VOLUME 34, NUMBER 2
TUESDAY, JANUARY 22, 2002
RULE PROPOSAL
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
NEW JERSEY STATE BOARD OF REAL ESTATE APPRAISERS
STATE BOARD OF REAL ESTATE APPRAISERS RULES

Proposed Readoption with Amendments: N.J.A.C. 13:40A

Proposed New Rules: N.J.A.C. 13:40A-7.4, 7.6, 7.7 and 7.8

Proposed Repeals: N.J.A.C. 13:40A-4.2 and 5.2

Proposed Repeals and New Rules: N.J.A.C. 13:40A-1.1, 2.3, 2.4, 2A.3, 2A.4, 3.3, 3.4, 4.3, 4.8 and 5.3

Authorized By: New Jersey State Board of Real Estate Appraisers, James Hsu, Executive Director.

Authority: N.J.S.A. 45:14F et seq., specifically 45:14F-8(n), and 45:1 et seq. Calendar Reference: See Summary below for explanation of exception to calendar requirement.

Proposal Number: PRN 2002-26.

Submit written comments by March 23, 2002 to:
James Hsu, Executive Director
New Jersey State Board of Real Estate Appraisers
124 Halsey Street
PO Box 45032
Newark, New Jersey 07101

The agency proposal follows:

Summary

Pursuant to Executive Order No. 66(1978), N.J.A.C. 13:40A is scheduled to expire on December 13, 2001. Pursuant to N.J.S.A. 52:14B-5.1, this date is extended to June 11, 2002 by the filing of this proposal. The rules in this chapter were originally promulgated in order to implement the provisions of the Real Estate Appraisers Act, N.J.S.A. 45:14F-1 et seq., which was enacted in 1991.

As required by Executive Order No. 66(1978), the State Real Estate Appraiser Board has reviewed these rules and has determined that the rules continue to be necessary, reasonable and proper for the purposes for which they were originally promulgated. However, the Board believes some amendments to the existing rules are necessary for clarification and to bring them up to date to reflect current practice requirements. This proposal has not been calendared pursuant to the requirements of N.J.A.C. 1:30-3.1 and, therefore, a 60-day comment period is provided pursuant to N.J.A.C. 1:30-3.3(a)5.

Following is a summary of all subchapters together with amendments, if applicable, and the rationale therefor:

Subchapter 1 contains the purpose, scope and relevant definitions of the chapter. N.J.A.C. 13:40A-1.1 sets forth the purpose and scope of the chapter. The Board proposes to repeal the current purpose and scope section and replace it with language that more properly addresses the actual purpose and scope. The Board proposes new N.J.A.C. 13:40A-1.1 to include that this chapter shall apply to all persons applying for licensure as licensed real estate appraisers or certification as certified residential real estate appraisers or as certified general real estate appraisers and to persons licensed or certified by the Board of Real Estate Appraisers in the State of New Jersey. N.J.A.C. 13:40A-1.2 defines important words and terms which are used throughout Chapter 40A. The Board proposes a new definition in N.J.A.C. 13:40A-1.2 which defines the "Appraisal Qualification Board (AQB)" as the independent board of the Appraisal Foundation which establishes the minimum education, experience and examination requirements real property appraisers must complete in order to obtain State certification or licensure. The Board also proposes to delete the term "apprentice" from the rules and replace it with the term "trainee" in order to be consistent with the language of the AQB. In addition, the Board proposes to add the definition of "trainee" and proposes to use the definition of "apprentice" to define this proposed new term. The Board also proposes to delete the definition of "classroom hour" because the rules proposed for readoption no longer use this term. The Board proposes to amend the definitions of "State certified general real estate appraiser," "State certified residential real estate appraiser" and "State licensed real estate appraiser" by deleting the reference to a Board-sponsored examination and replacing it with a reference to an examination that is approved by the Board. This amendment is necessary for accuracy since the Board does not sponsor, but rather approves, such examinations.

Throughout subchapters 2, 2A and 3, the Board proposes to delete the educational and experiential requirements outlined in the rules for licensed real estate appraisers and certified general and certified residential real estate appraisers. The Board is proposing to replace this with a provision that directs each licensee or certificate holder to the educational and experiential requirements established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation. Since the Board's current rules mirror the AQB's standards, the Board is proposing this provision to avoid having to amend its rules every time the AQB amends its regulations.

Also throughout the rules, the Board is proposing to amend the eligibility requirements licensed real estate appraisers and certified general and certified residential real estate appraisers must meet in order to sit for an examination. In addition to the specific eligibility requirements an applicant must meet in order to sit for an examination, such as requiring that each applicant be at least 18 years of age, be of good moral character, have a high school diploma and meet the specified educational and experience requirements, the Board is proposing language indicating that applicants must undergo a criminal history background check. This proposed amendment is necessitated by statutory changes at N.J.S.A. 45:14F-10.2.

Subchapter 2 governs the eligibility for admission to the examination and educational and experience requirements for certified general real estate appraisers. The subchapter also includes requirements for the issuance of temporary visiting certificates for certified general real estate appraisers.

N.J.A.C. 13:40A-2.1 requires an applicant to successfully complete a Board- approved examination in order to be eligible for certification as a general real estate appraiser.

N.J.A.C. 13:40A-2.2 sets forth the eligibility requirements which an applicant must meet in order to sit for an examination.

N.J.A.C. 13:40A-2.3 establishes the educational requirements for certification as a general real estate appraiser.

N.J.A.C. 13:40A-2.4 sets forth the experience requirements for certification as a general real estate appraiser.

N.J.A.C. 13:40A-2.5 sets forth the requirements which a certified general real estate appraiser who is certified in another state must meet in order to receive a temporary visiting certificate. The Board may issue such a certificate upon an applicant's payment of a registration fee and submission of satisfactory proof to the Board that he or she has a current valid certificate to practice as a general real estate appraiser in another state. To avoid conflict with the AQB's standards, the Board proposes to delete the requirement that the other state's requirements be substantially equivalent to those of New Jersey. N.J.A.C. 13:40A-2.5(b) is being proposed to limit the number of properties a general real estate appraiser can appraise per temporary visiting certificate. The Board is also proposing to combine current N.J.A.C. 13:40A- 2.5(c) with N.J.A.C. 13:40A-2.5(b). The Board is proposing that an appraiser certified by another state may, within one calendar year, apply for no more than three temporary certificates, with a limit of appraising three specific properties per temporary certificate, except that the Board may waive the limitation for good cause shown by the applicant. The Board believes that proposing such a limitation is necessary in order to protect consumers from out-of-State appraisers applying for a temporary visiting certificate in order to avoid a criminal history background check. The new N.J.A.C. 13:40A-2.5(c) is being proposed to define a "Federally related transaction" as any real estate-related financial transaction which a Federal financial institutions regulatory agency engages in, contracts for, or regulates. The definition has been derived from Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, Pub. L. 101-73, 12 U.S.C. 3350, which also defines "financial institutions regulatory agency" to include the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporations, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the National Credit Union Administration. The Board is proposing this definition because the Board does not have the authority to limit the number of appraisals an out-of-State appraiser can perform when the property to be appraised involves a Federally related transaction. N.J.A.C. 13:40A-2.5(d) establishes that as a condition of receiving a temporary visiting certificate, an applicant must consent to service of process within the State.

Subchapter 2A governs the eligibility for admission to the examination and educational and experience requirements for certified residential real estate appraisers. The subchapter also includes requirements for the issuance of temporary visiting certificates for certified residential real estate appraisers.

N.J.A.C. 13:40A-2A.1 requires an applicant to successfully complete a Board-approved examination in order to be eligible for certification as a residential real estate appraiser.

N.J.A.C. 13:40A-2A.2 sets forth the eligibility requirements which an applicant must meet in order to sit for an examination.

N.J.A.C. 13:40A-2A.3 establishes the educational requirements for certification as a residential real estate appraiser.

N.J.A.C. 13:40A-2A.4 sets forth the experience requirements for certification as a residential real estate appraiser.

N.J.A.C. 13:40A-2A.5 sets forth the requirements which a certified residential real estate appraiser who is certified in another state must meet to receive a temporary visiting certificate. The Board may issue such a certificate upon an applicant's payment of a registration fee and submission of satisfactory proof to the Board that he or she has a current valid certificate to practice as a residential real estate appraiser in another state. To avoid conflict with the AQB's standards, the Board proposes to delete the requirement that the other state's requirements be substantially equivalent to those of New Jersey. N.J.A.C. 13:40A-2A.5(b) is being proposed to limit the number of properties a residential real estate appraiser can appraise per temporary visiting certificate. The Board is also proposing to combine current N.J.A.C. 13:40A-2A.5(c) with N.J.A.C. 13:40A-2A.5(b). The Board is proposing that an appraiser certified by another state may, within one calendar year, apply for no more than three temporary certificates, with a limit of appraising three specific properties per temporary certificate, except that the Board may waive the limitation for good cause shown by the applicant. The Board believes that proposing such a limitation is necessary in order to protect consumers from out-of-State appraisers applying for a temporary visiting certificate in order to avoid a criminal history background check. The new N.J.A.C. 13:40A-2A.5(c) is being proposed to define a "Federally related transaction" as any real estate-related financial transaction which a Federal financial institutions regulatory agency engages in, contracts for, or regulates. The Board is proposing this definition because the Board does not have the authority to limit the number of appraisals an out-of-State appraiser can perform when the property to be appraised involves a Federally related transaction. N.J.A.C. 13:40A-2A.5(d) establishes that as a condition of receiving a temporary visiting certificate, an applicant must consent to service of process within the State.

Subchapter 3 governs the eligibility for admission to the examination and educational and experience requirements for licensed real estate appraisers. The subchapter also includes requirements for the issuance of temporary visiting licenses for licensed real estate appraisers.

N.J.A.C. 13:40A-3.1 requires an applicant to successfully complete a Board- approved examination in order to be eligible for licensure as a real estate appraiser.

N.J.A.C. 13:40A-3.2 sets forth the eligibility requirements which an applicant must meet in order to sit for an examination.

N.J.A.C. 13:40A-3.3 establishes the educational requirements for licensure as a real estate appraiser.

N.J.A.C. 13:40A-3.4 sets forth the experience requirements for licensure as a real estate appraiser.

N.J.A.C. 13:40A-3.5 is reserved.

N.J.A.C. 13:40A-3.6 sets forth the requirements which a licensed real estate appraiser who is licensed in another state must meet to receive a temporary visiting license. The Board may issue such a license upon an applicant's payment of a registration fee and submission of satisfactory proof to the Board that he or she has a current valid license to practice as a licensed real estate appraiser in another state. To avoid conflict with the AQB's standards, the Board proposes to delete the requirement that the other state's requirements be substantially equivalent to those of New Jersey. N.J.A.C. 13:40A-3.6(b) is being proposed to limit the number of properties a licensed real estate appraiser can appraise per temporary visiting license. The Board is also proposing to combine current N.J.A.C. 13:40A-3.6(c) with N.J.A.C. 13:40A-3.6(b). The Board is proposing that an appraiser certified by another state may, within one calendar year, apply for no more than three temporary licenses, with a limit of appraising three specific properties per temporary license, except that the Board may waive the limitation for good cause shown by the applicant. The Board believes that proposing such a limitation is necessary in order to protect consumers from out-of-State appraisers applying for a temporary visiting license in order to avoid a criminal history background check. The new N.J.A.C. 13:40A-3.6(c) is being proposed to define a "Federally related transaction" as any real estate-related financial transaction which a Federal financial institutions regulatory agency engages in, contracts for, or regulates. Pursuant to N.J.S.A. 45:14F-21(f), the Board is proposing this definition because the Board does not have the authority to limit the number of appraisals an out-of-State appraiser can perform when the property to be appraised involves a Federally related transaction. N.J.A.C. 13:40A-3.6(d) establishes that as a condition of receiving a temporary visiting license, an applicant must consent to service of process within the State.

