Ch. 48             1997 Session Laws of Kansas             147

An Act concerning the state certified and licensed real property appraisers act; board ac-
tions on licenses and certificates; amending K.S.A. 58-4118 and 58-4123 and repealing
the existing sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 58-4118 is hereby amended to read as follows:
58-4118. (a) The board may investigate the actions of a state certified or
licensed appraiser and may revoke, condition, limit or suspend the cer-
tificate or license of the appraiser, or censure the appraiser, for any of
the following acts or omissions:

(1) Procuring or attempting to procure a certificate or license pur-
suant to this act by knowingly making a false statement, submitting false
information, refusing to provide complete information in response to a
question in an application for certification or licensure or any form of
fraud or misrepresentation;

(2) failing to meet the minimum qualifications established by this act;

(3) paying money, other than provided for by this act, to any member
or employee of the board to procure a certificate or license under this
act;

(4) a plea of guilty or nolo contendere to, or conviction of: (A) For-
gery, embezzlement, obtaining money under false pretenses, larceny, ex-
tortion, conspiracy to defraud or any other similar offense; (B) a crime
involving moral turpitude; or (C) any felony charge;

(5) an act or omission involving dishonesty, fraud or misrepresenta-
tion, with the intent to substantially benefit the appraiser or another per-
son or with the intent to substantially injure another person;

(6) violation of any of the standards for the development or com-
munication of real estate appraisals as provided in this act;

(7) failure or refusal without good cause to exercise reasonable dili-
gence in developing an appraisal, preparing an appraisal report or com-
municating an appraisal;

(8) negligence or incompetence in developing an appraisal, preparing
an appraisal report or communicating an appraisal;

(9) willfully disregarding or violating any provision of this act or rules
and regulations of the board for the administration and enforcement of
the provisions of this act;

(10) accepting an appraisal assignment, described in K.S.A. 58-4122
and amendments thereto, when the employment itself is contingent upon
the appraiser reporting a predetermined estimate, analysis or opinion, or
when the fee to be paid is contingent upon the opinion, conclusion or
valuation reached, or upon the consequences resulting from the appraisal
assignment;

(11) violating the confidential nature of governmental records to

148             1997 Session Laws of Kansas             Ch. 48

which the appraiser gained access through employment or engagement
as an appraiser by a governmental agency; or

(12) entry of a final civil judgment against the person on grounds of
fraud, misrepresentation or deceit in the making of any appraisal of real
property.;

(13) disciplinary action in relation to appraisal work, including, but
not limited to, denial, revocation or suspension of a license or certificate
by another state, district or territory of the United States or another coun-
try; or

(14) receipt of an order of prohibition in relation to appraisal work,
by consent or otherwise, issued by an agency of the federal government.

(b) In addition to or in lieu of any other administrative, civil or crim-
inal remedy provided by law, the board upon a finding that a state cer-
tified or licensed appraiser has violated any provision of this act or of any
rules and regulations adopted hereunder, may impose upon such ap-
praiser a civil fine not exceeding $1,000 for each violation. All moneys
collected by the board from such fines shall be remitted to the state
treasurer at least monthly. Upon receipt thereof, the state treasurer shall
deposit the entire amount in the state treasury and credit it to the state
general fund.

(c) In a disciplinary proceeding based upon a civil judgment, the ap-
praiser shall be afforded an opportunity to present matters in mitigation
and extenuation but may not collaterally attack the civil judgment.

(d) All administrative proceedings pursuant to this section shall be
conducted in accordance with the Kansas administrative procedure act.

Sec. 2. K.S.A. 58-4123 is hereby amended to read as follows: 58-
4123. (a) A state certified or licensed appraiser shall retain for five years
originals or true copies of all written contracts engaging the appraiser's
services for real property appraisal work and all reports and supporting
data assembled and formulated by the appraiser in preparing the reports.

(b) The five-year period for retention of records is applicable to each
engagement of the services of the appraiser and shall commence upon
the date of the submittal of the appraisal to the client unless, within such
five-year period, the appraiser is notified that the appraisal or report is
involved in litigation, in which event the five-year period for the retention
of records shall commence upon the date of the final disposition of such
litigation.

(c) All records required to be maintained under the provisions of this
act shall be made available by the appraiser for inspection and copying
by the board on reasonable notice to the appraiser.

(d) The application for or acceptance of a license or certificate shall
be deemed conclusively to be the consent of the applicant, licensee or
certificate holder to the right of inspection of appraisal records, reports
and supporting data by the board or the board's authorized representa-

Ch. 48             1997 Session Laws of Kansas             149

tive, upon prior notice which shall not be less than three days, during
normal business hours unless otherwise agreed. Each applicant or ap-
praiser shall grant full access to all appraisal records, reports and sup-
porting data which pertain to the application process or to a complaint
investigation. Such inspection may be conducted by the board or the
board's representative. Refusal of such inspection shall be grounds for
denial, suspension or revocation of the license or certificate.

Sec. 3. K.S.A. 58-4118 and 58-4123 are hereby repealed.

Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 4, 1997.