PURPOSE AND EFFECT: The purpose of this amendment is to change subsections 18-1.002(4),(6), (7), and (27), to: remove reference to the Uniform Standards of Professional Appraisal Practice “USPAP” and replace such reference with the Supplemental ...

 

BOARD OF TRUSTEES OF INTERNAL IMPROVEMENT TRUST FUND

RULE NOS.:RULE TITLES:
18-1.002 Definitions
18-1.006Appraisal Procedures, Report Requirements and Determining Maximum Amounts
18-1.007Appraiser Eligibility and Selection
PURPOSE AND EFFECT: PURPOSE AND EFFECT: The purpose of this amendment is to change subsections 18-1.002(4), (6), (7), and (27), to: remove reference to the Uniform Standards of Professional Appraisal Practice “USPAP” and replace such reference with the Supplemental Appraisal Standards for the Board of Trustees (“ Supplemental Standards”) ; qualify the definition of “Appraisal Service(s)” as one performed by a “State Certified Appraiser”; add the Appraisal Institute as an “Approved appraisal organization”; and amend the effective date of the “Supplemental Standards.” Subsection 18-1.006 (1) will also be revised to remove reference to USPAP. Finally, subsection 18-1.007 F.A.C. (1)(b) 4., 5., (5), (5)(a), and (6) will remove reference to USPAP and add reference to the Supplemental Standards.
SUMMARY: The rule amendments will do the following: remove reference to “USPAP” throughout the rule and replace that reference with the Supplemental Standards, as compliance with USPAP standards is required by the more comprehensive Supplemental Standards for state lands acquisition; add the qualification that “Appraisal Service(s)” be done by a “State Certified Appraiser”; include the Appraisal Institute as an “Approved appraisal organization” ; and amend the effective date of the Supplemental Standards.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
There is no economic impact to small business for the rules proposed herein.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: After reviewing the proposed rule amendments, the Board found the proposed rule amendments would not result in an adverse economic impact. The Board found the proposed rule amendments would not result in increased regulatory costs to small businesses. The goal of the proposed amendments is to streamline appraisal procedures. After specific review of the proposed rule language and determination the amendments would not directly or indirectly have an adverse impact or regulatory costs in excess of $1 million it was determined that legislative ratification is not required because the proposed rule amendments will not have an adverse impact on economic growth, private sector job creation or employment, or private sector investment in excess of $1 million in the aggregate within 5 years after the rule is implemented; nor will the proposed rule amendments have an adverse impact on business competitiveness, productivity, or innovation in excess of $1 million in the aggregate within 5 years after the implementation of the rule; nor will the proposed rule amendments increase regulatory costs in excess of $1 million in the aggregate within 5 years after the implementation of the rule.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 253.03, 253.025, 259.041 FS.
LAW IMPLEMENTED: 253.025, 259.041, 373.139 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME:
PLACE:
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Mike Herran, DEP, Division of State Lands, Bureau of Appraisal, 3900 Commonwealth Blvd., MS 110, Tallahassee FL 32399-3000, [phone], [e-mail].. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Mike Herran, DEP, Division of State Lands, Bureau of Appraisal, 3900 Commonwealth Blvd., MS 110, Tallahassee FL 32399-3000, [phone], [e-mail]

THE FULL TEXT OF THE PROPOSED RULE IS:

18-1.002 Definitions.

When used in this chapter, the following shall have the indicated meaning unless the context clearly indicates otherwise:

(1)       No change.

(2)     “Appraisal foundation” means the non-profit, educational corporation established in Washington, D. C. by the American appraisal industry to foster professionalism by promoting uniform appraisal standards. the Uniform Standards of Professional Appraisal Practice.

(3)     No change.

(4) “Appraisal service(s)” means valuation work in the form of an appraisal, appraisal review or appraisal consulting assignment performed by a State Certified Appraiser, in accordance with the Supplemental Standards.as outlined in the USPAP. 

(5) No change.

(6) “Approved appraisal” means an appraisal service that has been approved by the Chief Appraiser,  Bureau of Appraisal, Division of State Lands, or designee. that is in compliance with USPAP, the Supplemental Standards, this chapter, and the specific assignment requirements

(7)  “Approved appraisal organization” means an organization that is a member of the Appraisal Foundation, a foundation authorized by the United States Congress as the source of appraisal standards and appraiser qualifications, or the Appraisal Institute, a professional organization.

