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VOLUME 46, ISSUE 20
ISSUE DATE: October 20, 2014
RULE PROPOSALS

LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
State Board of Real Estate Appraisers


Proposed Readoption with Amendments: N.J.A.C. 13:40A

Proposed New Rules and Repeals: N.J.A.C. 13:40A-7.6, 7.7, and 8.1

Proposed New Rules: N.J.A.C. 13:40A-2.6, 2A.6, 3.5, and 7.8

State Board of Real Estate Appraisers Rules
 
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 2014-172.
 
Submit comments by December 19, 2014, to:
 
   Charles Kirk, Executive Director
   State Board of Real Estate Appraisers
   PO Box 45032
   Newark, NJ 07101
   or electronically at: www.NJConsumerAffairs.gov/proposal/comment/.
 
The agency proposal follows:
 
Summary

The Board of Real Estate Appraisers (Board) is proposing to readopt N.J.A.C. 13:40A with amendments, repeals, and new rules. This chapter is scheduled to expire on October 3, 2014, pursuant to Executive Order No. 66 (1978) and N.J.S.A. 52:14B-5.1.b. Because this notice of readoption has been filed with the Office of Administrative Law prior to October 3, 2014, the expiration date of Chapter 40A is extended by 180 days, to April 1, 2015, pursuant to N.J.S.A. 52:14B-5.1.c(2).

[page=2087] In compliance with the Executive Order, the Board undertook a thorough review of the existing provisions of N.J.A.C. 13:40A in order to delete any unnecessary or unreasonable rules and to clarify existing provisions. The Board believes that the rules proposed for readoption, as revised are necessary, reasonable, understandable, and responsive to the purposes for which they were promulgated.

Several amendments are proposed in order to comply with recommendations made to the Board by the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, (FIRREA) entitled the "Real Estate Appraisal Reform Amendments," established the ASC. 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.

The Board proposes to readopt without change Subchapter 1, which sets forth the purpose and scope, definitions, and the scope of practice for licensed and certified real estate appraisers.

Subchapters 2, 2A, and 3 set forth the rules for certification as a general real estate appraiser, certification as a residential real estate appraiser, and licensure of residential real estate appraisers, respectively, including eligibility requirements for certification or licensure, qualifications to sit for the examination, education requirements, experience requirements, and temporary visiting certifications or licenses. The Board proposes to readopt without change N.J.A.C. 13:40A-2.1 through 2.5, 2A.1 through 2A.4, and 3.1 through 3.4.

N.J.A.C. 13:40A-2A.5 and 3.6 set forth the rules for obtaining a temporary visiting certificate for a certified residential real estate appraiser and a temporary visiting license for a licensed residential real estate appraiser, respectively. To comply with recommendations by the ASC, the Board is proposing to amend N.J.A.C. 13:40A-2A.5(b) and 3.6(b) to remove the limit on the number of specific properties that may be appraised under a temporary certificate or license in a calendar year.

The Board is proposing to add new N.J.A.C. 13:40A-2.6, 2A.6, and 3.5 to implement P.L. 2013, c. 49, which mandates that a professional board designated in section 2 of P.L. 1978, c. 73 (N.J.S.A. 45:1-15) that issues a professional license or certificate for which professional training, education, or experience is required, give a veteran credit towards its requirements for certification or licensure for any portion of the training, education, and experience received while serving as a member of the Armed Forces of the United States (Armed Forces) that is substantially equivalent to the training, education, or experience required for certification or licensure.

Proposed new N.J.A.C. 13:40A-2.6(a), 2A.6(a), and 3.5(a) would permit an applicant for a real estate appraiser certification or license who has been honorably discharged from the Armed Forces and who does not meet all of the training, education, and experience requirements for certification or licensure under N.J.A.C. 13:40A-2, 2A, or 3, respectively, to apply to the Board for recognition of the applicant's training, education, and experience received while serving as a member of the Armed Forces as being substantially equivalent to the training, education, and experience required for certification or licensure.

Proposed new N.J.A.C. 13:40A-2.6(b), 2A.6(b), and 3.5(b) set forth the evidence that the applicant would be required to provide and the procedure to be followed to establish that the relevant education, training, and experience received while in the military is substantially equivalent in scope and character to the education, training, and experience required by the Board for certification or licensure. Proposed new N.J.A.C. 13:40A-2.6(b)2i, 2A.6(b)2i, and 3.2(b)2i would require the applicant to submit verification of his or her military experience and training to the Board for determining substantial equivalence to the experience required under N.J.A.C. 13:40A-2.4, 2A.4, and 3.4, respectively.

Proposed new N.J.A.C. 13:40A-2.6(b)2ii and iii, 2A.6(b)2ii and iii, and 3.5(b)2ii and iii set forth the procedure that an applicant must follow to have his or her military education and/or training evaluated for substantial equivalence to either education courses and/or training approved by the AQB Course Approval Program or to education courses and/or training in a degree program in real estate from an accredited degree-granting college or university whose curriculum was reviewed and approved by the AQB.

Proposed N.J.A.C. 13:40A-2.6(b)3, 2A.6(b)3, and 3.5(b)3 would require that the applicant comply with all other requirements for certification or licensure, including successful completion of the examination requirement.

Under proposed new N.J.A.C. 13:40A-2.6(c), 2A.6(c), and 3.5(c) the applicant would be responsible for providing timely and complete evidence of the education, training, and/or experience gained in the military for review and consideration. If all of the applicant's military training, education, or experience is not deemed substantially equivalent to the Board's requirements, N.J.A.C. 13:40A-2.6(d), 2A.6(d), and 3.5(d) would require the Board to credit whatever portion of the applicant's military training, education, or experience it deems to be substantially equivalent towards meeting the requirements of certification or licensure. Additionally, proposed new N.J.A.C. 13:40A-2.6(e), 2A.6(e), and 3.5(e) would provide that evidence of such education, training, or experience will be assessed on a case-by-case basis.

