[THIS PAGE NOT FOR PUBLICATION IN THE CODE OF COLORADO REGULATIONS]
DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
BOARD OF REAL ESTATE APPRAISERS
4CCR 725-2

CHAPTER 3:	STANDARDS FOR REAL ESTATE APPRAISAL QUALIFYING EDUCATION PROGRAMS

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Board of Real Estate Appraisers (the “Board”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules of the Board.

STATEMENT OF BASIS

The statutory basis for the rules titled Rules of the Board of Real Estate Appraisers is Chapter 7 of Title 12, Article 61, Colorado Revised Statutes, as amended.  The General Assembly passed Senate Bill 90-34, effective July 1, 1990, which created the Board and mandated the licensing of real estate appraisers under the statutory terms and conditions.  The General Assembly has variously amended the statutes by passing House Bill 92-1177, House Bill 96-1080, Senate Bill 97-90, House Bill 97-1056, House Bill 00-1137 and House Bill 02-1130.

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the statute and the provisions of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989.

SPECIFIC PURPOSE OF THIS RULEMAKING

The specific purpose of this rule is to amend or repeal existing rules with respect to requirements for real estate appraiser qualifying education programs. 

Proposed New, Amended and Repealed Rules

[Deleted material shown struck through, new material shown ALL CAPS. Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Board at www.dora.state.co.us/real-estate/rulemaking/BOREA/index.htm]

CHAPTER 3:	STANDARDS FOR REAL ESTATE APPRAISAL QUALIFYING EDUCATION 			PROGRAMS

[PUBLICATION INSTRUCTIONS: 3.16, 3.17, 3.20, 3.21 REMAIN IN EFFECT UNCHANGED]

3.1	REPEALED.
3.2	Qualifying appraisal education shall be taken from providers approved by the Board.  In order to be approved, qualifying education courses and the providers shall meet the following standards at the time it is offered:
	A.	Course content was developed by persons qualified in the subject matter and 	instructional design;
B.	Course content is current and corresponds with the current body of knowledge;
C.	The instructor is qualified with respect to content and teaching methods, and the body of knowledge; 
D.	The number of participants and the physical facilities are consistent with the teaching method; 
E.	An examination is included for measuring the information learned; and
F.	The educational offering shall be developed and communicated in a manner as to promote and maintain a high level of public trust in appraisal practice.
3.3	The following may be approved as providers of qualifying appraisal education provided that the standards set forth in Rule 3.2 are maintained and the education providers have complied with all other requirements of the State of Colorado:
A.	Universities, colleges, junior colleges or community colleges accredited by a regional accrediting body accredited by the council on post secondary accreditation;
B.	Professional appraisal and real estate related organizations;
C.	State or federal government agencies;
D.	Proprietary schools holding valid certificates of approval from the Colorado Division of Private Occupational Schools, Department of Higher Education;
E.	Providers approved by other jurisdictions, provided the jurisdiction’s appraiser regulation program has been determined to be in compliance with FIRREA;
F.	Providers approved under the Course Approval Program of The Appraisal Foundation; and
G.	Such other providers as the Board may approve upon petition of the provider or the applicant in a form acceptable to the Board.
3.4	On or after January 1, 1991, in order to be approved by the Board, each education provider shall maintain, and provide to the Board upon request, information regarding the qualifying education course offerings including, but not limited to the following:
A.	Outline or syllabus;
B.	All texts, workbooks, hand outs or other course materials;
C.	Instructors and their qualifications, including selection, training and evaluation criteria;
D.	Course examinations;
E.	Dates and locations of course offerings; and
F.	Student attendance logs.
3.5	The number of hours credited shall be equivalent to the actual number of contact hours of in-class instruction and testing. An hour of education is defined as at least 50 minutes of instruction out of each 60-minute segment. For distance education, the number of hours credited shall be that number of hours allowed by the Course Approval Program of The Appraisal Foundation.
3.6	Each qualifying education course offering must be at least 15 hours in duration, include an examination pertinent to the material covered, and be comprised of segments of not less than one classroom hour.
3.7	Qualifying education courses and corresponding examinations must be successfully completed by the applicant. Successful completion means the applicant has attended the offering, participated in course activities and achieved a passing score on the course examination. Teaching of approved qualifying education shall constitute successful completion.
3.8	REPEALED.
3.9	It is the applicant’s responsibility to verify that a qualifying educational course offering has been approved by the board, if the applicant wishes to claim credit for the course.
3.10	Each applicant shall provide a signed statement, under penalty of perjury, attesting to the successful completion of the required hours of qualifying appraisal education on a form prescribed by the Board. The Board reserves the right to require an applicant or licensee to provide satisfactory documentary evidence of completion of appropriate qualifying education course work.
3.11	Hours of qualifying appraisal education accepted in satisfaction of the education requirement of one level of registration, licensure or certification may be applied toward the requirement for another level and need not be repeated. Applicants are responsible for demonstrating coverage of the required topics.
3.12	The following factors shall be used to convert university, college, junior college and community college course credits into qualifying education hours:
A.	Semester Credits x 15.00 = Hours
B.	Quarter Credits x 10.00 = Hours
3.13	Applicants shall successfully complete qualifying appraisal education which builds upon and augments previous courses. Qualifying education courses which substantially repeat or duplicate other course work in terms of content and level of instruction will not be accepted. The Board will give appropriate consideration to courses where substantive changes in content have occurred.
3.14	To be acceptable for qualifying appraisal education, distance education offerings must incorporate methods and activities that promote active student engagement and participation in the learning process. Among those methods and activities acceptable are written exercises which are graded and returned to the student, required responses to computer based presentations, provision for students to submit questions during teleconferences, and examinations proctored by an independent third party, who is an official approved by the college or university, or by the sponsoring organization. Simple reading, viewing or listening to materials without active student engagement and participation in the learning process is not sufficient to satisfy the requirements of this rule.
3.15	As to qualifying education courses completed in other jurisdictions with appraiser regulatory programs established in conformance with Title XI, FIRREA, the Board will accept the number of hours of education accepted by that jurisdiction.
3.18	Course providers shall provide each student who successfully completes a qualifying real estate appraisal education course in the manner prescribed in Board Rule 3.7 a course completion certificate. The Board will not mandate the exact form of course certificates, however, the following information shall be included:
A.	Name of course provider;
B.	Course title, which shall describe topical content, or 2008 Real Property Appraiser Qualification Criteria Core Curriculum module title;
C.	Course number, if any;
D.	Course dates;
E.	Number of approved education hours;
F.	Statement that the required examination was successfully completed;
G.	Course location, which for distance education modalities shall be the principal place of business of the course provider;
H.	Name of student; and
I.	For all Uniform Standards of Professional Appraisal Practice courses begun on and after January 1, 2003, the name(s) and Appraiser Qualifications Board Uniform Standards of Professional Appraisal Practice instructor certification number(s) of the instructor(s).
Licensees are required to provide copies of course certificates to the Board upon request.
3.19	The provisions of Board Rule 3.3 notwithstanding, qualifying education courses begun on and after January 1, 2004 and offered through distance education modalities must be approved through the Course Approval Program of The Appraisal Foundation. The Board will not accept distance education courses begun on and after January 1, 2004 that have not been approved through the Course Approval Program of The Appraisal Foundation.
3.22	By offering real estate appraiser qualifying education in the state of Colorado, each provider agrees to comply with the relevant statutes and board rules and to permit the Board to audit said courses at any time and at no cost.