GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	3 

SENATE BILL 595
State and Local Government Committee Substitute Adopted 4/12/99
House Committee Substitute Favorable 6/21/00

Short Title:  Real Estate Appraisers.	(Public)

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Sponsors:

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Referred to:  

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March 29, 1999

A BILL TO BE ENTITLED
AN ACT TO AMEND THE LAWS REGULATING REAL ESTATE APPRAISERS.
The General Assembly of North Carolina enacts:
Section 1.  Article 1 of Chapter 93E of the General Statutes reads as rewritten: 
"ARTICLE 1.
"Real Estate Appraiser.
"§ 93E-1-1.  Title.
This Chapter shall be known and may be cited as the 'North Carolina Appraisers Act'.
"§ 93E-1-2:  Repealed by Session Laws 1995, c. 482, s. 12.
"§ 93E-1-2.1. Accreditation required of real estate appraisers.
Beginning October 1, 1995, it shall be unlawful for any person in this State to act as a real estate appraiser, to directly or indirectly engage or assume to engage in the business of real estate appraisal, or to advertise or hold himself or herself out as engaging in or conducting the business of real estate appraisal without first being accredited by the Appraisal Board under the provisions of this Chapter.  It shall also be unlawful, where any portion of real property is located within this State, for any person to perform any of the acts listed above without first being accredited by the Appraisal Board under the provisions of this Chapter.
"§ 93E-1-3.  When accreditation not required.
(a)	No trainee registration, license, or certificate shall be issued under the provisions of this Chapter to a partnership, association, corporation, firm, or group. However, nothing herein shall preclude an accredited appraiser from rendering appraisals for or on behalf of a partnership, association, corporation, firm, or group, provided the appraisal report is prepared by a State-licensed or State-certified real estate appraiser or by a registered trainee under the immediate personal direction of a State-licensed or State-certified real estate appraiser and is reviewed and signed by that State-licensed or State-certified appraiser.
	(c)	Nothing in this Chapter shall preclude a real estate broker or salesman licensed under Chapter 93A of the General Statutes from performing a comparative market analysis, provided the person does not hold himself or herself out as an accredited appraiser.
(d)	Nothing in this Chapter shall abridge, infringe upon, or otherwise restrict the right to use the term 'certified ad valorem tax appraiser' or any similar term by persons certified by the Department of Revenue to perform ad valorem tax appraisals, provided that the term is not used in a manner that creates the impression of certification by the State to perform real estate appraisals other than ad valorem tax appraisals.
(e)	Nothing in this Chapter shall entitle an accredited appraiser to appraise real estate for ad valorem tax purposes unless the person has first been certified by the Department of Revenue pursuant to G.S. 105-294.
(f)	Accreditation is not required under this Chapter for: 
(1)	Any person, partnership, association, or corporation that performs appraisals of property owned by that person, partnership, association, or corporation.
(2)	Any court-appointed commissioner who conducts an appraisal pursuant to a judicially ordered evaluation of property.
(3)	Any person to qualify as an expert witness by a trier of fact, if otherwise qualified.  A written appraisal report may be prepared by a person who is not accredited under this Chapter if the report is prepared pursuant to an order issued by a trier of fact.
(4)	A person who appraises standing timber so long as the appraisal does not include a determination of value of any land.
(5)	Any person employed by a lender in the performance of appraisals with respect to which federal regulations do not require a licensed or certified appraiser.
(6)	A person who performs ad valorem tax appraisals and is certified by the Department of Revenue under G.S. 105-294 or G.S. 105-296.
Any person who is accredited under this Chapter and performs any of the activities set forth in subdivisions (1) through (5) of this subsection shall comply with all of the provisions of this Chapter.
"§ 93E-1-3.1.  Prohibited use of title; permissible use of title.
(a)	It shall be unlawful for any person to assume or use the title 'registered trainee', 'State-licensed real estate appraiser', 'State-certified real estate appraiser', or any title designation or abbreviation likely to create the impression of registration, licensure, or certification as a real estate appraiser unless the person is registered, licensed, or certified by the Appraisal Board in accordance with the provisions of this Chapter.  The Board may adopt for the exclusive use of persons licensed or certified under the provisions of this Chapter, a seal, symbol, or other mark identifying the user as a State-licensed or State-certified real estate appraiser.
