Proposed Rule(s) Filing Form -...

Department of State Division of Publications

For Department of State Use Only

312 Rosa L. Parks Avenue, 8th Floor SnodgrassfTN Tower Nashville, TN 37243

Sequence Number: O'JI-- ICJ - 1~ Phone: 615-741-2650 Email: publications.information@tn .gov

Rule ID(s): (.p ?a'-/ File Date: ~/~ / [18

Effective Date: (o {I t:# /l t:t

Proposed Rule(s) Filing Form Proposed rules are submitted pursuant to Tenn. Code Ann. §§ 4-5-202, 4-5-207, and 4-5-229 in lieu of a rulemaking hearing. It is the intent of the Agency to promulgate these rules without a rulemaking hearing unless a petition requesting such hearing is filed within ninety (90) days of the filing of the proposed rule with the Secretary of State. To be effective, the petition must be filed with the Agency and be signed by ten (10) persons who will be affected by the amendments, or submitted by a municipality which will be affected by the amendments, or an association of ten (10) or more members, or any standing committee of the General Assembly. The agency shall forward such petition to the Secretary of State.

Pursuant to Tenn. Code Ann. § 4-5-229, any new fee or fee increase promulgated by state agency rule shall take effect on July 1, following the expiration of the ninety (90) day period as provided in § 4-5-207. This section shall not apply to rules that implement new fees or fee increases that are promulgated as emergency rules pursuant to§ 4-5-208(a) and to subsequent rules that make permanent such emergency rules, as amended during the rulemaking process. In addition, this section shall not apply to state agencies that did not, during the preceding two (2) fiscal years, collect fees in an amount sufficient to pay the cost of operating the board, commission or entity in accordance with § 4-29-121 (b).

AgencyiBo-ard/Commission: r Tennessee Real Estate Appraiser.Commission -- . . ... . =· -____ DJvi~Jon·:_ .. Regulaj o~ ~oards -

Contact Person: i Sarah Mathews -·- - - - -Address: : 500 James Robertson Parkway, Nashville, TN . ~ Zip_: t_37f{~. .. - - - - . Phone: i 615-532-6303 Ema!I_: . .L_S_§[email protected]

Revision Type (check all that apply): X Amendment

New Repeal

Rule(s) (ALL chapters and rules contained in filing must be listed here. If needed, copy and paste additional tables to accommodate multiple chapters. Please make sure that ALL new rule and repealed rule numbers are listed in the chart below. Please enter only ONE Rule Number/Rule Title per row)

Chapter Number Chapter Title 1255-08 Appraisal Management Com~any Registration and Regulation Rule Number Rule Title 1255-08-.01 Registration Aoolication Requirements 1255-08-.02 Backqround Checks 1255-08-.07 Administrative Penalties

Rules of Tennessee Real Estate Appraiser Commission Chapter 1255-08 Appraisal Management Company Registration and Regulation Rule 1255-08-.01 - Rule 1255-08-.08

Chapter 1255-08 Appraisal Management Company Registration and Regulation

Amendments

Rule 1255-08-.01 Registration Application Requirements is amended by deleting the rule and substituting instead the following:

(1) An applicant for registration as an Appraisal Management Company or an entity that is exempt from the registration requirements pursuant to T.C.A. § 62-39-404(1) must submit a written application on the prescribed form. The application shall include the following information and certifications:

(a) The name, business address, telephone number and email address of the person or entity seeking registration.

(b) Designation of an agent for service of process within the state and an irrevocable Uniform Consent to Service of Process.

(c) If the entity is not a corporation that is domiciled in this state, the name and contact information for the company's agent for service of process in this state.

(d) The name, address and contact information for any individual or entity owning ten percent (10%) or more of the Appraisal Management Company.

(e) The name, address and contact information for an individual designated as the controlling person.

(f) Certification that any person owning the entity, in whole or in part, directly or indirectly, has never had a license or certificate to act as an appraiser refused , revoked or surrendered in lieu of disciplinary action in any state.

