the Powers and Duties of the Board, Texas Appraiser Licensing and Certification Act, §5, (a) (1), (2), (3), and (7) (Texas Civil Statutes, Article 6573a.2), and §14(c), Certificate and License Renewal.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 26, 2001.

TRD-200101159

Renil C. Linér

Commissioner

Texas Appraiser Licensing and Certification Board

Effective date: April 1, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 465-3950


Chapter 153. PROVISIONS OF THE TEXAS APPRAISER LICENSING AND CERTIFICATION ACT

22 TAC §§153.1, 153.5, 153.7-153.10, 153.13, 153.15-153.22, 153.25

The Texas Appraiser Licensing and Certification Board adopts amendments to §§153.1, 153.5, 153.7-153.10, 153.13, 153.15-153.22 and 153.25, concerning Provisions of the Texas Appraiser Licensing and Certification Act. Sections 153.1, 153.8, 153.13 and 153.18 are adopted with changes to the proposed text as published in the December 22, 2000, issue of the Texas Register (25 TexReg 12574). Sections 153.5, 153.7, 153.9, 153.10, 153.15-153.17, 153.19-153.22 and 153.25 are adopted without changes to the proposed text as published in the December 22, 2000, issue of the Texas Register (25 TexReg 12574) and will not be republished.

Section 153.1--the words "this chapter" have been changed to "these rules" because the definitions from §151.1 and §153.1 have been combined. Section 153.1 has been updated to remove irrelevant wording and includes current information. Section 153.1 also includes new definitions for Complaining Witness, Contested Case, Day, License, Licensee, Licensing, Market Analysis, Party, Petitioner, Record, Respondent, Restricted use appraisal report and Summary appraisal report. In addition to the proposed changes, the definition for paragraph (18) "Day" is adopted with changes to include a capital A instead of a lower case a.

Section 153.5 combines old (a)(1) and (a)(2) to make the fees the same for original licensing and renewals, as they are for other categories. Section 153.5 also raises the renewal fee for the State License category from $100 to $125 and raises the application fee and renewal fees for appraiser trainees from $50 to $75 for a one year approval and includes a new fee of $150 for temporary non-resident appraisers. This includes a "free" 150 day extension for temporary non-resident appraisers in "federally related transactions".

Section 153.7 removes the unnecessary hyphens between "state" and "certified".

Section 153.8 contains general "clean up" to remove unnecessary language and to update the rule. Section 153.8(b) and (c) contain a new paragraph (4) which would allow a residential certified appraiser to appraise non-residential properties (for the purpose of gaining experience). Section 153.8(e)(1) contains new language that reinforces the "active, personal and diligent supervision" by sponsors for appraiser trainees (as found in §153.20(a)(12)). In addition to the proposed changes, subsections (b)(4) and (c)(4) have been adopted with changes to reflect the correct title, "state certified general real estate appraiser " rather than a general certified real estate appraiser.

Section 153.9 contains a new subsection (a)(5) which "satisfies all unresolved enforcement matters and requirements with the board". Section 153.9(b)(1)-(9) removes all specific TALCB form numbers. Section 153.9(b) contains a new paragraph (10)--Extension of Non-Resident Temporary Practice Registration form. Section 153.9(e) adds non-resident temporary practice to the list. Section 153.9 contains a new subsection (f) which strengthens the language regarding denial of licensure. Section 153.9 contains a new subsection (h) regarding current operational policy.

Section 153.10(a) adds "approved", "approval" and registered to better reflect "approved appraiser trainee" classification. Section 153.10(b) adds "approval" and "registration".

Section 153.13 has been "cleaned up" to allow he rules to be clear and concise and to conform the language to AQB criteria. Section 153.13(m)(4) allows an "equivalent" USPAP course, as determined by the AQB to be acceptable and conforms to AQB policy. In addition to the proposed changes, subsection (e)(3) has been adopted with changes to add the closing parenthesis to "(relating to distance education)"

Section 153.15 updates the rule throughout to make certain that only "real estate" appraisal counts for experience. Section 153.15(d)(8) conforms to AQB criteria and removes unnecessary stop-gap language. Teaching has not been acceptable for meeting the experience requirements for the TALCB since January 1, 1998. Section 153.15(f)(4) is new and necessary to reduce confusion.