(b)	Any person certified as a real estate appraiser by an appraisal trade organization shall retain the right to use the term 'certified' or any similar term in identifying the person to the public, provided that:
(1)	In each instance wherein the term is used, the name of the certifying organization or body is prominently and conspicuously displayed immediately adjacent to the term; and
(2)	The use of the term does not create the impression of certification by the State.
This subsection does not entitle any person certified only by a trade organization to conduct an appraisal that requires accreditation under the provisions of this Chapter.
(c)	The term 'registered trainee', 'State-licensed real estate appraiser', 'State-certified real estate appraiser', or any similar term shall not be used following or immediately in connection with the name of a partnership, association, corporation, or other firm or group, or in a manner that might create the impression of registration, licensure, or certification as a real estate appraiser under this Chapter.
"§ 93E-1-4.  Definitions.
	""	"	""	""	"	"	"	"	"	"	""	""	"	"	"	"	"	"	"	""The following definitions shall apply in this Article:
(1)	Accreditation. – The granting of authorization by the Board to act as a registered trainee or State-licensed or State-certified real estate appraiser under the provisions of this Chapter.
(2)	Accredited appraiser. – A person who has been granted accreditation under this Chapter as a registered trainee or State-licensed or State-certified real estate appraiser.
(3)	Appraisal or real estate appraisal. – The act or process of developing an opinion of value of identified real property or specified interests therein performed for compensation or other valuable consideration.
(4)	Appraisal assignment. – An engagement for which an appraiser is employed or retained to act, or would be perceived by third parties or the public as acting, as a disinterested third party in rendering an unbiased appraisal.
(5) Appraisal Board or Board. – The North Carolina Appraisal Board established under G.S. 93E-1-5.
(6) Appraisal report. – Any communication, written or oral, of an appraisal.
(7) Certificate. – A document issued by the North Carolina Appraisal Board evidencing that the person named therein has satisfied the requirements for certification and bearing a certificate number assigned by the Board.
(8) Certificate holder. – A person certified by the Board under the provisions of this Article.
(9) Comparative market analysis. – The analysis of sales of similar recently sold properties in order to derive an indication of the probable sales price of a particular property by a licensed real estate broker or salesperson for the broker's or salesperson's potential or actual brokerage client or for real property involved in an employee relocation program.
(10) License. – A document issued by the North Carolina Appraisal Board evidencing that the person named therein has satisfied the requirements for licensure as a State-licensed real estate appraiser and bearing a license number assigned by the Board.
(11) Licensee. – A person licensed by the Board under the provisions of this Chapter.
(12) Real estate or real property. – Land, including the air above and ground below and all appurtenances and improvements thereto, as well as any interest or right inherent in the ownership of land.
(13) Real estate appraiser or appraiser. – A person who for a fee or valuable consideration develops and communicates real estate appraisals or otherwise gives an opinion of the value of real estate or any interest therein.
(14) Real estate appraising. – The practice of developing and communicating real estate appraisals.
(15) Residential real estate. – Any parcel of real estate, improved or unimproved, that is exclusively residential in nature and that includes or is intended to include a residential structure containing not more than four dwelling units and no other improvements except those which are typical residential improvements that support the residential use for the location and property type. A time share or residential unit in a condominium, town house, cooperative complex, or planned unit development is considered to be residential real estate.
(16) State-certified general real estate appraiser. –  A person who holds a current, valid certificate as a State-certified general real estate appraiser issued under the provisions of this Chapter.
(17) State-certified residential real estate appraiser. – A person who holds a current, valid certificate as a State-certified residential real estate appraiser issued under the provisions of this Chapter.
(18) State-licensed residential real estate appraiser.  – A person who holds a current, valid license as a State-licensed residential real estate appraiser issued under the provisions of this Article.
(19) Trainee or registered trainee. – A person who holds a current, valid registration as a trainee real estate appraiser under the provisions of this Chapter.
(20) Trainee registration. – The document issued by the North Carolina Appraisal Board evidencing that the person named therein has satisfied the requirements of registration as a trainee real estate appraiser and bearing a registration number assigned by the Board.
"§ 93E-1-5. Appraisal board.
