Bill Summary for H 565 (2013-2014)

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Summary date: 

Jun 13 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 565 (Public) Filed Wednesday, April 3, 2013
Intro. by Szoka, Howard, B. Brown, Saine.

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Bill summary

House committee substitute makes the following changes to the 1st edition.

Amends GS 93E-1-6, concerning qualifications for registration and certification for real estate appraisers, deleting language referring to the licensure or to licensed real estate appraisers.

Amends GS 93E-1-9, changing title to Nonresident registration and certification, and GS 93E-1-11(a), deleting any mention of licensure or licensed real estate appraisers, in lieu of referring to registered or certified real estate appraisers.

Amends GS 93E-2-4, providing that in order to be registered as an appraisal management company, the registration must include, among other things, a certification that the entity has a trust or escrow account in which a portion of all receipts from the entity's clients are to be paid to appraisers are deposited into the account when the fees are received (previously, only required the entity to obtain a surety bond). Provides that registered appraisal management companies must ensure that appraisers receive fees within 45 days (was, 30 days).

Deletes provisions concerning the surety bond requirement and provides new language requiring the trust or escrow account of registered appraisal management companies to be a demand deposit account in a federally insured depository institution lawfully doing business in North Carolina that agrees to make the institution's records of the appraisal management company's trust or escrow account available for inspection by the Commission's representatives. Deletes language in GS 93E-2-6 that required each applicant for registration or renewal as an appraisal management company to pay $500 into the Appraisal Management Company Recovery Fund.

Amends GS 93E-2-8, Disciplinary authority, deleting language regarding the maintenance of a surety bond. Establishes that an appraisal management company can be disciplined for commingling the appraisal fees owed to appraisers with the appraisal management company's operating or other funds or for failure to maintain and deposit in a trust or escrow account in a bank as required. Adds language that allows the Board to conduct financial audits of the trust or escrow accounts, without prior approval. Requires the management company to provide written authorization to the bank to release such information as needed to inspect those records. Establishes that the Board is exempt from the requirements of GS 53B, which requires the issuance of subpoenas to compel the production of a licensee's trust account records.

Deletes previously included new section GS 93E-2-12, Appraisal Management Company Recovery Fund.

Amends GS 93E-2-9, adding subsection (c1), requiring every appraisal management company to meet specified recordkeeping requirements in regards to the trust and escrow account.

Deletes provision providing that persons previously certified or licensed by the Board are deemed to have met specified requirements of this act.

Amends effective date to July 1, 2014 (was, January 1, 2014).