A.R.S. tit. 32 ch. 36 — Arizona Revised Statutes Title 32 Chapter 36 — Real Estate Appraisal

32-3601. Definitions In this chapter, unless the context otherwise requires: 1. "Appraisal" or "real estate appraisal" means a statement that is independently and impartially prepared by an individual setting forth an opinion as to the market value of real property as of a specific date and supported by the presentation and analysis of relevant market information. 2. "Appraisal assignment" means an engagement for which a real estate appraiser is employed or retained to act, or would be perceived by third parties or the public in acting, as a disinterested third party in rendering an unbiased analysis, opinion or conclusion relating to the nature, quality, value or utility of specified interests in or aspects of identified real estate. 3. "Appraisal foundation" means the appraisal foundation incorporated as an Illinois nonprofit corporation on November 30, 1987. 4. "Appraisal report" means any communication, written or oral, of an appraisal. 5. "Appraisal review" means the act of reviewing or the report that follows a review of an appraisal assignment or appraisal report in which a real estate appraiser forms an opinion as to the adequacy and appropriateness of the report being reviewed. 6. "Appraisal standards board" means the appraisal standards board appointed by the board of trustees of the appraisal foundation to develop, interpret and amend the uniform standards of professional appraisal practice. 7. "Appraisal subcommittee" means the subcommittee of the federal financial institutions examination council created pursuant to 12 United States Code section 3310 and chapter 34A, as amended. 8. "Appraiser qualifications board" means the appraiser qualifications board that is appointed by the board of trustees of the appraisal foundation to establish the minimum education, experience and examination requirements for real estate appraisers. 9. "Complex one to four residential units" means property that is atypical for the marketplace. Atypical factors may include architectural style, age of improvements, size of improvements, size of lot, neighborhood land use, potential environmental hazard liability, leasehold interests, limited readily available comparable sales data or other unusual factors. 10. "Course approval" means the act of the deputy director reviewing course materials to form an opinion as to the adequacy and appropriateness of the course for licensing pursuant to section 32-3613, certification pursuant to section 32-3614 and continuing education as prescribed in section 32-3625 in accordance with the appraiser qualifications board and this chapter. 11. "Department" means the department of insurance and financial institutions. 12. "Deputy director" means the deputy director of the financial institutions division of the department. 13. "Federal financial institutions examination council" means that agency of the federal government created pursuant to 12 United States Code chapters 34 and 34A, as amended. 14. "Federally related transaction" means any real estate related financial transaction that a federal financial institution's regulatory agency or the resolution trust corporation engages in, contracts for or regulates and that requires an appraisal. 15. "Property tax agent" means an individual who is designated by a person or is an employee of an entity designated as an agent pursuant to section 42-16001, who acts on behalf of a person who owns, controls or possesses property valued by a county assessor and who receives a fee for the analysis of any matter relating to the review of the valuation of the person's property before the assessor. Property tax agent does not include a person who is admitted to practice law in this state, an employee of the person owning, controlling or possessing the property or an employee of an entity designated pursuant to section 42-16001, if the employee is performing a secretarial, clerical or administrative support function. 16. "Real estate" means an identified parcel or tract of land, including improvements, if any. 17. "Real estate related financial transaction" means any transaction involving the sale of, lease of, purchase of, investment in or exchange of real property, including interests in property or the financing of property, the refinancing of real property or interests in real property and the use of real property or interests in property as security for a loan or investment, including mortgage-backed securities. 18. "Real property" means one or more defined interests, benefits and rights inherent in the ownership of real estate. 19. "Registered trainee appraiser" means a person who meets both of the following requirements: (a) Is registered with the deputy director and meets the appraiser qualifications board's qualifications for trainee appraisers to perform appraisal services only under the direct supervision of a certified appraiser who has met the minimum criteria to be a supervisory appraiser. (b) Accepts assignments only from the registered trainee appraiser's supervisory appraiser. 20. "Review appraiser" means a person who engages in the activity of reviewing and evaluating the appraisal work of others from the perspective of an appraiser, generally for compensation as a separate skill. This includes the function of reviewing an appraisal report or a file memorandum setting forth the results of the review process. 21. "Standards of professional appraisal practice" means the uniform standards of professional appraisal practice promulgated by the appraisal standards board of the appraisal foundation. 22. "State-licensed or state-certified appraiser" means a person who develops and communicates appraisals and who holds a current, valid license or certificate issued under this chapter. 23. "Supervisory appraiser" means a state-certified appraiser who has a supervisory appraiser designation and who: (a) Has been in good standing for the last three years in the jurisdiction in which the registered trainee appraiser practices. (b) Has not been disciplined in a manner that affects the supervisory appraiser's eligibility to engage in appraisal practice in any jurisdiction in the last three years. (c) Directly supervises registered trainee appraisers by doing the following: (i) Accepting responsibility for an appraisal by signing and certifying that the appraisal complies with the uniform standards of professional appraisal practice. (ii) Reviewing and signing all registered trainee appraiser reports. 24. "Value" means the monetary relationship between properties and those who buy, sell or use those properties. 32-3602. Applicability of chapter This chapter does not apply to: 1. A real estate broker or salesperson who is licensed in this state and who, when acting as such, gives an opinion as to the price of real estate if this opinion is not referred to as an appraisal. 2. A natural person, a corporation through its officers or a partnership through its partners that gives an opinion of value of that person's or its own property and does not receive special compensation for the transaction if this opinion is not referred to as an appraisal. 3. An attorney in the performance of that person's duties as an attorney. 4. A mortgage banker, mortgage broker or commercial mortgage banker who is licensed in this state and who, when acting as such, prepares a report analyzing real property if the report is not made for the primary purpose of establishing the sale or market value of the property. 