(a)	There is created the North Carolina Appraisal Board for the purposes set forth in this Chapter.  The Board shall consist of seven members. The Governor shall appoint five members of the Board, and the General Assembly shall appoint two members in accordance with G.S. 120-121, one upon the recommendation of the President Pro Tempore of the Senate and one upon the recommendation of the Speaker of the House of Representatives. Each member appointed by the Governor shall be appointed from a different congressional district. The appointee recommended by the Speaker of the House of Representatives and the appointees of the Governor shall be persons who have been engaged in the business of real estate appraising in this State for at least five years immediately preceding their appointment and are also State-licensed or State-certified real estate appraisers. No more than three of the appointees may be members of the same appraiser trade organization, group, or committee at any one time. The appointee recommended by the President Pro Tempore of the Senate shall be a person not involved directly or indirectly in the real estate, real estate appraisal, or the real estate lending industry. Members of the Board shall serve three-year terms, so staggered that the terms of three members expire in one year, the terms of two members expire in the next year, and the terms of two members expire in the third year of each three-year period. The members of the Board shall elect one of their members to serve as chairman of the Board for a term of one year. The Governor may remove any member of the Board appointed by the Governor for misconduct, incompetence, or neglect of duty. The General Assembly may remove any member appointed by it for the same reasons. Successors shall be appointed by the appointing authority making the original appointment. All vacancies occurring on the Board shall be filled, for the unexpired term, by the appointing authority making the original appointment. Vacancies in appointments made by the General Assembly shall be filled in accordance with G.S. 120-122. Initial terms of office shall commence July 1, 1994.
(b)	The Board is an occupational licensing agency governed by Chapter 150B of the General Statutes; its decisions are final agency decisions subject to judicial review under Article 4 of Chapter 150B of the General Statutes.
(c)	Members of the Board shall be paid the per diem, subsistence, and travel allowances at the rates set forth in G.S. 93B-5; provided that none of the expenses of the Board or the compensation or expenses of any officer or employee thereof shall be payable out of the treasury of the State of North Carolina; the total expenses of the administration of this Chapter shall not exceed the total income therefrom; and neither the Board nor any officer or employee thereof shall have any power or authority to make or incur any expense, debt, or other financial obligation binding upon the State of North Carolina.
(d)	The Board shall adopt a seal for its use, which shall bear thereon the words 'North Carolina Appraisal Board'. Copies of all papers in the office of the Board duly certified and authenticated by the seal of the Board shall be received in evidence in all courts and administrative bodies and with like effect as the originals.
(e)	The Board may employ an Executive Director and professional and clerical staff as may be necessary to carry out the provisions of this Chapter and to put into effect the rules that the Board may promulgate. The Board shall fix salaries. The Board shall have the authority to issue to its employees credentials or other means of identification.
(f)	The Board shall be entitled to the services of the Attorney General in connection with the affairs of the Board or may, in its discretion, employ an attorney to assist or represent it in the enforcement of this Chapter.
(f1)	The Board shall have the power to acquire, hold, rent, encumber, alienate, and otherwise deal with real property in the same manner as a private person or corporation, subject only to the approval of the Governor and the Council of State as to the acquisition, rental, encumbering, leasing, and sale of real property.  Collateral pledged by the Board for an encumbrance is limited to the assets, income, and revenues of the Board.
(f2)	The Board may purchase, rent, or lease equipment and supplies and purchase liability insurance or other insurance to cover the activities of the Board, its operations, or its employees.
(g)	The Board may file a complaint for violation of this Chapter before any court of competent jurisdiction, and it may take the necessary legal steps through the proper legal offices of the State to enforce the provisions of this Chapter.
"§ 93E-1-6.  Qualifications for accreditation; applications; application fees; examinations.
(a)	Any person desiring accreditation under this Chapter shall make written application to the Board on the forms as are prescribed by the Board setting forth the applicant's qualifications for accreditation. Each applicant shall satisfy the following qualification requirements:
(1)	Each applicant for licensure as a State-licensed residential real estate appraiser shall: (i) demonstrate to the Board that the applicant possesses the knowledge and competence necessary to perform appraisals of real property, by having satisfactorily completed, within the five-year period immediately preceding the date application is made, a course of instruction approved by the Board, in real estate appraisal principles and practices consisting of at least 90 hours of classroom instruction in subjects determined by the Board, (ii) present evidence satisfactory to the Board of at least 2,000 hours or the minimum requirement imposed by the federal government, whichever is greater, of experience in real estate appraising, and satisfy the additional qualifications as may be imposed by the Board by rule, not inconsistent with any requirements imposed by the federal government; or shall possess education or experience which is found by the Board to be equivalent to the above requirements. 