Subchapter 4 pertains to the requirements for trainee permits and other responsibilities of an applicant for or participant in the real estate appraisal trainee program. The subchapter also sets forth the responsibilities of a supervising appraiser. The Board is proposing to delete the word "apprentice" throughout subchapter 4 and replace it with the word "trainee." The Board is proposing this amendment to be consistent with the AQBs terminology. N.J.A.C. 13:40A-4.1(a) defines the purpose of the subchapter, which is to establish a voluntary real estate appraiser trainee program. The Board is proposing N.J.A.C. 13:40A-4.1(b) to clarify that the trainee program is voluntary and that the successful application and compliance with the rules does not automatically grant the real estate appraiser trainee certification or licensure. The Board is proposing to repeal the general requirements for a trainee and reserve N.J.A.C. 13:40A-4.2. N.J.A.C. 13:40A-4.3 sets out the educational requirements which an applicant must meet in order to receive a trainee permit. The Board is proposing to replace the specific educational requirements with a provision that directs each applicant applying for a trainee permit to complete the educational requirements for a trainee as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation. N.J.A.C. 13:40A-4.4 states that a trainee permit shall be valid for one year. A trainee may renew the permit a maximum of three times upon application and payment of a fee. N.J.A.C. 13:40A-4.5 lists the responsibilities of a trainee. Pursuant to N.J.A.C. 13:40A-4.5(a), a trainee shall work only under the direct supervision of a supervising appraiser, who is licensed or certified by the Board and is in good standing with the Board. The Board is proposing to replace the word "supervisor" with the term "supervising appraiser." In addition, the Board is proposing that the supervising appraiser is in good standing with the Board. The trainee must inform the Board in writing of the identity of any individual who has agreed to serve as his or her supervising appraiser. If the supervising appraiser ceases to agree to perform the responsibilities of a supervising appraiser, or in the event that any individual not previously designated as a supervising appraiser agrees to supervise a trainee, the trainee must notify the Board within seven days of change. N.J.A.C. 13:40A-4.5(b) sets forth the responsibilities and duties of a trainee. These duties and responsibilities include that the trainee must maintain and submit to the Board upon application for permit renewal a log, available at all times for inspection by the Board. Trainees must also carry the permit at all times when performing appraisal assignments. In addition, in the event a supervising appraiser can no longer provide direct supervision to a trainee, the trainee must return the permit within 30 days to the Board and the Board must reissue the permit to the trainee when the trainee has obtained a new supervising appraiser.

N.J.A.C. 13:40A-4.6 sets forth the responsibilities of a supervising appraiser. For accuracy purposes, the Board has again proposed to replace the word "supervisor" with the words "supervising appraiser." N.J.A.C. 13:40A- 4.6(a) sets forth that any individual designated as a supervising appraiser must acknowledge in writing to the Board that he or she agrees to perform the responsibilities set forth in N.J.A.C. 13:40A-4.6(b). Those responsibilities include that at all times the supervising appraiser must be responsible for and provide direct supervision of the work performed by the trainee. Direct supervision means to personally review the work product of the trainee and to approve and sign each appraisal report. The supervising appraiser must also sign and put his or her license or certification number on the trainee's log. In addition, the supervising appraiser must provide the trainee with a copy of any final appraisal report in which the trainee's work product has been utilized or in which the trainee made a professional contribution. The supervising appraiser also has the responsibility of immediately notifying the Board and the trainee, in writing, in the event that he or she ceases to or is unable to perform the responsibilities of the supervising appraiser. The Board is proposing to amend this responsibility to include that the supervising appraiser must also inform his or her trainee, not only the Board, in the event that he or she ceases to or is unable to perform the responsibilities of a supervising appraiser. N.J.A.C. 13:40A-4.7 requires a real estate appraiser trainee to maintain a log of all appraisals completed by the trainee and sets forth the information a real estate trainee log must include in the performance of an appraisal assignment. The log must indicate the nature of the trainee's participation with regard to the listed subject areas. The proposed amendment requires the trainee (replacing the current "apprentice") to use log forms provided by the Board, so as to facilitate the Board's review process. N.J.A.C. 13:40A-4.8 sets forth trainee requirements for continuing education. The Board is proposing to repeal the existing rule and replace it with the continuing education requirements established by the AQB.

Subchapter 5 pertains to the continuing professional education of all real estate appraisers. The Board is proposing to amend N.J.A.C. 13:40A-5.1 to require that a licensed, certified general or certified residential real estate appraiser must confirm on the renewal application that he or she has completed all continuing education requirements during the biennial period preceding application for renewal. The Board is proposing this amendment to accurately describe the process in which the Board reviews each licensee or certificate holder's continuing education requirements upon renewal. N.J.A.C. 13:40A-5.2 contains continuing education requirements applicable prior to January 1, 1998. The Board proposes to repeal the section because the provisions are now obsolete. N.J.A.C. 13:40A-5.3 sets forth the continuing education requirements effective January 1, 1998. The Board is proposing to repeal the requirements of this section and replace them with the continuing education requirements established by the AQB. Since N.J.A.C. 13:40A-5.4(a) applies to continuing education requirements prior to January 1, 1998, the Board is proposing to delete this section because it is obsolete. The Board is proposing to amend N.J.A.C. 13:40A-5.4(b) to require that all licensed and certified real estate appraisers attend a minimum seven-hour length course on USPAP every two years instead of requiring licensees or certificate holders to attend a minimum 15-hour length course and pass an examination on USPAP every other biennial period. The Board is proposing this amendment to be consistent with the standards of the AQB. N.J.A.C. 13:40A-5.5 establishes the Board's procedures for pre-approval of course offerings. N.J.A.C. 13:40A-5.5(a) states that the Board shall maintain a list of all approved courses, lectures and programs. N.J.A.C. 13:40A-5.5(b) establishes that an applicant who wants to take a non-approved course must submit information similar to that required to be supplied by course providers in N.J.A.C. 13:40A-5.9. Pursuant to N.J.A.C. 13:40A-5.5(c), the Board has the discretion to award credit for the course offering and, as amended, to determine whether the offering is deemed to be consistent with the purpose of continuing education. N.J.A.C. 13:40A-5.6 lists topics deemed by the Board to be acceptable for continuing education. This list is not all inclusive. The Board requires that such courses and programs be available and advertised in a reasonably nondiscriminatory manner. N.J.A.C. 13:40A-5.7 lists the sources of continuing education which the Board will recognize. They include training programs offered by State or Federal agencies or commissions, colleges, universities, community or junior colleges accredited by the New Jersey Commission on Higher Education (formerly the New Jersey Department of Higher Education), seminars offered by real estate appraisal or related organizations, educational programs provided during trade organization conferences, courses approved for initial certification and licensing, seminars offered by vendors of commercial products, provided that at least one other commercial vendor from a different company participates in the seminar, or participation, other than as a student, in appraisal education processes and programs, as approved by the Board. The Board is proposing to delete the reference to 10 hours in N.J.A.C. 13:40A-5.7(a)6ii concerning the maximum per biennial renewal cycle that may be awarded for activities under paragraph (b)6 and replace it with language of not more than one-half of the total hours of credits required so that if the required hours increase, the section would not have to be amended and the requirement would still be not more than one-half of the total hours. N.J.A.C. 13:40A-5.8 establishes the documentation a licensee or certificate holder must maintain upon completing continuing education courses. Under N.J.A.C. 13:40A-5.8(a), the Board is proposing that all licensees or certificate holders must retain and, upon request, submit to the Board documentation of the continuing education contact hours which the licensee or certificate holder completes in order to verify program attendance or activity completion. In addition, the Board will review the records of the licensees and/or certificate holders on a random basis, to determine compliance with continuing education requirements. N.J.A.C. 13:40A-5.8(a), being recodified as N.J.A.C. 13:40A-5.8(b), establishes that if a licensee or certificate holder attends courses, seminars and training programs approved by the Board, that a licensee or certificate holder is required to maintain a Uniform Continuing Education Form or other form acceptable to the Board, signed and dated by both the applicant and the course instructor(s), attesting that the licensee attended an approved continuing education program. A licensee or certificate holder is required to list those courses on the renewal application. N.J.A.C. 13:40A-5.8(b)2 establishes that if a licensee or certificate holder participates other than as a student in appraisal education processes or programs, a written request for continuing education credit must include a description of the activities for which credit is sought, the number of credits sought, the time spent on such activities, the reasons the applicant believes such activities meet the Board's continuing education requirements, and any further information as may be requested by the Board. In order to document continuing education credit for publication of a book or an article in a professional journal, a licensee or certificate holder must submit the book or article. In order to document continuing education credit for teaching or research appointments, a statement by the appropriate school authority verifying the appointment and subject matter to be taught or the nature of the research to be performed must be maintained. Pursuant to N.J.A.C. 13:40A-5.8(b), which is being recodified as N.J.A.C. 13:40A- 5.8(c), if a course, seminar or training program has not been pre-approved by the Board, a licensee or certificate holder must document continuing education requirements by maintaining a copy of the course description and/or outline and the completed Uniform Continuing Education form or other certified form acceptable to the Board or a signed and dated certification, from both the applicant and course instructor(s), attesting that the applicant attended the course listed and satisfactorily completed all course requirements. N.J.A.C. 13:40A-5.8(c), which is being recodified as N.J.A.C. 13:40A-5.8(d), establishes that falsification of any information submitted with the renewal application may result in penalties and/or the suspension or revocation of a license or certification. N.J.A.C. 13:40A-5.8(d), which is being recodified as N.J.A.C. 13:40A-5.8(e), sets forth that all licensed or certified appraisers must maintain continuing education records for at least four years from the date the course or seminar was taken. N.J.A.C. 13:40A-5.9, which sets forth the responsibilities of continuing education providers, is being proposed to be amended to require that course providers submit information to the Board on forms provided by the Board. Therefore, prior to advertising a course offering as Board-approved, a provider of continuing education courses or seminars must submit, on forms provided by the Board, among other things, a course description, and a description of how attendance will be monitored. In addition, course providers will be required to submit the names of proposed course instructors. The Board is proposing N.J.A.C. 13:40A-5.9(b), which requires that all continuing education courses be taught in public facilities. The Board is proposing this requirement to deter courses being held at someone's home. N.J.A.C. 13:40A-5.10 allows an applicant for biennial renewal to request an extension of time in order to satisfy the continuing education requirements. The Board may grant the extension if the applicant offers evidence that he or she was unable to complete the requirements due to illness, military assignment or other extraordinary circumstances.

Subchapter 6 sets forth the standards for conducting appraisals. N.J.A.C. 13:40A-6.1(a)1 requires that all appraisals must conform to the current Uniform Standards of Professional Appraisal Practice (USPAP). N.J.A.C. 13:40A-6.1(b) establishes that failure to comply with USPAP may be construed as professional misconduct.

Subchapter 7 sets forth general provisions applicable to all real estate appraisers. N.J.A.C. 13:40A-7.1 sets forth the fee schedule for credentialing, certification, licensure and other services. This section remains unchanged, except for replacing the word "apprentice" with the word "trainee" at N.J.A.C. 13:40A-7.1(a)19. N.J.A.C. 13:40A-7.2 requires an appraiser to include his or her license or certification number on any appraisal report he or she signs. The proposed amendments are intended to clarify the section and correct a cross-reference. N.J.A.C. 13:40A-7.3 lists the appropriate abbreviations appraisers may use to indicate the type of license or certificate held. Abbreviations must appear in capital letters and may be used only in conjunction with an individual, not a firm or corporation name. An appraiser shall not permit his or her name to be used on an appraisal report if the appraiser has not participated in the preparation of the report. The Board also proposes to amend N.J.A.C. 13:40A-7.3(a)6 to change the words apprentice to trainee. Pursuant to N.J.A.C. 13:40A-7.3(a)6, a trainee is prohibited from using any abbreviation of the trainee designation.

The Board is proposing new rule N.J.A.C. 13:40A-7.4, to delineate the criteria for the approval of an applicant seeking to be a real estate appraisal instructor for qualifying education courses. The Board is proposing this new rule since it has been recommended by the AQB. Proposed subsection (a) provides that to become an instructor for qualifying education courses, the applicant must satisfy at least one of the qualification requirements at a minimum. These qualification requirements include a baccalaureate degree in any field and three years of experience directly related to the subject matter to be taught; a masters degree in any field and one year of experience directly related to the subject matter to be taught; a masters or higher degree in a field that is directly related to the subject matter to be taught; five years of real estate appraisal teaching experience directly related to the subject matter to be taught; or seven years of real estate appraisal experience directly related to the subject matter to be taught. Proposed subsection (b) requires that a qualifying education instructor who has an appraisal license or certification must be in good standing with the Board. Proposed subsection (c) limits teaching approvals to a two-year period and mandates that each instructor complete a biennial application for re-approval. Proposed subsection (d) waives the requirements set forth at subsection (a) for instructors, who teach either full time or part time, at colleges, universities, community colleges or junior colleges accredited by the Commission on Higher Education or any real estate appraisal or real estate related organizations that are members of the Appraisal Foundation. Adjunct instructors do not qualify for the exemption and must satisfy the criteria in subsection (a) in order to qualify as an instructor of qualifying education courses.