Subchapter 4 sets forth the rules for trainee permits. N.J.A.C. 13:40A-4.1 establishes the purpose of Subchapter 4. N.J.A.C. 13:40A-4.3 sets forth the educational requirements for trainees. N.J.A.C. 13:40A-4.4 sets forth the renewal requirements for trainee permits. N.J.A.C. 13:40A-4.5 sets forth the responsibilities of trainees. N.J.A.C. 13:40A-4.6 sets forth the responsibilities of the supervising appraiser. N.J.A.C. 13:40A-4.7 sets forth the requirements to maintain and submit a real estate appraiser trainee log, including the information that must be captured in the log. N.J.A.C. 13:40A-4.8 sets forth the continuing education requirements for individuals holding a training permit for more than two years. The Board proposes to readopt without change N.J.A.C. 13:40A-4.

Subchapter 5 sets forth the rules for continuing professional education for licensed and certified real estate appraisers. N.J.A.C. 13:40A-5.1 establishes the purpose of, and requirements for, continuing education each biennial renewal cycle. N.J.A.C. 13:40A-5.3 requires compliance with the continuing education requirements for licensed and certified real estate appraisers as established by the AQB. N.J.A.C. 13:40A-5.4 establishes State specific continuing education requirements. N.J.A.C. 13:40A-5.5 requires the Board to maintain a list of all approved continuing education courses, lectures, and programs and provides that an applicant may apply to the Board for pre-approval of course offerings. N.J.A.C. 13:40A-5.6 sets forth the acceptable course topics for continuing education. N.J.A.C. 13:40A-5.7 sets forth the acceptable sources of continuing education. N.J.A.C. 13:40A-5.8 sets forth the documentation requirements for licensees and certificate holders to evidence compliance with the continuing education requirements. N.J.A.C. 13:40A-5.9 sets forth the responsibilities of continuing education providers. N.J.A.C. 13:40A-5.10 provides that the Board may not grant an extension of time to appraisers to satisfy continuing education requirements, except that, as allowed by the AQB, a deferral for appraisers returning from active military duty. In extenuating circumstances, credential holders may apply to the Board to be placed in inactive status for up to 90 days in order to complete the continuing education requirements. The Board proposes to readopt without change N.J.A.C. 13:40A-5.1, 5.3, 5.5, 5.7, 5.8, and 5.10.

The Board proposes to delete "Uniform Standards of Professional Appraisal Practice" from the heading of N.J.A.C. 13:40A-5.4 and to add new subsection (b) to include a requirement for State-licensed and certified real estate appraisers to complete a two-hour course on State law and rules governing the practice of real estate appraising in each biennial renewal cycle. The Board believes that licensees and certificate holders must stay current on the legal and regulatory developments within the State affecting the practice of real estate appraising. The Board proposes to amend N.J.A.C. 13:40A-5.6(a) to include reference to this new course.

The Board proposes to amend N.J.A.C. 13:40A-5.9 to delete the requirement that providers must supply the Board with a roster of attendees within 30 days of conclusion of each course or seminar and replace it with a requirement that providers keep accurate records of [page=2088] attendance for verification purposes for a four-year period, consistent with the document retention requirements for licensees and certificate holders. The Board also proposes to delete the requirement for all continuing education courses to be taught in public facilities. The Board does not believe this requirement is still necessary and recognizes that continuing education courses may be offered in-person or online.

Subchapter 6 sets forth the standards for conducting appraisals. N.J.A.C. 13:40A-6.1 requires that, at a minimum, all appraisals must conform to the Uniform Standards of Professional Appraisal Practice (USPAP) in effect on the date the appraisal was prepared. The Board proposes readopting without change N.J.A.C. 13:40A-6.1.

Subchapter 7 sets forth general provisions applicable to all real estate appraisers. N.J.A.C. 13:40A-7.1 sets forth the fee schedule. N.J.A.C. 13:40A-7.2 provides that an appraiser must include his or her designation and state license or certification number on all appraisal reports. N.J.A.C. 13:40A-7.3 sets forth the proper use of designations and abbreviations. N.J.A.C. 13:40A-7.4 provides the criteria for qualifying education instructors and USPAP instructors. N.J.A.C. 13:40A-7.5 defines and prohibits mixed practices, which the Board deems a conflict of interest. The Board proposes readopting without change N.J.A.C. 13:40A-7.1 through 7.5.

P.L. 2013, c. 182, which became effective on July 1, 2014, modifies the reinstatement and reactivation requirements for professional or occupational licensees, registrants, and certificate holders. To implement P.L. 2013, c. 182, the Board proposes to repeal existing N.J.A.C. 13:40A-7.6 and 7.7 and proposes new N.J.A.C. 13:40A-7.6, 7.7, and 7.8. The proposed new sections reorganize the rules to distinguish between renewal, reactivation of an inactive license, and reinstatement of a suspended license due to the licensee's failure to renew before the date of licensure expiration (administrative suspension).

Proposed new N.J.A.C. 13:40A-7.6 sets forth the requirements for licensure and certification renewal including, in accordance with P.L. 2013, c. 182, and adds the requirement that the notice of renewal inform licensees and certificate holders explains that applicants have the option to renew as inactive.

Proposed new N.J.A.C. 13:40A-7.7 sets forth the procedure and requirements for reactivating an inactive license or certification. The current rule requires an applicant to submit an application and satisfactory proof that the applicant has maintained proficiency by completing the continuing education hours required for renewal. The proposed amended rule sets forth the procedure for reactivation of an inactive license or certificate in much greater detail. Proposed subsection (a) lists the documentation and fees that a licensee or certificate holder who has placed his or her license or certificate on inactive status must provide to the Board when applying for reactivation. Proposed subsection (b) sets forth the criteria that the Board must consider when reviewing an application to determine practice deficiencies, and grants the Board discretion to require any applicant found to have practice deficiencies to successfully complete an examination; additional education, training, or supervision; or other requirements as a condition of reactivation. Proposed new N.J.A.C. 13:40A-7.8 relates to reinstatement of a license or certification that has been administratively suspended. The proposed rule sets forth in greater detail than the current rule the procedure that an applicant must follow to reinstate an administratively suspended license or certificate. Proposed subsection (a) lists the documentation that a licensee or certificate holder whose license or certificate has been administratively suspended must provide to the Board in order to apply for reinstatement. Proposed subsection (b) sets forth the criteria that the Board must consider when reviewing an application to determine practice deficiencies, and grants the Board discretion to require any applicant found to have practice deficiencies to successfully complete an examination, additional education, training, supervision, or other requirements as a condition of reinstatement.

