The regulation of appraisal management companies continues to be a hot issue in many state legislatures.  The legislation currently being considered by legislatures would primarily set standards for the registration and oversight of appraisal management companies.  These bills would also provide a template for the setting of registration and renewal fees.  Although some state legislatures have taken the fee issue further by looking at also requiring surety bonds.  In most cases, relocation management companies are excluded from the standards and paying the fees.

A majority of the legislation that has been either recently enacted or is still pending is based on the Appraisal Management Company Registration & Regulation Model Act developed by the Appraisal Institute.  For a copy of the Act, please go to the document found on the Appraisal Institute website at: http://www.appraisalinstitute.org/newsadvocacy/downloads/StateIssues/Model_Provisions_for_AMCs_11_4_10.doc.  Below is a sampling of legislation being considered by state legislatures to regulate and/or set registration fees for appraisal management companies.

Kansas
The Kansas Appraisal Management Company Registration Act (SB 345) was introduced in the Kansas Senate on January 26 and referred to the Senate Committee on Federal and State Affairs.  The Senate Committee on Federal and State Affairs amended and passed SB 345 on February 13.  The bill passed the Senate on February 23 by 40 to 0 and was received and introduced in the Kansas House.  On March 21, the House passed the bill 115 to 9 and on March 30 it was presented to the Governor.  The legislation would not apply to relocation management companies.

The Kansas Appraisal Management Company Registration Act was drafted and approved by the Kansas Real Estate Appraisal Board.  The legislation would institute a process for the registration and regulation of companies that provide real estate appraisal management services.  It would direct the Kansas Real Estate Appraisal Board to establish a registration fee for appraisal management companies.  The registration fee could be no more than $3,500.

For the most recent copy of SB 345, go to: http://www.kslegislature.org/li/b2011_12/measures/sb345/.  For a copy of the final draft by the Kansas Appraisal Management Company Registration Act, go to: http://www.kansas.gov/kreab/pdf/AMC%20legislation%20FINAL.pdf. 

Mississippi
SB 2903 would permit the Mississippi Real Estate Commission to charge real estate appraisal companies a registration and renewal fee up to $1,500.  It would also require a real estate appraisal company to submit with its registration application a surety bond of $50,000.  SB 2903 passed the Senate on March 14 and on March 19 was referred to the House Committee on Ways and Means.  On March 29, SB 2903 passed as amended.  A similar House bill, HB 1286, died in the Ways and Means Committee on March 6.  It is unclear at the time of this posting as to whether SB 2903 would apply to relocation management companies.

New Jersey
The Appraisal Management Company Registration Act (A 1756) was introduced in the New Jersey Assembly on January 10, 2012 and referred to the Regulated Professions Committee.  It would set a registration and processing fee for appraisal management companies at no more than $500 each.  Relocation management companies would not have to register or pay a processing fee under the legislation.

Oregon
The temporary administrative rules regarding registration and application fees remain in effect until June 27, 2012.  The fee varies depending on the number of appraisals performed by the appraisal management company.  The temporary rules do not apply to relocation management companies.

A business entity that has not previously conducted business in Oregon, a business entity performing appraisal management services for under 250 instances of real estate appraisal activity in Oregon in the previous calendar year, or a business entity otherwise serving as a third-party broker of real estate appraisal activity for under 250 instances of real estate appraisal activity in Oregon in the previous calendar year, shall pay to the Board:

a)A nonrefundable application fee of $250;

b)A nonrefundable registration fee of $500.

A business entity performing appraisal management services for 250 to 1,000 instances of real estate appraisal activity in Oregon in the previous calendar year, shall pay to the Board:

a)A nonrefundable application fee of $1,000;

b)A nonrefundable registration fee of $1,500.

A business entity performing appraisal management services for 1,000 to 5,000 instances of real estate appraisal activity in Oregon in the previous calendar year, shall pay to the Board:

a)A nonrefundable application fee of $1,500;

b)A nonrefundable registration fee of $3,500.

A business entity performing appraisal management services for 1,000 to 5,000 instances of real estate appraisal activity in Oregon in the previous calendar year, shall pay to the Board:

a)A nonrefundable application fee of $2,000;

b)A nonrefundable registration fee of $6,000.

To access a copy of the temporary regulations, please go to: http://oregonaclb.org/aclb_prod/images/stories/pdf/temprulesamc.pdf

Pennsylvania
The Appraisal Management Company Registration Act (H 398) was approved by the Governor on February 2.  The Pennsylvania Senate had passed H 398 by a vote of 50 to 0 on January 18 and the State House of Representatives by 190 to 4 on January 23.  H 398 requires the registration of appraisal management companies with a fee of $1,000 per registration or registration renewal.  The new law does not apply to relocation management companies.

For a copy of the most recent version of the Appraisal Management Company Registration Act, go to: http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&bn=398

South Carolina
The Appraisal Management Companies Act (H 3717) was introduced in the South Carolina House of Representatives on February 22, 2011 and referred to the House Committee on Labor Commerce and Industry. H 3717 would establish the South Carolina Real Estate Appraisal Management Services Board to regulate real estate appraisal management companies.  H 3717 would not apply to relocation management companies.

Posted by Tristan North