N.J.A.C. 13:40A-7.5 is reserved for a proposed new rule which the Board is considering. The Board is proposing new rule N.J.A.C. 13:40A-7.6, addressing license or certification renewal. This rule mirrors the language in the Uniform Enforcement Act, N.J.S.A. 45:1-14 et seq. More specifically, licenses and certifications shall be renewed biennially upon a form provided by the Board. Each applicant shall attest that the applicable continuing education requirements have been completed. N.J.A.C. 13:40A-7.6(b) establishes that the Board shall send a notice of renewal to each of its licensees or certificate holders, as applicable, at least 60 days prior to the expiration of the license or certificate. If the notice to renew is not sent at least 60 days prior to the expiration date, no monetary penalties or fines shall be imposed for failure to renew. N.J.A.C. 13:40A-7.6(c) requires that every holder of a license or certificate, issued or renewed by the Board, who seeks renewal shall submit a renewal application and pay a renewal fee prior to the date of expiration of the license or certificate. If the holder does not renew the license or certificate prior to its expiration date, the holder may renew it within 30 days of its expiration date by submitting a renewal application and paying a renewal fee and a late fee. Any license or certification not renewed within 30 days of its expiration date shall be suspended without a hearing. N.J.A.C. 13:40A-7.6(d) provides that any individual who continues to practice with an expired license or certification after 30 days following its expiration date shall be deemed to be engaged in the unlicensed practice of real estate appraising, even if no notice of suspension has been provided to the individual. N.J.A.C. 13:40A-7.6(e) states that renewal applications for all licenses or certificates shall provide the applicant with the option of either active or inactive renewal. A renewal applicant electing to renew as inactive shall not engage in real estate appraising within the State. N.J.A.C. 13:40A-7.6(f) provides that an applicant who selects the inactive renewal option shall remain on inactive status for the entire renewal period unless, upon application to the Board, the Board permits the inactive applicant to return to active status, provided the applicant's presentation of satisfactory proof of completion of the continuing education hours required for the renewal of an active license or certification. The Board is also proposing new rule N.J.A.C. 13:40A-7.7 which addresses reinstatement. Again, this rule mirrors the Uniform Enforcement Act. N.J.A.C. 13:40A-7.7 states that the Board may reinstate the license or certification of an applicant whose license or certificate has been suspended for failure to renew provided that the applicant otherwise qualifies for licensure or certification. The Board is also proposing a new rule at N.J.A.C. 13:40A-7.8 which establishes when the Board can deny or revoke a license or certification. Such instances include that an applicant for licensure or certification shall not be eligible for licensure or certification and any holder of a license or certification shall have his or her license or certification revoked if the Board determines that criminal history record information exists on file in the Federal Bureau of Investigation, Identification Division, or in the State Bureau of Identification in the Division of State Police, which would disqualify that individual from being licensed or certified. N.J.A.C. 13:40A-7.8(b)1 provides that an applicant or a holder of a license or certification shall be disqualified from licensure or certification if that individual's criminal history record check reveals a record of conviction of any crime or disorderly persons offense in New Jersey involving danger to the person, meaning those crimes and disorderly persons offenses set forth in N.J.S.A. 2C:11-1 et seq., 2C:12-1 et seq., 2C:13-1 et seq., 2C:14-1 et seq., or 2C:15-1 et seq.; or involving theft as set forth in N.J.S.A. 2C:20-1 et seq.; or involving any controlled dangerous substances or controlled dangerous substances analog as set forth in N.J.S.A. 2C:35-1 except as set forth in N.J.S.A. 2C:35-10(a)(4). In addition, N.J.A.C. 13:40A-7.8(b)2 establishes that an applicant or holder of a license or certification shall be disqualified from licensure or certification if that individual's criminal history record check reveals a record of conviction of any conduct, in any other state, which if committed in New Jersey, would constitute any of the crimes or disorderly persons offenses described above. This is deemed to include convictions for bank fraud, wire fraud, or conspiracy to commit bank fraud or wire fraud. N.J.A.C. 13:40A-7.8(c) establishes that no individual shall be disqualified from licensure or certification on the basis of any conviction disclosed by a criminal history record check if the individual has affirmatively demonstrated to the Board clear and convincing evidence of rehabilitation. N.J.A.C. 13:40A-7.8(d) establishes that the Board may refuse to admit a person to an examination or may refuse to issue or may suspend or revoke any certificate or license issued by the Board upon proof that the applicant or holder of such certificate or license has obtained a certificate, license or authorization to sit for an examination, as the case may be, through fraud, deception, or misrepresentation; has engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise or false pretense; has engaged in gross negligence, gross malpractice or gross incompetence which damaged or endangered the life, health, welfare, safety or property of any person; has engaged in repeated acts of negligence, malpractice or incompetence; has engaged in professional or occupational misconduct as may be determined by the Board; has been convicted of, or engaged in acts constituting, any crime or offense involving moral turpitude or relating adversely to real estate appraising; has had the authority to engage in real estate appraising revoked or suspended by any other state, agency, or authority for reasons consistent with this section; has violated or failed to comply with the provisions of any statute or regulation administered by the Board; is incapable for medical or any other good cause, of discharging the functions of a licensee or certificate holder in a manner consistent with the public's health, safety and welfare; has violated any provision of P.L. 1983, c.320 (N.J.S.A. 17:33A-1 et seq.) or any insurance fraud prevention law or act of another jurisdiction or has been adjudicated, in civil or administrative proceedings, of a violation of P.L. 1983, c.320 (N.J.S.A. 17:33A-1 et seq.) or has been subject to a final order, entered in civil or administrative proceedings, that imposed civil penalties under that act against the applicant or holder; or is presently engaged in drug or alcohol use that is likely to impair the ability to practice the profession or occupation with reasonable skill and safety. For purposes of this subsection, the term "presently" means at this time or any time within the previous 365 days; has permitted an unlicensed person or entity to perform an act for which a license or certification is required by the Board, or aided and abetted an unlicensed person or entity in performing such an act; advertised fraudulently in any manner.

Subchapter 8 sets forth certification or licensure by endorsement. N.J.A.C. 13:40A-8.1 provides standards for certification or licensure by endorsement in New Jersey. The Board is proposing to delete N.J.A.C. 13:40A-8.1(a)1, which allows an appraiser licensed or certified in another state to receive certification or licensure in New Jersey, since the Board does not maintain reciprocity agreements with other states. The Board instead proposes that an applicant must undergo a criminal history background check as now required by law. Therefore, as proposed, an appraiser licensed or certified in another state seeking licensure or certification by endorsement must be in good standing in every jurisdiction in which he or she currently holds certification or licensure. Second, the applicant must undergo a criminal history background check and certification requirements in any one state in which the applicant holds a certification or license meet or exceed all minimum standards for certification or licensure set forth by the Appraisal Qualification Board of the Appraisal Foundation. The proposed amendment to N.J.A.C. 13:40A-8.1(b) deletes reference to the reciprocity agreement; therefore, N.J.A.C. 13:40A- 8.1(b) will require all appraisers licensed through the endorsement process to satisfy all continuing education requirements set forth in N.J.A.C. 13:40A- 5.

As the Board has provided a 60-day comment period on this notice of proposal, this notice is exempted from the rulemaking calendar requirement pursuant to N.J.A.C. 1:30-3.3(a)5.

Social Impact

The rules proposed for readoption will continue to have a positive social impact because the Board believes that the existing rules, which have been in effect for the past five years, have protected the health, safety and welfare of the citizens of New Jersey by identifying those individuals who are qualified and legally authorized to engage in the practice of real estate appraising. The rules positively affect the regulated community by clarifying the varied aspects of the practice of real estate appraising for the benefit of all licensed or certified real estate appraisers and applicants for licensure or certification. The readoption of N.J.A.C. 13:40A is essential in order for the Board to continue to regulate the practice of real estate appraising, to identify those individuals who are qualified to engage in the practice of real estate appraising, and to ensure that every licensee or certificate holder is aware of the procedures connected with licensure and certification. The readoption of the existing rules will continue to maintain the standards established and provide the public the continued protection and confidence in the real estate appraising field which is afforded by the regulations. The rules will continue to apply to all persons applying for licensure as licensed real estate appraisers or certification as certified residential real estate appraisers or as certified generalreal estate appraisers and to persons licensed or certified by the Board of Real Estate Appraisers in the State of New Jersey.

In addition to the existing rules, the Board proposes several amendments to the rules to ensure the health, safety and welfare of the citizens of New Jersey. The Board proposes to amend the eligibility requirements for admission to examination for certified general, certified residential and licensed real estate appraisers to include the requirement that applicants must undergo a criminal history background check. This amendment will have a positive social impact upon the consuming public because such a requirement will help ensure that real estate appraisers are law abiding citizens.

In addition, the Board's proposed amendments to the temporary visiting certificate section for certified general and certified residential real estate appraisers and to the temporary visiting licensure section for licensed real estate appraisers will have a positive social impact because the Board is protecting the public by limiting the number of properties that can be appraised per temporary certificate or license.

The Board proposes to revise the educational requirements for certification or licensure for all certified general real estate appraisers, certified residential real estate appraisers and license real estate appraisers to ensure competence and professionalism in the creation of real estate appraisals and also to maintain standards consistent with Federal guidelines. The Board also proposes to revise the educational requirements for all licensed and certified real estate appraisers, whereby they will be required to complete Uniform Standards of Professional Appraisal Practice (USPAP) courses every two years. As a result, the Board believes that the regulated community will keep abreast of the current USPAP requirements.

The Board also proposes to have the continuing education requirements for all real estate appraisers and trainees reflect the standards of the AQB. The Board believes that requiring continuing education will continue to benefit the public because the regulated community will keep abreast of current requirements and information. The continuing education requirements should foster competence and accuracy among real estate appraisal professionals and thereby maintain the public's confidence in the real estate appraisals which they receive. Likewise, by enabling the Board to use its discretion when approving continuing education courses, the public interest is served because the Board can better ensure that training is relevant and appropriate.

Proposed new rule N.J.A.C. 13:40A-7.4, which sets forth the requirements for the approval of real estate appraisal instructors, should have a positive impact upon the public by seeking to ensure that each instructor is qualified, knowledgeable and proficient in the subject matter. The proposed rule also benefits the students of the instructors who qualify under the rule by ensuring that their students are likely to become qualified real estate appraisers when entering and continuing in the profession. Thus, the proposed new rule will ensure that competent and qualified real estate appraisers will enter the profession and continue in the profession to serve the consumer's needs.

Proposed new rule N.J.A.C. 13:40A-7.6 will have a positive social impact by ensuring that licensees and certificate holders are not practicing with expired licenses or certificates, and if they are, the Board will take appropriate action against the licensees. In addition, proposed new rule N.J.A.C. 13:40A-7.7 will have a positive social impact by ensuring that if a licensee or certificate holder's license or certificate has been suspended for failure to renew, the Board will only reinstate upon that person qualifying for licensure or certification. Proposed new rule N.J.A.C. 13:40A-7.8 will also have a positive social impact upon the public because the new rule establishes that an applicant for licensure or certification shall not be eligible for licensure or certification and any holder of a license or certification shall have his or her license or certification revoked if the Board determines that criminal history record information exists which would disqualify that individual from being licensed or certified. However, pursuant to the new rule, no individual shall be disqualified from licensure or certification on the basis of any conviction disclosed by a criminal history record check if the individual has affirmatively demonstrated to the Board clear and convincing evidence of rehabilitation.

Economic Impact

The rules proposed for readoption with amendments will have an economic impact on approximately 2,830 individuals who are trainees and certified or licensed real estate appraisers. In addition, applicants for licensure or certification will experience an economic impact as a result of proposed N.J.A.C. 13:40A- 2.2(a)6, 2A.2(a)6 and 3.2(a)6 since each applicant has to pay a fee to the State Police to conduct the required criminal history background check.

The fee schedule will not change as a result of the readoption; however, charges for credentialing, certification, licensure and other services will have an economic impact on the regulated community. It is likely that these fees, as a cost of doing business, will in some small measure be passed on in fees for services. Regardless, the fees collected under the fee schedule fund the Board's operations and investigations and are set at a rate not to exceed the cost of maintaining the Board's activities.

Subchapter 5, which establishes continuing professional education, will have an economic impact upon licensees and certificate holders since these individuals will have to pay the cost of each course in order to comply with the required number of credits upon renewal. Although this will impose some economic impact, the requirement of continuing education will ensure that appraisers participate in programs that maintain and increase their skill, knowledge and competency in real estate appraising.

