NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Regulation and Licensing in ss. 227.11 (2), 458.03 (1) (b) and 458.085, Stats., and interpreting ss. 458.06, 458.08 and 458.13, Stats., the Department of Regulation and Licensing will hold a public hearing at the time and place indicated below to consider an order to repeal RL 80.03 (1a), (1b), (7g) (a) and (b), 81.02 (6), 83.01 (4) (a), 84.01 (2), (5), (6) (a) (intro.), 1., 2., 3., (b) (intro.), 1., 2., 3., the Note following RL 84.01 (6) (b) 3., (c) (intro.), 1. and 2. and (13), 85.02 (7) (a) (intro.), 1., 2., (b) (intro.), 1., 2., 3., (c) (intro.), 1., 2., 3., the Note following RL 85.02 (7) (c) 3., (d) (intro.), 1. and 2. and (11); to renumber and amend RL 80.03 (7g) (intro.), 84.01 (6) (intro.), 84.02, 84.03, 84.04, 85.02 (2) and (7) (intro.); to amend RL 80.03 (3), (9) and (13), 81.01, 81.02 (intro.), (3), (7), the Note following RL 81.02 (8), 81.03 (1) (title), (intro.), (c), (2) (intro.), (a), the Note following RL 81.03 (2) (d), the Note following RL 81.04 (1) (a), 81.04 (1) (c) (intro.) and 1., 81.05 (1) (title) and (2) (title), 82.01 (6), 83.01 (3) (intro.), (a) and (b), (4) (b), the Note following RL 83.01 (4) (c), 83.02 (2), 84.01 (1), (7) (b) and (c), (9) (d) and (e), (12) and the Note following RL 84.01 (12), 85.01 (1), (1m), (2), (3) and (5), 85.02 (1), (6), (8) (b) and (c), the Note following RL 85.02 (8) (d), (10), the Note following RL 85.02 (10), 86.01 (1), (2), (4) and (10), 87.01 (1), (2) and (3) and 87.02 (1), (2) (intro.) and (b); to repeal and recreate RL 80.03 (10), 84.01 (7) (e) and 85.02 (8) (e); and to create RL 80.03 (4m), a Note following RL 81.02 (5), 83.01 (3) (f) and (3m), a Note following RL 84.01 (6), 85.02 (2) (a) to (m), a Note following RL 85.02 (7), 86.01 (11) and 87.02 (2) (c), relating to definitions, experience, educational courses, continuing education, conduct and renewal for real estate appraisers.

Date:   May 10, 2006

Time:   9:15 A.M.

Location:   1400 East Washington Avenue

  Room 121C

  (Enter at 55 Dickinson Street)

  Madison, Wisconsin

Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Legal Council, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708, or by e-mail to pamela.haack@drl.state.wi.us. Written comments must be received by May 22, 2006, to be included in the record of rule-making proceedings.

Statutes interpreted: Sections 458.06, 458.08 and 458.13, Stats.

Statutory authority: Sections 227.11 (2), 458.03 (1) (b) and 458.085, Stats.

Explanation of agency authority: The Department of Regulation and Licensing is authorized under ss. 458.03 (1) (b) and 458.085, Stats., to promulgate rules establishing the criteria for the approval of educational programs and experience requirements for licensed and certified appraisers.

Related statute or rule: The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), 12 USC 3331 et seq.

Plain language analysis:

SECTION 1. In s. RL 80.03 (1a), the department repeals the definition of “ad valorem tax appraisal" and replaces it with the definition of “mass appraisal." The definition of “mass appraisal," which is created in SECTION 7, is more commonly used in the profession. Section RL 80.03 (1b), which contains the definition of “affidavit," is being repealed because the department no longer requires applicants to submit affidavits verifying appraisal experience.

SECTION 2. In s. RL 80.03 (3), the department amends the definition of “appraiser experience," to include the types of experience that it will accept for purposes of granting appraiser credentials. This change reflects the revisions made by the Appraiser Qualifications Board (“AQB") of the Appraisal Foundation to the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria.

SECTION 3. Section RL 80.03 (4m) is being created to define “class hour" to mean 60 minutes, of which at least 50 minutes are instruction attended by the student. This definition replaces the definition of “hour of instruction" found in s. RL 80.03 (10), which is being repealed and recreated in SECTION 7.

