The Board proposes the creation of new rules to define the address of record and authorized representatives for appraisal management companies and to establish the application process for licensure as an appraisal management company.

 

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Florida Real Estate Appraisal Board

RULE NO.: RULE TITLE:
61J1-11.001: Definitions
61J1-11.002: Application for Registration as an Appraisal Management Company.

PURPOSE AND EFFECT: The Board proposes the creation of new rules to define the address of record and authorized representatives for appraisal management companies and to establish the application process for licensure as an appraisal management company.

SUMMARY: Address of record and authorized representative for appraisal management companies will be defined. The application process for licensure as an appraisal management company will be established.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COST AND LEGISLATIVE RATIFICATION:

A Statement of Estimated Regulatory Cost was prepared. During discussion of the economic impact of the rules at its Board meeting, the Board, based upon the expertise and experience of its members, determined that a Statement of Estimated Regulatory Cost (SERC) was necessary, but that the rule amendments will not require ratification by the Legislature. No person or interested party submitted additional information regarding the economic impact at that time. The Board has determined that the rules will not have an adverse impact on small business, or likely increase regulatory costs in excess of $200,000 in the aggregate within 1 year after implementation of the rule.

The following is a summary of the SERCs for both rules:

• The purpose of the promulgation of Rule 61J1-11.001 is for definitions only to provide clarity of the language of the statute. There is no cost associated with the rule.
• There will be no cost to the department for implementing proposed Rule 61J1-11.001.
• There will be no cost to any other state and local government entities of implementing the proposed rules.
• An estimated number of the small businesses that would be subject to Rule 61J1-11.001 are more than 5,000.
• No small county or small city will be impacted by the proposed rules.
• Pertaining to Rule 61J1-11.002, the Florida Legislature passed HB 303 into law and it became Chapter 2010-84 in 2010. The effective date of the law is July 1, 2011. Any costs associated with this rule are mandated by statute and not at board discretion.
• Pertaining to Rule 61J1-11.002, all estimated 2,000 appraisal management companies registered to conduct business in Florida will be required to comply with the fingerprint requirement at a cost of $57.25 per applicant.
• Pertaining to Rule 61J1-11.002, the projections in the 2010 bill analysis included one-time costs paid by the Division of Real Estate of $110,139 in development of licensing standards, $15,000 recurring contract services, $8,000 for rule making costs, and recurring expenses of $20,000 per year for two additional board member appointments.

Any person who wishes to provide information regarding the statement of estimated costs, or to provide a proposal for a lower regulatory cost alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 475.614 FS.
LAW IMPLEMENTED: 455.275(1), 475.613, 475.6235, 475.624 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE NEXT AVAILABLE EDITION OF THE FLORIDA ADMINISTRATIVE WEEKLY.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULES IS: Juana Watkins, Director, Division of Real Estate, 400 West Robinson Street, Hurston Building, North Tower, Suite N801, Orlando, Florida 32801

 

THE FULL TEXT OF THE PROPOSED RULES IS:

61J1-11.001 Definitions.

(1) “Address of record” means the mailing address of the appraisal management company.

(2) “Authorized representative” means any person who possesses the authority, directly or indirectly, to direct the management or policies of the appraisal management company, whether through ownership, by contract, or otherwise, as provided in Section 475.6235(2)(f), F.S.

Rulemaking Authority 475.614 FS. Law Implemented 455.275(1), 475.613, 475.6235, 475.624 FS. History–New________.

 

61J1-11.002 Application for Registration as an Appraisal Management Company.

(1) An applicant for registration as an appraisal management company shall file a completed application on Form DBPR FREAB-1, “Application for Registering an Appraisal Management Company,” effective June _, 2011. The form, together with the instructions for completion, is incorporated herein by reference and may be obtained from the Board’s office at 400 West Robinson Street, Suite N801, Orlando, Florida 32801-1757 or from its Website located at http://www.myfloridalicense.com/dbpr/RE/documents/DBPRFREAB1-. The application is complete when all items on the application form have been fully answered, all fees specified in subsection 61J1-2.001(1), F.A.C., paid, and all required documentation, certifications, electronic fingerprints through the Department’s vendor, explanations of answers, and other items specified in the form and its instructions submitted. Incomplete applications expire one year after the date any portion thereof is received.

(2) At the time of filing the application for registration, the applicant and all authorized representatives must sign a pledge to comply with the Uniform Standards of Professional Appraisal Practice, as defined in Section 475.611(1)(q), F.S., and must indicate in writing that they understand the types of misconduct for which disciplinary proceedings may be initiated.

(3) The applicant and all authorized representatives must make it possible for the Board to determine whether they are competent and qualified to perform appraisal management services with safety to those with whom they may undertake a relationship of trust and confidence and the general public by disclosing all of the following:

(a) Whether they have ever been convicted or found guilty, or entered a plea of guilty or nolo contendere (no contest) to, regardless of adjudication, of a crime in any jurisdiction which directly relates to the activities of an appraiser, or which involves moral turpitude or fraudulent or dishonest conduct;

(b) Whether any civil proceedings are pending against them or whether any civil judgment has been rendered against them in a case wherein the pleadings charged them with fraudulent or dishonest dealings; and

(c) Whether they have had a registration, license, or certification to practice any regulated profession, business, or vocation revoked, suspended, disbarred or otherwise acted against by this or any other state, any nation, or any possession or district of the United States, whether any such proceeding or investigation is now pending, or whether they have had an application for such registration, licensure or certification to practice or conduct any regulated profession, business or vocation denied by this or any other state, any nation, or any possession or district of the United States.

(4) If an applicant and/or any authorized representative discloses information pursuant to subsection (3), above, they must submit certified copies of the following documents along with the application to be considered for registration: criminal judgments and sentences, civil judgments, civil decrees, and/or final orders by administrative and/or regulatory agencies pertaining to licensure. If such documents are no longer retained by a clerk of court or agency clerk or are no longer in existence, then the applicant and/or any authorized representative must submit proof, such as a written affidavit or statement from a clerk of court or agency clerk, that said documents are no longer retained or are no longer in existence.

Rulemaking Authority 475.614 FS. Law Implemented 475.613, 475.6235, 475.624 FS. History–New________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Florida Real Estate Appraisal Board

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Florida Real Estate Appraisal Board

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 7, 2011

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: July 8, 2011