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

EMERGENCY RULE

Chapter 17:  LICENSING REQUIREMENTS FOR APPRAISAL MANAGEMENT COMPANIES

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 17 Licensing requirements for appraisal management companies
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.  As a result, it is imperative that the Board of Real Estate Appraisers revise the existing rules to correctly identify the applicable statutes.  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.

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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 17:	LICENSING REQUIREMENTS FOR APPRAISAL MANAGEMENT COMPANIES

17.2	Pursuant to section 12-61-707, C.R.S. an applicant for an appraisal management company’s or a controlling appraiser’s license who has been convicted of, entered a plea of guilty to, or entered a plea of nolo contendere to a misdemeanor or a felony, or any other like municipal code violation, shall, with his or her application, include 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.

17.11	When an application for licensure as an appraisal management company is submitted, the controlling appraiser must certify the following:
	A.	If the appraisal management company is a corporation, that the corporation complies with section 12-61-707(8)(c), C.R.S. and that the controlling appraiser has been authorized by the corporation as the controlling appraiser for the corporation.
	B.	If the appraisal management company is a partnership, that the partnership complies with section 12-61-707(8)(a), C.R.S. and that the controlling appraiser has been authorized by the partnership as the controlling appraiser for the partnership.
	C.	If the appraisal management company is a limited liability company, that the company complies with section 12-61-707(8)(b), C.R.S. and that the controlling appraiser has been authorized by the company as the controlling appraiser for the limited liability company.

17.14	Applicants for licensure, activation, renewal or reinstatement as an appraisal management company shall certify compliance with section 12-61-709, C.R.S. in a manner prescribed by the Board. The surety bond must:
	A.	Be for a minimum of $ 25,000.00;
	B.	Be in conformance with all relevant Colorado statutory requirements; and
	C.	Cover acts contemplated for appraisal management companies under part 7 of article 61 of title 12 during the period of licensure by the appraisal management company.
	Any licensed appraisal management company that certifies compliance and fails to maintain a surety bond, or to provide proof of continuous coverage, shall be placed on inactive status:
	A.	Immediately if a current surety bond is not provided to the Board; or
	B.	Immediately upon the expiration of any current surety bond when certification of continued coverage is not provided.

17.15	An appraisal management company or controlling appraiser whose license has been placed on inactive status must:
	A.	Cease any activities requiring a license.
	B.	Cease all advertising of licensed services.
	C.	If an appraisal management company, inform all clients of the company’s license status and inability to provide any services requiring a license.
	D.	If an appraisal management company, ensure that all appraisal fees collected from the client(s) have been accounted for and dispersed pursuant to section 12-61-714(1)(h), C.R.S.
	E.	If an appraisal management company, fees for services requiring a license can be collected for licensed services performed prior to inactivation of the license.

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Section 5.	Effective Date

This emergency rule is effective July 1, 2014.