in-20231108-IR-876230295FRA: Amends 876 IAC 3-1-3 to update the definition of "license". Amends 876 IAC 3-2-4 concerning expired licenses. Amends 876 IAC 3-2-5 concerning reinstatement of an expired license. Amends 876 IAC 3-3-2.5 to remove duplicative language. Adds 876 IAC 3-3-2.7 to incorporate criteria of classifications. Amends 876 IAC 3-3-3.1, 876 IAC 3-3-4.1, and 876 IAC 3-3-5.1 to update educational requirements. Amends 876 IAC 3-3-10 to update language that refers to the Uniform Standards of Professional Appraisal Practice (USPAP) Standards #2. Amends 876 IAC 3-3-11 and 876 IAC 3-3-12 to update appraisal report labels to include a new appraisal format that is being utilized by mortgage lenders; to clarify which appraisal activities may be counted as appraisal experience; to correct a cross-reference; and to clarify the scope of work that licensed trainees are prohibited from performing. Amends 876 IAC 3-3-13.1 to clarify that applicants may claim credit for the actual time spent on various appraisal activities up to the maximum values established by the board; to update the hour value of experience to simplify the charts and include specific assignment categories; and to allow the board to grant credit for appraisal work above the maximum hours set forth in the rule. Amends 876 IAC 3-3-15 to update examination application requirements. Amends 876 IAC 3-5-1 and 876 IAC 3-5-1.5 concerning continuing education requirements. Amends 876 IAC 3-5-7 to update instructor requirements for continuing education. Amends 876 IAC 3-6-2 and 876 IAC 3-6-3 to update to current USPAP standards. Amends 876 IAC 3-6-8 to remove duplicative language. Amends 876 IAC 3-6-9 concerning supervision of Indiana licensed trainee appraisers. Amends 876 IAC 3-6-10 concerning the licensed trainee appraisers and supervisors/trainee appraiser course. Makes technical corrections and eliminates outdated provisions. Repeals 876 IAC 3-1-2, 876 IAC 3-3-8, 876 IAC 3-5-2, and 876 IAC 3-6-6. Effective 30 days after filing with the publisher.

Final Rule LSA Document #23-295 DIGEST Sec. 3. "License" refers to has the meaning set forth in IC 25-34.1-1-2(5), and includes any of the following: Sec. 4. (a) Licenses issued under this article shall expire on a date established by the Indiana professional licensing agency under IC 25-1-6-4(j). (b) To renew a license, an individual must do the following: (c) When renewing a license, a licensee may apply for and receive an inactive license. Such an This individual is exempt from the continuing education requirements stated in subsection (b)(3) and 876 IAC 3-5. The holder of an inactive license may not appraise real estate. (d) To reactivate an inactive license, a licensee must: Sec. 5. To reinstate an expired license, a licensee must: Sec. 2.5. (a) This section establishes requirements for fingerprints and a national criminal history background check for each applicant for initial licensure or certification as a real estate appraiser in Indiana under IC 25-34.1-8 and this article. It does not apply to applicants for licensure or certification who already hold some level of real estate appraiser licensure or certification in Indiana. (b) In addition to what is otherwise required by this article or other applicable law, with the application for licensure or certification, each applicant for initial licensure or certification as an appraiser in Indiana shall submit: (c) (b) The board shall use the results of the national criminal history background check to determine whether licensure or certification should be denied for any reason set forth in IC 25-34.1-8-10(a)(1) or issued on probation as provided for in IC 25-1-11-19. Sec. 2.7. (a) This section establishes criteria applicable to all licenses issued by the board. (b) The board adopts and incorporates by reference the criteria applicable to all appraiser classifications established by the Real Property Appraiser Qualification Criteria, January 2022 edition. Sec. 3.1. (a) This section establishes the educational requirements for the Indiana trainee appraiser license. (b) The minimum prerequisite to sit for the Indiana trainee appraiser examination is seventy-five (75) classroom hours of specific course content completion of the education criteria stated in subsection (g) (c) and completion of the supervisor/trainee appraiser course as outlined in 876 IAC 3-6-9. (c) A classroom hour is defined as fifty (50) minutes of classroom lecture out of each sixty (60) minute segment. (d) Credit toward the classroom hour requirement may only be granted where the: (e) Credit for the classroom hour requirement must be from a course, including a distance learning course, approved by the Appraisal Qualifications Board. Credit towards qualifying education requirements may