Section 153.16(a) puts the responsibility on the appraiser trainee applicant to really try to find a sponsor.

Section 153.17(a) contains the terms for appraiser trainee. Section 153.17(b) reinforces licensee's responsibility to renew in time. Section 153.17(g) is broken down to paragraphs (1)-(3) for clearer understanding.

Section 153.18(b) changes "authorization" to "approval". Paragraphs (1) and (2) have been reworded to reduce confusion. Paragraph (3) has been deleted to remove unnecessary language. Section 153.18(d)(2)(B) conforms the paragraph with §14(b) of the Act. Section 153.18(d)(2)(F)(ii) adds "or its successor". Section 153.18(d)(2)(H)(iv) allows the national USPAP Update course (when developed), or its equivalent as determined by the AQB, as an alternative. In addition to the proposed changes, subsection (d)(2)(F)(ii) is adopted with changes to include a comma after the word, "successor".

Section 153.19 has updated the section title to "Criminal Histories" rather than "Criminal Backgrounds".

Section 153.20(a)(3) is new and contains "failing to comply with USPAP" as a reason for disciplinary action. Section 153.20(a)(12) has been updated for trainees and non-resident temporary practice. Section 153.20(18) is a new paragraph and reinforces prohibition of misrepresentation of type or number of license. Section 153.20 adds a new subsection (c) and specifies what is current practice.

Section 153.21 adds "and Sponsors" to the section heading since the chapter deals with both appraiser trainees and their sponsors. Section 153.21(a) deletes hyphens between "appraiser" and "trainee". Also §153.21(a) helps tighten up the sponsor/trainee relationship by adding "active personal and diligent". Section 153.21(a)(1) updates the rule because an experience log is required for Appraiser Trainees and Provisional Licensees to renew. Section 153.21(d) changes the word "and" to "or". Section 153.21 contains new subsections (f), (g) and (h) which require sponsor and trainee to be Texas residents, contact the appraiser trainee through the sponsor's address and to make sure that an appraiser trainee does not misrepresent his/her level, and to alert the user of the appraisal service that a trainee and not a certified licensed appraiser prepared the report.

Section 153.22(a) updates the subsection to be clear and concise.

Section 153.25(d)(3) updates the rule to allow fax forms to qualify and also deletes unnecessary language.

No comments were received regarding adoption of the rules.

The amendments are adopted under the Powers and Duties of the Board, Texas Appraiser Licensing and Certification Act, §5, (a) (1), (2), (3), and (7) (Texas Civil Statutes, Article 6573a.2), and §14(c), Certificate and License Renewal.

§153.1.Definitions.

The following words and terms, when used in these rules, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Act--The Texas Appraiser Licensing and Certification Act.

(2)

Analysis--The act or process of providing information, recommendations or conclusions on diversified problems in real estate other than estimating value.

(3)

Applicant--A person seeking a certification, license, approval as an appraiser trainee, or non-resident temporary registration from the board.

(4)

Appraisal--The act or process of estimating value, or an estimate or an opinion of value.

(5)

Appraisal Standards Board--The Appraisal Standards Board (ASB) of the Appraisal Foundation or its successor.

(6)

Appraisal Subcommittee--The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council or its successor.

(7)

Appraiser Qualifications Board--The Appraiser Qualifications Board (AQB) of the Appraisal Foundation or its successor.

(8)

Appraiser trainee--A person approved by the Texas Appraiser Licensing and Certification Board to perform appraisals or appraiser services under the active, personal and diligent supervision and direction of the sponsoring certified appraiser.

(9)

Board--The Texas Appraiser Licensing and Certification Board.

(10)

Classroom hour--Fifty minutes of actual classroom session time.

