CHAPTER 1103. REAL ESTATE APPRAISERS - Texas Statutes

OCCUPATIONS CODE

TITLE 7. PRACTICES AND PROFESSIONS RELATED TO REAL PROPERTY AND

HOUSING

SUBTITLE A. PROFESSIONS RELATED TO REAL ESTATE

CHAPTER 1103. REAL ESTATE APPRAISERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1103.001. SHORT TITLE. This chapter may be cited as the

Texas Appraiser Licensing and Certification Act.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.002. PURPOSE. The purpose of this chapter is to

conform state law relating to the regulation of real estate

appraisers to the requirements adopted under Title XI, Financial

Institutions Reform, Recovery, and Enforcement Act of 1989.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.003. DEFINITIONS. In this chapter:

(1) "Appraisal" means:

(A) an estimate of value; or

(B) the act or process of estimating value.

(2) "Appraisal Foundation" means The Appraisal Foundation, as

defined by 12 U.S.C. Section 3350, or its successor.

(2-a) "Appraisal Standards Board" means the Appraisal Standards

Board of the Appraisal Foundation, or its successor.

(3) "Appraisal Subcommittee" means the Appraisal Subcommittee of

the Federal Financial Institutions Examination Council, or its

successor.

(4) "Appraiser Qualifications Board" means the Appraiser

Qualifications Board of the Appraisal Foundation, or its

successor.

(5) "Board" means the Texas Appraiser Licensing and

Certification Board.

(6) "Commissioner" means the commissioner of the Texas Appraiser

Licensing and Certification Board.

(6-a) "Federally related transaction" means a real

estate-related transaction that:

(A) requires the services of an appraiser; and

(B) is engaged in, contracted for, or regulated by a federal

financial institution regulatory agency.

(6-b) "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;

(E) the National Credit Union Administration; or

(F) the successors of any of those agencies.

(7) "State-certified real estate appraiser" or "certified

appraiser" means a person who is certified under this chapter.

(8) "State-licensed real estate appraiser" or "licensed

appraiser" means a person who is licensed under this chapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 1, eff. September 1, 2005.

Sec. 1103.004. EFFECT OF CHAPTER. (a) Repealed by Acts 2005,

79th Leg., Ch. 703, Sec. 22, eff. September 1, 2005.

(b) This chapter does not prohibit:

(1) a person authorized by law from performing an evaluation of

real property for or providing an evaluation of real property to

another person;

(2) a real estate broker or salesperson licensed under Chapter

1101 but not certified or licensed under this chapter from

performing an appraisal in a transaction other than a federally

related transaction;

(3) the requirement that a person who is not certified or

licensed under this chapter be licensed as a real estate broker

or salesperson to perform an appraisal in a transaction other

than a federally related transaction; or

(4) a real estate broker or salesperson licensed under Chapter

1101 from giving an opinion if the opinion:

(A) is not referred to as an appraisal; and

(B) is given in the ordinary course of the broker's or

salesperson's business to:

(i) a potential seller or third party regarding the recommended

listing price of real property; or

(ii) a potential purchaser or third party regarding the

recommended purchase price of real property.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 22, eff. September 1, 2005.

Sec. 1103.005. REAL ESTATE BROKER OR SALESPERSON LICENSE NOT

REQUIRED. A person is not required to be licensed as a real

estate broker or salesperson under Chapter 1101 to appraise real

property in this state if the person is:

(1) certified or licensed under this chapter;

(2) approved as an appraiser trainee under this chapter; or

(3) certified or licensed as a real estate appraiser by another

state.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.006. APPLICATION OF SUNSET ACT. If the federal

government removes the requirements for the preparation or use of

an appraisal by federally regulated financial institutions, the

board is subject to Chapter 325, Government Code (Texas Sunset

Act), and is subject to sunset review in the next regular session

of the legislature following the date of the federal government's

action. Unless continued in existence by that legislature as

provided by that chapter, the board is abolished and this chapter

expires on the 90th day after the last day of the regular session

of that legislature.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

SUBCHAPTER B. TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD

Sec. 1103.051. TEXAS APPRAISER LICENSING AND CERTIFICATION

BOARD. The Texas Appraiser Licensing and Certification Board is

an independent subdivision of the Texas Real Estate Commission.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.052. BOARD MEMBERSHIP. (a) The board consists of

nine members as follows:

(1) the executive secretary of the Veterans' Land Board or the

executive secretary's designee; and

(2) eight members appointed by the governor with the advice and

consent of the senate as follows:

(A) four members who are certified or licensed appraisers

actively engaged in the practice of appraising real property; and

(B) four public members who qualify for appointment based on

their recognized business ability.

(b) The executive secretary of the Veterans' Land Board or the

executive secretary's designee is a voting member of the board.

(c) In making appointments to the board, the governor shall

ensure that:

(1) a single appraisal organization is not overrepresented on

the board;

(2) the board is independent of a trade association, profession,

or industry; and

(3) the board represents:

(A) the diverse geographic areas of the state; and

(B) a cross-section of disciplines in the field of real estate

appraisal.

(d) Appointments to the board shall be made without regard to:

(1) the race, color, religion, sex, disability, familial status,

or national origin of the appointee; or

(2) the appointee's membership in an appraisal organization.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.053. QUALIFICATIONS OF APPOINTED MEMBERS. (a) An

appointed member of the board must be a qualified voter of this

state.