Proposed new rule N.J.A.C. 13:40A-7.4 should have a positive economic impact on individuals who wish to teach qualifying education courses. The requirements to be an instructor enhance the skills of each applicant, thus increasing marketability and earning potential in the profession. With the proposed new rule, qualified real estate appraisers will be available to provide real estate appraisals. In addition, a student of an instructor approved under the proposed new rule should benefit because he or she will receive instruction from individuals who are proficient. The proposed new rule may have a minimal negative economic impact on an applicant seeking approval as a qualifying education instructor because the applicant will incur the cost of successfully completing the instructor requirements as established in the proposed new rule. In addition, each applicant forgoes earning revenues as a real estate appraisal instructor until the requirements for teaching approval are fulfilled. Such costs will vary depending upon the cost of the requirements described in the proposed new rule; however, such costs incurred by applicants to become instructors are outweighed by the benefits of ensuring qualified instructors.

Additionally, new rules, N.J.A.C. 13:40A-7.6, 7.7 and 7.8 will have an economic impact upon licensees and certificate holders who fail to comply with the new rules because these individuals can be monetarily penalized. In addition, if a licensee or certificate holder does not renew his or her license or certification prior to its expiration date, the licensee or certificate holder will be subject to paying a renewal fee and a late fee. If a licensee or certificate holder does not renew his or her license or certificate within 30 days of its expiration, a license or certification shall be suspended without a hearing. In order to reinstate the license or certification, the licensee or certificate holder will have to pay an additional fee. New rule N.J.A.C. 13:40A-7.8 establishes the bases upon which the Boardcan revoke a licensee's license or a certificate holder's certification. As a result, this new rule imposes an economic impact upon licensees and certificate holders whose licenses or certificates are revoked as this may lead to a loss of income, and a fee will have to be paid upon reinstatement.

Although some of the rules will impose an economic impact, the Board believes that the increased cost to licensees and certificate holders is outweighed by the benefit to the public gained from utilizing the services of real estate appraisers who maintain an understanding of current practice requirements. Moreover, in the Board's opinion, these requirements should increase public confidence in real estate appraisers and promote goodwill toward the profession.

The operations of the Board serve a vital function for the regulated community. The Board ensures that licensees and certificate holders are competent to practice by creating guidelines for licensure, certification, qualifying education and continuing education. The Board also investigates complaints and through that function directly protects the public interest. For those reasons, while the fees do economically impact on the regulated community, that impact is outweighed by the service which the Board provides to the regulated community and the consumers who utilize such services.

Federal Standards Statement

A Federal standards analysis is not required because the rules proposed for readoption with amendments and new rules are dictated by State statutes and are not subject to Federal requirements or standards, although the rules contain standards and requirements which are the same as those Federal standards set forth in the Uniform Standards of Professional Appraisal Practice (USPAP) published by the Appraisal Standards Board of the Appraisal Foundation, as well as standards set forth by the Appraiser Qualification Board of the Appraisal Foundation.

Jobs Impact

The rules proposed for readoption will not result in the generation or loss of jobs. The proposed amendments to N.J.A.C. 13:40A-2.2(a)6, 2A.2(a)6 and 3.2(a)6 may affect the employability of potential real estate appraisers if the applicants have a history of criminal activity. Pursuant to proposed N.J.A.C. 13:40A-7.8(a), an applicant for licensure or certification shall not be eligible for licensure or certification if the Board determines that criminal history record information exists which would disqualify that individual from being licensed or certified. In addition, pursuant to proposed N.J.A.C. 13:40A-7.8(a), an applicant for licensure or certification shall have his or her license or certification revoked if the Board determines that criminal history record information exists which would disqualify that individual from being licensed or certified. Therefore, this new provision may have a negative impact on jobs; however, pursuant to N.J.A.C. 13:40A-7.8(c), no individual shall be disqualified from licensure or certification on the basis of any conviction disclosed by a criminal history record check if the individual has affirmatively demonstrated to the Board clear and convincing evidence of rehabilitation. N.J.A.C. 13:40A-7.8(d) may also impact jobs if the Board refuses to admit a person to an examination or refuses to issue or suspends or revokes a certificate or license issued by the Board for any of the reasons listed in the rule and as discussed above in the Summary.

Although the new rules may impact jobs, the Board believes that any negative job impact is outweighed by the benefit to the public gained from ensuring that reputable persons are conducting real estate appraisals.

Proposed new rule N.J.A.C. 13:40A-7.4 should have a positive impact upon jobs because the rule will enhance the competence of instructors, thus increasing their marketability and earning potential in the profession.

Agriculture Industry Impact

The Board believes the rules proposed for readoption with amendments and new rules will have noimpact upon the agriculture industry in New Jersey.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., requires the Board to give a description and estimate of the number of small businesses to which the proposed rules will apply. There are approximately 2,830 licensed or certified real estate appraisers. If for the purposes of the Regulatory Flexibility Act, real estate appraisers are deemed "small businesses," then the following analysis applies.

The rules proposed for readoption place a number of compliance, reporting and recordkeeping requirements upon the approximately 2,830 certified or licensed real estate appraisers. As well, the proposed amendments to N.J.A.C. 13:40A- 2.2(a)6, 2A.2(a)6 and 3.2(a)6 impose compliance requirements upon each applicant. Pursuant to the amendments, applicants must undergo a criminal history background check.

The amendments to the educational requirements impose compliance, recordkeeping and reporting requirements for those individuals applying for certification as general real estate appraisers or residential real estate appraisers or licensure as real estate appraisers. Each applicant must comply with the educational requirements established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation, record their compliance and then report their completion of the educational requirements to the Board in order to be eligible to sit for the examination.

The amendments to the temporary visiting certificate and license sections impose compliance and reporting requirements upon appraisers licensed or certified by another state. Each licensee or certificate holder must apply to the Board for the temporary certificate or licensure. Upon issuance, the appraiser is limited to appraising three specific properties per temporary certificate or license, unless the property to be appraised is part of a Federally related transaction.

Subchapter 4, which establishes a voluntary trainee program, imposes compliance requirements upon trainees and their supervising appraisers. N.J.A.C. 13:40A-4.3, which sets forth the educational requirements, imposes compliance requirements upon trainees since the proposed new rule requires trainees to complete, by the time the application is submitted to the Board, the educational requirements for a trainee as established in "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation. N.J.A.C. 13:40A-4.4 imposes a compliance requirement upon trainees since it provides that a trainee must renew his or her permit every year, with a maximum total of three times. N.J.A.C. 13:40A-4.5 imposes compliance, reporting and recordkeeping requirements for trainees since the rule establishes that trainees must work under the direct supervision of a supervising appraiser, who must be licensed or certified and in good standing. A trainee must inform the Board in the event the supervising appraiser ceases to agree to perform the responsibilities of a supervising appraiser or in the event that any individual not previously designated as a supervising appraiser agrees to supervise the work product of the trainee. A trainee must maintain and submit, upon renewal, a log, the specific requirements of which are indicated in N.J.A.C. 13:40A-4.7, and must ensure that the log is available at all times for inspection by the Board. In addition, the trainee must carry his or her permit when performing appraisal assignments. If the supervising appraiser can no longer provide direct supervision to a trainee, the trainee must return the permit within 30 days to the Board. N.J.A.C. 13:40A-4.6 establishes the responsibilities of a supervising appraiser. This rule imposes compliance, recordkeeping and reporting requirements upon the supervising appraiser. A supervising appraiser must acknowledge in writing to the Board that he or she agrees to perform all responsibilities such as directly supervising the trainee, must sign and put his or her license or certification number on the trainee log at least once a month, provide the trainee with a copy of any final appraisal report in which the trainee's work product has been utilized or in which the trainee made a professional contribution, and immediately notify the Board and his or her trainee, in writing, in the event that he or she ceases to perform or is unable to perform the responsibilities of a supervising appraiser. N.J.A.C. 13:40A- 4.8 establishes the continuing education requirements that a trainee holding a trainee permit for more than two years must comply with by the time the application is submitted to the Board, during the third and fourth years that the trainee permit is held. The continuing education requirements are set forth in "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation.

Subchapter 5, continuing professional education, imposes compliance and reporting requirements upon licensees and certificate holders. A licensed or certified real estate appraiser must confirm on the renewal application that he or she has completed all continuing education requirements. Each licensee or certificate holder must comply with the continuing education requirements as set forth in "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation. Pursuant to N.J.A.C. 13:40A-5.4, all real estate appraisers are required to attend a minimum seven hour length course on USPAP every two years. N.J.A.C. 13:40A-5.8 imposes a recordkeeping requirement since all real estate appraisers must retain the documentation of the continuing education hours which he or she completed in order to verify program attendance and completion. This rule also imposes a compliance requirement since each licensee or certificate holder must submit such documentation to the Board upon request. N.J.A.C. 13:40A-5.9 imposes compliance and reporting requirements upon continuing education providers. Each provider must submit information on forms provided by the Board for each course for which an approval is sought. Additionally, all continuing education courses must be taught in public facilities.

Subchapter 6 imposes compliance requirements upon all appraisers because all appraisers must comply with the provisions of USPAP.

Subchapter 7, which establishes the general provisions for all appraisers, imposes compliance and reporting requirements. More specifically, all appraisers must disclose their title and license or certificate number on all appraisal reports. Proposed new rule N.J.A.C. 13:40A-7.4 imposes compliance requirements because it requires an applicant seeking approval to instruct qualifying education courses, other than those who teach at colleges, universities, community colleges or junior colleges accredited by the Commission on Higher Education or any real estate appraisal or real estate related organizations that are members of the Appraisal Foundation, to satisfy at least one of the requirements established in this rule. This proposed new rule imposes additional compliance requirements because it requires that each instructor submit an application for re-approval every two years. The rule minimizes adverse economic impact on small businesses by imposing the minimum level of prerequisites to become qualified and proficient as a real estate appraisal instructor. Pursuant to new rule N.J.A.C. 13:40A-7.6, licensees and certificate holders must renew their licenses or certificates biennially upon a form provided by the Board.

The proposed amendments to subchapter 8 also allow for certification or licensure by endorsement, which will permit appraisers from other states to work in limited situations in New Jersey. The requirements of endorsement are that the individual must come from a state in which the standards for licensure or certification meet or exceed AQB guidelines, undergo a criminal history background check and complete New Jersey's continuing education requirements.

There are no further compliance requirements, and no additional professional services are necessary to comply with the rules in this chapter. Because the rules further the welfare of the citizens of the State, the rules will be applied uniformly to all real estate appraiser licensees and no differing compliance requirements are provided based on size of the business.

Full text of the proposed readoption may be found in the New Jersey Administrative Code at N.J.A.C. 13:40A.

Full text of the proposed amendments and new rules follows:

SUBCHAPTER 1. PURPOSE AND SCOPE; DEFINITIONS

<< NJ ADC 13:40A-1.1 >>

13:40A-1.1 Purpose and scope

<<-This chapter, as effective December 16, 1991, is promulgated by the Director, Division of Consumer Affairs, with subsequent amendments promulgated by the Board of Real Estate Appraisers. The rules contained in this chapter implement the provisions of the Real Estate Appraisers Act, P.L. 1991, c.68 (N.J.S.A. 45:14F-1 et seq.) and provide for the voluntary licensing and certification of real estate appraisers.->>

<<+(a) The rules in this chapter implement the provisions of P.L. 1991, c.68, N.J.S.A. 45:14F-1 et seq., the "Real Estate Appraisers Act."+>>

<<+(b) This chapter shall apply to all persons applying for licensure as a licensed real estate appraiser or certification as a certified residential real estate appraiser or as a certified general real estate appraiser and to persons licensed or certified by the Board of Real Estate Appraisers in the State of New Jersey.+>>

<< NJ ADC 13:40A-1.2 >>

13:40A-1.2 Definitions

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:

...

<<+"Appraisal Qualification Board (AQB)" means the independent board of the Appraisal Foundation which under the provisions of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) establishes the minimum education, experience and examination requirements for real property appraisers to obtain a state certification or license. The address and phone number of the AQB is 1029 Vermont Avenue, NW, Suite 900, Washington, DC 20005-3517, (202) 347-7722. The website for the AQB is www.appraisalfoundation.org.+>>

<<-"Apprentice" means an individual in the process of acquiring the hours of appraisal experience required for certification or licensure under the direct supervision of a licensed or certified appraiser pursuant to this chapter.->>

...