(2)	Each applicant for certification as a State-certified residential real estate appraiser shall: (i) demonstrate to the Board that the applicant possesses the knowledge and competence necessary to perform appraisals of real property by having satisfactorily completed, within the five-year period immediately preceding the date the application is made, a course of instruction approved by the Board in real estate appraisal principles and practices consisting of at least 120 hours or the minimum requirement as imposed by the federal government, whichever is greater, of classroom instruction in subjects determined by the Board, (ii) present evidence satisfactory to the Board of at least 2,500 hours or the minimum requirement as imposed by the federal government, whichever is greater, of experience in real estate appraising within the five-year period immediately preceding the date application is made, and over a period of at least two calendar years, and (iii) satisfy the additional qualifications criteria as may be imposed by the Board by rule, not inconsistent with any requirements imposed by the federal government; or shall possess education and experience which is found by the Board to be equivalent to the above requirements.
(3)	Each applicant for certification as a State-certified general real estate appraiser shall: (i) demonstrate to the Board that the applicant possesses the knowledge and competence necessary to perform appraisals of all types of real property by having satisfactorily completed, within the five-year period immediately preceding the date application is made, a course of instruction approved by the Board in general real estate appraisal practices consisting of at least 180 hours or the minimum requirement as imposed by the federal government, whichever is greater, of classroom instruction in subjects determined by the Board, (ii) present evidence satisfactory to the Board of at least 3,000 hours, or the minimum requirement as imposed by the federal government, whichever is greater, of experience in real estate appraising within the five-year period immediately preceding the date application is made, and over a period of at least two calendar years, fifty percent (50%) of which shall be in appraising nonresidential real estate, and (iii) satisfy the additional qualifications criteria as may be imposed by the Board by rule, not inconsistent with any requirements imposed by the federal government; or the applicant shall possess education or experience which is found by the Board to be equivalent to the above requirements.
(4)	
				Each applicant for registration as a trainee shall: (i) demonstrate to the Board that the applicant possesses the knowledge and competence necessary to perform appraisals of real property by having satisfactorily completed, within the five-year period immediately preceding the date application is made, a course of instruction approved by the Board in real estate appraisal principles and practices consisting of at least 90 hours of classroom instruction in subjects determined by the Board, and (ii) satisfy any additional qualifications imposed by the Board, by rule, not inconsistent with any requirements imposed by the federal government.
(b)	Each application for accreditation shall be accompanied by a fee of one hundred fifty dollars ($150.00), plus any additional fee as may be necessary to defray the cost of any competency examination administered by a private testing service.
(c)	Any person who files with the Board an application for accreditation shall be required to pass an examination to demonstrate the person's competence. The Board shall also make an investigation as it deems necessary into the background of the applicant to determine the applicant's qualifications with due regard to the paramount interest of the public as to the applicant's competency, honesty, truthfulness, and integrity.  The Board may investigate and consider whether the applicant has: (i) had any disciplinary action taken against any other professional license that he or she holds in this State or any other state; (ii) committed any act which would be grounds for disciplinary action, including the suspension or revocation of accreditation under this Chapter; and (iii) been convicted of or pled guilty to any criminal act.  If the results of the investigation shall be satisfactory to the Board, and the applicant is otherwise qualified, then the Board shall issue to the applicant a trainee registration, license or certificate authorizing the applicant to act as a registered trainee, State-licensed real estate appraiser or a State-certified real estate appraiser in this State. 
(d)	If the applicant fails to demonstrate to the Board that he or she has met the requirements for accreditation under this Chapter, the Board may conduct a hearing on the application prior to making a final decision on whether accreditation should be granted.
"§ 93E-1-6.1.  Trainee supervision.