(b) A person appointed to the board qualifies by taking the

constitutional oath of office not later than the 15th day after

the date of appointment.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.054. ELIGIBILITY OF PUBLIC MEMBERS. A person is not

eligible for appointment as a public member of the board if the

person or the person's spouse:

(1) is a certified or licensed appraiser;

(2) is certified or licensed by an occupational regulatory

agency in the field of real estate brokerage or appraisal;

(3) owns or controls, directly or indirectly, a business entity

or other organization whose primary purpose is to engage in real

estate sales, brokerage, or appraisal; or

(4) is employed by or participates in the management of a

business entity or other organization whose primary purpose is to

engage in real estate sales, brokerage, or appraisal.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.055. TERMS. (a) Appointed members of the board serve

staggered two-year terms, with the terms of two appraiser members

and two public members expiring on January 31 of each year.

(b) An appointed member may not serve more than three

consecutive two-year terms.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.056. OFFICERS; EXECUTIVE COMMITTEE. (a) At a regular

meeting in February of each year, the board shall elect from its

members a presiding officer, assistant presiding officer, and

secretary.

(b) The officers elected under Subsection (a) constitute the

executive committee.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.057. GROUNDS FOR REMOVAL. (a) It is a ground for

removal from the board that an appointed member:

(1) does not have at the time of appointment the qualifications

required by this subchapter for appointment to the board;

(2) does not maintain during service on the board the

qualifications required by this subchapter for appointment to the

board;

(3) cannot, because of illness or disability, discharge the

member's duties for a substantial part of the member's term; or

(4) is absent from more than half of the regularly scheduled

board meetings that the member is eligible to attend during a

calendar year, unless the absence is excused by a majority vote

of the board.

(b) The validity of an action of the board is not affected by

the fact that it is taken when a ground for removal of an

appointed board member exists.

(c) If the presiding officer of the board has knowledge that a

potential ground for removal of an appointed board member exists,

the presiding officer shall immediately notify the governor.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.058. PER DIEM; REIMBURSEMENT. An appointed board

member is entitled to receive:

(1) $75 for each day the member engages in official duties as a

board member; and

(2) reimbursement for actual and necessary expenses incurred in

performing official duties as a board member.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.059. QUASI-JUDICIAL IMMUNITY. A member of the board

is entitled to quasi-judicial immunity from suit for an action

that:

(1) is taken as a member of the board; and

(2) is in compliance with the law.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

SUBCHAPTER C. COMMISSIONER AND OTHER BOARD PERSONNEL

Sec. 1103.101. COMMISSIONER. (a) The administrator of the

Texas Real Estate Commission shall serve as commissioner.

(b) The board may delegate to the commissioner the

responsibility for administering this chapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1411, Sec. 44, eff. September 1, 2007.

Sec. 1103.102. OTHER BOARD PERSONNEL. In addition to the

commissioner, the board may employ other officers and employees

as necessary to administer this chapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.103. SALARIES. (a) The administrator of the Texas

Real Estate Commission shall determine the salaries of the

officers and employees of the board.

(b) The amounts of the salaries may not exceed the amounts

specified by the General Appropriations Act.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1411, Sec. 45, eff. September 1, 2007.

Sec. 1103.104. DUTIES OF COMMISSIONER. The commissioner shall:

(1) disseminate information;

(2) administer rules adopted by the board under this chapter;

(3) review each application for a certificate or license and

make a recommendation for final action to the board;

(4) review and make recommendations to the board regarding the

adoption of rules relating to:

(A) the examination required by Subchapter F;

(B) education and experience requirements for issuance of

certificates and licenses;

(C) continuing education for a certified or licensed appraiser;

(D) standards of professional practice and ethics for a

certified or licensed appraiser;

(E) standards for a real estate appraisal performed by a

certified or licensed appraiser; and

(F) the fees established by the board under Section 1103.156;

(5) collect fees established by the board;

(6) manage the staff and employees of the board; and

(7) perform any other duty prescribed by the board under this

chapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1411, Sec. 46, eff. September 1, 2007.

SUBCHAPTER D. BOARD POWERS AND DUTIES

Sec. 1103.151. RULES RELATING TO CERTIFICATES AND LICENSES. The

board may adopt:

(1) rules for certifying or licensing an appraiser or approving

an appraiser trainee in this state that are in accordance with

this chapter and consistent with applicable federal law;

(2) rules relating to the education and experience required for

certifying or licensing an appraiser or approving an appraiser

trainee that are consistent with the guidelines recognized by the

Appraiser Qualifications Board;

(3) rules relating to the examination required by Subchapter F;

and

(4) rules relating to procedures for the timely renewal of a

certificate or license.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 2, eff. September 1, 2005.

Sec. 1103.152. APPRAISER CERTIFICATE AND LICENSE CATEGORIES.

The board may:

(1) establish certificate and license categories that are

consistent with the categories recognized by the Appraiser

Qualifications Board; and

(2) prescribe qualifications for each category that are

consistent with the qualifications established for that category

by the Appraiser Qualifications Board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 3, eff. September 1, 2005.

Sec. 1103.153. RULES RELATING TO CONTINUING EDUCATION. The

board may adopt rules relating to continuing education

requirements for a certified or licensed appraiser or an approved

appraiser trainee.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 4, eff. September 1, 2005.

