RULES AND REGULATIONS
Title 49--PROFESSIONAL AND VOCATIONAL STANDARDS
STATE BOARD OF CERTIFIED
REAL ESTATE APPRAISERS
[49 PA. CODE CH. 36]
Continuing Education for Appraisers and Broker/Appraisers
[33 Pa.B. 2869] The State Board of Certified Real Estate Appraisers (Board) amends § 36.41 (relating to continuing education requirement) to read as set forth in Annex A.
Omission of Proposed Rulemaking
Under authority of section 204(2) and (3) of the act of July 31, 1968 (P. L. 769, No. 240) (CDL) (45 P. S. § 1204(2) and (3)), the Board has omitted the procedures for proposed rulemaking set forth in sections 201 and 202 of the CDL (45 P. S. §§ 1201 and 1202). Proposed rulemaking has been omitted because all affected certificateholders have been given actual notice of the Board's intention to adopt the amendments in advance of final rulemaking and public comment is unnecessary in that the amendments implement mandatory Federal and State continuing education requirements and make editorial changes.
Description of Final-Omitted Rulemaking
Section 36.41 currently requires certified general appraisers and certified residential appraisers to complete 28 classroom hours of continuing education during each biennial renewal period as a condition of renewal of certification for the next biennial renewal period. (A new biennial renewal period begins July 1 of every odd-numbered year.) The 28 hours shall include at least 4 hours on the Uniform Standards of Professional Appraisal Practice (USPAP) and at least 2 hours on the Real Estate Appraisers Certification Act (REACA) (63 P. S. §§ 457.1--457.19) and the regulations and policies of the Board. General appraisers and residential appraisers who receive initial certification after January 1 of a biennial renewal year are exempt from having to complete continuing education as a condition of renewal of certification in that biennial renewal year.
The final-omitted rulemaking makes the continuing education requirement applicable to certified broker/appraisers effective with renewal of certification for the 2003-2005 biennial renewal period (July 1, 2003--June 30, 2005); allows broker/appraisers credit for continuing education hours earned between January 1, 2001, and June 30, 2001, toward their initial continuing education requirement; and replaces the 4-hour USPAP requirement with the 7-hour National USPAP Update Course, or its equivalent, for all certificateholders effective with renewal of certification for the 2005-2007 biennial renewal period (July 1, 2005--June 30, 2007). The final-omitted rulemaking also makes editorial changes.
Reason for Amendments and Notice to Certificateholders
Enacted in 1990, the REACA initially established the certification classes of general appraiser and residential appraiser. Under section 10(b) of the REACA (63 P. S. § 457.10(b)), the Board is required to impose a continuing education requirement upon general appraisers and residential appraisers for biennial renewal of certification to the extent required under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) (Pub. L. No. 101-73, 103 Stat. 103). The Appraisal Qualifications Board (AQB) of the Appraisal Foundation is charged with establishing education and experience requirements for appraisers under the FIRREA. Section 36.41, which was initially adopted in July 1992 and revised in March 1999, is intended to implement the continuing education requirement under the FIRREA.
In 1996, the REACA was amended to establish the special certification class of broker/appraiser which was closed to new applicants after September 3, 1998. The act of December 20, 2000 (P. L. 733, No. 103) (Act 103) amended the REACA to provide that broker/appraisers must meet the same continuing education requirement for biennial renewal of certification as general appraisers and residential appraisers. The Board was empowered to promulgate implementing regulations.
Immediately following the enactment of Act 103, many broker/appraisers enrolled in continuing education courses in the mistaken belief that Act 103 would be interpreted as requiring them to complete 28 hours of continuing education as a condition of renewal of certification for the 2001-2003 biennial renewal period (July 1, 2001--June 30, 2003).
In April 2001, as part of its mailing of biennial renewal applications to current certificateholders, the Board included a copy of Act 103 and the current continuing education requirement with each broker/appraiser's renewal application. The Board's notice advised broker/appraisers that a regulation would be promulgated requiring them to complete 28 hours of continuing education (including 4 hours on the USPAP and 2 hours on the REACA and the Board's regulations and policies) between January 1, 2001, and June 30, 2003, as a condition of renewal of certification for the 2003-2005 biennial renewal period. The Board's notice also advised broker/appraisers that they were not required to complete continuing education as a condition of renewal of certification for the 2001-2003 biennial renewal period.
In October 2001, the AQB issued a new interpretation of a continuing education rule, adopted in October 2000, that requires general appraisers and residential appraisers to complete a 7-hour National USPAP Update Course, or an equivalent course approved by the AQB, every 2 years, beginning January 1, 2003. Under the new interpretation, implementation of the 7-hour USPAP requirement may occur during a biennial continuing education cycle that begins after January 1, 2003, as long as the required hours have been taken by December 31, 2005.
In its Fall 2002 newsletter, which was sent to all current certificateholders, the Board gave notice that, consistent with AQB standards, a regulation would be promulgated substituting a 7-hour USPAP requirement for the current 4-hour USPAP requirement as a condition of renewal of certification for the 2005-2007 biennial renewal period. The Board also reminded broker/appraisers of their obligation to complete 28 hours of continuing education (including 4 hours on the USPAP, 2 hours on the REACA and the Board's regulations and policies) before the start of the 2003-2005 biennial renewal period on July 1, 2003. The Board further reminded broker/appraisers that the Board would accept continuing education hours completed between January 1, 2001, and June 30, 2001, toward the continuing education requirement for the 2003-2005 biennial renewal period.
Following the processing of renewal applications for the 2003-2005 biennial renewal period, the Board intends to send an additional notice to all current certificateholders reminding them of their obligation to complete the 7-hour National USPAP Update Course, or an equivalent course approved by the AQB, before the start of the 2005-2007 biennial renewal period on July 1, 2005. The Board will furnish its education providers with information about offering the 7-hour National USPAP Course as well as the AQB's equivalency criteria for approval of an equivalent 7-hour USPAP course.