<<-"Classroom hour" means 50 minutes out of each 60-minute segment. This definition reflects the traditional educational practice of having 50 minutes of instruction and 10 minutes of break time for each scheduled hour of instruction and shall not be interpreted as permitting course providers to decrease the prescribed number of classroom hours. Classroom hours shall be deemed to include time devoted to examinations, which are considered to be part of the course.->>

"State certified general real estate appraiser" ("SCGREA") means an individual who has satisfied the experience and education requirements as set forth in this chapter, has successfully completed the Board <<-sponsored->> <<+ approved+>> examination, and holds a current, valid certificate as a certified general real estate appraiser.

"State certified residential real estate appraiser" ("SCRREA") means an individual who has satisfied the experience and education requirements as set forth in this chapter, has successfully completed the Board <<- sponsored->> <<+approved+>> examination, and holds a current, valid certificate as a certified residential real estate appraiser.

"State licensed real estate appraiser" ("SLREA") means an individual who has satisfied the experience and education requirements as set forth in this chapter, has successfully completed the Board <<-sponsored->> <<+ approved+>> examination, and holds a current, valid license for real estate appraisal.

<<+"Trainee" means an individual in the process of acquiring the hours of appraisal experience and qualifying education required for certification or licensure under the direct supervision of a licensed or certified appraiser pursuant to this chapter.+>>

...

SUBCHAPTER 2. CERTIFICATION OF GENERAL REAL ESTATE APPRAISERS

<< NJ ADC 13:40A-2.2 >>

13:40A-2.2 Eligibility for admission to examination

(a) An applicant for certification as a general real estate appraiser shall present <<-evidence to the satisfaction of the Board that he or she is->> <<+the following+>>:

1. <<-At->> <<+Evidence that he or she is at+>> least 18 years of age;

2. <<-Of->> <<+Evidence of+>> good moral character, as established by references from individuals, schools, and other records acceptable to the Board;

3. <<-Has a->> <<+A+>> high school diploma or its equivalent;

4. <<-Has completed->> <<+Completion of+>> the educational requirements described in N.J.A.C. 13:40A-2.3; <<-and->>

5. <<-Has real->> <<+Real+>> estate appraisal experience as described in N.J.A.C. 13:40A-2.4<<-.->><<+; and+>>

<<+6. The certification and authorization form for criminal history background check, as provided by the Board, a usable set of fingerprints taken on standard fingerprint cards by a State or municipal law enforcement agency, and the payment check made payable to the "Division of State Police S.B.I."+>>

<< NJ ADC 13:40A-2.3 >>

13:40A-2.3 Educational requirements for certification as a general real estate appraiser

<<-(a) Prior to January 1, 1998, in order to be eligible to take the Board- approved examination for certification as a general real estate appraiser, an applicant shall be required to complete 165 classroom hours, as defined in N.J.A.C. 13:40A-1.2, of courses in subjects related to real estate appraisal. The required 165 classroom hours shall include a course on the Uniform Standards of Professional Appraisal Practice (USPAP) which the applicant shall have completed within 54 months prior to applying to take the examination. Classroom hours completed for the certified residential classification and the licensed classification may be included within the required 165 classroom hours.->>

<<-(b) Effective January 1, 1998, in order to be eligible to take the Board- approved examination for certification as a general real estate appraiser, an applicant shall be required to complete 180 classroom hours, as defined in N.J.A.C. 13:40A-1.2, of courses in subjects related to real estate appraisal. The required 180 classroom hours shall include a course on USPAP which the applicant shall have completed within 54 months prior to applying to take the examination. Classroom hours completed for the certified residential classification and the licensed classification may be included within the required 180 classroom hours.->>

<<-(c) The Board shall grant credit toward the classroom hour requirement only where the length of the educational offering is at least 15 classroom hours and where the individual successfully completes an examination pertinent to that educational offering.->>

<<-(d) The applicant may obtain credit for the classroom hour requirement from the following: colleges, universities, community colleges or junior colleges accredited by the New Jersey Department of Higher Education or any State accrediting agency approved by the Board; real estate appraisal or real estate related organizations as approved by the Board; State or Federal agencies or commissions as approved by the Board; proprietary schools as approved by the Board.->>

<<-(e) The Board may credit various appraisal courses toward the classroom hour educational requirement. Applicants shall demonstrate that their education included coverage of all the topics listed below with particular emphasis on the appraisal of non-residential properties:->>

<<-1. Influences on Real Estate Value;->>

<<-2. Legal Considerations in Appraisal;->>

<<-3. Types of Value;->>

<<-4. Economic Principles;->>

<<-5. Real Estate Markets and Analysis;->>

<<-6. Valuation Process;->>

<<-7. Property Description;->>

<<-8. Highest and Best Use Analysis;->>

<<-9. Appraisal Math and Statistics;->>

<<-10. Sales Comparison Approach;->>

<<-11. Site Value;->>

<<-12. Cost Approach;->>

<<-13. Income Approach;->>

<<-14. Valuation of Partial Interests;->>

<<-15. Appraisal Standards and Ethics; and->>

<<-16. Narrative Report Writing.->>

<<-(f) Experience may not be substituted for education.->>

<<-(g) The Board shall not grant credit for correspondence courses or for video and remote television educational offerings.->>

<<+In order to be eligible to take the examination for certification as a general real estate appraiser, an applicant shall complete, by the time the application is submitted to the Board, the educational requirements for a general real estate appraiser as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

<< NJ ADC 13:40A-2.4 >>

13:40A-2.4 Experience requirements for certification as a general real estate appraiser

<<-(a) Each person applying for certification as a general real estate appraiser shall furnish documentation on forms provided by the Board which demonstrate that the candidate has obtained requisite appraisal experience.->>

<<-1. An applicant who applies for certification on or prior to December 31, 1997 shall demonstrate that he or she has accumulated at least 2,000 hours of appraisal experienced in no fewer than 24 months.->>

<<-2. An applicant who applies for certification on or after January 1, 1998 must demonstrate that he or she has accumulated 3,000 hours of appraisal experience in no fewer than 30 months.->>

<<-3. Only appraisal experience which complies with USPAP shall qualify for consideration under (a)1 and 2 above.->>

<<-4. At least 50 percent of the required experience shall be in non- residential appraisal work.->>

<<-(b) Acceptable appraisal experience includes, but is not limited to, the following: fee and staff appraisal; ad valorem tax appraisal; review appraisal analysis; real estate counseling; highest and best use analysis; and feasibility analysis.->>

<<-(c) The Board shall award experience credit to ad valorem tax appraisers or appraisals when the applicant demonstrates to the satisfaction of the Board that the appraisals performed by the applicant comply with USPAP.->>

<<-(d) Education may not be substituted for experience.->>

<<+Each applicant applying for certification as a general real estate appraiser shall be required to complete, by the time the application is submitted to the Board, the experience requirements for a general real estate appraiser as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

 

<< NJ ADC 13:40A-2.5 >>

13:40A-2.5 Temporary visiting certificate; certified general real estate appraiser

(a) Upon application to the Board and payment of a registration fee, an appraiser certified as a general real estate appraiser in another state may be issued a temporary visiting certificate as a general real estate appraiser for a specific appraisal assignment, provided that the individual submits satisfactory proof to the Board that the individual has a current valid certificate to practice as a general real estate appraiser in another state <<-which has requirements for certification as a general real estate appraiser substantially equivalent to those of New Jersey->>.

(b) An appraiser certified by another state may apply for no more than three temporary certificates<<+, with a limit of appraising three specific properties per temporary certificate,+>> within one calendar year, except <<-as provided in (c) below->> <<+that the Board may waive the limitation based on a showing of good cause by the applicant+>>.

(c) <<-The Board may, in its discretion, waive the requirements of (b) above for good cause shown.->> <<+For purposes of this section, the term "Federally related transaction" shall mean any real estate-related financial transaction which a Federal financial institutions regulatory agency engages in, contracts for, or regulates. An appraiser certified by another state shall apply for a temporary visiting certificate without the limitations stated in (b) above if the property to be appraised is part of a Federally related transaction.+>>

(d) (No change.)

SUBCHAPTER 2A. CERTIFICATION OF RESIDENTIAL REAL ESTATE APPRAISERS

<< NJ ADC 13:40A-2A.2 >>

13:40A-2A.2 Eligibility for admission to examination

(a) An applicant for certification as a residential real estate appraiser shall present <<-evidence to the satisfaction of the Board that he or she is->> <<+the following+>>:

1. <<-At->> <<+Evidence that he or she is at+>> least 18 years of age;

2. <<-Of->> <<+Evidence of+>> good moral character, as established by references from individuals, schools and other records acceptable to the Board;

3. <<-Has a->> <<+A+>> high school diploma or its equivalent;

4. <<-Has completed->> <<+Completion of+>> the educational requirements described in N.J.A.C. 13:40A-2A.3; <<-and->>

5. <<-Has real->> <<+Real+>> estate appraisal experience as described in N.J.A.C. 13:40A-2A.4<<-.->><<+; and+>>

<<+6. The certification and authorization form for criminal history background check, as provided by the Board, a usable set of fingerprints taken on standard fingerprint cards by a State or municipal law enforcement agency, and the payment check made payable to the "Division of State Police S.B.I."+>>

<< NJ ADC 13:40A-2A.3 >>

13:40A-2A.3 Educational requirements for certification as a residential real estate appraiser

<<-(a) In order to be eligible to take the Board-approved examination for the certification of residential real estate appraisers, an applicant shall be required to complete 120 classroom hours, as defined in N.J.A.C. 13:40A-1.2, of courses in subjects related to real estate appraisal. The required 120 classroom hours shall include a course on the Uniform Standards of Professional Appraisal Practice (USPAP) which the applicant shall complete within 54 months prior to applying to take the examination. Classroom hours completed for the licensed classification may be included within the required 120 classroom hours.->>

<<-(b) The Board shall grant credit toward the classroom hour requirement only where the length of the educational offering is at least 15 classroom hours and where the individual successfully completes an examination pertinent to that educational offering.->>

<<-(c) The applicant may obtain credit for the classroom hour requirement from the following: colleges, universities, community colleges or junior colleges accredited by the New Jersey Department of Higher Education or any State accrediting agency approved by the Board; real estate appraisal or real estate related organizations as approved by the Board; State or Federal agencies or commissions as approved by the Board; and proprietary schools as approved by the Board.->>

<<-(d) The Board may credit various appraisal courses toward the classroom hour educational requirement. Applicants shall demonstrate that their education included coverage of all the topics listed below with particular emphasis on the appraisal of one to four unit residential properties:->>

<<-1. Influences on Real Estate Value;->>

<<-2. Legal Considerations in Appraisal;->>

<<-3. Types of Value;->>

<<-4. Economic Principles;->>

<<-5. Real Estate Markets and Analysis;->>

<<-6. Valuation Process;->>

<<-7. Property Description;->>

<<-8. Highest and Best Use Analysis;->>

<<-9. Appraisal Math and Statistics;->>

<<-10. Sales Comparison Approach;->>

<<-11. Site Value;->>

<<-12. Cost Approach;->>

<<-13. Income Approach;->>

<<-14. Valuation of Partial Interests;->>

<<-15. Appraisal Standards and Ethics; and->>

<<-16. Narrative Report Writing.->>

<<-(e) Experience may not be substituted for education.->>

<<-(f) The Board shall not grant credit for correspondence courses or for video and remote television educational offerings.->>

<<+In order to be eligible to take the examination for certification as a residential real estate appraiser, an applicant shall complete, by the time the application is submitted to the Board, the educational requirements for a residential real estate appraiser as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

<< NJ ADC 13:40A-2A.4 >>

13:40A-2A.4 Experience requirements for certification as a residential real estate appraiser

<<-(a) Each person applying for certification as a residential real estate appraiser shall furnish documentation on forms provided by the Board which demonstrate that the candidate has obtained the requisite appraisal experience.->>

<<-1. An applicant who applies for certification on or prior to December 31, 1997 shall demonstrate that he or she has accumulated at least 2,000 hours of appraisal experience in no fewer than 24 months.->>

<<-2. An applicant who applies for certification on or after January 1, 1998 shall demonstrate that he or she has accumulated 2,500 hours of appraisal experience in no fewer than 24 months.->>

<<-3. Only appraisal experience which complies with USPAP shall qualify for consideration under (a)1 and 2 above.->>

<<-(b) Acceptable appraisal experience includes, but is not limited to, the following: fee and staff appraisal, ad valorem tax appraisal; review appraisal; appraisal analysis; real estate counseling; highest and best use analysis and feasibility analysis.->>

<<-(c) The Board shall award experience credit to ad valorem tax appraisers/appraisals when the applicant demonstrates to the satisfaction of the Board that the appraisals performed comply with USPAP.->>

<<-(d) Education may not be substituted for experience.->>

<<+Each applicant applying for certification as a residential real estate appraiser shall complete, by the time the application is submitted to the Board, the experience requirements for a general real estate appraiser as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

<< NJ ADC 13:40A-2A.5 >>

13:40A-2A.5 Temporary visiting certificate; certified residential real estate appraiser

(a) Upon application to the Board and payment of a registration fee, an appraiser certified as a residential real estate appraiser in another state may be issued a temporary visiting certificate as a residential real estate appraiser for a specific appraisal assignment, provided that the individual submits satisfactory proof to the Board that the individual has a current valid certificate to practice as a residential real estate appraiser in another state <<-which has requirements for certification as a residential real estate appraiser substantially equivalent to those of New Jersey->>.

