State Legislatures Consider Numerous Valuation Issues
The legislatures in 43 states, the District of Columbia and all five U.S. territories are in session. The Appraisal Institute’s Washington office is currently tracking 75 pending measures, and continues to work with its chapters, regions and state coalitions to help shape public policy affecting AI Professionals and the valuation profession. Of note:
- Arizona is considering HB 2230, a bill that would establish a four-year statute of limitations on most civil claims against real estate appraisers. The bill has passed the House and is being reviewed in the Senate.
- Florida is considering SB 398 and HB 213, companion bills that would establish a maximum four-year statute of limitations on civil claims against real estate appraisers. Committee hearings on these bills are ongoing.
- Illinois is considering HB 1020, legislation that would amend the Real Estate Appraiser Licensing Act to reinforce the fact that discrimination in the appraisal of residential or commercial real estate is illegal. The bill would grant a private right of action to parties that have allegedly been aggrieved by an appraiser and give the state attorney general the power to file a lawsuit if its investigation finds “reasonable cause to believe that an appraiser is engaged in a pattern and practice of discrimination.”
- Indiana introduced HB 1151, a measure that would clarify and reinforce the state’s appraiser licensing and certification law concerning existing prohibitions on discrimination in real estate appraisals. It also includes a requirement that all appraisers complete qualifying and continuing education in the areas of implicit bias and cultural competencies. No action has been taken on this bill.
- Massachusetts is looking at a package of valuation-related bills, including S 147, which would make licensing mandatory in the state; H 276, which says a civil lawsuit against an appraiser can only be filed by the client and named intended users; and H 336, which would update real estate appraiser record retention requirements.
- Maryland is considering HB 669 and SB 455, two bills that would accept AI PAREA to satisfy the experience requirements for licensing and certification. HB 909 is also under review and would extend the sunset date of the state’s Commission on Real Estate Appraisers, Appraisal Management Companies and Home Inspectors to July 1, 2026. Additionally, it contains a provision that requires the state’s Department of Labor to “hire a consultant to conduct an independent evaluation … to determine if the Commission is adhering to the most recent Uniform Standards of Professional Appraisal Practice's diversity, equity, and inclusion guidelines in its regulation of real estate appraisers and appraisal management companies in the state.”
- Mississippi considered HB 1187, legislation that to separate the Mississippi Real Estate Appraiser Licensing and Certification Board from the Mississippi Real Estate Commission and become the Mississippi Real Estate Appraisal Board. While the bill passed the House, it died in the Senate.
- North Carolina is reviewing HB 48, a measure that would disapprove the state’s Appraisal Board rules incorporating AI PAREA that were adopted last year.
- New Jersey is studying several valuation-related bills. AB 1519 and SB 777 are companion measures that would impose new penalties against real estate appraisers who are found to have engaged in discriminatory conduct. They also would require materials related to appraisal bias to be distributed to property owners and prospective purchasers. AB 4647 and SB 3318 would direct the New Jersey Appraisal Board to accept AI PAREA. SB 3317 and AB 4648 would impose mandatory continuing education requirements related to fair housing and appraisal bias.
- Oregon is looking at SB 702, legislation that would impose mandatory continuing education requirements on federal and state fair housing laws, implicit bias and racial bias. The bill has passed the Senate and is being considered in the House.
- Rhode Island is considering S 819, a bill that would mandate solar panels be “included in the appraisal of any real estate for the purpose of financing to purchase or refinancing a loan on the property.” The bill also would require appraisers to include in their reports the past 24 months of invoices for net metering so that “the average income or balance due generated over that time can be utilized for the purchase of or refinancing a loan on the property.”
- South Carolina is considering HB 3278, a measure that would update the state’s appraiser and appraisal management company licensing and registration laws.
- Texas is reviewing HB 2584, a bill that would prohibit state agencies from including in contracts for appraisal services any provisions that require an appraiser to indemnify the agency and hold it harmless from all liability related to an appraisal. Some governmental agency contracts include a provision that requires a contracting appraisal to indemnify the agency against liability that may not have been directly caused by the appraiser.
- Virginia Gov. Glenn Youngkin on March 21 signed HB 1418, legislation that requires the Virginia Real Estate Appraisal Board to accept successful completion of AI PAREA to satisfy the experience requirements for licensure or certification.
- Washington is considering HB 1797, a bill that would allow real estate appraisers to complete evaluations for federally regulated financial institutions. It was amended to include a “trigger” mechanism whereby the bill would not take effect until the state adopts administrative requirements related to qualifying and continuing education on fair housing and valuation bias.