(11)

Client--Any party for whom an appraiser performs a service.

(12)

College--junior or community college, senior college, university, or any other postsecondary educational institution established by the Texas Legislature, which is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools or like commissions of other regional accrediting associations, or is a candidate for such accreditation.

(13)

Commissioner--The commissioner of the Texas Appraiser Licensing and Certification Board.

(14)

Complaining witness--Any person who has made a written complaint to the board against any person subject to the jurisdiction of the board.

(15)

Complete appraisal--An appraisal performed without invoking the departure rule.

(16)

Contested case--A proceeding in which the legal rights, duties or privileges of a party are to be determined by the board after an opportunity for adjudicative hearing.

(17)

Council--The Federal Financial Institutions Examination Council (FFIEC) or its successor.

(18)

Day--A calendar day unless clearly indicated otherwise.

(19)

Departure rule--A limited departure from a requirement of the Uniform Standards of Professional Appraisal Practice, as defined by the USPAP.

(20)

Distance education--Any educational process based on the geographical separation of learner and instructor (e.g., CD-ROM, online learning, correspondence courses, video conferencing, etc.), that provides interaction between the learner and instructor and includes testing.

(21)

Evaluation--An estimate of value that is not more than a limited appraisal, may be presented in a format that is less than a self-contained report, is prepared by a certified or licensed real estate appraiser or other lawfully authorized real estate professional, and includes an estimate of a property's market value, a certification and limiting conditions, and an analysis or the supporting information used in forming the estimate of value.

(22)

Feasibility analysis--A study of the cost-benefit relationship of an economic endeavor.

(23)

Federal financial institution regulatory agency--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, the National Credit Union Administration, or the successors of any of those agencies.

(24)

Federally related transaction--Any real estate-related transaction engaged in, contracted for, or regulated by a federal financial institution regulatory agency, that requires the services of an appraiser.

(25)

Foundation--The Appraisal Foundation (TAF) or its successor.

(26)

Fundamental real estate appraisal course--Basic real estate appraisal courses which include the following topics, but are not limited to, principles of real estate appraisal, real estate appraisal practice, real estate appraisal procedures, highest and best use, report writing, rural appraisal, appraisal review, residential appraisal/valuation, agricultural property appraisal, sales comparison approach, cost approach, income capitalization, discounted cash flow analysis, real estate appraisal case studies, commercial appraisal, non-residential real estate appraisal, and other courses specifically determined by the board.

(27)

License--The whole or a part of any board permit, certificate, approval, registration or similar form of permission required by law.

(28)

Licensee--a person certified, licensed, approved, authorized or registered by the board under the Texas Appraiser Licensing and Certification Act.

(29)

Licensing--Includes the board processes respecting the granting, disapproval, denial, renewal, certification, revocation, suspension, annulment, withdrawal or amendment of a license.

(30)

Limited appraisal--An appraisal in which the departure rule is invoked.

(31)

Market analysis--A study of market conditions for a specific type of property.

(32)

Non-residential real estate appraisal course--A course with emphasis on the appraisal of non-residential real estate properties which include, but are not limited to, income capitalization, income property, commercial appraisal, rural appraisal, agricultural property appraisal, discounted cash flow analysis, subdivision analysis and valuation, or other courses specifically determined by the board.

(33)

Nonresidential property--A property which does not conform to the definition of residential property.

(34)

Party--The board and each person or other entity named or admitted as a party.

(35)

Person--An individual.

(36)

Personal property--Identifiable tangible objects and chattels that are considered by the general public as being "personal," for example, furnishings, artwork, antiques, gems and jewelry collectibles, machinery and equipment ; all tangible property that is not classified as real estate.

(37)

Petitioner--The person or other entity seeking an advisory ruling, the person petitioning for the adoption of a rule, or the party seeking affirmative relief in a proceeding before the board.

(38)

Provisional license--A license issued under the Texas Appraiser Licensing and Certification Act, §9A, and §153.16 of this title (relating to Provisional License), to individuals who have met the educational and examination requirements for licensing but who have not met the experience requirements.