Sec. 1103.154. RULES RELATING TO PROFESSIONAL CONDUCT. The

board may adopt:

(1) rules as necessary to conform to the minimum written

standards of the Appraisal Standards Board by incorporating the

Uniform Standards of Professional Appraisal Practice;

(2) rules requiring a certified or licensed appraiser to comply

with standards of competency, professional conduct, and ethics

prescribed by the Uniform Standards of Professional Appraisal

Practice, as adopted by the Appraisal Standards Board; and

(3) rules relating to the standards for the development of an

appraisal and the conveyance of an appraisal report by a

certified or licensed appraiser that are consistent with the

Uniform Standards of Professional Appraisal Practice.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 5, eff. September 1, 2005.

Sec. 1103.155. ROSTER. (a) The board shall maintain a roster

of persons who are certified or licensed under this chapter.

(b) The roster must indicate the type of certificate or license

held by each person listed.

(c) The board shall send a copy of the roster to the Appraisal

Subcommittee at least annually.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.156. FEES. (a) The board may establish reasonable

fees to administer this chapter, including:

(1) an application fee for a certificate or license;

(2) an examination fee;

(3) a renewal fee for a certificate or license;

(4) a registration fee for a nonresident real estate appraiser;

(5) an application fee for an appraiser trainee;

(6) an annual renewal fee for an appraiser trainee;

(7) a fee for filing a request for a return to active status;

and

(8) other appropriate fees.

(b) The board shall collect from each certified or licensed

appraiser an annual registry fee in an amount established by the

board not to exceed the amount required by the Appraisal

Subcommittee. The board shall deposit the registry fees to the

credit of the appraiser registry account in the general revenue

fund.

(c) The fees collected under Subsection (b) shall be sent to the

Appraisal Subcommittee regularly as required by federal law.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 106, Sec. 1, eff.

Sept. 1, 2003.

SUBCHAPTER E. CERTIFICATE AND LICENSE REQUIREMENTS

Sec. 1103.201. CERTIFICATE OR LICENSE REQUIRED. (a) Unless the

person is certified under this chapter, a person may not:

(1) use the title "state-certified real estate appraiser"; or

(2) refer to an appraisal prepared by the person as a "certified

appraisal."

(b) Unless the person is licensed under this chapter, a person

may not:

(1) use the title "state-licensed real estate appraiser"; or

(2) refer to an appraisal prepared by the person as a "licensed

appraisal."

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.202. ELIGIBILITY REQUIREMENTS FOR CERTIFICATE. To be

eligible for a certificate under this chapter, an applicant must:

(1) pass the examination required by Subchapter F;

(2) successfully complete the number and type of classroom hours

or other educational qualifications required by the Appraiser

Qualifications Board;

(3) provide evidence satisfactory to the board that the

applicant has at least the minimum number of hours of experience

in performing appraisals over the specified number of calendar

years as required by the Appraiser Qualifications Board; and

(4) satisfy the board as to the applicant's honesty,

trustworthiness, and integrity.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 6, eff. September 1, 2005.

Sec. 1103.203. ELIGIBILITY REQUIREMENTS FOR LICENSE. To be

eligible for a license under this chapter, an applicant must:

(1) pass the examination required by Subchapter F;

(2) successfully complete the number and type of classroom hours

or other educational qualifications required by the guidelines of

the Appraiser Qualifications Board;

(3) provide evidence satisfactory to the board that the

applicant has at least the minimum number of hours of experience

in performing appraisals over the specified number of calendar

years as required by the guidelines of the Appraiser

Qualifications Board; and

(4) satisfy the board as to the applicant's honesty,

trustworthiness, and integrity.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 7, eff. September 1, 2005.

Sec. 1103.204. FULFILLMENT OF EDUCATION REQUIREMENTS. (a) In

this section, "real estate-related financial transaction" means a

transaction involving:

(1) selling, leasing, purchasing, exchanging, investing in, or

financing real property or an interest in real property;

(2) refinancing real property or an interest in real property;

or

(3) using real property or an interest in real property as

security for a loan or investment, including a mortgage-backed

security.

(b) This chapter does not limit the amount of time in which an

applicant for a certificate or license is required to satisfy the

education requirements under this subchapter.

(c) The board shall give an applicant for a certificate or

license credit toward fulfilling the requirements of Sections

1103.202(2) and 1103.203(2) for classroom hours taken in the

course of becoming licensed as a real estate broker or

salesperson or for professional development or continuing

education courses taken, whether the classroom hours or courses

are taken by a person as a real estate broker or salesperson or

as an employee of a financial institution engaged in real

estate-related financial transactions, if the classroom hours or

courses satisfy the requirements established by the guidelines

recognized by the Appraiser Qualifications Board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 8, eff. September 1, 2005.

Sec. 1103.205. FULFILLMENT OF EXPERIENCE REQUIREMENTS. (a)

Except as provided by Section 1103.208, this chapter does not

limit the amount of time in which an applicant for a certificate

or license is required to satisfy the experience requirements

under this subchapter.

(b) An applicant for a certificate or license must provide an

affidavit on a form prescribed by the board stating that the

applicant has the required number of hours of experience in

performing appraisals as recognized by the Appraiser

Qualifications Board.

(c) For the purpose of determining the qualifications of an

applicant for a certificate or license under this chapter,

acceptable appraisal experience includes:

(1) any one or any combination of the categories recognized by

the Appraiser Qualifications Board; and

(2) experience as a real estate lending officer of a financial

institution or as a real estate broker that includes the actual

performance or technical review of real estate appraisals.

(d) For purposes of this subchapter, an hour of experience means

60 minutes spent in one or more of the acceptable areas of

appraisal experience recognized under this subchapter.

Calculation of the hours of experience must be based solely on

actual hours of experience.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 9, eff. September 1, 2005.