5. An individual who is otherwise subject to licensing or certification by law and whose duties require appraisal of real property for purposes of tax assessment. 6. An engineer or architect registered in this state or a contractor or insurance producer licensed in this state who, when acting as such, prepares a report analyzing real property if the report utilizes the specialized knowledge of the registered engineer or architect or the licensed contractor or insurance producer. 7. A property tax agent who is registered in this state and who, when acting as such, prepares a report analyzing real estate if the report is made for purposes of tax assessment or tax valuation of the real estate. 8. An individual appraising real property only for the purpose of providing an opinion in a judicial proceeding or an individual providing an opinion in a judicial proceeding. An individual providing an opinion under the exemption of this paragraph shall not represent or imply in any report or testimony that the individual testifying is licensed or certified under this chapter. 9. A person who produces a statement that is provided to any other person concerning the estimated value of real property through an internet website, automated valuation or other software program or other means of comparative market analysis and who discloses that the estimate is not an appraisal. 32-3603. Registration, license or certificate use; exception A. All real estate appraisals and appraisal reviews performed on real property in this state shall be performed only by individuals who are registered, licensed or certified in accordance with the requirements of this chapter. No person, other than a registered trainee appraiser or a state-licensed or state-certified appraiser, may assume or use that title or any title, designation or abbreviation likely to create the impression of registration as a trainee appraiser or licensure or certification as an appraiser by this state. B. No person other than a state-licensed or state-certified appraiser may receive a fee for a real estate appraisal or an appraisal review of real property in this state. This subsection does not prohibit a supervisory appraiser from remitting compensation to a registered trainee appraiser during the course of training. 32-3605. Deputy director; duties; powers; immunity A. The deputy director shall adopt rules in aid or in furtherance of this chapter. B. The deputy director shall: 1. Adopt standards for appraisal practice that is regulated by this chapter. The standards at a minimum shall be equivalent to the standards of professional appraisal practice. 2. In prescribing criteria for certification, adopt criteria that at a minimum are equal to the minimum criteria for certification adopted by the appraiser qualifications board. 3. In prescribing criteria for licensing and registration, adopt criteria that at a minimum are equal to the minimum criteria for licensing and registration adopted by the appraiser qualifications board. 4. Further define by rule with respect to state-licensed or state-certified appraisers appropriate and reasonable educational experience, appraisal experience and equivalent experience that meets the statutory requirement of this chapter. 5. Adopt the national examination as approved by the appraiser qualifications board for state-certified appraisers. 6. Adopt the national examination as approved by the appraiser qualifications board for state-licensed appraisers. 7. Establish administrative procedures for: (a) Processing applications for licenses and certificates, including registration certificates. (b) Approving or disapproving applications for registration, licensure and certification. (c) Issuing licenses and certificates, including registration certificates. 8. Define by rule, with respect to registered trainee appraisers and state-licensed and state-certified appraisers, the continuing education requirements for the renewal of licenses or certificates that satisfy the statutory requirements provided in this chapter. 9. Periodically review the requirements for the development and communication of appraisals provided in this chapter and adopt rules explaining and interpreting the requirements. 10. Define and explain by rule each stage and step associated with the administrative procedures for the disciplinary process pursuant to this chapter, including: (a) Prescribing minimum criteria for accepting a complaint against a registered trainee appraiser or a licensed or certified appraiser. The deputy director may not consider a complaint for administrative action if the complaint either: (i) Relates to an appraisal that was completed more than five years before the complaint was submitted to the deputy director or more than two years after final disposition of any judicial proceeding in which the appraisal was an issue, whichever period of time is greater. (ii) Is filed against a person who is a staff person of the department and the person is a licensed or certified appraiser and the complaint is against the person's license or certificate and relates to the person's performance of duties. This item applies to a contract investigator who is under contract with the department for the performance of an appraisal review as defined by the uniform standards of professional appraisal practice. (b) Defining the process and procedures used in investigating the allegations of the complaint. The deputy director shall consolidate complaints that are filed within a six-month period of time if the complaints are against the same appraiser, relate to the same appraisal and property and are filed by an entity that is subject to the mandatory reporting provisions of the Dodd-Frank Wall Street reform and consumer protection act (P.L. 111-203; 124 Stat. 1376). Complaints that are consolidated pursuant to this subdivision must be considered and adjudicated as one complaint. (c) Defining the process and procedures used in hearings on the complaint, including a description of the rights of the deputy director and any person who is alleged to have committed the violation. (d) Establishing criteria to be used in determining the appropriate actions for violations. 11. Communicate information that is useful to the public and appraisers relating to actions for violations. 12. Issue decrees of censure, fix periods and terms of probation and suspend and revoke licenses and certificates pursuant to the disciplinary proceedings provided for in section 32-3631. 13. At least monthly transmit to the appraisal subcommittee a listing of all appraisal management companies that have received a state certificate of registration in accordance with this chapter. 14. Investigate and assess potential law or order violations and discipline, suspend, terminate or deny registration renewals of appraisal management companies that violate laws or orders. The deputy director shall report violations of appraisal-related laws or orders and disciplinary and enforcement actions to the appraisal subcommittee. 15. Transmit the national registry fee collected pursuant to section 32-3607 to the appraisal subcommittee. 16. Establish the fees in accordance with section 32-3607. 17. Receive applications for state licenses and certificates. 18. Maintain a registry of the names and addresses of persons who are registered, licensed or certified under this chapter. 