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

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of emergency 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.

Emergency Rule
December 2007 Appraiser Rule Changes

Section 1.	Statement of Basis and Authority
Section 2. 	Scope and Purpose
Section 3.	Applicability
Section 4. 	Effective Date
Section 5. 	December 2007 Appraiser Rule Changes

Section 1. 	Statement of Basis and Authority

The statutory basis for the rules titled Rules of the Board of Real Estate Appraisers is Part 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.

The Board of Real Estate Appraisers adopts the following emergency rule entitled, December 2007 Appraiser Rule Changes, according to authority as found in §§ 12-61-704(1)(a), 12-61-715(1)(c) and 24-4-103(6), C.R.S.

Section 2.	Scope and Purpose

The Colorado Board of Real Estate Appraisers finds that immediate adoption of this rule is imperatively necessary to comply with federal law (Title XI of the federal “Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended) and for the preservation of public health, safety or welfare and that compliance with the rulemaking requirements of § 24-4-103, C.R.S., applicable to non-emergency rules, would be contrary to the public interest.

Section 12-61-704(1)(a), C.R.S. requires the Board of Real Estate Appraisers to promulgate and amend, as necessary, rules and regulations as required to comply with the federal Real Estate Appraisal Reform Amendments, Title XI of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended. Section 12-61-715(1)(c), C.R.S. requires the Board of Real Estate Appraisers to conduct its business and promulgate rules and regulations in a manner not inconsistent with Title XI of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended. 

The purpose of this rule is to ensure compliance with Title XI of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended. The purpose of this rule is also 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.

The specific purpose of this rule is to amend or repeal existing rules and adopt new rules with respect to: (1) Standards For Real Estate Appraisal Experience; (2) Continuing Education Requirements; (3) Renewal, Reinstatement, Surrender, Revocation of Licensure; (4) Standards of Professional Appraisal Practice; and (5) Disciplinary Procedures.

Without the immediate adoption of this emergency rule, the public’s interest is not served.  Wherefore, the Board of Real Estate Appraisers, pursuant to § 24-4-103(6), C.R.S. has an obvious and stated need to adopt this rule.

Section 3.	Applicability

This emergency rule governs real estate appraisers who are subject to the requirements of Part 7 of Title 12, Article 61 of the Colorado Revised Statutes.

Section 4	Effective Date

This emergency rule is effective December 7, 2007.

Section 5.	December 2007 Appraiser Rule Changes

CHAPTER 5: 	STANDARDS FOR REAL ESTATE APPRAISAL EXPERIENCE

5.11	An applicant for licensure as a Colorado Licensed Appraiser, a Colorado Certified Residential Appraiser or a Colorado Certified General Appraiser must demonstrate that the applicant is capable of performing appraisals that are compliant with the Uniform Standards of Professional Appraisal Practice. In accordance with Board Rule 5.5, the Board may verify an applicant’s appraisal experience by such means as it deems necessary, including but not limited to requiring the applicant to submit a detailed log of appraisal experience and appraisal reports and work files. Staff within the Colorado Division of Real Estate or appraisers selected by the Colorado Division of Real Estate may review an applicant’s appraisal reports and work files to determine whether the applicant is capable of performing appraisals that are compliant with USPAP. Such review shall not be considered an “Appraisal Review” as defined by USPAP. An appraiser performing a review of appraisal reports and work files in accordance with this rule shall not be required to perform a USPAP Standard 3 appraisal review.

CHAPTER 7:	CONTINUING EDUCATION REQUIREMENTS

7.21	A licensee who renews a license subject to a continuing education requirement shall retain documentary evidence of compliance with these continuing education requirements for a period of not less than five (5) years after the expiration of the license being renewed.

CHAPTER 8:	 RENEWAL, REINSTATEMENT, SURRENDER, REVOCATION OF LICENSURE

8.6	Each Licensee shall provide the Board with the following information: (1) a current mailing address and phone number for the licensee; (2) a current email address for the licensee or a letter explaining why the licensee cannot provide an email address; and (3) such other contact information as may be required by the Board from time to time. Each Licensee shall inform the Board within ten (10) calendar days of any change in such contact information on a form or in the manner prescribed by the Board. Contact information for the licensee will be posted on the division of real estate’s public website, and it is the licensee’s responsibility to inform the division of real estate of any required changes to the licensee’s contact information on the division of real estate’s public website. The address shown for the licensee on the Division of Real Estate’s public website shall be considered the licensee’s address of record.

8.8	The holder of a registration, license, certificate or temporary practice permit may surrender such to the Board. The Board may deem a surrendered registration, license, certificate or temporary practice permit as permanently relinquished. Such surrender shall not remove the holder from the jurisdiction of the Board for acts committed while holding a registration, license, certificate or temporary practice permit. A person who surrenders a registration, license, certificate or temporary practice permit may not reinstate same, but must reapply and meet the current requirements for initial licensure. 

8.12	Renewal or reinstatement of licensure on inactive status may be elected at the time of application for renewal or reinstatement.  A licensee may not renew or reinstate on active status and then change to inactive status, unless advance, written approval is given by the board. A licensee who has renewed or reinstated on active status is subject to the continuing education requirements for renewal or reinstatement of licensure.

CHAPTER 11:	STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE

11.1	Pursuant to Section 12-61-710(1)(g), C.R.S. (as amended), the Board adopts, and incorporates by reference in compliance with Section 24-4-103(12.5), C.R.S., as the generally accepted standards of professional appraisal practice the definitions, preamble, rules, standards and standards rules and statements of the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the Appraisal Foundation on January 30, 1989 and amended through June 8, 2007 and known as the 2008-2009 edition. Amendments to the Uniform Standards of Professional Appraisal Practice subsequent to June 8, 2007 are not included in this Rule. A certified copy of the Uniform Standards of Professional Appraisal Practice is on file and available for public inspection with the Program Manager at the offices of the Board of Real Estate Appraisers at 1560 Broadway, Suite 925, Denver, Colorado. Copies of the Uniform Standards of Professional Appraisal Practice adopted under this rule may be examined at any state publications depository library. The 2008-2009 edition of the Uniform Standards of Professional Appraisal Practice may be examined at the Internet website of The Appraisal Foundation at www.appraisalfoundation.org, and copies may be ordered through that mechanism. The Appraisal Foundation may also be contacted at 1155 15th Street, NW, Suite 1111, Washington, DC 20005, or by telephone at (202) 347-7722 or by telefax at (202) 347-7727. The 2006 edition of the Uniform Standards of Professional Appraisal Practice, incorporating amendments made through October 28, 2005 shall remain in effect through December 31, 2007. Beginning January 1, 2008, the 2008-2009 edition of the Uniform Standards of Professional Appraisal Practice shall be in effect.

CHAPTER 13:	DISCIPLINARY PROCEDURES

13.8	An investigation performed by staff within the Colorado Division of Real Estate or an appraiser selected by the Colorado Division of Real Estate to perform an investigation is not considered an “Appraisal Review” as defined by USPAP. An appraiser performing an investigation in accordance with this rule shall not be required to perform a USPAP Standard 3 appraisal review.

13.9	A licensee shall respond in writing to any correspondence from the board requiring a response. The written response shall be submitted within the time period provided by the board. The board shall send such correspondence to the licensee’s address of record with the board. Failure to submit a timely written response shall be grounds for disciplinary action.