AN ACT relating to real property appraisers.

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AN ACT relating to real property appraisers. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 324A.010 is amended to read as follows: 3
As used in KRS 324A.010 to 324A.100[324A.090], unless the context requires 4
otherwise: 5
(1) "Appraisal" means an oral, written, or electronic communication of any type or 6
nature which is independently and impartially prepared by a licensed or certified 7
appraiser setting forth an analysis, opinion, or conclusion relating to the nature, 8
quality, value, or utility of specified interests in, or aspects of, identified real 9
property[estate], as of a specified date, for or in expectation of compensation; 10
(2) "Appraisal assignment" means an engagement for which an appraiser is employed 11
or retained to act, or would be perceived by other parties or the public as acting, as 12
a third party in rendering an unbiased real property[estate] appraisal; 13
(3) "Appraisal management company" has the same meaning as in Section 21 of 14
this Act; 15
(4) "Appraisal report" means any communication, written, oral, or electronic conveying 16
a real property[estate] appraisal, and all other reports communicating an appraisal 17
analysis, opinion, or conclusion; 18
(5)[(4)] "Board" means the Real Property[Estate] Appraisers Board created in[under] 19
KRS 324A.015; 20
(6)[(5)] "Certificate holder or licensee" means a person certified or licensed by the 21
board under this chapter; 22
(7) "Evaluation" means an estimate of the market value of real property provided to 23
a financial insti tution in accordance with the federal interagency appraisal and 24
evaluation guidelines published by the federal financial institutions regulatory 25
agencies for use in a real property -related financial transaction for which an 26
appraisal by a licensed or certified appraiser is not required by federal law; 27
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(8) "Federally related transaction" means any real property -related financial 1
transaction that: 2
(a) A federal financial institution's regulatory agency engages in, contracts for, 3
or regulates; and 4
(b) Requires the services of an appraiser; 5
(9)[(6)] "Real [estate" or "real ] property" means real estate in its ordinary meaning 6
and includes any leasehold or other estate or interest in, over, or under land, 7
including leaseholds, all appurtenances and improvements t hereto, and may include 8
personal property which is integral to the use of the real property as appraised; 9
(10) "Real property-related financial transaction" means any transaction involving: 10
(a) The sale, lease, purchase, or exchange of or investment in rea l property, 11
including interests in real property, or the financing of real property; 12
(b) The refinancing of real property or interests in real property; or 13
(c) The use of real property or interests in property as security for a loan or 14
investment, including mortgage-backed securities; and 15
(11)[(7)] "Uniform Standards of Professional Appraisal Practice" or "USPAP" means 16
the standards of practice promulgated by the Appraisal Standards Board of the 17
Appraisal Foundation[; and 18
(8) "Federally related transaction" means any real estate related financial transaction 19
that: 20
(a) A federal financial institution's regulatory agency engages in, contracts for, or 21
regulates; and 22
(b) Requires the services of an appraiser]. 23
SECTION 2. A NE W SECTION OF KRS 324A.010 TO 324A.100 IS 24
CREATED TO READ AS FOLLOWS: 25
Notwithstanding any statutory provision to the contrary: 26
(1) An action for damages, whether brought in contract or tort, or on any other basis, 27
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against a certified or licensed real proper ty appraiser or appraisal management 1
company shall be brought within one (1) year after the date the appraisal report 2
has been completed and transmitted to the client; 3
(2) An action for fraud or knowing and intentional misrepresentation brought 4
against a c ertified or licensed real property appraiser or appraisal management 5
company shall be brought within five (5) years; and 6
(3) An action for a discriminatory housing practice brought against a certified or 7
licensed real property appraiser or appraisal manage ment company shall be 8
brought no later than one (1) year after occurrence or within the time provided by 9
federal law. 10
Section 3. KRS 324A.015 is amended to read as follows: 11
(1) There is hereby created an independent agen cy of state government to be known 12
as the[a] Real Property[Estate] Appraisers Board, which shall be attached to the 13
Department of Professional Licensing for administrative purposes. The board 14
shall consist [consisting ]of seven (7)[five (5)] members, two (2) of whom shall be 15
certified general real property[estate] appraisers, two (2) of whom shall be certified 16
