[THIS PAGE NOT FOR PUBLICATION IN THE CODE OF COLORADO REGULATIONS]
DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
BOARD OF REAL ESTATE APPRAISERS
4 CCR 725-2

CHAPTER 7:	CONTINUING EDUCATION REQUIREMENTS

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Board of Real Estate Appraisers (the “Board”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules of the Board.

STATEMENT OF BASIS

The statutory basis for the rules titled Rules of the Board of Real Estate Appraisers is Chapter 7 of Title 12, Article 61, Colorado Revised Statutes, as amended.  The General Assembly passed Senate Bill 90-34, effective July 1, 1990, which created the Board and mandated the licensing of real estate appraisers under the statutory terms and conditions.  The General Assembly has variously amended the statutes by passing House Bill 92-1177, House Bill 96-1080, Senate Bill 97-90, House Bill 97-1056, House Bill 00-1137 and House Bill 02-1130.

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the statute and the provisions of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989.

SPECIFIC PURPOSE OF THIS RULEMAKING

The specific purpose of this rule is to amend or repeal existing rules with respect to appraiser continuing education requirements. 

Proposed New, Amended and Repealed Rules

[Deleted material shown struck through, new material shown ALL CAPS. Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Board at www.dora.state.co.us/real-estate/rulemaking/BOREA/index.htm]

CHAPTER 7:	CONTINUING EDUCATION REQUIREMENTS

[PUBLICATION INSTRUCTIONS: 7.1, 7.9, 7.16, 7.20, 7.21, IN EFFECT UNCHANGED]

7.2	Except as provided under Board Rule 7.1, each applicant for renewal of a license shall complete at least 42 hours of real estate appraisal continuing education during the three-year period preceding expiration of the license to be renewed. All licensees renewing a license at the end of a three-year licensing period shall complete the National Uniform Standards of Professional Appraisal Practice Update Courses set forth in Board Rule 7.19. Continuing education requirements must be completed after the effective date of the license to be renewed and prior to the expiration of such license. Upon written request and receipt of the supporting documentation established by the Board, the Board may grant a deferral for continuing education compliance for licensees returning from active military duty. Credential holders returning from active military duty may be placed on active status for up to 90 days pending completion of all continuing education requirements established pursuant to Chapter 7.

7.3	Continuing real estate appraisal education shall be taken from providers approved by the Board. In order to be approved by the Board, continuing education shall meet the following standards:
A.	It shall have been developed by persons qualified in the subject matter and instructional design;
B.	It shall be current;
C.	The instructor shall be qualified with respect to content and teaching methods; and
D.	The number of participants and the physical facilities are consistent with the teaching method(s).
The Board, at its discretion, may require an evaluation in a manner determined by the Board of an educational offering to ensure compliance with the above standards.  By offering real estate appraisal continuing education in Colorado, each provider agrees to comply with relevant statutes and Board rules and to permit Board audit of said courses at any time and at no cost.  If the Board determines that the offering fails to comply with the standards set above, the Board will notify the provider of such deficiency and work with the provider to correct such deficiency prior to the next class offering.  If such deficiency is not corrected, then the Board may withdraw approval of the provider, instructor and/or the class.

7.4	The following may be approved as providers of continuing appraisal education provided the standards set forth in Board Rule 7.3 are maintained and provided they have complied with all other requirements of the State of Colorado:
A.	Universities, colleges, junior colleges or community colleges accredited by a regional accrediting body accredited by the Council on Post Secondary Accreditation;
B.	Professional appraisal and real estate related organizations;
C.	State or federal government agencies;
D.	Proprietary schools holding valid certificates of approval from the Colorado Division of Private Occupational Schools, Department of Higher Education
E.	Continuing education completed in other jurisdictions, providers approved by such other jurisdiction, provided that the jurisdiction’s appraiser regulation program has been determined to be in compliance with Title XI, FIRREA;
F.	The providers of continuing education approved under the Course Approval Program of The Appraisal Foundation; and
G.	Such other providers as the Board may approve upon petition of the education provider or the applicant in a form acceptable to the Board.