(b) An appraiser certified by another state may apply for no more than three temporary certificates<<+, with a limit of appraising three specific properties per temporary certificate,+>> within one calendar year, except <<-as provided in (c) below->> <<+that the Board may waive the limitation based on a showing of good cause by the applicant+>>.

(c) <<-The Board may, in its discretion, waive the requirements of (b) above for good cause shown.->> <<+For purposes of this section, the term "Federally related transaction" shall mean any real estate-related financial transaction which a Federal financial institutions regulatory agency engages in, contracts for, or regulates. An appraiser certified by another state shall apply for a temporary visiting certificate without the limitations stated in (b) above if the property to be appraised is part of a Federally related transaction.+>>

(d) (No change.)

SUBCHAPTER 3. LICENSING OF REAL ESTATE APPRAISERS

<< NJ ADC 13:40A-3.2 >>

13:40A-3.2 Eligibility for admission to examination

(a) An applicant shall present <<-evidence to the satisfaction of the Board that he or she is->> <<+the following+>>:

1. <<-At->> <<+Evidence that he or she is at+>> least 18 years of age;

2. <<-Of->> <<+Evidence of+>> good moral character, as established by references from individuals, schools and other records acceptable to the Board;

3. <<-Has a->> <<+A+>> high school diploma or its equivalent;

4. <<-Has completed->> <<+Completion of+>> the educational requirements as described in N.J.A.C. 13:40A-3.3<<-, except as provided in N.J.A.C. 13:40A-3.5->>; <<-and->>

5. <<-Has real->> <<+Real+>> estate appraisal experience as described in N.J.A.C. 13:40A-3.4<<-.->><<+; and+>>

<<+6. The certification and authorization form for criminal history background check, as provided by the Board, a usable set of fingerprints taken on standard fingerprint cards by a State or municipal law enforcement agency, and the payment check made payable to the "Division of State Police S.B.I."+>>

<< NJ ADC 13:40A-3.3 >>

13:40A-3.3 Educational requirements for licensure

<<-(a) Prior to January 1, 1998, except as provided in N.J.A.C. 13:40A- 3.6, in order to be eligible to take the Board-approved examination for licensure as a real estate appraiser, an applicant shall be required to complete 75 classroom hours, as defined in N.J.A.C. 13:40A-1.2, of courses in subjects related to real estate appraisal. The required 75 classroom hours shall includea course on the Uniform Standards of Professional Appraisal Practice (USPAP) which the applicant shall have completed within 54 months prior to applying to take the examination.->>

<<-(b) Effective January 1, 1998, except as provided in N.J.A.C. 13:40A- 3.6, in order to be eligible to take the Board-approved examination for the licensing of real estate appraisers, an applicant shall be required to complete 90 classroom hours, as defined in N.J.A.C. 13:40A-1.2, of courses in subjects related to real estate appraisal. The required 90 classroom hours shall include a course on USPAP which the applicant shall complete within 54 months prior to applying to take the examination.->>

<<-(c) The Board shall grant credit toward the classroom hour requirement only where the length of the educational offering is at least 15 classroom hours and where the applicant successfully completes an examination pertinent to that educational offering.->>

<<-(d) The applicant may obtain credit for the classroom hour requirement from any of the following: colleges, universities, community colleges or junior colleges accredited by the New Jersey Department of Higher Education or any State accrediting agency approved by the Board; real estate appraisal or real estate related organizations as approved by the Board; State or Federal agencies or commissions as approved by the Board; and proprietary schools as approved by the Board.->>

<<-(e) The Board may credit various appraisal courses toward the 75 classroom hour educational requirement. Applicants shall demonstrate that their education involved coverage of all the topics listed below with particular emphasis on the appraisal of one to four unit residential properties:->>

<<-1. Influences on Real Estate Value;->>

<<-2. Legal Considerations in Appraisal;->>

<<-3. Types of Value;->>

<<-4. Economic Principles;->>

<<-5. Real Estate Markets and Analysis;->>

<<-6. Valuation Process;->>

<<-7. Property Description;->>

<<-8. Highest and Best Use Analysis;->>

<<-9. Appraisal Statistical Concepts;->>

<<-10. Sales Comparison Approach;->>

<<-11. Site Value;->>

<<-12. Cost Approach;->>

<<-13. Income Approach;->>

<<-14. Valuation of Partial Interest;->>

<<-15. Appraisal Standards and Ethics; and->>

<<-16. Narrative Report Writing.->>

<<-(f) Experience may not be substituted for education.->>

<<-(g) The Board shall not grant credit for correspondence courses or for video and remote television educational offerings.->>

<<+In order to be eligible to take the examination for licensure as a licensed real estate appraiser, an applicant shall complete, by the time the application is submitted to the Board, the educational requirements for a licensed real estate appraiser as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

<< NJ ADC 13:40A-3.4 >>

13:40A-3.4 Experience requirements for licensure

<<-(a) In order to be eligible to take the Board-approved examination for the licensing of real estate appraisers, an applicant shall furnish documentation on forms provided by the Board which demonstrate that he or she has accumulated at least 2,000 hours of appraisal experience in no fewer than 24 months.->>

<<-(b) Acceptable appraisal experience includes, but is not limited to, the following: fee and staff appraisal; ad valorem tax appraisal; review appraisal; appraisal analysis; real estate counseling; highest and best use analysis and feasibility analysis.->>

<<-(c) The Board shall award experience credit to ad valorem tax appraisers/appraisals when the applicant demonstrates to the satisfaction of the Board that he or she is using similar techniques as appraisers to value properties and that he or she effectively utilizes the appraisal process.->>

<<-(d) Education may not be substituted for experience.->>

<<-(e) Only appraisal experience which complies with USPAP shall qualify for consideration under (a) above.->>

<<+Each applicant applying for licensure as a licensed real estate appraiser shall complete, by the time the application is submitted to the Board, the experience requirements for a licensed real estate appraiser as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

<< NJ ADC 13:40A-3.6 >>

13:40A-3.6 Temporary visiting licenses

(a) Upon application to the Board and payment of a registration fee, an appraiser licensed in another state may be issued a temporary visiting license for a specific appraisal assignment, provided that the individual submits satisfactory proof to the Board that the individual has a current valid license to practice in another state <<-which has requirements for licensure as a real estate appraiser substantially equivalent to those of New Jersey->>.

(b) An appraiser licensed by another state may apply for no more than three temporary licenses<<+, with a limit of appraising three specific properties per temporary license,+>> within one calendar year, except <<-as provided in (c) below->> <<+that the Board may waive the limitation based on a showing of good cause by the applicant+>>.

(c) <<-The Board may, in its discretion, waive the requirements of (b) above for good cause shown.->> <<+For purposes of this section, the term "Federally related transaction" shall mean any real estate-related financial transaction which a Federal financial institutions regulatory agency engages in, contracts for, or regulates. An appraiser licensed by another state shall apply for a temporary visiting license without the limitations stated in (b) above if the property to be appraised is part of a Federally related transaction.+>>

(d) (No change.

SUBCHAPTER 4. <<-APPRENTICE->> <<+TRAINEE+>> PERMITS

<< NJ ADC 13:40A-4.1 >>

13:40A-4.1 Purpose and scope<<+; application+>>

<<+(a)+>> The rules in this chapter establish a voluntary real estate appraiser <<-apprentice->> <<+trainee+>> program for individuals in the process of acquiring the appraisal experience required in order to be licensed or certified pursuant to this chapter.

<<+(b) The successful application of and compliance with the rules in this subchapter by a real estate appraiser trainee does not grant the trainee automatic certification or licensure.+>>

<< NJ ADC 13:40A-4.2 >>

13:40A-4.2 <<-Application for apprentice permit; general requirements->> <<+(Reserved)+>>

<<-(a Each applicant for an apprentice permit shall submit, with a completed application form and the permit fee set forth in N.J.A.C. 13:40A-7.1, proof satisfactory to the Board that he or she:->>

<<-1. Is at least 18 years of age;->>

<<-2. Is of good moral character, as established by references from individuals, schools and other records acceptable to the Board;->>

<<-3. Has a high school diploma or its equivalent; and->>

<<-4. Has successfully completed the educational requirements set forth in N.J.A.C. 13:40A-4.3.->>

<< NJ ADC 13:40A-4.3>>

13:40A-4.3 Educational requirements

<<-(a) To be eligible to receive an apprentice permit, an applicant shall have successfully completed a minimum of 75 classroom hours of courses related to real estate appraising as follows:->>

<<-1. One course covering Basic Principles of Appraising at least 30 classroom hours in length;->>

<<-2. One course covering the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP) at least 15 classroom hours in length completed within six months prior to the filing of the application for an apprentice permit; and->>

<<-3. Thirty classroom hours, where the length of the educational offering is at least 15 classroom hours, in a course or courses covering any or all of the following topics: influences on real estate value, legal considerations in appraisal, types of value, economic principles, real estate markets and analysis, valuation process, property description, highest and best use analysis, appraisal statistical concepts, sales comparison approach, site value, cost approach, income approach, valuation of partial interests, and appraisal standards and ethics.->>

<<-(b) The Board shall grant credit for the courses required pursuant to (a) above only if the individual has successfully completed an examination pertinent to that educational offering.->>

<<-(c) An applicant may obtain credit for the classroom hour requirement from any of the following: colleges, universities, community colleges or junior colleges accredited by the New Jersey Department of Higher Education or any State accrediting agency approved by the Board; real estate appraisal or real estate related organizations as approved by the Board; State or Federal agencies or commissions as approved by the Board; and proprietary schools as approved by the Board.->>

<<-(d) The Board shall not grant credit for correspondence courses or for video and remote television educational offerings.->>

<<+Each applicant applying for a trainee permit shall complete, by the time the application is submitted to the Board, the educational requirements for a trainee as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

<< NJ ADC 13:40A-4.4 >>

13:40A-4.4 Annual <<-apprentice->> <<+trainee+>> permit renewal

All <<-apprentice->> <<+trainee+>> permits shall be valid for a period of one year. <<-An apprentice->> <<+A trainee+>> may renew his or her annual permit a maximum total of three times, upon submission to the Board of a renewal application, the permit renewal fee, and a log in the form set forth in N.J.A.C. 13:40A-4.7.

<< NJ ADC 13:40A:4.5 >>

13:40A:4.5 Responsibilities of <<-apprentice->> <<+trainee+>>

(a) The holder of <<-an apprentice->> <<+a trainee+>> permit issued by the Board shall work only under the "direct supervision," as that term is defined in N.J.A.C. 13:40A-4.6, of a "supervising appraiser," who shall be an individual licensed or certified <<+in good standing+>> by <<- this->> <<+the+>> Board <<+and+>> who has acknowledged in writing <<-his->> <<+an+>> agreement to perform the responsibilities of a <<-supervisor->> <<+supervising appraiser+>> set forth in <<+ N.J.A.C.+>> 13:40A-4.6. Prior to commencing any work as <<-an apprentice->> <<+a trainee+>>, the holder of <<-an apprentice->> <<+a trainee+>> permit shall inform the Board in writing of the identity of any individuals who have agreed to serve as a "supervising appraiser" for the <<-apprentice->> <<+trainee+>>. The holder of <<- an apprentice->> <<+a trainee+>> permit shall inform the Board in writing, within seven days, in the event that any individual previously designated as a "supervising appraiser" ceases to agree to perform the responsibilities of a "supervising appraiser," or in the event that any individual not previously designated as a "supervising appraiser" agrees to supervise the work product of the <<-apprentice->> <<+trainee+>>.