19. Retain records and all application materials submitted to the deputy director. 20. Publish on the department's website a current list of supervisory appraisers and registered trainee appraisers. 21. Perform such other functions and duties as may be necessary to carry out this chapter. C. The deputy director may accept and spend federal monies and grants, gifts, contributions and devises from any public or private source to assist in carrying out the purposes of this chapter. These monies do not revert to the state general fund at the end of the fiscal year. D. The deputy director may impose civil penalties pursuant to section 32-3631. 32-3607. Fees; use of credit cards; appraisal subcommittee fund A. The deputy director shall charge and collect fees that are sufficient to fund the activities necessary to carry out this chapter. The fees include: 1. An application fee for licensure or certification of not more than $400. 2. An application fee for a resident temporary license or certificate of not more than $400. 3. An examination fee in an amount to be determined by the deputy director. 4. A fee for renewal of a license, certificate or resident temporary license or certificate of not more than $425. 5. A delinquent renewal fee in addition to the renewal fee of not more than $25. 6. A two-year national registry fee of not to exceed the actual cost of twice the current annual national registry fee for a state-licensed or state-certified appraiser. 7. A one-year national registry fee not to exceed the actual cost of the current annual national registry fee for appraisal management companies. 8. A nonresident temporary licensure or certification fee of not more than $150. 9. A course approval fee of not more than $500. 10. An application fee to be a registered trainee appraiser in an amount to be determined by the deputy director. B. If the appraisal subcommittee raises the national registry fee during the second year of a biennial license or certificate, state-licensed and state-certified appraisers shall pay the additional national registry fee on demand by the deputy director. Failure to pay the additional fee within thirty days after notice by the deputy director subjects the license or certificate holder to a penalty of twice the amount owed but not to exceed $20. The deputy director shall not renew a license or certificate until all outstanding obligations of the license or certificate holder are paid. C. Pursuant to section 35-142, subsection J, the deputy director may accept a credit card or debit card for the payment of fees established by this section. The deputy director may impose a convenience fee for payment made pursuant to this subsection in an amount to be determined by the deputy director. D. The appraisal subcommittee fund is established consisting of national registry fee monies collected pursuant to this section. The department shall administer the fund. The department shall use the monies to promptly remit the national registry fees to the appraisal subcommittee for state-licensed appraisers, state-certified appraisers, registered appraisal management companies or appraisal management companies that operate as a subsidiary of a federally regulated financial institution. 32-3609. Confidential records Except as otherwise provided by law, the following records are confidential: 1. Questions contained in any examination administered by or for the deputy director or in any examination submitted to the deputy director for course approval. 2. Questions asked and the answers of individual examinees, except that the deputy director shall provide the grades of each examinee for public inspection and copying. 3. Appraisal reports or appraisal reviews and supporting documentation deemed confidential under the uniform standards of professional appraisal practice. 4. All documents associated with a complaint as prescribed by section 6-129. 32-3610. Uniform standards of professional appraisal practice; state standards; exception The uniform standards of professional appraisal practice as published by the appraisal standards board are the standards for the appraisal practice in this state unless the deputy director objects. 32-3611. Registration, licensure and certification process A. Applications for original registration, licensure or certification, renewals and examinations shall be made in writing to the deputy director on forms approved by the deputy director. B. Appropriate fees, as fixed by the deputy director pursuant to section 32-3607, shall accompany all applications for original registration, licensure or certification, renewal and examination. C. At the time of filing an application for registration, licensure or certification, each applicant shall sign a pledge to comply with the standards set forth in this chapter and shall state that the applicant understands the types of misconduct for which disciplinary proceedings may be initiated against a registered trainee appraiser or a state-licensed or state-certified appraiser, as set forth in this chapter. D. Except as otherwise provided in this chapter, the deputy director shall require such other proof and request such documents, through the application or otherwise, as the deputy director deems necessary for the interests of the public and to verify the competency of the applicant and shall require that the applicant for registration, licensure or certification: 1. Be at least eighteen years of age and a citizen of the United States or a qualified alien as defined in 8 United States Code section 1641. 2. Not have had a license or certificate denied pursuant to this chapter within one year immediately preceding the application. 3. Not have had a license or certificate revoked pursuant to this chapter within five years immediately preceding the application. 4. State whether or not the applicant has ever been convicted in a court of competent jurisdiction in this or any other state of a felony or of forgery, theft, extortion or conspiracy to defraud or any other crime involving dishonesty or moral turpitude. E. Applications for registration, licensure or certification by persons who are charged or under indictment for fraud involving appraisal of real property may be denied pending final disposition of the charge or indictment. On final disposition, the deputy director shall review the proceedings and act on the application. 32-3612. Classifications of licensure, registration and certification The following classifications are established: 1. State-certified general real estate appraisers consisting of those persons meeting the requirements for certification relating to the appraisal or appraisal review of all types of real property. 2. State-certified residential real estate appraisers consisting of those persons meeting the requirements for certification relating to the appraisal or appraisal review of one to four residential units without regard to value or complexity. The classification includes the appraisal for federally and nonfederally related transactions of vacant or unimproved land that is used for one to four family purposes or for which the highest and best use is for one to four family purposes. This classification does not include the appraisal of a subdivision for which a development analysis or appraisal is necessary. 