(39)

Real estate--An identified parcel or tract of land, including improvements, if any.

(40)

Real estate-related financial transaction--Any transaction involving: the sale, lease, purchase, investment in, or exchange of real property, including an interest in property or the financing of property; the financing of real property or an interest in real property; or the use of real property or an interest in real property as security for a loan or investment including a mortgage-backed security.

(41)

Real property--The interests, benefits, and rights inherent in the ownership of real estate.

(42)

Record--All notices, pleadings, motions and intermediate orders; questions and offers of proof; objections and rulings on them; any decision, opinion or report by the board; and all staff memoranda submitted to or considered by the board.

(43)

Report--Any communication, written or oral, of an appraisal, review, or analysis; the document that is transmitted to the client upon completion of an assignment.

(44)

Residential property--Property that consists of at least one but not more than four residential units.

(45)

Respondent--Any person or other entity subject to the jurisdiction of the board against whom any complaint has been made.

(46)

Restricted use appraisal report--A written report as defined by and prepared under the USPAP.

(47)

Review--The act or process of critically studying a report prepared by another.

(48)

Self-contained appraisal report--A written report as defined by and prepared under the USPAP.

(49)

State certified real estate appraiser--A person certified under the Texas Appraiser Licensing and Certification Act.

(50)

State licensed real estate appraiser--A person licensed under the Texas Appraiser Licensing and Certification Act.

(51)

Summary appraisal report--A written report as defined by and prepared under the USPAP.

§153.8.Scope of Practice.

(a)

Certified General Real Estate Appraisers:

(1)

may appraise of all types of real property without regard to transaction value or complexity; and

(2)

are bound by the Competency Rule and all other provisions of the Uniform Standards of Professional Appraisal Practice (USPAP) in effect at the time of the appraisal.

(b)

Certified Residential Real Estate Appraisers:

(1)

may appraise one-to-four residential units without regard to transaction value or complexity;

(2)

may appraise vacant or unimproved land for which the highest and best use is for one-to-four family purposes;

(3)

may not appraise subdivisions;

(4)

may associate with a state certified general real estate appraiser, who shall sign the appraisal report, to appraise non-residential properties; and

(5)

are bound by the Competency Rule and all other provisions of the USPAP in effect at the time of the appraisal.

(c)

State Licensed Real Estate Appraisers:

(1)

may appraise non-complex one-to-four residential units having a transaction value less than $1 million and complex one-to-four residential units having a transaction value less than $250,000;

(2)

may appraise vacant or unimproved land for which the highest and best use is for one to four family purposes;

(3)

may not appraise subdivisions;

(4)

may associate with a state certified general real estate appraiser, who shall sign the appraisal report, to appraise non-residential properties; and

(5)

are bound by the Competency Rule and all other provisions of the USPAP in effect at the time of the appraisal.

(d)

Provisional Licensed Real Estate Appraisers:

(1)

may appraise the same types of properties as a State Licensed Real Estate Appraiser; and

(2)

are bound by the Competency Rule and all other provisions of the USPAP in effect at the time of the appraisal.

(e)

Appraiser Trainees:

(1)

may appraise those properties, under the active, personal and diligent supervision of their sponsoring certified appraiser, which the supervising certified appraiser sponsor is permitted to appraise; and

(2)

shall be subject to the USPAP in effect at the time of the appraisal.

§153.13.Educational Requirements.

(a)

General Real Estate Appraiser Certification.

(1)

Applicants for General Real Estate Appraiser Certification must have successfully completed 180 classroom hours in courses approved by the board which meet the requirements as set out in subsections (d)-(n) of this section.

(2)

Of these 180 classroom hours, at least 90 classroom hours must be in fundamental real estate appraisal courses specifically approved by the board, and at least 15 classroom hours must be in a class devoted to the Uniform Standards of Professional Appraisal Practice completed within two years prior to submission of the application. At least 30 classroom hours of the fundamental real estate appraisal course requirements must be in courses with emphasis on the appraisal of non-residential properties.

