PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of section 1102.4 of Title 19 NYCRR.
Statutory authority:
Executive Law, art. 6-E, section 160-d
Subject:
Experience requirements.
Purpose:
Clarify maximum hours of experience through review appraisals.
Text of proposed rule:
19 NYCRR 1102.4 is amended as follows:
(a) An applicant shall have the burden of establishing to the satisfaction of the Department of State that the applicant actually performed the work associated with the appraisal or appraisals which the applicant claims appraisal-experience credit. Experience credit will only be granted for hours actually worked on an appraisal assignment provided that no applicant shall be permitted to claim experience hours in excess of the maximum hours per assignment as provided for by section 1102.3 of this Part.
(b) For review appraisals, an applicant shall receive 25 percent of the hours normally credited for an appraisal if the applicant performed a review appraisal, which shall include a field review, a documentary review, or a combination of both. However, experience gained by performing review appraisals may not exceed 25 percent of the total number of hours of experience required for licensing or certification.
Text of proposed rule and any required statements and analyses may be obtained from:
David Mossberg, NYS Dept. of State, 123 William St., 20th Fl., New York, NY 10038, (212) 417-2063, email: david.mossberg@dos.ny.gov
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
This rule was not under consideration at the time this agency submitted its Regulatory Agenda for publication in the Register.
Regulatory Impact Statement
1. Statutory authority:
Executive Law section 160-d (Art. 6-E) authorizes the New York State Board of Real Estate Appraisal (the “Board”) to adopt regulations in aid or furtherance of the statute. One of the purposes of Executive Law Article 6-E is to ensure the qualification of licensed and certified real estate appraisers. To meet this purpose, the Department of State (the “Department”), in conjunction with the Board, has issued rules and regulations which are found at Chapter XXXI of Title 19 of the NYCRR and is proposing this rulemaking.
2. Legislative objectives:
Pursuant to Executive Law Article 6-E, the Department, in conjunction with the Board, licenses and regulates real estate appraisers. To provide protections against unqualified appraisers, the statute requires licensees and certificate holders to satisfy minimum experience requirements. The proposed rule advances this legislative objective by ensuring that appraiser applicants satisfy the minimum experience standards required for licensure or certification.
3. Needs and benefits:
This rule is needed to ensure that appraisers seeking certification satisfy minimum hours of experience by clarifying the total number of hours that may be received for review appraisals. The Department believes that re-adopting this rule will provide additional clarity to applicants regarding the minimum hours of experience for certification.
4. Costs:
a. Costs to regulated parties:
The Department does not anticipate that regulated parties will have any additional costs associated with this rulemaking.
b. Costs to the Department of State:
The Department does not anticipate any additional costs to implement the rule. Existing staff will handle the processing of applications for both individual applicants and occupational schools seeking course approvals.
5. Local government mandates:
The rule does not impose any program, service, duty or responsibility upon any county, city, town, village, school district or other special district.
6. Paperwork:
In applying for an appraisal license or certification, applicants are required to complete an application establishing that they have satisfied the minimum standards required by statute for the relevant license or certification. The proposed rule would retain this existing requirement.
7. Duplication:
This rule does not duplicate, overlap or conflict with any other state or federal requirement.
8. Alternatives:
The Department considered not proposing the instant rulemaking. It was determined, however, that the proposed regulatory amendments would benefit the regulated industry by providing greater clarity as to the requirements for certification.
9. Federal standards:
The Federal Appraisal Qualifications Board (the “AQB”), in accordance with the authority granted to said body pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Title XI), establishes minimum qualification standards for real property appraisers. States are required to implement appraiser standards that are no less stringent than those issued by the AQB.
10. Compliance schedule:
The rule will be effective upon filing the Notice of Adoption.
Regulatory Flexibility Analysis
1. Effect of rule:
To provide protections against unqualified appraisers, Article 6-E of the Executive Law requires licensees and certificate holders to satisfy minimum experiential and other requirements. The proposed rule advances this legislative objective by clarifying the minimum standards required for licensure or certification. Specifically, the rule reinstates a prior rule and clarifies that appraisers seeking certification shall be entitled to a maximum of 25 percent of the credit hours for a review appraisal assignment. Further, review appraisals may not exceed 25 percent of the total number of hours of experience required for licensing or certification.
The rule does not apply to local governments.
2. Compliance requirements:
Insomuch as the proposed rulemaking applies only to individuals seeking licensure and/or certification, small businesses and local governments will not have additional reporting, recordkeeping or other affirmative obligations with the implementation of these regulations. The existing statutes and regulations already require minimum standards for licensure.
3. Professional services:
Small businesses and local governments will not need professional services to comply with this rule. Further, applicants seeking certification will not need to rely on any new professional services in order to comply with the rule. Applicants and licensees are already required to satisfy minimum qualifications.
4. Compliance costs:
The Department does not anticipate additional costs to appraiser applicants and/or licensees as a result of this rulemaking.
The rule does not impose any compliance costs on local governments.
5. Economic and technological feasibility:
Small businesses and local governments will not incur any significant costs as a result of the implementation of, or require technical expertise to comply with, these rules.
6. Minimizing adverse impact:
The Department did not identify any alternatives which would achieve the results of the proposed rules and at the same time be less restrictive and less burdensome in terms of compliance. The rule does not impose any additional reporting or record keeping requirements on licensees and does not require prospective licensees to take any affirmative acts to comply with the rule other than those acts that are already required by the Executive Law.
7. Small business and local government participation:
No significant comments have been received regarding the proposed rulemaking. At an open meeting on August 7, 2015, the Department and the New York State Board of Real Estate Appraisal discussed re-adopting this requirement which was inadvertently removed following amendments to the NYCRR made last year. In addition, the Notice of Proposed Rule Making will be published by the Department of State in the State Register. The publication of the rule in the State Register will provide notice to interested parties of the proposed rulemaking. Additional comments will be received and entertained during that comment period.
8. Compliance:
The rule will be effective upon filing a Notice of Adoption.
9. Cure period:
The Department is not providing for a cure period prior to enforcement of these regulations. Information regarding this rulemaking was discussed at a public meeting of the Department and the New York State Board of Real Estate Appraisal; accordingly the public has adequate notice of this rule. Further, notwithstanding that this rule was inadvertently removed following amendments to the NYCRR made last year, the Department has maintained a 25 percent requirement under its other powers pursuant to the Executive Law, and as such, a cure period is not necessary.
Rural Area Flexibility Analysis
1. Types and estimated numbers of rural areas:
The rule will apply to all licensed and certified appraisers operating in the State of New York in rural and urban areas.
2. Reporting, recordkeeping and other compliance requirements; and professional services:
The Department does not anticipate any additional reporting, recordkeeping or other compliance requirements of this rule or that professional services are likely to be needed in rural areas to comply with the rule. Existing statutes and regulations already require minimum experience requirements for licensure, the rulemaking will not impose any new reporting, record-keeping or other compliance requirements on public or private entities in rural areas other than those acts that are already required pursuant to Executive Law, Article 6-E.
3. Costs:
The proposed rulemaking does not impose any costs on rural areas to comply with this rule.
4. Minimizing adverse impact:
The Department did not identify any alternatives which would achieve the results of the proposed rule and at the same time be less restrictive and less burdensome.
5. Rural area participation:
No significant comments have been received regarding the proposed rulemaking. At an open meeting on August 7, 2015, the Department and the New York State Board of Real Estate Appraisal discussed re-adopting this requirement which was inadvertently removed following amendments to the NYCRR made last year. In addition, the Notice of Proposed Rule Making will be published by the Department of State in the State Register. The publication of the rule in the State Register will provide notice to interested parties in rural areas of the proposed rulemaking. Additional comments will be received and entertained during that comment period.
Job Impact Statement
1. Nature of impact:
The proposed rulemaking re-adopts a former rule which was inadvertently removed following amendments to the NYCRR made last year. The Department has, through its other powers pursuant to the New York Executive Law, maintained the requirements proposed by this rulemaking. Accordingly, the proposed rulemaking will not have an adverse impact on employment opportunities as those impacted by this rule are already complying with the same.
2. Categories and numbers affected:
The proposed rulemaking will not have any adverse impact on employment opportunities.
3. Regions of adverse impact:
The proposed rulemaking will not have any disproportionate regional adverse impact on jobs or employment opportunities.
4. Minimizing adverse impact:
The proposed rulemaking will not have any adverse impact on employment opportunities.