Registered trainees shall perform all real estate appraisal-related activities under the immediate, active, and personal supervision of a State-licensed or State-certified real estate appraiser.  All appraisal reports prepared by a registered trainee shall be signed by the supervising State-licensed or State-certified real estate appraiser, and the signature of the appraiser shall mean the appraiser accepts and shares responsibility with the trainee for the content of and conclusions in the report.
"§ 93E-1-7.  Accreditation renewal; renewal fees; continuing education; reinstatement; replacement registrations, licenses, and certificates; accreditation history; address changes.
(a)	Trainee registrations, licenses, and certificates issued under this Chapter shall expire on the 30th day of June of every year and shall become invalid after that date unless renewed prior to the expiration date by filing an application with and paying to the Executive Director of the Board the fee of two hundred dollars ($200.00). As a prerequisite to the renewal of a trainee registration or a real estate appraiser license or certificate, the trainee registration holder, the licensee, or the certificate holder must satisfy any continuing education requirements that may be prescribed by the Board under subsection (b) of this section; provided, however, that members of the General Assembly are exempt from this requirement during their term of office. The Board may adopt rules establishing a system of trainee registration, license, and certificate renewal in which trainee registrations, licenses, and certificates expire annually with varying expiration dates.
(b)	The Board may by rule require, as a prerequisite to accreditation renewal, the completion of Board-approved education courses in subject matters determined by the Board, or courses determined by the Board to be equivalent to the instruction, not inconsistent with any requirements of federal authorities.
(c)	All trainee registrations, licenses, and certificates reinstated after the expiration dates shall be subject to a late filing fee of five dollars ($5.00) per month for each month or part thereof that the trainee registration, license, or certificate is lapsed, not to exceed sixty dollars ($60.00). The late filing fee shall be in addition to the required renewal fee. In the event a trainee, licensee, or certificate holder fails to reinstate the trainee registration, license, or certificate within 12 months after the expiration date thereof, the Board may, in its discretion, consider the person as not having been previously accredited, and thereby subject to the provisions of this Chapter relating to the issuance of an original trainee registration, license, or certificate, including the examination requirements set forth herein. Applications to reinstate trainee registrations, licenses, or certificates expired for 12 or more months shall be accompanied by the fee required for an original trainee registration, license, or certificate.
(d)	Replacement trainee registrations, licenses, and certificates may be issued by the Board upon payment of five dollars ($5.00) by the trainee, licensee, or certificate holder. Certification by the Board of accreditation or the accreditation history of a person registered, licensed, or certified under this Chapter shall be made only after the payment of a fee of ten dollars ($10.00) to the Board. 
(e)	Every trainee, licensee, and certificate holder shall give written notice to the Board of any change in his or her business address within 10 business days after the change takes place.
"§ 93E-1-8.   Education program approval and fees.
				(a)	Appraiser prelicensing and precertification courses.
(1)	The Board may, by rule, prescribe minimum standards for the approval, renewal of approval, and withdrawal of approval of schools and other course sponsors and their instructors to conduct appraiser prelicensing and precertification courses required by G.S. 93E-1-6(a).  These standards may address subject matter, program structuring, instructional materials, requirements for satisfactory course completion, instructors' qualifications, adequacy of facilities, and other related matters relevant to the provision of these courses in a manner that best serves the public interest.
(2)	The Board may, by rule, set nonrefundable fees chargeable to private real estate appraisal schools or course sponsors, including appraisal trade organizations, for the approval and renewal of approval of their prelicensing and precertification courses required by G.S. 93E-1-6(a), or equivalent courses.  These fees shall be forty dollars ($40.00) per course for approval and twenty dollars ($20.00) per course for renewal of approval of private schools offering prelicensing and precertification courses required by the Board.  No fees shall be charged for the approval or renewal of approval to conduct appraiser prelicensing or precertification courses where these courses are offered by a North Carolina college, university, junior college, or community or technical college accredited by the Southern Association of Colleges and Schools, or an agency of the federal, State, or local government.
(3)	Any sponsor, including an appraisal trade organization, may request that the Board consider whether its courses are substantially equivalent to the prelicensing and precertification courses required by the Board.  The sponsor shall pay three hundred dollars ($300.00) per course for approval and fifty dollars ($50.00) per course for renewal of approval.
(b)	Appraiser continuing education courses.