(b)

Residential Real Estate Appraiser Certification.

(1)

Applicants for Residential Real Estate Appraiser Certification must have successfully completed 120 classroom hours in courses approved by the board which meet the requirements as set out in subsections (d)-(n) of this section.

(2)

Of these 120 classroom hours, at least 60 classroom hours must be in fundamental real estate appraisal courses specifically approved by the board, and at least 15 classroom hours must be in a class devoted to the Uniform Standards of Professional Appraisal Practice completed within two years prior to submission of the application.

(c)

Real Estate Appraiser License or Provisional License.

(1)

Applicants for a Real Estate Appraiser License or Provisional License must have successfully completed 90 classroom hours in courses approved by the board which meet the requirements as set out in subsections (d)-(n) of this section.

(2)

Of these 90 classroom hours, at least 40 classroom hours must be in fundamental real estate appraisal courses specifically approved by the board, and at least 15 classroom hours must be in a class devoted to the Uniform Standards of Professional Appraisal Practice completed within two years prior to submission of the application.

(d)

The board may accept a course of study to satisfy educational requirements for certification or licensing established by the Act or by this section if the board has approved the course and determined it to be a course related to real estate appraisal.

(e)

The board may approve courses submitted or to be submitted by applicants for appraiser certification upon a determination of the board that:

(1)

the subject matter of the course was appraisal related; provided that core real estate courses set forth in Texas Civil Statutes, Article 6573a, §7(a)(1) and (2) shall be deemed appraisal-related;

(2)

the course was offered by an accredited college or university, a school accredited by a real estate or appraiser certification or licensing agency of this or another state, a professional trade association, or a service-related school such as the United States Armed Forces Institute; or the course was offered or approved by a federal agency or commission or by an agency of this state;

(3)

the applicant obtained credit received in a classroom presentation the hours of instruction for which credit was given and successfully completed a final examination for course credit except as specified in subsection (k) of this section (relating to distance education); and

(4)

the course was at least 15 classroom hours in duration, which includes time devoted to examinations which are considered to be part of the course.

(f)

For the purposes of this section, a professional trade association is a nonprofit, cooperative, and voluntarily joined association of business or professional competitors that is designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting the common interest of its members.

(g)

The board may require an applicant to furnish materials such as course outlines, syllabi, course descriptions or official transcripts to verify course content or credit.

(h)

Course providers may obtain prior approval of a course by filing forms prescribed by the board and submitting the following items listed in paragraphs (1)-(3) of this subsection to the board:

(1)

a copy of any textbook, course outline, syllabus, or other written material used in the course;

(2)

a copy of the question and answers to the written final examination, with an answer key or the correct answers indicated; and

(3)

sample course completion certificate or other evidence of successful completion of the course;

(4)

such prior approval of courses will remain in effect for a period of two years after the date of approval.

(i)

The board shall accept classroom hour units of instruction as shown on the transcript or other document evidencing course credit if the transcript reflects the actual hours of instruction the student received. Fifteen classroom hours of credit may be awarded for one semester hour of credit from an acceptable provider. Ten classroom hours of credit may be awarded for one quarter hour of credit from an acceptable provider. Ten classroom hours of credit may be awarded for each continuing education credit from an acceptable provider. The board may not accept courses repeated within three years of the original offering unless the subject matter has changed significantly.

(j)

Teachers of appraisal courses may receive credit for meeting the educational classroom hours requirement. Teaching of appraisal courses is not acceptable for meeting the experience requirement. Applicants must provide documentation as requested by the board to establish credit for teaching appraisal courses. Education credit for teaching a particular course may be claimed only once in each three year period.

(k)

Distance education courses may be acceptable to meet the classroom hour requirement, or its equivalent, provided that the course is approved by the board and meets one of the following conditions listed in paragraphs (1)-(3) of this subsection.

