73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 413
Senate Bill 77
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski for Department of Transportation)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Excludes certain activity of certified or licensed appraiser
performed under contract with public body that has condemnation
authority from real estate appraisal activity otherwise regulated
under certification or licensure.
A BILL FOR AN ACT
Relating to appraisal waiver for the Department of
Transportation; creating new provisions; and amending ORS
35.500, 674.010 and 674.100.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 674.010 is amended to read:
674.010. For purposes of this chapter:
(1) 'Appraisal Foundation' means the Appraisal Foundation
established on November 30, 1987, as a not-for-profit corporation
under the laws of Illinois.
(2) 'Appraisal Subcommittee' means the Appraisal Subcommittee
of the Federal Financial Institutions Examination Council
established pursuant to the federal Act.
{ + (3) 'Appraisal waiver' means an administrative procedure
established by the Department of Transportation in compliance
with provisions of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (P.L. 91-646, 42 U.S.C.
4601 et seq.), 49 C.F.R. 24.102(c)(2) and 49 C.F.R. 24.7, as in
effect on the effective date of this 2005 Act, for determining
just compensation for the acquisition of real property with a
fair market value of less than $20,000. + }
{ - (3) - } { + (4) + } 'Appraiser assistant' means an
individual who has been registered as an appraiser assistant
under ORS 674.310.
{ - (4) - } { + (5) + } ' Board' means the Appraiser
Certification and Licensure Board established under ORS 674.305.
{ - (5) - } { + (6) + } 'Department' means the Department
of Consumer and Business Services.
{ - (6) - } { + (7) + } 'Director' means the Director of
the Department of Consumer and Business Services.
{ - (7) - } { + (8) + } 'Federal Act' means Title XI of the
Federal Financial Institutions Reform, Recovery and Enforcement
Act of 1989 (12 U.S.C. 3310 et seq.).
{ - (8) - } { + (9) + } 'Federal financial institution
regulatory agency ' means:
(a) The Board of Governors of the Federal Reserve System;
(b) The Federal Deposit Insurance Corporation;
(c) The Office of the Comptroller of the Currency;
(d) The Office of Thrift Supervision; or
(e) The National Credit Union Administration.
{ - (9) - } { + (10) + } 'Federally related transaction'
means any real estate-related financial transaction that:
(a) A federal financial institution regulatory agency or the
Resolution Trust Corporation engages in, contracts for or
regulates; and
(b) Requires the services of an appraiser.
{ - (10) - } { + (11) + } 'Financial institution' means an
insured depository institution as defined in section 3 of the
Federal Deposit Insurance Act or an insured credit union as
defined in section 101 of the Federal Credit Union Act.
{ - (11) - } { + (12) + } 'Mortgage banker' has the meaning
given that term in ORS 59.840.
{ - (12) - } { + (13) + } 'Professional real estate
activity' has the meaning given that term in ORS 696.010.
{ - (13) - } { + (14) + } ' Real estate appraisal
activity' means the activity described in ORS 674.100.
{ - (14) - } { + (15) + } 'Real estate-related financial
transaction ' means any transaction involving:
(a) The sale, lease, purchase, investment in or exchange of
real property, including interests in real property, or the
financing thereof;
(b) The refinancing of real property or interests in real
property; and
(c) The use of real property or interests in real property as
security for a loan or investment, including mortgage-backed
securities.
{ - (15) - } { + (16) + } 'State certified appraiser' means
an individual who has been certified as a state certified
appraiser under ORS 674.310.
{ - (16) - } { + (17) + } 'State licensed appraiser' means
an individual who has been licensed as a state licensed appraiser
under ORS 674.310.
{ - (17) - } { + (18) + } ' State certified residential
appraiser' means an individual who has been certified as a state
certified residential appraiser under ORS 674.310.
SECTION 2. ORS 674.100 is amended to read:
674.100. (1)(a) { - No person shall - } { + A person may
not + } engage in, carry on, advertise or purport to engage in or
carry on real estate appraisal activity within this state without
first obtaining certification or licensure as provided for in ORS
674.310.
(b) Real estate appraisal activity is the preparation,
completion and issuance of an opinion as to the value on a given
date or at a given time of real property or any interest in real
property, whether such activity is performed in connection with a
federally related transaction or is not performed in connection
with a federally related transaction. Notwithstanding any other
provision of law, a state certified appraiser or a state licensed
appraiser:
(A) Is not required to be licensed under ORS 696.022 to perform
any real estate appraisal activity or any other activity that
constitutes the giving of an opinion as to the value of real
property or any interest in real property; and
(B) Is not subject to regulation under ORS 696.010 to 696.495
and 696.600 to 696.995 in connection with the performance of any
real estate appraisal activity or the performance of any activity
which constitutes the giving of an opinion as to the value of
real estate or any interest in real estate.