SECTION 4. Section RL 80.03 (7g) (intro.) is renumbered s. RL 80.03 (7g) and is being amended to define distance education to mean any education process based on the geographical separation of student and instructor. This change reflects the revisions made by the Appraiser Qualifications Board (“AQB") of the Appraisal Foundation to the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria.

SECTION 5. Refer to comments under SECTION 4 above.

SECTION 6. Section RL 80.03 (9) is being amended to make a minor correction.

SECTION 7. Refer to comments under SECTION 1 above.

SECTION 8. In s. RL 80.03 (13), the definition of “real estate consulting" is being revised to make a minor change to the rule.

SECTION 9. Section RL 81.01 is being amended to omit the references to sub. (1), because starting January 1, 2008, applicants may be required to satisfy additional educational requirements that are set forth in other subsections of the rules. Refer to SECTIONS 37, 38 and 39.

SECTION 10. Section RL 81.02 (intro.) is being amended to reduce the amount of time that applicants will be required to comply with a request for information related to an application from one year to 120 calendar days. At the expiration of the 120 day period, applicants will be required to file a new application and fee if certification or licensure is sought at a later date.

SECTION 11. A note following s. RL 81.02 (5) is being created to set forth the amount of time that applicants will be allowed to take and pass the state and national examinations and to complete all other requirements for licensure or certification. This change reflects the revisions made by the Appraiser Qualifications Board (“AQB") of the Appraisal Foundation to the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria.

SECTION 12. Section RL 81.02 (6) is being repealed because the department will no longer require an applicant to submit an affidavit verifying appraisal experience.

SECTION 13. Section RL 81.02 (7) is being amended to make a minor change.

SECTION 14. The Note following s. RL 81.02 (8) is being amended to state that applications are available on the department's website.

SECTION 15. Section RL 81.03 (1) (intro.) is being amended to clarify that an appraiser who applies for a temporary registration must hold a credential in another state that is not currently limited, suspended or revoked. Section RL 81.03 (1) (c) is being amended to correct the statute citation.

SECTION 16. Refer to SECTION 10 above.

SECTION 17. Refer to SECTION 14 above.

SECTION 18. Refer to SECTION 14 above.

SECTION 19. Section RL 81.04 (1) (c) 1. is being amended to clarify that an appraiser who applies for a reciprocal credential must hold a credential in another state that is not currently limited, suspended or revoked.

SECTION 20. Section RL 81.05 (1) (title) and (2) (title) are being amended to make minor changes.

SECTION 21. Section RL 82.01 (6) is being amended to omit the references to sub. (1), because starting January 1, 2008, applicants may be required to satisfy additional educational requirements that are set forth in other sections of the rules. Refer to SECTIONS 37, 38 and 39.

SECTION 22. Section RL 83.01 (3) is being amended to make minor and technical changes to the rules. See, also, SECTION 2 above.

SECTION 23. Section RL 83.01 (3) (f) is being created to clarify that an applicant may claim no more than 50% of appraisal experience gained without a client. Section RL 83.01 (3m) is being created to state that an applicant who fails to complete the experience hours required for licensure or certification prior to January 1, 2008, may claim only those hours acquired after January 30, 1989. These changes reflect revisions made by the Appraiser Qualifications Board (“AQB") of the Appraisal Foundation to the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria.

SECTION 24. Section RL 83.01 (4) (a) is being repealed because the department will no longer require an applicant to submit an affidavit verifying appraisal experience. See, also, SECTION 12 above.

SECTION 25. Section RL 83.01 (4) (b) is being amended to make a minor change.

SECTION 26. The Note following s. RL 83.01 (4) (c) is being amended to state that applications are available on the department's website.

SECTION 27. Section RL 83.02 (2) is being amended because the department no longer requires applicants to submit affidavits verifying appraisal experience. See, also, SECTIONS 12 and 24 above.

SECTION 28. Section RL 84.01 (1) is being amended to reflect that the department no longer accepts courses approved for college credit by the American Council on Education. See, also, SECTION 36.

SECTION 29. Section RL 84.01 (5) is being repealed to reflect that the department no longer accepts courses obtained through challenge examinations.

SECTION 30. Section RL 84.01 (6) (intro.) is being renumbered s. RL 84.01 (6) and is being amended to reflect that the criteria for granting credit for distance education will be based upon the requirements for continuing education courses established by the AQB that are in effect at the time a course is completed.

SECTION 31. Section RL 84.01 (6) (a) (intro.), 1., 2., 3., and the other related provisions are being repealed for the reason stated in SECTION 30 above.

