VOLUME 49, ISSUE 16
AUGUST 21, 2017
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
STATE BOARD OF REAL ESTATE APPRAISERS
Proposed Amendments: N.J.A.C. 13:40A-4.6 and 4.8
Click here to view Interested Persons Statement
Responsibilities of Supervising Appraiser; Continuing Education Requirements
Authorized By: Board of Real Estate Appraisers, Charles Kirk, Executive Director.
Authority: N.J.S.A. 45:14F-8.
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
Proposal Number: PRN 2017-197.
Submit comments by October 20, 2017, to:
Charles Kirk, Executive Director
State Board of Real Estate Appraisers
PO Box 45032
Newark, New Jersey 07101
or electronically at: http://www.njconsumeraffairs.gov/Proposals/Pages/default.aspx.
The agency proposal follows:
The Board of Real Estate Appraisers (Board) is proposing to amend N.J.A.C. 13:40A-4.6 and 4.8 to comply with recommendations made to the Board by the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council concerning the qualifications for supervising appraisers and the continuing education requirements for trainee real property appraisers.
The ASC is charged with monitoring the certification and licensing programs for real estate appraisers in each state to determine whether the state's policies, practices, and procedures are consistent with Title XI and enforcing the state's compliance with the requirements of Title XI. Title XI also established the Appraisal Foundation to promote professionalism in appraising. The Appraiser Qualifications Board (AQB) of the Appraisal Foundation is charged with setting the minimum qualifying education, experience, and continuing education and examination requirements to become and remain a state-certified or licensed appraiser.
In September 2016, the ASC visited the Board's office to review its real estate appraiser regulatory program. After the review, the ASC issued a report to the Board recommending two amendments to the Board's rules to bring them into compliance with the AQB criteria.
The ASC's first recommendation concerns N.J.A.C. 13:40A-4.6(b), which requires the supervising appraiser to be in good standing and not subject to any disciplinary action by the Board. The AQB criteria provides that supervisory appraisers shall not have been subject to any disciplinary action within any jurisdiction with the last three years that affects the supervising appraiser's legal eligibility to engage in appraisal practice. In accordance with the ASC recommendations, the Board is proposing to amend N.J.A.C. 13:40A-4.6(b) to specify that supervising appraisers shall not have been subject to disciplinary action in any jurisdiction that affects the supervising appraiser's legal eligibility to engage in appraisal practice within the last three years. The Board also proposes to delete as an example "stayed suspension" because in some jurisdictions, including New Jersey, a stayed suspension does not affect an individual's legal eligibility to engage in appraisal practice.
The ASC also recommended that the Board amend its continuing education requirements for trainee real property appraisers to require them to complete continuing education in each year of their training. As of July 1, 2013, states are required to adopt the AQB's minimum requirements for trainee and supervisory appraisers. The AQB criteria establishes that all appraisers, irrespective of classification, including trainees, must meet the same continuing education requirements. Existing N.J.A.C. 13:40A-4.8(a) provides that individuals holding a trainee permit for more than two years are required to satisfy the AQB continuing education requirements. In accordance with the ASC recommendation, the Board proposes to amend N.J.A.C. 13:40A-4.8(a) to remove the provision limiting the continuing education requirement to those trainees who hold a permit for more than two years.
In addition, the Board is proposing to delete N.J.A.C. 13:40A-4.8(c) because, as of July 1, 2013, in accordance with the AQB criteria, an individual holding a trainee permit for more than two years may no longer be granted an extension to satisfy the continuing education requirements. The Board also proposes to amend subsection (d), which is proposed to be recodified as subsection (c), to delete reference to the time frame that has passed.
The Board has determined that the comment period for this notice of proposal shall be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this notice is excepted from the rulemaking calendar requirement.
The Board believes that the proposed amendment to N.J.A.C. 13:40A-4.6(b) will have a positive social impact on the public and trainee real estate appraisers by ensuring that the supervising appraisers have not been subject to any disciplinary action within any jurisdiction within the past three years. In addition, the Board believes that the proposed amendments to N.J.A.C. 13:40A-4.8 will have a positive social impact on trainee real estate appraisers by ensuring that trainee real estate appraisers are participating in a program that maintains and increases their skill, knowledge, and competency in real property appraising.