3. State-licensed real estate appraisers consisting of those persons meeting the requirements for licensing relating to appraisal or appraisal review of noncomplex one to four residential units having a value of less than $1,000,000 and complex one to four residential units having a value of less than $400,000. The classification includes the appraisal for nonfederally related transactions of vacant or unimproved land that is used for one to four family purposes or for which the highest and best use is for one to four family purposes. This classification does not include the appraisal of subdivisions for which a development analysis or appraisal is necessary. 4. Registered trainee appraisers who may not appraise any property type without being subject to the direct control and supervision of the registered trainee appraiser's designated supervisory appraiser. 5. Supervisory appraisers. 32-3613. Application and qualification requirements for licensure A. An application for licensure and examination shall be made on forms as prescribed by the deputy director and be accompanied by the required fees. B. Persons filing for licensure shall meet the minimum criteria for licensure established by the deputy director under section 32-3605, subsection B, paragraph 3. C. A person may not be a state-licensed appraiser unless the person has achieved a passing grade on the national examination approved by the appraiser qualifications board. 32-3614. Application and qualification requirements for certification A. An application for certification and examination shall be made on forms prescribed by the deputy director and be accompanied by the required fees. B. Persons filing for certification shall meet the minimum criteria for certification established by the deputy director under section 32-3605, subsection B, paragraph 2 and section 32-3615. C. A person may not be a state-certified real estate appraiser unless the person has achieved a passing grade on the national examination approved by the appraiser qualifications board. D. Persons presenting evidence showing successful completion of the requirements of this section shall be recognized as having met the qualifications as a state-certified real estate appraiser. 32-3614.01. Application for registered trainee appraiser certificates An application for a registered trainee appraiser certificate shall be made on a form prescribed by the deputy director and be accompanied by the fees prescribed by section 32-3607. An applicant must complete education requirements as outlined by the appraiser qualifications board. The applicant must submit proof that the applicant has successfully passed the required courses that are specifically oriented to the requirements and responsibilities of supervisory appraisers and trainee appraisers and that comply with the specifications established by the appraiser qualifications board. 32-3614.02. Application for supervisory appraiser designation An application for a supervisory appraiser designation shall be made on a form prescribed by the deputy director. The applicant must submit proof of successful completion of a course that is specifically oriented to the requirements and responsibilities of supervisory appraisers and trainee appraisers and that complies with the specifications established by the appraiser qualifications board. 32-3615. Experience requirement for licensure or certification A. Each applicant for licensure or certification shall have experience that was acquired within ten years immediately preceding the filing of the application for licensure or certification. B. Each applicant for licensure or certification shall furnish under oath a detailed listing of the real estate or other appraisal reports, review reports or filed memoranda for each year for which experience is claimed by the applicant. On request, the applicant shall make available to the deputy director for examination copies of appraisal reports that the applicant has prepared in the course of the applicant's appraisal experience. 32-3616. Terms of license or certificate A. Except as provided in subsection B of this section, a license or certificate issued under this chapter is valid for two years from the date of issuance. The expiration date of the license or certificate shall appear on the license or certificate. B. A registration certificate issued for registered trainee appraisers shall be valid for three years from the date of issuance. The expiration date of the registration shall appear on the registration certificate. 32-3617. Nonresident temporary licensure or certification A. Every applicant for nonresident temporary licensure or certification under this chapter who is not a resident of this state shall submit, with the application for nonresident temporary licensure or certification, an irrevocable consent that service of process on the applicant may be made by delivery of the process to the secretary of state if, in an action against the applicant in a court of this state arising out of the applicant's activities as a nonresident temporary state-licensed or state-certified appraiser, the plaintiff cannot effect, in the exercise of due diligence, personal service on the applicant. B. A nonresident of this state who has complied with subsection A of this section may obtain a nonresident temporary license or certificate as a nonresident temporary state-licensed or state-certified appraiser by conforming to all of the requirements of this chapter relating to state-licensed or state-certified appraisers. C. A nonresident of this state who is licensed or certified in another state is entitled to nonresident temporary licensure or certification by the deputy director, which is valid until the completion of each appraisal assignment but not for a period of more than one year after the date of issuance, if: 1. The nonresident appraiser's business in this state is of a temporary nature. 2. The nonresident appraiser applies with the deputy director on forms prescribed by the deputy director. 3. The nonresident appraiser pays the nonresident temporary licensure or certification fee required by the deputy director. D. The deputy director shall adopt rules in furtherance of this section to avoid the abuse of the temporary practice rights in this state. 32-3618. Reciprocity Reciprocity shall be granted to an appraiser if all of the following conditions apply: 1. The appraiser holds a credential from a state that is in compliance with 12 United States Code sections 3310, 3332, 3333, 3335, 3338, 3339, 3341, 3342, 3345, 3346, 3347, 3348, 3350, 3351, 3353, 3354 and 3355. 2. The credential requirements for the state described in paragraph 1 of this section meet or exceed those of this state. 3. The appraiser has completed an application for licensure or certification on a form as prescribed by the deputy director and submitted the fees prescribed pursuant to section 32-3607. 