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

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
September 3, 2015

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 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 Part 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 establish the fitness standards that an applicant for licensure must demonstrate to the Board.
 
Proposed New, Amended and Repealed Rules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 6:	APPLICATION FOR LICENSURE

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.
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.	Individual policies must, at a minimum, comply with the following conditions and the insurance carrier must certify compliance in an affidavit issued to the insured licensee or applicant in a form specified by the Board.  The insurance carrier agrees to immediately notify the Board of any cancellation or lapse in coverage.  Independent individual coverage must provide, at a minimum, the following:
K.  Prior acts coverage shall be offered to liensees LICENSEES with continuous past coverage.

6.11  PURSUANT TO 12-61-706(6)(A), C.R.S., THE BOARD MUST ESTABLISH THE FITNESS STANDARDS THAT AN APPLICANT FOR A LICENSE OR CERTIFICATION MUST DEMONSTRATE.  THEREFORE, AN APPLICANT MUST DEMONSTRATE THAT HE OR SHE DOES NOT POSSESS A BACKGROUND THAT COULD CALL INTO QUESTION THE PUBLIC TRUST.  SOME OF THE CRITERIA THAT THE BOARD MAY EVALUATE IN DETERMINING WHETHER THE PUBLIC TRUST MAY BE CALLED INTO QUESTION ARE:
1.	WHETHER THE APPLICANT HAS PREVIOUSLY HAD AN APPRAISER CREDENTIAL REVOKED;
2.	WHETHER THE APPLICANT HAS PREVIOUSLY HAD A PROFESSIONAL LICENSE DISCIPLINED IN ANY JURISDICTION;
3.	WHETHER THE APPLICANT HAS BEEN CONVICTED OF, OR PLED GUILTY OR NOLO CONTENDERE TO, A CRIME; OR
4.	WHETHER THE APPLICANT HAS FAILED TO DEMONSTRATE THAT HE OR SHE POSSESSES THE CHARACTER NECESSARY TO COMMAND THE CONFIDENCE OF THE COMMUNITY AND TO WARRANT A DETERMINATION THAT THE APPLICANT WILL OPERATE HONESTLY, FAIRLY AND EFFICIENTLY WITHIN THE SCOPE AND PURPOSE OF REAL PROPERTY APPRAISAL PRACTICE.
THE 2015 REAL PROPERTY APPRAISER QUALIFICATION CRITERIA ADOPTED BY THE APPRAISAL QUALIFICATIONS BOARD OF THE APPRAISAL FOUNDATION ON DECEMBER 9, 2011, WITH AN EFFECTIVE DATE OF JANUARY 1, 2017 FOR CRIMINAL BACKGROUND CHECKS, AS INCORPORATED BY REFERENCE IN RULE 1.32, PROHIBITS AN APPLICANT FROM BEING ELIGIBLE FOR A CREDENTIAL IF THE APPLICANT, DURING AT LEAST THE FIVE (5) YEAR PERIOD PRECEDING THE DATE OF APPLICATION, HAS BEEN CONVICTED OF, OR PLED GUILTY OR NOLO CONTENDERE TO A CRIME THAT WOULD CALL INTO QUESTION THE APPLICANT’S FITNESS FOR LICENSURE.  24-5-101(2), C.R.S REQUIRES THAT THE BOARD ALSO CONSIDER WHETHER THE APPLICANT HAS BEEN REHABILITATED AND IS “READY TO ACCEPT THE RESPONSIBILITIES OF A LAW-ABIDING AND PRODUCTIVE MEMBER OF SOCIETY.”  

A hearing on the above subject matter will be held on Thursday, September 3, 2015, 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.