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

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
November 3, 2016

CHAPTER 7:	CONTINUING EDUCATION REQUIREMENTS

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 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 as amended.

SPECIFIC PURPOSE OF THIS RULEMAKING

The purpose of this rule is to modify or repeal the requirements necessary for continuing education for real estate appraisers.

Proposed New, Amended and Repealed Rules

Deleted material is showed by struck through; new material is indicated by Small Caps or underline. 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.colorado.gov/dre.

CHAPTER 7:	CONTINUING EDUCATION REQUIREMENTS

7.1	For initial licenses issued on or after July 1 of any year, there shall will be no continuing education requirement as a condition of renewal of such initial license that expires December 31 of the year of issue issuance as defined in Board Rule 1.8. For initial licenses issued before July 1 of any year, there shall will be an obligation to complete fourteen (14) hours of continuing education as a condition of renewal before the initial license expires on December 31 of the year of issue issuance as defined in Board Rule 1.8. Continuing education requirements established by this Chapter 7 of these Rules shall will apply to all other license renewals.

7.2	Except as provided under Board Rule 7.1, each applicant licensee applying for renewal of a license shall must complete forty-two (42) hours of real estate appraisal continuing education during the three-year period preceding expiration of the license. All licensees renewing on a two-year cycle shall must complete twenty-eight (28) hours of real estate appraisal continuing education during the two-year period preceding expiration of the license. All licensees renewing a license at the end of a three-year or a two-year licensing period shall must complete the National Uniform Standards of Professional Appraisal Practice USPAP Update Courses set forth in Board Rule 7.19. Continuing education requirements must be completed after the effective date of the license to be renewed and prior to the expiration of such license. Upon written request and receipt of the supporting documentation established by the Board, the Board may grant a deferral for continuing education compliance for licensees returning from active military duty. Credential holders Licensees returning from active military duty may be placed on active status for up to ninety (90) days pending completion of all continuing education requirements established pursuant to Chapter 7 of these Rules.

7.3	Continuing real estate appraisal education shall must be taken from providers approved by the Board. In order to be approved by the Board, continuing education shall must meet the following standards:

A.	It shall must have been developed by persons qualified in the subject matter and instructional design;

B.	It shall must be current;

C.	The instructor shall must be qualified with respect to content and teaching methods; and

D.	The number of participants and the physical facilities are consistent with the teaching method(s).

The Board, at its discretion, may require an evaluation in a manner determined by the Board of an educational offering to ensure compliance with the above standards. By offering real estate appraisal continuing education in Colorado, each provider agrees to comply with relevant statutes and Board rules Rules and to permit Board audit of said courses at any time and at no cost. If the Board determines that the offering fails to comply with the standards set above, the Board will notify the provider of such deficiency and work with the provider to correct such deficiency prior to the next class offering. If such deficiency is not corrected, then the Board may withdraw approval of the provider, instructor and/or the class.

7.4	The following may be approved as providers of continuing appraisal education provided the standards set forth in Board Rule 7.3 are maintained and provided they have complied with all other requirements of the State state of Colorado:

A.	Universities, colleges, junior colleges or community colleges accredited by a regional accrediting body accredited by the Council on Post Secondary Accreditation Accredited colleges, junior colleges, community colleges or universities as defined in Board Rule 1.30;

B.	Professional appraisal and real estate related organizations; 

C.	State or federal government agencies;

D.	Proprietary schools holding valid certificates of approval from the Colorado Division of Private Occupational Schools, Department of Higher Education;

E.	Continuing education completed in other jurisdictions, providers approved by such other jurisdiction, provided that the jurisdiction’s appraiser regulation program has been determined to be in compliance with Title XI, FIRREA;

F.	The providers of continuing education approved under the Course Approval Program of The Appraisal Foundation CAP as defined in Board Rule 1.39; and

G.	Such oOther providers as the Board may approve upon petition of the education provider or the applicant in a form acceptable to the Board.