32-3619. Renewal of license or certificate; fees A. Except as otherwise provided in this section and in section 32-4301, to renew a registration certificate as a registered trainee appraiser or a license or certificate as a state-licensed or state-certified appraiser, the holder of a current, valid license or certificate shall apply and pay the prescribed fee to the deputy director not earlier than ninety days before the license or certificate expires. With the application for renewal, the registered trainee appraiser or the state-licensed or state-certified appraiser shall present evidence in the form prescribed by the deputy director of having completed the continuing education requirements for renewal specified in section 32-3625. B. The deputy director may accept a renewal application after the expiration date and within ninety days of the date of expiration but shall assess a delinquent renewal fee in addition to the renewal fee. C. An appraiser or registered trainee appraiser who fails to seek renewal within the time period specified in subsection A or B of this section must reapply for licensure or certification and meet all of the requirements of this chapter. D. An appraiser or registered trainee appraiser shall not engage in, advertise or purport to engage in real estate appraisal activity in this state after a license or certificate has expired and before the renewal of the expired license or certificate except as provided in section 41-1092.11. 32-3620. Basis for denial of a license or certificate A. The deputy director may deny the initial issuance or renewal of a license or certificate as a registered trainee appraiser, a supervisory appraiser or a state-licensed or state-certified appraiser to an applicant who has been convicted of a felony or on any of the grounds prescribed in this chapter. B. To assist in determining whether grounds exist to deny the initial issuance or renewal of a license or certificate to an applicant, the deputy director shall require the applicant to apply for a valid fingerprint clearance card issued pursuant to section 41-1758.03. C. A person who is denied the issuance of a license or certificate may request, and if requested shall receive, a hearing in accordance with title 41, chapter 6, article 10. 32-3621. Addresses; telephone numbers; email addresses; notification of change A. Each registered trainee appraiser or state-licensed or state-certified appraiser shall advise the deputy director of the address of the person's principal place of business and all other addresses at which the person is currently engaged in the business of preparing real property appraisal reports. B. Every registered trainee appraiser or state-licensed or state-certified appraiser shall notify the deputy director of the person's current residence address. Residence addresses on file with the deputy director are exempt from disclosure as public records. C. Every registered trainee appraiser or state-licensed or state-certified appraiser shall provide the person's email address if one exists and a daytime telephone number to the deputy director. D. If a registered trainee appraiser or a state-licensed or state-certified appraiser changes the person's place of business or residence, email address or daytime telephone number, the person shall give the deputy director written notification of the change within ten days after the change. 32-3622. Licenses and certificates A. A license or certificate issued under this chapter shall be signed on behalf of the deputy director and shall bear the license or certificate number assigned by the deputy director. B. Each state-licensed or state-certified appraiser shall place the appraiser's license or certificate number adjacent to or immediately below the title "state-licensed appraiser" or "state-certified appraiser", and the number shall be included in an appraisal report or in a contract or other instrument used by the license or certificate holder in conducting appraisal activities. 32-3623. Use of term A. The term "state-licensed appraiser" or "state-certified appraiser" may only be used to refer to individuals who hold the license or certificate and may not be used after or immediately in connection with the name or signature of a firm, partnership, corporation or group or in such a manner that it might be interpreted as referring to a firm, partnership, corporation or group or anyone other than the individual holder of the license or certificate. B. A license or certificate shall not be issued under this chapter to a corporation, partnership, firm or group. This subsection shall not be construed to prevent a state-licensed or state-certified appraiser from signing an appraisal report on behalf of a corporation, partnership, firm or group. 32-3624. Professional corporations and partnerships; appraisal assistance A corporation, partnership or other business entity may provide appraisal services in connection with transactions related to this chapter if the appraisal is prepared by individuals who are licensed or certified in accordance with this chapter. An individual who is not a state-licensed or state-certified appraiser may provide clerical or administrative assistance in the preparation of an appraisal document. An individual who is a registered trainee appraiser may be involved in developing and reporting the appraisal if both of the following apply: 1. The registered trainee appraiser is under the direct supervision of a state-licensed or state-certified appraiser as prescribed in section 32-3612, paragraph 4. 2. The final appraisal document is approved and the certification is signed by an individual who is a state-licensed or state-certified appraiser. 32-3625. Continuing education A. As a prerequisite to renewal of a license or certificate, a state registered trainee appraiser or a state-licensed or state-certified appraiser shall present evidence satisfactory to the deputy director of having met the continuing education requirements of either subsection B or C of this section. B. The basic continuing education requirement for renewal of a license or certificate is the completion by the applicant, during the immediately preceding term of the license or certificate, of courses or seminars that are approved by the deputy director. C. An applicant for reregistering, relicensing or recertification may satisfy all or part of the continuing education requirements by presenting evidence of the following, which shall be approved by the deputy director: 1. Completion of an education program of study determined by the deputy director to be equivalent, for continuing education purposes, to courses approved by the deputy director pursuant to subsection B of this section. 2. Participation other than as a student in educational processes and programs that are approved by the deputy director and that relate to appropriate appraisal theory, practices or techniques, including teaching, program development and preparation of textbooks, monographs, articles and other instructional materials, not to exceed fifty percent of an applicant's continuing education requirements and not for the same course in consecutive renewal periods. D. The deputy director shall adopt rules to ensure that a person who renews the person's license or certificate as a state-licensed or state-certified appraiser follows practices and techniques that provide a high degree of service and protection to members of the public with whom the person deals in the professional relationship under the authority of the license or certificate. The rules shall include the following: 1. Policies and procedures for obtaining the deputy director's approval of courses and instruction pursuant to subsection B of this section. 2. Standards, policies and procedures to be applied by the deputy director in evaluating an applicant's claims of equivalency in accordance with subsection C of this section. 