(b) The holder of <<-an apprentice->> <<+a trainee+>> permit issued by the Board shall have the following duties and responsibilities:

1. The <<-apprentice->> <<+trainee+>> shall maintain and submit to the Board upon application for permit renewal a log which meets the requirements set forth in N.J.A.C. 13:40A-4.7;

2. The <<-apprentice->> <<+trainee+>> shall ensure that the log is available at all times for inspection by the Board;

3. When performing appraisal assignments, the <<-apprentice->> <<+ trainee+>> shall carry <<-on his person->> the permit issued by the Board;

4. In the event a <<-supervisor->> <<+supervising appraiser+>> can no longer provide direct supervision to <<-an apprentice->> <<+a trainee+>>, the <<-apprentice->> <<+trainee+>> shall return the permit within 30 days to the Board; and

5. The Board shall reissue the permit to the <<-apprentice->> <<+ trainee+>> when the <<-apprentice->> <<+trainee+>> has obtained a new supervising appraiser.

<< NJ ADC 13:40A-4.6 >>

13:40A-4.6 Responsibilities of supervising appraiser

(a) Any individual designated as a "supervising appraiser" by the holder of <<-an apprentice->> <<+a trainee+>> permit shall acknowledge in writing to the Board that he or she agrees to perform all responsibilities set forth in (b) below.

(b) A supervising appraiser shall have the following duties and responsibilities:

1. The <<-supervisor->> <<+supervising appraiser+>> shall at all times be responsible for and provide direct supervision of the work performed by the <<-apprentice->> <<+trainee+>>. For purposes of this section, <<-to "directly supervise"->> <<+"direct supervision"+>> means:

i. To personally review the work product of the <<-apprentice->> <<+ trainee+>>; and

ii. To approve and sign each appraisal report including work product prepared by the <<-apprentice->> <<+trainee+>> or in which the <<- apprentice->> <<+trainee+>> has made a professional contribution and to sign all such reports and certify that all such reports have been independently and impartially prepared in compliance with the Uniform Standards of Professional Appraisal Practice, these rules and applicable statutory standards.

2. The <<-supervisor->> <<+supervising appraiser+>> shall, at least once a month, sign the log required to be kept by the <<- apprentice->> <<+trainee+>> pursuant to N.J.A.C. 13:40A-4.7 and shall set forth thereon his or her license or certification number.

3. The <<-supervisor->> <<+supervising appraiser+>> shall provide the <<-apprentice->> <<+trainee+>> with a copy of any final appraisal report in which the <<-apprentice's->> <<+trainee's+>> work product has been utilized or in which the <<-apprentice->> <<+trainee+>> made a professional contribution.

4. The <<-supervisor->> <<+supervising appraiser+>> shall immediately notify the Board <<+and his or her trainee(s)+>>, in writing, in the event that he or she ceases to perform <<+or is unable to perform+>> the responsibilities set forth in this section.

<< NJ ADC 13:40A-4.7 >>

13:40A-4.7 Real estate appraiser <<-apprentice->> <<+trainee+>> log

(a) A real estate appraiser <<-apprentice->> <<+trainee+>> shall maintain a log on forms provided by the Board which shall include the following information concerning each appraisal assignment in which the <<- apprentice->> <<+trainee+>> participates:

1.-5. (No change.)

(b) Appraisal logs submitted to the Board shall indicate the nature of the <<-apprentice's->> <<+trainee's+>> participation in each assignment and the <<-apprentice->> <<+trainee+>> shall set forth within the log, for each assignment, information indicating whether the <<- apprentice->> <<+trainee+>> was involved in obtaining, calculating, or preparing:

1.-6. (No change.)

7. Income analysis (only for <<-apprentices->> <<+trainees+>> whose experience includes income properties);

8.-10. (No change.)

<< NJ ADC 13:40A-4.8 >>

13:40A-4.8 Continuing education requirements

<<-(a) An individual holding an apprentice permit for more than two years shall complete, during the third and fourth years that the apprentice permit is held, the equivalent of 14 classroom hours of continuing education instruction per year in programs covering topics set forth in (b) below. Each educational program shall be at least two hours in length. Credit for the classroom hour requirements shall be obtained from any of the following: colleges, universities, community or junior colleges, real estate appraisal or real estate-related organizations, State or Federal agencies or commissions, and proprietary schools.->>

<<-(b) Credit shall be granted for continuing educational programs which cover real estate appraisal topics such as the following: ad valorem taxation, arbitration, business courses related to the practice of real estate appraisal, construction estimating, ethics and standards of professional practice, land use planning, zoning and taxation, management, leasing, brokerage, timesharing, property development, real estate law, real estate appraisal (valuations/evaluations), real estate litigation, real estate financing and investment, real estate appraisal related computer applications, real estate securities and syndication, and real property exchange.->>

<<-(c) Continuing education credit shall be granted for participation, other than as a student, in real estate appraisal educational processes and programs such as the following: teaching, program development, and authorship of textbooks.->>

<<-(d) The Board shall grant continuing education credit for correspondence courses or for video, CD ROM, or on-line learning and remote educational offerings provided that the course meets at least one of the following conditions:->>

<<-1. The course is presented to an organized group in an instructional setting with a person qualified and available to answer questions, provide information, and monitor student attendance, and meets the requirements for continuing education courses established by the Appraiser Qualifications Board ("AQB"); or->>

<<-2. The course either has been presented by an accredited college or university that offers correspondence courses and/or remote educational offerings in other disciplines, or has received either the American Council on Education's Program on Non Collegiate Sponsored Instruction (ACE/PONSI) approval for college credit or the AQB's approval through the AQB Course Approval Program; and the course satisfies the following requirements:->>

<<-i. The course is equivalent to a minimum of two hours in length and meets the requirements for real estate appraisal-related courses established by the Appraiser Qualifications Board; and->>

<<-ii. If a written examination is given, the student shall successfully complete the written examination proctored by an official approved by the presenting college or university or by the sponsoring organization consistent with the requirements of the course accreditation.->>

<<+An individual holding a trainee permit for more than two years shall complete, by the time the application is submitted to the Board, during the third and fourth years that the trainee permit is held, the continuing education requirements as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

SUBCHAPTER 5. CONTINUING PROFESSIONAL EDUCATION

<< NJ ADC 13:40A-5.1 >>

13:40A-5.1 Requirements for licensure and certification renewal

(a) The purpose of continuing education activities is to ensure that the appraiser participates in a program that maintains and increases <<-his or her->> <<+the appraiser's+>> skill, knowledge and competency in real estate appraising.

<<-(b) The Board shall not issue a license or certificate renewal for any biennial period unless the applicant submits, with the renewal application, proof that he or she completed courses of continuing professional education of the types and number of credits hereinafter specified, unless an extension has been granted pursuant to N.J.A.C. 13:40A-5.10. Proof of completion of the required number of continuing education credits shall be in the form outlined in N.J.A.C. 13:40A-5.8.->>

<<+(b) A licensed or certified real estate appraiser shall confirm on the renewal application that the licensed or certified real estate appraiser has completed all continuing education requirements pursuant to this subchapter during the biennial period preceding application for renewal.+>>

<< NJ ADC 13:40A-5.2 >> 1

3:40A-5.2 <<-Prior to January 1, 1998--continuing education; credit-hour requirements; carryover prohibited->> <<+(Reserved)+>>

<<-(a) Except as set forth in (e) below, all licensed and certified real estate appraisers shall be required to complete a minimum of 20 hours of approved continuing education activities within each biennial renewal period.->>

<<-(b) A maximum of four hours of continuing education credit will be awarded in any biennial period to a licensee who attends any courses relating to The Uniform Standards of Professional Appraisal Practice (USPAP).->>

<<-(c) All courses must be a minimum of three and one-half hours in length. One hour of credit shall be awarded for each classroom hour of instruction provided in any approved offering.->>

<<-(d) Applicants who participate in continuing education activities beyond minimum requirements shall not carry over credit into future renewal cycles.->>

<<-(e) An applicant renewing a license or certificate for the first time shall submit proof of completion of continuing education requirements as follows:->>

<<-1. If the initial license or certificate was issued during the first year of a biennial period: proof of 20 hours;->>

<<-2. If the initial license or certificate was issued during the first six months of the second year of a biennial period: proof of 10 hours; and->>

<<-3. If the initial license or certificate was issued during the last six months of the second year of a biennial period, no continuing education hours are required for renewal.->>

<<-(f) The requirements of this section are effective through December 31, 1997. New Rule, R.1994 d.251, effective May 16, 1994.->>

<< NJ ADC 13:40A-5.3 >>

13:40A-5.3 <<-Effective January 1, 1998--continuing education;->> <<+ Continuing education;+>> credit-hour requirements; carryover prohibited

<<-(a) Except as set forth in (f) below, all licensed and certified real estate appraisers shall be required to complete a minimum of 28 hours of approved continuing education activities within each biennial renewal period.->>

<<-(b) The Board shall award a maximum of 15 hours of continuing education credit once every other biennial period for the 15-hour course on USPAP which is required by N.J.A.C. 13:40A-5.4. This credit shall be granted in the biennial period in which the course is taken. No additional continuing education credit shall be awarded in said biennial period for additional courses a licensee may take related to USPAP.->>

<<-(c) A licensee may take additional courses or seminars in USPAP, including "refresher" and "update" courses or seminars, in any biennial licensure period; however, the licensee may receive a maximum of only four hours of continuing education credit for USPAP courses taken in a period other than the period in which the licensee completes the 15-hour USPAP course required by N.J.A.C. 13:40A-5.4.->>

<<-(d) All courses must be a minimum of three and one-half hours in length. One hour of credit shall be awarded for each classroom hour of instruction provided in any approved offering.->>

<<-(e) Applicants who participate in continuing education activities beyond minimum requirements may not carry over credit into future renewal cycles.->>

<<-(f) An applicant renewing a license or certificate for the first time shall submit proof of completion of continuing education as follows:->>

<<-1. If the initial license or certificate was issued during the first year of a biennial period: proof of 28 hours;->>

<<-2. If the initial license or certificate was issued during the first six months of the second year of biennial period: proof of 14 hours; and->>

<<-3. If the initial license or certificate was issued during the last six months of the second year of a biennial period, no continuing education hours are required for renewal.->>

<<-(g) The requirements of this section are effective as of January 1, 1998.->>

<<+Each applicant applying for renewal as a licensed or certified real estate appraiser shall be required to complete, by the time the renewal application is submitted to the Board, the continuing education requirements for either the certified residential, certified general, or the licensed real estate appraiser as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

<< NJ ADC 13:40A-5.4 >>

13:40A-5.4 Special course requirement; Uniform Standards of Professional Appraisal Practice

<<-(a) At least once every six years, all licensed and certified real estate appraisers shall be required to attend a 15-hour minimum length course and pass an examination, given in conjunction with the course, on the Uniform Standards of Professional Appraisal Practice.->>

<<-(b) On or after January 1, 1998, all->> <<+All+>> licensed and certified real estate appraisers shall be required to attend a minimum <<- 15->> <<+seven+>> hour length course <<-and pass an examination, given in conjunction with the course,->> on the Uniform Standards of Professional Appraisal Practice every <<-other biennial renewal period->> <<+two years+>>.

<< NJ ADC 13:40A-5.5 >>

13:40A-5.5 Pre-approval of course offerings

(a) The Board shall maintain a list of all approved courses, lecturers and programs at the Board's offices and shall furnish this information <<+to the licensees or certificate holders+>> upon request.

(b) (No change.)

(c) Determinations as to whether to award credit for an offering which has not been pre-approved shall be <<-entirely->> within the Board's discretion <<+to determine whether the offering is deemed to be consistent with the purpose of continuing education+>>.

<< NJ ADC 13:40A-5.7 >>

13:40A-5.7 Sources of continuing education

(a) The licensee or certificate holder may obtain continuing education credits for the following:

1.-5. (No change.)

6. Participation, other than as a student, in appraisal education processes and programs, as approved by the Board.

i. (No change.)

ii. No more than <<-10 hours of credit->> <<+one-half of the total hours of credit required+>> per biennial renewal cycle may be awarded for activities qualifying under this paragraph; and

7. Courses approved for initial certification and licensing<<-, as referenced in N.J.A.C. 13:40A-2.3(e), 2A.3(d) and 3.3(e) provided the applicant has not previously taken the course in the six year period immediately preceding the biennial renewal deadline->>.

(b) (No change.)