residential real property appraisers, one (1) of whom shall represent the public and 17
shall not be associated with or financially inter ested in the practice of real 18
property[estate] appraisals, and two (2) of whom shall be employed in the lending 19
industry. The board shall administer [ the provisions of] this chapter and may 20
promulgate administrative regulations necessary to effectuate [ the provisions of] 21
KRS 324A.010 to 324A.100[324A.090]. 22
(2) (a) The board members shall be appointed by the Governor. Not more than one 23
(1) board member shall be from any one (1) county within Kentucky. 24
Members shall be appointed by the Governor for staggered terms of three (3) 25
years. No person shall serve more than two (2) full consecutive terms. 26
(b) Any member appointed to fill a vacancy occurring other than by expiration of 27
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a term shall be appointed for the remainder of the unexpired term. 1
(c) No more than four (4) [three (3)] members of the same political party shall 2
serve on the board at the same time. 3
(3) The appraiser appointees to the board shall be certified and shall have engaged in 4
the appraisal of real property[estate] in Kentucky on a c ontinuing basis for at least 5
ten (10) years. 6
(4) A board member shall be automatically removed from the board and a vacancy 7
shall occur when: 8
(a) An appraiser member of the board ceases to be certified; 9
(b) A consumer member of the board acquires a certification as an appraiser; 10
(c) A lending industry member ceases to be employed in the lending industry; 11
(d) A board member enters a plea of guilty to, or has been found guilty of, a 12
felony and the time for appeal has passed or the judgment of conviction has 13
been finally affirmed on appeal; 14
(e) A board member ceases to be a bona fide resident of the Commonwealth of 15
Kentucky; 16
(f) A board member displays incompetence, neglect of duty, or unprofessional 17
conduct; 18
(g) A board member fails to adhere to a duly adopted code of ethics of the board. 19
Failure to adhere to this code shall be determined by official action of the 20
board; or 21
(h) A board member misses three (3) consecutive meetings or misses more than 22
twenty-five percent (25%) of the meetings held over the previo us twelve (12) 23
month period. 24
(5) The board shall adopt a seal with the design it prescribes, by which it shall 25
authenticate its proceedings. Copies of all records and papers in the office of the 26
board, duly certified and authenticated by the seal of the bo ard, shall be received in 27
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evidence in all courts equally and with like effect as the original. All records kept in 1
the office of the board under the authority of this chapter shall be open to public 2
inspection in accordance with KRS 61.820 to 61.884 and co nsistent with 3
administrative regulations promulgated[prescribed] by the board. 4
(6) The Governor shall set the compensation of the members of the board, but voting 5
members of the board shall be compensated no more than three hundred dollars 6
($300) per day for official business, subject to an annual maximum of six thousand 7
dollars ($6,000). Members shall be reimbursed for all expenses paid and incurred in 8
the discharge of official business consistent with the reimbursement policy for state 9
employees[. With th e approval of the director of the Division of Real Property 10
Boards within the Department of Professional Licensing, board members and board 11
staff may attend and travel to and from meetings and events relevant to the board or 12
the industry the board represents]. 13
(7) (a) The board shall ensure that those employed to investigate grievances filed 14
with the board or to conduct an appraisal review are state-certified [general 15
]appraisers with: 16
1. A minimum of ten (10)[five (5)] years of experience; 17
2. A credential that is equal to or exceeds the credential held by the 18
appraiser under investigation or appraisal review; and 19
3. Demonstrated experience in appraising the type of property relevant to 20
the investigation or appraisal review. 21
(b) Any investigation or appraisa l review conducted without the experience 22
required in paragraph (a)2. and 3. of this subsection may be challenged to 23
the board by the appraiser under investigation or review. 24
Section 4. KRS 324A.020 is amended to read as follows: 25
(1) The board shall have authority to promulgate administrative regulations in 26
accordance with KRS Chapter 13A [ and following review of the director of the 27
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Division of Real Property Boards] , have subpoena power, hold disciplinary 1
hearings, conduc t examinations, conduct educational seminars that are not 2
applicable to continuing education hours , investigate allegations of wrongdoing 3
