TALCB Rules

Chapter 151 General Administration

§151.1 Definitions

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.
1. Agency–The Texas Real Estate Commission and the Texas Appraiser Licensing and Certification Board.
2. Board–The Texas Appraiser Licensing and Certification Board.
3. Chief Financial Officer–The Chief Financial Officer of the Texas Real Estate Commission.
4. Commission–The Texas Real Estate Commission.
5. Comptroller–The Comptroller of Public Accounts.
6. DIR–The Department of Information Resources.
7. Executive Director–The Executive Director of the Commission and the Board.
8. TAC–The Texas Administrative Code.
9. TFC–The Texas Facilities Commission.

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§151.2 Charges for Copies of Public Information

The Board adopts by reference the rules promulgated by the Commission regarding Charges for Copies of Public Information as set forth in 22 TAC §534.2.

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§151.3 Employee Training and Education

The Board may provide training and education for its employees in accordance with Subchapter C, Chapter 656, Texas Government Code.
The Board may spend public funds as appropriate to pay the costs associated with employee training, including, but not limited to, salary, tuition and other fees, travel, and living expenses, training stipend, expense of training materials, and other necessary expenses of an instructor, student, or other participant in a training or education program.
The Executive Director shall adopt policies related to training for Board employees, including eligibility and obligations assumed upon completion.
Before an employee may receive reimbursement of tuition expenses for successful completion of a training or education program offered by an accredited institution of higher education, the Executive Director must pre-approve the program and authorize the tuition reimbursement payment.
Approval to participate in any portion of the Board's training and education program does not affect an employee's at-will status.
Participation in the training and education program does not constitute a guarantee or indication of continued employment, nor does it constitute a guarantee or indication of future employment in a current or prospective position.

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§151.4 Historically Underutilized Businesses Program

To comply with Texas Government Code §2161.003, the Board adopts by reference the rules of the Comptroller of Public Accounts in 34 TAC Part 1, Chapter 20, Subchapter D, Division 1 (relating to the Historically Underutilized Businesses).

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§151.5 Bid Opening and Tabulation

To comply with Texas Government Code, §2156.005(d), the Board adopts by reference the rules of the Texas Comptroller of Public Accounts in 34 TAC §20.207 (relating to Competitive Sealed Bidding).

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§151.6 Negotiation and Mediation of Certain Contract Disputes

To comply with Texas Government Code, §2260.052(c), the Board adopts by reference the rules of the Office of the Attorney General in 1 TAC Part 3, Chapter 68 (relating to Negotiation and Mediation of Certain Contract Disputes). The rules set forth a process to permit parties to structure a negotiation or mediation in a manner that is most appropriate for a particular dispute regardless of the contract's complexity, subject matter, dollar amount, or method and time of performance.

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§151.7 Vendor Protest Procedures

The Board adopts by reference the rules promulgated by the Commission regarding Vendor Protest Procedures as set forth in 22 TAC §534.7.

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Chapter 153 Rules Relating to Provisions of the Texas Appraiser Licensing and Certification Act

§153.1 Definitions

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:
1. ACE–Appraiser Continuing Education.
2. Act–The Texas Appraiser Licensing and Certification Act.
3. Administrative Law Judge–A judge employed by the State Office of Administrative Hearings (SOAH).
4. Analysis–The act or process of providing information, recommendations or conclusions on diversified problems in real estate other than estimating value.
5. Applicant–A person seeking a certification, license, approval as an appraiser trainee, or registration as a temporary out-of-state appraiser from the Board.
6. Appraisal practice–Valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review.
7. Appraisal report–A report as defined by and prepared under the USPAP.
8. Appraisal Standards Board–The Appraisal Standards Board (ASB) of the Appraisal Foundation, or its successor.
9. Appraisal Subcommittee–The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council or its successor.
10. Appraiser Qualifications Board–The Appraiser Qualifications Board (AQB) of the Appraisal Foundation, or its successor.
11. Appraiser trainee–A person approved by the Board to perform appraisals or appraiser services under the active, personal and diligent supervision and direction of the supervisory appraiser.
12. Board–The Texas Appraiser Licensing and Certification Board.
13. Certified General Appraiser–A certified appraiser who is authorized to appraise all types of real property.
14. Certified Residential Appraiser–A certified appraiser who is authorized to appraise one-to-four unit residential properties without regard to value or complexity.
15. Classroom course–A course in which the instructor and students interact face to face, in real time and in the same physical location.
16. Classroom hour–Fifty minutes of instruction out of each sixty-minute segment of actual classroom session time.
17. Client–Any party for whom an appraiser performs an assignment.
18. College–Junior or community college, senior college, university, or any other postsecondary educational institution established by the Texas Legislature, which is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools or like commissions of other regional accrediting associations, or is a candidate for such accreditation.
19. Executive Director–The Executive Director of the Texas Appraiser Licensing and Certification Board.
20. Complainant–Any person who has made a written complaint to the Board against any person subject to the jurisdiction of the Board.
21. Complex appraisal–An appraisal in which the property to be appraised, the form of ownership, market conditions, or any combination thereof are atypical.
22. Continuing education cycle–the period in which a license holder must complete continuing education as required by the AQB.
23. Council–The Federal Financial Institutions Examination Council (FFIEC) or its successor.
24. Day–A calendar day unless clearly indicated otherwise.
25. Distance education–Any educational process based on the geographical separation of student and instructor, as defined by the AQB. Distance education includes synchronous delivery, when the instructor and student interact simultaneously online; asynchronous delivery, when the instructor and student interaction is non-simultaneous; and hybrid or blended course delivery that allows for both in-person and online interaction, either synchronous or asynchronous.
26. Feasibility analysis–A study of the cost-benefit relationship of an economic endeavor.
27. Federal financial institution regulatory agency–The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, or the successors of any of those agencies.
28. Federally related transaction–Any real estate-related transaction that requires the services of an appraiser and that is engaged in, contracted for, or regulated by a federal financial institution regulatory agency.
29. Foundation–The Appraisal Foundation (TAF) or its successor.
30. Inactive certificate or license–A general certification, residential certification, or state license which has been placed on inactive status by the Board.
31. License–The whole or a part of any Board permit, certificate, approval, registration or similar form of permission required by law.
32. License holder–A person certified, licensed, approved, authorized or registered by the Board under the Texas Appraiser Licensing and Certification Act.
33. Licensed Residential Appraiser–A licensed appraiser who is authorized to appraise non-complex one-to-four residential units having a transaction value less than $1 million and complex one-to-four residential units having a transaction value less than $400,000.
34. Licensing–Includes the Board processes respecting the granting, disapproval, denial, renewal, certification, revocation, suspension, annulment, withdrawal or amendment of a license.
35. Market analysis–A study of market conditions for a specific type of property.
36. Nonresidential real estate appraisal course–A course with emphasis on the appraisal of nonresidential real estate properties which include, but are not limited to, income capitalization, income property, commercial appraisal, rural appraisal, agricultural property appraisal, discounted cash flow analysis, subdivision analysis and valuation, or other courses specifically determined by the Board.
37. Nonresidential property–A property which does not conform to the definition of residential property.
38. Party–The Board and each person or other entity named or admitted as a party.
39. Person–Any individual, partnership, corporation, or other legal entity.
40. Personal property–Identifiable tangible objects and chattels that are considered by the general public as being "personal," for example, furnishings, artwork, antiques, gems and jewelry collectibles, machinery and equipment; all tangible property that is not classified as real estate.
41. Petitioner–The person or other entity seeking an advisory ruling, the person petitioning for the adoption of a rule, or the party seeking affirmative relief in a proceeding before the Board.
42. Pleading–A written document, submitted by a party or a person seeking to participate in a case as a party, that requests procedural or substantive relief, makes claims, alleges facts, makes a legal argument, or otherwise addresses matters involved in the case.
43. Practical Applications of Real Estate Appraisal (PAREA)–Training Programs approved by the AQB that utilize simulated experience training and serve as an alternative to the traditional Supervisor/Trainee experience model.
44. Qualifying real estate appraisal course–Those courses approved by the Appraiser Qualifications Board as qualifying education.
45. Real estate–An identified parcel or tract of land, including improvements, if any.
46. Real estate appraisal experience–Valuation services performed as an appraiser or appraiser trainee by the person claiming experience credit. Significant real property appraisal experience requires active participation; mere observation of another appraiser's work is not real estate appraisal experience.
47. Real estate-related financial transaction–Any transaction involving: the sale, lease, purchase, investment in, or exchange of real property, including an interest in property or the financing of property; the financing of real property or an interest in real property; or the use of real property or an interest in real property as security for a loan or investment including a mortgage-backed security.
48. Real property–The interests, benefits, and rights inherent in the ownership of real estate.
49. Record–All notices, pleadings, motions and intermediate orders; questions and offers of proof; objections and rulings on them; any decision, opinion or report by the Board; and all staff memoranda submitted to or considered by the Board.
50. Report–Any communication, written or oral, of an appraisal, review, or analysis; the document that is transmitted to the client upon completion of an assignment.
51. Residential property–Property that consists of at least one but not more than four residential units.
52. Respondent–Any person subject to the jurisdiction of the Board, licensed or unlicensed, against whom any complaint has been made.
53. Supervisory Appraiser–A certified general or residential appraiser who is designated as a supervisory appraiser, as defined by the AQB, for an appraiser trainee. The supervisory appraiser is responsible for providing active, personal and diligent supervision and direction of the appraiser trainee.
54. Trade Association–A nonprofit voluntary member association or organization:
  1. whose membership consists primarily of persons who are licensed as appraisers and pay membership dues to the association or organization;
  2. that is governed by a board of directors elected by the members; and
  3. that subscribes to a written code of professional conduct or ethics.
55. USPAP–Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation.
56. Workfile–Documentation necessary to support an appraiser's analysis, opinions, and conclusions, and in compliance with the record keeping provisions of USPAP.

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§153.3 The Board

A quorum of the Board consists of five members.
Meetings of the Board may be called by the chair on a motion by the chair or upon the written request of five members. Unless state law or Board rules require otherwise, meetings shall be conducted in accordance with Robert's Rules of Order.
At the end of a term, members shall continue to serve until their successors are qualified.
Public Comments at Regular Board Meetings.
1. A member of the public may comment for up to three minutes on any agenda item or non-agenda item at a regular quarterly Board meeting.
2. The Chair of the Board may extend the time for public comments at the Chair's discretion.

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§153.5 Fees

The Board shall charge and the Executive Director shall collect the following fees:
1. Effective January 1, 2022:
  1. a fee of $560 for an application, reinstatement, or timely renewal of a certified general appraiser license;
  2. a fee of $460 for an application, reinstatement, or timely renewal of a certified residential appraiser license;
  3. a fee of $400 for an application, reinstatement, or timely renewal of a licensed residential appraiser license; and
  4. a fee of $250 for an application, reinstatement, or timely renewal of an appraiser trainee license;
2. a fee equal to 1-1/2 times the timely renewal fee for the late renewal of a license within 90 days of expiration;
3. a fee equal to two times the timely renewal fee for the late renewal of a license more than 90 days but less than six months after expiration;
4. a fee of $250 for nonresident license;
5. the national registry fee in the amount charged by the Appraisal Subcommittee;
6. an application fee for licensure by reciprocity in the same amount as the fee charged for a similar license issued to a Texas resident;
7. a fee of $200 for an extension of time to complete required continuing education;
8. a fee of $50 to request a return to active status;
9. a fee of $50 for evaluation of an applicant's fitness;
10. an examination fee as provided in the Board's current examination administration agreement;
11. a fee of $100 to request a voluntary appraiser experience review;
12. the fee charged by the Federal Bureau of Investigation, the Texas Department of Public Safety or other authorized entity for fingerprinting or other service for a national or state criminal history check in connection with a license application;
13. a base fee of $50 for approval of an ACE course;
14. a content review fee of $5 per classroom hour for approval of an ACE course;
15. a course approval fee of $50 for approval of an ACE course currently approved by the AQB or another state appraiser regulatory agency;
16. a one-time offering course approval fee of $25 for approval of a 2-hour ACE course to be offered in-person only one time;
17. a fee of $200 for an application for an ACE provider approval or subsequent approval; and
18. any fee required by the Department of Information Resources for establishing and maintaining online applications or as a subscription or convenience fee for use of an online payment system.
Fees must be submitted in U.S. funds payable to the order of the Texas Appraiser Licensing and Certification Board. Fees are not refundable once an application has been accepted for filing. Persons who have submitted a payment that has been dishonored, and who have not made good on that payment within 30 days, for whatever reason, must submit all replacement fees in the form of a cashier's check, money order, or online credit card payment.
Licensing fees are waived for members of the Board staff who must maintain a license for employment with the Board only and are not also using the license for outside employment.

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§153.6 Military Service Member, Veteran, or Military Spouse Applications

Definitions.
1. "Military service member" means a person who is on current full-time military service in the armed forces of the United States or active duty military service as a member of the Texas military forces, as defined by Section 437.001, Government Code, or similar military service of another state.
2. "Military spouse" means a person who is married to a military service member.
3. "Veteran" means a person who has served as a military service member and who was discharged or released from active duty.
The purpose of this section is to establish procedures authorized or required by Texas Occupations Code Chapter 55 and is not intended to modify or alter rights or legal requirements that may be provided under federal law, Chapter 1103 of the Occupations Code, or requirements established by the AQB.
Expedited application.
1. The Board will process an application for a military service member, veteran, or military spouse on an expedited basis.
2. If an applicant under this section holds a current license issued by another state or jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the license or certification issued in this state, the Board will issue the license not later than the 30th day after receipt of the application.
Waiver of fees.
1. The Board will waive the license application fee and examination fees for an applicant who is:
  1. a military service member or veteran whose military service, training, or education substantially meets all of the requirements for a license; and
  2. a military service member, veteran, or military spouse who holds a current license issued by another jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the same license in this state.
2. The executive director or his or her designee may waive the application fee of a military service member, veteran, or military spouse who is not currently licensed, but within the five years preceding the application date held a license in this state and applies for reinstatement in accordance with subsection (f)(2) of this section.
Credit for military experience.
1. For an applicant who is a military service member or veteran, the Board shall credit any verifiable military service, training, or education toward the licensing requirements, other than an examination requirement.
2. The Board shall award credit under this subsection consistent with the criteria adopted by the AQB and any exceptions to those criteria as authorized by the AQB.
3. This subsection does not apply to an applicant who holds a restricted license issued by another jurisdiction.
Reciprocity and reinstatement.
1. For a military service member, veteran, or military spouse who holds a current license issued by another jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the license in this state may apply by submitting an application for license by reciprocity and any required supplemental documents for military service members, military veterans, or military spouses.
2. For a military service member, veteran, or military spouse who is not currently licensed, but within the five years preceding the application date held a license in this state may submit an application for reinstatement and any required supplemental documents for military service members, military veterans, or military spouses.
3. For a military service member and military spouse who wants to practice in Texas in accordance with 55.0041, Occupations Code:
  1. the Board will issue a license by reciprocity if:
    1. the applicant submits:
      1. notice to the Board of the applicant's intent to practice in Texas by submitting an application for reciprocity and any supplemental document for military service members or military spouses; and
      2. a copy of the member's military identification card; and
    2. no later than 30 days upon receipt of the documents required under subparagraph (A) of this paragraph, the Board verifies that the member or spouse is currently licensed and in good standing with the other state or jurisdiction.
  2. a person authorized to practice in this state under this subsection must comply with all other laws and regulations applicable to the license.
  3. The event of a divorce or similar event that affects a person's status as a military spouse shall not affect the validity of a license issued under this subsection.

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§153.8 Scope of Practice

License holders are bound by the USPAP edition in effect at the time of the appraisal.
Certified General Real Estate Appraisers may appraise all types of real property without regard to transaction value or complexity.
Certified Residential Real Estate Appraisers:
1. may appraise one-to-four residential units without regard to transaction value or complexity;
2. may appraise vacant or unimproved land for which the highest and best use is for one-to-four family purposes;
3. may not appraise subdivisions; and
4. may associate with a state certified general real estate appraiser, who shall sign the appraisal report, to appraise non-residential properties.
State Licensed Real Estate Appraisers:
1. may appraise non-complex one-to-four residential units having a transaction value less than $1 million and complex one-to-four residential units having a transaction value less than $400,000;
2. may appraise vacant or unimproved land for which the highest and best use is for one-to-four unit residential purposes;
3. may not appraise subdivisions; and
4. may associate with a state certified general real estate appraiser, who shall sign the appraisal report, to appraise non-residential properties.
Appraiser Trainees may appraise those properties, under the active, personal and diligent supervision of their sponsoring appraiser, which the sponsoring appraiser is permitted to appraise.
If an appraiser or appraiser trainee is a person with a disability (as defined in the Americans with Disabilities Act or regulations promulgated thereunder), an unlicensed assistant may perform certain services normally requiring a license for or on behalf of the appraiser or appraiser trainee, provided that:
1. the services performed by the assistant do not include appraisal analysis;
2. the assistant only provides such services as would constitute a reasonable accommodation;
3. the assistant is under the direct control of the appraiser or appraiser trainee;
4. the appraiser or appraiser trainee is as close in physical proximity as is practical to the activity;
5. the assistant is not represented as being or having the authority to act as an appraiser or appraiser trainee; and
6. if the assistant provides significant assistance, the appraisal report includes the name of the assistant.

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§153.9 Applications

A person desiring to be licensed as an appraiser or appraiser trainee shall file an application using forms prescribed by the Board or the Board's online application system, if available. The Board may decline to accept for filing an application that is materially incomplete or that is not accompanied by the appropriate fee. Except as provided by the Act, the Board may not grant a license to an applicant who has not:
1. paid the required fees;
2. submitted a complete and legible set of fingerprints as required in §153.12 of this title (relating to Criminal History Checks);
3. satisfied any experience and education requirements established by the Act, Board rules, and the AQB;
4. successfully completed any qualifying examination prescribed by the Board;
5. provided all supporting documentation or information requested by the Board in connection with the application;
6. satisfied all unresolved enforcement matters and requirements with the Board; and
7. met any additional or superseding requirements established by the Appraisal Qualifications Board.
Termination of application. An application is subject to no further evaluation or processing if within one year from the date an application is filed, an applicant fails to satisfy:
1. a current education, experience or exam requirement; or
2. the fingerprint and criminal history check requirements in §153.12 of this title.
A license is valid for the term for which it is issued by the Board unless suspended or revoked for cause and unless revoked, may be renewed in accordance with the requirements of §153.17 of this title (relating to License Renewal).
The Board may deny a license to an applicant who fails to satisfy the Board as to the applicant's honesty, trustworthiness, and integrity.
The Board may deny a license to an applicant who submits incomplete, false, or misleading information on the application or supporting documentation.
When an application is denied by the Board, no subsequent application will be accepted within two years after the date of the Board's notice of denial as required in §157.7 of this title (Denial of a License, Renewal or Reinstatement; Adverse Action Against a License Holder).

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§153.10 Issuance of Certification, License, or Trainee Approval

A license is issued when all requirements have been met and it is entered into the Board's database and a license number has been assigned.
An applicant is not licensed and may not represent himself or herself as a certified or licensed appraiser, appraiser trainee, or registered temporary out-of-state appraiser until the license has been issued by the Board.
A license issued by the Board is valid for two years from the date of issuance.
A license issued to a temporary out-of-state appraiser is valid for six months from the date of issuance, unless otherwise determined by the Board.
A license is not renewed until the renewal has been issued by the Board.

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§153.11 Examinations

Administration of Licensing Examinations.
1. An examination required for any license issued by the Board will be conducted by the testing service with which the Board has contracted for the administration of examinations.
  1. The testing service shall schedule and conduct the examinations in the manner required by the contract between the Board and the testing service.
  2. Examinations shall be administered at locations designated by the exam administrator.
  3. The testing service administering the examinations is required to provide reasonable accommodations for any applicant with a verifiable disability. Applicants must contact the testing service to arrange an accommodation. The testing service shall determine the method of accommodation based on the particular circumstances of each case.
2. Each examination shall be consistent with the examination criteria and examination content outline of the AQB for the category of license sought. To become licensed, an applicant must achieve a passing score acceptable to the AQB on the examination.
3. Successful completion of the examination is valid for a period of 24 months.
4. An applicant who fails the examination three consecutive times may not apply for reexamination or submit a new license application unless the applicant submits evidence satisfactory to the Board that the applicant has completed 15 additional hours of qualifying education after the date the applicant failed the examination for the third time.
Examination Fees.
1. The examination fee must be paid each time the examination is taken.
2. An applicant who is registered for an examination and fails to attend shall forfeit the examination fee.
Exam Admission.
1. To be admitted to an examination, applicants must present the following documents:
  1. exam registration paperwork as required by the testing service under contract with the Board; and
  2. official photo-bearing personal identification.
2. The testing service shall deny entrance to the examination to any person who cannot provide adequate identification.
3. The testing service may refuse to admit an applicant who arrives after the time the examination is scheduled to begin or whose conduct or demeanor would be disruptive to other persons taking examinations at the testing location.
Confidentiality of Examination.
1. The testing service may confiscate examination materials, dismiss an applicant, and fail the applicant for violating or attempting to violate the confidentiality of the contents of an examination.
2. No credit shall be given to applicants who are dismissed from an examination, and dismissal may result in denial of an application.
3. The Board, or the testing service under contract with the Board, may file theft charges against any person who removes or attempts to remove an examination or any portion thereof or any written material furnished with the examination whether by actual physical removal or by transcription.
4. The Board may deny, suspend, or revoke a license for disclosing to another person the content of any portion of an examination.