(1)

the course must have been presented by an accredited college or university that offers distance education programs in other disciplines, and

(A)

the person has successfully completed a written examination administered to the positively identified person at a location and proctored by an official approved by the college or university; and

(B)

the content and length of the course must meet the requirements for real estate appraisal related courses established by this chapter and by the requirements for qualifying education established by the Appraiser Qualifications Board of the Appraisal Foundation and is equivalent to a minimum of 15 classroom hours.

(2)

The course has received the American Council on Education's Program on Non-collegiate Sponsored Instructions ( ACE PONSI), or its successor, approval for college credit, or has been approved under the AQB Course Approval program; and

(A)

the person successfully completes a written examination proctored by an official approved by the presenting entity;

(B)

the course meets the requirements for qualifying education established by the Appraiser Qualifications Board and is equivalent to the minimum of 15 classroom hours.

(3)

A minimum time equal to the number of hours of credit must elapse from the date of course enrollment until its completion.

(l)

"In-house" education and training is not acceptable for meeting the educational requirements for certification or licensure.

(m)

To be acceptable for meeting the Uniform Standards of Professional Appraisal Practice (USPAP) educational requirement, a course must:

(1)

Be devoted to the Uniform Standards of Professional Appraisal Practice (USPAP) with a minimum of 15 classroom hours of instruction;

(2)

Use the current edition of the Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board of the Appraisal Foundation;

(3)

Provide each student with his or her own permanent copy of the current Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board of the Appraisal Foundation; and

(4)

utilize the "National Uniform Standards of Professional Appraisal Practice (USPAP) Course" promulgated by the Appraisal Foundation, including the Student Manual and Instructor Manual or an equivalent USPAP course as determined by the AQB.

(n)

Courses specifically approved by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation, provided that the educational provider has notified the board of the AQB approval.

§153.18.Appraiser Continuing Education.

(a)

Renewing a Certification or License. An appraiser must successfully complete the equivalent of at least 28 classroom hours of appraiser continuing education (ACE) courses approved by the board during the two year period preceding the expiration of the certification or license. Renewals shall include a minimum of seven classroom hours devoted to the Uniform Standards of Professional Appraisal Practice (USPAP). The courses must comply with the requirements set out in subsection (d) of this section.

(b)

Renewing an Appraiser Trainee Approval. As a condition for renewing an appraiser trainee authorization, a trainee must successfully complete educational courses during the one-year period preceding the expiration of the appraiser trainee authorization being renewed. The courses must comply with the fundamental education requirements for application for licensing and certification set out in §153.13(e)-(n) of this title (relating to Educational Requirements):

(1)

For the first annual renewal and every other annual renewal thereafter (third, fifth, seventh, etc.), a total of 45 classroom hours which shall include a minimum of 30 classroom hours of fundamental real estate appraisal courses and 15 classroom hours in a course devoted to the USPAP. The courses must specifically be approved by the board and shall include successful completion of an examination.; and

(2)

for the second annual renewal and every other annual renewal thereafter (fourth, sixth, etc.), a minimum of 30 classroom hours of fundamental real estate appraisal courses specifically approved by the board, which shall include the successful completion of an examination.

(c)

The appraiser continuing education requirement as set forth in §153.17 of this title (relating to Renewal of Certification, License or Trainee Approval) for a person previously licensed or certified by the board under this act who is on active duty in the United States armed forces and serves in this capacity outside the State of Texas are deferred until the next renewal of a license or certification provided the person furnishes a copy of official orders or other official documentation acceptable to the board showing that the person was on active duty outside the state during the person's last renewal period.

(d)

In approving ACE courses, the board shall base its review and approval of appraiser continuing education courses upon the then current appraiser qualification criteria of the Appraiser Qualifications Board (AQB).

(1)

The purpose of ACE is to ensure that certified and licensed appraisers participate in programs that maintain and increase their skill, knowledge, and competency in real estate appraising.