(1)	The Board may, by rule, prescribe minimum standards for the approval, renewal of approval, and withdrawal of approval of schools and other course sponsors and their instructors to conduct appraiser continuing education courses.  These standards may address subject matter, instructional materials, requirements for satisfactory course completion, minimum course length, instructors' qualifications, adequacy of facilities, and other related matters relevant to the provision of these courses in a manner that best serves the public interest.
(2)	Nonrefundable fees of one hundred dollars ($100.00) per course may be charged to schools and course sponsors for the approval to conduct appraiser continuing education courses and fifty dollars ($50.00) per course for renewal of approval.  No fees shall be charged for the approval or renewal of approval to conduct appraiser continuing education courses where these courses are offered by a North Carolina college, university, junior college, or community or technical college accredited by the Southern Association of Colleges and Schools, or by an agency of the federal, State, or local government.  A nonrefundable fee of fifty dollars ($50.00) per course may be charged to current or former licensees or certificate holders requesting approval by the Board of a course for continuing education credit when approval of the course has not been previously obtained by the offering school or course sponsor.
(c)	Revocation or surrender of course sponsor approval.
(1)	Upon its own motion or receipt of a written complaint, the Board may investigate the actions of any course sponsor offering prelicensing and precertification or continuing education courses under the provisions of this Chapter.  If the Board determines that a course sponsor has engaged in conduct that is inconsistent with the provisions of this Chapter or Board rules, the Board may accept a consent order or revoke or refuse to renew a course sponsor's approval.  The Board shall dismiss a complaint against a course sponsor if it finds that the complaint is without merit.
(2)	A course sponsor may, upon allegations of misconduct under this Chapter or Board rules, voluntarily surrender approval for a period of time established by the Board.  A course sponsor may not request approval of any course during the time in which approval has been surrendered.
"§ 93E-1-9.  Nonresident registration, licensure and certification.
(a)	An applicant from another state which offers real estate trainee registration or the equivalent, or real estate appraiser licensing or certification privileges to residents of North Carolina may become accredited in this State by conforming to all of the provisions of this Chapter, and, in the discretion of the Board, any other terms and conditions as are required of North Carolina residents applying for accreditation in other states.
	(b)	The Board, in its discretion, may undertake to register, license, or certify on a reciprocal basis, persons accredited in other states who are deemed by the Board to possess qualifications equivalent to resident North Carolina registered trainees, State-licensed or State-certified real estate appraisers.
(c)	The Board may by rule establish a procedure for granting temporary appraiser accreditation and may charge an application fee of fifty dollars ($50.00) for temporary appraiser accreditation.
	(d)	Every applicant for accreditation under this Chapter who is not a resident of this State shall submit with his or her application an irrevocable consent that service of process in any action against the applicant arising out of the applicant's activities as a registered trainee, State-licensed or State-certified real estate appraiser may be made by delivery of the process on the Executive Director of the Board.
"§ 93E-1-10.   Rule-making authority.
The Board may adopt rules not inconsistent with the provisions of this Chapter and the General Statutes of North Carolina which may be reasonably necessary to implement, administer, and enforce the provisions of this Chapter, including, but not limited to, the authority to:
(1)	Prescribe forms and procedures for submitting information to the Board;
(2)	Prescribe standards of practice for persons registered as trainees or licensed or certified under this Chapter; and
(3)	Prescribe standards for the operation of real estate appraiser education programs.
"§ 93E-1-11.  Register of applicants; roster of trainees, State-licensed and State-certified appraisers; financial report to Secretary of State; administrative expenses.
(a)	The Executive Director of the Board shall keep a register of all applicants for State trainee registration or for State licensure or certification as real estate appraisers, showing for each the date of application, name, business or residence address, and whether the registration, license or certificate was granted or refused. The register shall be prima facie evidence of all matters received therein.
(b)	The Executive Director of the Board shall also keep a current roster showing the names and places of business of all registered trainees and State-licensed and State-certified real estate appraisers, which roster shall be kept on file in the office of the Board and be open to public inspection.
(c)	On or before the first day of November of each year, the Board shall file with the Secretary of State a copy of the roster of registered trainees and real estate appraisers licensed or certified by the Board and a report containing a complete statement of income received by the Board in connection with the accreditation of real estate trainees and appraisers for the preceding fiscal year ending June 30th, attested by the affidavit of the Executive Director of the Board.