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§153.12 Criminal History Checks

An applicant or license holder applying for or renewing a license issued by the Board must submit a complete and legible set of fingerprints, in a manner approved by the Board, to the Board, the Texas Real Estate Commission, the Texas Department of Public Safety, or other authorized entity for the purpose of obtaining criminal history record information from the Texas Department of Public Safety and the Federal Bureau of Investigation.
The Board will conduct a criminal history check of each applicant for a license or renewal of a license.

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§153.13 Education Required for Licensing

Applicants for a license must meet all educational requirements established by the AQB.
The Board may accept a course of study to satisfy educational requirements for licensing established by the Act or by this section if the Board has approved the course and determined it to be a course related to real estate appraisal.
The Board will approve courses for licensing upon a determination of the Board that:
1. the subject matter of the course was appraisal related;
2. the course was offered by an accredited college or university, or the course was approved by the AQB under its course approval process as a qualifying education course;
3. the applicant obtained credit received in a classroom presentation the hours of instruction for which credit was given and successfully completed a final examination for course credit except as specified in subsection (i) of this section (relating to distance education); and
4. the course was at least 15 classroom hours in duration, including time devoted to examinations that are considered to be part of the course.
The Board may require an applicant to furnish materials such as course outlines, syllabi, course descriptions or official transcripts to verify course content or credit.
Course providers may obtain prior approval of a course by filing forms prescribed by the Board and submitting a letter indicating that the course has been approved by the AQB under its course approval process. Approval of a course based on AQB approval expires on the date the AQB approval expires and is automatically revoked upon revocation of the AQB approval.
If the transcript reflects the actual hours of instruction the student received from an acceptable provider, the Board will accept classroom hour units of instruction as shown on the transcript or other document evidencing course credit. Fifteen classroom hours of credit may be awarded for one academic semester hour of credit.
Distance education courses may be acceptable to meet the classroom hour requirement, or its equivalent, provided that the course is approved by the Board, that a minimum time equal to the number of hours of credit elapses from the date of course enrollment until its completion, and that the course meets the criteria listed in paragraph (1) or (2) of this subsection.
1. The course must have been presented by an accredited college or university that offers distance education programs in other disciplines; and
  1. the person has successfully completed a written examination administered to the positively identified person at a location and proctored by an official approved by the college or university; and
  2. the content and length of the course must meet the requirements for real estate appraisal related courses established by this chapter and by the requirements for qualifying education established by the AQB and is equivalent to a minimum of 15 classroom hours.
2. The course has received approval for academic credit or has been approved under the AQB Course Approval program; and
  1. the person successfully completes a written examination proctored by an official approved by the presenting entity;
  2. the course meets the requirements for qualifying education established by the AQB; and
  3. is equivalent to a minimum of fifteen classroom hours.
"In-house" education and training is not acceptable for meeting the educational requirements for licensure.
To meet the USPAP educational requirements, a course must:
1. utilize the "National Uniform Standards of Professional Appraisal Practice (USPAP) Course" promulgated by the Appraisal Foundation, including the Student Manual and Instructor Manual; or
2. be an equivalent USPAP course as determined by the AQB that:
  1. is devoted to the USPAP with a minimum of 15 classroom hours of instruction;
  2. uses the current edition of the USPAP promulgated by the ASB; and
  3. provides each student with his or her own permanent copy of the current edition of the USPAP promulgated by the ASB
Unless authorized by law, neither current members of the Board nor those Board staff engaged in the approval of courses or educational qualifications of applicants or license holders shall be eligible to teach or guest lecture as part of an education course approved for licensing.
If the Board determines that a course no longer complies with the requirements for approval, it may suspend or revoke the approval. Proceedings to suspend or revoke approval of a course shall be conducted in accordance with the Board's disciplinary provisions for licenses.

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§153.15 Experience Required for Licensing

Applicants for a license must meet all experience requirements established by the AQB.
The Board awards experience credit in accordance with current criteria established by the AQB and in accordance with the provisions of the Act specifically relating to experience requirements. An hour of experience means 60 minutes expended in one or more of the acceptable appraisal experience areas. Calculation of the hours of experience is based solely on actual hours of experience. Hours may be treated as cumulative in order to achieve the necessary hours of appraisal experience. Any one or a combination of the following categories may be acceptable for satisfying the applicable experience requirement:
1. An appraisal or appraisal analysis when performed in accordance with Standards 1 and 2 and other provisions of the USPAP edition in effect at the time of the appraisal or appraisal analysis.
2. Mass appraisal, including ad valorem tax appraisal that:
  1. conforms to USPAP Standards 5 and 6; and
  2. demonstrates proficiency in appraisal principles, techniques, or skills used by appraisers practicing under USPAP Standard 1.
3. Appraisal review that:
  1. conforms to USPAP Standards 3 and 4; and
  2. demonstrates proficiency in appraisal principles, techniques, or skills used by appraisers practicing under USPAP Standard 1.
4. Appraisal consulting services, including market analysis, cash flow and/or investment analysis, highest and best use analysis, and feasibility analysis when it demonstrates proficiency in appraisal principles, techniques, or skills used by appraisers practicing under USPAP Standards 1 and 2 and using appropriate methods and techniques applicable to appraisal consulting.
5. "Practical Applications of Real Estate Appraisal" (PAREA) programs approved by the AQB.
Experience credit may not be awarded for teaching appraisal courses.
Public Information Act. All information and documentation submitted to the Board in support of an application for license or application to upgrade an existing license, including an applicant's experience log, experience certification, copies of appraisals and work files, may be subject to disclosure under the Public Information Act, Chapter 552, Texas Government Code, unless an exception to disclosure applies.
Applicants claiming experience credit under subsection (b)(1) - (4) of this section must submit a Board-approved Appraisal Experience Log that lists each appraisal assignment or other work for which the applicant is seeking credit and an Appraisal Experience Certification. The Experience Log must include:
1. the full amount of experience hours required for the license type sought, as required by the AQB;
2. the required number of hours of experience required for each property type as required by the AQB; and
3. the minimum length of time over which the experience is claimed, as required by the AQB.
The Board may grant experience credit for work listed on an applicant's Appraisal Experience Log that:
1. complies with the USPAP edition in effect at the time of the appraisal;
2. is verifiable and supported by:
  1. work files in which the applicant is identified as participating in the appraisal process; or
  2. appraisal reports that:
    1. name the applicant in the certification as providing significant real property appraisal assistance; or
    2. the applicant has signed;
3. was performed when the applicant had legal authority to do so; and
4. complies with the acceptable categories of experience established by the AQB and stated in subsection (b) of this section.
Consistent with this chapter, upon review of the applicant's real estate appraisal experience, the Board may grant a license or certification contingent upon completion of additional education, experience or mentorship.
Upon review of an applicant's Appraisal Experience Log, the Board may, at its sole discretion, grant experience credit for the hours shown on an applicant's log even if some work files have been destroyed because of the 5-year records retention period in USPAP has passed.
The Board may grant experience credit for applicants claiming experience credit under subsection (b)(5) of this section that submit a valid certificate of completion from an AQB approved PAREA program.
The Board may, at its sole discretion, accept evidence other than an applicant's Appraisal Experience Log and Appraisal Experience Certification to demonstrate experience claimed by an applicant.
The Board must verify the experience claimed by each applicant generally complies with USPAP.
1. Verification may be obtained by:
  1. requesting copies of appraisals and all supporting documentation, including the work files; and
  2. engaging in other investigative research determined to be appropriate by the Board.
2. If the Board requests documentation from an applicant to verify experience claimed by an applicant, the applicant has 60 days to provide the requested documentation to the Board.
  1. In response to an initial request for documentation to verify experience, an applicant must submit a copy of the relevant appraisals, but is not required to submit the associated work files at that time.
  2. If in the course of reviewing the submitted appraisals, the Board determines additional documentation is necessary to verify general compliance with USPAP, the Board may make additional requests for supporting documentation.
3. Experience involved in pending litigation.
  1. The Board will not request work files from an applicant to verify claimed experience if the appraisal assignments are identified on the experience log submitted to the Board as being involved in pending litigation.
  2. If all appraisal assignments listed on an applicant's experience log are identified as being involved in pending litigation, the Board may audit any of the appraisal assignments on the applicant's experience log, regardless of litigation status, with the written consent of the applicant and the applicant's supervisory appraiser.
4. Failure to comply with a request for documentation to verify experience, or submission of experience that is found not to comply with the requirements for experience credit, may result in denial of a license application.
5. A license holder who applies to upgrade an existing license and submits experience that does not comply with USPAP may also be subject to disciplinary action up to and including revocation.
Unless prohibited by Tex. Occ. Code §1103.460, applicable confidentiality statutes, privacy laws, or other legal requirements, or in matters involving alleged fraud, Board staff shall use reasonable means to inform supervisory appraisers of Board communications with their respective trainees.

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§153.16 License Reinstatement

This section applies only to a person who:
1. previously held a residential appraiser license or certification or general appraiser certification issued by the Board that has been expired for more than six months; and
2. seeks to obtain the same level of appraiser license previously held by the person before its expiration.
A person who seeks to reinstate a license expired less than five years must:
1. submit an application for reinstatement on a form approved by the Board;
2. pay the required fee;
3. satisfy the Board as to the person's honesty, trustworthiness and integrity;
4. satisfy the fingerprint and criminal history check requirements in §153.12 of this title; and
5. complete all AQB continuing education requirements that would have been required had the license not expired.
A person who seeks to reinstate a license expired five years or more must:
1. satisfy the requirements of subsection (b); and
2. submit an experience log demonstrating his or her experience complies with USPAP, as outlined in subsection (d).
An experience log submitted under subsection (c) must include at least 10 appraisals of a property type accepted by the AQB for the applicable license category, completed within 5 years from the date of application under this section.
Unless otherwise provided in this section, the board will verify and award experience submitted under subsection (d) in accordance with §153.15 of this title (relating to Experience Required for Licensing).
If a person who seeks to reinstate a license under subsection (c) is unable to submit appraisals or supporting documentation for verification, he or she may apply for a license as an appraiser trainee for the purposes of acquiring the appraisal experience required for reinstatement.

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§153.17 License Renewal

General Provisions.
1. The Board will send a renewal notice to the license holder at least 90 days prior to the expiration of the license. It is the responsibility of the license holder to apply for renewal in accordance with this chapter, and failure to receive a renewal notice from the Board does not relieve the license holder of the responsibility to timely apply for renewal.
2. A license holder renews the license by timely filing an application for renewal, paying the appropriate fees to the Board, and satisfying all applicable education, experience, fingerprint and criminal history check requirements.
3. An application for renewal received by the Board is timely and acceptable for processing if it is:
  1. complete;
  2. accompanied with payment of the required fees; and
  3. postmarked by the U.S. Postal Service, accepted by an overnight delivery service, or accepted by the Board's online processing system on or before the date of expiration.
ACE Extensions.
1. The Board may grant, at the time it issues a license renewal, an extension of time of up to 60 days after the expiration date of the previous license to complete ACE required to renew a license, subject to the following:
  1. The license holder must:
    1. timely submit the completed renewal form;
    2. complete an extension request form; and
    3. pay the required renewal and extension fees.
  2. ACE courses completed during the 60-day extension period apply only to the current renewal and may not be applied to any subsequent renewal of the license.
  3. A person whose license was renewed with a 60-day ACE extension:
    1. will be designated as non-AQB compliant on the National Registry and will not perform appraisals in a federally related transaction until verification is received by the Board that the ACE requirements have been met;
    2. may continue to perform appraisals in non-federally related transactions under the renewed license;
    3. must, within 60 days after the date of expiration of the previous license, complete the approved ACE report form and submit course completion certificates for each course that was not already submitted by the provider and reflected in the applicant's electronic license record; and
    4. will have the renewed license placed in inactive status if, within 60 days of the previous expiration date, ACE is not completed and reported in the manner indicated in paragraph (2) of this subsection. The renewed license will remain on inactive status until satisfactory evidence of meeting the ACE requirements has been received by the Board and the fee to return to active status required by §153.5 of this title (relating to Fees) has been paid.
2. Appraiser trainees may not obtain an extension of time to complete required continuing education.
Renewal of Licenses for Persons on Active Duty. A person who is on active duty in the United States armed forces may renew an expired license without being subject to any increase in fee imposed in his or her absence, or any additional education or experience requirements if the person:
1. did not provide appraisal services while on active duty;
2. provides a copy of official orders or other documentation acceptable to the Board showing the person was on active duty during the last renewal period;
3. applies for the renewal within two years after the person's active duty ends;
4. pays the renewal application fees in effect when the previous license expired; and
5. completes ACE requirements that would have been imposed for a timely renewal.
Late Renewal. If an application is filed within six months of the expiration of a previous license, the applicant shall also provide satisfactory evidence of completion of any continuing education that would have been required for a timely renewal of the previous license.
Denial of Renewal. The Board may deny an application for license renewal if the license holder is in violation of a Board order.

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§153.18 Appraiser Continuing Education (ACE)

The purpose of ACE is to ensure that license holders participate in programs that maintain and increase their skill, knowledge, and competency in real estate appraising.
To renew a license, a license holder must successfully complete the equivalent of at least 28 classroom hours of ACE courses approved by the Board, including the 7-hour National USPAP Update course during the license holder's continuing education cycle. An ACE course may not be repeated during the license holder's continuing education cycle.
Awarding ACE credit. The Board will award credit to a license holder for an ACE course approved by the Board upon receipt of a course completion roster from an approved ACE provider as required under §153.40 of this title (relating to Approval of Continuing Education Providers and Courses).
Continuing education credit for qualifying courses. License holders may receive continuing education credit for qualifying courses that have been approved by the Board, the AQB or another state appraiser regulatory agency.
Continuing education credit for courses taken outside of Texas. An ACE course taken by a Texas license holder outside of Texas may be accepted on an individual basis for continuing education credit in Texas upon the Board's determination that:
1. the ACE course was approved for continuing education credit by the AQB or another state appraiser regulatory agency at the time the course was taken;
2. the Texas license holder's successful completion of the course has been evidenced by:
  1. a course completion certificate;
  2. a letter from the provider; or
  3. such other proof as is satisfactory to the Board; and
3. the Texas license holder has filed an Out of State Course Credit Request form with the Board.
Up to one half of a license holder's ACE requirements may be satisfied through participation other than as a student, in real estate appraisal educational processes and programs. Examples of activities for which credit may be granted are teaching an ACE course, educational program development, authorship of real estate appraisal textbooks, or similar activities that are determined by the Board to be equivalent to obtaining ACE.
The following types of courses or activities may not be counted toward ACE requirements:
1. Teaching the same ACE course more than once per license renewal cycle;
2. "In house" education or training; or
3. Appraisal experience.
ACE credit for attending a Board meeting.
1. The Board may award a minimum of two hours and up to a maximum of 4 hours of ACE credit to a current license holder for attending the Board meeting held in February of an even numbered year.
2. The hours of ACE credit to be awarded will depend on the actual length of the Board meeting.
3. ACE credit will only be awarded in whole hour increments. For example, if the Board meeting is 2 and one half hours long, only 2 hours of ACE credit will be awarded.
4. To be eligible for ACE credit for attending a Board meeting, a license holder must:
  1. Attend the meeting in person;
  2. Attend the entire meeting, excluding breaks;
  3. Provide photo identification; and
  4. Sign in and out on the class attendance roster for the meeting.
5. No ACE credit will be awarded to a license holder for partial attendance.
ACE credit for attending presentations by current Board members or staff. As authorized by law, current members of the Board and Board staff may teach or guest lecture as part of an approved ACE course. To obtain ACE credit for attending a presentation by a current Board member or Board staff, the course provider must submit the applicable form and satisfy the requirements for ACE course approval in this section.

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§153.19 Licensing for Persons with Criminal History and Fitness Determination

No currently incarcerated individual is eligible to obtain or renew a license. A person's license will be revoked upon the person's incarceration following a felony conviction, felony probation revocation, revocation of parole, or revocation of mandatory suspension.
The Board may suspend or revoke an existing valid license, disqualify an individual from receiving a license, deny to a person the opportunity to be examined for a license or deny any application for a license, if the person has been convicted of a felony, had their felony probation revoked, had their parole revoked, or had their mandatory supervision revoked. Any such action may be taken after consideration of the required factors in Chapter 53, Occupations Code and this section.
A license holder must conduct himself or herself with honesty, integrity, and trustworthiness. After considering the required factors in Chapter 53, Occupations Code, the Board determines that a conviction or deferred adjudication deemed a conviction under Chapter 53, Occupations Code, of the following crimes to be directly related to the duties and responsibilities of a certified general or certified residential appraiser, a licensed appraiser or appraiser trainee:
1. offenses involving fraud or misrepresentation;
2. offenses against real or personal property belonging to another;
3. offenses against public administration, including tampering with a government record, witness tampering, perjury, bribery, and corruption;
4. offenses involving the sale or other disposition of real or personal property belonging to another without authorization of law; and
5. offenses of attempting or conspiring to commit any of the foregoing offenses.
When determining whether a conviction of a criminal offense not listed in subsection (c) of this section directly relates to the duties and responsibilities of a licensed occupation regulated by the Board, the Board considers:
1. the nature and seriousness of the crime;
2. the relationship of the crime to the purposes for requiring a license to engage in the occupation;
3. the extent to which a license might offer an opportunity to engage in further criminal activity of the same type as that in which the person previously had been involved;
4. the relationship of the crime to the ability or capacity required to perform the duties and discharge the responsibilities of the licensed occupation; and
5. any correlation between the elements of the crime and the duties and responsibilities of the licensed occupation.
When determining the present fitness of an applicant or license holder who has been convicted of a crime, the Board also considers:
1. the extent and nature of the person's past criminal activity;
2. the person's age at the time the crime was committed;
3. the amount of time that has elapsed since the person's last criminal activity;
4. the person's conduct and work activity before and after the criminal activity;
5. evidence of the person's compliance with any conditions of community supervision, parole, or mandatory supervision;
6. evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and
7. other evidence of the applicant's or license holder's present fitness including letters of recommendation.
To the extent possible, it is the applicant's or license holder's responsibility to obtain and provide the recommendations described in subsection (e)(7) of this section.
When determining a person's fitness to perform the duties and discharge the responsibilities of a licensed occupation regulated by the Board, the Board does not consider an arrest that did not result in a conviction or placement on deferred adjudication community supervision.
Fitness Determination. Before applying for a license, a person may request the Board to determine if the prospective applicant's fitness satisfies the Board's requirements for licensing by submitting the request form approved by the Board and paying the required fee. Upon receiving such a request, the Board may request additional supporting materials. Requests will be processed under the same standards as applications for a license.