under this chapter, seek and obtain injunctive relief to enforce the provisions of 4
KRS 324A.010 to 324A.100[324A.090], provide a list of certified appraisers to the 5
Appraisal Subcommittee of the Federal Financial Institutions Examination Council, 6
and perform[ such] other functions and duties as may be necessary in carrying out [ 7
the provisions of] KRS 324A.010 to 324A.100[324A.090]. 8
(2) (a) The board shall investigate every alleged violation of this chapter coming to 9
its notice by the complaint procedure in Section 9 of this Act and shall take 10
action as it deems appropriate within its authority under this chapter. 11
(b) 1. The Attorney General, Commonwealth's attorneys, and county 12
attorneys shall assist the board in all actions relating to violations of 13
this chapter as requested by the board. 14
2. The board may refer violations of this chapter to the Attorney General, 15
Commonwealth's attorneys, and county attorneys to institute criminal 16
or civil proceedings in the name of the Commonwealth for a violation 17
of this chapter. 18
(3) (a) The board may: 19
1. Employ an executive director and any other persons it deems 20
necessary to carry on the work of the board, and shall prescribe their 21
duties and fix their salaries; and 22
2. Obtain office space, utilities, furniture, supplies, and other goods and 23
services as it deems necessary to carry on the work of the board. 24
(b) Each executive director assuming office on or after the effective date of this 25
Act, shall be a certified general or residential real property appraiser and 26
shall not have less than ten (10) years of e xperience as an appraiser within 27
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the Commonwealth. 1
(4) The board may utilize hearing officers provided by the Attorney General's Office 2
in accordance with KRS 13B.030. 3
(5) (a) The board or its authorized agents may give a licensed or certified appraiser 4
advice on best practices management. 5
(b) Notwithstanding any other provision of law to the contrary, legal action 6
shall not arise from any advice given relating to best practices management 7
by the board or its authorized agents. 8
Section 5. KRS 324A.025 is amended to read as follows: 9
(1) The board shall elect a chair[chairman] each year at the first meeting called after 10
appointment of new members. A majority of the board shall constitute a quorum 11
and may exercise all powers and duties established in[by the provisions of] KRS 12
324A.020. 13
(2) The board shall meet at least once each calendar quarter. Additional meetings may 14
be held upon call of the chair or upon the written request of two (2) members of 15
the board. 16
Section 6. KRS 324A.030 is amended to read as follows: 17
(1) It shall be unlawful, unless certified or licensed by the board, for any person to: 18
(a) Assume or use any title, designation, or abbreviation likely to create the 19
impression that he or she holds a license or certificate issued by the board; 20
(b) Describe or refer to any appraisal or evaluation of real property[estate] by the 21
term, "state certified," "state licensed," or words of substantially similar 22
meaning;[ or] 23
(c) Assume or us e any title, designation, or abbreviation likely to create the 24
impression of certification or licensure by the state as a real property[estate] 25
appraiser firm, partnership, or corporation; or 26
(d) Use the title "real property appraiser," "real estate apprai ser," "real 27
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property damage appraiser," or "appraiser" in relation to real property or 1
federally related transactions. 2
(2) A certificate holder or licensee shall not assume or use any title, designation, or 3
abbreviation likely to create the impression of certification or licensure by the board 4
other than the correct type of certification or licensure. 5
(3) Each certificate holder or licensee who is a resident of Kentucky shall have and 6
maintain a definite place of business in this state, a current email[e-mail] address, 7
and a current telephone number. A nonresident is not required to maintain an active 8
place of business in this state if a definite place of business is maintained in the 9
state where the nonresident resides. A nonresident shall maintain a curren t email[e-10
mail] address and a current telephone number. 11
(4) Failure by a certificate holder or licensee to notify the board of any change of 12
business address, change of company name, change of surname, change of phone 13
number, or change of email[e-mail] address within thirty (30) days of the change 14
shall result in a penalty not to exceed two hundred dollars ($200). 15
(5) In the case of the death of a certificate holder or licensee, the board may [, in its 16
sound discretion,] permit a suitable individual to compl ete the affairs and appraisal 17
assignments of the deceased. 18