be obtained through the completion of a degree program in real estate from an accredited degree-granting college or university provided that the curriculum has been approved by the Appraisal Qualifications Board. (f) Qualifying education must be completed within the five (5) year period prior to the date the application was filed. (g) (c) The minimum classroom hours shall be as follows: the required core curriculum for trainee appraisers, established by The Real Property Appraiser Qualification Criteria, January 2022 edition. (h) For a course to meet the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice requirement under subsection (g), the instructor must be: Sec. 4.1. (a) This section establishes the educational requirements for an Indiana certified residential appraiser. (b) The minimum prerequisite to sit for the Indiana certified residential appraiser examination is two hundred (200) classroom hours of specific course content stated in subsection (h) and meeting the requirements in subsection (g). However, where applicable, the number of classroom hours may be satisfied as specified in subsection (k) or (l). completion of the education criteria, or alternative criteria, and the minimum qualifying education classroom hours of qualifying education for a certified residential real property appraiser established by the Real Property Appraiser Qualification Criteria, January 2022 edition. (c) A classroom hour is defined as fifty (50) minutes of classroom lecture out of each sixty (60) minute segment. (d) Credit toward the classroom hour requirement may only be granted where the: (e) Credit for the classroom hour requirement must be from a course, including a distance learning course, approved by the Appraisal Qualifications Board. Credit towards qualifying education requirements may be obtained through the completion of a degree program in real estate from an accredited degree-granting college or university provided that the curriculum has been approved by the Appraisal Qualifications Board. (f) Qualifying education credit will be accepted regardless of when the courses were taken as long as they were taken before the application was filed. (g) Applicants for licensure as a certified residential appraiser must hold a bachelor's degree or higher from an accredited college or university. (h) The minimum qualifying education classroom hours shall be as follows: (i) For a course to meet the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice requirement under subsection (h) after December 31, 2003, the instructor must be: (j) Notwithstanding subsection (i), (c) The fifteen (15) hours of Uniform Standards of Professional Appraisal Practice course will meet the requirements under subsection (h) (b) if the course was taken prior to January 1, 2004. (k) The minimum qualifying education classroom hours for individuals holding a valid licensed trainee appraiser license shall be as follows: (l) The minimum qualifying education classroom hours for individuals holding a valid licensed residential appraiser license shall be as follows: Sec. 5.1. (a) This section establishes the educational requirements for an Indiana certified general appraiser. (b) The prerequisite to sit for the Indiana certified general appraiser examination is three hundred (300) classroom hours with specific course content stated in subsection (h) and meeting the requirements in subsection (g). However, where applicable, the number of classroom hours may be satisfied as specified in subsection (k), (l), or (m). completion of the education criteria, or alternative criteria, and the minimum qualifying education classroom hours of qualifying education for a certified general real property appraiser established by the Real Property Appraiser Qualification Criteria, January 2022 edition. (c) A classroom hour is defined as fifty (50) minutes of classroom lecture out of each sixty (60) minute segment. (d) Credit toward the classroom hour requirement may only be granted where the: (e) Credit for the classroom hour requirement must be from a course, including a distance learning course, approved by the Appraisal Qualifications Board. Credit towards qualifying education requirements may be obtained through the completion of a degree program in real estate from an accredited degree-granting college or university provided that the curriculum has been approved by the Appraisal Qualifications Board. (f) Qualifying education credit will be accepted regardless of when the courses were taken as long as they were taken before the application was filed. (g) Applicants for licensure as a certified general appraiser must hold a bachelor's degree or higher from an accredited college or university. (h) The minimum qualifying education classroom hours shall be as