DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
BOARD OF REAL ESTATE APPRAISERS
4 CCR 725-2

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
May 2, 2013

CHAPTER 13:	DISCIPLINARY PROCEDURES

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.  

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 requirements for Board investigations and disciplinary procedures. 

Proposed New, Amended and Repealed Rules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 13:	DISCIPLINARY PROCEDURES

13.3	Pursuant to Section 12-61-710(7), C.R.S., complaints of record in the offices of the Board and the results of staff investigations shall be closed to public inspection, except as provided by court order, during the investigatory period and until notice of hearing and charges are served on the licensee.  Pursuant to Section 12-61-710(7), C.R.S., Section 24-72-203, C.R.S., and Section 24-72-204, C.R.S., complaints of record that are dismissed by the Board and the results of the investigation of such complaints shall be closed to public inspection, except as provided by court order.REPEALED.

13.4	When an appraiser licensed under the provisions of Section 12-61-710(7), et.seq., C.R.S., (as amended) has been sent written notification from the Board that a complaint has been filed against the appraiser, such appraiser shall submit to the Board a written answer.  Such written answer shall address all of the issues raised in the complaint in a substantive manner.  Mailing by first class mail to the last known address in the records of the Board shall constitute such written notification.  Failure to submit a written answer within the time set by the Board in its notification will be grounds for disciplinary action unless the Board has granted a written extension of time for the answer.  WHEN A LICENSEE HAS RECEIVED WRITTEN NOTIFICATION FROM THE BOARD THAT A COMPLAINT HAS BEEN FILED AGAINST THE LICENSEE, THE LICENSEE MUST SUBMIT A WRITTEN RESPONSE TO THE BOARD.  FAILURE TO SUBMIT A WRITTEN RESPONSE WITHIN THE TIME SET BY THE BOARD IN ITS NOTIFICATION SHALL BE GROUNDS FOR DISCIPLINARY ACTION UNLESS THE BOARD HAS GRANTED AN EXTENSION OF TIME FOR THE RESPONSE IN WRITING AND REGARDLESS OF THE QUESTION OF WHETHER THE UNDERLYING COMPLAINT WARRANTS FURTHER INVESTIGATION OR SUBSEQUENT ACTION BY THE BOARD.  THE LICENSEE’S WRITTEN RESPONSE MUST CONTAIN THE FOLLOWING:
A.	A COMPLETE AND SPECIFIC ANSWER TO THE FACTUAL RECITATIONS, ALLEGATIONS OR AVERMENTS;
B.	A COMPLETE AND SPECIFIC RESPONSE TO ANY ADDITIONAL QUESTIONS, ALLEGATIONS OR AVERMENTS PRESENTED IN THE NOTIFICATION LETTER;
C.	ANY DOCUMENTS OR RECORDS REQUESTED IN THE NOTIFICATION LETTER; AND
D.	ANY FURTHER INFORMATION RELATIVE TO THE COMPLAINT THAT THE LICENSEE BELIEVES TO BE RELEVANT OR MATERIAL TO THE MATTERS ADDRESSED IN THE NOTIFICATION LETTER.

13.5	The holder of a Board-issued license or permit, INCLUDING AN OWNER OF MORE THAN TEN (10) PERCENT OF A LICENSED APPRAISAL MANAGEMENT COMPANY, shall inform the Board  in writing within ten (10) days of any disciplinary action taken by any other state, district, territorial, or provincial real estate appraiser or APPRAISAL MANAGEMENT COMPANYreal estate brokerage licensing authority.  For purposes of this rule, disciplinary action shall include, without limitation, actions such as fines, required education, probation, suspension, revocation, letters of censure, debarment, required supervision, and the like.

13.7 	AN APPRAISER LICENSED OR PERMITTED BY THE BOARDThe holder of a board-issued licensed or permit shall MUST inform the Board in writing within ten (10) days of conviction of, entering a plea of guilty to, or entering a plea of nolo contendere to any felony, or any crime involving moral turpitudeCHARACTER, or any other like crime under Colorado law, federal law, or the laws of other states.  A certified copy of the judgment of a court of competent jurisdiction of such conviction or other official record indicating that such plea was entered shall be conclusive evidence of such conviction or plea in any hearing under Section 12-61-701, et seq., C.R.S., or these Rules.

13.11	A CONTROLLING APPRAISER MUST INFORM THE BOARD IN WRITING WITHIN TEN DAYS OF CONVICTION OF, ENTERING A PLEA OF GUILTY TO, ENTERING A PLEA OF NOLO CONTENDERE, OR ENTERING AN ALFORD PLEA TO ANY MISDEMEANOR OR FELONY RELATING TO THE CONDUCT OF AN APPRAISAL, THEFT, EMBEZZLEMENT, BRIBERY, FRAUD, MISREPRESENTATION, OR DECEIT, OR ANY OTHER LIKE CRIME UNDER COLORADO LAW, FEDERAL LAW, OR THE LAWS OF OTHER STATES.

13.12	A CONTROLLING APPRAISER, OR AN APPROVED DESIGNEE OF A LICENSED APPRAISAL MANAGEMENT COMPANY, MUST INFORM THE BOARD IN WRITING WITHIN TEN DAYS WHEN AN OWNER OF AN APPRAISAL MANAGEMENT COMPANY, POSSESSING MORE THAN TEN PERCENT OWNERSHIP OF THE LICENSED ENTITY, HAS BEEN CONVICTED OF, ENTERED A PLEA OF GUILTY TO, ENTERED A PLEA OF NOLO CONTENDERE, OR ENTERED AN ALFORD PLEA TO ANY MISDEMEANOR OR FELONY RELATING TO THE CONDUCT OF AN APPRAISAL, THEFT, EMBEZZLEMENT, BRIBERY, FRAUD, MISREPRESENTATION, OR DECEIT, OR ANY OTHER LIKE CRIME UNDER COLORADO LAW, FEDERAL LAW, OR THE LAWS OF OTHER STATES. 

A hearing on the above subject matter will be held on Thursday, May 2, 2013, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250C, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate.  Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than ten (10) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered.

Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.