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

EMERGENCY RULE

Chapter 6:  	APPLICATION FOR LICENSURE

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.

Section 1.	Statement of Basis and Authority
Section 2. 	Scope and Purpose
Section 3.	Applicability
Section 4. 	Chapter 6 Application for licensure
Section 5. 	Effective Date

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.  

Section 2.	Scope and Purpose

The Colorado Board of Real Estate Appraisers finds that immediate adoption of this emergency rule is imperatively necessary to comply with state law (§12-61-701, C.R.S., et seq.  the real estate appraiser practice act) 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.

As a result of the passage of SB14-117, the real estate appraiser practice act statutes have been renumbered.  Existing rules now contain inaccurate statute references, which may cause confusion within the industry and result in noncompliance with rules and regulations.  Additionally, references to truthfulness, honesty and good moral character have been deleted from the act.  SB14-117 requires that applicants for a license meet the fitness requirements as established by board rule.  Applicants seeking licensure on and after July 1, 2014 will need to demonstrate compliance with the standards established in rule.  As a result, it is imperative that the Board of Real Estate Appraisers revise the existing rules to correctly identify the applicable statutes and modify existing rules regarding prior criminal involvement.  The changes in the law go into effect on July 1, 2014.  

The purpose of this emergency rule is to ensure compliance with Section 12-61-701, C.R.S., et. seq. The purpose of this emergency rule is also to effectuate the legislative directive to promulgate necessary and appropriate rules for the implementation of part 7 of Title 12, Article 61.

The specific purpose of the emergency rules is to amend the existing rules of the obsolete statute references and references to truthfulness, honesty and good moral character.
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Without the immediate adoption of the emergency rules, 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 these emergency rules.

Section 3.	Applicability

The emergency rules govern real estate appraisers who are subject to the requirements of Part 7 of Title 12, Article 61 of the Colorado Revised Statutes.

Section 4.	Chapter 6:	APPLICATION FOR LICENSURE

6.6	Submission of an application does not guarantee issuance of a license, or issuance of a license within a specific period of time. Applicants shall observe the provisions of Section 12-61-714719, C.R.S. and Board Rules Chapter 12. Applicants shall not represent themselves as being licensees of the Board until receipt of the Board issued license document.

6.7	Pursuant to Section 12-61-712(1), C.R.S., an applicant who has been convicted of, entered a plea of guilty to, or entered a plea of nolo contendere to a crime, shall file with his or her application an addendum to the application in a form prescribed by the Board. Such addendum shall be supported and documented by, without limitation, the following:
	A.	Court documents, including original charges, disposition, pre-sentencing report and certification of completion of terms of sentence;
	B.	Police officer’s report(s);
	C.	Probation or parole officer’s report(s);
	D.	A written personal statement explaining the circumstances surrounding each violation, and including the statement “I have no other violations either past or pending”;
	E.	Letters of recommendation; and
	F.	Employment history for the preceding five years.

6.8	Prior to application for licensure, an individual may request that the Board issue a preliminary advisory opinion regarding the possible effect of convictions, pleas of guilt or nolo contendere for criminal offenses. A person requesting such an opinion is not applicant for licensure. The Board may, at its sole discretion, issue such an opinion, which shall not be binding on the Board or limit the authority of the Board to investigate a later application for licensure. The issuance of such an opinion shall not prohibit a person from submitting an application for licensure. A person requesting such an opinion shall do so in a request form prescribed by the Board. Such request form shall be supported and documented by, without limitation, the following:
	A.	Court documents, including original charges, disposition, pre-sentencing report and certification of completion of terms of sentence;
	B.	Police officer’s report(s);
	C.	Probation or parole officer’s report(s);
	D.	A written personal statement explaining the circumstances surrounding each violation, and including the statement “I have no other violations either past or pending”;
	E.	Letters of recommendation; and
	F.  Employment history for the preceding five years.