follows: (i) For a course to meet the fifteen (15) hours Uniform Standards of Professional Appraisal Practice requirement under subsection (h) after December 31, 2003, the instructor must be: (j) Notwithstanding subsection (i), (c) The fifteen (15) hours of Uniform Standards of Professional Appraisal Practice course will meet the requirements under subsection (h) (b) if the course was taken before January 1, 2004. (k) The minimum qualifying education classroom hours for individuals holding a valid licensed trainee appraiser license shall be as follows: (l) The minimum qualifying education classroom hours for individuals holding a valid licensed residential appraiser license shall be as follows: (m) The minimum qualifying education classroom hours for individuals holding a valid certified residential appraiser license shall be as follows: Sec. 10. (a) The quantitative experience requirements must be satisfied by time spent on the appraisal process. The appraisal process consists of the following: (b) An applicant may be given full credit for performance of at least seventy-five percent (75%) of the work associated with an appraisal, including preparation of the appraisal report. Full credit may be claimed for that appraisal, even if the work was reviewed by a supervising appraiser who signed the appraisal report, notwithstanding subsection (c). No credit may be given to an applicant performing less than seventy-five percent (75%) of the work on an appraisal. No credit may be given to an applicant for an appraisal unless the applicant either signed the report or was given credit for seventy-five percent (75%) of the work within the certification pages of the appraisal report. (c) An applicant may be given credit for twenty-five percent (25%) of the hours allotted for the type of property appraised if the applicant reviewed an appraisal prepared by a trainee under the applicant's supervision, and the applicant signed the report as the supervisor. (d) An applicant may be given credit for fifty percent (50%) of the hours allotted for the type of property appraised if the applicant prepared a Uniform Standards of Professional Appraisal Practice (USPAP) Standard 3 review report of an appraisal prepared by another person and prepared a separate written review appraisal report. (e) An applicant may be given credit for an additional fifty percent (50%) of the hours allotted for the type of property appraised if the applicant performed an appraisal for condemnation purposes where there was a partial taking of the property and documented before and after value of the property was completed. (f) An applicant may be given credit for fifty percent (50%) of the total experience requirement for practicum courses that are approved by the AQB Course Approval Program or board. A practicum course must include the generally applicable methods of appraisal practice for the credential category. Content includes, but is not limited to, the following: (g) Any An appraisal for which experience is claimed under this rule must: (h) The total credit given for appraisal work consisting of restricted appraisal reports shall not exceed five hundred (500) hours. Sec. 11. (a) Types of property under the residential category are defined as follows: (b) An applicant performing an appraisal must describe, with supporting documentation, the properties appraised in sufficient detail to enable the board to determine the proper amount of credit that may be awarded. (c) (b) No credit may be given for the following: (d) (c) Acceptable appraisal experience includes, but is not limited to, the following: (e) (d) Not more than five hundred (500) hours of credit will be accepted in any single category in subsection (d)(4) (c)(2) through (d)(8). (c)(8). (f) (e) Not more than seven hundred fifty (750) cumulative hours of credit will be accepted for the total amount of experience under subsection (d)(4) (c)(4) through (d)(8). (c)(8). (f) Indiana licensed trainees are not permitted to do review appraisal assignments. Sec. 12. (a) Types of property under the general (nonresidential) category are as follows: (b) An applicant performing an appraisal must describe, with supporting documentation, the properties appraised in sufficient detail to enable the board to determine the proper amount of credit that may be awarded. (c) (b) No credit may be given for the following: (d) (c) Acceptable appraisal experience includes, but is not limited to, the following: (e) (d) Not more than five hundred (500) hours of credit will be accepted in any single category in subsection (d)(4) (c)(2) through (d)(8). (c)(8). (f) (e) Not more than one thousand (1,000) cumulative hours of credit will be accepted for the total amount of experience under subsection (d)(4) (c)(4) through (d)(8). (c)(8). (f) Indiana licensed trainees are not permitted to do review appraisal assignments. Sec. 13.1. (a) This section establishes the maximum value of residential appraisal work that may qualify for experience credit. An applicant may receive credit for actual time spent on an appraisal up to the maximum hour value allowed for the type of appraisal performed. The following table states the maximum values: (b) The hour value of other appraisal work, whether it be in the residential or the general category, shall be the actual number of hours, provided that this is a reasonable number of hours, Not more than one hundred (100) hours per appraisal assignment will be granted with the limits provided in subsection (a). However, the board shall have the right to grant more than these maximum hours upon written request. Sec. 15. (a) An application for examination shall be filed on a form prescribed by the board. (b) The board shall require applicants to provide documentation in support of education, experience, and other relevant data. (c) The form prescribed by the board may require an applicant to provide information and documentation including, but not limited to, the following: Sec. 1. (a) As a prerequisite to renewal of a real estate appraiser license or certification, the licensee or certificate holder shall satisfactorily complete twenty-eight (28) classroom hours of continuing education within that two (2) year renewal period from real estate appraiser continuing education courses approved by the Appraiser Qualifications Board as provided for in IC 25-1-4-0.5(1)(B) or by the board under this rule. However, a licensee or certificate holder initially licensed within the last one hundred eighty-five (185) days of a two (2) year renewal period shall not be required to obtain any hours of continuing education. satisfy the criteria specific to continuing education, established by The Real Property Appraiser Qualification Criteria, January 2022 edition. (b) The following criteria apply to determine the number of hours: (c) Notwithstanding subsection (a), up to fifty percent (50%) of continuing education credit may be granted for participation, other than as a student in appraisal educational programs, as follows: (d) (b) A licensee is not entitled to continuing education credit for any classroom hours that were used for required prelicensure education under 876 IAC 3-3. (e) The continuing education requirement is to ensure that appraisers participate in educational programs that maintain and increase their skill, knowledge, and competency in real estate appraising. (f) (c) The board may verify any information concerning continuing education that is submitted by the licensee or certificate holder as evidence supporting the course information. The board may require licensees or certificate holders to provide information regarding the continuing education hours claimed on the individual's renewal. Failure to do so may lead to action under IC 25-1-4-5 or IC 25-1-4-6. (g) (d) It is the responsibility of each licensee or certificate holder to retain evidence to support the courses taken for a period of three (3) years after the end of the renewal period for which the renewal application is submitted to the board. These records shall include one (1) or more of the following: Sec. 1.5. (a) The continuing education required by section 1 of this rule must include seven (7) hours of Uniform Standards of Professional Appraisal Practice. (b) (a) The continuing education required by subsection (a) on the Uniform Standards of Professional Appraisal Practice (USPAP) must be: (c) (b) If the updated course required by subsection (b) (a) is available before the effective date of a new edition of the Uniform Standards of Professional Appraisal Practice, USPAP, a real estate appraiser who takes that course before the effective date complies with subsection (b) (a). Sec. 7. Each instructor for an approved real estate appraiser continuing education course must possess at least one (1) of the following minimum requirements: Sec. 2. (a) That certain document being titled Uniform Standards of Professional Appraisal Practice (USPAP), 2020-2021 edition, as published by the Appraisal Standards Board of the Appraisal Foundation, 1155 15th Street, NW, Suite 1111, Washington, D.C. 20005, copyright The Appraisal Foundation, is hereby incorporated by reference as if fully set out in this rule except for the revisions stated in section 3 of this rule. The Advisory Opinions are not adopted as part of this rule. The USPAP Frequently Asked Questions are not adopted as part of this rule. The Comments are adopted as part of this rule. (b) No subsequent editions, amendments, supplements, or releases of the Uniform Standards of Professional Appraisal