(d)	In addition to those fees prescribed in this Chapter for making application for and renewing accreditation, the Board may collect from applicants and holders of the licenses and certificates and remit to the appropriate agency or instrumentality of the federal government any additional fees as may be required to render North Carolina State-licensed or State-certified appraisers eligible to perform appraisals in connection with federally related transactions as well as an additional fee of twenty dollars ($20.00) to cover the administrative costs associated therewith. 
"§ 93E-1-12.  Disciplinary action by Board.
(a)	The Board may take disciplinary action against registered trainees and State-licensed or State-certified real estate appraisers. Upon its own motion or the receipt of a written complaint, the Board may investigate the actions of any person accredited under this Chapter, any person who performs appraisals without accreditation under this Chapter, or any person who holds himself or herself out to be accredited as a real estate appraiser when the person holds no registration, license, or certificate. If the Board finds probable cause to believe that a person accredited under this Chapter has violated any of the provisions of this Chapter, the Board may hold a hearing on the allegations of misconduct.
The Board may suspend, reprimand, or revoke the accreditation granted to any person under the provisions of this Chapter or may refuse to renew accreditation or require additional education of any registered trainee, licensee, or certificate holder if, following a hearing, or by consent, the Board finds the trainee, licensee, or certificate holder to have:
(1)	Procured accreditation pursuant to this Chapter by making a false or fraudulent representation;
(2)	Made any willful or negligent misrepresentation or any willful or negligent omission of material fact;
(3)	Accepted an appraisal assignment when the employment is contingent upon the appraiser reporting a predetermined result, analysis, or opinion, or when the fee to be paid for the performance of the appraisal assignment is contingent upon the opinion, conclusion, or valuation reached or upon consequences resulting from the appraisal assignment;
(4)	Acted or held himself or herself out as a registered trainee or a State-licensed or State-certified real estate appraiser when not so registered, licensed, or certified;
(5)	Failed as a State-licensed or State-certified real estate appraiser to immediately, actively and personally, supervise a trainee as provided in G.S. 93E-1-6.1;
(6)	Failed to make available to the Board for its inspection without prior notice, originals or true copies of all written contracts engaging the person's services to appraise real property, all reports and supporting data assembled and formulated by the appraiser in preparing the reports, and all records required to be kept pursuant to G.S. 93E-1-12(e);
(7)	Paid a fee or valuable consideration to any person for acts or services performed in violation of this Chapter;
(8)	Acted as a real estate appraiser in an unworthy or incompetent manner as to endanger the interest of the public;
(9)	Violated any of the standards of practice for real estate appraisers or any other rule promulgated by the Board;
(9a)	Submitted a check for the payment of fees under this Chapter that is returned unpaid;
(10)	Performed any other act which constitutes improper, fraudulent, or other dishonest conduct; or
(11)	Violated any of the provisions of this Chapter.
The Executive Director of the Board shall transmit a certified copy of all final orders of the Board suspending or revoking licenses or certificates issued under this Chapter to the clerk of superior court of the county in which the licensee or certificate holder maintains the person's principal place of business. The clerk shall enter these orders upon the judgment docket of the county.
(b)	Following a hearing, or by consent, the Board may also suspend or revoke any accreditation issued under the provisions of this Chapter or reprimand any registered trainee, licensee, or certificate holder when:
(1)	The registered trainee, licensee, or certificate holder has been convicted of or has entered a plea of guilty or no contest upon which final judgment is entered by a court of competent jurisdiction in this State, or any other state, to an offense which involves dishonesty, fraud, or deceit, or, in the discretion of the Board, would reasonably affect the performance of the registered trainee, licensee, or certificate holder in the real estate appraisal business;
(2)	A final civil judgment has been entered against the registered trainee, licensee, or certificate holder on grounds of fraud, misrepresentation, or deceit in the making of any appraisal of real estate; 
(3)	The registered trainee, licensee, or certificate holder has had a real estate trainee registration, or its equivalent, real estate appraiser license or real estate appraiser certification suspended, revoked, or denied by a real estate appraiser licensing board in another state;
(4)	The registered trainee, licensee, or certificate holder has had any disciplinary action taken against any other professional license that he or she holds in this State or another state;
(5)	The registered trainee, licensee, or certificate holder has been adjudged mentally incompetent by a court;
(6)	The registered trainee, licensee, or certificate holder has performed any duties of a real estate appraiser, including site inspection and public records checks, while impaired by alcohol or drugs; or
(7)	The registered trainee, licensee, or certificate holder has violated any of the provisions of G.S. 93E-1-13(a) when appraising property owned by him or her.