7.5	Continuing education providers shall must, at their own expense, maintain for a period of five (5) years from the last course offering, and provide to the Board on request, information regarding the educational offerings including, but not limited to the following:

A.	Outline or syllabus;

B.	All texts, workbooks, handouts or other materials;

C.	Instructors and their qualifications, including selection, training and evaluation criteria;

D.	Examinations (if any);

E.	Dates and locations of offerings; and

F.	Student attendance records;
 
7.6	Continuing appraisal education shall must be at least two (2) class hours in duration including examination time (if any). Continuing appraisal education programs and courses are intended to maintain and improve the appraiser’s skill, knowledge, and competency. Continuing appraisal education courses and programs may include, without limitation, these real estate and real estate appraisal topics:

A.	Ad valorem taxation;

B.	Arbitration, dispute resolution;

C.	Courses related to the practice of real estate appraisal or consulting;

D.	Development cost estimating;

E.	Ethics and standards of professional practice, USPAP;

F.	Land use planning, zoning;

G.	Management, leasing, timesharing;

H.	Property development, partial interests;

I.	Real estate law, easements, and legal interests;

J.	Real estate litigation, damages, condemnation;

K.	Real estate financing and investment;

L.	Real estate appraisal related computer applications;

M.	Real estate securities and syndication;

N.	Developing opinions of real property value in appraisals that also include personal property and/or business value;

O.	Seller concessions and impact on value;

P.	Energy efficient items and “green building” appraisals; and/or

Q.	Such other Other topics as the Board may approve, upon its own motion or upon petition by the course provider or the licensee in a form acceptable to the Board.

7.7	The Board will award continuing education credit to credentialed appraisers who attend a Colorado Board of Real Estate Appraiser board’s public meeting, under the following conditions: 

A.	Credit will be awarded for a single Board meeting per license cycle; and

B.	The meeting must be open to the public and must be a minimum of two (2) hours in length. The total credit cannot exceed seven (7) hours.

7.8	The Board may consider alternatives to continuing real estate appraisal education such as teaching, authorship of textbooks or articles, educational programs developments or similar activities for up to one-half of the required continuing education. Licensees desiring continuing education credit for alternative activities must petition the Board for approval in writing and prior to commencement of the alternative activity.
 
7.9	The act of applying for renewal or reinstatement shall constitutes a statement under penalty of perjury in the second degree that the licensee had the present intent of affirmatively stating the licensee had has complied with the continuing education requirements of  the Colorado Real Estate Appraiser Licensing Act  statutes and Board Rules. The Board reserves the right to require a renewal applicant or licensee to provide satisfactory documentary evidence of completion of continuing appraisal education requirements. The Board may at its option require such submission as part of the renewal process or subsequent to renewal.

7.10	With the exception of the 7-hour National USPAP Update Course(s), or its equivalent, required pursuant to Board Rule 7.19, applicants for renewal of a license licensees may complete the required hours of continuing real estate appraisal education at any time during the licensing period preceding expiration.

7.11	An appraiser may repeat courses or programs previously completed, subject to the limitation that no course or program may be repeated more frequently than once every continuing education cycle, which is the same as the appraiser’s license cycle. Education in the Uniform Standards of Professional Appraisal Practice USPAP, or its AQB-approved equivalent, is not subject to this limitation.

7.12	Continuing real estate appraisal education shall must be successfully completed by the holder of the license to be renewed licensee. Successful completion means attendance at the offering and participation in class activities. Successful completion of courses undertaken through distance education requires compliance with the provisions of Board Rule 7.14. Teaching of continuing real estate appraisal education shall will constitute successful completion, ; however, credit shall will be given for only one (1) presentation of a particular offering during each renewal licensing period.

7.13	The number of hours credited shall will be equivalent to the actual number of contact hours of in-class instruction and testing. An hour of appraisal education and training is defined as at least fifty (50) minutes of instruction out of each 60-minute segment. For distance education offerings, the number of hours credited shall must be that number of hours allowed by the Course Approval Program of The Appraisal Foundation CAP as defined in Board Rule 1.39.

7.14	Distance education offerings shall must include methods and activities which promote active student engagement and participation in the learning process. Among those methods and activities acceptable are written exercises which are graded and returned to the student, required responses in computer based presentations, provision for students to submit questions during teleconferences, and examinations proctored by an independent third party. Simple reading, viewing, or listening to materials is not sufficient engagement in the learning process to satisfy the requirements of this rule Board Rule 7.14.

7.15	As to continuing education completed in other jurisdictions with appraiser regulatory programs established in conformance with Title XI, FIRREA, the Board shall will accept the number of hours of continuing education accepted by that jurisdiction.

7.18	Continuing education content must have a clear application to real estate appraisal practice. Motivational courses, personal growth, or self-improvement courses, general business courses and general computing courses are unacceptable to satisfy the continuing education requirements established by these rules Rules.
 