(2)

The following types of educational offerings that may be accepted for meeting the ACE requirements are listed in subparagraphs (A)-(L) of this paragraph:

(A)

A course that meets the requirements for certification or licensing also may be accepted for meeting ACE provided:

(i)

The course is devoted to one or more of the appraisal related topics of the then current appraiser qualifications criteria of the Appraiser Qualifications Board (AQB) for continuing education;

(ii)

the course was not repeated within a three year period; and

(iii)

the educational offering is at least two hours in length.

(B)

The board shall accept as continuing education any continuing education offering that complies with the guidelines of the AQB and is recognized by the Appraisal Subcommittee that a licensed or certified appraiser was awarded by a national appraiser organization approved by the board as a provider of qualifying education;

(C)

A course specifically approved by the board for meeting ACE offered by a provider as specified in §153.13(e)(2) of this title (relating to Educational Requirements), provided the course is devoted to one or more of the appraisal related topics of the then current appraiser qualifications criteria of the AQB for continuing education and the course is at least two hours in duration;

(D)

A course that meets the Texas Real Estate Commission mandatory continuing education (MCE) requirements, provided it is devoted to one or more of the appraisal related topics of the then current appraiser qualifications criteria of the AQB for continuing education, and which specifically has been approved by the board.

(E)

A seminar or other educational offering that deals with appraisal issues, offered by an appraiser trade association, a related association, or by a federal or state governmental agency, provided the offering was at least two hours in duration, and is devoted to one or more of the appraisal related topics of the then current appraiser qualifications criteria of the AQB for continuing education.

(F)

Distance education courses, provided that the course is approved by the board and meets one of the following conditions listed in clauses (i)-(iv) of this subparagraph:

(i)

the course is presented to an organized group in an instructional setting with a person qualified and available to answer questions, provide information, and monitor student attendance, and is a minimum of two classroom hours and meets the requirements for continuing education courses established by the AQB; or

(ii)

the course either has been presented by an accredited college or university that offers distance education programs in other disciplines, or has received either the American Council on Education's Program on Non-collegiate Sponsored Instruction (ACE/PONSI), or its successor, approval for college credit or the AQB's approval through the AQB Course Approval Program; and the course meets the following requirements listed in subclauses (I)-(II) of this clause:

(I)

the course is equivalent to a minimum of two classroom hours in length and meets the requirements for real estate appraisal-related courses established by the Appraisal Qualifications Board; and

(II)

the student successfully completed a written examination proctored by an official approved by the presenting college or university or by the sponsoring organization consistent with the requirements of the course accreditation; or if a written examination is not required for accreditation, the student successfully completes the course mechanisms required for accreditation with demonstrated mastery and fluency (said mechanisms must be present in a course without an exam in order to be acceptable).

(iii)

the content and length of the course must meet the requirements for appraiser continuing education established by this chapter and must be devoted to one or more of the appraisal related topics of the then current appraiser qualifications criteria of the AQB for continuing education; and

(iv)

a minimum time equal to the number of hours of credit must elapse from the date of course enrollment until its completion.

(G)

"In-house" education and training are not acceptable for meeting the appraiser continuing education (ACE) requirements.

(H)

To be acceptable for meeting the Uniform Standards of Professional Appraisal Practice (USPAP), appraiser continuing education (ACE) requirement, a course must:

(i)

Be devoted to the Uniform Standards of Professional Appraisal Practice (USPAP) with a minimum of seven classroom hours of instruction;

(ii)

Use the current edition of the Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board of the Appraisal Foundation;

(iii)

Provide each student with his or her own permanent copy of the current Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board of the Appraisal Foundation; and

(iv)

At a minimum be based on topics covered by the Appraisal Standards Board (ASB) Instructor's Manual. This section does not limit additional USPAP related topics to be covered in the course, or utilize the national USPAP Update course, or its equivalent as determined by the AQB.

(I)

Courses specifically approved by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation are acceptable for meeting ACE requirements.

(J)

As part of the 28 classroom hour ACE requirement, an appraiser must successfully complete a minimum of seven classroom hours of instruction devoted to the USPAP before each renewal.

