GENERAL GOVERNMENT CABINET
Real Estate Appraisers Board
(Amendment)
201 KAR 30:050.
Examination and experience requirement.
RELATES
TO: KRS 324A.010, 324A.035(1), (3), 324A.040(2), 12 U.S.C. 3331-3351
STATUTORY
AUTHORITY: KRS 324A.020, 324A.035(1), (3), 12 U.S.C. 3331 - 3351
NECESSITY,
FUNCTION, AND CONFORMITY: KRS 324A.035(1) requires the board to establish by
administrative regulation requirements for certification or licensure of
appraisers of real property in federally related transactions. KRS 324A.035(3)(d),
(e), and (f) require the board to establish by administrative regulations
requirements for experience and examination of applicants. 12 U.S.C. 3331[331]
through 3351 authorizes requirements for certification or licensure of
appraisers of real property in federally related transactions. This
administrative regulation establishes the examination and experience
requirements for appraisers of real property in federally related transactions.
Section
1. Examination. (1) An applicant for certification as a certified general real
property appraiser, certified residential real property appraiser, or licensed
real property appraiser shall pass an examination specific for the
certification or license applied for and approved by:
(a)
The board; and
(b)
The Appraiser Qualifications Board of the Appraisal Foundation.
(2)
A score from an examination shall no longer be acceptable for licensure after
two (2) years from the date on which the applicant takes and passes the
examination.
(3)
An applicant shall complete all the education and experience requirements for
the credential which the individual is seeking prior to being approved to sit
for the national appraisal examination.
(4)(a)
An individual shall submit a complete Appraiser License/Certification Application,
incorporated by reference in 201 KAR 30:030, which documents the completed
education and experience to the board prior to being approved to sit for the
national appraisal examination.
(b)
The applicant shall submit the following information with the application:
1.
Proof of completion of the education required by 201 KAR 30:190;
2.
Proof of completion of the required experience as established in Section 2 of
this administrative regulation, including any reports identified by the board;
and
3.
The fee required by 201 KAR 30:060.
(5)(a)
An applicant shall verify experience credit on the Appraiser Assignment Log.
(b)
An applicant shall submit satisfactory reports, file memoranda, and other
documentation requested by the board to confirm the applicant's appraisal
experience.
Section
2. Required Experience. (1)(a) For certification as a general real property
appraiser, at least 1,500 hours of appraisal experience shall consist of
nonresidential appraisal experience.
1.
More than twenty (20)[fifty (50)] percent of the general experience
shall not be claimed for appraisal review or appraisal consulting assignments.
2.
More than twenty (20)[fifty (50)] percent of the general experience
shall not be claimed for appraisal of vacant land.
3.
At least twenty-five (25)[fifty (50)] percent of the general experience
claimed shall include development of the cost approach, sales comparison
approach, and income approach.
4.
More than thirty (30)[fifty (50)] percent of the general experience
shall not be claimed for restricted[use] appraisal reports.
(b)
Prior to certification as a general real property appraiser, an applicant shall
have acquired 3,000 hours of appraisal experience. This experience shall not be
acquired in a period of fewer than thirty (30) calendar months.
(2)
Prior to certification as a residential real property appraiser, an applicant
shall have acquired 2,500 hours of appraisal experience. This experience shall
not be acquired in a period of fewer than twenty-four (24) calendar months.
(a)
More than twenty (20)[fifty (50)] percent of the residential
experience shall not be claimed for appraisal review or appraisal consulting
assignments.
(b)
More than twenty (20)[fifty (50)] percent of the residential
experience shall not be claimed for appraisal of vacant land.
(c)
At least fifteen (15)[fifty (50)] percent of the residential experience
claimed shall include development of the cost approach, sales comparison
approach, and income approach.
(d)
More than twenty (20)[fifty (50)] percent of the residential
experience shall not be claimed for restricted [use] appraisal reports.
(3)
Prior to licensure as a licensed real property appraiser, an applicant shall
have acquired 2,000 hours of appraisal experience. This experience shall not be
acquired in a period of fewer than twenty-four (24) calendar months.