Sec. 1103.206. VERIFICATION OF EDUCATION AND EXPERIENCE. (a)

The board shall adopt a reliable method to verify the evidence of

education submitted by an applicant for a certificate or license.

(b) The board shall adopt a reliable method to verify the

evidence of appraisal experience submitted by an applicant for a

certificate or license. The method must rely on appropriate

sampling techniques that are applied to not more than five

percent of the applications received by the board. An applicant

whose application is selected for verification has at least 60

days after the date of selection to prepare any records. The

board may not require the applicant to provide more information

than the information the board may obtain under Section 1103.207.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.207. ADDITIONAL INFORMATION FROM CERTAIN APPLICANTS.

(a) In addition to the information or documentation specified by

this subchapter, the board may obtain other information or

documentation from an applicant for a certificate or license

under this chapter if the board determines that:

(1) a consumer complaint or peer complaint against the applicant

alleging fraud, incompetency, or malpractice is reasonable; or

(2) other just cause exists for requiring further information.

(b) The board may obtain the additional information or

documentation by:

(1) requiring the applicant to complete a form prescribed by the

board that includes a detailed listing of the applicant's

appraisal experience and states for each appraisal claimed by the

applicant:

(A) the municipality or county in which the appraisal was

performed;

(B) the type and description of the building or property

appraised;

(C) the approach to value used in the appraisal;

(D) the actual number of hours spent on the appraisal; and

(E) any other information determined appropriate by the board;

or

(2) engaging in other investigative research determined

appropriate by the board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.208. PROVISIONAL LICENSE FOR CERTAIN APPRAISER

TRAINEES. (a) An applicant for appraiser trainee

classification who demonstrates to the board that the applicant,

after completing the classroom education requirements, has failed

to secure sponsorship from at least two certified appraisers to

satisfy the experience requirement of Section 1103.203(3) may

apply to the board to take the examination required by Subchapter

F.

(b) The board shall issue a license under this section to an

applicant who:

(1) passes the examination required by Subchapter F; and

(2) satisfies any other requirements for a license, other than

the experience requirement of Section 1103.203(3).

(c) A license issued under Subsection (b) is subject to

automatic revocation if the person fails to:

(1) complete the experience requirement under Section

1103.203(3) not later than the 60th month after the date the

license is issued; or

(2) report the completion of a portion of the person's

experience requirement each renewal period.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.209. RECIPROCAL CERTIFICATE OR LICENSE. (a) The

board may issue a certificate or license under terms adopted by

the board to an applicant who is certified or licensed under the

laws of another state having certification or licensing

requirements that the board determines have not been disapproved

by the Appraiser Qualifications Board. The terms must comply

with the minimum criteria for obtaining a certificate or license

recognized by the Appraiser Qualifications Board.

(b) The board may not accept an application from an applicant

from another state that refuses to offer reciprocal treatment to

residents of this state who are certified or licensed under this

chapter.

(c) The application form submitted for a reciprocal certificate

or license under this section must be comparable to the form

required of a resident of this state applying for a similar

certificate or license.

(d) The fee charged to an appraiser from another state for a

reciprocal certificate or license under this section must be

comparable to the fee required of a resident of this state

applying for a similar certificate or license. A person who

obtains a certificate or license by reciprocity under this

section must pay the federal registry fee and any other fee the

board imposes.

(e) An applicant for a certificate or license under this chapter

who is not a resident of this state must submit with the

application an irrevocable consent that states that service of

process in an action against the applicant arising out of the

applicant's activities as a certified or licensed appraiser in

this state may be made by delivery of the process to the

commissioner if the plaintiff in the action, using due diligence,

cannot obtain personal service on the applicant. If process is

served as provided by this subsection, the commissioner shall

immediately send a copy of the material served on the

commissioner by regular mail to the certified or licensed

appraiser at the appraiser's principal place of business and

residence address.

(f) The board shall request verification from the state in which

the applicant is certified or licensed to confirm that the

applicant's certificate or license is valid and in good standing.

The board may not issue a reciprocal certificate or license

without that verification.

(g) A reciprocal certificate or license expires on the earlier

of:

(1) the expiration date of the certificate or license held by

the applicant in the state in which the applicant is certified or

licensed; or

(2) the first anniversary of the date the reciprocal certificate

or license is issued.

(h) A reciprocal certificate or license is renewable under terms

adopted by the board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 10, eff. September 1, 2005.

Sec. 1103.210. DENIAL OF CERTIFICATE OR LICENSE. (a) The board

shall immediately provide written notice to the applicant of the

board's denial of a certificate or license under this chapter.

(b) An appeal of the denial of a certificate or license is

governed by Chapter 2001, Government Code.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.211. CERTIFICATE OR LICENSE RENEWAL; CONTINUING

EDUCATION. (a) A certificate or license issued by the board

expires on the second anniversary of the date of issuance.

(b) A person may renew a certificate or license by:

(1) paying the renewal fee; and

(2) providing evidence satisfactory to the board that the person

has completed continuing education requirements that comply with

the guidelines recognized by the Appraiser Qualifications Board

and that are imposed by rule under this chapter.

(c) For purposes of Subsection (b)(2), the board shall accept as

continuing education any educational offering that complies with

the guidelines recognized by the Appraiser Qualifications Board

that a certified or licensed appraiser was awarded by a national

appraiser organization approved by the board as a provider of

qualifying appraisal education.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 11, eff. September 1, 2005.