(g) Certification that the Appraisal Management Company is not more than ten percent (10%) owned by any person who has been convicted of any felony or a misdemeanor involving the theft of services, money or property, or has had an appraiser license, certification or registration denied, revoked or suspended subject to a disciplinary proceeding in any state.

(2) A registration fee of two thousand dollars ($2,000.00) is required at the time of application .

(3) The applicant shall post with the Commission at the time of application a surety bond in the amount of twenty thousand dollars ($20,000.00) .

(a) The bond shall accrue to the State for the benefit of a claimant against the registrant to secure the performance of the registrant's obligation.

(b) Any claims reducing the face amount of the bond must be restored at the time of the biennial renewal.

(4) Upon completion of the registration application and payment of all fees, the Commission shall issue the registrant a unique registration number and shall publish a list of all registered Appraisal Management Companies.

(5) For purposes of Chapter 1255-08 and the Tennessee Appraisal Management Company Registration and Regulation Act, unless context otherwise requires:

(a) "Good Moral Character" means a person has not been convicted of or pied nolo contendere to any felony or a misdemeanor involving theft of services, money or property, and has never had an appraiser license, certification or registration denied, revoked or suspended in any state.

Authority: T.C.A. §§ 62-39-403, 62-39-407, 62-39-408, 62-39-409, 62-39-410 and 62-39-423.

SS-7038 (June 2016) 2 RDA 1693


Rule 1255-08-.02 Background Checks is amended by deleting the phrase "individual" and substituting instead the phrase "person" and deleting the phrase "or any individual designated as the controlling person of the Appraisal Management Company" so that, as amended, the rule shall read:

Any person owning more than ten percent (10%) of the Appraisal Management Company shall submit a background check at time of application.

Authority: T.C.A. §§ 62-39-409 and 62-39-410.

Rule 1255-08-.07 Administrative Penalties is amended by adding a new subparagraph (1)(o) immediately following current subparagraph (1 )(n) and renumbering the subsequent subparagraphs accordingly so that, as amended, subparagraphs (1)(o) - (q) shall read :

(o) T.C.A. § 62-39-427 .. .. .. ... ... .... .. ... $50- $1,000

(p) Rule 1255-08-.01 ...... ... ........ ...... .. $50 - $1,000

(q) Commission Order ... .. ..... .. .. .... ..... $50 - $1,000

Authority: T.C.A. §§ 56-1 -308, 62-39-411 , 62-39-412, 62-39-413, 62-39-418, 62-39-419, 62-39-420, 62-39-421 , 62-39-422, 62-39-424 and 62-39-425.

SS-7038 (June 2016) 3 RDA 1693


* If a roll-call vote was necessary, the vote by the Agency on these rules was as follows:

Board Member Aye No Abstain Absent Signature (if required)

Rosemarie Johnson X Mark Johnstone X Warren Mackara X Rex Garrison X Randall Thomas X Jason Bennett X Vacant Vacant Vacant

I certify that this is an accurate and complete copy of proposed rules, lawfully promulgated and adopted by the Commission on 7/11/2017, and is in compliance with the provisions of T.C.A. § 4-5-222. The Secretary of State is hereby instructed that, in the absence of a petition for proposed rules being filed under the conditions set out herein and in the locations described, he is to treat the proposed rules as being placed on file in his office as rules at the expiration of ninety (90) days of the filing of the proposed rule with the Secretary of State.

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Date: 'Z,l\Q\ W \1; Signature: ~/\ :iJ;1 -Jt1(l Gvf::1u)A./f

Name of Officer: SP<\2tx\\ \\j\ N\ [~(Q\£,V\b

Title of Officer: f)sf:,S'\. (ott\ WM✓ LlJ \":l'i\bfL-

Subscribed and sworn to before me on: &:.br~ I ~ 2-o I f:! · Notary Public Signature: ~/\\fl CC,.. l_a'.Y'::.,........

My commission expires on: ~ OV. 5, ZtJ JC} I

All proposed rules provided for herein have been examined by the Attorney General and Reporter of the State of Tennessee and are approved as to legality pursuant to the provisions of the Administrative Procedures Act, Tennessee Code Annotated, Title 4, Chapter 5.

SS-7038 (June 2016) 4

tif~ Herbert H. Sla)ery Ill

Attorney General and Reporter

:3k/!ol<f Date

RDA 1693


Department of State Use Only

Filed with the Department of State on: 3 / ~ f / t'f>

SS-7038 (June 2016) 5

Effective on : l.9/("1 / t'o

Ji~L 7 Tre Hargett

Secretary of State

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RDA 1693


Regulatory Flexibility Addendum

Pursuant to T.C.A. §§ 4-5-401 through 4-5-404, prior to initiating the rule making process, all agencies shall conduct a review of whether a proposed rule or rule affects small business.

1. The type or types of small business and an identification and estimate of the number of small businesses subject to the proposed rule that would bear the cost of, or directly benefit from the proposed rule;

The rule may affect Appraisal Management Companies (AMCs) that apply for a license in Tennessee by requiring that they disclose certain information about their ownership. Although it is difficult to predict the number of AMC applicants that may be affected by this rule change, the Commission believes that number will be small.

2. The projected reporting, recordkeeping and other administrative costs required for compliance with the proposed rule, including the type of professional skills necessary for preparation of the report or record:

This rule would require minimal, if any, costs for compliance.

3. A statement of the probable effect on impacted small businesses and consumers:

The proposed rule may affect some AMCs, but we believe that number will be very small and that the rule will have minimal impact on those AMCs.

4. A description of any less burdensome. less intrusive or less costly alternative methods of achieving the purpose and objectives of the proposed rule that may exist, and to what extent the alternative means might be less burdensome to small business:

The Commission is not aware of any alternative methods to achieve the goals exhibited by these rules.

5. A comparison of the proposed rule with any federal or state counterparts:

Congress has implemented new federal requirements for AMCs. The Dodd-Frank Act established minimum requirements for the regulation of AMCs by adding a new section to Title XI of FIRREA. See§ 12 U.S.C. 3353. Additionally, under the new federal statute, if a state does not adopt the new federal requirements, AMCs in that state cannot perform appraisals in any federally-related transactions. Tennessee passed legislation during the 2017 legislative session to adopt the new federal requirements.

At this time, approximately 40 states have either adopted or proposed to adopt the new federal requirements. Therefore, the vast majority of those states have similar rules regarding AMCs.

6. Analysis of the effect of the possible exemption of small businesses from all or any part of the requirements contained in the proposed rule:

An exemption would not benefit small businesses.

SS-7038 (June 2016) 6 RDA 1693


Impact on Local Governments

Pursuant to T.C.A. §§ 4-5-220 and 4-5-228 "any rule proposed to be promulgated shall state in a simple declarative sentence, without additional comments on the merits of the policy of the rules or regulation, whether the rule or regulation may have a projected impact on local governments." (See Public Chapter Number 1070 (http://state.tn .us/sos/acts/106/pub/pc1070.pdf) of the 2010 Session of the General Assembly)

The Tennessee Real Estate Appraiser Commission does not foresee any impact on local governments.

SS-7038 (June 2016) 7 RDA 1693


Additional Information Required by Joint Government Operations Committee

All agencies, upon filing a rule, must also submit the following pursuant to T.C.A. § 4-5-226(i)(1 ).

(A) A brief summary of the rule and a description of all relevant changes in previous regulations effectuated by such rule;

These rules amend the current rules to implement changes to comply with federal requirements regarding Appraisal Management Companies ("AMC") . Specifically, the amendments include:

(1) An AMC must disclose if any person owning the entity has had a license or certificate to act as an appraiser refused, revoked or surrendered.

(2) An AMC must disclose certain convictions for any person that owns 10% or more of the AMC. (3) Adding a definition of "good moral character." (4) Adding a penalty fee for any violation of T.C.A. § 62-39-427.

(B) A citation to and brief description of any federal law or regulation or any state law or regulation mandating promulgation of such rule or establishing guidelines relevant thereto;

Section 1473 of the Dodd-Frank Act added a new section 1124 to Title XI of FIRREA, which established minimum requirements for regulating AMCs. The Tennessee Real Estate Appraiser Commission voted to adopt these rules, because if Tennessee does not adopt the new federal requirements AMCs in Tennessee would not be allowed to perform appraisals in federally related transactions.

(C) Identification of persons, organizations, corporations or governmental entities most directly affected by this rule, and whether those persons, organizations, corporations or governmental entities urge adoption or rejection of this rule;

I Appraisal Management Companies (AMC). We believe AMCs would urge the adoption of this rule.

(D) Identification of any opinions of the attorney general and reporter or any judicial ruling that directly relates to the rule or the necessity to promulgate the rule;

There are no known opinions of the Attorney General and Reporter or any judicial ruling that directly relates to this rule.

(E) An estimate of the probable increase or decrease in state and local government revenues and expenditures, if any, resulting from the promulgation of this rule, and assumptions and reasoning upon which the estimate is based. An agency shall not state that the fiscal impact is minimal if the fiscal impact is more than two percent (2%) of the agency's annual budget or five hundred thousand dollars ($500,000), whichever is less;

I This rule will have minimal, if any, impact on the state and local government revenues and expenditures.

(F) Identification of the appropriate agency representative or representatives, possessing substantial knowledge and understanding of the rule;

I Sarah M. Mathews, Assistant General Counsel for the Tennessee Real Estate Appraiser Commission

(G) Identification of the appropriate agency representative or representatives who will explain the rule at a scheduled meeting of the committees;


SS-7038 (June 2016) 8 RDA 1693


(H) Office address, telephone number, and email address of the agency representative or representatives who will explain the rule at a scheduled meeting of the committees; and

Sarah M. Mathews 500 James Robertson Parkway, Nashville, TN 37243 (615) 532-6303 Sarah. [email protected]

(I) Any additional information relevant to the rule proposed for continuation that the committee requests.

[ There is no known additional relevant information.

SS-7038 (June 2016) 9 RDA 1693

Department of State Division of Publications 312 Rosa L. Parks Avenue, 8th Floor Snodgrass/TN Tower Nashville, TN 37243 Phone: 615-741-2650 Email: publications.information@tn .gov

For Department of State Use Only

Sequence Number:

Rule ID(s):

File Date: i I Effective Date: ------J

Pr:oposed Rule(s) Filing Form - REDLINE Proposed rules are submitted pursuant to Tenn. Code Ann. §§ 4-5-202, 4-5-207, and 4-5-229 in lieu of a rulemaking hearing. It is the intent of the Agency to promulgate these rules without a rulemaking hearing unless a petition requesting such hearing is filed within ninety (90) days of the filing of the proposed rule with the Secretary of State. To be effective, the petition must be filed with the Agency and be signed by ten (10) persons who will be affected by the amendments, or submitted by a municipality which will be affected by the amendments, or an association of ten (10) or more members, or any standing committee of the General Assembly. The agency shall forward such petition to the Secretary of State.

Pursuant to Tenn. Code Ann. § 4-5-229, any new fee or fee increase promulgated by state agency rule shall take effect on July 1, following the expiration of the ninety (90) day period as provided in § 4-5-207. This section shall not apply to rules that implement new fees or fee increases that are promulgated as emergency rules pursuant to§ 4-5-208(a) and to subsequent rules that make permanent such emergency rules, as amended during the rulemaking process. In addition, this section shall not apply to state agencies that did not, during the preceding two (2) fiscal years, collect fees in an amount sufficient to pay the cost of operating the board, commission or entity in accordance with § 4-29-121 (b).