Recodified N.J.A.C. 13:40A-7.9 establishes the Board's authority to deny or revoke a license or certification if the applicant and/or holder of a license or certification has a criminal history record of conviction for certain crimes and offenses. Recodified N.J.A.C. 13:40A-7.10 sets forth procedures for return of licenses or certificates for suspended, revoked, or voluntarily surrendered licenses and provides that any licensee or certificate holder who is under active disciplinary suspension must not engage in the practice of real estate appraising. The Board proposes to readopt without change recodified N.J.A.C. 13:40A-7.9 and 7.10.

The Board proposes to amend recodified N.J.A.C. 13:40A-7.11, which requires all licensees and certificate holders to notify the Board of any change of address of record within 10 days, to permit the use of a post office box as an address of record, as long as the licensee or certificate holder also provides a street address. This change codifies the current practice of the Board and Division of Consumer Affairs.

Subchapter 8 provides for certification or licensure by endorsement. The Board proposes to repeal this subchapter and replace it with new Subchapter 8 regarding interstate reciprocity. New Subchapter 8, implementing P.L. 2013, c. 182, establishes requirements for the professional or occupational licensing boards to grant certification or licensure by reciprocity. Proposed N.J.A.C. 13:40A-8.1(b) requires the designation of a State agent for service of process, if the applicant is not a State resident and does not have an office in this State. In addition, subsection (c) defines "good standing" and subsection (d) sets forth the standards of a "substantially equivalent" examination. Subsection (e) provides that the Board may revoke a license or certification if it was issued on the basis of a corresponding license or certification from another state which was obtained by fraud, deception, or misrepresentation.

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.
 
Social Impact

The rules proposed for readoption with amendments, repeals, and new rules will continue to have a positive social impact. The Board believes that the existing rules, which have been in effect for at least the past seven years, have protected the welfare of the citizens of New Jersey by identifying those individuals who are qualified and legally authorized to engage in the practice of real estate appraising. The rules positively affect the regulated community by setting forth requirements and procedures for the practice of real estate appraising for all trainees, licensed or certified real estate appraisers, and applicants for certification or licensure. The readoption of N.J.A.C. 13:40A is essential in order for the Board to continue to regulate the practice of real estate appraising and to ensure that every trainee, licensee, and certificate holder is aware of the procedures connected with licensure and certification. The readoption of the existing rules will continue to maintain the established standards and provide the public the continued protection and confidence in the real estate appraising field. The rules proposed for readoption, with repeals and new rules, will continue to apply to all persons applying for licensure as licensed residential real estate appraisers, certification as certified residential real estate appraisers, or as certified general real estate appraisers, and to persons licensed or certified by the Board of Real Estate Appraisers in the State of New Jersey.

The Board has determined that proposed new rules N.J.A.C. 13:40A-7.6, 7.7, and 7.8 will make it easier for licensed and certified real estate appraisers to resume engaging in the practice of real estate appraising within the State after holding an inactive license or after a period of administrative suspension.

The Board has determined that the proposed new rules N.J.A.C. 13:40A-2.6, 2A.6, and 3.5, implementing P.L. 2013, c. 49, would help New Jersey veterans transition from military to civilian life. New Jersey veterans who have received relevant training, education, and experience while in the military would be able to have that training, education, and experience evaluated for substantial equivalence to Board requirements. Whatever portion of the veteran's training, education, and/or experience is found to be substantially equivalent would be credited towards the requirements for certification or licensure. Prospective employers may also benefit from the increased pool of qualified potential employees. The Board anticipates that the proposed new rules would have no adverse effect on public health, safety, or welfare.

The Board believes that the rules proposed for readoption with amendments, repeals, and new rules will have a positive impact upon the general public by continuing to safeguard the public welfare by ensuring the maintenance of appropriate practice standards, which will enable [page=2089] trainees, and licensed or certified real estate appraisers, to provide the highest quality service in the practice of real estate appraising.
 
Economic Impact

The Board anticipates that the rules proposed for readoption with amendments, repeals, and new rules will not impose any new or additional costs upon applicants for licensure or certification, licensees, certificate holders, or consumers. The rules proposed for readoption will continue the economic impact that the rules have had on such persons for the past seven years, as discussed below.

Subchapters 2, 2A, and 3 will continue to impose application and criminal history background check fees for those individuals applying for certification or licensure and for those individuals applying to the Board for a temporary visiting certificate.

Subchapter 4 will continue to impose an application fee for those individuals applying for a trainee permit.

Subchapter 5, which establishes continuing professional education, will continue to have an economic impact upon trainees who hold a permit for more than two years, licensees, and certificate holders, since these individuals will have to pay the cost of each course in order to comply with the required number of credits upon renewal. Although this will have some economic impact, the requirement of continuing education will ensure that appraisers participate in programs that maintain and increase their skill, knowledge, and competency in real estate appraising.

The Board's fees set forth at N.J.A.C. 13:40A-7.1 will continue to have an economic impact on trainees, licensees, and certificate holders, although no new or additional fees will be imposed by the Board at this time.

Subchapter 8 will continue to impose application and criminal history background check fees for those individuals applying for reciprocal licensure and/or certification.

The Board believes that any costs imposed by the rules proposed for readoption with amendments, repeals, and new rules are significantly outweighed by the consumer protection established by N.J.A.C. 13:40A.
 
Federal Standards Statement

A Federal standards analysis is not required because the rules proposed for readoption with amendments, repeals, and new rules do not exceed, and in some cases, incorporate by reference, standards and requirements set forth by the Appraiser Qualification Board of the Appraisal Foundation, which may be viewed as establishing and setting forth Federal standards and requirements.

The ASC's Policy Statement 5 precludes states from imposing additional impediments to issuance of reciprocal credentials. Therefore, in implementing P.L. 2013, c. 182, with respect to reciprocity, the Board did not impose any minimum length of practice requirement for applicants seeking licensure by reciprocity.
 
Jobs Impact

The Board does not believe that the rules proposed for readoption with amendments, repeals, and new rules will either increase or decrease the number of jobs in the State.
 
Agriculture Industry Impact

The rules proposed for readoption with amendments, repeals, and new rules will have no impact on the agriculture industry in this State.
 
Regulatory Flexibility Analysis

Currently there are approximately 2,756 licensed or certified real estate appraisers. If for the purposes of the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., real estate appraisers are deemed "small businesses," then the following analysis applies.

The readopted provisions of the rules contain the same compliance, recordkeeping, and reporting requirements previously imposed by the Board on its licensees and certificate holders while the proposed amendments and new rules will impose upon licensees and certificate holders new compliance requirements, as further discussed in detail below.

Subchapters 2, 2A, 3, and 4 continue to impose compliance requirements for persons applying for initial certification and licensure as real estate appraisers, and as applicants for trainee permits. Each applicant must comply with the education and experience requirements established by the AQB. There are also compliance requirements for appraisers certified or licensed by another state who are applying for a temporary visiting certificate or licensure to provide evidence of credentials from another jurisdiction. Additional compliance requirements for trainees are set forth in N.J.A.C. 13:40A-4.4 and 4.5. A trainee must renew his or her permit every year, with a maximum total of three times. Trainees must work under the direct supervision of a supervising appraiser, who must be licensed or certified, and in good standing. In addition, the trainee must carry his or her permit when performing appraisal assignments. If the supervising appraiser can no longer provide direct supervision to a trainee, the trainee must return the permit within 30 days to the Board. N.J.A.C. 13:40A-4.6 establishes the responsibilities of a supervising appraiser. A supervising appraiser must acknowledge in writing to the Board that he or she agrees to perform all responsibilities, such as directly supervising the trainee, must sign and put his or her license or certification number on the trainee log at least once a month, and provide the trainee with a copy of any final appraisal report in which the trainee's work product has been utilized or in which the trainee made a professional contribution. A supervising appraiser is also required to complete a course established by the AQB that outlines the requirements and responsibilities of supervising appraisers. N.J.A.C. 13:40A-4.5 and 4.6 provide that trainees and supervising appraisers share the responsibility to make sure that the appraiser trainee log is accurate and current, and complies with the requirements of N.J.A.C. 13:40A-4.7.

All certified and licensed appraisers and trainees holding a trainee permit for more than two years must continue to complete the continuing education requirements as established by the AQB and as set forth in Subchapter 5. N.J.A.C. 13:40A-5.4 requires all real estate appraisers to attend a minimum seven-hour course on USPAP every two years. Proposed amendments to N.J.A.C. 13:40A-5.4 require all real estate appraisers to also complete a two-hour course on State law and rules regarding the practice of real estate appraising. N.J.A.C. 13:40A-5.9 continues to impose compliance requirements upon continuing education providers. Each provider must submit information on forms provided by the Board for each course for which an approval is sought.

Subchapter 6 and N.J.A.C. 13:40A-4.5 require all appraisers and holders of a trainee permit to comply with the provisions of USPAP. Subchapter 7, which establishes the general provisions for all appraisers, imposes compliance requirements. N.J.A.C. 13:40A-7.2 requires all appraisers to disclose their title and license or certificate number on all appraisal reports. Applicants seeking approval to give qualifying education courses must meet the education or experience requirements set forth in N.J.A.C. 13:40A-7.4 and reapply for approval every two years. These requirements do not apply to those who teach at colleges, universities, community colleges, or junior colleges accredited by the Commission on Higher Education or any real estate appraisal or real estate related organizations that are members of the Appraisal Foundation.

N.J.A.C. 13:40A-7.6 sets forth compliance requirements for appraisers renewing their licenses and certifications. Proposed new N.J.A.C. 13:40A-7.7 and 7.8 establish the compliance requirements for licensees and certificate holders applying for reactivation and reinstatement, including compliance with all continuing education requirements. Subchapter 8 establishes the compliance requirements for certification or licensure by reciprocity, including undergoing a criminal history background check and completion of New Jersey's continuing education requirements.

Subchapter 4 also sets forth reporting requirements for supervisors and trainees. N.J.A.C. 13:40A-4.5 requires a trainee to inform the Board in the event the supervising appraiser ceases to agree to perform the responsibilities of a supervising appraiser or in the event that any individual not previously designated as a supervising appraiser agrees to supervise the work product of the trainee. N.J.A.C. 13:40A-4.6 requires a supervising appraiser to immediately notify the Board and his or her trainee, in writing, in the event that he or she ceases to perform or is unable to perform the responsibilities of a supervising appraiser. A trainee must maintain and submit upon renewal, a log, the specific requirements of which are indicated in N.J.A.C. 13:40A-4.7, and must ensure that the log is available at all times for inspection by the Board.

[page=2090] N.J.A.C. 13:40A-5.8 requires all real estate appraisers to retain, and submit to the Board upon request, the documentation of the continuing education hours that he or she completed in order to verify program attendance and completion. Proposed amendments to N.J.A.C. 13:40A-5.9 require continuing education providers to retain attendance records for four years.

No additional professional services are necessary to comply with the rules in this chapter. The costs of the reporting, recordkeeping, and compliance requirements discussed above, may be found under the Economic Impact statement. Because the rules proposed for readoption with amendments, repeals, and new rules further the welfare of the citizens of the State, the rules 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 rules proposed for readoption with amendments, repeals, and new rules will have an insignificant impact on affordable housing in New Jersey and there is an extreme unlikelihood that the rules would evoke a change in the average costs associated with housing because the rules proposed for readoption with amendments, repeals, and new rules concern standards for the practice of real estate appraising.
 