(6) For any employee of the Transportation Cabinet whose job description includes real 19
property[estate] appraisals which require certification, the Transportation Cabinet 20
shall bear the costs of in itial application, examination, continued education, and 21
biennial[annual] renewal. 22
(7) (a) Those Transportation Cabinet employees serving as right -of-way agents or 23
supervisors, who actually perform on -site appraisals as part of their job 24
descriptions and w ho have obtained an appraiser certification under [ the 25
provisions of] KRS 324A.010 to 324A.100[324A.090], shall receive a five 26
percent (5%) salary increase effective January 1 following certification [. 27
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Those right-of-way agents or supervisors who received certification prior to 1
January 1, 1991, shall receive the salary increase effective January 1, 1991]. 2
(b) The salary increase[increases] provided [for ]in paragraph[subsection] (a) of 3
this subsection[section] shall be made within existing Transportation Cabinet 4
appropriations. 5
(8) A person shall not provide appraisal, appraisal review, or appraisal consulting 6
assignments or perform any of the duties usually performed by a licensed or 7
certified real property appraiser for a federally related transaction unless the person 8
at the time holds a license or certification of real property appraiser issued and 9
validly existing under the laws of the Commonwealth of Kentucky, as provided in 10
this chapter. 11
(9) (a) It shall be unlawful for any person not licensed or certified as a real 12
property appraiser by the board to provide any type of appraisal, appraisal 13
review, or appraisal consulting assignment or perform any of the duties 14
usually performed by a licensed or c ertified real property appraiser in the 15
Commonwealth of Kentucky. 16
(b) Paragraph (a) of this subsection shall not apply to: 17
1. Individuals who render professional assistance in arriving at a real 18
property analysis, opinion, or conclusion; 19
2. Mass appraisals for tax purposes; 20
3. A court appraisal directive; and 21
4. Transportation Cabinet employees in their professional capacity, 22
except for any employee of the Transportation Cabinet whose job 23
description requires certification. 24
(10) This chapter shall not prohibit a licensed or certified real property appraiser from 25
providing an evaluation. When providing an evaluation, a licensed or certified 26
real property appraiser shall: 27
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(a) Not indicate his or her status as a licensed or certified real property 1
appraiser; and 2
(b) Include the following disclaimer on the first page of the evaluation: 3
"This evaluation is not subject to compliance wit h the Uniform Standards 4
of Professional Appraisal Practice." 5
(11) This chapter shall not prohibit any person who is licensed to practice in this state 6
under any other law from engaging in the practice for which the person is 7
licensed. 8
(12) Except as otherw ise provided by federal law, this chapter shall not prohibit a 9
bank, banker, or institutions of the farm credit system organized under the Farm 10
Credit Act of 1971, 12 U.S.C. sec. 2001 et seq., as amended, from providing or 11
conducting an appraisal or appraisal review in the normal course of business. 12
(13) This chapter shall not apply to chattel, including but not limited to furniture, 13
livestock, vehicles, and jewelry. 14
(14) This chapter shall not apply to any of the following in the settlement of an 15
insurance claim: 16
(a) A staff adjuster, or an independent adjuster, licensed under KRS Chapter 17
304; or 18
(b) Any other representative of an insurance company. 19
(15) (a) An appraiser shall not negotiate, or advertise to negotiate, on behalf of any 20
insured on any insurance claim relating to real property. 21
(b) An appraiser may advocate for his or her appraisal report and the accuracy 22
of it. 23
Section 7. KRS 324A.045 is amended to read as follows: 24
(1) The board shall issue to each qualified applicant a certificate or license in form and 25
size as shall be prescribed by the board. 26
(2) Every certificate and license shall be subject to biennial[annual] renewal on the 27
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date or dates determined by the board by administrative regulation. Each certifi cate 1
and license holder shall submit proof of compliance with the biennial continuing 2
education requirements when appropriate and the biennial[annual] renewal fee to 3
the board on or before the last day of the designated month. Failure to receive a 4
renewal form shall not constitute an adequate excuse for failure to renew on time. 5
(3) If the certificate or license holder fails to renew in a timely manner, the certificate 6
or license shall expire. Within six (6) months after the renewal date, the former 7