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§153.20 Guidelines for Disciplinary Action, Denial of License; Probationary License

The Board may take disciplinary action or deny issuing a license to an applicant at any time the Board determines that the applicant or license holder:
1. disregards or violates a provision of the Act or the Board rules;
2. is convicted of a felony;
3. fails to notify the Board not later than the 30th day after the date of the final conviction if the person, in a court of this or another state or in a federal court, has been convicted of or entered a plea of guilty or nolo contendere to a felony or a criminal offense involving fraud or moral turpitude;
4. fails to notify the Board not later than the 30th day after the date of incarceration if the person, in this or another state, has been incarcerated for a criminal offense involving fraud or moral turpitude;
5. fails to notify the Board not later than the 30th day after the date disciplinary action becomes final against the person with regard to any occupational license the person holds in Texas or any other jurisdiction;
6. fails to comply with the USPAP edition in effect at the time of the appraiser service;
7. acts or holds himself or herself or any other person out as a person licensed under the Act or by another jurisdiction when not so licensed;
8. accepts payment for appraiser services but fails to deliver the agreed service in the agreed upon manner;
9. refuses to refund payment received for appraiser services when he or she has failed to deliver the appraiser service in the agreed upon manner;
10. accepts payment for services contingent upon a minimum, maximum, or pre-agreed value estimate except when such action would not interfere with the appraiser's obligation to provide an independent and impartial opinion of value and full disclosure of the contingency is made in writing to the client;
11. offers to perform appraiser services or agrees to perform such services when employment to perform such services is contingent upon a minimum, maximum, or pre-agreed value estimate except when such action would not interfere with the appraiser's obligation to provide an independent and impartial opinion of value and full disclosure of the contingency is made in writing to the client;
12. makes a material misrepresentation or omission of material fact;
13. has had a license as an appraiser revoked, suspended, or otherwise acted against by any other jurisdiction for an act which is a crime under Texas law;
14. procures, or attempts to procure, a license by making false, misleading, or fraudulent representation;
15. fails to actively, personally, and diligently supervise an appraiser trainee or any person not licensed under the Act who assists the license holder in performing real estate appraiser services;
16. has had a final civil judgment entered against him or her on any one of the following grounds:
  1. fraud;
  2. intentional or knowing misrepresentation;
  3. grossly negligent misrepresentation in the performance of appraiser services;
17. fails to make good on a payment issued to the Board within thirty days after the Board has mailed a request for payment by certified mail to the license holder's last known business address as reflected by the Board's records;
18. knowingly or willfully engages in false or misleading conduct or advertising with respect to client solicitation;
19. misuses or misrepresents the type of classification or category of license number;
20. engages in any other act relating to the business of appraising that the Board, in its discretion, believes warrants a suspension or revocation;
21. uses any title, designation, initial or other insignia or identification that would mislead the public as to that person's credentials, qualifications, competency, or ability to perform licensed appraisal services;
22. fails to comply with an agreed order or a final order of the Board;
23. fails to answer all inquiries concerning matters under the jurisdiction of the Board within 20 days of notice to said individual's address of record, or within the time period allowed if granted a written extension by the Board; or
24. after conducting reasonable due diligence, knowingly accepts an assignment from an appraisal management company that is not exempt from registration under the Act which:
  1. has not registered with the Board; or
  2. is registered with the Board but has not placed the appraiser on its panel of appraisers maintained with the Board; or
25. fails to approve, sign, and deliver to their appraiser trainee the appraisal experience log and certification required by §153.15 of this title for all experience actually and lawfully acquired by the trainee while under the appraiser's sponsorship.
The Board has discretion in determining the appropriate penalty for any violation under subsection (a) of this section.
The Board may probate a penalty or sanction, and may impose conditions of the probation, including, but not limited to:
1. the type and scope of appraisals or appraisal practice;
2. the number of appraiser trainees or authority to sponsor appraiser trainees;
3. requirements for additional education;
4. monetary administrative penalties; and
5. requirements for reporting real property appraisal activity to the Board.
A person applying for a license after the Board has revoked or accepted the surrender in lieu of disciplinary action of a license previously held by that person must comply with all current license requirements. Such persons may not apply to reinstate a previously held license as provided in §153.16 of this title.
The provisions of this section do not relieve a person from civil liability or from criminal prosecution under the Act or other laws of this State.
The Board may not investigate a complaint submitted to the Board more than four years after the date on which the alleged violation occurred.
Except as provided by Texas Government Code §402.031(b) and Texas Penal Code §32.32(d), there shall be no undercover or covert investigations conducted by authority of the Act.
A license may be revoked or suspended by the Attorney General or other court of competent jurisdiction for failure to pay child support under the provisions of Chapter 232 of the Texas Family Code.
If the Board determines that issuance of a probationary license is appropriate, the order entered by the Board with regard to the application must set forth the terms and conditions for the probationary license. Terms and conditions for a probationary license may include any of the following:
1. that the probationary license holder comply with the Act and with the rules of the Texas Appraiser Licensing and Certification Board;
2. that the probationary license holder fully cooperate with the TALCB Division of the Board in the investigation of any complaint filed against the license holder or any other complaint in which the license holder may have relevant information;
3. that the probationary license holder attend a prescribed number of classroom hours in specific areas of study during the probationary period;
4. that the probationary license holder limit appraisal practice as prescribed in the order;
5. that the probationary license holder work under the direct supervision of a certified general or certified residential appraiser who will review and sign each appraisal report completed;
6. that the probationary license holder report regularly to the Board on any matter which is the basis of the probationary license; or
7. that the probationary license holder comply with any other terms and conditions contained in the order which have been found to be reasonable and appropriate by the Board after due consideration of the circumstances involved in the particular application.
Unless the order granting a probationary license specifies otherwise, a probationary license holder may renew the license after the probationary period by filing a renewal application, satisfying applicable renewal requirements, and paying the prescribed renewal fee.
If a probationary license expires prior to the completion of a probationary term and the probationary license holder files a late renewal application, any remaining probationary period shall be reinstated effective as of the day following the renewal of the probationary license.

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§153.21 Appraiser Trainees and Supervisory Appraisers

Supervision of appraiser trainees required.
1. An appraiser trainee may perform appraisals or appraiser services only under the active, personal and diligent direction and supervision of a supervisory appraiser.
2. An appraiser trainee may be supervised by more than one supervisory appraiser.
3. Number of Appraiser Trainees Supervised.
  1. Supervisory appraisers may supervise no more than three appraiser trainees at one time unless the requirements in subsection (a)(3)(B) of this section, are met;
  2. Supervisory appraisers may supervise up to five appraiser trainees at one time if:
    1. the supervisory appraiser has been licensed as a certified appraiser for more than five years;
    2. the supervisory appraiser submits an application and a trainee supervision plan subject to approval by the Board. The supervision plan must include the supervisory appraiser's plan for progress monitoring of the trainees and detail how the supervisor intends to ensure active, personal, and diligent supervision of each trainee; and
    3. the supervisory appraiser shall prepare and maintain regular trainee progress reports and make them available to the Board upon request until the trainee becomes certified or licensed or after two years have lapsed since supervising the trainee.
4. A supervisory appraiser may be added during the term of an appraiser trainee's license if:
  1. The supervisory appraiser and appraiser trainee have provided proof to the Board of completion of an approved Appraiser Trainee/Supervisory Appraiser course;
  2. an application to supervise has been received and approved by the Board; and
  3. the applicable fee has been paid.
5. A licensed appraiser trainee who signs an appraisal report must include his or her license number and the word "Trainee" as part of the appraiser trainee's signature in the report.
Eligibility requirements for appraiser trainee supervision.
1. To be eligible to supervise an appraiser trainee, a certified appraiser must:
  1. be in good standing and not have had, within the last three years, disciplinary action affecting the certified appraiser's legal eligibility to engage in appraisal practice in any state including suspension, revocation, and surrender in lieu of discipline;
  2. complete an approved Appraiser Trainee/Supervisory Appraiser course; and
  3. submit proof of course completion to the Board.
2. Before supervising an appraiser trainee, the supervisory appraiser must notify the appraiser trainee in writing of any disciplinary action taken against the supervisory appraiser within the last three years that did not affect the supervisory appraiser's eligibility to engage in appraisal practice.
3. An application to supervise must be received and approved by the Board before supervision begins.
Maintaining eligibility to supervise appraiser trainees.
1. A supervisory appraiser who wishes to continue to supervise appraiser trainees upon renewal of his/her license must complete an approved Appraiser Trainee/Supervisory Appraiser course within four years before the expiration date of the supervisory appraiser's current license and provide proof of completion to the Board.
2. If a supervisory appraiser has not provided proof of course completion at the time of renewal, but has met all other requirements for renewing the license the supervisory appraiser will no longer be eligible to supervise appraiser trainees; and the Board will take the following actions:
  1. the supervisory appraiser's license will be renewed on active status; and
  2. the license of any appraiser trainees supervised solely by that supervisory appraiser will be placed on inactive status.
3. A certified appraiser may restore eligibility to supervise appraiser trainees by:
  1. completing the course required by this section; and
  2. submitting proof of course completion to the Board.
4. The supervisory appraiser's supervision of previously supervised appraiser trainees may be reinstated by:
  1. submitting the required form to the Board; and
  2. payment of any applicable fees.
Maintaining eligibility to act as an appraiser trainee.
1. Appraiser trainees must maintain an appraisal log and appraisal experience certifications on forms approved by the Board, for the license period being renewed. It is the responsibility of both the appraiser trainee and the supervisory appraiser to ensure the appraisal log is accurate, complete and signed by both parties at least quarterly or upon change in supervisory appraiser. The appraiser trainee will promptly provide copies of the experience logs and certifications to the Board upon request.
2. An appraiser trainee must complete an approved Appraiser Trainee/Supervisory Appraiser course within four years before the expiration date of the appraiser trainee's current license and provide proof of completion to the Board.
3. If an appraiser trainee has not provided proof of course completion at the time of renewal, but has met all other requirements for renewing the license:
  1. the Board will renew the appraiser trainee's license on inactive status;
  2. the appraiser trainee will no longer be eligible to perform appraisals or appraisal services; and
  3. the appraiser trainee's relationship with any supervisory appraiser will be terminated.
4. An appraiser trainee may return the appraiser trainee's license to active status by:
  1. completing the course required by this section;
  2. submitting proof of course completion to the Board;
  3. submitting an application to return to active status, including an application to add a supervisory appraiser; and
  4. paying any required fees.
Duties of the supervisory appraiser.
1. Supervisory appraisers are responsible to the public and to the Board for the conduct of the appraiser trainee under the Act.
2. The supervisory appraiser assumes all the duties, responsibilities, and obligations of a supervisory appraiser as specified in these rules and must diligently supervise the appraiser trainee. Diligent supervision includes, but is not limited to, the following:
  1. direct supervision and training as necessary;
  2. ongoing training and supervision as necessary after the supervisory appraiser determines that the appraiser trainee no longer requires direct supervision;
  3. communication with and accessibility to the appraiser trainee; and
  4. review and quality control of the appraiser trainee's work.
3. Supervisory appraisers must approve and sign the appraiser trainee's appraisal log at least quarterly and provide appraiser trainees with access to any appraisals and work files completed under the supervisory appraiser.
4. After notice and hearing, the Board may reprimand a supervisory appraiser or may suspend or revoke a supervisory appraiser's license based on conduct by the appraiser trainee constituting a violation of the Act or Board rules.
Termination of supervision.
1. Supervision may be terminated by the supervisory appraiser or the appraiser trainee.
2. If supervision is terminated, the terminating party must:
  1. immediately notify the Board on a form approved by the Board; and
  2. notify the non-terminating party in writing no later than the 10th day after the date of termination; and
  3. pay any applicable fees no later than the 10th day after the date of termination.
3. If an appraiser trainee is no longer under the supervision of a supervisory appraiser:
  1. the appraiser trainee may no longer perform the duties of an appraiser trainee; and
  2. is not eligible to perform those duties until:
    1. an application to supervise the trainee has been filed;
    2. any required fees have been paid; and
    3. the Board has approved the application.
Course approval.
1. To obtain Board approval of an Appraiser Trainee/Supervisory Appraiser course, a course provider must:
  1. submit form ATS-0, Appraiser Trainee/Supervisory Appraiser Course Approval, adopted herein by reference; and
  2. satisfy the Board that all required content set out in form ATS-0 is adequately covered.
2. Approval of an Appraiser Trainee/Supervisory Appraiser course shall expire two years from the date of Board approval.
3. An Appraiser Trainee/Supervisory Appraiser course may be delivered through:
  1. classroom delivery; or
  2. synchronous, asynchronous or hybrid distance education delivery. The course design and delivery mechanism for asynchronous distance education courses, including the asynchronous portion of hybrid courses must be approved by an AQB approved organization.
ACE credit.
1. Supervisory appraisers who complete the Appraiser Trainee/Supervisory Appraiser course may receive ACE credit for the course.
2. Appraiser Trainees may not receive qualifying or ACE credit for completing the Appraiser Trainee/Supervisory Appraiser course.

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§153.22 Volunteer Appraiser Experience Reviews

Before applying for a license, a person may submit up to two requests for the Board to review the appraiser trainee's work product.
A person may submit an application to the Board for review of his or her work product after:
1. accumulating between thirty to fifty percent of the hours of appraisal experience required by the AQB for category of appraiser license the person will be applying for;
2. accumulating between sixty to eighty percent of the hours of appraisal experience required by the AQB for category of appraiser license the person will be applying for; or
3. both.
Work product submitted for review must fall within one of the approved categories of experience credit described in §153.15 of this title and meet the definition of real estate appraisal experience in §153.1 of this title.
The application for review of work product is not complete until the completed report and workfile, all required documentation and the required fee are received by the Board.
If a person provides inadequate documentation, the Board will notify the person in writing, and identify any deficiencies Unless the work product review applicant cures the deficiencies within twenty days of notification, the Board will terminate the application for work product review.
The Board will provide a written report identifying deficiencies in the work product after the review is complete.
A review conducted under this provision:
1. is for educational purposes only;
2. does not constitute Board approval of the experience;
3. does not preclude the Board from denying a license application submitted by the work product review applicant in the future; and
4. will not result in a complaint against the work product review applicant unless the review reveals:
  1. knowing or intentional misrepresentation, fraud or criminal conduct; or
  2. serious deficiencies that constitute grossly negligent acts or omissions.

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§153.23 Inactive Status

A license holder may request to be placed on inactive status by filing a request for inactive status on a form approved by the Board.
A license holder whose license has expired may renew on inactive status within six months after the license expiration date by:
1. filing an application for renewal on a form approved by the Board;
2. indicating on the application that the license holder wishes to renew on inactive status;
3. paying the required late renewal fees; and
4. satisfying the fingerprint and criminal history check requirements in §153.12 of this title.
A license holder on inactive status:
1. shall not appraise real property, engage in appraisal practice, or perform any activity for which a license is required; and
2. must file the proper renewal application and pay all required fees, except for the national registry fee, in order to renew the license.
To return to active status, a license holder who has been placed on inactive status must:
1. request to return to active status on a form approved by the Board;
2. pay the required fee;
3. satisfy all ACE requirements that were not completed while on inactive status, except that the license holder is not required to complete the most current USPAP update course more than once in order to return to active status and shall substitute other approved courses to meet the required number of ACE hours; and
4. satisfy the fingerprint and criminal history check requirements in §153.12 of this title.
A license holder who has been on inactive status may not resume practice until the Board issues an active license.

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§153.24 Complaint Processing

Receipt of a Complaint Intake Form by the Board does not constitute the filing of a formal complaint by the Board against the individual named on the Complaint Intake Form. Upon receipt of a signed Complaint Intake Form, staff shall:
1. assign the complaint a case number in the complaint tracking system; and
2. send written acknowledgement of receipt to the Complainant.
Priority of complaint investigations. The Board prioritizes and investigates complaints based on the risk of harm each complaint poses to the public. Complaints that pose a high risk of public harm include violations of the Act, Board rules, or USPAP that:
1. evidence serious deficiencies, including:
  1. Fraud;
  2. Identity theft;
  3. Unlicensed activity;
  4. Ethical violations;
  5. Failure to properly supervise an appraiser trainee; or
  6. Other conduct determined by the Board that poses a significant risk of public harm; and
2. were done:
  1. with knowledge;
  2. deliberately;
  3. willfully; or
  4. with gross negligence.
The Board or the Executive Director may delegate to staff the duty to dismiss complaints. The complaint shall be dismissed with no further processing if the staff determines at any time that:
1. the complaint is not within the Board's jurisdiction;
2. no violation exists; or
3. an allegation or formal complaint is inappropriate or without merit.
A determination that an allegation or complaint is inappropriate or without merit includes a determination that the allegation or complaint:
1. was made in bad faith;
2. filed for the purpose of harassment;
3. to gain a competitive or economic advantage; or
4. lacks sufficient basis in fact or evidence.
Staff shall conduct a preliminary inquiry to determine if dismissal is required under subsection (d) of this section.
A complaint alleging mortgage fraud or in which mortgage fraud is suspected:
1. may be investigated covertly; and
2. shall be referred to the appropriate prosecutorial authorities.
Staff may request additional information from any person, if necessary, to determine how to proceed with the complaint.
As part of a preliminary investigative review, a copy of the Complaint Intake Form and all supporting documentation shall be sent to the Respondent unless the complaint qualifies for covert investigation and the TALCB Division deems covert investigation appropriate.
The Board will:
1. protect the complainant's identity to the extent possible by excluding the complainant's identifying information from a complaint notice sent to a respondent.
2. periodically send written notice to the complainant and each respondent of the status of the complaint until final disposition. For purposes of this subsection, "periodically" means at least once every 90 days.
The Respondent shall submit a response within 20 days of receiving a copy of the Complaint Intake Form. The 20-day period may be extended for good cause upon request in writing or by e-mail. The response shall include the following:
1. a copy of the appraisal report that is the subject of the complaint;
2. a copy of the Respondent's work file associated with the appraisal(s) listed in the complaint, with the following signed statement attached to the work file(s): I SWEAR AND AFFIRM THAT EXCEPT AS SPECIFICALLY SET FORTH HEREIN, THE COPY OF EACH AND EVERY APPRAISAL WORK FILE ACCOMPANYING THIS RESPONSE IS A TRUE AND CORRECT COPY OF THE ACTUAL WORK FILE, AND NOTHING HAS BEEN ADDED TO OR REMOVED FROM THIS WORK FILE OR ALTERED AFTER PLACEMENT IN THE WORK FILE.(SIGNATURE OF RESPONDENT);
3. a narrative response to the complaint, addressing each and every item in the complaint;
4. a list of any and all persons known to the Respondent to have actual knowledge of any of the matters made the subject of the complaint and, if in the Respondent's possession, contact information;
5. any documentation that supports Respondent's position that was not in the work file, as long as it is conspicuously labeled as non-work file documentation and kept separate from the work file. The Respondent may also address other matters not raised in the complaint that the Respondent believes need explanation; and
6. a signed, dated and completed copy of any questionnaire sent by Board staff.
Staff will evaluate the complaint within three months after receipt of the response from Respondent to determine whether sufficient evidence of a potential violation of the Act, Board rules, or the USPAP exists to pursue investigation and possible formal disciplinary action. If the staff determines that there is no jurisdiction, no violation exists, there is insufficient evidence to prove a violation, or the complaint warrants dismissal, including contingent dismissal, under subsection (m) of this section, the complaint shall be dismissed with no further processing.
A formal complaint will be opened and investigated by a staff investigator or peer investigative committee, as appropriate, if:
1. the informal complaint is not dismissed under subsection (i) of this section; or
2. staff opens a formal complaint on its own motion.
Written notice that a formal complaint has been opened will be sent to the Complainant and Respondent.
The staff investigator assigned to investigate a formal complaint shall prepare a report detailing its findings on a form approved by the Board.
The Board may order a person regulated by the Board to refund the amount paid by a consumer to the person for a service regulated by the Board.
Agreed resolutions of complaint matters pursuant to Texas Occupations Code §1103.458 or §1103.459 must be signed by:
1. the Board Chair or if the Board Chair is unavailable or must recuse him or herself, the Board Chair's designee, whom shall be (in priority order) the Board Vice Chair, the Board Secretary, or another Board member;
2. Respondent;
3. a representative of the TALCB Division; and
4. the Executive Director or his or her designee.

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§153.25 Temporary Out-of-State Appraiser License

A person licensed as an appraiser by another state, commonwealth, or territory may register with the Board so as to qualify to appraise real property in this state without holding a license issued under the Act if:
1. the state, commonwealth or territory licensing program under which the person holds a license has not been disapproved by the ASC; and
2. the appraiser's business in this state is of a temporary nature not to exceed six months.
A person wishing to be registered under this section must:
1. submit an application for registration on a form approved by the Board;
2. pay the required fees; and
3. provide all supporting documentation or information requested by the Board in connection with the application for registration.
A person registered under this section must submit an irrevocable consent to service of process in this state on a form approved by the Board.
A person registered under this section may apply for a 90 day extension to the original expiration date of the temporary registration, provided the person:
1. is continuing the same appraisal assignment listed on the original application for temporary out-of-state appraiser registration; and
2. requests an extension on a form approved by the Board, received by the Board or postmarked prior to the expiration of the current temporary registration.
A person who registers under this section is not required to comply with the fingerprint requirements in §153.12 of this title.

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§153.26 Identity Theft

For purposes of this section, "identity theft" shall mean any of the following activities occurring in connection with the rendition of real estate appraisal services:
1. Unlawfully obtaining, possessing, transferring or using a license issued by the Board; and/or
2. Unlawfully obtaining, possessing, transferring or using a person's electronic or handwritten signature.
A license holder shall implement and maintain reasonable procedures to protect and safeguard themselves from identity theft.
A license holder shall notify the Board if he or she is the victim of identity theft within 90 days of discovering such theft. Notice shall be effectuated by filing a signed, written complaint on a form prescribed by the Board.
The Board may invalidate a current license and issue a new one to a person the Board determines is a victim of identity theft. Any person seeking the invalidation of a current license issuance of a new one shall submit a written, signed request on a form provided by the Board for the invalidation of a current license and issuance of a new one. The basis for the request must be identity theft, and the requestor must submit credible evidence that the person is a victim of identity theft. Without limiting the type of evidence a person may submit to the Board, a court order issued in accordance with Texas Business and Commerce Code Chapter 521, Subchapter C, declaring that the person is a victim of identity theft shall constitute credible evidence. Any such court order must relate to identity theft as defined in this section.
Engaging in identity theft in order to perform appraisals constitutes a violation of §153.20(a)(7), (19), and (21) of this title. In addition to any action taken by the Board, persons engaging in identity theft may also be referred to the appropriate law enforcement agency for criminal prosecution.

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§153.27 License by Reciprocity

A person who is licensed as an appraiser under the laws of a state whose appraiser program has not been disapproved by the ASC may apply for a Texas license at that same level by completing and submitting to the Board the application for license by reciprocity and paying the required fee to the Board.
The Board shall verify that the applicant's license is valid and in good standing by checking the National Appraiser Registry. A reciprocal license may not be issued without the verification required by this subsection.
Renewal of a license granted through reciprocity shall be in the same manner, and with the same requirements, term, and fees, as for the same classification of license as provided in §153.17 of this title.