Smart Growth Development Impact Analysis

The rules proposed for readoption with amendments, repeals, and new rules will have an insignificant impact on smart growth and there is an extreme unlikelihood that the rules 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 rules proposed for readoption with amendments, repeals, and new rules concern standards for the practice of real estate appraising.
 
Full text of the rules proposed for readoption may be found in the New Jersey Administrative Code at N.J.A.C. 13:40A.
 
Full text of the rules proposed for repeal may be found in the New Jersey Administrative Code at N.J.A.C. 13:40A-7.6, 7.7, and 8.1.
 
Full text of the proposed amendments and new rules follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):
 
SUBCHAPTER 2.    CERTIFICATION OF GENERAL REAL ESTATE APPRAISERS
 
13:40A-2.6   Credit towards certification as a general real estate appraiser for education, training, and experience received while serving as a member of the Armed Forces
 
(a) An applicant who has served in the Armed Forces of the United States (Armed Forces) and who does not meet all of the training, education, and experience requirements for certification under N.J.A.C. 13:40A-2 may apply to the Board for recognition of the applicant's training, education, and/or experience received while serving as a member of the Armed Forces, which the Board shall consider, together with any training, education, and/or experience obtained outside of the Armed Forces, for determining substantial equivalence to the training, education, and experience required for certification.
 
(b) The Board shall issue a certification as a general real estate appraiser to the applicant if the applicant presents evidence to the Board that:
 
1. The applicant has been honorably discharged from active military service;
 
2. The relevant training, experience, and education the applicant received in the military, together with any training, education, and experience obtained outside of the Armed Forces, is substantially equivalent in scope and character to the training, experience, and education required for certification under N.J.A.C. 13:40A-2.
 
i. An applicant seeking credit for military training and experience shall submit to the Board the applicant's Verification of Military Experience and Training (VMET) Document, DD Form 2586 or a successor form, as amended and supplemented.
 
ii. An applicant seeking credit for education courses and/or training completed while in the military that are not approved by the AQB's Course Approval Program shall submit to the Board a Joint Services Transcript of his or her education/training for a determination that the education courses and/or training completed are substantially equivalent in level, scope, and intent to the courses and/or training approved by the AQB's Course Approval Program as required for certification under N.J.A.C. 13:40A-2.3. For the purpose of determining substantial equivalence of the applicant's military education and/or training, the Board shall consider only those education courses and/or training relevant to the practice of real estate appraising that have been evaluated by the American Council on Education for substantial equivalence to civilian postsecondary curricula.
 
iii. An applicant seeking credit for education courses and/or training completed while in the military that are not part of a degree program in real estate from an accredited degree-granting college or university whose curriculum was reviewed and approved by the AQB shall submit to the Board a Joint Services Transcript of his or her education/training for a determination that the education courses and/or training completed are substantially equivalent in level, scope, and intent to those in a degree program in real estate from an accredited degree-granting college or university whose curriculum was reviewed and approved by the AQB as required for certification under N.J.A.C. 13:40A-2.3. For the purpose of determining substantial equivalence of the applicant's military education and/or training, the Board shall consider only those education courses and/or training relevant to the practice of real estate appraising that have been evaluated by the American Council on Education for substantial equivalence to civilian postsecondary curricula; and
 
3. The applicant complies with all other requirements for certification, including successful completion of the examination as set forth in N.J.A.C. 13:40A-2.1.
 
(c) It is the applicant's responsibility to provide timely and complete evidence of the education, training, and/or experience gained in the military for review and consideration.
 
(d) If the applicant's military training, education, and/or experience, or a portion thereof, is not deemed to be substantially equivalent to that required for certification, the Board shall credit whatever portion of the military training, education, and/or experience that is substantially equivalent towards meeting the requirements under N.J.A.C. 13:40A-2.4 for the issuance of the certification as a general real estate appraiser.
 
(e) Satisfactory evidence of such education, training, and/or experience shall be assessed on a case-by-case basis.
 
SUBCHAPTER 2A.    CERTIFICATION OF RESIDENTIAL REAL ESTATE APPRAISERS
 
13:40A-2A.5   Temporary visiting certificate; certified residential real estate appraiser
 
(a) (No change.)
 
(b) An appraiser certified by another jurisdiction may apply for no more than three temporary certificates[, with a limit of appraising three specific properties per temporary certificate,] within one calendar year, except that the Board may waive the limitation based on a showing of good cause by the applicant.
 
(c)-(e) (No change.)
 
13:40A-2A.6   Credit towards certification as a residential real estate appraiser for education, training, and experience received while serving as a member of the Armed Forces
 
(a) An applicant who has served in the Armed Forces of the United States (Armed Forces) and who does not meet all of the training, education, and experience requirements for certification under N.J.A.C. 13:40A-2A may apply to the Board for recognition of the applicant's training, education, and/or experience received while serving as a member of the Armed Forces, which the Board shall [page=2091] consider, together with any training, education, and/or experience obtained outside of the Armed Forces, for determining substantial equivalence to the training, education, and experience required for certification.
 
(b) The Board shall issue a certification as a residential real estate appraiser to the applicant if the applicant presents evidence to the Board that:
 
1. The applicant has been honorably discharged from active military service;
 
2. The relevant training, experience, and education the applicant received in the military, together with any training, education, and experience obtained outside of the Armed Forces, is substantially equivalent in scope and character to the training, experience, and education required for certification under N.J.A.C. 13:40A-2A.
 
i. An applicant seeking credit for military training and experience shall submit to the Board the applicant's Verification of Military Experience and Training (VMET) Document, DD Form 2586 or a successor form, as amended and supplemented.
 
ii. An applicant seeking credit for education courses and/or training completed while in the military that are not approved by the AQB's Course Approval Program shall submit to the Board a Joint Services Transcript of his or her education/training for a determination that the education courses and/or training completed are substantially equivalent in level, scope, and intent to those approved by the AQB's Course Approval Program as required for certification under N.J.A.C. 13:40A-2A.3. For the purpose of determining substantial equivalence of the applicant's military education and/or training, the Board shall consider only those education courses and/or training relevant to the practice of real estate appraising that have been evaluated by the American Council on Education for substantial equivalence to civilian postsecondary curricula.
 