Effective Date
The final-omitted rulemaking will become effective upon publication in the Pennsylvania Bulletin. The 28-hour continuing education requirement for broker/appraisers will initially apply to renewal of certification for the 2003-2005 biennial renewal period. The 7-hour National USPAP Update Course for all certificateholders will initially apply to renewal of certification for the 2005-2007 biennial renewal period.
Statutory Authority
Section 10(b) and (b.1) of the REACA (63 P. S. § 457.10(b) and (b.1)) authorizes the Board to promulgate regulations relating to continuing education for general appraisers, residential appraisers and broker/appraisers.
Fiscal Impact and Paperwork Requirements
The final-omitted rulemaking will cause broker/appraisers to incur costs in meeting the 28-hour continuing education requirement. The costs cannot be quantified because of the large number and types of continuing education courses available; however, the costs are not believed to be substantial or burdensome. It may be possible for broker/appraisers to count towards the new continuing education requirement certain courses used to satisfy the 14-hour continuing education requirement for biennial renewal of their real estate broker's licenses under the Real Estate Licensing and Registration Act (63 P. S. §§ 455.101--455.902).
The final-omitted rulemaking will cause the Board to incur unspecified costs relating to auditing compliance with the continuing education requirement. The Board anticipates that new biennial renewal fees that will be charged to all certificateholders beginning with the 2003-2005 biennial renewal period will defray these costs. Proposed rulemaking relating to the new biennial renewal fees was published at 32 Pa.B. 4871 (October 5, 2002) and the final-form rulemaking was submitted in April 2003.
The final-omitted rulemaking will require broker/appraisers to maintain records of their compliance with the continuing education requirement. The final-omitted rulemaking also will require the Board to revise its biennial renewal applications. The final-omitted rulemaking will not impose new paperwork requirements on the Commonwealth's other agencies or its political subdivisions.
Regulatory Review
Under section 5.1(c) of the Regulatory Review Act (71 P. S. § 745.5a(c)), on April 21, 2003, the Board submitted copies of the final-omitted rulemaking for review and comment to the Independent Regulatory Review Commission (IRRC), the Senate Consumer Protection and Professional Licensure Committee and the House Professional Licensure Committee. On the same date, the Board submitted a copy of the final-omitted rulemaking for review and comment to the Office of Attorney General under the Commonwealth Attorneys Act (71 P. S. §§ 732-101--732-506).
Under section 5.1(e) and (j.2) of the Regulatory Review Act, the final-omitted rulemaking was approved by the House Committee on May 6, 2003, and deemed approved by the Senate Committee on May 28, 2003. Under section 5.1(e) of the Regulatory Review Act, the final-omitted rulemaking was approved by IRRC on May 29, 2003.
Additional Information
For additional information about the final-omitted rulemaking, submit inquiries to Michelle T. DeMerice, Administrator, State Board of Certified Real Estate Appraisers, P. O. Box 2649, Harrisburg, PA 17105-2649, (717) 783-4866, appraise@pados.dos.state.pa.us.
Findings
The Board finds that:
(1) Public notice of the Board's intention to amend the regulation adopted by this order under procedures in sections 201 and 202 of the CDL has been omitted under section 204(2) and (3) of the CDL because all persons affected by the amendment adopted by this order have been given actual notice in advance of final rulemaking of the Board's intention to amend the regulation and public comment is unnecessary because the amendments adopted by this order implement mandatory Federal and State continuing education requirements and make editorial changes.
(2) The amendment of the Board's regulation in the manner provided in this order is necessary and appropriate for the administration of the REACA.
Order
The Board, acting under the REACA, orders that:
(a) The regulations of the Board, 49 Pa. Code Chapter 36, are amended by amending § 36.41 to read as set forth in Annex A.
(b) The Board shall submit this order and Annex A to the Office of General Counsel and the Office of Attorney General for approval as to legality as required by law.
(c) The Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect upon publication in the Pennsylvania Bulletin.
GEORGE D. SINCLAIR,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 33 Pa.B. 2831 (June 14, 2003).)
Fiscal Note: 16A-7012. No fiscal impact; (8) 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 A. GENERAL PROVISIONS
CONTINUING EDUCATION § 36.41. Continuing education requirement.
(a) Continuing education for certified general appraisers, residential appraisers and broker/appraisers is necessary to ensure that they maintain and increase their skill, knowledge and competency in real estate appraising. Except as provided in subsection (b), every certified general appraiser, residential appraiser and broker/appraiser shall complete 28 classroom hours of continuing education--including at least 4 hours on the Uniform Standards of Professional Appraisal Practice (USPAP) and at least 2 hours on the act, this chapter and the policies of the Board--during each biennial renewal period as a condition of renewal of certification for the next biennial renewal period. Effective with renewal of certification for the 2005-2007 biennial renewal period, the 7-hour National USPAP Update Course, or an equivalent 7-hour course approved by the Appraiser Qualifications Board, will replace the minimum 4-hour requirement on the USPAP.
(b) A certified general appraiser or residential appraiser whose initial certification becomes effective between January 1 and June 30 of a biennial renewal year will not be required to furnish proof of continuing education as a condition of renewal of certification in that biennial renewal year.
(c) The Board will accept continuing education hours completed by a certified broker/appraiser between January 1, 2001, and June 30, 2001, toward the continuing education requirement for renewal of certification for the 2003-2005 biennial renewal period.
[Pa.B. Doc. No. 03-1175. Filed for public inspection June 20, 2003, 9:00 a.m.]
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