7.19	All licensees shall must successfully complete a 7-hour National USPAP Update Course, or its equivalent, every two (2) calendar years. Such 7-hour National USPAP Update Course shall must be in the form of a course approved by the Appraiser Qualifications Board AQB of The Appraisal Foundation, and taught by an instructor certified by the Appraiser Qualifications Board AQB of The Appraisal Foundation and who is also a state certified appraiser. Equivalency shall will be determined through the Appraiser Qualifications Board Course Approval Program CAP or by an alternate method established by the Appraiser Qualifications Board AQB.

7.20	A licensee who is a resident of a jurisdiction other than the State state of Colorado that imposes continuing education requirements consistent with the criteria promulgated by the AQB may comply with the continuing education requirements of this Chapter 7 of these Rules by documenting, in a manner prescribed by at the request of the Board, compliance with the continuing education requirements of their jurisdiction of residence. In the event the jurisdiction of residence does not impose continuing education requirements consistent with the criteria promulgated by the Appraiser Qualifications Board AQB of The Appraisal Foundation, the licensee shall must comply with the continuing education requirements established by this Chapter 7 of these Rules.

7.21	A licensee who renews a license subject to a continuing education requirement shall must 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.

7.22	Course providers shall must provide each student who successfully completes a continuing education course in the manner prescribed in Board Rule 7.12 a course completion certificate. The Board will not mandate the exact form of course certificates, ; however, the following information shall must be included:

A.	Name of course provider;

B.	Course title, which shall must describe topical content; 

C.	Course number, if any;

D.	Course dates;

E.	Number of continuing education hours;

F.	Statement that the required examination was successfully completed, if an examination is a regular part of the course;

G.	Course location, which for distance education modalities shall must be the principal place of business of the course provider;

H.	Name of student; and

I.	For Uniform Standards of Professional Appraisal Practice USPAP courses begun on and after January 1, 2003, the name and Appraiser Qualifications Board AQB Uniform Standards of Professional Appraisal Practice USPAP instructor certification number of the instructor.

7.23	The provisions of Board Rule 7.4 notwithstanding, real estate appraisal continuing education offered through distance education must be approved through the Course Approval Program of The Appraisal Foundation CAP, unless the provider is a government agency that has sought an exemption from the Board.
 
7.24	AQB certified USPAP instructors successfully completing the Instructor Recertification Course and exam, if required, within the current continuing education cycle, have satisfied the 7-Hour National USPAP Update Course continuing education requirement if equivalency has been determined by the AQB Course Approval Program CAP or by an alternative method established by the AQB. If two 7-Hour National USPAP Update Courses are required during the current continuing education cycle, the AQB certified USPAP instructor must successfully complete one of the following:

A.	Two Instructor Recertification Courses and exams, if required, within the current continuing education cycle to have satisfied the 7-Hour National USPAP Update Course requirements for the license cycle; or

B.	One Instructor Recertification Course and exam, if required, within the current continuing education cycle to have satisfied the requirement of one 7-Hour National USPAP Update Course and teach the 7-Hour National Update Course within the current continuing education license cycle; or

C.	One Instructor Recertification Course, and exam, if required, within the current continuing education cycle to have satisfied the requirement of one 7-Hour National USPAP Update Course and complete one 7-Hour National USPAP Update course, or its equivalent. Repealed.

7.25	All licensees who prepare and sign an appraisal for a conservation easement for which a tax credit may be claimed pursuant to Section section 39-22-522, C.R.S. must complete the “Conservation Easement Appraiser Update Course.” The content of the “Conservation Easement Appraiser Update Course” will be developed by the Board of Real Estate Appraisers and presented by a provider approved by the Board of Real Estate Appraisers. The certificate of course completion must be obtained and dated prior to the effective date of an appraisal for a conservation easement for which a tax credit may be claimed. The certificate of course completion satisfies the requirements of this Board Rule 7.25 rule and is valid from the completion date on the certificate through December 31 of the following calendar year. This Board Rule rule7.25 will be effective for an appraisal of a conservation easement with an effective date on or after January 1, 2017.

7.26	Upon written notification from the Board, licensees must provide copies of course certificates to the Board. Failure to provide copies of course certificates within the time set by the Board in its notification will be grounds for disciplinary action unless the Board has granted an extension of time for providing the certificates.

A hearing on the above subject matter will be held on Thursday, November 3, 2016, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250-C, 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.