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§153.28 Peer Investigative Committee Review

The Board Chair, with the advice and consent of the Executive Committee, may appoint a Peer Investigative Committee pool at least every two years.
A panel of the Peer Investigative Committee shall consist of:
1. an Appraiser Board Member;
2. a Board Member who is a licensed or certified appraiser; and
3. a TALCB Investigator.
The Board members serving on the Peer Investigative Committee shall serve on the committee on a rotating basis.
During complaint intake, the TALCB Director or his or her designee shall assign a TALCB Investigator to investigate the complaint.
Complaints in which adverse action or contingent dismissals is recommended by an investigator are subject to review by the Peer Investigative Committee. Complaints that result in dismissals, defaults, or warning letters are not subject to review by the Peer Investigative Committee.
No more than 7 days following the investigator's completion of an investigative report, the investigator shall provide his or her findings, including the investigative report and the complaint file, to the Board members of the Peer Investigative Committee. The investigative report must include:
1. a statement of facts;
2. the investigator's recommendations; and
3. the position or defense of the respondent.
Board members of the Peer Investigative Committee, Investigators, and staff may elect to confer in person, via e-mail, or video conference prior to the Board members' determination.
The Board delegates its authority to receive the written findings or determination of the Peer Investigative Committee to the Executive Director.
No more than five business days after the review of the investigator's findings, the Board members of Committee shall render a determination agreeing or disagreeing with the investigator's finding of alleged violations and submit a copy of their determination to the Executive Director or his or her designee on behalf of the Board. The determination shall serve as a recommendation to the TALCB Division as to whether to pursue adverse action against a respondent. A copy of the Board members' determination shall be included in the complaint file. The Board Chair may request statistical data related to the investigator's recommendations, Board members' determination, and adverse action pursued by the Division.
Board members who participate in the Peer Investigative Committee Review of a complaint are disqualified from participating in any future adjudication of the same complaint.

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§153.33 Signature or Endorsement of Appraisal

A license holder who signs an appraisal report is responsible for the content of the entire appraisal report.

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§153.37 Criminal Matters Referred to Law Enforcement

Matters that are referred to the appropriate state or federal law enforcement agency for criminal investigation and prosecution shall also be fully and appropriately investigated by the Board's investigators, and the Board shall take appropriate disciplinary action.

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§153.40 Approval of Continuing Education Providers and Courses

Definitions. The following words and terms shall have the following meanings in this section, unless the context clearly indicates otherwise.
1. Applicant–A person seeking accreditation or approval to be an appraiser continuing education (ACE) provider.
2. ACE course–Any education course for which continuing education credit may be granted by the Board to a license holder.
3. ACE provider–Any person approved by the Board; or specifically exempt by the Act, Chapter 1103, Texas Occupation Code, or Board rule; that offers a course for which continuing education credit may be granted by the Board to a license holder.
4. Distance education course–A course offered in accordance with AQB criteria in which the instructor and students are geographically separated as defined by the AQB. Distance education includes synchronous delivery, when the instructor and student interact simultaneously online; asynchronous delivery, when the instructor and student interaction is non-simultaneous; and hybrid or blended course delivery that allows for both in-person and online interaction, either synchronous or asynchronous.
5. Severe weather–weather conditions, including but not limited to severe thunderstorms, tornados, hurricanes, snow and ice, that pose risks to life or property and require intervention by government authorities and office or school closures.
Approval of ACE Providers.
1. A person seeking to offer ACE courses must:
  1. file an application on the appropriate form approved by the Board, with all required documentation;
  2. pay the required fees under §153.5 of this title; and
  3. maintain a fixed office in the state of Texas or designate a resident of this state as attorney-in-fact to accept service of process and act as custodian of any records in Texas which the continuing education provider is required to maintain by this subchapter.
2. The Board may:
  1. request additional information be provided to the Board relating to an application; and
  2. terminate an application without further notice if the applicant fails to provide the additional information within 60 days from the Board's request.
3. Exempt Providers. A unit of federal, state or local government may submit ACE course approvals without becoming an approved ACE provider.
4. Standards for approval. To be approved by the Board to offer ACE courses, an applicant must satisfy the Board as to the applicant's ability to administer courses with competency, honesty trustworthiness and integrity. If an applicant proposes to employ another person to manage the operation of the applicant, that person must meet this standard as if that person were the applicant.
5. Approval notice. An applicant shall not act as or represent itself to be an approved ACE provider until the applicant has received written notice of the approval from the Board.
6. Period of initial approval. The initial approval of a CE provider is valid for two years.
7. Disapproval.
  1. If the Board determines that an applicant does not meet the standards for approval, the Board will provide written notice of disapproval to the applicant.
  2. The disapproval notice, applicant's request for a hearing on the disapproval, and any hearing are governed by the Administrative Procedure Act, Chapter 2001, Government Code, and Chapter 157 of this title. Venue for any hearing conducted under this section shall be in Travis County.
8. Renewal.
  1. Not earlier than 90 days before the expiration of its current approval, an approved provider may apply for renewal for another two year period.
  2. Approval or disapproval of a renewal application shall be subject to the standards for initial applications for approval set out in this section.
  3. The Board may deny an application for renewal if the provider is in violation of a Board order.
Application for approval of ACE courses. This subsection applies to appraiser education providers seeking to offer ACE courses.
1. For each ACE course an applicant intends to offer, the applicant must:
  1. file an application on the appropriate form approved by the Board, with all required documentation; and
  2. pay the fees required by §153.5 of this title .
2. An ACE provider may file a single application for an ACE course offered through multiple delivery methods.
3. An ACE provider who seeks approval of a new delivery method for a currently approved ACE course must submit a new application and pay all required fees.
4. The Board may:
  1. request additional information be provided to the Board relating to an application; and
  2. terminate an application without further notice if the applicant fails to provide the additional information within 60 days from the Board's request.
5. Standards for ACE course approval.
  1. To be approved as an ACE course by the Board, the course must:
    1. cover subject matter appropriate for appraiser continuing education as defined by the AQB;
    2. submit a statement describing the objective of the course and the acceptable AQB topics covered;
    3. be current and accurate; and
    4. be at least two hours long.
  2. The course must be presented in full hourly units.
  3. The course must be delivered by one of the following delivery methods:
    1. classroom delivery; or
    2. distance education.
  4. The course design and delivery mechanism for asynchronous distance education courses, including the asynchronous portion of hybrid courses must be approved by an AQB approved organization.
6. Approval notice.
  1. An ACE provider cannot offer an ACE course until the provider has received written notice of the approval from the Board.
  2. An ACE course expires two years from the date of approval. ACE providers must reapply and meet all current requirements of this section to offer the course for another two years.
Approval of currently approved ACE course for a secondary provider.
1. If an ACE provider wants to offer an ACE course currently approved for another provider, the secondary provider must:
  1. file an application on the appropriate form approved by the Board, with all required documentation;
  2. submit written authorization to the Board from the author or provider for whom the course was initially approved granting permission for the secondary provider to offer the course; and
  3. pay the fees required by §153.5 of this title .
2. If approved to offer the currently approved course, the secondary provider must:
  1. offer the course as originally approved;
  2. assume the original expiration date;
  3. include any approved revisions;
  4. use all materials required for the course; and
  5. meet the requirements of subsection (j) of this section.
Approval of ACE courses currently approved by the AQB or another state appraiser regulatory agency.
1. To obtain Board approval of an ACE course currently approved by the AQB or another state appraiser regulatory agency, an ACE provider must:
  1. be currently approved by the Board as an ACE provider;
  2. file an application on the appropriate form approved by the Board, with all required documentation; and
  3. pay the course approval fee required by §153.5 of this title.
2. If approved to offer the ACE course, the ACE provider must offer the course as approved by the AQB or other state appraiser regulatory agency, using all materials required for the course.
3. Any course approval issued under this subsection expires the earlier of two years from the date of Board approval or the remaining term of approval granted by the AQB or other state appraiser regulatory agency.
Approval of ACE courses for a 2-hour in-person one-time offering.
1. To obtain Board approval of a 2-hour ACE course for an in-person one-time offering, an ACE provider must:
  1. be currently approved by the Board as an ACE provider;
  2. file an application on the appropriate form approved by the Board, with all required documentation; and
  3. pay the one-time offering course approval fee required by §153.5 of this title.
2. Any course approved under this subsection is limited to the scheduled presentation date stated on the written notice of course approval issued by the Board.
3. If a course approved under this subsection must be rescheduled due to circumstances beyond the provider's control, including severe weather or instructor illness, the Board may approve the revised course date if the provider:
  1. submits a request for revised course date on a form acceptable to the Board; and
  2. offers the course on the revised date in the same manner as it was originally approved.
Application for approval to offer a 7-Hour National USPAP Update course.
1. To obtain approval to offer a 7-Hour National USPAP Update course, the provider must:
  1. be approved by the Board as an ACE provider;
  2. file an application on the appropriate form approved by the Board, with all required documentation;
  3. submit written documentation to the Board demonstrating that the course and instructor are currently approved by the AQB;
  4. pay the course approval fee required by §153.5 of this title;
  5. use the current version of the USPAP; and
  6. ensure each student has access to his or her own electronic or paper copy of the current version of USPAP.
2. Approved ACE providers of the 7-Hour National USPAP Update course may include up to one additional classroom credit hour of supplemental Texas specific information. This may include topics such as the Act, Board rules, processes and procedures, enforcement issues or other topics deemed appropriate by the Board.
Application for ACE course approval for a presentation by current Board members or staff. As authorized by law, current members of the Board and Board staff may teach or guest lecture as part of an approved ACE course. To obtain ACE course approval for a presentation by a Board member or staff, the provider must:
1. file an application on the appropriate form approved by the Board, with all required documentation; and
2. pay the fees required by §153.5 of this title.
Responsibilities and Operations of ACE providers.
1. ACE course examinations or course mechanism to demonstrate knowledge of the subject matter:
  1. are required for ACE distance education courses; and
  2. must comply with AQB requirements.
2. Course evaluations. A provider shall provide each student enrolled in an ACE course a course evaluation form approved by the Board and a link to an online version of the evaluation form that a student may complete and submit to the provider after course completion.
3. Course completion rosters.
  1. Classroom courses. Upon successful completion of an ACE classroom course, a provider shall submit to the Board a course completion roster in a format approved by the Board no later than the 10th day after the date a course is completed. The roster shall include:
    1. the provider's name and license number;
    2. the instructor's name;
    3. the course title;
    4. the course approval number;
    5. the number of credit hours;
    6. the date of issuance; and
    7. the date the student started and completed the course.
  2. Distance education courses. A provider shall maintain a Distance Education Reporting Form and submit information contained in that form by electronic means acceptable to the Board for each student completing the course not earlier than the number of hours for course credit after a student starts the course and not later than the 10th day after the student completes the course.
4. An ACE provider may withhold any official course completion documentation required by this subsection from a student until the student has fulfilled all financial obligations to the provider.
5. Security and Maintenance of Records.
  1. An ACE provider shall maintain:
    1. adequate security against forgery for official completion documentation required by this subsection;
    2. records of each student enrolled in a course for a minimum of four years following completion of the course, including course and instructor evaluations and student enrollment agreements; and
    3. any comments made by the provider's management relevant to instructor or course evaluations with the provider's records.
  2. All records may be maintained electronically but must be in a common format that is legible and easily printed or viewed without additional manipulation or special software.
  3. Upon request, an ACE provider shall produce instructor and course evaluation forms for inspection by Board staff.
6. Changes in Ownership or Operation of an approved ACE provider.
  1. An approved ACE provider shall obtain approval of the Board at least 30 days in advance of any material change in the operation of the provider, including but not limited to changes in:
    1. ownership;
    2. management; and
    3. the location of main office and any other locations where courses are offered.
  2. An approved provider requesting approval of a change in ownership shall provide a Principal Application Form for each proposed new owner who would hold at least a 10% interest in the provider to the Board.
Non-compliance.
1. If the Board determines that an ACE course or provider no longer complies with the requirements for approval, the Board may suspend or revoke approval for the ACE course or provider.
2. Proceedings to suspend or revoke approval of an ACE course or provider shall be conducted in accordance with §153.41 of this title.

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§153.41 ACE Providers: Compliance and Enforcement

Audits. Board staff may:
1. conduct on-site audits without prior notice to a provider; and
2. enroll and attend a course without identifying themselves as employees of the Board for purposes of auditing a course.
Audit reports.
1. After conducting an audit, Board staff will prepare an audit report and send a copy of the report to the provider who is the subject of the audit.
2. If staff identifies deficiencies in an audit report, the provider will be given a reasonable opportunity to cure the deficiencies.
3. An audit report indicating noncompliance with AQB requirements, the Act, or Board Rules may be referred for enforcement and treated as a written complaint against the provider if probable cause exists to believe the noncompliance involves:
  1. gross negligence;
  2. knowledge or intent; or
  3. continued noncompliance after notice of the audit report and a reasonable opportunity to cure it voluntarily.
Reasonable Opportunity to Cure. For purposes of this section, a reasonable opportunity to cure means 30 days from the date a provider receives the audit report.
Extensions of time. The Board may grant a request for an extension of time to cure deficiencies if the provider:
1. submits the request in writing; and
2. demonstrates progress towards curing the deficiencies.
Complaints, investigations and hearings.
1. The Board will investigate complaints against providers or that allege violations of the AQB requirements, the Act, or Board Rules.
2. Complaints must be in writing, and the Board may not initiate an investigation, or take action against a provider, based on an anonymous complaint.
3. Board staff may initiate a complaint for any violation of AQB requirements, the Act, or Board Rules, including a complaint against a provider, if a document submitted to the Board provides reasonable cause to believe a violation occurred.
4. The Board shall provide a copy of the complaint the provider named in the complaint.
5. Proceedings against a provider will be conducted in the manner required by the Act, the Administrative Procedure Act, Chapter 2001, Government Code, and Chapter 157 of this title. Venue for any hearing or proceeding conducted under this section will be in Travis County.
Cooperation with audit or complaint investigation. A provider shall provide records in his or her possession for examination by the Board or provide such information requested by the Board not later than the 20th day after the date of receiving a request for examination of records or information.
Grounds for disciplinary action against an approved provider.
1. The following acts committed by a provider are grounds for disciplinary action by the Board:
  1. procuring or attempting to procure approval for a provider or course by fraud, misrepresentation or deceit, or by making a material misrepresentation of fact in an application filed with the Board;
  2. making a false representation to the Board, either intentionally or negligently, that a person attended a course or a portion of a course for which credit was awarded, that a person completed an examination, or that a person completed any other requirement for course credit;
  3. aiding or abetting a person to circumvent the requirements for attendance established by the Board, the completion of any examination, or any other requirement for course credit;
  4. failing to provide, not later than the 20th day after the date of a request, information requested by the Board as a result of a complaint alleging a violation of AQB requirements, the Act, or Board Rules;
  5. making a materially false statement to the Board in response to a request from the Board for information relating to a complaint against the provider; or
  6. disregarding or violating an AQB requirement or provision of the Act or Board Rules.
2. The Board may initiate a complaint against a provider if the Board receives a complaint, or is presented with other evidence acceptable to the Board alleging that a provider has failed to:
  1. teach the curriculum standards required by the AQB or Board Rules; or
  2. meet the course delivery requirements required by the AQB or Board Rules.
3. If after an investigation the Board determines that a provider engaged in any of the acts listed in this subsection, or failed to follow the curriculum standards or course delivery requirements of the AQB or Board Rules, the Board may take one or more of the following disciplinary actions against a provider:
  1. reprimand;
  2. impose an administrative penalty; or
  3. suspend or revoke approval of a provider or an ACE course offered by the provider.
Probation. The Board may probate an order of suspension or revocation issued under this section upon reasonable terms and conditions.

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§153.241 Sanctions Guidelines

In determining the proper disposition of a formal complaint pending as of or filed after the effective date of this rule, and subject to the maximum penalties authorized under Texas Occupations Code §1103.552, staff, the administrative law judge in a contested case hearing, and the Board shall consider the following sanctions guidelines and list of non-exclusive factors as demonstrated by the evidence in the record of a contested case proceeding.
1. For the purposes of these sanctions guidelines:
  1. A person will not be considered to have had a prior warning letter, contingent dismissal or discipline if that prior warning letter, contingent dismissal or discipline was issued by the Board more than seven years before the current alleged violation occurred;
  2. Prior discipline is defined as any sanction (including administrative penalty) received under a Board final or agreed order;
  3. A violation refers to a violation of any provision of the Act, Board rules or USPAP;
  4. "Minor deficiencies" is defined as violations of the Act, Board rules or USPAP which do not impact the credibility of the appraisal assignment results, the assignment results themselves and do not impact the license holder's honesty, integrity, or trustworthiness to the Board, the license holder's clients, or intended users of the appraisal service provided;
  5. "Serious deficiencies" is defined as violations of the Act, Board rules or USPAP that:
    1. impact the credibility of the appraisal assignment results, the assignment results themselves or do impact the license holder's honesty, trustworthiness or integrity to the Board, the license holder's clients, or intended users of the appraisal service provided; or
    2. are deficiencies done with knowledge, deliberate or willful disregard, or gross negligence that would otherwise be classified as "minor deficiencies";
  6. "Remedial measures" include, but are not limited to, training, mentorship, education, reexamination, or any combination thereof; and
  7. The terms of a contingent dismissal agreement will be in writing and agreed to by all parties. Staff may dismiss the complaint with a non-disciplinary warning upon written agreement that the Respondent will complete all remedial measures within the agreed-upon timeframe. If the Respondent fails to meet the deadlines in the agreement, the Respondent's license or certification will be automatically set to inactive status until the Respondent completes the remedial measures set forth in the agreement.
2. List of factors to consider in determining proper disposition of a formal complaint:
  1. Whether the Respondent has previously received a warning letter or contingent dismissal and, if so, the similarity of facts or violations in that previous complaint to the facts or violations in the instant complaint matter;
  2. Whether the Respondent has previously been disciplined;
  3. If previously disciplined, the nature of the prior discipline, including:
    1. Whether prior discipline concerned the same or similar violations or facts;
    2. The nature of the disciplinary sanctions previously imposed; and
    3. The length of time since the prior discipline;
  4. The difficulty or complexity of the appraisal assignment(s) at issue;
  5. Whether the violations found were of a negligent, grossly negligent or a knowing or intentional nature;
  6. Whether the violations found involved a single appraisal/instance of conduct or multiple appraisals/instances of conduct;
  7. To whom were the appraisal report(s) or the conduct directed, with greater weight placed upon appraisal report(s) or conduct directed at:
    1. A financial institution or their agent, contemplating a lending decision based, in part, on the appraisal report(s) or conduct at issue;
    2. The Board;
    3. A matter which is actively being litigated in a state or federal court or before a regulatory body of a state or the federal government;
    4. Another government agency or government sponsored entity, including, but not limited to, the United States Department of Veteran's Administration, the United States Department of Housing and Urban Development, the State of Texas, Fannie Mae, and Freddie Mac; or
    5. A consumer contemplating a real property transaction involving the consumer's principal residence;
  8. Whether Respondent's violations caused any harm, including financial harm, and the extent or amount of such harm;
  9. Whether Respondent acknowledged or admitted to violations and cooperated with the Board's investigation prior to any contested case hearing;
  10. The level of experience Respondent had in the appraisal profession at the time of the violations, including:
    1. The level of appraisal credential Respondent held;
    2. The length of time Respondent had been an appraiser;
    3. The nature and extent of any education Respondent had received related to the areas in which violations were found; and
    4. Any other real estate or appraisal related background or experience Respondent had;
  11. Whether Respondent can improve appraisal skills and reports through the use of remedial measures;
3. The following sanctions guidelines shall be employed in conjunction with the factors listed in paragraph (2) of this rule to assist in reaching the proper disposition of a formal complaint:
  1. 1st Time Discipline Level 1–violations of the Act, Board rules, or USPAP which evidence minor deficiencies will result in one of the following outcomes:
    1. Dismissal;
    2. Dismissal with non-disciplinary warning letter; or
    3. Contingent dismissal with remedial measures.
  2. 1st Time Discipline Level 2–violations of the Act, Board rules, or USPAP which evidence serious deficiencies will result in one of the following outcomes:
    1. Contingent dismissal with remedial measures; or
    2. A final order which imposes one or more of the following:
      1. Remedial measures;
      2. Required promulgation, adoption and implementation of written, preventative policies or procedures addressing specific areas of professional practice;
      3. A probationary period with provisions for monitoring the Respondent's practice;
      4. Restrictions on the Respondent's ability to sponsor any appraiser trainees;
      5. Restrictions on the scope of practice the Respondent is allowed to engage in for a specified time period or until specified conditions are satisfied; or
      6. Up to $250 in administrative penalties per act or omission which constitutes a violation(s) of the Act, Board rules, or USPAP, not to exceed $3,000 in the aggregate.
  3. 1st Time Discipline Level 3–violations of the Act, Board rules, or USPAP which evidence serious deficiencies and were done with knowledge, deliberately, willfully, or with gross negligence will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required promulgation, adoption and implementation of written, preventative policies or procedures addressing specific areas of professional practice;
    5. A probationary period with provisions for monitoring the Respondent's practice;
    6. Restrictions on the Respondent's ability to sponsor any appraiser trainees;
    7. Restrictions on the scope of practice the Respondent is allowed to engage in for a specified time period or until specified conditions are satisfied; or
    8. Up to $1,500 in administrative penalties per act or omission which constitutes a violation(s) of the Act, Board rules, or USPAP, up to the maximum $5,000 statutory limit per complaint matter.
  4. 2nd Time Discipline Level 1–violations of the Act, Board rules, or USPAP which evidence minor deficiencies will result in one of the following outcomes:
    1. Dismissal;
    2. Dismissal with non-disciplinary warning letter;
    3. Contingent dismissal with remedial measures; or
    4. A final order which imposes one or more of the following:
      1. Remedial measures;
      2. Required promulgation, adoption and implementation of written, preventative policies or procedures addressing specific areas of professional practice;
      3. A probationary period with provisions for monitoring the Respondent's practice;
      4. Restrictions on the Respondent's ability to sponsor any appraiser trainees;
      5. Restrictions on the scope of practice the Respondent is allowed to engage in for a specified time period or until specified conditions are satisfied; or
      6. Up to $250 in administrative penalties per act or omission which constitutes a violation(s) of the Act, Board rules, or USPAP, up to the maximum $5,000 statutory limit per complaint matter.
  5. 2nd Time Discipline Level 2–violations of the Act, Board rules, or USPAP which evidence serious deficiencies will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required promulgation, adoption and implementation of written, preventative policies or procedures addressing specific areas of professional practice;
    5. A probationary period with provisions for monitoring the Respondent's practice;
    6. Restrictions on the Respondent's ability to sponsor any appraiser trainees;
    7. Restrictions on the scope of practice the Respondent is allowed to engage in for a specified time period or until specified conditions are satisfied; or
    8. Up to $1,500 in administrative penalties per act or omission which constitutes a violation(s) of the Act, Board rules, or USPAP, up to the maximum $5,000 statutory limit per complaint matter.
  6. 2nd Time Discipline Level 3–violations of the Act, Board rules, or USPAP which evidence serious deficiencies and were done with knowledge, deliberately, willfully, or with gross negligence will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required promulgation, adoption and implementation of written, preventative policies or procedures addressing specific areas of professional practice;
    5. A probationary period with provisions for monitoring the Respondent's practice;
    6. Restrictions on the Respondent's ability to sponsor any appraiser trainees;
    7. Restrictions on the scope of practice the Respondent is allowed to engage in for a specified time period or until specified conditions are satisfied; or
    8. Up to $1,500 in administrative penalties per act or omission which constitutes a violation(s) of the Act, Board rules, or USPAP, up to the maximum $5,000 statutory limit per complaint matter.
  7. 3rd Time Discipline Level 1–violations of the Act, Board rules, or USPAP which evidence minor deficiencies will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required promulgation, adoption and implementation of written, preventative policies or procedures addressing specific areas of professional practice;
    5. A probationary period with provisions for monitoring the Respondent's practice;
    6. Restrictions on the Respondent's ability to sponsor any appraiser trainees;
    7. Restrictions on the scope of practice the Respondent is allowed to engage in for a specified time period or until specified conditions are satisfied; or
    8. $1,000 to $1,500 in administrative penalties per act or omission which constitutes a violation(s) of the Act, Board rules, or USPAP, up to the maximum $5,000 statutory limit per complaint matter.
  8. 3rd Time Discipline Level 2–violations of the Act, Board rules, or USPAP which evidence serious deficiencies will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required promulgation, adoption and implementation of written, preventative policies or procedures addressing specific areas of professional practice;
    5. A probationary period with provisions for monitoring the Respondent's practice;
    6. Restrictions on the Respondent's ability to sponsor any appraiser trainees;
    7. Restrictions on the scope of practice the Respondent is allowed to engage in for a specified time period or until specified conditions are satisfied; or
    8. $1,500 in administrative penalties per act or omission which constitutes a violation(s) of the Act, Board rules, or USPAP, up to the maximum $5,000 statutory limit per complaint matter.
  9. 3rd Time Discipline Level 3–violations of the Act, Board Rules, or USPAP which evidence serious deficiencies and were done with knowledge, deliberately, willfully, or with gross negligence will result in a final order which imposes one or more of the following:
    1. A revocation; or
    2. $1,500 in administrative penalties per act or omission which constitutes a violation(s) of the Act, Board rules, or USPAP, up to the maximum $5,000 statutory limit per complaint matter.
  10. 4th Time Discipline–violations of the Act, Board rules, or USPAP will result in a final order which imposes one or more of the following:
    1. A revocation; and
    2. $1,500 in administrative penalties per act or omission which constitutes a violation(s) of USPAP, Board rules, or the Act, up to the maximum $5,000 statutory limit per complaint matter.
  11. Unlicensed appraisal activity will result in a final order which imposes a $1,500 in administrative penalties per unlicensed appraisal activity, up to the maximum $5,000 statutory limit per complaint matter.
4. In addition, staff may recommend any or all of the following:
  1. reducing or increasing the recommended sanction or administrative penalty for a complaint based on documented factors that support the deviation, including but not limited to those factors articulated under paragraph (2) of this subsection;
  2. probating all or a portion of any sanction or administrative penalty for a period not to exceed five years;
  3. requiring additional reporting requirements; and
  4. such other recommendations, with documented support, as will achieve the purposes of the Act, Board rules, or USPAP.