SECTION 32. The Note following s. RL 84.01 (6) is being created to include the website address for the AQB.

SECTION 33. Section RL 84.01 (7) (b) is being amended to include the types of experience that the department will accept for purposes of granting appraiser credentials. See, also, SECTION 2 above. Section RL 84.01 (7) (c) is being amended to clarify that assessor educational programs must be pertinent to appraisal practice in order for the programs to receive approval.

SECTION 34. Section RL 84.01 (7) (e) is being repealed to reflect that the department no longer accepts courses approved for college credit by the American Council on Education. See, also, SECTION 28 above. Section RL 84.01 (7) (e) is being recreated to state that in order for an individual to be approved as an instructor to teach the 15-hour National USPAP Course or its equivalent, the individual must be a certified residential or general appraiser, and be certified by the AQB as an instructor to teach that course. This revision reflects changes made by the Appraiser Qualifications Board (“AQB") of the Appraisal Foundation to the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria.

SECTION 35. Section RL 84.01 (9) and (12) are being amended to make minor changes to the rules.

SECTION 36. Section RL 84.01 (13) is being repealed to reflect that the department no longer accepts courses approved for college credit by the American Council on Education. See, also, SECTION 28 above.

SECTION 37. Section RL 84.02 is renumbered s. RL 84.03 and is being amended to state that an applicant who fails to complete the 120 class hours before January 1, 2008, will be required to complete the educational requirements set forth in s. RL 84.03 (4). Section RL 84.03 (4) requires an individual who applies for a certified residential appraiser credential after January 1, 2008, to submit evidence of completion of 200 class hours and an associate degree or equivalent education. This amendment reflects revisions made by the Appraiser Qualifications Board (“AQB") of the Appraisal Foundation to the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria.

SECTION 38. Section RL 84.03 is renumbered s. RL 84.04 and is being amended to state that an applicant who fails to complete the 180 class hours before January 1, 2008, will be required to complete the educational requirements set forth in s. RL 84.04 (4). Section RL 84.04 (4) requires an individual who applies for a certified general appraiser credential after January 1, 2008, to submit evidence of completion of 300 class hours and a bachelor's degree or equivalent education. This amendment reflects revisions made by the Appraiser Qualifications Board (“AQB") of the Appraisal Foundation to the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria.

SECTION 39. Section RL 84.04 is renumbered s. RL 84.02 and is being amended to state that an applicant who fails to complete the 90 class hours before January 1, 2008, will be required to complete the educational requirements set forth in s. RL 84.02 (4). Section RL 84.02 (4) requires an individual who applies for a licensed appraiser credential after January 1, 2008, to submit evidence of completion of 150 class hours of education. This amendment reflects revisions made by the Appraiser Qualifications Board (“AQB") of the Appraisal Foundation to the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria.

SECTION 40. Section RL 85.01 (1), (1m), (2), (3) and (5) are being amended to make minor changes to the rules.

SECTION 41. Section RL 85.02 (1) is being amended to delete the reference to sub. (11). The amendment reflects that the department no longer accepts courses approved for college credit by the American Council on Education. See, also, SECTIONS 28 and 34 above.

SECTION 42. Section RL 85.02 (2) is renumbered s. RL 85.02 (2) (intro.) and is being amended to reflect that the department will approve only continuing education courses that relate to specific topics or subject areas.

SECTION 43. Section RL 85.02 (2) (a) to (m) are being created to identify the continuing education topics or subject areas that the department will approve. Refer, also, to SECTION 42 above.

SECTION 44. Section RL 85.02 (6) is being amended to make a minor change to the rules.

SECTION 45. Section RL 85.02 (7) (intro.) is renumbered s. RL 85.02 (7) and is being amended to reflect that the criteria for granting credit for distance education will be based upon the requirements for continuing education courses established by the AQB that are in effect at the time a course is completed. See, also, SECTION 30 above.

SECTION 46. Section RL 85.02 (7) (a) (intro,), 1., 2., and the other related provisions are being repealed for the reason stated in SECTION 45 above.

SECTION 47. A Note following s. RL 85.02 (7) is being created to make a minor change to the rules.

SECTION 48. Section RL 85.02 (8) (b) and (c) are being amended to make minor changes to the rules.

SECTION 49. The Note following s. RL 85.02 (8) (d) is being amended to make a minor change to the rules.

