PROPOSED RULEMAKING
STATE BOARD OF CERTIFIED REAL ESTATE APPRAISERS
[49 PA. CODE CH. 36]
General Provisions/Standards of Professional Conduct
[26 Pa.B. 489] The State Board of Certified Real Estate Appraisers (Board) proposes to amend Chapter 36, Subchapter C (relating to certified Pennsylvania evaluators) as set forth in Annex A. The purpose of the proposed amendments is to prescribe standards of professional conduct for certified Pennsylvania evaluators practicinig in this Commonwealth. The proposed standards of conduct are modeled after the Code of Ethics and Standards of Professional Conduct of the International Association of Assessing Offices, and are intended to guide certified Pennsylvania evaluators in their relations with assessment offices, public officials and the general public.
Following is a description of the proposed amendments:
§ 36.201. Definitions.
Definitions are proposed to be added to § 36.201 to define the terms ''act,'' ''business with which a certified Pennsylvania evaluator is associated,'' ''conflict of interest'' and ''immediate family.'' Within the context of Subchapter C, the term ''act'' would mean ''The Assessors Certification Act (63 P. S. §§ 458.1--458.16).'' This term is currently defined in Subchapter A within the context of certified real estate appraisers to mean ''The Real Estate Appraisers Certification Act (63 P. S. §§ 457.1--457.19).'' Since certified Pennsylvania evaluators are not governed by the Real Estate Appraisers Certification Act, it is important that the term ''act'' be defined in Subchapter C to refer to the act which governs certified Pennsylvania evaluators.
The phrase ''conflict of interest'' appears in Standards 7 and 9 (Limitations on activities; and Advertising). Within the context of these standards, this phrase would be defined to mean ''a situation in which a certified Pennsylvania evaluator uses the certified Pennsylvania evaluator's employment or any confidential information received through the course of the employment for the private pecuniary benefit of the certified Pennsylvania evaluator, a member of the certified Pennsylvania evaluator's immediate family or a business with which the certified Pennsylvania evaluator or a member of the certified Pennsylvania evaluator's immediate family is associated.''
The phrase, ''business with which a certified Pennsylvania evaluator is associated'' is proposed to mean ''any business in which the certified Pennsylvania evaluator or a member of the certified Pennsylvania evaluator's immediate family is a director, officer, owner, employe or has a financial interest.''
Finally, the term ''immediate family'' within the context of these definitions would mean ''A parent, spouse, child, brother or sister.''
§ 36.281. Standards of Professional Conduct.
Proposed § 36.281 announces the standards of professional conduct to which certified Pennsylvania evaluators are expected to conform. As proposed, the Preamble to the standards of professional conduct would explain that some of the standards of professional conduct are imperatives, cast in the terms ''shall'' or ''may not.'' Certified Pennsylvania evaluators are advised that those who fail to adhere to these standards will be subject to disciplinary action under section 7(a)(6) of the act (63 P. S. § 458.7(a)(6)). By contrast, other standards, cast in the terms ''may'' or ''should'' are intended as aspirational goals and, therefore, announce areas under which the certified Pennsylvania evaluator has professional discretion. No disciplinary action will be taken when a certified Pennsylvania evaluator acts within the bounds of discretionary standards.
The proposed standards of professional conduct would consist of ten standards. Standard 1 (Duties) would require certified Pennsylvania evaluators to perform their respective duties in accordance with general or specific county assessment laws and generally accepted assessment standards. Certified Pennsylvania evaluators would also be encouraged to perform all assessment and appraisal related assignments to the best of their ability with the ultimate goal of adhering to the Uniform Standards of Professional Appraisal Practice as promulgated and adopted by the Appraisal Standards Board of the Appraisal Foundation.
Standard 2 (Availability of information and records) would require certified Pennsylvania evaluators to make available for public review all records in their custody unless the records are deemed confidential by the county or the property owner or are prohibited or otherwise protected from disclosure by law.
Standards 3 and 4 (Relationship with the public; and Relationship with public officials), respectively, would announce standards to which certified Pennsylvania evaluators should aspire when dealing with the public and public officials.
Proposed Standard 5 (Conduct). Under this standard, certified Pennsylvania evaluators would be expected to conduct their duties in a forthright manner which avoids the appearance of impropriety. Certified Pennsylvania evaluators would also be expected to inform the public of appropriate procedures under the law and local administrative regulations.