3. Standards, monitoring methods and systems for recording attendance to be employed by course sponsors as a prerequisite to the deputy director's approval of courses for credit. E. In adopting rules pursuant to subsection D, paragraph 1 of this section, the deputy director shall consider courses of instruction, seminars and other appropriate appraisal educational courses or programs previously or hereafter developed by or under the auspices of professional appraisal organizations and used by those associations for purposes of designation or indicating compliance with the continuing education requirements of such organizations. A person who offers these courses may not discriminate in the opportunity to participate in these courses on the basis of membership or nonmembership in an appraisal organization. F. An amendment or repeal of a rule adopted by the deputy director pursuant to this section may not deprive a state registered trainee appraiser or a state-licensed or state-certified appraiser of credit toward renewal of a license or certificate for any course of instruction that the applicant either completed or enrolled in before the amendment or repeal of the rule that would have qualified for continuing education credit as the rule existed before the repeal or amendment. G. A license or certificate as a registered trainee appraiser or a state-licensed or state-certified appraiser that has been suspended as a result of disciplinary action by the deputy director shall not be reinstated unless the applicant presents evidence of completion of the continuing education required by this chapter. H. A license or certificate that has been revoked by the deputy director shall not be reinstated unless the applicant successfully completes the appropriate requirements of the appraisal qualifications board, including education and passage of the current national examination. 32-3627. Inactive license or certificate status; reactivation application; renewal application and fee; continuing education A. Any license or certificate holder may request that the license or certificate be placed on inactive status by filing with the deputy director an application that includes all of the following: 1. The license or certificate holder's name. 2. The license or certificate number. 3. A request for inactive status. B. The period a license or certificate is on inactive status under this section may not exceed two years. C. A license or certificate holder who is on inactive status shall not do either of the following: 1. Represent that the license or certificate holder is an active appraiser licensed or certified in this state. 2. Perform real estate appraisals or appraisal reviews on real estate in this state. D. A license or certificate holder who is on inactive status under this section must file with the deputy director an application for reactivation of the license or certificate before resuming real estate appraisal activity. E. To return to active status, the inactive license or certificate holder shall do both of the following: 1. File with the deputy director an application for reactivation of the license or certificate. 2. Provide evidence of completion of the required continuing education that the license or certificate holder would have been required to meet during the period when the license or certificate holder's license or certificate was on inactive status. F. If the holder of an inactive license or certificate under this section does not file an application for reactivation within a two-year period, that person must reapply for licensure or certification pursuant to the requirements of this chapter. G. A license or certificate holder who is on inactive status pursuant to this section remains on inactive status until the deputy director approves the application for reactivation of the license or certificate. H. The deputy director may take disciplinary or remedial action against a license or certificate holder who is on inactive status pursuant to this section. I. A license or certificate holder who places the holder's license or certificate on inactive status must pay the renewal fee and complete an application for renewal as prescribed in section 32-3619. The license or certificate holder on inactive status is not required to provide evidence of completion of the continuing education requirements until the application for reactivation is filed pursuant to subsection E of this section. 32-3628. Inactive license or certificate status during military duty; reactivation application; renewal application and fee; continuing education A. A license or certificate holder who is ordered to active military duty with the United States armed forces may request that the license or certificate be placed on inactive status by filing with the deputy director an application that includes all of the following: 1. The license or certificate holder's name. 2. The license or certificate number. 3. The date that the active military duty begins. 4. A request for inactive status. B. The license or certificate is deemed to be on inactive status while the license or certificate holder is on active military duty, but the period of inactive status may not exceed three years. C. A license or certificate holder who is on inactive status pursuant to this section shall not do either of the following: 1. Represent that the holder is an active appraiser licensed or certified in this state. 2. Perform real estate appraisals or appraisal reviews on real estate in this state. D. A license or certificate holder who is on inactive status must file with the deputy director an application for reactivation of the license or certificate within one hundred eighty days after returning home from active military duty. E. If the holder of an inactive license or certificate timely files an application for reactivation of the license or certificate, the license or certificate is returned to active status on the deputy director's approval of the application for reactivation. The license or certificate holder shall complete the continuing education requirements that would otherwise have been required when the license or certificate was on inactive status within ninety days after the person's return from active military duty. The license or certificate holder must submit proof of completion of any continuing education requirements to the deputy director not later than one hundred twenty days after completion. F. If the holder of an inactive license or certificate under this section does not timely apply for reactivation as required by subsection D of this section, the holder must reapply for licensure or certification meeting all of the requirements of this chapter. G. A license or certificate holder who is on inactive status pursuant to this section remains on inactive status until the deputy director approves the application for reactivation of the license or certificate. H. The holder of an inactive license or certificate applying for reactivation of the license or certificate under this section shall include with the application for reactivation a copy of the documentation from the armed forces showing the period of time that the holder of the inactive license or certificate was on active military duty. I. Any license or certificate holder who places the holder's license or certificate on inactive status under this section must pay the renewal fee prescribed in section 32-3607 and complete an application for renewal pursuant to section 32-3619. A license or certificate holder on inactive status pursuant to this section who files an application for reactivation shall provide evidence of completion of the continuing education requirements pursuant to subsection E of this section. J. For the purposes of this section, active military duty does not include service persons performing weekend drill and annual training. 32-3631. Disciplinary proceedings; civil penalties A. The rights of an applicant or holder under a license or certificate as a registered trainee appraiser or a state-licensed or state-certified appraiser may be revoked or suspended, or the holder of the license or certificate may otherwise be disciplined, including being placed on probation as prescribed by rule, in accordance with this chapter on any of the grounds set forth in this section. The deputy director may investigate the actions of a registered trainee appraiser or a state-licensed or state-certified appraiser in this state or in any other state and may revoke or suspend the rights of a license or certificate holder or otherwise discipline a registered trainee appraiser or a state-licensed or state-certified appraiser for any of the following acts or omissions: 1. Procuring or attempting to procure a license or certificate pursuant to this chapter by knowingly making a false statement, submitting false information, refusing to provide complete information in response to a question in an application for a license or certificate or committing any form of fraud or misrepresentation. 2. Failing to meet the minimum qualifications established by this chapter. 3. Paying or offering to pay money or other considerations other than as provided by this chapter to any member or employee of the department to procure a license or certificate under this chapter. 4. Being convicted, including based on a plea of guilty, of a crime that is substantially related to the qualifications, functions and duties of a person developing appraisals and communicating appraisals to others, or being convicted of any felony or any crime involving moral turpitude. 5. Committing an act or omission involving dishonesty, fraud or misrepresentation with the intent to substantially benefit the license or certificate holder or another person or with the intent to substantially injure another person. 6. Violating any of the standards of the development or communication of appraisals as provided in this chapter. 7. Being negligent or incompetent as a state-licensed or state-certified appraiser in developing an appraisal, in preparing an appraisal report or in communicating an appraisal. 8. Wilfully disregarding or violating any provisions of this chapter or an order or rule of the deputy director for the administration and enforcement of this chapter. 9. Accepting an appraisal assignment if the employment itself is contingent on the appraiser reporting a predetermined estimate, analysis or opinion or if the fee to be paid is contingent on the opinion, conclusion or value reached or on the consequences resulting from the appraisal assignment. 10. Violating the confidential nature of any records to which the registered trainee appraiser or the state-licensed or state-certified appraiser gains access through employment or engagement as a registered trainee appraiser or an appraiser. 11. Having a final civil judgment entered against the person on grounds of fraud, misrepresentation or deceit in the making of any appraisal. B. In a disciplinary proceeding based on a civil judgment, a registered trainee appraiser or state-licensed or state-certified appraiser may present matters in mitigation and extenuation. C. The deputy director may issue subpoenas for the attendance of witnesses and the production of books, records, documents and other evidence necessary and relevant to an investigation or hearing. D. The lapsing or suspension of a license or certificate by operation of law or by an order or decision of the deputy director or a court of law, or the voluntary surrender of a license or certificate by a license or certificate holder, shall not deprive the deputy director of jurisdiction to do either of the following within twenty-four months after the expiration of the license or certificate pursuant to section 32-3616: 1. Proceed with any investigation of or action or disciplinary proceeding against the license or certificate holder. 2. Render a decision suspending or revoking the license or certificate or denying the renewal or right of renewal of the license or certificate. E. If the deputy director determines that a state-licensed or state-certified appraiser is in violation of this chapter, the deputy director may take disciplinary or remedial action and may impose a civil penalty not to exceed $3,000 per complaint filed with the deputy director pursuant to this chapter. All civil penalties collected pursuant to this subsection shall be deposited in the department revolving fund established by section 6-135. 32-3632. Hearing and judicial review; costs and fees; appeal A. The hearing on the charges shall be at a time and place prescribed by the deputy director and shall be in accordance with title 41, chapter 6, article 10. B. If a case proceeds to a hearing before either the deputy director or an administrative law judge, both of the following apply: 1. If the department sustains its burden of proof and prevails on the merits of the case, the department may collect from the respondent applicant, registered trainee appraiser, appraiser or property tax agent the department's costs and expenses associated with the formal hearing, including reasonable attorney fees, expert testimony and preparation fees, investigative costs and expenses and costs incurred relating to the office of administrative hearings and court reporters. All monies collected pursuant to this paragraph shall be deposited in the department revolving fund established by section 6-135. 2. If the department does not sustain its burden of proof and the respondent applicant, registered trainee appraiser, appraiser or property tax agent prevails on the merits of the case, the respondent applicant, registered trainee appraiser, appraiser or property tax agent may collect from the department fees and other costs associated with the formal hearing. C. Except as provided in section 41-1092.08, subsection H, any final decision or order of the deputy director may be appealed to the superior court pursuant to title 12, chapter 7, article 6. 32-3633. Undue influence; classification A person who induces or influences the actions of an appraiser for purposes of securing an appraisal that is grossly misleading, or fraudulent, is guilty of a class 6 felony. 32-3634. Prohibition against discrimination If appraisal users require specific appraiser qualifications or experience for certain transactions necessary to carry out or to meet the responsibilities of the appraisal user, these requirements shall be related to the special skills that are required of an individual in connection with the specific appraisal assignment and shall not exclude an appraiser for consideration for such assignment solely by membership or lack of membership in any particular professional appraisal organization or association. 