Sec. 1103.212. EXTENSION OF TIME TO COMPLETE REQUIRED CONTINUING

EDUCATION. (a) The board by rule may establish procedures under

which a person may obtain an extension of time to complete

continuing education required to renew the person's certificate

or license.

(b) The board may require a person under this section to:

(1) pay an additional fee, not to exceed $200, on or before the

date the certificate or license is scheduled to expire; and

(2) complete the required continuing education not later than

the 60th day after the date the certificate or license is

scheduled to expire.

(c) Notwithstanding the other provisions of this section, a

person must complete the required continuing education before

performing an appraisal in a federally related transaction.

Added by Acts 2003, 78th Leg., ch. 106, Sec. 2, eff. Sept. 1,

2003.

Sec. 1103.213. INACTIVE CERTIFICATE OR LICENSE. (a) The board

may place on inactive status the certificate or license of an

appraiser if the appraiser:

(1) is not acting as an appraiser;

(2) is not sponsoring an appraiser trainee; and

(3) submits a written application to the board before the

expiration date of the appraiser's certificate or license.

(b) The board may place on inactive status the certificate or

license of an appraiser whose certificate or license has expired

if the appraiser applies for inactive status on a form prescribed

by the board not later than the first anniversary of the

expiration date of the appraiser's certificate or license.

(c) An appraiser applying for inactive status shall terminate

the appraiser's association with each appraiser trainee sponsored

by the appraiser by giving written notice to each appraiser

trainee before the 30th day preceding the date the appraiser

applies for inactive status.

(d) An appraiser on inactive status:

(1) may not perform any activity regulated under this chapter;

(2) must pay annual renewal fees; and

(3) is not required to pay the annual registry fee described by

Section 1103.156(b).

(e) The board shall maintain a list of each appraiser whose

certificate or license is on inactive status.

(f) The board shall remove an appraiser's certificate or license

from inactive status if the appraiser:

(1) submits an application to the board;

(2) pays the required fee; and

(3) submits proof of complying with the continuing education

requirements of Section 1103.211 during the two years preceding

the date the application under Subdivision (1) is filed.

Added by Acts 2003, 78th Leg., ch. 106, Sec. 2, eff. Sept. 1,

2003.

SUBCHAPTER F. APPRAISER EXAMINATION

Sec. 1103.251. EXAMINATION REQUIRED. (a) The board shall

prescribe an appraiser examination.

(b) The examination must be:

(1) written; and

(2) approved by the Appraiser Qualifications Board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 12, eff. September 1, 2005.

Sec. 1103.252. TESTING SERVICE. (a) The board may contract

with a testing service to administer the examination.

(b) The testing service may collect an examination fee from an

applicant for a certificate or license.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.253. TIME AND PLACE OF EXAMINATION; NOTICE. (a) The

examination must be offered at least twice each year.

(b) The board shall determine the time and place of the

examination.

(c) The board shall give reasonable public notice of the

examination in the manner provided by board rule.

(d) The board may assign an examination date and site to an

applicant. The assigned site must be the nearest examination site

available to the applicant.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.254. EXAMINATION APPLICATION. (a) An application to

take the examination must be on a form prescribed by the board.

(b) An application is active for one year beginning on the date

the application is initially accepted. If an applicant does not

pass the examination before the first anniversary of the date of

application, the applicant must submit a new application and pay

the appropriate fees.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 13, eff. September 1, 2005.

Sec. 1103.255. EXPERIENCE NOT REQUIRED BEFORE TAKING

EXAMINATION. An applicant for the examination is not required to

fulfill the experience requirement for a certificate before

taking the examination.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.256. MINIMUM PASSING GRADE REQUIRED. To pass the

examination, an applicant for a certificate or license must

achieve the minimum score required by the Appraiser

Qualifications Board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 14, eff. September 1, 2005.

Sec. 1103.257. EXAMINATION RESULTS. (a) Not later than the

31st day after the date a person takes an examination, the board

shall notify the person of the examination results. If an

examination is graded or reviewed by a national testing service,

the board shall notify the person of the examination results not

later than the 31st day after the date the board receives the

results from the testing service.

(b) If notice of the examination results will be delayed for

more than 90 days after the examination date, the board shall

notify each examinee of the reason for the delay not later than

the 90th day.

(c) If requested in writing by a person who fails an

examination, the board shall provide to the person an analysis of

the person's performance on the examination. The request must be

accompanied by a statement identifying the person and a fee in an

amount determined by the board. The board shall release the

analysis directly to the person requesting the analysis.

(d) The examination results are confidential.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 15, eff. September 1, 2005.

Sec. 1103.258. REEXAMINATION. (a) An applicant who fails an

examination may apply to retake the examination on payment of an

additional examination fee.

(b) An applicant who has not successfully completed the

examination before the first anniversary of the date the

application was initially accepted by the board must submit a new

application and pay the required application fee.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 16, eff. September 1, 2005.

Sec. 1103.259. GUIDELINES; STUDY GUIDES. (a) The board shall:

(1) periodically publish guidelines and preexamination study

guides;

(2) make the guidelines and study guides available to

applicants; and

(3) update the guidelines and study guides as necessary.

(b) Except for the examination and other testing products that

require secure and discreet protection, the contents of study

guides and other material developed by the board or with the

board's authorization are within the public domain and free of

copyright restrictions.

(c) If material described by Subsection (b) is reproduced for

distribution by an entity other than the board:

(1) the material may not be sold at a price that exceeds the

cost of reproduction and distribution; and

(2) the entity may not profit from the distribution of the

material.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

SUBCHAPTER G. TEMPORARY APPRAISAL AUTHORITY FOR OUT-OF-STATE

APPRAISERS

Sec. 1103.301. REGISTRATION REQUIRED. A person certified or

licensed as a real estate appraiser by another state may appraise

real property in this state without holding a certificate or

license issued under this chapter if the person registers with

the board under this subchapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.302. REGISTRATION APPLICATION. A person may register

with the board by:

(1) completing a registration form prescribed by the board; and

(2) meeting the requirements established under this chapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.303. ELIGIBILITY REQUIREMENTS FOR REGISTRATION. A

person is eligible to register with the board if:

(1) the certification and licensing program under which the

person is certified or licensed by another state has not been

disapproved by the Appraiser Qualifications Board; and

(2) the person's appraisal business in this state does not

exceed six months.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 17, eff. September 1, 2005.

SUBCHAPTER H. APPRAISER TRAINEES

Sec. 1103.351. SPONSOR. (a) The board may authorize a

certified appraiser under this chapter to sponsor an appraiser

trainee.

(b) An appraiser trainee may have more than one sponsor.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.352. APPLICATION FOR APPRAISER TRAINEE. An applicant

for approval as an appraiser trainee and each sponsor of the

applicant must apply to the board on a form prescribed by the

board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.353. ELIGIBILITY REQUIREMENTS FOR APPRAISER TRAINEE.

To be eligible for approval as an appraiser trainee, an applicant

must:

(1) be at least 18 years of age;

(2) be a citizen of the United States or a lawfully admitted

alien;

(3) have been a resident of this state for the 60 days preceding

the date the application is filed;

(4) satisfy the board as to the applicant's honesty,

trustworthiness, and integrity; and

(5) meet all other qualifications established by the board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 18, eff. September 1, 2005.

Sec. 1103.354. APPRAISER TRAINEE REPORTS. (a) An appraiser

trainee approved by the board may perform an appraisal under the

direction of a sponsor or authorized supervisor of the trainee.

(b) The sponsor or authorized supervisor shall sign each report

prepared by the appraiser trainee performing an appraisal under

the direction of the sponsor or authorized supervisor. The

sponsor or authorized supervisor is responsible to the public and

to the board for the appraiser trainee's conduct.

(c) An appraiser trainee may co-sign a report prepared under

this section.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 19, eff. September 1, 2005.

Sec. 1103.355. DISCIPLINARY PROCEDURES FOR APPRAISER TRAINEES.

(a) The board may reprimand an appraiser trainee or suspend or

revoke an appraiser trainee's authority to act as an appraiser

trainee for a violation of this chapter or a rule adopted under

this subchapter.

(b) A disciplinary proceeding under this section is governed by

Chapter 2001, Government Code.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

SUBCHAPTER I. PRACTICE BY CERTIFIED OR LICENSED APPRAISER

Sec. 1103.401. USE OF INSIGNIA OR IDENTIFICATION. (a) A person

may not use any title, designation, initials, or other insignia

or identification that would mislead the public as to the

person's credentials, qualifications, or competency to perform a

certified appraisal service unless the person is certified under

this chapter.

(b) A person may not use any title, designation, initials, or

other insignia or identification that would mislead the public as

to the person's credentials, qualifications, or competency to

perform licensed appraisal services unless the person is licensed

under this chapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.402. SIGNATURE OR ENDORSEMENT ON APPRAISAL. (a) A

person certified or licensed under this chapter may not sign or

endorse an appraisal unless the appraisal is substantially

produced by that person.

(b) For purposes of this section, an appraisal is substantially

produced by a person who contributes in a material and verifiable

manner to the research or analysis that results in the final

opinion of value expressed in the appraisal.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.403. OFFICE LOCATION. (a) A certified or licensed

appraiser who is a resident of this state shall maintain a fixed

office in this state.

(b) Not later than the 10th day after the date a certified or

licensed appraiser moves from a previously designated address,

the appraiser shall:

(1) notify the board of the new office location on a form

prescribed by the board; and

(2) pay a fee set by the board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.404. BUSINESS RECORDS. A person who is certified or

licensed under this chapter or who has applied for a certificate

or license shall retain all business records relating to each

appraisal performed by the person until at least the fifth

anniversary of the date of the appraisal.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.405. PROFESSIONAL STANDARDS. A person who holds a

license, certificate, or approval issued under this chapter shall

comply with:

(1) the most current edition of the Uniform Standards of

Professional Appraisal Practice adopted by the Appraisal

Standards Board of the Appraisal Foundation; or

(2) other standards provided by board rule that are at least as

stringent as the Uniform Standards of Professional Appraisal

Practice.

Added by Acts 2005, 79th Leg., Ch.

703, Sec. 20, eff. September 1, 2005.

SUBCHAPTER J. DISCIPLINARY PROCEEDINGS GENERALLY

Sec. 1103.451. COMPLAINT. (a) Any person, including a member

of the board, may initiate the complaint process under this

subchapter by filing with the board a written complaint on a form

prescribed by the board.

(b) The board, on its own motion, may file a formal complaint

against:

(1) a certified or licensed appraiser; or

(2) an appraiser trainee who is approved by the board under

Subchapter H.

(c) A complaint alleging that a certified or licensed appraiser

or an approved appraiser trainee has violated a rule of

professional conduct adopted by the board must be filed with the

board.

(d) The board, on its own motion, may file a formal complaint

against a person who engages in an activity for which a

certificate or license is required under this chapter without

holding a certificate or license. This subchapter and Subchapter

K apply to a complaint filed under this subsection in the same

manner as they apply to a complaint filed under Subsection (b).

(e) A complaint alleging a violation by a person licensed,

certified, or approved under this chapter may not be terminated

solely on the basis that the person fails to renew the

certificate, license, or approval.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 106, Sec. 3, eff.

Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

703, Sec. 21, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

704, Sec. 1, eff. September 1, 2005.

Sec. 1103.452. REVIEW AND INVESTIGATION. (a) On receipt of a

complaint or on its own motion, the board shall review and

investigate an alleged act or omission that the board believes is

a ground for disciplinary action.

(b) An investigator designated by the presiding officer of the

board shall investigate each allegation in a complaint to

determine whether probable cause exists for a hearing on the

complaint.

(c) If the board determines that a complaint does not present

facts that are grounds for disciplinary action, the board or the

commissioner shall dismiss the complaint and may not take further

action.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 2, eff. September 1, 2005.

Sec. 1103.453. PEER INVESTIGATIVE COMMITTEE. (a) The presiding

officer of the board, with the advice and consent of the

executive committee, may appoint a peer investigative committee.

(b) A peer investigative committee consists of three certified

or licensed appraisers. The presiding officer of the committee

must be an appraiser member of the board. Each remaining

committee member shall certify to the board that the member is

familiar with the appraisal process in the appraisal that is the

subject of the complaint.

(c) The peer investigative committee shall:

(1) review and determine the facts of a complaint; and

(2) submit a written report regarding the complaint to the board

in a timely manner.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.454. GENERAL SUBPOENA AUTHORITY. (a) The board may

request and, if necessary, compel by subpoena:

(1) the attendance of witnesses for examination under oath; and

(2) the production of records, documents, and other evidence

relevant to the investigation of an alleged violation of this

chapter for inspection and copying.

(b) The board may also issue a subpoena for purposes of an

investigation of a complaint to determine whether the board

should institute a contested case proceeding.

(c) If a person does not comply with a subpoena, the board,

acting through the attorney general, may file suit to enforce the

subpoena in a district court in Travis County or in the county in

which a hearing conducted by the board may be held.

(d) The court shall order compliance with the subpoena if the

court finds that good cause exists for the issuance of the

subpoena.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.455. REPORT OF INVESTIGATION REQUIRED. (a) At the

conclusion of the investigation of a complaint, the investigator

shall submit to the board a written report to enable the board to

determine what further action is necessary.

(b) The report must contain:

(1) statements of fact;

(2) the recommendations of the investigator; and

(3) the position or defense of the investigated appraiser or

appraiser trainee.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 3, eff. September 1, 2005.

Sec. 1103.456. ACTION BASED ON REPORT. Based on the report

submitted under Section 1103.455, the board may:

(1) order further investigation of the complaint;

(2) permit the appraiser or appraiser trainee who is the subject

of the complaint to attend an informal discussion as provided by

Section 1103.457;

(3) determine that there is not probable cause to believe that a

violation occurred and dismiss the case; or

(4) determine that there is probable cause to believe that a

violation occurred and proceed as the complainant with a

contested case hearing under Subchapter K.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 4, eff. September 1, 2005.

Sec. 1103.457. INFORMAL DISCUSSION OF COMPLAINT. (a) On the

action of the board or on request of the appraiser or appraiser

trainee who is the subject of a complaint, the board may permit

the appraiser or appraiser trainee an opportunity to appear

before the board or an agent of the board for a voluntary,

informal discussion of the facts and circumstances of the alleged

violation.

(b) Repealed by Acts 2005, 79th Leg., Ch. 704, Sec. 16, eff.

September 1, 2005.

(c) The board may seek a consent order as provided by Section

1103.458 at the time of the informal discussion.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 5, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

704, Sec. 16, eff. September 1, 2005.

Sec. 1103.458. CONSENT ORDER. (a) The board may negotiate a

settlement and enter into a consent order with an appraiser or

appraiser trainee who is the subject of a complaint under this

subchapter.

(b) Repealed by Acts 2005, 79th Leg., Ch. 704, Sec. 16, eff.

September 1, 2005.

(c) A consent order must be:

(1) approved by the board; and

(2) signed by the commissioner and the appraiser or appraiser

trainee who is the subject of the complaint.

(d) A board member who participates in negotiating a consent

order under this section is not disqualified from participating

in the adjudication of a contested case that results from the

negotiation.

(e) An appraiser or appraiser trainee who consents to negotiate

under this section waives the right to notice and the opportunity

to be heard under Chapter 2001, Government Code, during the

negotiation.

(f) If the parties agree to a consent order, a statement of

charges shall be filed with the consent order.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 6, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

704, Sec. 16, eff. September 1, 2005.

Sec. 1103.459. CONSENT AGREEMENT. (a) The board may enter into

a consent agreement as provided by this section rather than

taking action against a violator of the rules of professional

conduct adopted by the board.

(b) Repealed by Acts 2005, 79th Leg., Ch. 704, Sec. 16, eff.

September 1, 2005.

(c) A consent agreement must be:

(1) approved by the board; and

(2) signed by the commissioner and the appraiser or appraiser

trainee who is the subject of the complaint.

(d) An appraiser or appraiser trainee may be prosecuted for

failure to comply with a consent agreement.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 7, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

704, Sec. 16, eff. September 1, 2005.