Proposed Standard 6 (Professional qualifications) would encourage certified Pennsylvania evaluators to increase their knowledge and enhance their professional skills beyond the minimum continuing education requirements announced in § 36.261 (relating to continuing education). Standard 6 also proposes to advise certified Pennsylvania evaluators of the prohibition against claiming qualifications or using professional designations that are false or misleading.
Standards 7 and 8 (Limitations on activities; and Contingent fees), respectively, announce mandatory rules of conduct. Standard 7 would prohibit a certified Pennsylvania evaluator from performing an appraisal or assessment assignment if the assignment could reasonably create a conflict of interest with the certified Pennsylvania evaluator's client or employer. Standard 7 also announces disclosure requirements for certified Pennsylvania evaluators who are not properly qualified to perform an assignment. As proposed, Standard 8 would prohibit a certified Pennsylvania evaluator from performing an appraisal or assessment assignment when the employment is contingent upon the reporting of a predetermined analysis or opinion, or where the fee to be paid is contingent upon the opinion, conclusion or value reached, or upon the consequences resulting from the appraisal or assessment assignment.
Proposed Standard 9 addresses the issue of advertising. As proposed, advertising is permissible as long as it is not false, deceptive or misleading and as long as the advertisement does not solicit assignments which would create the appearance of a conflict of interest. Finally, proposed Standard 10 (Unethical practices notification) would encourage certified Pennsylvania evaluators to report unethical or other similar actions which reflect discredit upon the appraisal or assessment profession to the Complaints Office of the Bureau of Professional and Occupational Affairs.
Statutory Authority
This proposal is made under the authority of sections 3 and 7(a)(6) of the act (63 P. S. §§ 458.3 and 7(a)(6)). Section 3 of the act empowers the Board to promulgate rules and regulations consistent with the statutes of the Commonwealth to administer and enforce the provisions of the act. Section 7(a)(6) of the act empowers the Board to impose disciplinary and corrective measures against a certificateholder who violates any of the standards of professional conduct for real property assessment as adopted by the Board by regulation.
Fiscal Impact and Paperwork Requirements
The proposed amendments will have no fiscal impact and will require no additional paperwork by the Commonwealth, its political subdivisions or the private sector.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Board submitted a copy of these proposed amendments on January 19, 1996, to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Committee on Professional Licensure and the Senate Committee on Consumer Protection and Professional Licensure. In addition to submitting the proposed amendments, the Board has provided IRRC and will provide the Committees with a detailed regulatory analysis form prepared by the Board in compliance with Executive Order 1982-2, ''Improving Government Regulations.'' A copy of this material is available to the public upon request.
If IRRC has any objections to any portion of the proposed amendments, it will notify the agency within 30 days from the close of the public comment period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for the Agency, the Governor and the General Assembly to review these objections before final publication of the regulations.
Public Comment
Interested persons are invited to submit written comments, suggestions or objections regarding the proposed amendments to Jackie Wiest Lutz, Counsel, State Board of Certified Real Estate Appraisers, 116 Pine Street, P. O. Box 2649, Harrisburg, PA 17105-2649, within 30 days of publication of this proposed rulemaking.
(Editor's Note: A proposal to amend § 36.201 (relating to definitions), which is proposed to be amended in this document, remains outstanding at 25 Pa.B. 5613 (December 9, 1995).)
DAVID J. KING,
ChairpersonFiscal Note: 16A-704. No fiscal impact; recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND
VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND
OCCUPATIONAL AFFAIRS
CHAPTER 36. STATE BOARD OF CERTIFIED REAL ESTATE APPRAISERS
Subchapter C. CERTIFIED PENNSYLVANIA EVALUATORS
GENERAL PROVISIONS § 36.201. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Act--The Assessors Certification Act (63 P. S. §§ 458.1--458.16).
* * * * * Business with which a certified Pennsylvania evaluator is associated--A business in which the certified Pennsylvania evaluator or a member of the certified Pennsylvania evaluator's immediate family is a director, officer, owner, employe or has a financial interest.
* * * * * Conflict of interest--A situation in which a certified Pennsylvania evaluator uses the certified Pennsylvania evaluator's employment or confidential information received through the course of the employment for the private pecuniary benefit of the certified Pennsylvania evaluator, a member of the certified Pennsylvania evaluator's immediate family or a business with which the certified Pennsylvania evaluator or a member of the certified Pennsylvania evaluator's immediate family is associated.
Immediate family--A parent, spouse, child, brother or sister.
* * * * *
STANDARDS OF PROFESSIONAL CONDUCT § 36.281. Standards of Professional Conduct.
