SB339 Alabama 2019 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2019

Title

Real Estate Appraisers Board, evaluations of property for financial institutions authorized by federal financial institutions regulatory agencies, excluded from regulation by the board, investigators employed by board authorized to be licensees, Secs. 34-27A-2, 34-27A-3, 34-27A-5, 34-27A-23 am'd.

Summary

SB 339 allows licensed Alabama real estate appraisers to perform evaluations for federal banking transactions that do not require a full appraisal, removing those evaluations from the board’s regulation and letting board investigators be licensed appraisers.

What This Bill Does

It defines 'evaluation' as a property valuation used in lending that does not require a formal appraisal and says these evaluations would be governed by federal law and FFIEC guidelines, not the Alabama Real Estate Appraisers Board. Evaluations performed by licensed appraisers for federally regulated institutions would not be governed by Chapter 27A of the board. Evaluations must include the label 'This is not an appraisal,' and the board would not regulate these evaluations. The bill also allows an investigator employed by the board to be a licensee and preserves exemptions from Chapter 27A for certain activities like real estate market analyses and other evaluations not requiring an appraisal.

Who It Affects

• Licensed Alabama real estate appraisers would be able to perform evaluations for federally regulated lending transactions that do not require an appraisal, with those evaluations governed by federal law rather than state board rules.
• The Alabama Real Estate Appraisers Board and its investigators would see a shift in regulatory scope for evaluations, with investigators potentially becoming board licensees and evaluations falling outside Chapter 27A in favor of federal guidelines.

Key Provisions

• Adds a definition of 'evaluation' as a real estate valuation for lending institutions that do not require an appraisal and allows licensed appraisers to perform these evaluations.
• Evaluations for federally related transactions would be governed by federal law and rules from federal financial institution regulatory agencies, not by the Alabama Real Estate Appraisers Board or its Chapter 27A rules.
• Evaluations must include the statement 'This is not an appraisal' and are not subject to board regulation; USPAP applies to appraisals, while evaluations follow interagency guidelines.
• The board may have investigators who contract with the board be practicing licensees, expanding who can hold a license while performing board duties.
• The bill preserves exemptions from Chapter 27A for activities such as real estate market analyses by brokers or salespersons and other evaluations where an appraisal is not required, and it imposes Class A misdemeanor penalties for violations of the described provisions.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Real Estate Appraisers Board