SECTION 50. Section RL 85.02 (8) (e) is being repealed to reflect that the department no longer accepts courses approved for college credit by the American Council on education. See, also, SECTIONS 28 and 36 above. Section RL 85.02 (8) (e) is being recreated to state that in order for an individual to be approved as an instructor to teach the 7-hour National USPAP Update Course or its equivalent, the individual must be a certified residential or general appraiser, and be certified by the AQB as an instructor to teach that course. This revision reflects changes made by the Appraiser Qualifications Board (“AQB") of the Appraisal Foundation to the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria.

SECTION 51. Section RL 85.02 (10) and the Note following s. RL 85.02 (10) are being amended to make minor changes to the rules.

SECTION 52. Section RL 85.02 (11) is being repealed to reflect that the department no longer accepts courses approved for college credit by the American Council on Education. See, also, SECTIONS 28, 36 and 50 above.

SECTION 53. Section RL 86.01 (1), (2), (4) and (10) are being amended to make minor and technical changes to the rules.

SECTION 54. Section RL 86.01 (11) is being created to state that all certified and licensed appraisers shall comply with state and federal laws that substantially relate to the practice of real estate appraising. In reference to federal laws, this provision would require appraisers to comply with FIRREA as well as federal regulations promulgated by the federal financial institutions regulatory agencies (the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Office of Thrift Supervision and the National Credit Union Administration).

SECTION 55. Section RL 87.01 (1) to (3) is being amended to make minor and technical changes to the rules.

SECTION 56. Section RL 87.02 (1), (2) (intro.) and (b) are being amended to make minor and technical changes to the rules.

SECTION 57. Section RL 87.02 (2) (c) is being created to make a minor change to the rules.

Summary of, and comparison with, existing or proposed federal regulation:

A. Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA").

(1) In general:

The FIRREA, 12 U.S.C. 3331 et seq. (Title XI) was enacted in 1989. Under FIRREA, insured financial institutions and insured credit unions are required to obtain the services of a state certified or licensed appraiser for appraisals conducted in connection with “federally related transactions."

Under FIRREA, the Appraisal Subcommittee of the Federal Financial Institutions Examination Council is required to monitor state appraiser certifying and licensing agencies for the purpose of determining whether a state agency's policies, practices, and procedures are consistent with the federal law. The Appraisal Subcommittee may not recognize appraiser certifications and licenses from states whose appraisal policies, practices, or procedures are found to be inconsistent with FIRREA. Before refusing to recognize a state's appraiser certifications or licenses, the Appraisal Subcommittee must provide that state's certifying and licensing agency with a written notice of its intentions not to recognize the state's certified or licensed appraisers and ample opportunity to provide rebuttal information or to correct the conditions causing the refusal. A decision of the Subcommittee to refuse to recognize a state's appraiser certifications or licenses is subject to judicial review. 12 U.S.C. 3331 et seq.

In 1997, the Appraisal Subcommittee adopted the Policy Statements Regarding State Certification and Licensing of Real Estate Appraisers, which all states comply with. [The Appraisal Subcommittee's Policy Statements are available at http://www.asc.gov.]

(2) Appraisal Qualifications:

Under FIRREA, the state criteria for the qualifications of certified real estate appraisers must meet the minimum qualifications criteria for certification established by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation. The minimum qualifications criteria established by the AQB are set forth in the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria (“Criteria"). The AQB Criteria includes the minimum experience, examination, qualifying education and continuing education requirements that must be satisfied by an individual in order to obtain and maintain a certified appraisal credential. [The AQB Criteria is available on the Internet at http://www.appraisalfoundation.org.]

Under FIRREA, the states may establish their own qualifications and requirements for licensed appraiser credentials. The states are not obligated to adopt the minimum experience, examination, education and continuing education requirements recommended by AQB for the licensure of real estate appraisers. However, the Appraisal Subcommittee recommends that all states adopt the AQB Criteria established for licensed appraisers. The Department of Regulation and Licensing has adopted substantially all of the requirements set forth in the AQB Criteria established for the licensure of real estate appraisers.

Comparison with rules in adjacent states:

Under FIRREA (Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989), all states, including Illinois, Iowa, Indiana, Michigan and Minnesota, that certify real estate appraisers for purposes of conducting appraisals in federally related transactions must assure compliance with the AQB (Appraiser Qualifications Board) Criteria for the licensure of real estate appraisers.

Summary of factual data and analytical methodologies:

No study resulting in the collection of factual data was used relating to this rule. The primary methodology for revising the rule is the department's analysis and determination that a rule change is necessary.

Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report: