CR 25-025 Rule Text

STATE OF WISCONSIN

DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES

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IN THE MATTER OF RULEMAKING   :     PROPOSED ORDER OF THE PROCEEDINGS BEFORE THE   :     DEPARTMENT OF SAFETY DEPARTMENT OF SAFETY AND   :   AND PROFESSIONAL SERVICES PROFESSIONAL SERVICES   :       ADOPTING RULES

:   (CLEARINGHOUSE RULE   )

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PROPOSED ORDER

A proposed order of the Department of Safety and Professional Services to create SPS 85.120 (20m), 85.700 (1) (cm), 85.700 (1) (dm), 85.700 (1) (em), and 85.700

(4) relating to Appraiser Experience Requirements.

Analysis prepared by the Department of Safety and Professional Services.

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ANALYSIS

Statutes interpreted: Sections 458.06 (3) (e) and (4) (e), and 458.08 (3) (e), Stats.

Statutory authority: Sections 458.03 (1) (b) and 458.085, Stats.

Explanation of agency authority:

Section 458.03 (1) (b), Stats., provides that the department shall “…promulgate rules establishing criteria for the approval of educational and continuing educational programs and courses of study for appraisers and establishing criteria for the approval of the courses required under ss. 458.06 (2) (d) and 458.08 (2) (d).”

Section 458.085 Stats., provides that “The department shall promulgate rules establishing all of the following: (1) Educational requirements for general and residential appraiser certification and for appraiser licensure under this subchapter. (2) Experience requirements for general and residential appraiser certification and for appraiser licensure under this subchapter. (3) Continuing education requirements for renewal of certificates issued under this subchapter.”

Related statute or rule: N/A

Plain language analysis:

The proposed rule implements the Practical Applications of Real Estate Appraisal (PAREA) program for partial experience credit for applicants seeking a credential to perform appraisals in Wisconsin. PAREA is designed to offer practical experience in a virtual environment combining appraisal theory and methodology in real-world simulations. This experience can be provided through a wide range of online and virtual reality technologies. PAREA provides an alternative to the traditional supervisor and trainee model for experience for credentialed appraisers which has been a barrier to entering this field.

Summary of, and comparison with, existing or proposed federal regulation:

The Financial Institutions Reform, Recovery, and Enforcement Act, 12 U.S.C. 3331 et seq., (Title XI) was enacted in 1989. As outlined in Section 1116 or 12 U.S.C. 3345, every state certified appraiser must meet the minimum criteria for certification issued by the Appraisal Qualifications Board which is empowered by the Appraisal Subcommittee. The criteria and guide for PAREA were adopted by the Appraisal Qualification Board in October 2020. All PAREA programs must follow the PAREA Implementation Policies which were adopted by the Appraisal Qualification Board in December 2020.

Summary of public comments received on statement of scope and a description of how and to what extent those comments and feedback were taken into account in drafting the proposed rule: N/A

Comparison with rules in adjacent states:

Illinois: Rules of the Illinois Department of Financial and Professional Regulation address the practice of real estate appraisal in Illinois (68 Ill. Adm. Code 1455). The rules do not currently include PAREA to count as experience for certification.

Iowa: Rules of the Iowa Real Estate Appraiser Examining Board address the practice of real estate appraisal in Iowa [193F IAC 1 to 17]. The rules include PAREA to be used as experience for certification as residential and general appraisers, under the criteria of the Appraisal Qualifications Board [193F IAC 5.8(543D) and 6.8(543D)].

Michigan: Rules of the Michigan Department of Licensing and Regulatory Affairs address the practice of real estate appraisal in Michigan [Mich. Admin. Code, R 339.23101 to R 339.23405]. The rules include PAREA to be used as experience for certification as appraisers [Mich. Admin. Code, R 339.23203 (b)].

Minnesota: The Minnesota Statutes, Sections 82B.021 to 82B.24, address the practice of real estate appraisal in Minnesota. The statutes adopt all education, examination, and experience requirements established by the Appraiser Qualifications Board to apply to certified appraisers in Minnesota (Minnesota Statutes, Section 82B.095, Subd. 3).

PAREA is an option to be fully certified within those requirements. The applicant must complete the required qualifying education prior to starting the PAREA program and must also pass the national licensing and certification exam for the appropriate credential level.

Summary of factual data and analytical methodologies:

The proposed rules were developed, in consultation with the Real Estate Appraisers Board, by reviewing the education, examination, and experience requirements established by the Appraiser Qualifications Board as they relate to PAREA. SPS 85 to 87 were reviewed to determine the appropriate method to incorporate PAREA.

Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:

The proposed rules were posted for a period of 14 days to solicit public comment on economic impact, including how the proposed rules may affect businesses, local government units, and individuals. No comments were received.

Fiscal Estimate and Economic Impact Analysis:

The Fiscal Estimate and Economic Impact Analysis are attached.

Effect on small business:

These rules do not have an economic impact on small businesses, as defined in s. 227.114 (1), Stats. The Department’s Regulatory Review Coordinator may be contacted at [e-mail] or [phone].

Agency contact person:

Jake Pelegrin, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 4822 Madison Yards Way, P.O. Box 8366, Madison, Wisconsin 53708-8366; telephone [phone]; email at [e-mail].

Place where comments are to be submitted and deadline for submission:

Comments may be submitted to Jake Pelegrin, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 4822 Madison Yards Way, P.O. Box 8366, Madison, Wisconsin 53708-8366, or by email to [e-mail]. Comments must be received on or before the public hearing, scheduled for June 3, 2025, to be included in the record of rule-making proceedings.

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TEXT OF RULE