Preamble
Certified Pennsylvania evaluators shall comply with the act and this subchapter and conform to the standards of professional conduct in this section. Some of the standards of professional conduct are imperatives, cast in the terms, ''shall'' or ''may not.'' Certified Pennsylvania evaluators who fail to adhere to these standards will be subject to professional discipline under section 7(a)(6) of the act (63 P. S. § 458.7(a)(6)). Other standards, generally cast in the terms ''may'' or ''should,'' are intended as aspirational goals and define areas under which the certified Pennsylvania evaluator has professional discretion. Disciplinary action will not be taken when a certified Pennsylvania evaluator acts within the bounds of discretionary standards.
Standard 1. Duties.
Certified Pennsylvania evaluators shall perform their respective duties in accordance with general or specific county assessment laws and generally accepted assessment standards. Certified Pennsylvania evaluators should perform all assessments and appraisal related assignments to the best of their ability and with the ultimate goal of adhering to the standards announced in the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated and adopted by the Appraisal Standards Board (ASB) of the Appraisal Foundation. The USPAP will be amended by the ASB and published annually in separate yearly bound editions. A copy of the USPAP may be obtained from the Appraisal Foundation, 1029 Vermont Avenue, N. W., Suite 900, Washington, D. C. 20005, (202) 347-7722.
Standard 2. Availability of information and records.
Certified Pennsylvania evaluators shall make available for public review the records in their custody unless the records are deemed confidential by the county or the property owner or are prohibited or otherwise protected from disclosure by law.
Standard 3. Relationship with the public.
In dealing with the public, certified Pennsylvania evaluators should act in a courteous, candid and respectful way. Certified Pennsylvania evaluators who hold supervisory positions should require this same level of professionalism from staff personnel under their jurisdiction.
Standard 4. Relationship with public officials.
Certified Pennsylvania evaluators should cooperate with public officials to improve the effectiveness of real estate tax procedures and to coordinate with other administrative functions of government.
Standard 5. Conduct.
Certified Pennsylvania evaluators should conduct their duties in a forthright manner which avoids the appearance of impropriety. Certified Pennsylvania evaluators should make every effort to inform the public of appropriate procedures under the law and local administrative regulations.
Standard 6. Professional qualifications.
Certified Pennsylvania evaluators should strive to increase their knowledge and enhance their professional skills beyond the minimum mandatory continuing education requirements announced in § 36.261 (relating to continuing education). Certified Pennsylvania evaluators shall use a professional designation only when they are properly authorized to do so. Certified Pennsylvania evaluators may not claim qualifications that are false or misleading.
Standard 7. Limitations on activities.
Certified Pennsylvania evaluators who are licensed to perform appraisals under the Real Estate Licensing and Registration Act (63 P. S. §§ 455.101--455.902) may not perform appraisal or assessment related assignments that could reasonably be construed as creating a conflict of interest with their respective client or employer. Certified Pennsylvania evaluators who are not properly qualified to perform an assignment shall do the following:
(1) Disclose the lack of knowledge or experience, or both, to their respective employer before performing the assignment.
(2) Take the steps necessary or appropriate to complete the assignment competently.
(3) Describe the lack of knowledge or experience, or both, and the steps taken to complete the assignment competently in the report.
Standard 8. Contingent fees.
Certified Pennsylvania evaluators may not perform an appraisal or assessment assignment when the employment itself is contingent upon the certified Pennsylvania evaluator reporting a predetermined analysis or opinion, or if the fee to be paid for the performance of the appraisal or assessment assignment is contingent upon the opinion, conclusion or valuation reached, or upon the consequences resulting from the appraisal or assessment assignment.
Standard 9. Advertising.
Advertising by certified Pennsylvania evaluators is permissible when it does not include false, deceptive or misleading statements or claims. False, deceptive or misleading advertising is prohibited. Certified Pennsylvania evaluators who are employes of a governmental agency should not solicit any type of assessment assignments which could create the appearance of a conflict of interest.
Standard 10. Unethical practices notification.
Certified Pennsylvania evaluators should report unethical practices or other similar actions which reflect discredit upon the appraisal or assessment profession to the Complaints Office of the Bureau of Professional and Occupational Affairs by telephoning the Complaint's Office at (800) 822-2113 or by submitting a written complaint to the Complaint's Officer of the Bureau of Professional and Occupational Affairs, Post Office Box 2649, Harrisburg, Pennsylvania 17105-2649.
[Pa.B. Doc. No. 96-140. Filed for public inspection February 2, 1996, 9:00 a.m.]
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