7.5	Continuing education providers shall, at their own expense, maintain and provide to the Board on request, information regarding the educational offerings including, but not limited to the following: 
A.	Outline or syllabus; 
B.	All texts, workbooks, handouts or other materials;
C.	Instructors and their qualifications, including selection, training and evaluation criteria;
D.	Examinations (if any);
E.	Dates and locations of offerings; and
F.	Record of participation;

7.6	Continuing appraisal education shall be at least 2 class hours in duration including examination time (if any). Continuing appraisal education programs and courses are intended to maintain and improve the appraiser’s skill, knowledge and competency. Continuing appraisal education courses and programs may include, without limitation, these real estate and real estate appraisal related topics:
A.	Ad valorem taxation;
B.	Arbitration;
C.	Business courses related to practice of real estate appraisal;
D.	Construction cost estimating;
E.	Ethics and standards of professional practice; 
F.	Land use planning, zoning and taxation;
G.	Management, leasing, brokerage and timesharing;
H.	Property development;
I.	Real estate appraisal (valuation/evaluation);
J.	Real estate law;
K.	Real estate litigation;
L.	Real estate financing and investment;
M.	Real estate appraisal related computer applications;
N.	Real estate securities and syndication;
O.	Real property exchange; and
P.      Such other topics as the Board may approve, upon its own motion or upon petition by the course provider or the licensee in a form acceptable to the Board.
Failure to request and receive approval of continuing real estate appraisal education prior to commencement of the course may result in Board refusal to accept the offering for continuing education credit.  

7.8	The Board may consider alternatives to continuing real estate appraisal education such as teaching, authorship of textbooks or articles, educational programs development or similar activities for up to one-half of the required continuing education. Licensees desiring continuing education credit for alternative activities must petition the Board for approval in writing and prior to commencement of the alternative activity.

7.10	With the exception of the 7-hour National USPAP Update Course(s), or its equivalent, required pursuant to Board Rule 7.19, applicants for renewal of a license may complete the required hours of continuing real estate appraisal education at any time during the licensing period preceding expiration.

7.11	An appraiser may repeat courses or programs previously completed, subject to the limitation that no course or program may be repeated more frequently than once every two (2) years, except as authorized by the Board. Education in appraisal ethics and the Uniform Standards of Professional Appraisal Practice are not subject to this limitation.

7.12	Continuing real estate appraisal education shall be successfully completed by the holder of the license to be renewed. Successful completion means attendance at the offering and participation in class activities. Successful completion of courses undertaken through distance education requires compliance with the provisions of Board Rule 7.14. Teaching of continuing real estate appraisal education shall constitute successful completion, however credit shall be given for only one presentation of a particular offering during each renewal period.

7.13	The number of hours credited shall be equivalent to the actual number of contact hours of in class instruction and testing. An hour of appraisal education and training is defined as at least 50 minutes of instruction out of each 60-minute segment. For distance education offerings, the number of hours credited shall be that number of hours allowed by the Course Approval Program of The Appraisal Foundation.

7.14	Distance education offerings shall include methods and activities which promote active student engagement and participation in the learning process. Among those methods and activities acceptable are written exercises which are graded and returned to the student, required responses in computer based presentations, provision for students to submit questions during teleconferences, and examinations proctored by an independent third party. Simple reading, viewing or listening to materials is not sufficient engagement in the learning process to satisfy the requirements of this rule.

7.15	As to continuing education completed in other jurisdictions with appraiser regulatory programs established in conformance with Title XI, FIRREA, the Board shall accept the number of hours of continuing education accepted by that jurisdiction.

7.17	REPEALED.

7.18	Continuing education content must have a clear application to real estate appraisal practice. Motivational courses, personal growth or self-improvement courses, general business courses and general computing courses are unacceptable to satisfy the continuing education requirements established by these rules.

7.19	All licensees shall successfully complete a 7-hour National USPAP Update Course, or its equivalent, every two calendar years. Such 7-hour National USPAP Update Course shall be in the form of a course approved by the Appraiser Qualifications Board of The Appraisal Foundation, and taught by an instructor certified by the Appraiser Qualifications Board of The Appraisal Foundation and who is also a state certified appraiser. Equivalency shall be determined through the Appraiser Qualifications Board Course Approval Program or by an alternate method established by the Appraiser Qualifications Board.

7.22	Course providers shall provide each student who successfully completes a continuing education course in the manner prescribed in Board Rule 7.12 a course completion certificate. The Board will not mandate the exact form of course certificates, however, the following information shall be included:
A.	Name of course provider;
B.	Course title, which shall describe topical content;
C.	Course number, if any;
D.	Course dates;
E.	Number of continuing education hours;
F.	Statement that the required examination was successfully completed, if an examination is a regular part of the course;
G.	Course location, which for distance education modalities shall be the principal place of business of the course provider;
H.	Name of student; and
I.	For Uniform Standards of Professional Appraisal Practice courses begun on and after January 1, 2003, the name and Appraiser Qualifications Board Uniform Standards of Professional Appraisal Practice instructor certification number of the instructor.

7.23	The provisions of Board Rule 7.4 notwithstanding, real estate appraisal continuing education offered through distance education must be approved through the Course Approval Program of The Appraisal Foundation, unless the provider is a government agency that has sought an exemption from the Board.