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AN ACT amending the state certified and license real property appraisers
  act; relating to appraisers; amending K.S.A. 58-4102 and 58-4103 and
  repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 58-4102 is hereby amended to read as follows: 58-
4102. As used in this act:
  (a)  ``Appraisal'' or ``real estate appraisal'' means an analysis, opinion
or conclusion prepared by a real estate appraiser relating to the nature,
quality, value or utility of specified interests in, or aspects of, identified
real estate. An appraisal may be classified by subject matter into either a
valuation or an analysis. A valuation is an estimate of the value of real
estate or real property. An analysis is a study of real estate or real property
other than estimating value.
  (b)  ``Appraisal assignment'' means an engagement for which an ap-
praiser is employed or retained to act, or would be perceived by third
parties or the public as acting, as a disinterested party in rendering an
unbiased analysis, opinion or conclusion relating to the nature, quality,
value or utility of specified interests in, or aspects of, identified real
     estate.
  (c)  ``Board'' means the real estate appraisal board established pur-
suant to the provisions of this act.
  (d)  ``Federal law'' means title XI of the financial institutions reform,
recovery and enforcement act of 1989 (12 U.S.C. 3331 et seq.) and any
other federal law, and any regulations adopted pursuant thereto.
  (e)  ``Federally related transaction'' means any real estate-related fi-
nancial transaction which: (1) A federal financial institutions regulatory
agency or the resolution trust corporation engages in, contracts for or
regulates; and (2) requires the services of an appraiser.
  (f)  ``Real estate'' means an identified parcel or tract of land, including
improvements, if any.
  (g)  ``Real estate appraisal organization'' means any nationally recog-
nized organization of professional appraisers.
  (h)  ``Real estate-related financial transaction'' means any transaction
involving: (1) The sale, lease, purchase, investment in or exchange of real
property, including interests in property or the financing thereof; (2) the
refinancing of real property or interests in real property; and (3) the use
of real property or interests in property as security for a loan or invest-
ment, including mortgage-backed securities.
  (i)  ``Real property'' means one or more defined interests, benefits and
rights inherent in the ownership of real estate.
  (j)  ``Specialized services'' means those appraisal services which do not
fall within the definition of appraisal assignment. Specified services may
include valuation work and analysis work. Regardless of the intention of
the client or employer, if the appraiser would be perceived by third parties
or the public as acting as a disinterested party in rendering an unbiased
analysis, opinion or conclusion, the work is classified as an appraisal as-
signment and not specialized services.
  (k)  A ``state certified appraiser'' means a person who develops and
communicates real estate appraisals and who holds a current, valid cer-
tificate issued to such person under the provisions of this act.
  (l)  A ``state licensed appraiser'' means a person who develops and
communicates real estate appraisals and holds a current, valid license
issued to such person under the provisions of this act.
  (m)  ``Written appraisal'' means a written statement used in connec-
tion with a federally related real estate-related transaction that is inde-
pendently and impartially prepared by a licensed or certified appraiser
setting forth an opinion of defined value of an adequately described prop-
erty as of a specific date, supported by presentation and analysis of rel-
evant market information.
  (n)  ``Appraiser'' means a person who develops and communicates real
estate appraisals and holds a current valid certification or license issued
to such person under the provisions of K.S.A. 58-4101 et seq., and amend-
ments thereto.
  Sec. 2.  K.S.A. 58-4103 is hereby amended to read as follows: 58-
4103. (a) Except as provided in subsection (b), no person, other than a
state certified or licensed appraiser, shall:
  (1)  Engage in any written appraisal in connection with a federally
related real estate-related transaction for which certification or licensure
is required pursuant to federal law; or
  (2)  assume or use the title of state certified or licensed appraiser or
any title, designation or abbreviation likely to create the impression of
certification as a real estate appraiser by this state.
  (b)  The board shall recognize on a temporary basis the certification
or license of an appraiser issued by another state in accordance with
federal law if:
  (1)  The property to be appraised is part of a federally related real
estate-related transaction pursuant to federal law;
  (2)  the appraiser's business in this state is of a temporary nature; and
  (3)  the appraiser registers with the board, as prescribed by the board.
  (c)  Violation of subsection (a) is a class B misdemeanor.
  (d)  The provisions of this act requiring certification or licensure or
the issuance of a certificate or license authorizing the practice of real
estate appraisal shall not be construed to prevent a person who is not a
state certified or licensed real estate appraiser from appraising real estate
for compensation if state certification or licensure is not required pur-
suant to federal law.
  (e) (d)  An individual who is not a state certified or licensed appraiser
may assist in the preparation of an appraisal if: (1) The assistant is under
the direct supervision of an individual who is a state licensed or certified
appraiser; and (2) the final appraisal document is approved and signed by
an individual who is a state certified or licensed appraiser.
  (e)  The provisions of paragraph (1) of subsection (a) shall not be ap-
plicable to financial institutions engaging in real estate-related financial
transactions and otherwise subject to K.S.A. 58-4101, et seq., and amend-
ments thereto, when the following conditions are met:
  (1)  An employee of the financial institution conducts an appraisal as
defined in subsection (a) of K.S.A. 58-4102, and amendments thereto; and
  (2)  when the loan that is the subject of such appraisal is not intended
to be sold in the secondary market and is intended to be held by the
financial institution for the life of the loan.
  If the financial institution disposes of such loan in the secondary mar-
ket, such financial institution shall be required to obtain an appraisal by
a state licensed or certified appraiser as required by paragraph (1) of
subsection (a) and the employee of the financial institution conducting
such appraisal shall not be otherwise considered to be an appraiser under
the law unless such person is licensed or certified.
  (f)  The provisions of paragraph (1) of subsection (a) shall not be ap-
plicable to licensed real estate brokers when such brokers are performing
comparative market analyses for the purpose of listing or selling real es-
tate.
  (g)  The provisions of paragraph (1) of subsection (a) shall not be ap-
plicable to licensed attorneys to the extent that such attorneys are engaged
in the practice of law as otherwise allowed by law.
  Sec. 3.  K.S.A. 58-4102 and 58-4103 are hereby repealed.
  Sec. 4.  This act shall take effect and be in force from and after its
publication in the statute book.