Sec. 1103.460. PUBLIC AVAILABILITY OF FINAL DECISION. A final

decision of the board relating to a disciplinary action,

including a consent order or consent agreement, may be provided

to another state or made available to the public.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

SUBCHAPTER K. CONTESTED CASE HEARINGS

Sec. 1103.501. APPLICABILITY OF ADMINISTRATIVE PROCEDURE LAW.

Except as otherwise provided by this chapter, a proceeding under

this chapter is subject to Chapter 2001, Government Code.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.502. NOTICE OF HEARING. (a) The board shall provide

notice to the parties of a contested case hearing.

(b) The notice must:

(1) state the time and place of the hearing; and

(2) state that the appraiser or appraiser trainee must submit an

answer as prescribed by Section 1103.505 not later than the 20th

day after the date the appraiser or appraiser trainee receives

the notice.

(c) Not later than the 30th day before the hearing date, the

board shall personally deliver or send by certified mail, return

receipt requested, to the appraiser or appraiser trainee:

(1) the notice prescribed by this section; and

(2) the statement of charges prescribed by Section 1103.503.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 8, eff. September 1, 2005.

Sec. 1103.503. STATEMENT OF CHARGES. (a) The attorney

representing the board shall prepare the statement of charges.

(b) The statement of charges must:

(1) state each act or omission with which the appraiser or

appraiser trainee is charged, including any standard of

professional practice or rule of professional conduct alleged to

have been violated; and

(2) be sufficiently detailed to enable the appraiser or

appraiser trainee to prepare a defense.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 9, eff. September 1, 2005.

Sec. 1103.504. ATTORNEY GENERAL REPRESENTATION. The attorney

general may not represent the board in a contested case before

the State Office of Administrative Hearings.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 9, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

1411, Sec. 47, eff. September 1, 2007.

Sec. 1103.505. ANSWER. The appraiser's or appraiser trainee's

answer must contain:

(1) the name, address, and telephone number of the appraiser or

appraiser trainee;

(2) a specific statement regarding any allegation in the

complaint, which must:

(A) be in the form of an admission or denial; and

(B) contain any explanation or other statement of mitigating

circumstances the appraiser or appraiser trainee determines

relevant; and

(3) any additional information the appraiser or appraiser

trainee determines relevant to the investigation that may assist

in deciding the contested case.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 9, eff. September 1, 2005.

Sec. 1103.506. DISCOVERY PROCEDURES. The discovery procedures

that are applicable to a civil action are applicable to a

proceeding under this chapter.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.507. SUBPOENA IN CONTESTED CASE. (a) The

commissioner shall issue a subpoena to compel the attendance of a

witness or the production of records or other evidence if:

(1) a party to the proceeding requests the subpoena orally or in

writing;

(2) the request specifies each item of evidence sought and the

full name and address of each witness sought; and

(3) the party shows reasonable cause.

(b) A party or the board may petition the district court to

enforce a subpoena issued under this section. If the party or the

board makes a proper showing, the district court shall order the

person to whom the subpoena is issued to obey the subpoena.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.508. HEARING. (a) A contested case hearing shall be

conducted before an administrative law judge of the State Office

of Administrative Hearings.

(b) Repealed by Acts 2005, 79th Leg., Ch. 704, Sec. 16, eff.

September 1, 2005.

(c) Repealed by Acts 2007, 80th Leg., R.S., Ch. 1411, Sec.

59(16), eff. September 1, 2007.

(d) The administrative law judge shall control the proceedings

and may:

(1) administer oaths;

(2) admit or exclude testimony or other evidence; and

(3) rule on all motions and objections.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 10, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

704, Sec. 11, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

704, Sec. 16, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

1411, Sec. 48, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1411, Sec. 59(16), eff. September 1, 2007.

Sec. 1103.510. FAILURE TO APPEAR. (a) If an appraiser or

appraiser trainee receives proper notice of a contested case

hearing but does not appear in person at the hearing, the

administrative law judge may conduct the hearing or enter an

order, as the judge determines appropriate.

(b) The appraiser or appraiser trainee is bound by the results

of the hearing to the same extent as if the appraiser or

appraiser trainee had appeared.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

704, Sec. 12, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

1411, Sec. 49, eff. September 1, 2007.

Sec. 1103.511. OPEN HEARING. A contested case hearing is open

to the public.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Sec. 1103.512. RECORD OF PROCEEDINGS. (a) Contested case

proceedings shall be recorded by:

(1) mechanical or electrical means; or

(2) a certified shorthand reporter.

(b) At the request of a party, the proceedings or any part of

the proceedings shall be transcribed. The expense of the

transcription shall be charged to the requesting party.

(c) Before testimony may be presented, the record must:

(1) show the identities of:

(A) any board members present;

(B) the administrative law judge; and

(C) the parties and their representatives; and

(2) state that all testimony is being recorded.

(d) The recording, stenographic notes, or transcription of oral

proceedings shall be filed with and maintained by the board until

at least the fifth anniversary of the date of the decision in the

contested case.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1411, Sec. 50, eff. September 1, 2007.

Sec. 1103.513. ORDER OF PROCEEDINGS. A contested case hearing

shall be conducted in the following order, subject to

modification at the discretion of the administrative law judge:

(1) the administrative law judge shall read a summary of the

charges and answers to the charges and other responsive pleadings

filed by the appraiser or appraiser trainee before the hearing;

(2) the attorney representing the board shall make a brief

opening statement, including a summary of the charges and a list

of the witnesses and documents to support the charges;

(3) the appraiser or appraiser trainee may make an opening

statement, including the names of any witnesses the appraiser or

appraiser trainee may call;

(4) the attorney representing the board shall present evidence,