Practice USPAP will be in effect in Indiana or adopted by the commission except by following the rulemaking provisions of IC 4-22-2. (c) As used in this article, "appraiser" refers to the following: Sec. 3. (a) Standards 5 through 10 are deleted. (b) The references to Standards 5 through 10 of the Uniform Standards of Professional Appraisal Practice (USPAP), 2020-2021 edition, are deleted or revised as follows: (c) In the When Do USPAP Rules and Standards Apply portion of the Preamble, delete the first four (4) sentences. (d) In the Ethics Rule, delete the second paragraph except for "An appraiser must comply with USPAP.". Sec. 8. (a) Indiana licensed residential appraisers, Indiana certified residential appraisers, and Indiana certified general appraisers may only employ: (b) Subsection (a) does not prohibit the use of unlicensed individuals to perform clerical functions. (c) Indiana licensed trainee appraisers shall be subject to the supervision of a supervising appraiser as provided for in section 9 of this rule and may not: (d) Indiana licensed trainee appraisers may not do the following: Sec. 9. (a) This section establishes requirements for the use and supervision of licensed trainee appraisers. (b) Indiana licensed trainee appraisers shall be subject to direct supervision, including inspection of all properties except as allowed by subsection (i), by a supervising appraiser who (c) The supervising appraiser shall be responsible for the direct supervision of the Indiana licensed trainee appraiser by signing and certifying the report as in compliance with the Uniform Standards of Professional Appraisal Practice. (d) (c) The Indiana licensed trainee appraiser is permitted to have more than one (1) supervising appraiser in the office of the supervising appraiser with whom the Indiana licensed trainee appraiser has associated under 876 IAC 3-3-22. Such An additional supervisor shall be acting in substitution for the supervising appraiser identified under 876 IAC 3-3-22 and is only responsible for the Indiana licensed trainee appraiser on appraisals where such responsibility is assumed by the additional supervisor, at the consent of the supervisor of record identified under 876 IAC 3-3-22. Overall responsibility for the trainee appraiser remains with the supervisor of record as long as the association with the trainee appraiser is in effect under 876 IAC 3-3-22. (e) (d) An appraiser may not be the supervising appraiser for more than three (3) trainees. (f) (e) An appraisal log shall be maintained by the Indiana licensed trainee appraiser and supervising appraiser. and shall, at a minimum, include the following for each appraisal: (g) The supervising appraiser shall: (h) Separate appraisal logs shall be maintained by each supervising appraiser. (i) The Indiana licensed trainee appraiser shall be subject to direct supervision until the Indiana licensed trainee appraiser is competent in accordance with the Competency Provision of the Uniform Standards of Professional Appraisal Practice, as adopted in section 2 of this rule, to perform appraisals for the specific property type. After the Indiana licensed trainee appraiser demonstrates competency, the supervising appraiser is not required to inspect the properties. However, the supervising appraiser must continue to sign and accept full responsibility for all appraisals performed by the Indiana licensed trainee appraiser. (j) In addition to the requirements in subsection (i), (f) The supervising appraiser shall accompany the Indiana licensed trainee appraiser and inspect the subject and comparable properties on the following appraisal assignments: (k) (g) The supervising appraiser and the licensed trainee appraiser shall meet with each other on a reasonable schedule to interact about the appraisal work of the trainee. (l) (h) Subsections (e) (d) and (j) (f) do not apply when an Indiana licensed trainee appraiser is an employee of a governmental entity acting in the course of the governmental entity's activities. Sec. 10. (a) A supervising appraiser under section 9 of this rule shall successfully complete a supervisor/trainee appraiser course in order to be a supervising appraiser. The course must be completed prior to commencement of association with a trainee appraiser. (b) The supervisor/trainee appraiser course shall qualify for continuing education credit for the supervising appraiser under 876 IAC 3-5. (c) A supervisor/trainee appraiser course shall be approved by the board or the Appraisal Qualifications Board and shall provide adequate information to ensure the supervisory appraiser and trainee appraiser understand the qualifications and responsibilities of that role. Specifically, the objective of the course shall be that the student understands the following: