2004 Legislation
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HOUSE BILL NO. 486 – Real estate appraiser license

HOUSE BILL NO. 486

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Bill Status



H0486...........................................................by BUSINESS
REAL ESTATE APPRAISER LICENSE - Amends existing law relating to the scope
of authority of the Board of Real Estate Appraisers to further define
exemptions.
                                                                        
01/20    House intro - 1st rdg - to printing
01/21    Rpt prt - to Bus
02/06    Rpt out - rec d/p - to 2nd rdg
02/09    2nd rdg - to 3rd rdg
02/11    3rd rdg - PASSED - 70-0-0
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
      Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
      Jaquet, Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez,
      McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato,
      Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts,
      Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
      Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Gagner
    Title apvd - to Senate
02/12    Senate intro - 1st rdg - to Com/HuRes
02/18    Rpt out - rec d/p - to 2nd rdg
02/19    2nd rdg - to 3rd rdg
03/10    3rd rdg - PASSED - 21-12-2
      AYES -- Andreason(Andreason), Bunderson, Burtenshaw, Cameron,
      Compton, Darrington, Goedde, Hill, Little, Lodge, Malepeai, Marley,
      Noble, Noh, Pearce, Richardson, Sorensen, Stegner, Sweet, Werk,
      Williams
      NAYS -- Bailey, Burkett, Calabretta, Davis, Gannon, Geddes, Kennedy,
      Keough, McKenzie, McWilliams, Schroeder, Stennett
      Absent and excused -- Brandt, Ingram
    Floor Sponsor - Noble
    Title apvd - to House
03/11    To enrol
03/12    Rpt enrol - Sp signed
03/15    Pres signed
03/16    To Governor
03/19    Governor signed
         Session Law Chapter 85
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 486
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SCOPE OF AUTHORITY OF THE BOARD  OF  REAL  ESTATE  APPRAISERS;
  3        AMENDING  SECTION 54-4105, IDAHO CODE, TO FURTHER DEFINE EXEMPTIONS AND TO
  4        MAKE A TECHNICAL CORRECTION.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION 1.  That Section 54-4105, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
                                                                        
  8        54-4105.  EXCEPTIONS.  (1)  The provisions of this chapter do not restrict
  9    the right to use the term "appraiser," provided that such term is not used  in
 10    a manner that creates the impression of certification by the state of Idaho to
 11    perform  real estate appraisals other than ad valorem tax appraisals. However,
 12    nothing in this chapter shall entitle a state licensed or state certified real
 13    estate appraiser to appraise real estate for ad valorem tax purposes unless he
 14    has first been certified by the Idaho state tax commission pursuant to section
 15    63-105A(17), Idaho Code.
 16        (2)  The provisions of this chapter shall not apply  to  a  licensed  real
 17    estate  broker, associate broker or salesperson who, in the ordinary course of
 18    his business gives an opinion of the price of real estate for the purpose of a
 19    prospective listing or sale, provided that such person does not represent him-
 20    self as being a state licensed or certified real estate appraiser.
 21        (3)  The provisions of this chapter shall not prohibit a real estate  bro-
 22    ker or associate broker licensed under chapter 20, title 54, Idaho Code, whose
 23    license  is active and in good standing, from rendering a broker's price opin-
 24    ion, for which the broker may charge a fee, provided the broker's price  opin-
 25    ion complies with the following requirements:
 26        (a)  The  broker's  price opinion shall be in writing and contain the fol-
 27        lowing:
 28             (i)    A statement of the intended purpose of the price opinion;
 29             (ii)   A brief description  of  the  subject  property  and  property
 30             interest to be priced;
 31             (iii)  The  basis  of  reasoning  used to reach the conclusion of the
 32             price, including the applicable  market  data  and/or  capitalization
 33             computation;
 34             (iv)   Any assumptions or limiting conditions;
 35             (v)    A  disclosure  of any existing or contemplated interest of the
 36             broker(s) issuing the opinion;
 37             (vi)   The name and signature of  the  broker(s)  issuing  the  price
 38             opinion and the date of its issuance;
 39             (vii)  A  disclaimer  that,  unless  the broker is licensed under the
 40             Idaho real estate appraisers act, chapter 41, title 54,  Idaho  Code,
 41             the  report  is not intended to meet the uniform standards of profes-
 42             sional appraisal practice.;
 43             (viii) A disclaimer that the broker's price opinion is  not  intended
                                                                        