6.10	Every active appraiser, or applicant for an active appraiser’s credential, must have in effect a policy of errors and omissions insurance to cover all acts requiring a license.
	A.	The Division will enter into a contract with a qualified insurance carrier to make available to all licensees and license applicants a group policy of insurance under the following terms and conditions:
	1.	The insurance carrier is licensed and authorized by the Colorado Division of Insurance to write policies of errors and omissions insurance in this state.
	2.	The insurance carrier maintains an A.M. best rating of “B” or better.
	3.	The insurance carrier will collect premiums, maintain records and report names of those insured and a record of claims to the Board on a timely basis and at no expense to the Board.
	4.	The insurance carrier has been selected through a competitive bidding process.
	5.	The contract and policy are in conformance with this rule and all relevant Colorado statutory requirements.
	B.	The group policy shall provide, at a minimum, the following terms of coverage:
	1.	Coverage for all acts for which a real estate appraiser’s license is required, except those illegal, fraudulent, or other acts which are normally excluded from such coverage.
	2.	That the coverage cannot be canceled by the insurance carrier except for nonpayment of the premium or in the event a licensee becomes inactive, is revoked or an applicant is denied a license.
3.  Pro-ration of premiums for coverage which is purchased during the course of a calendar year but with no provision for refunds of unused premiums.
4.   Not less than $100,000 coverage per claim with an aggregate limit of not less than $300,000 per individual.
5.   A deductible amount for each occurrence of not more than $1,000 for claims and no deductible for legal expenses and defense.
6.  The obligation of the carrier to defend all covered claims and the ability of the insured licensee to select counsel of choice subject to the written permission of the carrier, which shall not be unreasonably withheld.
7.   The ability of a licensee, upon payment of an additional premium, to obtain higher or excess coverage or to purchase additional coverage from the group carrier as may be determined by the carrier.
8.  The ability of the licensee, upon payment of an additional premium to obtain an extended reporting period of not less than 365 days.
9.   A conformity endorsement allowing a Colorado resident licensee to meet the errors and omissions insurance requirement for an active license in another group mandated state without the need to purchase separate coverage in that state.
 C.   Licensees or applicants may obtain errors and omissions coverage independent of the  group plan from any insurance carrier subject to the following terms and conditions:
1.  The insurance carrier is licensed and authorized by the Colorado Division of Real Insurance to write policies of errors and omissions insurance in this state and is in conformance with all Colorado statutes.
2.  The insurance carrier maintains an A.M. best rating of “B” or better.
3.  The policy, at a minimum, complies with all relevant conditions set forth in this rule and the insurance carrier so certifies in an affidavit issued to the insured licensee or applicant in a form specified by the director and agrees to immediately notify the Division of any cancellation or lapse in coverage.  Independent coverage must provide, at a minimum, the following:
a.   The contract and policy are in conformance with all relevant Colorado statutory  requirements.
b.   Coverage includes all acts for which an appraiser’s credential is required, except those illegal, fraudulent or other acts which are normally excluded from such coverage.
c.   Coverage cannot be canceled by the insurance provider, except pursuant to and in conformance with 10-4-109.7, C.R.S.
d.   Coverage is for not less than $100,000 per claim, with an annual aggregate limit of not less than $300,000 per individual.
e.   Payment of claims by the provider shall be on a first dollar basis and the provider shall look to the insured for payment of any deductible.
f.   The ability of a licensee, upon payment of an additional premium to obtain an extended reporting period of not less than 365 days.
g.   That the provider of the independent policy has executed an affidavit in a form or manner specified by the Board attesting that the independent policy is in force and, at a minimum, complies with all relevant conditions set forth herein and that the provider will immediately notify the Board in writing of any cancellation or lapse in coverage of any policy.
D.  Applicants for licensure, activation, renewal, and reinstatement shall certify compliance with this rule and 12-61-708, C.R.S. on forms or in a manner prescribed by the Board.  Any active licensee who so certifies and fails to obtain errors and omissions coverage or to provide proof of continuous coverage, either through the group carrier or directly to the Board, shall be placed on inactive status:
1.   Immediately, if certification of current insurance coverage is not provided to the Board; or
2.  Immediately upon the expiration of any current insurance when certification of continued coverage is not provided.
	E.  Appraisers employed by a local, state or federal government entity are exempt from the errors and omissions insurance requirements.

Section 5.	Effective Date

This emergency rule is effective July 1, 2014.