(a)
More than twenty (20)[fifty (50)] percent of the residential
experience shall not be claimed for appraisal review or appraisal consulting
assignments.
(b)
More than twenty (20)[fifty (50)] percent of the residential
experience shall not be claimed for appraisal of vacant land.
(c)
At least fifteen (15)[fifty (50)] percent of the residential experience
claimed shall include development of the cost approach, sales comparison
approach, and income approach.
(d)
More than thirty (30)[fifty (50)] percent of the residential experience
shall not be claimed for restricted [use] appraisal reports.
(4)
More than fifty (50) percent of the required experience credit shall not be
obtained for appraisal assignments without a traditional client being
identified.
(5)
More than fifty (50) percent of the required experience credit shall not be
obtained in a board-approved practicum course that requires students to:
(a)
Produce credible appraisals that utilize an actual subject property;
(b)
Perform market research containing sales analysis;
(c)
Perform assignments that require problem solving skills for a variety of
property types; and
(d)
Apply and report the appraisal approaches in compliance with the Uniform
Standards of Professional Appraisal Practice (USPAP), incorporated by reference
in 201 KAR 30:040.
(6)
The appraisal experience required by this section may have been acquired in any
calendar years, whether or not the calendar years are consecutive. Hours may be
treated as cumulative in order to achieve the necessary hours of appraisal
experience.
(7)
Real property appraisal assignments submitted for experience credit shall be
completed:
(a)
In compliance with the requirements of USPAP as incorporated by reference
in 201 KAR 30:040 and defined in KRS 324A.010(7);
(b)
Under the supervision of a certified residential real property appraiser for
experience of one (1) to four (4) unit residential properties; and
(c)
Under the supervision of a certified general real property appraiser for
experience of all property uses other than one (1) to four (4) unit residential
properties.
(8)
To count towards the requirements of this section, the experience shall be
acquired while the applicant is licensed or certified by the board as one (1)
of the types of appraisers identified in 201 KAR 30:030, Section 1(2), (3), or
(4).
Section
3. The requirements of USPAP shall not apply to the board, its agents, and
employees while conducting an appraisal review for purposes of confirming an
applicant's experience pursuant to this administrative regulation.
Section
4. Incorporation by Reference. (1) "Appraiser Assignment Log", 8/09,
is incorporated by reference.
(2)
This material may be inspected, copied, or obtained, subject to applicable
copyright law, at the Kentucky Real Estate Appraisers Board, 135 W. Irvine Street, Suite 301, Richmond, Kentucky 40475,
(859) 623-1658, Monday through Friday, 8 a.m. to 4:30 p.m.
HAROLD
BRANTLEY, Chairperson
APPROVED
BY AGENCY: September 9, 2015
FILED
WITH LRC: September 10, 2015 at noon
PUBLIC
HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative
regulation shall be held on October 27, 2015, at 1:30 p.m., in the office of
the Kentucky Real Estate Appraisers Board; 135 W.
Irvine Street, Suite 301, Richmond, Kentucky 40475, (859) 623-1658. Individuals
interested in attending this hearing shall notify the agency in writing by five
workdays prior to the hearing of their intent to attend. If no notification of
intent to attend the hearing is received by that date, the hearing may be canceled.
This hearing is open to the public. Any person who attends will be given an
opportunity to comment on the proposed administrative regulation. A transcript
of the public hearing will not be made unless a written request for a
transcript is made. If you do not wish to attend the public hearing, you may
submit written comments on the proposed administrative regulation. Written
comments shall be accepted until the close of business on November 2, 2015. Send
written notification of intent to attend the public hearing or submit written
comments on the proposed administrative regulation to:
CONTACT
PERSON: Larry Disney, Executive Director, Kentucky Real Estate Appraisers
Board, 135 W. Irvine Street, Suite 301, Richmond,
Kentucky 40475, phone (859) 623-1658, fax
(859) 623-2598.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact
person: Larry Disney
(1)
Provide a brief summary of:
(a)
What this administrative regulation does: This administrative regulation establishes
the examination and experience requirements for appraisers of real property in
Kentucky.