iii. An applicant seeking credit for education courses and/or training completed while in the military that are not part of a degree program in real estate from an accredited degree-granting college or university whose curriculum was reviewed and approved by the AQB, shall submit to the Board a Joint Services Transcript of his or her education/training for a determination that the education courses and/or training completed are substantially equivalent in level, scope, and intent to those in a degree program in real estate from an accredited degree-granting college or university whose curriculum was reviewed and approved by the AQB as required for certification under N.J.A.C. 13:40A-2A.3. For the purpose of determining substantial equivalence of the applicant's military education and/or training, the Board shall consider only those education courses and/or training relevant to the practice of real estate appraising that have been evaluated by the American Council on Education for substantial equivalence to civilian postsecondary curricula; and
 
3. The applicant complies with all other requirements for certification, including successful completion of the examination as set forth in N.J.A.C. 13:40A-2A.1.
 
(c) It is the applicant's responsibility to provide timely and complete evidence of the education, training, and/or experience gained in the military for review and consideration.
 
(d) If the applicant's military training, education and/or experience, or a portion thereof, is not deemed to be substantially equivalent to that required for certification, the Board shall credit whatever portion of the military training, education, and/or experience that is substantially equivalent towards meeting the requirements under N.J.A.C. 13:40A-2A.4 for the issuance of the certification as a residential real estate appraiser.
 
(e) Satisfactory evidence of such education, training, and/or experience shall be assessed on a case-by-case basis.
 
SUBCHAPTER 3.    LICENSING OF RESIDENTIAL REAL ESTATE APPRAISERS
 
13:40A-3.5   [(Reserved)] Credit towards licensure as a residential real estate appraiser for education, training, and experience received while serving as a member of the Armed Forces
 
(a) An applicant who has served in the Armed Forces of the United States (Armed Forces) and who does not meet all of the training, education, and experience requirements for licensure under N.J.A.C. 13:40A-3 may apply to the Board for recognition of the applicant's training, education, and experience received while serving as a member of the Armed Forces, which the Board shall consider together with any training, education, and experience obtained outside of the Armed Forces, for determining substantial equivalence to the training, education, and experience required for licensure.
 
(b) The Board shall issue a license as a residential real estate appraiser to the applicant if the applicant presents evidence to the Board that:
 
1. The applicant has been honorably discharged from active military service;
 
2. The relevant training, experience, and education the applicant received in the military, together with any training, education, and experience obtained outside of the Armed Forces, is substantially equivalent in scope and character to the training, experience, and education required for certification under N.J.A.C. 13:40A-3.
 
i. An applicant seeking credit for military training and experience shall submit to the Board the applicant's Verification of Military Experience and Training (VMET) Document, DD Form 2586 or a successor form, as amended and supplemented.
 
ii. An applicant seeking credit for education courses and/or training completed while in the military that are not approved by the AQB's Course Approval Program shall submit to the Board a Joint Services Transcript of his or her education/training for a determination that the education courses and/or training completed are substantially equivalent in level, scope, and intent to those approved by the AQB Course Approval Program as required for certification under N.J.A.C. 13:40A-3.3. For the purpose of determining substantial equivalence of the applicant's military education and/or training, the Board shall consider only those education courses and/or training relevant to the practice of real estate appraising that have been evaluated by the American Council on Education for substantial equivalence to civilian postsecondary curricula.
 
iii. An applicant seeking credit for education courses and/or training completed while in the military that are not part of a degree program in real estate from an accredited degree-granting college or university whose curriculum was reviewed and approved by the AQB shall submit to the Board a Joint Services Transcript of his or her education/training for a determination that the education courses and/or training completed are substantially equivalent in level, scope, and intent to those in a degree program in real estate from an accredited degree-granting college or university whose curriculum was reviewed and approved by the AQB as required for licensure under N.J.A.C. 13:40A-3.3. For the purpose of determining substantial equivalence of the applicant's military education and/or training, the Board shall consider only those education courses and/or training relevant to the practice of real estate appraising that have been evaluated by the American Council on Education for substantial equivalence to civilian postsecondary curricula; and
 
3. The applicant complies with all other requirements for licensure, including successful completion of the examination as set forth in N.J.A.C. 13:40A-3.1.
 
(c) It is the applicant's responsibility to provide timely and complete evidence of the education, training, and/or experience gained in the military for review and consideration.
 
(d) If the applicant's military training, education, and/or experience, or a portion thereof, is not deemed to be substantially equivalent to that required for licensure, the Board shall credit whatever portion of the military training, education, and/or experience that is substantially equivalent towards meeting the requirements under N.J.A.C. 13:40A-3.4 for the issuance of the license as a residential real estate appraiser.
 
[page=2092] (e) Satisfactory evidence of such education, training, or/and experience shall be assessed on a case-by-case basis.
 
13:40A-3.6   Temporary visiting licenses
 
(a) (No change.)
 
(b) An appraiser licensed by another jurisdiction may apply for no more than three temporary licenses[, with a limit of appraising three specific properties per temporary license,] within one calendar year, except that the Board may waive the limitation based on a showing of good cause by the applicant.
 
(c)-(e) (No change.)
 
SUBCHAPTER 5.    CONTINUING PROFESSIONAL EDUCATION
 
13:40A-5.4   Special course requirement(s)[; Uniform Standards of Professional Appraisal Practice]
 
(a) All licensed and certified real estate appraisers shall be required to complete the [seven hour] seven-hour National Update Course on the Uniform Standards of Professional Appraisal Practice or its equivalent at least once every 24 months.
 
(b) All licensed and certified real estate appraisers shall be required to complete a two-hour course on New Jersey law and rules governing the practice of real estate appraising. The course, at a minimum, shall include: the origin and history of the Real Estate Appraisers Act, the Board composition, scope of practice, mixed practice conflicts of interest, continuing education requirements and criteria, temporary visiting certificates, trainee and supervisor requirements, appraisal reporting and common deficiencies, and the complaint process.
 