The Board believes that the proposed amendment to N.J.A.C. 13:40A-4.6(b) will not have any economic impact. The Board believes that the proposed amendment to N.J.A.C. 13:40A-4.8(b) will have an economic impact upon trainee real estate appraisers to the extent they incur costs complying with the AQB continuing education requirements for each year that they are a trainee. The Board notes that this continuing education requirement is mandated by the AQB and believes that any costs imposed by the proposed amendments are significantly outweighed by the benefit to consumers to ensure that real estate appraising services are provided by qualified professionals who meet the minimum training requirements established by the AQB.
Federal Standards Statement
A Federal standards analysis is not required because the proposed amendments do not exceed, and in some cases, incorporate by reference, standards and requirements set forth by the AQB, which may be viewed as establishing and setting forth Federal standards and requirements.
The Board does not believe that the proposed amendments will either increase or decrease the number of jobs in the State.
Agriculture Industry Impact
The proposed amendments will have no impact on the agriculture industry in this State.
Regulatory Flexibility Statement
Currently there are approximately 2,696 licensed or certified real estate appraisers and 61 trainees. Because trainee real estate appraisers are not licensed or certified to practice, they cannot be deemed "small businesses" and no analysis is required as to them. If, however, for the purposes of the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., real estate appraisers are considered "small businesses," then the following analysis applies.
The proposed amendments impose new compliance requirements for supervising appraisers as discussed in the Summary above. The proposed amendments do not impose any new reporting or recordkeeping requirements. No additional professional services are necessary to comply with the proposed amendments. The costs of the compliance requirements are discussed above under the Economic Impact section. Because the proposed amendments further the welfare of the citizens of the State, the proposed amendments will be applied uniformly to all real estate appraiser licensees and certificate holders, and no differing compliance, reporting, or recordkeeping requirements are provided based on size of the business.
Housing Affordability Impact Analysis
The proposed amendments will have an insignificant impact on the affordability of housing in New Jersey, and there is an extreme unlikelihood that the proposed amendments would evoke a change in the average costs associated with housing because the proposed amendments concern continuing education requirements for real estate appraiser trainees and qualifications for real estate appraiser supervisors.
Smart Growth Development Impact Analysis
The proposed amendments will have an insignificant impact on smart growth, and there is an extreme unlikelihood that the proposed amendments would evoke a change in housing production in Planning Areas 1 or 2, or within designated centers, under the State Development and Redevelopment Plan in New Jersey because the proposed amendments concern continuing education requirements for real estate appraiser trainees and qualifications for real estate appraiser supervisors.
Full text of the proposal follows (additions indicated in boldface
thus; deletions indicated in brackets [thus]):
SUBCHAPTER 4. TRAINEE PERMITS
13:40A-4.6 Responsibilities of supervising appraiser
(a) (No change.)
(b) Supervising appraisers shall be in good standing with the Board and shall not have been subject to any disciplinary action that affects their legal eligibility to engage in appraisal practice, including revocation[,]
or suspension, [or stayed suspension, by the Board,] within
any jurisdiction within the last three years [from the beginning of the supervision].
(c)-(e) (No change.)
13:40A-4.8 Continuing education requirements
(a) An individual holding a trainee permit [for more than two years shall complete, by the time the application is submitted to the Board, during the third and fourth years that the trainee permit is held,]
shall complete the continuing education requirements as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which, are incorporated herein by reference as part of this rule.
(b) (No change.)
[(c) An individual holding a trainee permit for more than two years may request an extension of time to satisfy continuing education requirements as provided in N.J.A.C. 13:40A-5.10.]
(c) [Beginning on July 1, 2013, an individual holding a trainee permit for more than two years may no longer be granted an extension of time to satisfy continuing education requirements as provided in N.J.A.C. 13:40A-5.10(a).] As provided in N.J.A.C. 13:40A-5.10(b), an individual holding a trainee permit may request, due to extenuating circumstances, to be placed on inactive status to complete all continuing education requirements.
In order to ensure your comments are received, please send your comments
concerning any rule proposals via email to DCAProposal@dca.lps.state.nj.us.
Please include the following in your email:
Email Subject Line: Rule Proposal Subject
Email Body: Comments to the Rule Proposal, Name, Affiliation and Contact Information (email address and telephone number)