(8) through (26) No change

(27) “Supplemental standards” means the Supplemental Appraisal Standards for the Board of Trustees Land, adopted December 2012  dated June 15 2010, hereby adopted by reference, which contains appraisal requirements that establish public policy and add to the standard appraisal procedures and practices of the appraisal profession for the development and reporting of all appraisal services, including those outlined in Chapters 253 and 259, F.S., adopted by the Board of Trustees of the Internal Improvement Trust Fund, available on the internet at: http://www.flrules.org/Gateway/reference.asp?No=Ref-02187  or by sending a request to: Department of Environmental Protection, Bureau of Appraisal, 3900 Commonwealth Boulevard, M.S. 110, Tallahassee, Florida 32399-3000 or by phone at [phone] or by fax at [phone].

(28) No change.

(29) “USPAP” means the Uniform Standards of Professional Appraisal Practice, effective January 1, 2010, which contains the generally accepted standards of the appraisal profession that deal with the procedures to be followed in developing an appraisal, analysis, or opinion and the manner in which such appraisal, analysis, or opinion is communicated, as promulgated by the Appraisal Foundation, available on the internet at: http://www.appraisalfoundation.org or by directing your request to: The Appraisal Foundation, 1155 15th Street, N. W., Suite 1111, Washington, DC 20005.

Rulemaking Authority 253.03, 253.025, 259.041 FS. Law Implemented 253.025, 259.041 FS. History–New 6-16-86, Amended 4-6-89, 1-29-90, 10-30-91, 4-14-08, 6-15-10,_______.

18-1.006 Appraisal Procedures, Report Requirements and Determining Maximum Amounts.

(1)    The development and reporting of all appraisal services by the fee appraiser shall be consistent with the USPAP, Supplemental Standards, this chapter and the specific assignment.

(2) through (9) No change.

Rulemaking Authority 253.025, 259.041 FS. Law Implemented 253.025, 259.041, 373.139 FS. History–New 6-16-86, Amended 4-6-89, 1-29-90, 1-2-91, 10-30-91, 4-14-08, 6-15-10,_______.

18-1.007 Appraiser Eligibility and Selection.

(1)     Approved Appraiser List – Eligibility and Selection.

(a) No change

(b) An appraiser shall be considered eligible and will be placed on the list when he has complied with all the following criteria:

1. through 3.  No change.

4. The appraiser demonstrates a level of general appraisal competence through past appraisal experience. An acceptable level of general appraisal competence and quality shall be demonstrated by the submission of an appraisal report prepared for a business client within the previous two years that substantially complies with the USPAP.

5. The appraiser identifies any specialty property types, as outlined in the Supplemental Standards, for which he professes appraisal expertise and competence in accordance with the USPAP.

(c) through (d) No change.

(2)     through (4) No change.

 

(5) Appraisal reviews are appraisal services that will be conducted for each assignment by qualified review appraisers in accordance with the Supplemental Standards USPAP competency requirements. Appraisal review reports shall be submitted to the Chief Appraiser or his designee for approval.

(a) For acquisition parcels with values greater than $500,000 an appraisal review will be developed and reported according to the requirements of Standard 3 of the USPAP, the Supplemental Standards, this chapter, and the specific requirements of the assignment. For acquisition parcels with values of $500,000 or less, a cursory review by the Bureau of Appraisal will be conducted for assurance that requirements of the assignment were met. For every 20th appraisal for conservation land acquisition with a value of $500,000 or less, a Standard 3 review, as described above, will be developed and reported for quality assurance purposes.

(b)  No change.

(6)  Appraisers to be solicited for appraisal review assignments, as identified in paragraph (5)(a), above, will be from those on the approved appraiser list, under a multiple year contract and who possess competency for review work in accordance with the Supplemental Standards. USPAP.

Rulemaking Authority 253.03, 259.041 FS. Law Implemented 259.041 FS. History–New 6-16-86, Amended 1-29-90, 10-30-91, 4-14-08, 6-15-10,_______.

NAME OF PERSON ORIGINATING PROPOSED RULE: Mike Herran
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Board of Trustees of the Internal Improvement Trust Fund of the State of Florida.
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 11, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 4, 2012