13:40A-5.6   Acceptable course topics
 
(a) The Board shall approve only those continuing education activities and course topics as are deemed by the Board to be consistent with the purpose of continuing education. Examples of such course topics may include, but are not limited to: changes in the Uniform Standards of Professional Appraisal Practice; ad valorem taxation; arbitration; business courses related to practice of real estate appraisal; construction estimating; land use planning; zoning and taxation; management, leasing, brokerage, timesharing; property development; State law and rules governing the practice of real estate appraising; real estate appraisal (valuation/evaluations), law, litigation, financing, and investment; real estate appraisal related computer applications; real estate securities and syndication; real property exchange; green building; seller concessions; and developing opinions on real estate value in appraisals that also include personal property and/or business value.
 
(b)-(c) (No change.)
 
13:40A-5.9   Responsibilities of continuing education providers
 
(a) All providers of continuing education courses shall:
 
1. (No change.)
 
2. Submit, on forms provided by the Board, for each course for which [appraisal] approval is sought, the following for evaluation by the Board[;]:
 
i.-v. (No change.)
 
vi. The name of the instructor(s) proposed to teach the course or seminar; [and]
 
3. Monitor the attendance at each approved course [and provide the Board with a roster of attendees within 30 days of the conclusion of the program.]; and
 
4. Retain accurate records of attendance for a four-year period and shall submit such documentation to the Board upon request.
 
[(b) All continuing education courses shall be taught in public facilities.]
 
SUBCHAPTER 7.    GENERAL PROVISIONS
 
13:40A-7.6   License or certification renewal
 
(a) The Board shall send a notice of renewal to each licensee or certificate holder, at least 60 days prior to the expiration of the license or certification. The notice of renewal shall explain inactive renewal and advise the licensee or certificate holder of the option to renew as inactive. If the notice to renew is not sent 60 days prior to the expiration date, no monetary penalties or fines shall apply to the licensee or certificate holder for failure to renew, provided that the license or certification is renewed within 60 days from the date the notice is sent or within 30 days following the date of license or certification expiration, whichever is later.
 
(b) A licensee or certificate holder shall renew his or her license or certification for a period of two years from the last expiration date. The licensee or certificate holder shall submit a renewal application to the Board, along with the renewal fee set forth in N.J.A.C. 13:40A-7.1, prior to the date of license or certification expiration.
 
(c) A licensee or certificate holder may renew his or her license or certification by choosing inactive status. A licensee or certificate holder electing to renew his or her license or certification as inactive shall not engage in the practice of real estate appraising, or hold himself or herself out as eligible to engage in the practice of real estate appraising in New Jersey, until such time as the license or certification is returned to active status.
 
(d) If a licensee or certificate holder does not renew his or her license or certification prior to its expiration date, the licensee or certificate holder may renew the license or certification within 30 days of its expiration by submitting a renewal application, a renewal fee, and a late fee as set forth in N.J.A.C. 13:40A-7.1. During this 30-day period, the license or certification shall be valid and the licensee or certificate holder shall not be deemed practicing without a license or certification, as applicable.
 
(e) A licensee or certificate holder who fails to submit a renewal application within 30 days of license or certification expiration shall have his or her license or certification suspended without a hearing.
 
(f) A licensee or certificate holder who continues to engage in the practice of real estate appraising with a suspended license or certification shall be deemed to be engaging in the unauthorized practice of real estate appraising and shall be subject to action consistent with N.J.S.A. 45:1-14 et seq., even if no notice of suspension has been provided to the individual.
 
13:40A-7.7   License or certification reactivation
 
(a) A licensee or certificate holder who holds an inactive license or certification pursuant to N.J.A.C. 13:40A-7.6(c) may apply to the Board for reactivation of the inactive license or certification. A licensee or certificate holder seeking reactivation of an inactive license or certification shall submit:
 
1. A renewal application;
 
2. A certification of employment listing each job held during the period of the inactive license or certification, which includes the name, address, and telephone number of each employer;
 
3. The renewal fee for the biennial period for which reactivation is sought as set forth in N.J.A.C. 13:40A-7.1; and
 
4. Evidence of having completed all continuing education credits for the current biennial registration period that were required to be completed within two years prior to the beginning of the renewal period for which reactivation is sought, consistent with the requirements set forth in N.J.A.C. 13:40A-5.
 
i. An applicant who holds a valid, current license or certification in good standing issued by another state to engage in the practice of real estate appraising and submits proof of having satisfied that state's continuing education requirements for that license or certification during the biennial period immediately prior to the renewal period for which reactivation is sought, shall be deemed to have satisfied the requirements of (a)4 above. If the other state does not have any continuing education requirements, the requirements of (a)4 above apply.
 
(b) If a Board review of an application establishes a basis for concluding that there may be practice deficiencies in need of remediation prior to reactivation, the Board may require the applicant to submit to and successfully pass an examination or an assessment of skills, a refresher course, or other requirement(s) as determined by the Board prior to reactivation of the license or certification. If the examination or assessment identifies deficiencies or educational needs, the Board may require the applicant, as a condition of reactivation of licensure or certification, to take and [page=2093] successfully complete any education or training or to submit to any supervision, monitoring, or limitations, as the Board determines are necessary to assure that the applicant practices with reasonable skill. The Board in its discretion may restore the license or certification subject to the applicant's completion of the training within a period of time prescribed by the Board following the restoration of the license or certification. In making its determination whether there are practice deficiencies requiring remediation, the Board shall consider the following, but not limited to:
 
1. Length of duration license or certification was inactive;
 
2. Employment history;
 
3. Professional history;
 
4. Disciplinary history and any action taken against the applicant's license or certification by any licensing board;
 
5. Actions affecting the applicant's privileges taken by any institution, organization, or employer related to the practice of real estate appraising or other professional or occupational practice in New Jersey, any other state, the District of Columbia, or in any other jurisdiction;
 
6. Pending proceedings against a professional or occupational license or certification issued to the licensee or certificate holder by a professional board in New Jersey, any other state, the District of Columbia, or in any other jurisdiction; and
 
7. Civil litigation related to the practice of real estate appraising or other professional or occupational practice in New Jersey, any other state, the District of Columbia, or in any other jurisdiction.
 