(2) Real estate appraisal activity excludes { - any - }
activity that is { + :
(a) + } Not performed in connection with a federally related
transaction and that:
{ - (a) - } { + (A) + } Is performed by a nonlicensed
regular full-time employee of a single owner of real estate, if
the activity involves the real estate of the employer and is
incidental to the employee's normal, nonreal estate activities;
{ - (b) - } { + (B) + } Is performed by a nonlicensed
regular full-time employee whose activity involves the real
estate of the employer, when such activity is the employee's
principal activity, but the employer's principal activity or
business is not the appraisal of real estate;
{ - (c) - } { + (C) + } Is performed by any attorney at law
rendering services in the performance of duties as an attorney at
law;
{ - (d) - } { + (D) + } Is performed by any registered
geologist, registered professional engineer or architect
rendering services as a registered geologist, registered
professional engineer or architect;
{ - (e) - } { + (E) + } Is performed by a certified public
accountant rendering services as a certified public accountant;
{ - (f) - } { + (F) + } Is performed by a mortgage banker
rendering services as a mortgage banker;
{ - (g) - } { + (G) + } Constitutes a letter opinion or a
competitive market analysis as those terms are defined in ORS
696.010 that, by administrative or judicial order or subpoena, is
compelled from a person licensed to engage in real estate
activity under ORS 696.022;
{ - (h) - } { + (H) + } Is performed by any salaried
employee of the State of Oregon or any of its political
subdivisions while engaged in the performance of the duties of
such employee;
{ - (i) - } { + (I) + } Is limited to analyzing or advising
of permissible land use alternatives, environmental impact,
building and use permit procedures or demographic market studies,
if the performance of such activities does not involve the
rendering of an opinion as to the value of the real estate in
question;
{ - (j) - } { + (J) + } Is performed by a professional
forester appraising or valuing timber, timberland or both as part
of services performed as a private consultant in forest
management, but only if, in the case of timberland, the appraisal
or valuation is limited to the use of the land as forestland;
{ - (k) - } { + (K) + } Is limited to the giving of an
opinion in any administrative or judicial proceeding regarding
the value of real estate for taxation;
(L) Is limited to { - a person not licensed under ORS chapter
696 who is - } { + the + } giving { + of + } an opinion
regarding the value of real estate { + by a person who is not
licensed under ORS chapter 696 + } if the person's business is
not the appraisal, selling or listing of real estate, and such
activity is performed without compensation. This
{ - paragraph - } { + subparagraph + } does not apply to a
person conducting transactional negotiations on behalf of another
person for transfer of an interest in real property;
{ - (m) - } { + (M) + } Is limited to { - a person not
licensed under ORS chapter 696 who is - } transferring or
acquiring an interest in real estate { + by a person not
licensed under ORS chapter 696 + }; or
{ - (n) - } { + (N) + } Is performed by a home inspector
acting within the scope of a certificate or license issued under
ORS chapter 701.
{ + (b) Performed by a state certified appraiser or state
licensed appraiser who is acting:
(A) Under contract with a public body, as defined in ORS
174.109, that has condemnation authority; and
(B) In compliance with an appraisal waiver. + }
(3)(a) 'Real estate appraisal activity' does not include an
analysis, evaluation, opinion, conclusion, notation or
compilation of data prepared by a financial institution or
affiliate, a consumer finance company licensed under ORS chapter
725, or by an insurance company or affiliate, made for internal
use only by the financial institution or affiliate, consumer
finance company or by the insurance company or affiliate,
concerning an interest in real estate for ownership or collateral
purposes by the financial institution or affiliate, by the
consumer finance company licensed under ORS chapter 725, or by
the insurance company or affiliate. Nothing in this subsection
shall be construed to excuse a financial institution or affiliate
from complying with the provisions of Title XI of the federal
Financial Institutions Reform, Recovery and Enforcement Act of
1989 (12 U.S.C. 3310 et seq.).
(b) As used in this section, 'evaluation' means a study of the
nature, quality or utility of a parcel of real estate or
interests in, or aspects of, real property in which a value
estimate is not necessarily required.
(4)(a) As used in this section, 'purport to engage in or carry
on real estate appraisal activity' means the display of a card,
sign, advertisement or other printed, engraved or written
instrument bearing the person's name in conjunction with the term
' appraiser,' 'licensed appraiser,' 'certified appraiser' or '
appraisal' or any oral statement or representation of
certification or licensure by the Appraiser Certification and
Licensure Board made by a person.
(b) Each display or statement described in paragraph (a) of
this subsection by a person not licensed or certified by the
board is a separate violation under ORS 674.990.
(c) In any proceeding under ORS 674.990, a display or statement
described in paragraph (a) of this subsection shall be considered
prima facie evidence that the person named in the display or
making the statement purports to engage in or carry on real
estate appraisal activity.
SECTION 3. ORS 35.500 is amended to read:
35.500. As used in ORS 35.500 to 35.530:
(1) 'Displaced person' means any person who moves, or is
required to move the person's residence and personal property
incident thereto, or the person's business or farm operation as a
result of:
(a) Acquisition of the real property, in whole or in part, by a
public entity; or
(b) Receipt of a written order by such person from a public
entity to vacate the property for public use.
(2) 'Federal Act' means the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (P.L. 91-646, 42
U.S.C. 4601 et seq.) as in effect on { - January 1, 2003 - }
{ + the effective date of this 2005 Act + }.
(3) 'Public entity' includes the state, a county, a city, a
consolidated city-county as defined in ORS 199.705 (1), a
district, public authority, public agency and any other political
subdivision or public corporation in the state when acquiring
real property or any interest therein for public use. 'Public
entity ' also includes a private corporation that has the power
to exercise the right of eminent domain.
(4) 'Public use' means a use for which real property may be
acquired by a public entity as provided by law.
(5) 'Real property' or any interest therein includes tenements
and hereditaments, and includes every interest, freehold and
chattel, legal and equitable, present and future, vested and
contingent, in such tenements and hereditaments.
SECTION 4. { + The amendments to ORS 35.500, 674.010 and
674.100 by sections 1, 2 and 3 of this 2005 Act apply to activity
of a certified or licensed appraiser performed on or after the
effective date of this 2005 Act under contract with a public
body, as defined in ORS 174.109, with condemnation authority. + }
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