<< NJ ADC 13:40A-5.8 >>

13:40A-5.8 Required documentation

<<+(a) A licensee or certificate holder shall retain documentation for at least four years of the continuing education hours which the licensee or certificate holder completes in order to verify program attendance and/or activity completion. Each licensee or certificate holder shall submit such documentation to the Board upon request. The Board shall review the records of the licensees and/or certificate holders from time to time, on a random basis, to determine compliance with

continuing education requirements.+>>

Recodify existing (a)-(d) as <<+(b)-(e)+>> (No change in text.)

<< NJ ADC 13:40A-5.9 >>

13:40A-5.9 Responsibilities of continuing education providers

(a) All providers of continuing education courses shall:

1. (No change.)

2. Submit, <<+on forms provided by the Board,+>> for each course for which appraisal is sought, the following for evaluation by the Board;

i.-vi. (No change.)

3. (No change.)

<<+(b) All continuing education courses shall be taught in public facilities.+>>

SUBCHAPTER 6. STANDARDS FOR APPRAISALS

<< NJ ADC 13:40A-6.1 >>

13:40A-6.1 General requirements

(a) The appraiser shall ensure that all appraisals shall, at a minimum conform to the Uniform Standards of Professional Appraisal Practice (USPAP) in effect <<+on+>> the date on which the appraisal was prepared, which standards are incorporated herein by reference.

(b) An appraiser's failure to comply with the provisions of <<-this subchapter->> <<+USPAP+>> may be construed to be professional misconduct in violation of N.J.S.A. 45:1-21(e).

SUBCHAPTER 7. GENERAL PROVISIONS

<< NJ ADC 13:40A-7.1 >>

13:40A-7.1 Fee schedule

(a) Charges for credentialing, certification, licensure and other services are as follows:

1.-18. (No change.)

19. Trainee permit fee; annual $100.00

<< NJ ADC 13:40A-7.2 >>

An appraiser shall include on all appraisal reports, <<+at the place+>> wherever <<-his or her->> <<+the appraiser's+>> signature appears, the appraiser's designation and state license or certification number. The appraiser shall use only the designations permitted pursuant to N.J.A.C. 13:40A-<<-6.3->><<+7.3+>>.

<< NJ ADC 13:40A-7.3 >>

13:40A-7.3 Use of designations and abbreviations

(a) The following shall apply in connection with the use of designations and abbreviations on appraisal reports or in any advertisement or public representation:

1.-3. (No change.)

4. An individual who is not certified or licensed pursuant to the Real Estate Appraisers Act, N.J.S.A. 45:14F-1 et seq., <<+and this chapter+>> shall not use the designations or abbreviations set forth in (a)1 above or any other designation or abbreviation using similar combinations of words or letters to imply that the individual is state certified or licensed.

5. (No change.)

6. <<-Apprentice->> <<+Trainee+>> real estate appraisers shall use the full designation "<<-apprentice->> <<+trainee+>> real estate appraiser" followed by their permit number. No abbreviation shall be permitted.

<< NJ ADC 13:40A-7.4 >>

<<+13:40A-7.4 Criteria for qualifying education instructor and USPAP instructors+>>

<<+(a) An individual applying to be an instructor of qualifying education courses shall, at a minimum, have one of the following requirements:+>>

<<+1. A baccalaureate degree in any field and three years of experience directly related to the subject matter to be taught;+>>

<<+2. A masters degree in any field and one year of experience directly related to the subject matter to be taught;+>>

<<+3. A masters or higher degree in a field that is directly related to the subject matter to be taught;+>>

<<+4. Five years of real estate appraisal teaching experience directly related to the subject matter to be taught; or+>>

<<+5. Seven years of real estate appraisal experience directly related to the subject matter to be taught.+>>

<<+(b) Instructors for qualifying education, with an appraisal license or certification, shall be in good standing.+>>

<<+(c) Approvals to teach as an instructor of qualifying education courses shall be issued by the Board for two year periods and shall be renewed biennially upon submission by the instructor of an application for re- approval.+>>

<<+(d) Instructors for qualifying education who teach either full time or part time as part of the faculty staff at colleges, universities, community colleges or junior colleges accredited by the Commission on Higher Education need not satisfy the criteria set forth in (a) above. Adjunct instructors shall not qualify for this exemption and shall satisfy the criteria in (a) above in order to qualify as an instructor of education courses.+>>

<<+(e) Instructors for USPAP courses shall be required to satisfy the USPAP instructor criteria as established by "The Real Property Appraiser Qualification Criteria and Interpretation of the Criteria" as promulgated by the AQB of the Appraisal Foundation as amended and supplemented, which are incorporated herein by reference as part of this rule.+>>

<< NJ ADC 13:40A-7.5 >>

<<+13:40A-7.5 (Reserved)+>>

<< NJ ADC 13:40A-7.6 >>

<<+13:40A-7.6 License or certification renewal+>>

<<+(a) Licenses and certifications shall be renewed biennially upon a form provided by the Board. Each applicant shall attest that the applicable continuing education requirements have been completed.+>>

<<+(b) The Board shall send a notice of renewal to each of its licensees or certificate-holders, as applicable, at least 60 days prior to the expiration of the license or certificate. If the notice to renew is not sent at least 60 days prior to the expiration date, no monetary penalties or fines shall apply to the holder for failure to renew.+>>

<<+(c) Every holder of a license or certificate, issued or renewed by the Board, who seeks renewal shall submit a renewal application and pay a renewal fee prior to the date of expiration of the license or certificate. If the holder does not renew the license or certificate prior to its expiration date, the holder may renew it within 30 days of its expiration date by submitting a renewal application and paying a renewal fee and a late fee. Any license or certification not renewed within 30 days of its expiration date shall be suspended without a hearing.+>>

<<+(d) Any individual who continues to practice with an expired license or certification after 30 days following its expiration date shall be deemed to be engaged in the unlicensed practice of real estate appraising, even if no notice of suspension has been provided to the individual.+>>

<<+(e) Renewal applications for all licenses or certificates shall provide the applicant with the option of either active or inactive renewal. A renewal applicant electing to renew as inactive shall not engage in real estate appraising within the State.+>>

<<+(f) An applicant who selects the inactive renewal option shall remain on inactive status for the entire renewal period unless, upon application to the Board, the Board permits the inactive applicant to return to active status. As a precondition to return to active status, the applicant shall present satisfactory proof that he or she has maintained proficiency by completing the continuing education hours required for the renewal of an active license or certification.+>>

<< NJ ADC 13:40A-7.7 >>

<<+13:40A-7.7 Reinstatement+>>

<<+Pursuant to the Uniform Enforcement Act, N.J.S.A. 45:1-1 et seq., the Board may reinstate the license or certification of an applicant whose license or certificate has been suspended for failure to renew provided that the applicant otherwise qualifies for licensure or certification.+>>

<< NJ ADC 13:40A-7.8 >>

<<+13:40A-7.8 Denial or revocation of license or certification; record of conviction of certain crimes+>>

<<+(a) An applicant for licensure or certification shall not be eligible for licensure or certification and any holder of a license or certification shall have his or her license or certification revoked if the Board determines that criminal history record information exists on file in the Federal Bureau of Investigation, Identification Division, or in the State Bureau of Identification in the Division of State Police, which would disqualify that individual from being licensed or certified.+>>

<<+(b) An applicant or a holder of a license or certification shall be disqualified from licensure or certification if that individual's criminal history record check reveals a record of conviction of any of the following crimes and offenses:+>>

<<+1. In New Jersey, any crime or disorderly persons offense:+>>

<<+i. Involving danger to the person, meaning those crimes and disorderly persons offenses set forth in N.J.S.A. 2C:11-1 et seq., 2C:12-1 et seq., 2C:13-1 et seq., 2C:14-1 et seq., or 2C:15-1 et seq.; or+>>

<<+ii. Involving theft as set forth in Chapter 20 of Title 2C of the New Jersey Statutes; or+>>

<<+iii. Involving any controlled dangerous substances or controlled dangerous substances analog as set forth in Chapter 35 of Title 2C of the New Jersey Statutes except as set forth in paragraph (4) of subsection a of N.J.S.A. 2C:35-10.+>>

<<+2. In any other state or jurisdiction, conduct which, if committed in New Jersey, would constitute any of the crimes or disorderly persons offenses described in (b) above. This is deemed to include convictions for bank fraud, wire fraud, or conspiracy to commit bank fraud or wire fraud.+>>

<<+(c) Notwithstanding the provisions of (b) above, no individual shall be disqualified from licensure or certification on the basis of any conviction disclosed by a criminal history record check if the individual has affirmatively demonstrated to the Board clear and convincing evidence of rehabilitation. In determining whether an individual has affirmatively demonstrated rehabilitation, the following factors shall be considered:+>>

<<+1. The nature and responsibility of the position which the convicted individual would hold;+>>

<<+2. The nature and seriousness of the offense;+>>

<<+3. The circumstances under which the offense occurred;+>>

<<+4. The date of the offense;+>>

<<+5. The age of the individual when the offense was committed;+>>

<<+6. Whether the offense was an isolated or repeated incident;+>>

<<+7. Any social conditions which may have contributed to the offense; and+>>

<<+8. Any evidence of rehabilitation, including good conduct in prison or in the community, counseling or psychiatric treatment received, acquisition of additional academic or vocational schooling, successful participation in correctional work-release programs, or the recommendation of persons who have had the individual under their supervision.+>>

<<+(d) The Board may refuse to admit a person to an examination or may refuse to issue or may suspend or revoke any certificate or license issued by the Board upon proof that the applicant or holder of such certificate or license:+>>

<<+1. Has obtained a certificate, license or authorization to sit for an examination, as the case may be, through fraud, deception, or misrepresentation;+>>

<<+2. Has engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise or false pretense;+>>

<<+3. Has engaged in gross negligence, gross malpractice or gross incompetence which damaged or endangered the life, health, welfare, safety or property of any person;+>>

<<+4. Has engaged in repeated acts of negligence, malpractice or incompetence;+>>

<<+5. Has engaged in professional or occupational misconduct as may be determined by the Board;+>>

<<+6. Has been convicted of, or engaged in acts constituting, any crime or offense involving moral turpitude or relating adversely to real estate appraising. For the purposes of this subsection a judgment of conviction or a plea of guilty, non vult, nolo contendere or any other such disposition of alleged criminal activity shall be deemed a conviction;+>>

<<+7. Has had the authority to engage in real estate appraising revoked or suspended by any other state, agency, or certifying authority for reasons consistent with this section;+>>

<<+8. Has violated or failed to comply with the provisions of any statute or regulation administered by the Board;+>>

<<+9. Is incapable for medical or any other good cause, of discharging the functions of a licensee or certificate holder in a manner consistent with the public's health, safety and welfare;+>>

<<+10. Has violated any provision of P.L. 1983, c.320 (N.J.S.A. 17:33A-1 et seq.) or any insurance fraud prevention law or act of another jurisdiction or has been adjudicated, in civil or administrative proceedings, of a violation of P.L. 1983, c.320 (N.J.S.A. 17:33A-1 et seq.) or has been subject to a final order, entered in civil or administrative proceedings, that imposed civil penalties under that act against the applicant or holder;+>>

<<+11. Is presently engaged in drug or alcohol use that is likely to impair the ability to practice the profession or occupation with reasonable skill and safety. For purposes of this subsection, the term "presently" means at this time or any time within the previous 365 days;+>>

<<+12. Has permitted an unlicensed person or entity to perform an act for which a license or certification is required by the Board, or aided and abetted an unlicensed person or entity in performing such an act; or+>>

<<+13. Advertised fraudulently in any manner.+>>

SUBCHAPTER 8. CERTIFICATION OR LICENSURE BY ENDORSEMENT

<< NJ ADC 13:40A-8.1 >>

13:40A-8.1 Certification or licensure by endorsement

(a) An individual possessing a certification to practice general real estate appraising or residential real estate appraising, or an individual possessing a license to practice residential real estate appraising in any state of the United States other than New Jersey, may apply for, and shall be granted, New Jersey certification by endorsement or licensure by endorsement provided that the individual's certification or license to practice is in good standing in all jurisdictions in which that individual holds a certification or licensure, and:

1. <<-Any one state in which the individual holds a certification or license has entered into a reciprocity agreement with the State of New Jersey->> <<+Undergoes a criminal history background check+>>; <<- or->> <<+and+>>

2. (No change.)

(b) Appraisers licensed by endorsement <<-and through the reciprocal licensing process->> shall be required to complete the continuing education requirements set forth in N.J.A.C. 13:40A-5.

34 N.J.R. 435(a)

END OF DOCUMENT


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Posted January 22, 2002