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Chapter 155 Rules Relating to Standards of Practice

§155.1 Standards of Practice

An appraisal or appraisal practice performed by a person subject to the Texas Appraiser Licensing and Certification Act must conform with the "Uniform Standards of Professional Appraisal Practice" (USPAP) of the Appraisal Foundation in effect at the time of the appraisal or appraisal practice.

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§155.2 Work Relating to Property Tax Protests

The preparation of a report or other work performed for an appraisal district or as part of any property tax consulting services on behalf of another person, that is used to develop, support, or protest an unequal appraisal under Chapter 41, Subchapter C or Chapter 42, Subchapter B of the Tax Code, is considered an appraisal or appraisal practice for the purposes of §155.1 of this chapter (relating to Standards of Practice) and must conform with Uniform Standards of Professional Appraisal Practice (USPAP), if the person preparing the report or other work presents it as the product of a person licensed, certified, registered, or approved under the Texas Appraiser Licensing and Certification Act.
A person licensed, certified, registered, or approved under the Texas Appraiser Licensing and Certification Act who is also certified as a property tax professional under Chapter 1151 of the Occupations Code or as a property tax consultant under Chapter 1152 of the Occupations Code, must include the USPAP disclaimer set out in subsection (c) of this section whenever that person prepares a report or other work used to develop, support, or protest an unequal appraisal under Chapter 41, Subchapter C or Chapter 42, Subchapter B of the Tax Code, solely under the authority of a property tax professional or consultant certification.
The USPAP disclaimer required under this section must:
1. be located directly above the preparer's signature;
2. be in at least 10-point boldface type; and
3. read as follows: USPAP DISCLAIMER: I AM LICENSED OR CERTIFIED AS A REAL PROPERTY APPRAISER AND A PROPERTY TAX PROFESSIONAL OR CONSULTANT. THIS REPORT WAS PREPARED IN MY CAPACITY AS A PROPERTY TAX PROFESSIONAL OR CONSULTANT AND MAY NOT COMPLY WITH THE REQUIREMENTS FOR DEVELOPMENT OF A REAL PROPERTY APPRAISAL CONTAINED IN THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP) OF THE APPRAISAL STANDARDS BOARD OF THE APPRAISAL FOUNDATION.

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§155.3 Certain Uses of Logo or Name Prohibited

A license holder, certificate holder, registrant or provider may not use all or part of the logo or name of the Board or another governmental agency in a manner that implies that the person:
1. is a governmental agency;
2. is endorsed by the Board or other agency other than as a license holder, certificate holder, registrant, or provider; or
3. holds a special status that the Board or other agency has not granted.

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Chapter 157 Rules Relating to Practice and Procedure

Subchapter A General Provisions

§157.1 Definitions

For the purposes of action against appraisers, appraiser trainees, applicants for certification, licensure, or trainee approval, and unlicensed persons performing appraisals, the definitions in §153.1 of this title shall apply to this chapter. For the purposes of action against appraisal management companies, applicants for registration, and unregistered persons engaging in appraisal management services, the definitions in §159.1 of this title shall apply to this chapter.

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§157.2 Object of Rules

The purpose of these rules is to provide for a simple and efficient system of procedure before the board, to ensure uniform standards of practice and procedure, public participation and notice of board actions, and a fair and expeditious determination of causes. These rules shall be liberally construed, with a view towards the purpose for which they were adopted.

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§157.3 Scope of Rules

This chapter shall govern the procedure for the institution, conduct and determination of all causes and proceedings before the Board. This chapter shall not be construed so as to enlarge, diminish, modify or alter the jurisdiction, powers or authority of the Board or the substantive rights of any person.

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§157.4 Computation of Time; Mailbox Rule

Computation of Time. The following rules apply when computing any time period specified in Chapters 153, 157, or 159, or in any statute that does not specify a method of computing time:
1. Exclude the day of the event that triggers the time period;
2. Count every day, including intermediate Saturdays, Sundays, and legal holidays; and
3. Include the last day of the period, except if the last day of the period is a Saturday, Sunday, or legal holiday, the period continues to run until the end of the next day that is not a Saturday, Sunday, or legal holiday.
4. If the Board is closed on the last day of the period as computed under subsection (a)(3) of this section, then the time period is extended to the first day the Board is open that is not a Saturday, Sunday, or legal holiday.
Mailbox rule.
1. Service by mail is complete upon deposit of the notice in a prepaid, properly addressed envelope in a post office or official depository under the care and custody of the United States Postal Service.
2. Service by electronic mail is complete upon sending an email to the respondent's or applicant's email address as shown in the Board's records.
3. Presumption of receipt. Unless proven by evidence submitted to the contrary, a rebuttable presumption that respondent or applicant received proper notice from the Board will arise:
  1. immediately after sending electronic mail to the respondent's or applicant's email address as shown in the Board's records; or
  2. three business days after the date the notice is deposited with the United States Postal Service.
4. Failure to claim or refusal of properly addressed certified or registered mail does not support a finding of nonreceipt.
Definitions. For purposes of this section, the following definitions apply:
1. Last day - Unless a different time is set in statute or Board order, the last day ends:
  1. For electronic filing, at midnight in the Board's time zone;
  2. For filing by other means, when the Board's office is scheduled to close.
2. Next day - The next day is determined by continuing to count forward when the period is measured after an event and backward when measured before an event.
3. Legal holiday - the term "legal holiday" includes:
  1. a national holiday as defined in Government Code §662.003(a);
  2. a state holiday as defined in Government Code §662.003(b); and
  3. any day declared a holiday by the President or the Governor.

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§157.5 Conduct and Decorum

Every party, witness, attorney or other representative shall comport himself or herself in all proceedings with proper dignity, courtesy and respect for the Board and all other parties. Disorderly conduct will not be tolerated. Attorneys and other representatives of parties shall observe and practice the standards of ethical behavior prescribed for attorneys-at-law by the State Bar of Texas.

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§157.6 Request for Advisory Opinions

Upon written request and in accordance with the Texas Open Meetings Act, the Board may issue advisory opinions. Such opinions are not binding on the Board or on the person making the request, and may not be relied upon as an official Board ruling. The Board shall maintain a record of each advisory opinion, identifying the person to whom it was issued. The Board shall review issued opinions on a periodic basis to determine whether they should be withdrawn or superseded.

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§157.7 Denial of a License, Renewal or Reinstatement; Adverse Action

Denial of a License, Renewal, or Reinstatement.
1. If the Board denies the issuance, renewal or reinstatement of a license, the Board shall promptly give written notice of denial to the applicant. If the applicant is supervised by another license holder, the Board shall send a copy of the notice of denial to the supervisory appraiser.
2. The notice of denial shall include:
  1. a statement of the Board's action;
  2. a summary of the facts and laws on which the action is based;
  3. a statement of the right of the person to request a hearing; and
  4. the following language in capital letters in boldface type: IF YOU FAIL TO REQUEST A HEARING IN WRITING WITHIN 30 DAYS, THIS DETERMINATION WILL BECOME FINAL.
3. If a person fails to request a hearing in writing within 30 days of receiving the notice, the Board's determination will become final.
Adverse Action.
1. If the Board proposes to take adverse action against a license holder, former license holder, registrant, or a person for unlicensed activity, the Board shall promptly give written notice to the person against whom the action is proposed to be taken. If an appraiser trainee is the respondent, the Board shall send a copy of the notice to the supervisory appraiser.
2. The notice of adverse action shall include:
  1. a summary of the facts and laws on which the proposed action is based;
  2. a statement of the action proposed by the Board, including the proposed sanction and/or the amount of any administrative penalties; and
  3. a statement of the right of the person to a hearing.
A license holder who has agreed in writing to suspension or revocation for failure to comply with the terms of a consent order, consent agreement, or agreed order in connection with an application or a previous disciplinary matter is deemed to have had notice and an opportunity for a hearing in a subsequent action resulting from failure to comply with an administrative requirement of probation, such as payment of a fee or completion of coursework.
Notices sent under this section are complete and effective if sent in the manner described in §157.9 of this title (relating to Notice of Hearing).
The mailbox rule described in §157.9 of this title applies to notices sent under this section if the notice was sent to the respondent's or applicant's mailing address or email address as shown in the Board's records in the manner described in §157.9 of this title.

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§157.8 Order Modifications

The Board will consider a modification of an existing agreed or consent order at its next scheduled Board meeting if the license holder or registrant:
1. is in compliance with the existing order at the time the request for modification is submitted; and
2. submits a written request that sets out the specific modification requested and the reason for the modification to the Board's general counsel on or before the 14th day prior to the next scheduled Board meeting. Submission of a request for modification of an agreed or consent order to the Board does not relieve the license holder or registrant of compliance obligations under the existing order.

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Subchapter B Contested Case Hearings

§157.9 Notice of Hearing

The notice of hearing must comply with Chapter 2001, Texas Government Code.
The notice of hearing shall be served not later than the 30th day before the hearing date.
Service of notice of hearing must be made in the manner prescribed by Chapter 2001, Texas Government Code, and the rules of the State Office of Administrative Hearings. Notice to a person who is a current license holder or applicant of the Board is complete and effective if sent by certified mail, return receipt requested, to the respondent's or applicant's mailing address and sent by:
1. electronic mail to the address as shown in the Board's records; or
2. first class mail.
The notice must include the following language in capital letters in boldface type: FAILURE TO APPEAR AT THE HEARING WILL RESULT IN THE ALLEGATIONS AGAINST YOU SET OUT IN THE COMPLAINT BEING ADMITTED AS TRUE AND A DEFAULT JUDGMENT BEING TAKEN AGAINST YOU.

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§157.10 Right to Counsel; Right to Participate

All parties, at their own expense, may be represented by counsel. This right may be expressly waived. Parties are entitled to respond and present evidence and argument on all issues involved, and to conduct cross examinations for full and true disclosure of the facts.
Costs of a transcript of a SOAH proceeding ordered by a party shall be paid by that party. Costs of a transcript of a SOAH proceeding ordered by the judge shall be split equally between the parties.

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§157.11 Contested Cases; Entry of Appearance; Continuance

When a contested case has been instituted, the respondent or the representative of the respondent shall enter an appearance not later than 20 days after the date of receipt of notice of hearing.
For purposes of this section, a contested case shall mean any action that is referred by the Board to the State Office of Administrative Hearings.
For purposes of this section, an entry of appearance shall mean the filing of a written answer or other responsive pleading with the State Office of Administrative Hearings.
The filing of an untimely appearance by a party, or entering an appearance at the contested case hearing entitles the Board to a continuance of the hearing in the contested case at the Board's discretion for such a reasonable period of time as determined by the administrative law judge, but not for a period of less than 20 days. For purposes of this section, an untimely appearance is an appearance not entered within 20 days of the date the respondent has received notice.

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§157.12 Failure to Attend Hearing; Default

SOAH rules regarding Default Proceedings and Dismissal Proceedings apply when a respondent or applicant fails to appear on the day and time set for hearing in a contested case. If a respondent or applicant fails to appear at a contested case hearing, the Board's staff may move either for dismissal of the case from SOAH's docket or for the issuance of a default proposal for decision by the administrative law judge.
If the administrative law judge issues a default proposal for decision or an order dismissing the case from the SOAH docket, the factual allegations included in the notice sent to respondent or applicant are deemed admitted as true and, upon return of the case from SOAH, the Board shall enter a default order against the respondent or applicant.
No additional proof is required to be submitted to the Board before the Board enters the final default order.
The administrative law judge may award reasonable costs to the Board as authorized in §1103.523 and §1104.2132, Texas Occupations Code.

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§157.13 Ex Parte Consultations

A member of the Board may not communicate, directly or indirectly, in connection with any issue of fact or law with any person, party, or their representative except on notice and opportunity for all parties to participate. A member of the Board may communicate ex parte with employees of the Board who have not participated in any hearing in the case for the purpose of utilizing the special skills or knowledge of the Board and its staff in evaluating the evidence.

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§157.14 Informal Disposition

Informal disposition may be made of any contested case by stipulation, agreed settlement, consent order or default. No stipulation or agreed settlement between the parties or their attorneys or representatives, with regard to any matter involved in any proceeding before the Board, shall be enforced unless it shall have been reduced to writing and signed by the parties or their authorized representatives and made a part of the record, or unless it shall have been dictated into the record by them during the course of a hearing or incorporated in an order bearing their written approval.

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Subchapter C Post Hearing

§157.15 Decision

The administrative law judge shall serve on the parties a proposal for decision which shall contain:
1. a statement of the administrative law judge's proposed reasons for the decision;
2. findings of fact and conclusions of law, separately stated, that are necessary to the proposed decision; and
3. a recommendation, separately stated from the findings of fact and conclusions of law, for:
  1. disciplinary action;
  2. an administrative penalty; or
  3. both.
Service. When a decision is prepared, a copy of the decision shall be served by the administrative law judge on each party, the respondent's attorney of record or representative, and the Board. Service of the decision shall be in accordance with §157.9 of this chapter.

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§157.16 Exceptions and Replies

Entitlement. Any party of record who is aggrieved by the administrative law judge's decision shall have the opportunity to file exceptions to the decision within 20 days from the date of service of the decision. Replies to the exceptions may be filed by the other party within 20 days of the filing of the exceptions.
Exceptions and replies shall be filed with the administrative law judge.

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§157.17 Final Decisions and Orders

After a proposal for decision has been issued by an administrative law judge, the Board will render the final decision in the contested case or remand the proceeding for further consideration by the administrative law judge.
The Board is responsible for imposing disciplinary action and/or assessing administrative penalties, if any, against a respondent who is found to have violated any of the Board's statutes or rules. The Board welcomes recommendations from an administrative law judge as to the sanctions to be imposed, but the Board is not required to give presumptively binding effect to the judge's recommendations and is not bound by such recommendations.
If the Board remands the case to the administrative law judge, the Board may direct that further consideration be accomplished with or without reopening the hearing and may limit the issues to be considered. If, on remand, additional evidence is admitted that results in a substantial revision of the proposal for decision, or the underlying facts, an amended or supplemental proposal for decision shall be prepared by the administrative law judge and the provisions of this subchapter shall apply. Exceptions and replies shall be limited to items contained in the amended or supplemental proposal for decision.
The proposal for decision may be acted upon by the Board after the expiration of the applicable time periods for filing exceptions and replies to exceptions, and after the administrative law judge has ruled on any exceptions and replies.
Any party may request oral arguments before the Board prior to the final disposition of the contested case. If the Board grants oral argument, oral argument will be conducted in accordance with this subsection.
1. The chairperson or the Board member designated by the chairperson to preside (the presiding member) shall announce the case. Upon the request of any party, the presiding member may conduct a prehearing conference with the parties and their attorneys of record. The presiding member may announce reasonable time limits for any oral arguments to be presented by the parties.
2. Oral arguments on the proposal for decision shall be limited to the record established at the contested case hearing. New evidence may not be presented on the substance of the case unless the party submitting the evidence can establish that the new evidence was not reasonably available at the time of the contested case hearing or the party offering the evidence was misled by a party regarding the necessity for offering the evidence at the contested case hearing.
3. In presenting oral arguments, the party bearing the burden of proof shall open and close. The party responding may offer rebuttal arguments. Parties may request an opportunity for additional rebuttal subject to the discretion of the presiding member.
4. After being recognized by the presiding member, the members of the Board may ask questions of the parties. If a party is represented by counsel, the questions must be directed to the party's attorney. Questions must be limited to the record and to the arguments made by the parties.
5. Upon the conclusion of oral arguments, questions by the members of the Board, and any discussion by the member of the Board, the presiding member shall call for a motion regarding disposition of the contested case. The presiding member may vote on the motion. A motion may be granted only if a majority of the members present and voting vote in favor of the motion. In the event of a tie vote, the presiding member shall announce that the motion is overruled.
Final orders on contested cases shall be in writing and signed by the presiding officer of the Board. Final orders shall include findings of fact and conclusions of law separately stated from disciplinary actions imposed and administrative penalties assessed. Parties shall be notified as provided in Chapter 2001, Texas Government Code. On written request, a copy of the decision or order shall be delivered or mailed to any party and to the respondent's attorney of record.
The Board may change a finding of fact or conclusion of law in a proposal for decision when the Board determines that:
1. the judge did not properly apply or interpret applicable law, agency rules, written policies provided by staff or prior administrative decisions;
2. a prior administrative decision on which the judge relied is incorrect or should be changed; or
3. a technical error in a finding of fact should be changed.
If the Board modifies, amends, or changes a finding of fact or conclusion of law in a proposal for decision, the order shall reflect the Board's changes and state the specific reason and legal basis for the changes.
If the Board does not follow the recommended disciplinary action and/or administrative penalty in a proposal for decision, the order shall explain why the Board chose not to follow the recommendation.
Imminent Peril. If the Board finds that an imminent peril to the public health, safety, or welfare requires immediate effect on a final decision or order in a contested case, it shall recite the factual and legal basis for its finding in the decision or order as well as the fact that the decision or order is final and effective on the date rendered, in which event the decision or order is final and appealable on the date rendered, and no motion for rehearing is required as a prerequisite for appeal.
Conflict of Interest. A Board member shall recuse himself or herself from all deliberations and votes regarding any matter:
1. the Board member reviewed as a member of a Peer Investigative Committee;
2. involving persons or transactions about which the Board member has a conflict of interest;
3. involving persons or transactions related to the Board member such that it creates the appearance of a conflict of interest; or
4. in which the Board member participated in the negotiation of a consent order.