                                           2
                                                                        
  1             to  be  an appraisal of the market value of the property, and that if
  2             an appraisal is desired, the services  of  a  licensed  or  certified
  3             appraiser should be obtained.
  4        The broker's price opinion permitted under this chapter may not be used as
  5        an  appraisal, or in lieu of an appraisal, in a federally related transac-
  6        tion.
  7        (4)  Any person who is not licensed or certified under the  provisions  of
  8    this chapter may assist a state licensed or certified real estate appraiser in
  9    the  performance  of an appraisal, provided that he is actively and personally
 10    supervised by the state licensed or certified appraiser and  provided  further
 11    that  any  appraisal  report  rendered  in  connection  with  the appraisal is
 12    reviewed and signed by the state licensed or certified real estate appraiser.
 13        (5)  The provisions of this chapter requiring mandatory licensure or  cer-
 14    tification  shall not apply to employees or agents of the Idaho transportation
 15    department when estimating the market value of or  just  compensation  for,  a
 16    property  that  is  subject  to  eminent domain by the department, or property
 17    owned by the department that has been declared  surplus,  where  a  noncomplex
 18    appraisal  would  normally be ordered, and the market value or compensation is
 19    ten thousand dollars ($10,000) or less. Such estimates of market value or just
 20    compensation shall be reviewed and approved by an Idaho state  certified  gen-
 21    eral real estate appraiser. Idaho state certified general real estate apprais-
 22    ers  who  estimate or review market value of property under this section shall
 23    be exempt from the requirements of uniform standards of professional appraisal
 24    practice. A value estimate shall be provided to the property owner  who  shall
 25    also be informed of his right to request and receive an appraisal of his prop-
 26    erty.
 27        (6)  This  chapter shall not prohibit a property owner from expressing his
 28    personal opinion of the value of his own property, nor shall the provisions of
 29    this chapter prohibit a lender, or employee of  a  lending  institution,  from
 30    forming  and  expressing an opinion of collateral value in the ordinary course
 31    of business including, but not limited to, mortgaging property, underwriting a
 32    loan, or foreclosing a loan, so long as such opinion of  collateral  value  is
 33    not  represented as being an appraisal of the market value of the property, or
 34    prepared under the provisions of this chapter.
 35        (7)  This chapter shall not prohibit an attorney or accountant  from  ren-
 36    dering  professional  advice  within the ordinary course of his profession, so
 37    long as such advice is not represented to be an appraisal of the market  value
 38    of the property.

Statement of Purpose / Fiscal Impact


                     STATEMENT  OF  PURPOSE
                            RS 13466
Amend section 54-4105, Idaho Code, to add language that would allow
Idaho transportation department personnel to estimate the value of
property owned by the Idaho transportation department that has been
declared surplus or property that is subject to eminent domain when
the property value would be $10,000 or less. Additionally this
language would allow state certified general real estate appraisers
exemption from the requirements of USPAP when they are working
under the provisions of this chapter. Revising the current law will
clarify requirements for these estimates and will remove concerns
from appraisers and appraiser reviewers as to their legal
authority.


                         FISCAL  IMPACT
There is no fiscal impact on general or dedicated funds.




CONTACT   
Name:     Rayola Jacobsen
Agency:   Occupational License Bureau
Phone:    334-3233

Statement of Purpose/Fiscal Impact                       H 486