13:40A-7.8   License or certification reinstatement
 
(a) A licensee or certificate holder who has had his or her license suspended pursuant to N.J.A.C 13:40A-7.6(e) above may apply to the Board for reinstatement. A licensee or certificate holder applying for reinstatement shall submit:
 
1. A reinstatement application;
 
2. A certification of employment listing each job held during the period of suspended license or certification, which includes the name, address, and telephone number of each employer;
 
3. The renewal fee for the biennial period for which reinstatement is sought;
 
4. The past due renewal fee for the biennial period immediately preceding the renewal period for which reinstatement is sought;
 
5. The reinstatement fee set forth in N.J.A.C. 13:40A-7.1; and
 
6. Evidence of having completed all continuing education credits for the current biennial registration period that were required to be completed during the biennial period immediately prior to the renewal period for which reinstatement is sought, consistent with the requirements set forth in N.J.A.C. 13:40A-5.
 
i. An applicant who holds a valid, current license or certification in good standing issued by another state to engage in the practice of real estate appraising and submits proof of having satisfied that state's continuing education requirements for that license or certification, shall be deemed to have satisfied the requirements of (a)6 above. If the other state does not have any continuing education requirements, the requirements of (a)6 above shall apply.
 
(b) If a Board review of an application establishes a basis for concluding that there may be practice deficiencies in need of remediation prior to reinstatement, the Board may require the applicant to submit to and successfully pass an examination or an assessment of skills, a refresher course, or other requirements as determined by the Board, prior to reinstatement of the license or certification. If the examination or assessment identifies deficiencies or educational needs, the Board may require the applicant as a condition of reinstatement of licensure to take and successfully complete any education or training or to submit to any supervision, monitoring, or limitations, as the Board determines are necessary to assure that the applicant practices with reasonable skill. The Board in its discretion may restore the license or certification subject to the applicant's completion of the training within a period of time prescribed by the Board following the restoration of the license or certification. In making its determination whether there are practice deficiencies requiring remediation, the Board shall consider the following, but not limited to:
 
1. Length of duration license or certification was suspended;
 
2. Employment history;
 
3. Professional history;
 
4. Disciplinary history and any action taken against the applicant's license or certification by any licensing board;
 
5. Actions affecting the applicant's privileges taken by any institution, organization, or employer related to the practice of real estate appraising, or other professional or occupational practice in New Jersey, any other state, the District of Columbia, or in any other jurisdiction;
 
6. Pending proceedings against a professional or occupational license or certification issued to a licensee or certificate holder by a professional board in New Jersey, any other state, the District of Columbia, or in any other jurisdiction; and
 
7. Civil litigation related to the practice of real estate appraising or other professional or occupational practice in New Jersey, any other state, the District of Columbia, or in any other jurisdiction.
 
Recodify existing 13:40A-7.8 and 7.9 as 7.9 and 7.10
 
(No change in text.)
 
13:40A-[7.10]7.11   Notification of change of address; service of process
 
(a) Every licensee and certificate holder shall give notice to the Board of any change of his or her address of record within 10 days of such change. For purposes of this section "address of record" means an address designated by a licensee or certificate holder which is part of the public record and which may be disclosed upon request. "Address of record" may be a licensee or certificate holder's home, business or mailing address, but shall not be a post office box, unless the licensee or certificate holder also provides another address that includes a street, city, state, and zip code.
 
(b) (No change.)
 
SUBCHAPTER 8.    CERTIFICATION OR LICENSURE BY RECIPROCITY
 
13:40A-8.1   Certification or licensure by reciprocity
 
(a) Upon receipt of a completed application, application fee, consent to a criminal history record background check, and requisite fee for such a check, the Board shall issue a real estate appraiser license or certification to any person who documents that the person holds a valid, current corresponding license or certification in good standing issued by another state, if:
 
1. The Board determines that the state that issued the license or certification has or had at the time of issuance, education, training, and examination requirements for licensure or certification substantially equivalent to the current standards of this State; and
 
2. The requirements of (b) below are satisfied.
 
(b) Prior to the issuance of the license or certification, the Board shall have received:
 
1. Documentation reasonably satisfactory to the Board that the applicant's license or certification in the other state is in good standing;
 
2. The results of a criminal history record background check of the files of the Criminal Justice Information Services Division in the Federal Bureau of Investigation and of the State Bureau of Identification in the Division of State Police do not disclose a conviction for a disqualifying crime; and
 
3. Designation of an agent in this State for service of process, if the applicant is not a State resident and does not have an office in this State.
 
(c) For purposes of this section, "good standing" means that:
 
1. No action has been taken against the applicant's license or certification by any licensing board;
 
2. No action adversely affecting the applicant's privileges to practice real estate appraising has been taken by any out-of-State institution, organization, or employer;
 
[page=2094] 3. No disciplinary proceeding is pending that could affect the applicant's privileges to practice real estate appraising;
 
4. All fines levied by any out-of-State board have been paid; and
 
5. There is no pending or final action by any criminal authority for violation of law or regulation, or any arrest or conviction for any criminal or quasi-criminal offense under the laws of the United States, New Jersey, or any other state, including but not limited to: criminal homicide; aggravated assault; sexual assault, criminal sexual contact, or lewdness; or any offense involving any controlled dangerous substance or controlled dangerous substance analog.
 
(d) For purposes of this section, a "substantially equivalent" examination need not be identical to the current examination requirements of this State, but such examination shall be nationally recognized and of comparable scope and rigor.
 
(e) The Board, after the licensee has been given notice and an opportunity to be heard, may revoke any license or certification based on a license or certification issued by another state obtained through fraud, deception, or misrepresentation.

 

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