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§157.18 Motions for Rehearing

Motions for rehearing in proceedings under Chapter 1103, Texas Occupations Code, are governed by §§2001.144 - 2001.147, Texas Government Code, and this section.
Motions for rehearing in proceedings under Chapter 1104, Texas Occupations Code, are governed by §1104.216, Texas Occupations Code, §§2001.144 - 2001.147, Texas Government Code, and this section.
A timely-filed motion for rehearing is a prerequisite to appeal, except as provided in §157.17 of this subchapter. The motion must be filed with the Board by:
1. delivering the motion in-person to the Board's headquarters;
2. sending the motion via email to general.counsel@talcb.texas.gov; or
3. sending the motion via fax to (512) 936-3788, ATTN: TALCB General Counsel.
Replies to a motion for rehearing may be filed as provided in Chapter 2001, Texas Government Code.
A motion for rehearing shall set forth the particular finding of fact, conclusion of law, ruling, or other action which the complaining party asserts caused substantial injustice to the party and was in error such as violation of a constitutional or statutory provision, lack of authority, unlawful procedure, lack of substantial evidence, abuse of discretion, other error of law, or other good cause specifically described in the motion. In the absence of specific grounds in the motion, the Board will take no action, and the motion will be overruled by operation of law.
Any party may request oral arguments before the Board prior to the final disposition of the motion for rehearing. If the Board grants a request for oral argument, oral arguments will be conducted in accordance with this subsection.
1. The chairperson or the Board member designated by the chairperson to preside (the presiding member) shall announce the case. Upon the request of any party, the presiding member may conduct a prehearing conference with the parties and their attorneys of record. The presiding member may announce reasonable time limits for any oral arguments to be presented by the parties.
2. Oral arguments on the motion shall be limited to a consideration of the grounds set forth in the motion. Testimony by affidavit or documentary evidence such as excerpts of the record before the presiding officer may be offered in support of, or in opposition to, the motion; provided, however, a party offering affidavit testimony or documentary evidence must provide the other party with copies of the affidavits or documents at the time the motion is filed. New evidence may not be presented on the substance of the case unless the party submitting the evidence can establish that the new evidence was not reasonably available at the time of the contested case hearing or the party offering the evidence was misled by a party regarding the necessity for offering the evidence at the contested case hearing.
3. In presenting oral arguments, the party filing the motion will have the burden of proof and shall open and close. The party responding to the motion may offer rebuttal arguments. Parties may request an opportunity for additional rebuttal subject to the discretion of the presiding member.
4. After being recognized by the presiding member, the members of the Board may ask questions of the parties. If a party is represented by counsel, the questions must be directed to the party's attorney. Questions must be limited to the grounds asserted for the motion to be granted and to the arguments made by the parties.
5. Upon the conclusion of oral arguments, questions by the members of the Board, and any discussion by the member of the Board, the presiding member shall call for a vote on the motion. A member of the Board need not make a separate motion or second a motion filed by a party. The presiding member may vote on the motion. A motion may be granted only if a majority of the members present and voting vote in favor of the motion. In the event of a tie vote, the presiding member shall announce that the motion is overruled.
A decision is final and appealable on the date rendered if:
1. the Board finds that an imminent peril to the public health, safety or welfare requires immediate effect; and
2. the Board's decision or order recites this finding and the fact that the decision is final and effective on the date rendered.

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§157.20 Judicial Review

A person who has exhausted all administrative remedies and who is aggrieved by a final decision in a contested case is entitled to judicial review.
The petition for judicial review must be filed in a district court of Travis County, Texas, as provided in Chapter 2001, Texas Government Code.
Pursuant to Texas Government Code, §2001.177, a party seeking judicial review of a final decision of the Texas Appraiser Licensing and Certification Board in a contested case shall pay all costs of preparing the original or certified copy of a record of the contested case proceedings.

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Subchapter D Penalties and Other Enforcement Provisions

§157.25 Temporary Suspension

The purpose of a temporary suspension proceeding is to determine whether the continued practice by a person licensed, certified or registered by the Board would constitute a continuing threat to the public welfare. A temporary suspension proceeding is ancillary to a disciplinary proceeding regarding alleged violations of the Act or Board rules and is not dispositive concerning any such violations.
Board staff may request the Board to grant a temporary suspension if:
1. the Board has opened a complaint investigation against a license holder; and
2. the following criteria are met:
  1. credible evidence shows:
    1. a license holder may continue to engage in conduct that may violate the Act, Board rules, or USPAP;
    2. the license holder's conduct involves recent or current appraisal practice; and
  2. sufficient evidence is available to proceed with a contested case hearing within 45 days of a temporary suspension proceeding.
The three Board members of the Enforcement Committee appointed by the chair of the Board shall serve as the disciplinary panel ("Panel") under Texas Occupations Code, §1103.5511 and §1104.211. The chair of the Board shall also appoint a Board member to act as an alternate member of the Panel in the event a member of the Panel is recused or unable to attend a temporary suspension proceeding.
Board staff must request a temporary suspension proceeding in writing by filing a motion for temporary suspension with the Board's general counsel.
The Panel may make a determination regarding a temporary suspension without notice or hearing pursuant to Texas Occupations Code, §1103.5511(c)(1) or §1104.211(c)(1), or may, if appropriate in the judgment of the chair of the Panel, provide the license holder or registrant with three days' notice of a temporary suspension hearing.
The requirement under Texas Occupations Code, §1103.5511(c)(1) or §1104.211(c)(1) that "institution of proceedings for a contested case hearing is initiated simultaneously with the temporary suspension" shall be satisfied if, on the same day the motion for temporary suspension is filed with the Board's general counsel, the licensed, certified or registered person that is the subject of the temporary suspension motion, and the State Office of Administrative Hearings, as applicable, is sent one of the following documents that alleges facts that precipitated the need for a temporary suspension:
1. Notice of Alleged Violation;
2. Original Statement of Charges; or
3. Amended Statement of Charges.
The Panel shall post notice of the temporary suspension proceeding pursuant to §551.045 of the Texas Government Code and Texas Occupations Code, §1103.5511(e) or §1104.211(e) and hold the temporary suspension proceeding as soon as possible.
The determination whether the continued practice by a person licensed, certified or registered by the Board would constitute a continuing threat to the public welfare shall be made from information presented to the Panel. The Panel may receive information and testimony in oral or written form. Documentary evidence must be submitted to the Board's general counsel in electronic format at least 24 hours in advance of the time posted for the temporary suspension hearing in all cases where the Panel will be meeting via teleconference. If a hearing is held following notice to a license holder or registrant, Board staff will have the burden of proof and shall open and close. The party responding to the motion for temporary suspension may offer rebuttal arguments. Parties may request an opportunity for additional rebuttal subject to the discretion of the chair of the Panel. The chair of the Panel may set reasonable time limits for any oral arguments and evidence to be presented by the parties. The Panel may question witnesses and attorneys at the members' discretion. Information and testimony that is clearly irrelevant, unreliable, or unduly inflammatory will not be considered.
The determination of the Panel may be based not only on evidence admissible under the Texas Rules of Evidence, but may be based on information of a type on which a reasonably prudent person commonly relies in the conduct of the person's affairs.
If the Panel suspends a license or certificate, it shall do so by order and the suspension shall remain in effect for the period of time stated in the order, not to exceed the date a final order is issued by the Board in the underlying contested case proceeding. The Panel order must recite the factual and legal basis for imminent peril warranting temporary suspension.
A temporary suspension under Texas Occupations Code §1103.5511 or §1104.211 shall not automatically expire after 45 days if the Board has scheduled a hearing on the contested case to take place within that time and the hearing is continued beyond the 45th day for any reason other than at the request of the Board.
If credible and verifiable information that was not presented to the Panel at a temporary suspension hearing, which contradicts information that influenced the decision of the Panel to order a temporary suspension, is subsequently presented to the Panel with a motion for rehearing on the suspension, the chair of the Panel will schedule a rehearing on the matter. The chair of the Panel will determine, in the chair's sole discretion, whether the new information meets the standard set out in this subsection. A rehearing on a temporary suspension will be limited to presentation and rebuttal of the new information. The chair of the Panel may set reasonable time limits for any oral arguments and evidence to be presented by the parties. Panel members may question witnesses and attorneys. Information and testimony that is clearly irrelevant, unreliable, or unduly inflammatory will not be considered. Any temporary suspension previously ordered will remain in effect, unless the Panel holds a rehearing on the matter and issues a new order rescinding the temporary suspension.

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§157.26 Unlicensed Activity

If the Board receives information indicating that a person has violated Chapter 1103 or 1104, Texas Occupations Code, or Board rules, the Board shall conduct an investigation to determine if such information is accurate. If the investigation produces evidence to indicate a probable violation of Chapter 1103 or Chapter 1104, Texas Occupations Code, or Board rules, the Board may, after notice and an opportunity for a hearing:
1. impose an administrative penalty;
2. issue an order to cease and desist; or
3. take such other action as may be necessary and proper.

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Subchapter E Alternative Dispute Resolution

§157.30 Alternative Dispute Resolution

It is the Board's policy to encourage the fair and expeditious resolution of all formal complaint matters through voluntary settlement procedures. The Board's Alternative Dispute Resolution (ADR) procedures are set out in this subchapter, however, the Board encourages the resolution of disputes at any time, whether under this subchapter or not.
ADR may be requested by the Board, a respondent or an applicant any time after the Board initiates a formal complaint against a respondent or denies an application.
This subchapter may apply to a contested case upon unanimous motion of the parties and at the discretion of the administrative law judge. In such cases, it is within the discretion of the judge to grant a continuance of the hearing to allow the use of ADR.
A contingent dismissal is a method of alternative dispute resolution available only at the discretion of the Board and its staff. An administrative law judge may not recommend a contingent dismissal as a method to resolve a contested case.

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§157.31 Investigative Conference

The Board may request an applicant or respondent to schedule an investigative conference to discuss a pending license application or the allegations of a pending complaint.
The applicant or respondent may choose to have the investigative conference:
1. in person at the Board's office in Austin, Texas;
2. by telephone;
3. by video conference; or
4. in writing.
An applicant or respondent may, but is not required to, have an attorney or other advocate present at an investigative conference.
An applicant or respondent will be provided with a Statement of Investigative Conference Procedures and Rights (IC Form) not later than three days before the date of the investigative conference. The applicant or respondent and the applicant's or respondent's attorney, if any, must acknowledge receipt of the IC Form by signing it and delivering it to the Board at the beginning of the investigative conference.
The Board will provide a copy of the investigative report to the applicant or respondent and the applicant's or respondent's representative(s), if any, not later than three days before the date of the investigative conference if the applicant or respondent and the applicant's or respondent's representative(s):
1. Submit a written request for a copy of the investigative report not later than five days before the date of the investigative conference; and
2. Sign the Board's confidentiality agreement prohibiting the re-release of the investigative report, without written permission of the Board or a court order, to anyone other than the:
  1. applicant;
  2. respondent;
  3. applicant's or respondent's supervisory appraiser, if any;
  4. applicant's or respondent's legal representative(s); or
  5. an expert witness for the applicant or respondent.
Participation in an investigative conference is not mandatory and may be terminated at any time by any person.
Recording Investigative Conferences. Any person may record an investigative conference by providing the notice required in this section.
1. Notice Required.
  1. A person choosing to record an investigative conference must provide written notice to the other person(s) participating in the investigative conference three days before the date of the conference.
  2. The notice must state how the person intends to record the investigative conference.
  3. For purposes of this section, the term "written notice" includes a letter or e-mail.
2. Audio Recordings. A person who chooses to make an audio recording of an investigative conference must provide:
  1. the recording equipment; and
  2. if requested by another person during or after the investigative conference, a copy of the audio recording at the recording person's expense within seven days after the date of the request.
3. Recording by Court Reporter. A person who chooses to have a court reporter record an investigative conference does so at the person's own expense and must:
  1. allow any person who participates in the investigative conference to make corrections to the court reporter's transcript; and
  2. provide an electronic copy of the final transcript to all persons who participate in the investigative conference at the recording person's expense within seven days after the transcript is final.
At the conclusion of the investigative conference, the Board staff may propose a settlement offer that can include administrative penalties and any other disciplinary action authorized by the Act or recommend that the complaint be dismissed.
The respondent may accept, reject, or make a counter offer to the proposed settlement not later than ten (10) days following the date of the investigative conference.
If the parties cannot reach a settlement not later than ten (10) days following the date of the investigative conference, the matter will be referred to the Director of TALCB or his or her designee to pursue appropriate action.
In this section, the term "person" includes:
1. an applicant for a license or registration;
2. a respondent to a complaint; and
3. the Board.

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§157.32 Negotiated Settlement

The Board staff and the respondent or applicant may enter into a settlement agreement following negotiations at any time without first engaging in an investigative conference.
Negotiations may be conducted in person, by telephone, video conference, or through any form of written communication, including email.

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§157.33 Mediation

If a resolution cannot be reached through an investigative conference or negotiated settlement and with the consent of all parties, the Board may schedule an original mediation with SOAH before filing a petition on the formal complaint with SOAH. Mediation will be set for either a four (4) hour or eight (8) hour session, at the discretion of the Board, based on the nature and complexity of the formal complaint. The Board will not refuse any reasonable request for mediation, as determined by the Director of TALCB or his or her designee. Neither a petition nor a reply is required to be filed with SOAH with an original mediation request.
After the Board files a Request to Docket form for mediation, SOAH will advise the parties of the mediator and the date, time and place for the mediation.
The parties at the mediation must have authority to settle, provided however, all agreements signed by Board staff at the mediation are subject to final approval by the Board.
If the mediator is a SOAH judge, that person will not also sit as the administrative law judge for the contested case hearing if mediation is not successful.
A respondent or applicant participating in a mediation at SOAH will pay one-half (1/2) of SOAH's fees incurred for the mediation directly to the Board before the date of the mediation. SOAH's fee for mediation will be based on the contract rate that SOAH bills the Board. If mediation does not take place due to settlement or cancellation by one of the parties, the Board will return the fee paid by the respondent or applicant, less one-half (1/2) any fees incurred in connection with mediation.

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§157.36 Stipulations

If Alternative Dispute Resolution does not result in the full settlement of a matter, the parties, in conjunction with the mediator if applicable, may limit the issues in a contested case through the entry of written stipulations. Such stipulations shall be forwarded or formally presented to the administrative law judge assigned to conduct the contested case hearing on the merits and shall be made part of the hearing record.

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§157.37 Agreements

Except for contingent dismissals, all agreements between or among parties that are reached as a result of Alternative Dispute Resolution must be committed to writing, signed by the respondent or applicant and a Board staff attorney and submitted to the Board for approval. Once signed by the Board, the agreement will have the same force and effect as a written contract.
If the Board does not approve a proposed settlement, the respondent or applicant will be so informed and the matter will be referred to the Director of TALCB or his or her designee to pursue appropriate action.

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§157.38 Confidentiality

Except as provided in subsections (c) and (d) of this section, communications made by a participant during Alternative Dispute Resolution (ADR) concerning the subject matter of the ADR, are confidential, not subject to disclosure, and may not be used as evidence in any proceeding.
Any notes or record made of or during ADR are confidential, and participants, including the mediator, may not be required to testify in any proceedings relating to or arising out of the matter in dispute or be subject to process requiring disclosure of confidential information or data relating to or arising out of the matter in dispute.
An oral communication or written material used in or made a part of ADR is admissible or discoverable only if it is admissible or discoverable independent of ADR.
If this section conflicts with other legal requirements for disclosure of communications or materials, the issue of confidentiality may be presented to the judge to determine, in camera, whether the facts, circumstances, and context of the communications or materials sought to be disclosed warrant a protective order or whether the communications or materials are subject to disclosure.
All communications in a mediation between parties and between each party and the mediator are confidential. No shared information will be given to the other party unless the party sharing the information explicitly gives the mediator permission to do so. Material provided to the mediator will not be provided to other parties and will not be filed or become part of the contested case record. All notes taken during mediation will be destroyed at the end of the process.

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Subchapter F Rulemaking

§157.50 Negotiated Rulemaking

It is the Board's policy to employ negotiated rulemaking procedures when appropriate. When the Board is of the opinion that proposed rules are likely to be complex, or controversial, or to affect disparate groups, negotiated rulemaking will be considered.
When negotiated rulemaking is to be considered, the Board will appoint a convener to assist it in determining whether it is advisable to proceed. The convener shall have the duties described in Government Code §2008.052 and shall make a recommendation to the Executive Director to proceed or to defer negotiated rulemaking. The recommendation shall be made after the convener, at a minimum, has considered all of the items enumerated in Government Code §2008.052(c).
Upon the convener's recommendation to proceed, the Board shall initiate negotiated rulemaking according to the provisions of Chapter 2008, Government Code.

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§157.51 Petition for Adoption of Rules

Any interested person, as defined by §2001.021, Government Code, may request a rule be adopted, amended, or repealed by submitting a written petition to the Board.
The written petition must include:
1. the person's full name, mailing address, telephone number, and email address;
2. a brief summary of the proposed action and its desired effect;
3. a justification for the proposed action set out in narrative form with sufficient particularity to inform the Board the reasons and arguments on which the person is relying;
4. if proposing a new rule, the text of the new rule in the exact form that is desired to be adopted; and
5. if proposing an amendment or repeal, the specific section and text of the rule the person wants to change, with deletions crossed through and additions underlined.
The written petition must be submitted to the Board by:
1. delivering the petition in person to the Board's headquarters;
2. sending the petition via email to general.counsel@talcb.texas.gov;
3. sending the petition via fax to (512) 936-3788, ATTN: General Counsel; or
4. sending the petition via mail to P.O. Box 12188, Austin, Texas, 78711, ATTN: General Counsel.
Not later than 60 days after the date of submission of a petition that complies with the requirements of this section, the Executive Committee, in consultation with Board staff, shall review the petition and either:
1. deny the petition in writing, stating the reasons for the denial and advising of other methods the interested person may communicate his or her concerns to the Board; or
2. initiate a rulemaking proceeding under Chapter 2001, Government Code, by directing that the petition be placed on the next agenda for discussion by:
  1. the Board; or
  2. the appropriate Board committee.

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Chapter 159 Rules Relating to the Provisions of the Texas Appraisal Management Company Registration and Regulation Act

§159.1 Definitions

AMC–Appraisal management company.
AMC Act–Chapter 1104, Texas Occupations Code, Texas Appraisal Management Company Registration and Regulation Act.
Administrative law judge–A judge employed by the State Office of Administrative Hearings (SOAH).
Advertising–A written or oral statement or communication by or on behalf of an AMC that induces or attempts to induce a member of the public to use the services of the AMC, including but not limited to all publications, radio or television broadcasts, all electronic media including email, text messages, social networking websites, and the Internet, business stationery, business cards, signs and billboards.
Applicant–A person seeking to become registered or renew a registration under the AMC Act.
Appraisal firm–An entity that employs appraisers on an exclusive basis and receives compensation for performing appraisals and issuing appraisal reports in its own name.
Appraiser contact–A person designated by an AMC pursuant to §1104.103(b)(6) of the AMC Act to respond to and communicate with appraisers on the AMC's appraisal panel regarding appraisal assignments.
Board–The Texas Appraiser Licensing and Certification Board.
Executive Director–The Executive Director of the Board.
Day–A calendar day unless clearly indicated otherwise.
Federally Regulated Appraisal Management Company–An appraisal management company as defined in §1104.003(b) of the AMC Act.
License–The whole or a part of any Board permit, certificate, approval, registration or similar form of permission required by Chapter 1103 or 1104, Texas Occupations Code.
License holder–A person licensed or registered by the Board under the AMC Act.
Party–The Board and each person named or admitted as a party.
Person–Any individual, partnership, corporation, or legal entity.
Primary contact–A person who meets the definition of "controlling person" in §1104.003 of the AMC Act and is designated by an AMC pursuant to §1104.104 of the AMC Act as the primary contact for all communication between the Board and the AMC.
Respondent–Any person subject to the jurisdiction of the Board, registered or unregistered, against whom any complaint has been made.
SOAH–State Office of Administrative Hearings.
USPAP–Uniform Standards of Professional Appraisal Practice.

