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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004IN 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 valueof or just compensationfor, a16 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 valueor compensationis 19 ten thousand dollars ($10,000) or less. Such estimates of market valueor just20compensationshall 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 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