32-3635. Standards of practice; unprofessional conduct A. A registered trainee appraiser or a state-licensed or state-certified appraiser shall comply with the standards of professional appraisal practice. B. An appraisal or appraisal report shall not be issued by a real estate appraiser unless it meets the appraisal standards established by this chapter and rules adopted pursuant to this chapter. C. An appraisal review report shall clearly indicate the nature of the review process undertaken and shall separate the review function from any other functions. D. All federally related appraisals shall be in writing. E. Failure to pay the fees and expenses authorized by section 32-3632, subsection B is unprofessional conduct as defined by the uniform standards of professional appraisal practice. 32-3636. Contingent fees A state-licensed or state-certified appraiser may not accept a fee for an appraisal assignment that is contingent on the appraiser reporting a predetermined estimate, analysis or opinion or that is contingent on the opinion, conclusion or value reached or on the consequences resulting from the appraisal assignment. 32-3637. Retention of records; definition A. A state-licensed or state-certified appraiser shall retain a work file for at least five years after preparation of the work file or at least two years after final disposition of any judicial proceeding in which the appraiser provided testimony related to the work file, whichever period of time is greater. B. A state-licensed or state-certified appraiser shall do either of the following: 1. Have custody of the appraiser's work file. 2. Make appropriate work file retention, access and retrieval arrangements with the party having custody of the work file. C. The deputy director may inspect all records required to be maintained under this chapter by the state-licensed or state-certified appraiser on reasonable notice to the appraiser. D. For the purposes of this section, "work file" includes documentation that is necessary to support an appraiser's analyses, opinions and conclusions and that demonstrates compliance with the uniform standards of professional appraisal practice. 32-3638. Violation; classification Any person who performs a real estate appraisal or appraisal review, who is not licensed or certified under this chapter and who knowingly assumes or uses any title, designation or abbreviation likely to create the impression of licensure or certification by this state or any person who knowingly provides false or fraudulent information to the deputy director is guilty of a class 1 misdemeanor. 32-3639. Damages; injunctive relief If the deputy director has a reasonable basis to believe, after investigation, that any person is violating any provision of this chapter, the deputy director may bring an action in superior court for appropriate injunctive or other equitable relief, damages sustained and taxable costs and reasonable attorney fees. 32-3640. Prohibition; indemnification agreement A. Any person, party or entity who hires, engages or communicates with an appraiser directly or through an agent shall not require or attempt to require the appraiser to sign any indemnification agreement that would hold harmless the hiring person, party or entity, its owners, agent's employees or independent contractors from any liability, damage, loss or claim arising from the services performed by the person, party or entity, its owners, agent's employees or independent contractors. B. This section does not limit liability for services performed by the appraiser. 32-3651. Definitions In this article, unless the context otherwise requires: 1. "Analysis" means the review of a property valuation or legal classification established by a county assessor in the representation of a person in appealing the property valuation or legal classification to the county assessor. 2. "Appraisal" means the development of real or personal property valuation or legal classification opinions or conclusions. 3. "Property tax agent" means an individual who is designated by a person or is an employee of an entity designated as an agent pursuant to section 42-16001, who acts on behalf of a person who owns, controls or possesses property valued by a county assessor or the department of revenue and who receives a fee for the analysis of any matter relating to the review of the valuation or legal classification of the person's property before the assessor, the county or state board of equalization or the department of revenue. Property tax agent does not include a person who is admitted to practice law in this state, an employee of the person owning, controlling or possessing the property or an employee of an entity designated pursuant to section 42-16001, if such employee is performing a secretarial, clerical or administrative support function. 32-3652. Registration; renewal; fees A. An individual who wishes to act as a property tax agent shall apply for registration by submitting to the deputy director a completed application form prescribed by the deputy director with the initial registration fee. The applicant shall also file with the deputy director an affidavit stating whether the applicant has been convicted of a felony or any misdemeanor involving dishonesty or moral turpitude in this or any other state within the last ten years. The deputy director may review the affidavit and issue or deny the registration based on its findings. B. Except as provided in section 32-4301, registration is valid for two years. An individual may renew a registration by submitting to the deputy director a renewal form prescribed by the deputy director with the renewal fee on or before the date the registration expires. C. An appraiser who is licensed or certified pursuant to this chapter may register and renew registration as a property tax agent without paying the fee prescribed by this section. D. The deputy director shall issue a certificate of registration to an individual if the individual complies with this section and is not prohibited from registering pursuant to section 32-3654. E. A person shall not act as a property tax agent if the person is not registered pursuant to this section. F. The deputy director shall collect from each individual a fee of: 1. $200 for an initial registration. 2. $100 for a renewal. 32-3653. Property tax agent conduct A property tax agent: 1. Shall not knowingly misrepresent any information or act in a fraudulent manner. 2. Shall not prepare documents or provide evidence in a property valuation or legal classification appeal unless the agent is authorized by the property owner to do so and any required agency authorization form has been filed. 3. Shall not knowingly submit false or erroneous information in a property valuation or legal classification appeal. 4. Shall use appraisal standards and methods that are adopted by the deputy director when the agent submits appraisal information in a property valuation or legal classification appeal. 32-3654. Disciplinary actions A. On the complaint of any person or on the deputy director's own motion, the deputy director shall investigate any suspected violation of this article by a property tax agent. If the deputy director finds a violation, the deputy director may issue a letter of concern. B. If the deputy director finds that the property tax agent committed any of the following violations, the deputy director shall revoke or suspend the agent's registration: 1. Secured registration by fraud or deceit. 2. Committed an act or is responsible for an omission involving fraud or knowing misrepresentation with the intent to obtain a benefit. 3. Knowingly violated section 32-3653. C. The deputy director shall: 1. Sus