-·-·•---- ---· ---- - --:AgencyfBoard/Commission: Tennessee Real _Estate AppJaiser Commission __ _ __________________ _ ~ _ __ __ ____ Division: Regulatory ~o_ard~ _ __ _ _ _ _ ________ _ · Contact Person: Sarah Mathews ---- ·--- ---------

Address: ~Q0 James Robertson _p~k_way, __ N~sl!Y_!!~, I~-.---- ___ ______ Zip: 37243 -------

Phone: 615-532-6303 --- --- ------~-- _______ E_m_a_il_: ~ S_a_rah [email protected] _

Revision Type (check all that apply): X Amendment

New Repeal

Rule(s) (ALL chapters and rules contained in filing must be listed here. If needed, copy and paste add itional tables to accommodate multiple chapters. Please make sure that ALL new rule and repealed rule numbers are listed in the chart below. Please enter only ONE Rule Number/Rule Title per row)

Chapter Number Chapter Title 1255-08 Appraisal Management Company Registration and Regulation Rule Number Rule Title 1255-08-.01 Registration Application Requirements 1255-08-.02 Backqround Checks 1255-08-.07 Administrative Penalties


Chapter 1255-08 Appraisal Management Company Registration and Regulation

Amendments

Rule 1255-08-. 01 Registration Application Requirements is amended by deleting the rule and substituting instead the following:

(1) An applicant for registration as an Appraisal Management Company or an entity that is exempt from the registration requirements pursuant to T.C.A. § 62-39-404(1) must submit a written application on the prescribed form . The application shall include the following information and certifications:

(a) The name, business address, telephone number and email address of the person or entity seeking registration .

(b) Designation of an agent for service of process within the state and an irrevocable Uniform Consent to Service of Process.

(c) If the entity is not a corporation that is domiciled in this state, the name and contact information for the company's agent for service of process in this state.

(d) The name, address and contact information for any individual or entity owning ten percent (10%) or more of the Appraisal Management Company.

(e) The name, address and contact information for an individual designated as the controlling person.

(f) Certification that the controlling any person owning the entity, in whole or in part, directly or indirectly, has had never been convicted of a criminal act involving moral turpitude nor had a license or certificate to act as an appraiser refused , revoked or surrendered in lieu of disciplinary action in any state.

(g) Certification that the Appraisal Management Company is not more than ten percent (10%) owned by an individual or entity any person who tRat has been convicted of any felony or a misdemeanor involving the theft of services, money or property, or has had an appraiser license, certification or registration denied, revoked or suspended subject to a disciplinary proceeding in any state.

(2) A registration fee of two thousand dollars ($2,000.00) is required at the time of application.

(3) The applicant shall post with the Commission at the time of application a surety bond in the amount of twenty thousand dollars ($20,000.00).

(a) The bond shall accrue to the State for the benefit of a claimant against the registrant to secure the performance of the registrant's obligation .

(b) Any claims reducing the face amount of the bond must be restored at the time of the biennial renewal.

(4) Upon completion of the registration application and payment of all fees, the Commission shall issue the registrant a unique registration number and shall publish a list of all registered Appraisal Management Companies.

(5) For purposes of Chapter 1255-08 and the Tennessee Appraisal Management Company Registration and Regulation Act, unless context otherwise requires:

(a) "Good Moral Character" means a person has not been convicted of or pied nolo contendere to any felony or a misdemeanor involving theft of services, money or property, and has never had an appraiser license, certification or registration denied, revoked or suspended in any state.

Authority: T.C.A. §§ 62-39-403, 62-39-407, 62-39-408, 62-39-409, 62-39-410 and 62-39-423.

SS-7038 (June 2016) 2 RDA 1693


Rule 1255-08-.02 Background Checks is amended by deleting the phrase "individual" and substituting instead the phrase "person" and deleting the phrase "or any individual designated as the controlling person of the Appraisal Management Company" so that, as amended, the rule shall read:

Any individual person owning more than ten percent (10%) of the Appraisal Management Company Gf--aAY individual designated as the controlling person of the Appraisal Management Company shall submit a background check at time of application .

Authority: T.C.A. §§ 62-39-409 and 62-39-410.

Rule 1255-08-.07 Administrative Penalties is amended by adding a new subparagraph (1)(o) immediately following current subparagraph (1 )(n) and renumbering the subsequent subparagraphs accordingly so that, as amended, subparagraphs (1 )(o) - (q) shall read:

(o) T.C.A. § 62-39-427 ..... ... . ... .... .. .. . $50- $1,000

(Gp) Rule 1255-08-.01 ..... .. .. .......... ...... $50 - $1,000

(pq) Commission Order ...... .. ............... $50 - $1,000

Authority: T.C.A. §§ 56-1 -308, 62-39-411, 62-39-412, 62-39-413, 62-39-418, 62-39-419, 62-39-420, 62-39-421, 62-39-422, 62-39-424 and 62-39-425.

SS-7038 (June 2016) 3 RDA 1693


* If a roll-call vote was necessary, the vote by the Agency on these rules was as follows:

Board Member Aye No Abstain Absent Signature (if required)

Rosemarie Johnson X Mark Johnstone X Warren Mackara X Rex Garrison X Randall Thomas X Jason Bennett X Vacant Vacant Vacant

I certify that this is an accurate and complete copy of proposed rules, lawfully promulgated and adopted by the Commission on 7/11/2017, and is in compliance with the provisions of T.C.A. § 4-5-222. The Secretary of State is hereby instructed that, in the absence of a petition for proposed rules being filed under the conditions set out herein and in the locations described, he is to treat the proposed rules as being placed on file in his office as rules at the expiration of ninety (90) days of the filing of the proposed rule with the Secretary of State.

Date:

Signature: ____________________ _

Name of Officer: ---------------------

Title of Officer: ---------------------

Subscribed and sworn to before me on:

Notary Public Signature:

My commission expires on: __________________ _

SS-7038 (June 2016) 4 RDA 1693


All proposed rules provided for herein have been examined by the Attorney General and Reporter of the State of Tennessee and are approved as to legality pursuant to the provisions of the Administrative Procedures Act, Tennessee Code Annotated, Title 4, Chapter 5.

Chapter Number Chapter Title 1255-08 Appraisal Management Company Registration and ReQulation Rule Number Rule Title 1255-08-. 01 Registration Application Requirements 1255-08-.02 BackQround Checks 1255-08-. 07 Administrative Penalties

Department of State Use Only

Herbert H. Slatery Ill Attorney General and Reporter

Date

Filed with the Department of State on: ______________ _

Effective on:

SS-7038 (June 2016) 5

---------------

Tre Hargett Secretary of State

RDA 1693

Regulatory Flexibility Addendum

Pursuant to T.C.A. §§ 4-5-401 through 4-5-404, prior to initiating the rule making process, all agencies shall conduct a review of whether a proposed rule or rule affects small business.

1. The type or types of small business and an identification and estimate of the number of small businesses subject to the proposed rule that would bear the cost of, or directly benefit from the proposed rule;

The rule may affect Appraisal Management Companies (AMCs) that apply for a license in Tennessee by requiring that they disclose certain information about their ownership. Although it is difficult to predict the number of AMC applicants that may be affected by this rule change, the Commission believes that number will be small.

2. The projected reporting, recordkeeping and other administrative costs required for compliance with the proposed rule, including the type of professional skills necessary for preparation of the report or record:

This rule would require minimal, if any, costs for compliance.

3. A statement of the probable effect on impacted small businesses and consumers:

The proposed rule may affect some AMCs, but we believe that number will be very small and that the rule will have minimal impact on those AMCs.

4. A description of any less burdensome, less intrusive or less costly alternative methods of achieving the purpose and objectives of the proposed rule that may exist, and to what extent the alternative means might be less burdensome to small business:

The Commission is not aware of any alternative methods to achieve the goals exhibited by these rules.

5. A comparison of the proposed rule with any federal or state counterparts:

Congress has implemented new federal requirements for AMCs. The Dodd-Frank Act established minimum requirements for the regulation of AMCs by adding a new section to Title XI of FIRREA. See § 12 U.S. C. 3353. Additionally, under the new federal statute, if a state does not adopt the new federal requirements, AMCs in that state cannot perform appraisals in any federally-related transactions. Tennessee passed legislation during the 2017 legislative session to adopt the new federal requirements.

At this time, approximately 40 states have either adopted or proposed to adopt the new federal requirements. Therefore, the vast majority of those states have similar rules regarding AMCs.

6. Analysis of the effect of the possible exemption of small businesses from all or any part of the requirements contained in the proposed rule:

An exemption would not benefit small businesses.


Impact on Local Governments

Pursuant to T.C.A. §§ 4-5-220 and 4-5-228 "any rule proposed to be promulgated shall state in a simple declarative sentence, without additional comments on the merits of the policy of the rules or regulation, whether the rule or regulation may have a projected impact on local governments." (See Public Chapter Number 1070 (http://state.tn .us/sos/acts/1 06/pub/pc1070.pdf) of the 2010 Session of the General Assembly)

The Tennessee Real Estate Appraiser Commission does not foresee any impact on local governments.

SS-7038 (June 2016) 7 RDA 1693


Additional Information Required by Joint Government Operations Committee

All agencies, upon filing a rule, must also submit the following pursuant to T.C.A. § 4-5-226(i)(1 ).

(A) A brief summary of the rule and a description of all relevant changes in previous regulations effectuated by such rule;

These rules amend the current rules to implement changes to comply with federal requirements regarding Appraisal Management Companies ("AMC") . Specifically, the amendments include:

(1) An AMC must disclose if any person owning the entity has had a license or certificate to act as an appraiser refused, revoked or surrendered.

(2) An AMC must disclose certain convictions for any person that owns 10% or more of the AMC. (3) Adding a definition of "good moral character." (4) Adding a penalty fee for any violation of T.C.A. § 62-39-427.

(B) A citation to and brief description of any federal law or regulation or any state law or regulation mandating promulgation of such rule or establishing guidelines relevant thereto;

Section 1473 of the Dodd-Frank Act added a new section 1124 to Title XI of FIRREA, which established minimum requirements for regulating AMCs. The Tennessee Real Estate Appraiser Commission voted to adopt these rules, because if Tennessee does not adopt the new federal requirements AMCs in Tennessee would not be allowed to perform appraisals in federally related transactions.

(C) Identification of persons, organizations, corporations or governmental entities most directly affected by this rule, and whether those persons, organizations, corporations or governmental entities urge adoption or rejection of this rule;

I Appraisal Management Companies (AMC). We believe AMCs would urge the adoption of this rule.

(D) Identification of any opinions of the attorney general and reporter or any judicial ruling that directly relates to the rule or the necessity to promulgate the rule;

There are no known opinions of the Attorney General and Reporter or any judicial ruling that directly relates to this rule.

(E) An estimate of the probable increase or decrease in state and local government revenues and expenditures, if any, resulting from the promulgation of this rule, and assumptions and reasoning upon which the estimate is based. An agency shall not state that the fiscal impact is minimal if the fiscal impact is more than two percent (2%) of the agency's annual budget or five hundred thousand dollars ($500,000), whichever is less;

I This rule will have minimal, if any, impact on the state and local government revenues and expenditures.

(F) Identification of the appropriate agency representative or representatives, possessing substantial knowledge and understanding of the rule;


(G) Identification of the appropriate agency representative or representatives who will explain the rule at a scheduled meeting of the committees;


SS-7038 (June 2016) 8 RDA 1693


(H) Office address, telephone number, and email address of the agency representative or representatives who will explain the rule at a scheduled meeting of the committees; and

Sarah M. Mathews 500 James Robertson Parkway, Nashville, TN 37243 (615) 532-6303 Sarah. [email protected]

(I) Any additional information relevant to the rule proposed for continuation that the committee requests.

[ There is no known additional relevant information.

SS-7038 (June 2016) 9 RDA 1693

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