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§159.3 Appraisal Management Company Advisory Committee

A quorum consists of three members of the committee.
The committee may meet at the call of the chair or upon the request of a majority of its members. The committee shall meet at the request of the Board.
Unless state law or Board rules require otherwise, meetings shall be conducted in accordance with Robert's Rules of Order.
At the end of a term, members shall continue to serve until their successors are qualified.
The committee is automatically abolished on December 31, 2026, unless the Board subsequently establishes a different date.

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§159.4 Exemptions

This chapter does not apply to appraisal management services provided:
1. for the appraisal of:
  1. commercial property; or
  2. residential properties of more than four units; or
2. by persons exempted under §1104.004, the AMC Act.
For the purposes of §1104.004 of the AMC Act:
1. a person exclusively employs appraisers on an employer and employee basis for the performance of appraisals if the person does not also employ appraisers as independent contractors or under any other arrangement;
2. a person employs not more than 15 appraisers on an exclusive basis as independent contractors for the performance of appraisals if:
  1. the person prohibits the independent contractors from performing appraisals for others; and
  2. the person does not employ more than 15 appraisers as independent contractors at any time;
3. a subsidiary of a financial institution is not a department or unit within the institution;
4. an AMC that requires an employee of the AMC who is an appraiser who provided no significant real property appraisal assistance to sign an appraisal that is completed by another appraiser who contracts with the AMC, is not exempt from the registration requirement or other requirements of the AMC Act; and
5. an AMC has an appraisal panel of not more than 15 appraisers at all times during a calendar year if:
  1. the AMC does not have more than 15 appraisers on its panel at any time; and
  2. an appraiser who has been removed from the AMC's panel is not added back to the panel within 12 months after the date of removal.
A person may solicit prospective panelists in anticipation of acting as an AMC without being registered as an AMC, provided that it is registered prior to forming a panel, accepting an appraisal assignment, or performing any other act constituting an appraisal management service.
For the purposes of the AMC Act, a property is located in Texas if it is located wholly or partly in the state.

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§159.52 Fees

The Board will charge and the Executive Director will collect the following fees:
1. a fee of $3,300 for an application for a two-year registration;
2. a fee of $3,000 for a timely renewal of a two-year registration;
3. a fee equal to 1-1/2 times the timely renewal fee for the late renewal of a registration within 90 days of expiration; a fee equal to two times the timely renewal fee for the late renewal of a registration more than 90 days but less than six months after expiration;
4. the national registry fee in the amount charged by the Appraisal Subcommittee for the AMC registry;
5. a fee of $500 for untimely payment of the AMC national registry fee;
6. a fee of $10 for each appraiser on a panel at the time of renewal of a registration;
7. a fee of $5 to add an appraiser to a panel in the Board's records;
8. a fee of $5 for the termination of an appraiser from a panel;
9. a fee of $50 to return to active status;
10. a fee of $50 for evaluation of an owner or primary contact's background history not submitted with an original application or renewal;
11. any fee required by the Department of Information Resources for establishing and maintaining online applications or as a subscription or convenience fee for use of an online payment system; and
12. a fee in the amount necessary to administer section 1104.052(c) of the AMC Act.
Fees must be submitted in U.S. funds payable to the order of the Texas Appraiser Licensing and Certification Board. Fees are not refundable once an application has been accepted for filing. Persons who have submitted a payment that has been dishonored, and who have not made good on that payment within 30 days, for whatever reason, must submit all replacement fees in the form of a cashier's check, money order, or online credit card payment.
AMCs registered with the Board must pay any annual registry fee as required under federal law. All registry fees collected by the Board will be deposited to the credit of the appraiser registry account in the general revenue fund. The Board will send the fees to the Appraisal Subcommittee as required by federal law.

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§159.101 Use of Business Name

A license holder must notify the Board, on a form approved by the Board, within 30 days after the license holder starts or stops using a business name other than the name in which the license holder is registered.

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§159.102 Eligibility for Registration; Ownership

If an owner of the applicant has had a license to act as an appraiser denied, revoked, or surrendered, the Board may require the applicant to provide information concerning whether the owner's license was denied, revoked, or surrendered for a nonsubstantive reason as determined by the Board.
For purposes of this Chapter, a nonsubstantive reason may include, but is not limited to:
1. mistake; or
2. failure to comply with technical requirements for renewal.

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§159.103 Applications

An application must be accompanied by one completed and signed Owner/Primary Contact Background History form for the primary contact and each owner of more than 10% of the company.
An application may be rejected if incomplete.
An application is subject to no further evaluation or processing if an applicant fails to provide information or documentation within 60 days after the Board makes written request for the information or documentation.
License holders must retain documents establishing ownership for a period of five years from the date the application was filed.

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§159.104 Primary Contact; Appraiser Contact; Controlling Person; Contact Information

Contact Information. For purposes of conducting business with the Board and receiving correspondence, service of documents, or notices from the Board, each applicant or license holder must provide the Board with the following contact information for its primary contact and appraiser contact:
1. mailing address;
2. phone number; and
3. email address.
Designation of additional controlling persons.
1. An applicant or license holder may designate additional controlling persons:
  1. on the applicant's initial license application or renewal form; or
  2. by filing the appropriate form with the Board.
2. An applicant or license holder must notify the Board within 10 days if a person designated as an additional controlling person ceases to serve in that role.
An applicant or license holder must give the Board written notice of any change to the contact information for its primary contact, appraiser contact, or additional controlling persons, if any, within 10 days of the change.
If a license holder's primary contact or appraiser contact changes, the license holder must give the Board written notice of the change, including all information required by this section and §1104.103(b)(4) and (6) of the AMC Act, and, if appropriate, documentation that the person is qualified to serve under §1104.104(b) of the AMC Act, within 10 days of the change.
A license holder must give the Board written notice within 10 days if its primary contact or appraiser contact ceases to serve in that role and a qualified replacement is not immediately named. If a license holder's primary contact or appraiser contact ceases to serve in that role and the license holder does not give the Board written notice of a replacement, the license holder will be placed on inactive status.
A primary contact who assumes that role during the term of the registration must provide the Board written consent to a criminal history background check, as required by §1104.102 of the AMC Act. If the person does not satisfy the Board's moral character requirements, the Board will remove the person from its records and the license holder will be placed on inactive status. Such a decision by the Board may be reviewed and reconsidered by the Executive Director if the license holder submits a written request for reconsideration within 10 days of notice that the person does not qualify to serve as primary contact. The license holder will remain on inactive status while the request for reconsideration is pending.
The appraiser contact must hold an active, current license issued by an appraiser regulatory agency within the jurisdiction of the Appraisal Subcommittee.
The Board will send all correspondence and serve all required notices and documents by sending such items to the mailing or email address of the applicant's or license holder's primary contact as shown in the Board's records.
If an applicant or license holder fails to update the contact information for its primary contact, appraiser contact, or additional controlling persons, if any, the contact information for these individuals is the last known contact information provided to the Board and shown in the Board's records.

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§159.105 Denial of Registration or Renewal of Registration

AMCs, persons who own more than 10% interest in an AMC, and individuals who act as the primary contact for an AMC must be honest, trustworthy, and reliable. Accordingly, such persons must satisfy the Board of their honesty, integrity, and trustworthiness before a registration may be issued and upon renewal.
The board deems the following felonies and misdemeanors directly related to the field of appraisal management and suggestive of a lack of the requisite moral character:
1. offenses involving fraud or misrepresentation;
2. offenses against real or personal property belonging to another, if committed knowingly or intentionally;
3. offenses against public administration;
4. offenses involving the sale or other disposition of real or personal property belonging to another without authorization of law;
5. offenses involving moral turpitude; and
6. offenses of attempting or conspiring to commit any of the foregoing offenses.
In determining whether a criminal offense by an applicant, the primary contact, or an owner of any interest in the AMC prevents the issuance or renewal of a registration, the Board will consider the following factors:
1. the nature and seriousness of the crime;
2. the relationship of the crime to the purposes for requiring a registration to provide appraisal management services;
3. the extent to which a registration might offer an opportunity to engage in further criminal activity of the same type as that which the person had previously been involved; and
4. the relationship of the crime to the ability, capacity, or fitness required to be involved, directly or indirectly, in performing the duties and discharge the responsibilities of AMC.
In determining the present fitness of a person who has committed an offense under this section, the Board will consider the following evidence:
1. the extent and nature of the person's past criminal activity;
2. the age of the person at the time of the commission of the crime;
3. the amount of time that has elapsed since the person's last criminal activity;
4. the conduct and work activity of the person prior to and following the criminal activity;
5. evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and
6. other evidence of the person's present fitness including letters of recommendation from prosecution, law enforcement, and correctional officers who prosecuted, arrested, or had custodial responsibility for the person; the sheriff and chief of police in the community where the person resides; and any other persons in contact with the person.
A person is presumed to lack the requisite moral character if less than two years has elapsed since the offense was committed.
An applicant is presumed to be unfit to perform appraisal management services if the person has violated the appraiser independence standards of Section 129E of the Truth in Lending Act (15 U.S.C. §1601 et seq.). This presumption may be rebutted by credible evidence to the contrary.
It is the responsibility of the applicant to the extent possible to secure and provide the Board the recommendations of the prosecution, law enforcement, and correctional authorities, as well as evidence, in the form required by the Board, relating to whether the applicant has maintained a record of steady employment, has maintained a record of good conduct, and is current on the payment of any outstanding court costs, supervision fees, fines, and restitution.
A currently incarcerated individual does not possess the required good moral character.
The primary contact and each owner of more than 10% of the AMC must consent in writing to a criminal history background check at the time the AMC submits an application for registration or renewal.
An applicant must provide information related to whether a person who owns an interest in the applicant has:
1. had a license or certification to act as an appraiser denied, revoked, or surrendered in lieu of revocation;
2. the license or certification to act as an appraiser has not been subsequently granted or reinstated; and
3. the license or certification to act as an appraiser was denied, revoked, or surrendered in lieu of revocation for a nonsubstantive reason for the Board's determination under §159.102 of this chapter.
An application for registration or renewal of registration that is denied by TALCB Division staff may be reviewed and reconsidered by the Executive Director if the applicant submits a written request for reconsideration within 10 days of notice of the denial. The right to request reconsideration is distinct from, and in addition to, an applicant's right to appeal an application denial before SOAH.

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§159.107 Expiration

A registration is valid for the term for which it is issued by the Board.

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§159.108 Renewal

Renewal Notice.
1. The Board will send a renewal notice to the license holder's primary contact at least 90 days prior to the expiration of the license.
2. Failure to receive a renewal notice from the Board does not relieve the license holder of the responsibility to timely apply for renewal.
Application for Renewal. To renew a license, a license holder must:
1. submit an application as required by §1104.103 of the AMC Act; and
2. pay all applicable renewal fees established in §159.52 of this chapter.
3. It is the responsibility of the license holder to apply for renewal in accordance with this section sufficiently in advance of the expiration date to ensure that all renewal requirements, including background checks, are satisfied before the expiration date of the license.
4. An application for renewal is not complete, and no renewal will issue, until all application requirements are satisfied.
Denial of Renewal. The Board may deny an application for license renewal if the license holder is in violation of a Board order.

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§159.109 Inactive Status

To elect to be placed on inactive status, a license holder must do the following:
1. file a request for inactive status on a form approved by the Board; and
2. confirm in writing to the Board that the license holder has given written notice of its election to go inactive to all appraisers listed on the license holder's appraiser panel at least 30 days prior to filing the request for inactive status.
In order to return from inactive status to active status, a license holder must submit to the Board a completed Request for Active Status form and proof of compliance with all outstanding requirements for active registration.
A license holder that has elected or been placed on inactive status may not engage in any activity for which registration is required until an active registration has been issued by the Board.
The appraiser panel of a license holder on inactive status will remain in place.
A license holder may renew on inactive status. To renew on inactive status, a license holder must satisfy:
1. all requirements under subsection (a) of this section; and
2. all renewal requirements for an active registration under §159.108 of this chapter.

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§159.110 AMC National Registry

For purposes of this rule, the term "AMC" includes each AMC registered with the Board under Chapter 1104, Occupations Code, including AMCs with an active or inactive license status, and each federally regulated AMC operating in this state.
An AMC must provide information to the Board and pay the required AMC Registry Fee on an annual basis.
The Board will send notice to each AMC regarding payment of AMC Registry Fees on or before November 1st of each calendar year.
On or after January 1st and before March 31st of the calendar year following the issuance of notice under subsection (c), each AMC must:
1. Submit the information required to determine the applicable AMC Registry Fee; and
2. Pay the applicable AMC Registry Fee.
The Board will transmit the information collected from each AMC to the Appraisal Subcommittee for inclusion on the AMC National Registry as required by federal law.
Failure to receive notice from the Board regarding annual payment of AMC Registry Fees does not relieve an AMC from submitting the required information and paying the applicable AMC Registry Fee in a timely manner as required in this section.
Failure to submit the required information and pay the applicable AMC Registry Fee in a timely manner as required in this section is a violation of this rule that may result in one or more of the following:
1. Assessment of a late fee;
2. Placement on inactive status; and
3. Disciplinary action, up to and including license revocation.

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§159.154 Competency of Appraisers

For purposes of §1104.154 of the AMC Act and this section, the term "assignment" means an appraisal assignment. This term does not include an appraisal review assignment.
In addition to verifying an appraiser's licensure as required by §1104.152 of the AMC Act, an AMC must, at the time of or before making an assignment to an appraiser, obtain a written certification from the appraiser that the appraiser:
1. is competent in the property type of the assignment;
2. is competent in the geographical area of the assignment;
3. has access to appropriate data sources for the assignment;
4. will immediately notify the AMC if the appraiser later determines that he or she is not qualified under paragraph (1), (2), or (3) of this subsection to complete the assignment; and
5. is aware that misrepresentation of competency is subject to the mandatory reporting requirement in §1104.160 of the AMC Act.
An AMC that has reviewed an appraiser's work must consider the findings of the review in verifying competency for the purpose of assigning future work.
For the purposes of verifying that an appraiser has not had a license denied in another jurisdiction, an AMC may rely on information provided by the appraiser.

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§159.155 Periodic Review of Appraisals

A license holder must have a written policy reflecting a process and controls in place to periodically review the work of appraisers performing appraisal services on 1-4 family unit properties collateralizing mortgage obligations by performing a review in accordance with Standards 3 and 4 of USPAP.
In accordance with 1104.156 of the Occupations Code, upon request by the Board, a license holder shall produce a copy of the written policy and information demonstrating compliance with the policy.
An appraiser is qualified to perform an appraisal review within the meaning of §1104.153 of the AMC Act if the appraiser conducting the review:
1. is licensed or certified to act as an appraiser in Texas or another jurisdiction;
2. holds the appropriate credential to have performed the appraisal being reviewed; and
3. does not develop an opinion of value. If the reviewer elects to develop an opinion of value within the review, the reviewer must be licensed or certified to act as an appraiser in Texas.
To satisfy the requirements of the AMC Act and this rule, a license holder performing an appraisal review must perform a scope of work that is sufficient to ensure that methods, assumptions, data sources, and conclusions of the appraisal subject to review comply with USPAP.

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§159.156 Business Records

For the purposes of the requirement in §1104.156(c) of the AMC Act regarding retention of written records of substantive communications between an AMC and an appraiser, a communication is substantive if it relates to the appraiser's qualifications or to the scope of work of an assignment.
An AMC may not require an appraiser to keep confidential the existence of the appraiser's business relationship with an AMC or the fact that the appraiser has received any specific assignment from the AMC to perform an appraisal.
A business entity required to register as an AMC must maintain documentation showing that it has complied with the requirements contained in its governing documents for changing officers or managers. The business entity must promptly provide to the Board upon request all business formation, ownership and representative authorization records and changes thereto required to be kept by the business entity by law.
Written records include electronic records.

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§159.157 Compensation of Appraisers

A license holder must compensate the appraisers on the panel based on a compensation policy, established by the license holder, that provides for customary and reasonable fees by taking into consideration the requirements of and any presumptions available under federal law.
A license holder must reassess its compensation policy at least annually and shall retain, for a period of five years, records of all compensation information that formed the basis for the policy.
A license holder must make any fee schedule adopted under its compensation policy available to each appraiser on its panel.
A license holder may not require an appraiser to sign a certification that a fee for an assignment is customary and reasonable.

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§159.159 Disclosure of Registered Name and Registration Number

For the purposes of the AMC Act, "documents used to procure appraisals" include written documents and electronic communications, including e-mail, used for that purpose, but does not include general advertisements and supporting documentation.
On all documents used to procure appraisals, an AMC must disclose the name it registered with the Board, any other name that it uses in business and the registration number received from the Board.

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§159.161 Appraiser Panel

If an appraiser is not employed by the AMC or already a member of the AMC's panel, an AMC must add the appraiser to the AMC's panel no later than the date on which the AMC makes an assignment to the appraiser.
To add an appraiser to a panel, the AMC must:
1. initiate the appropriate two-party transaction through the Board's online panel management system, including payment of any required fee(s); or
2. submit a notice on a form approved by the Board for this purpose, including the signatures of the appraiser and the AMC's primary contact, and the appropriate fee(s).
An appraiser or an AMC may terminate the appraiser's membership on a panel by:
1. submitting a termination notice electronically through the Board's online panel management system, including payment of any required fee; or
2. submitting a notice on a form approved by the Board for this purpose and the appropriate fee(s).
If an appraiser terminates his or her membership on a panel, the appraiser must immediately notify the AMC of the termination. If an AMC terminates an appraiser's membership on a panel, the AMC must immediately notify the appraiser of the termination.
If an appraiser's license is suspended or revoked, the Board will remove the appraiser from any panels on which the appraiser is listed with no fee charged to the AMC or the appraiser.
If an appraiser's license expires, the Board will:
1. change the appraiser's license status the month following expiration of the license; and
2. remove the appraiser from any panels on which the appraiser is listed with no fee charged to the AMC or the appraiser once the license can no longer be renewed.

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§159.162 Dispute Resolution

A license holder must provide a dispute resolution process for appraisers.
The dispute resolution process must provide for either:
1. review by an external third party; or
2. internal review by a person whose position within the company is above the level of the person responsible for the decision or action under review.
A license holder's dispute resolution process for appraisers must provide for:
1. a written response to the request for review;
2. a written statement of the outcome of the dispute resolution process; and
3. copies of all relevant documentation to the appraiser upon written request.
An appraiser who is aggrieved under §1104.157 or §1104.161 of the AMC Act must utilize the license holder's dispute resolution process before filling a complaint against the AMC with the Board.

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§159.201 Guidelines for Disciplinary Action

The Board may take disciplinary action, or deny issuing or renewing a license to an applicant, any time it is determined that the person applying for, renewing, or holding the license or the AMC's primary contact:
1. disregards or violates a provision of the AMC Act or Board rules;
2. is convicted of a felony;
3. fails to notify the Board not later than the 30th day after the date of the final conviction if the person, in a court of this or another state or in a federal court, has been convicted of or entered a plea of guilty or nolo contendere to a felony or a criminal offense involving fraud or moral turpitude;
4. fails to notify the Board not later than the 30th day after the date of incarceration if the person, in this or another state, has been incarcerated for a criminal offense involving fraud or moral turpitude;
5. fails to notify the Board of the following with regard to any professional or occupational license held by the person in Texas or another jurisdiction not later than the 30th day after the date:
  1. disciplinary action becomes final against the person; or
  2. the person voluntarily surrenders any professional or occupational license;
6. fails to require appraisal assignments be completed in compliance with the USPAP edition in effect at the time of the appraisal or appraisal practice;
7. acts or holds any person out as a registered AMC under the AMC Act or another state's act when not so licensed or certified;
8. accepts payment for appraisal management services but fails to deliver the agreed service in the agreed upon manner;
9. refuses to refund payment received for appraisal management services when he or she has failed to deliver the appraiser service in the agreed upon manner;
10. accepts payment for services contingent upon a minimum, maximum, or pre-agreed value estimate;
11. offers to perform appraisal management services or agrees to perform such services when employment to perform such services is contingent upon a minimum, maximum, or pre-agreed value estimate;
12. makes a material misrepresentation or omission of material fact;
13. has had a registration as an AMC revoked, suspended, or otherwise acted against by any other jurisdiction for an act which is an offense under Texas law;
14. procures a registration pursuant to the AMC Act by making false, misleading, or fraudulent representation;
15. has had a final civil judgment entered against him or her on any one of the following grounds:
  1. fraud;
  2. intentional or knowing misrepresentation; or
  3. grossly negligent misrepresentation in the making of real estate appraiser services;
16. fails to make good on a payment issued to the Board within 30 days after the Board has mailed a request for payment by certified mail to the license holder's primary contact as reflected in the Board's records;
17. knowingly or willfully engages in false or misleading conduct or advertising with respect to client solicitation;
18. uses any title, designation, initial or other insignia or identification that would mislead the public as to that person's credentials, qualifications, competency, or ability to provide appraisal management services;
19. requires an appraiser to pay for or reimburse the AMC for a criminal history check;
20. fails to comply with a final order of the Board; or
21. fails to answer all inquiries concerning matters under the jurisdiction of the Board within 20 days of notice to said person's or primary contact's address of record, or within the time period allowed if granted a written extension by the Board.
The Board has discretion in determining the appropriate penalty for any violation under subsection (a) of this section.
The Board may probate a penalty or sanction, and may impose conditions of the probation, including, but not limited to:
1. the type and scope of appraisal management practice;
2. requirements for additional education by the AMC's controlling persons;
3. monetary administrative penalties; and
4. requirements for reporting appraisal management activity to the Board.
A person applying for reinstatement after revocation or surrender of a registration must comply with all requirements that would apply if the registration had instead expired.
The provisions of this section do not relieve a person from civil liability or from criminal prosecution under the AMC Act or under the laws of this State.
The Board may not investigate under this section a complaint submitted more than four years after the date on which the alleged violation occurred involving the AMC that is the subject of the complaint.
Except as provided by Texas Penal Code §32.32(d), there will be no undercover or covert investigations conducted by authority of the AMC Act.
The Board reports to the Appraisal Subcommittee any disciplinary action taken by the Board against an AMC required to register under the AMC Act.