(b)
The necessity of this administrative regulation: This regulation is necessary
to establish the examination and experience requirements for licensure or
certification applicants.
(c)
How this administrative regulation conforms to the content of the authorizing
statutes: The statutes require regulations establishing the examination and
experience requirements for certification or licensure.
(d)
How this administrative regulation will assist in the effective administration
of the statutes: This administrative regulation will assist by clarifying and
establishing the certification and examination requirements for licensure or
certification.
(2)
If this is an amendment to an existing administrative regulation, provide a
brief summary of:
(a)
How the amendment will change this existing administrative regulation: This
amendment establishes the percentages of required experience for appraisal
certification and/or licensure.
(b)
The necessity of the amendment to this administrative regulation: This
amendment is necessary so the board establishes experience requirements for
appraisers in Kentucky.
(c)
How the amendment conforms to the content of the authorizing statutes: KRS
324A.035 authorizes the board to promulgate regulations to establish
requirements for licensure or certification.
(d)
How the amendment will assist in the effective administration of the statutes:
This amendment sets forth experience requirements providing more required
experience in real property mortgage lending. This increased experience
requirement in the area of mortgage lending better reflects the appraisal work
in the industry.
(3)
List the type and number of individuals, businesses, organizations, or state
and local governments affected by this administrative regulation: There are
approximately 1,800 persons certified by the board.
(4)
Provide an analysis of how the entities identified in question (3) will be
impacted by either
the
implementation of this administrative regulation, if new, or by the change, if
it is an amendment, including:
(a)
List the actions that each of the regulated entities identified in question (3)
will have to take to comply with this administrative regulation or amendment: Licensees
and certificate holders will have a higher percentage of general experience prior
to licensure or certification in mortgage lending.
(b)
In complying with this administrative regulation or amendment, how much will it
cost each of the entities identified in question (3): There are no additional
costs for complying with the amendment.
(c)
As a result of compliance, what benefits will accrue to the entities identified
in question (3): Licensees and certificate holders will be required to have
more experience in mortgage lending.
(5)
Provide an estimate of how much it will cost to implement this administrative
regulation:
(a)
Initially: No new costs will be incurred by the changes.
(b)
On a continuing basis: No new costs will be incurred by the changes.
(6)
What is the source of the funding to be used for the implementation and
enforcement of this administrative regulation: The board’s operations are
funded by fees paid by credential holders.
(7)
Provide an assessment of whether an increase in fees or funding will be
necessary to implement this administrative regulation, if new, or by the change
if it is an amendment: No increase in fees or funding will be required to
implement the changes made by this regulation.
(8)
State whether or not this administrative regulation establishes any fees or
directly or indirectly increases any fees: This administrative regulation does
not establish fees or directly or indirectly increase any fees.
(9)
TIERING: Is tiering applied? Tiering was not applied as the regulation is
applicable to all license/certificate holders. This regulation does not
distinguish between similarly situated individuals on the basis of any factor.
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
1.
What units, parts or divisions of state or local government (including cities,
counties, fire departments, or school districts) will be impacted by this
administrative regulation? Kentucky Real Estate Appraisers Board.
2.
Identify each state or federal statute or federal regulation that requires or
authorizes the action taken by the administrative regulation: KRS 324A.020,
324A.035(1), 324A.035(3).
3.
Estimate the effect of this administrative regulation on the expenditures and
revenues of a state or local government agency (including cities, counties,
fire departments, or school districts) for the first full year the
administrative regulation is to be in effect. None
(a)
How much revenue will this administrative regulation generate for the state or
local government (including cities, counties, fire departments, or school
districts) for the first year? None
(b)
How much revenue will this administrative regulation generate for the state or
local government (including cities, counties, fire departments, or school
districts) for subsequent years? None
(c)
How much will it cost to administer this program for the first year? None
(d)
How much will it cost to administer this program for subsequent years? None
Note:
If specific dollar estimates cannot be determined, provide a brief narrative to
explain the fiscal impact of the administrative regulation.
Revenues
(+/-):
Expenditures
(+/-):
Other
Explanation