A registered trainee, licensee, or certificate holder shall report any event described in subdivisions (b)(1) through (5) to the Board within 60 days of a final order or judgment or of the occurrence of the event.
(c)	When a person accredited under this Chapter is accused of any act, omission, or misconduct which would subject the person to disciplinary action, the registered trainee, licensee, or certificate holder, with the consent and approval of the Board, may surrender his or her registration, license, or certificate and all the rights and privileges pertaining to it for a period of time established by the Board. A person who surrenders his or her registration, license, or certificate shall not thereafter be eligible for or submit any application for accreditation as a real estate appraiser during the period that the registration, license, or certificate is surrendered.
(d)	The Board shall have the power to issue subpoenas requiring the attendance of persons and the production of papers and records before the Board in any hearing, investigation, inquiry, or other proceeding conducted by it. Upon the production of any papers, records, or documents, the Board shall have the power to authorize true copies thereof to be substituted in the permanent record of the matter in which the books, records, or documents shall have been introduced in evidence.
(e)	Each person accredited under this Chapter shall maintain records showing compliance with the provisions of this Chapter and any rules adopted by the Board.
"§ 93E-1-12.1.  Investigations and complaints.
(a)	Records, papers, and other documents containing information received, collected, or compiled by the Board, its members or employees as a result of a complaint or investigation, shall not be considered public records within the meaning of Chapter 132 of the General Statutes.  Any statement of charges contained within a notice of a hearing to be held by the Board is a public record, even though it may contain information collected and compiled as a result of a complaint or investigation against a trainee, licensee, certificate holder, or an applicant.  Any record, paper, or other document admitted into evidence in a hearing held by the Board and any final decisions and orders by the Board, including consent orders, shall be public records within the meaning of Chapter 132 of the General Statutes.
(b)	The Board may periodically and without prior notice inspect records maintained pursuant to G.S. 93E-1-12(e) and may inspect such records if the Board determines they are pertinent to an investigation conducted by the Board.
(c)	Any person making a complaint against a trainee, licensee, or certificate holder or against a course sponsor shall be immune from criminal prosecution or civil liability resulting therefrom unless the person knew the complaint was false or acted in reckless disregard of the veracity of the complaint.
(d)	Board employees while acting within the scope of their administrative and investigative duties are exempt from the standards of practice under the provisions of this Chapter.
(e)	The Board may also dismiss a complaint, accept a consent order, or hold a hearing or accept a voluntary surrender of registration, licensure, or certification under the provisions of this Chapter.
"§ 93E-1-13.  Penalty for violation of this Chapter.
(a)	Any person who acts as, or holds himself or herself out to be, a registered trainee or a State-licensed or State-certified real estate appraiser without first obtaining a registration, license, or certificate as provided in this Chapter, or who willfully performs the acts specified in G.S. 93E-1-12(a)(1) through (10), shall be guilty of a Class 1 misdemeanor.
(b)	The Board may appear in its own name in superior court in actions for injunctive relief to prevent any person from violating the provisions of this Chapter or the rules promulgated by the Board. The superior court shall have the power to grant these injunctions whether or not criminal prosecution has been or may be instituted as a result of the violations, and whether or not the person is the holder of a registration, license, or certificate issued by the Board under this Chapter.
"§ 93E-1-14.  Referral of cases by courts.
Whenever any registered trainee, licensee, or certificate holder is adjudged by a civil or criminal court to have injured or damaged any person, partnership, association, or corporation through gross negligence, incompetence, fraud, dishonesty, or other civil or criminal misconduct, the court may, as part of its judgment or decree, order a written copy of the transcript of the record in said case to be forwarded by the clerk of court to the Board with a recommendation that the registration, license, or certificate of the registered trainee, licensee, or certificate holder be revoked or otherwise subject to disciplinary action."
Section 2.  This act is effective when it becomes law.