(K)

Copies of transcripts or course completion certificates from the course provider must accompany the Application for Renewal form.

(L)

Appraiser continuing education credit may also be granted for participation, other than as a student, in real estate appraisal educational processes and programs. Examples of activities for which credit may be granted are teaching, educational program development, authorship of real estate appraisal textbooks, or similar activities that are determined by the board to be equivalent to obtaining appraiser continuing education. Appraisal experience may not be substituted for ACE.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 26, 2001.

TRD-200101160

Renil C. Linér

Commissioner

Texas Appraiser Licensing and Certification Board

Effective date: April 1, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 465-3950


Chapter 155. RULES RELATING TO STANDARDS OF PRACTICE

22 TAC §155.1

The Texas Appraiser Licensing and Certification Board adopts an amendment to §155.1, concerning Standards of Practice, without changes to the proposed text as published in the December 22, 2000, issue of the Texas Register (25 TexReg 12586) and will not be republished.

The rule is amended to add a new subsection (b) to assert an exception from complying with Standards Rule 3 when reviewing disciplinary and experience audits for both Board members and staff.

No comments were received regarding adoption of the rules.

The amendment is adopted under the Powers and Duties of the Board, Texas Appraiser Licensing and Certification Act, §5, (a) (1), (2), (3), and (7) (Texas Civil Statutes, Article 6573a.2), and §14(c), Certificate and License Renewal.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 26, 2001.

TRD-200101161

Renil C. Linér

Commissioner

Texas Appraiser Licensing and Certification Board

Effective date: April 1, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 465-3950


Chapter 157. RULES RELATING TO PRACTICE AND PROCEDURE

The Texas Appraiser Licensing and Certification Board adopts new §§157.2-157.8, 157.9-157.14 and 157.15-157.19 and 157.20, concerning General Provisions, Contested Case Hearings and Post Hearing, without changes to the proposed text as published in the December 22, 2000, issue of the Texas Register (25 TexReg 12587) and will not be republished.

Chapter 151 is repealed and replaced with new Chapter 157. The repeal of Chapter 151 is contemporaneously adopted elsewhere in this issue of the Texas Register . Section 151.1, concerning Definitions, has been combined with the definitions in §153.1. Chapter 151 is being relocated to Chapter 157 so that Chapter 153 concerning Provisions of the Texas Appraiser Licensing and Certification Act, are the first set of rules that appear in the Texas Administrative Code.

No comments were received regarding adoption of the rules.

Subchapter A. GENERAL PROVISIONS

22 TAC §§157.2-157.8

The new sections are adopted under the Powers and Duties of the Board, Texas Appraiser Licensing and Certification Act, §5, (a) (1), (2), (3), and (7) (Texas Civil Statutes, Article 6573a.2), and §14(c), Certificate and License Renewal.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 26, 2001.

TRD-200101162

Renil C. Linér

Commissioner

Texas Appraiser Licensing and Certification Board

Effective date: April 1, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 465-3950


Subchapter B. CONTESTED CASE HEARINGS

22 TAC §§157.9-157.14

The new sections are adopted under the Powers and Duties of the Board, Texas Appraiser Licensing and Certification Act, §5, (a) (1), (2), (3), and (7) (Texas Civil Statutes, Article 6573a.2), and §14(c), Certificate and License Renewal.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 26, 2001.

TRD-200101163

Renil C. Linér

Commissioner

Texas Appraiser Licensing and Certification Board

Effective date: April 1, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 465-3950


Subchapter C. POST HEARING

22 TAC §§157.15-157.20

The new sections are adopted under the Powers and Duties of the Board, Texas Appraiser Licensing and Certification Act, §5, (a) (1), (2), (3), and (7) (Texas Civil Statutes, Article 6573a.2), and §14(c), Certificate and License Renewal.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 26, 2001.

TRD-200101164

Renil C. Linér

Commissioner

Texas Appraiser Licensing and Certification Board

Effective date: April 1, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 465-3950