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§159.202 AMC Investigative Committee

The Board Chair, with the advice and consent of the Executive Committee, may appoint an Investigative Committee pool at least every two years.
A panel of the Investigative Committee shall consist of:
1. one or two Board members;
2. a member of the AMC Advisory Committee; and
3. a TALCB Investigator.
During complaint intake, the TALCB Director or his or her designee shall assign a TALCB Investigator to investigate the complaint.
Complaints in which adverse action or contingent dismissals is recommended by an investigator are subject to review by the Investigative Committee. Complaints that result in dismissals, defaults, or warning letters are not subject to review by the Investigative Committee.
No more than 7 days following the investigator's completion of an investigative report, the investigator shall provide his or her findings, including the investigative report and the complaint file, to the members of the Investigative Committee. The investigative report must include:
1. a statement of facts;
2. the investigator's recommendations; and
3. the position or defense of the respondent.
the Investigative Committee and staff may elect to confer in person, via e-mail, or video conference prior to the members' determination.
The Board delegates its authority to receive the written findings or determination of the Investigative Committee to the Executive Director.
No more than five business days after the review of the investigator's findings, the committee shall render a determination agreeing or disagreeing with the investigator's finding of alleged violations and submit a copy of their determination to the Executive Director or his or her designee on behalf of the Board. The determination shall serve as a recommendation to the TALCB Division as to whether to pursue adverse action against a respondent. A copy of the determination shall be included in the complaint file. The Board Chair may request statistical data related to the investigator's recommendations, members' determination, and adverse action pursued by the Division.
Board members who participate in the Investigative Committee Review of a complaint are disqualified from participating in any future adjudication of the same complaint.

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§159.204 Complaint Processing

Receipt of a Complaint Intake Form by the Board does not constitute the filing of a formal complaint by the Board against the AMC named on the Complaint Intake Form. Upon receipt of a signed Complaint Intake Form, staff will:
1. assign the complaint a case number in the complaint tracking system; and
2. send written acknowledgement of receipt to the complainant.
Priority of complaint investigations. The Board prioritizes and investigates complaints based on the risk of harm each complaint poses to the public. Complaints that pose a high risk of public harm include violations of the AMC Act or Board rules that:
1. evidence serious deficiencies, including:
  1. Fraud;
  2. Identity theft;
  3. Unlicensed activity;
  4. Ethical violations;
  5. Violations of appraiser independence; or
  6. Other conduct determined by the Board that poses a significant risk of public harm; and
2. were done:
  1. with knowledge;
  2. deliberately;
  3. willfully; or
  4. with gross negligence.
If the staff determines at any time that the complaint is not within the Board's jurisdiction, or that no violation exists, the complaint will be dismissed with no further processing. The Board or the Executive Director may delegate to staff the duty to dismiss complaints.
A complaint alleging mortgage fraud or in which mortgage fraud is suspected:
1. may be investigated covertly; and
2. will be referred to the appropriate prosecutorial authorities.
Staff may request additional information necessary to determine how to proceed with the complaint from any person.
As part of a preliminary investigative review, a copy of the Complaint Intake Form and all supporting documentation will be sent to the Respondent unless the complaint qualifies for covert investigation and the TALCB Division deems covert investigation appropriate.
The Board will:
1. protect the complainant's identity to the extent possible by excluding the complainant's identifying information from a complaint notice sent to a respondent.
2. periodically send written notice to the complainant and each respondent of the status of the complaint until final disposition. For purposes of this subsection, "periodically" means at least once every 90 days.
The Respondent must submit a response within 20 days of receiving a copy of the Complaint Intake Form. The 20-day period may be extended for good cause upon request in writing or by e-mail. The response must include the following:
1. A copy of the appraisal report(s), if any, that is (are) the subject of the complaint;
2. A copy of the documents or other business records associated with the appraisal report(s), incident(s), or conduct listed in the complaint, with the following signed statement attached to the response: I SWEAR AND AFFIRM THAT EXCEPT AS SPECIFICALLY SET FORTH HEREIN, THE COPY OF EACH AND EVERY BUSINESS RECORD ACCOMPANYING THIS RESPONSE IS A TRUE AND CORRECT COPY OF THE ACTUAL BUSINESS RECORD, AND NOTHING HAS BEEN ADDED TO OR REMOVED FROM THIS BUSINESS RECORD OR ALTERED. (SIGNATURE OF RESPONDENT);
3. A narrative response to the complaint, addressing each and every item in the complaint;
4. A list of any and all persons known to the Respondent to have actual knowledge of any of the matters made the subject of the complaint and, if in the Respondent's possession, contact information;
5. Any documentation that supports Respondent's position that was not in the original documentation, as long as it is conspicuously labeled as additional documentation and kept separate from the original documentation. The Respondent may also address other matters not raised in the complaint that the Respondent believes need explanation; and
6. a signed, dated and completed copy of any questionnaire sent by Board staff.
Staff will evaluate the complaint within three months of receipt of the response from Respondent to determine whether sufficient evidence of a potential violation of the AMC Act or Board rules exists to pursue investigation and possible formal disciplinary action. If staff determines there is no jurisdiction, no violation exists, or there is insufficient evidence to prove a violation, or the complaint warrants dismissal, including contingent dismissal, under subsection (m) of this section, the complaint will be dismissed with no further processing.
A formal complaint will be opened and investigated by a staff investigator or investigative committee if:
1. the informal complaint is not dismissed under subsection (i) of this section; or
2. staff opens a formal complaint on its own motion.
Written notice that a formal complaint has been opened will be sent to the Complainant and Respondent.
The staff investigator or investigative committee assigned to investigate a formal complaint will prepare a report detailing all findings.
In determining the proper disposition of a formal complaint pending as of or filed after the effective date of this subsection, and subject to the maximum penalties authorized under Chapter 1104, Texas Occupations Code, staff, the administrative law judge in a contested case hearing and the Board shall consider the following sanctions guidelines and list of non-exclusive factors as demonstrated by the evidence in the record of a contested case proceeding.
1. For the purposes of these sanctions guidelines:
  1. An AMC will not be considered to have had a prior warning letter, contingent dismissal or discipline if that prior warning letter, contingent dismissal or discipline occurred more than ten years ago;
  2. A prior warning letter, contingent dismissal or discipline given less than ten years ago will not be considered unless the Board took final action against the AMC before the date of the incident that led to the subsequent disciplinary action;
  3. Prior discipline is defined as any sanction, including an administrative penalty, received under a Board final or agreed order;
  4. A violation refers to a violation of any provision of the AMC Act or Board rules;
  5. "Minor deficiencies" is defined as violations of the AMC Act or Board rules which do not call into question the qualification of the AMC for licensure in Texas;
  6. "Serious deficiencies" is defined as violations of the Act or Board rules which do call into question the qualification of the AMC for licensure in Texas;
  7. "Remedial measures" include training, auditing, or any combination thereof; and
  8. The terms of a contingent dismissal agreement will be in writing and agreed to by all parties. Staff may dismiss the complaint with a non-disciplinary warning upon written agreement that the Respondent will complete all remedial measures within the agreed-upon timeframe. If the Respondent fails to meet the deadlines in the agreement, the Respondent's license or certification will be automatically set to inactive status until the Respondent completes the remedial measures set forth in the agreement.
2. List of factors to consider in determining proper disposition of a formal complaint:
  1. Whether the Respondent has previously received a warning letter or contingent dismissal, and if so, the similarity of facts or violations in that previous complaint to the facts or violations in the instant complaint matter;
  2. Whether the Respondent has previously been disciplined;
  3. If previously disciplined, the nature of the discipline, including:
    1. Whether it concerned the same or similar violations or facts;
    2. The nature of the disciplinary sanctions imposed;
    3. The length of time since the previous discipline;
  4. The difficulty or complexity of the incident at issue;
  5. Whether the violations found were of a negligent, grossly negligent or a knowing or intentional nature;
  6. Whether the violations found involved a single appraisal or instance of conduct or multiple appraisals or instances of conduct;
  7. To whom were the appraisal report(s) or the conduct directed, with greater weight placed upon appraisal report(s) or conduct directed at:
    1. A financial institution or their agent, contemplating a lending decision based, in part, on the appraisal report(s) or conduct at issue;
    2. The Board;
    3. A matter which is actively being litigated in a state or federal court or before a regulatory body of a state or the federal government;
    4. Another government agency or government sponsored entity, including, but not limited to, the United States Department of Veteran's Administration, the United States Department of Housing and Urban Development, the State of Texas, Fannie Mae, and Freddie Mac;
    5. A consumer contemplating a real property transaction involving the consumer's principal residence;
  8. Whether Respondent's violations caused any harm, including financial harm, and the amount of such harm;
  9. Whether Respondent acknowledged or admitted to violations and cooperated with the Board's investigation prior to any contested case hearing;
  10. The business operating history of the AMC, including:
    1. The size of the AMC's appraiser panel;
    2. The length of time Respondent has been licensed as an AMC in Texas;
    3. The length of time the AMC has been conducting business operations, in any jurisdiction;
    4. The nature and extent of any remedial measures and sanctions the Respondent had received related to the areas in which violations were found; and
    5. Respondent's affiliation with other business entities;
  11. Whether Respondent can improve the AMC's practice through the use of remedial measures; and
  12. Whether Respondent has voluntarily completed remedial measures prior to the resolution of the complaint.
3. The sanctions guidelines contained herein shall be employed in conjunction with the factors listed in paragraph (2) of this subsection to assist in reaching the proper disposition of a formal complaint:
  1. 1st Time Discipline Level 1–violations of the AMC Act or Board rules which evidence minor deficiencies will result in one of the following outcomes:
    1. Dismissal;
    2. Dismissal with non-disciplinary warning letter;
    3. Contingent dismissal with remedial measures.
  2. 1st Time Discipline Level 2–violations of the AMC Act or Board rules which evidence serious deficiencies will result in one of the following outcomes:
    1. Contingent dismissal with remedial measures;
    2. A final order which imposes one or more of the following:
      1. Remedial measures;
      2. Required adoption and implementation of written, preventative policies or procedures;
      3. A probationary period with provisions for monitoring the AMC;
      4. Monitoring and/or preapproval of AMC panel removals for a specified period of time;
      5. Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;
      6. Minimum of $1,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.
  3. 1st Time Discipline Level 3–violations of the AMC Act or Board rules which evidence serious deficiencies and were done with knowledge, deliberately, willfully, or with gross negligence will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required adoption and implementation of written, preventative policies or procedures;
    5. A probationary period with provisions for monitoring the AMC;
    6. Monitoring and/or preapproval of AMC panel removals for a specified period of time;
    7. Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;
    8. Minimum of $2,500 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.
  4. 2nd Time Discipline Level 1–violations of the AMC Act or Board rules which evidence minor deficiencies will result in one of the following outcomes:
    1. Dismissal;
    2. Dismissal with non-disciplinary warning letter;
    3. Contingent dismissal with remedial measures;
    4. A final order which imposes one or more of the following:
      1. Remedial measures;
      2. Required adoption and implementation of written, preventative policies or procedures;
      3. A probationary period with provisions for monitoring the AMC;
      4. Monitoring and/or preapproval of AMC panel removals for a specified period of time;
      5. Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;
      6. Minimum of $1,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.
  5. 2nd Time Discipline Level 2–violations of the AMC Act or Board rules which evidence serious deficiencies will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required adoption and implementation of written, preventative policies or procedures;
    5. A probationary period with provisions for monitoring the AMC;
    6. Monitoring and/or preapproval of AMC panel removals for a specified period of time;
    7. Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;
    8. Minimum of $2,500 in administrative penalties per act or omission which constitutes a violation(s) of AMC Act or Board rules; each day of a continuing violation is a separate violation.
  6. 2nd Time Discipline Level 3–violations of the AMC Act or Board rules which evidence serious deficiencies and were done with knowledge, deliberately, willfully, or with gross negligence will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required adoption and implementation of written, preventative policies or procedures;
    5. A probationary period with provisions for monitoring the AMC;
    6. Monitoring and/or preapproval of AMC panel removals for a specified period of time;
    7. Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;
    8. Minimum of $4,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.
  7. 3rd Time Discipline Level 1–violations of the AMC Act or Board rules which evidence minor deficiencies will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required adoption and implementation of written, preventative policies or procedures;
    5. A probationary period with provisions for monitoring the AMC;
    6. Monitoring and/or preapproval of AMC panel removals for a specified period of time;
    7. Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;
    8. Minimum of $2,500 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.
  8. 3rd Time Discipline Level 2–violations of the AMC Act or Board rules which evidence serious deficiencies will result in a final order which imposes one or more of the following:
    1. A period of suspension;
    2. A revocation;
    3. Remedial measures;
    4. Required adoption and implementation of written, preventative policies or procedures;
    5. A probationary period with provisions for monitoring the AMC;
    6. Monitoring and/or preapproval of AMC panel removals for a specified period of time;
    7. Monitoring and/or preapproval of the licensed activities of the AMC for a specified time period or until specified conditions are satisfied;
    8. Minimum of $4,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.
  9. 3rd Time Discipline Level 3–violations of the AMC Act or Board rules which evidence serious deficiencies and were done with knowledge, deliberately, willfully, or with gross negligence will result in a final order which imposes one or more of the following:
    1. A revocation; and
    2. Minimum of $7,000 in administrative penalties per act or omission which constitutes a violation(s) of Board Rules, or the AMC Act; each day of a continuing violation is a separate violation.
  10. 4th Time Discipline–violations of the AMC Act or Board rules will result in a final order which imposes one or more of the following:
    1. A revocation; and
    2. $10,000 in administrative penalties per act or omission which constitutes a violation(s) of the AMC Act or Board rules; each day of a continuing violation is a separate violation.
  11. Unlicensed AMC activity will result in a final order which imposes a $10,000 in administrative penalties per unlicensed AMC activity; each day of a continuing violation is a separate violation.
4. In addition, staff may recommend any or all of the following:
  1. Reducing or increasing the recommended sanction or administrative penalty for a complaint based on documented factors that support the deviation, including but not limited to those factors articulated under paragraph (2) of this subsection;
  2. Probating all or a portion of any remedial measure, sanction, or administrative penalty for a period not to exceed three years;
  3. Requiring additional reporting requirements;
  4. Payment of costs expended by the Board associated with the investigation, and if applicable, a contested case, including legal fees and administrative costs; and
  5. Such other recommendations, with documented support, as will achieve the purposes of the AMC Act or Board rules.
The Board may order a person regulated by the Board to refund the amount paid by a consumer to the person for a service regulated by the Board.
Agreed resolutions of complaint matters pursuant to Texas Occupations Code §1104.2081 must be signed by:
1. The Board Chair or if the Board Chair is unavailable or must recuse him or herself, the Board Chair's designee, whom shall be (in priority order) the Board Vice Chair, the Board Secretary, or another Board member;
2. Respondent;
3. A representative of the TALCB Division; and
4. The Executive Director or his or her designee.

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§159.205 Identity Theft

For purposes of this subchapter, "identity theft" means any of the following activities occurring in connection with the rendition of appraisal management services:
1. Unlawfully obtaining, possessing, transferring or using a license or license number issued by the Board; or
2. Unlawfully obtaining, possessing, transferring or using a person's electronic or handwritten signature.
A license holder shall implement and maintain reasonable procedures to protect and safeguard the license holder against identity theft.
A license holder must notify the Board if the license holder is the victim of identity theft within 90 days of discovering such theft. Effective notice may be provided by filing a signed, written complaint on a form prescribed by the Board.
The Board may invalidate a current license and issue a new one to a license holder the Board determines is a victim of identity theft. Any license holder seeking the invalidation of a current license and issuance of a new one must submit a written, signed request on a form provided by the Board for the invalidation of a current license and issuance of a new one. The basis for the request must be identity theft, and the requestor must submit credible evidence that the license holder is a victim of identity theft. Without limiting the type of evidence a license holder may submit to the Board to support a claim of identity theft, a court order issued in accordance with Texas Business and Commerce Code Chapter 521, Subchapter C, declaring the license holder is a victim of identity theft constitutes credible evidence. Any such court order must relate to identity theft as defined in this section.
Engaging in identity theft to perform unauthorized appraisal management services is a violation of this subchapter, which may result in disciplinary action under §159.201. In addition to any disciplinary action taken by the Board, persons engaging in identity theft may also be referred to the appropriate law enforcement agency for criminal prosecution.

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Texas Appraiser Licensing & Certification Board

License Holder Search

Related Information

Table of Contents

Chapter 151 General Administration

§151.1 Definitions

§151.2 Charges for Copies of Public Information

§151.3 Employee Training and Education

§151.4 Historically Underutilized Businesses Program

§151.5 Bid Opening and Tabulation

§151.6 Negotiation and Mediation of Certain Contract Disputes

§151.7 Vendor Protest Procedures

Chapter 153 Rules Relating to Provisions of the Texas Appraiser Licensing and Certification Act

§153.1 Definitions

§153.3 The Board

§153.5 Fees

§153.6 Military Service Member, Veteran, or Military Spouse Applications

§153.8 Scope of Practice

§153.9 Applications

§153.10 Issuance of Certification, License, or Trainee Approval

§153.11 Examinations

§153.12 Criminal History Checks

§153.13 Education Required for Licensing

§153.15 Experience Required for Licensing

§153.16 License Reinstatement

§153.17 License Renewal

§153.18 Appraiser Continuing Education (ACE)

§153.19 Licensing for Persons with Criminal History and Fitness Determination

§153.20 Guidelines for Disciplinary Action, Denial of License; Probationary License

§153.21 Appraiser Trainees and Supervisory Appraisers

§153.22 Volunteer Appraiser Experience Reviews

§153.23 Inactive Status

§153.24 Complaint Processing

§153.25 Temporary Out-of-State Appraiser License

§153.26 Identity Theft

§153.27 License by Reciprocity

§153.28 Peer Investigative Committee Review

§153.33 Signature or Endorsement of Appraisal

§153.37 Criminal Matters Referred to Law Enforcement

§153.40 Approval of Continuing Education Providers and Courses

§153.41 ACE Providers: Compliance and Enforcement

§153.241 Sanctions Guidelines

Chapter 155 Rules Relating to Standards of Practice

§155.1 Standards of Practice

§155.2 Work Relating to Property Tax Protests

§155.3 Certain Uses of Logo or Name Prohibited

Chapter 157 Rules Relating to Practice and Procedure

Subchapter A General Provisions

§157.1 Definitions

§157.2 Object of Rules

§157.3 Scope of Rules

§157.4 Computation of Time; Mailbox Rule

§157.5 Conduct and Decorum

§157.6 Request for Advisory Opinions

§157.7 Denial of a License, Renewal or Reinstatement; Adverse Action

§157.8 Order Modifications

Subchapter B Contested Case Hearings

§157.9 Notice of Hearing

§157.10 Right to Counsel; Right to Participate

§157.11 Contested Cases; Entry of Appearance; Continuance

§157.12 Failure to Attend Hearing; Default

§157.13 Ex Parte Consultations

§157.14 Informal Disposition

Subchapter C Post Hearing

§157.15 Decision

§157.16 Exceptions and Replies

§157.17 Final Decisions and Orders

§157.18 Motions for Rehearing

§157.20 Judicial Review

Subchapter D Penalties and Other Enforcement Provisions

§157.25 Temporary Suspension

§157.26 Unlicensed Activity

Subchapter E Alternative Dispute Resolution

§157.30 Alternative Dispute Resolution

§157.31 Investigative Conference

§157.32 Negotiated Settlement

§157.33 Mediation

§157.36 Stipulations

§157.37 Agreements

Texas Appraiser Licensing
& Certification Board