certificate or license holder [ ] shall be reinstated by complying with all appropriate 8
renewal requirements and paying a late fee in an amount to be determined by the 9
board through an administrative regulation promulgated in accordance with KRS 10
Chapter 13A[not to exceed two hundred dollars ($200)]. 11
(4) If six (6) months or more elapse after the renewal date, the former certificate or 12
license holder shall be required to meet all current requirements as if applying for 13
initial certification or licensure. 14
(5) (a) A l icensee who has initiated continuing education courses prior to the date 15
established through an administrative regulation promulgated by the board in 16
accordance with KRS Chapter 13A shall have five (5) days after the 17
established date to complete them. 18
(b) The board may not cancel a license for failure to complete continuing 19
education courses until ten (10) days after the date established by the board. 20
(6) (a) A certificate or license holder shall successfully complete at least twenty -21
eight (28) continuing education hours for the biennial license period. 22
(b) 1. The hours completed for one (1) USPAP update course shall apply 23
toward the continuing education requirement each biennial license 24
period. 25
2. a. The most recent USPAP update course shall be completed within 26
the first six (6) months of a biennial license period or if it is not 27
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available within the first six (6) months, upon immediate 1
availability. 2
b. If a second USPAP update course becomes available within the 3
same biennial license period, the second may be completed upon 4
immediate availability but the hours completed shall apply to the 5
succeeding biennial license period. 6
Section 8. KRS 324A.047 is amended to read as follows: 7
(1) (a) Upon written request, any certificate holder or licensee may request to place 8
his or her certificate or license in inactive status for a period not to exceed 9
three (3) years. 10
(b) The written request shall be made by completing a signed and sworn affidavit 11
on a form approved by the board. 12
(c) The board may require a fee in an amount to be determined by the board 13
through an administrative regulation promulgated in accordance with KRS 14
Chapter 13A[of fifty dollars ($50)] for each change in s tatus of the certificate 15
holder or licensee. 16
(d) A license issued to an individual as an associate real property appraiser shall 17
not be eligible for inactive status. 18
(2) No inactive status certificate holder or licensee shall: 19
(a) Assume or use any title, designation, or abbreviation likely to create the 20
impression that he or she holds a certificate or license issued by the board; 21
(b) Describe or refer to any appraisal or evaluation of real property[estate] by the 22
term, "state certified," "state licensed," or words of substantially similar 23
meaning; or 24
(c) Prepare real property[estate] appraisals for federally related transactions 25
which, under Title XI of the Financial Institutions Reform, Recovery, and 26
Enforcement Act of 1989, require the services of a state -certified or state -27
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licensed appraiser. 1
(3) To return to active status, a certificate holder or licensee shall: 2
(a) Petition the board for reactivation of the certificate or license; 3
(b) Pay the applicable renewal fee and roster fee required by this chapter; and 4
(c) 1. Provide evidence of completion of the biennially[annually] required 5
continuing education hours, as established by the board and promulgated 6
in administrative regulations, if in inactive status for two (2) or more 7
years; or[for each year of inactive status] 8
2. a. Provide evidence of completion of at least half of the required 9
continuing education hours, as established by the board and 10
promulgated in administrative regulations, if in inactive status 11
for less than two (2) years. 12
b. If providing e vidence of half of the required continuing 13
education hours, once the certificate holder or licensee returns 14
to active status the remaining continuing education hours shall 15
be completed within six (6) months. 16
(4) A certificate holder or licensee who petitio ns to return to active status after an 17
inactive period exceeding three (3) years shall be required to meet all the 18
requirements for original issuance of a license or certificate under this chapter. 19
(5) Violation of subsection (2) of this section shall be g rounds for disciplinary action 20
under this chapter. 21
Section 9. KRS 324A.052 is amended to read as follows: 22
(1) Any person or organization, including the board upon its own volition, may file 23
with the board a written complaint alleging a violation of any provision of this 24
chapter. Complaints shall be filed with the board within [: 25
(a) ]one (1) year [Five (5) years] after the date of transmittal of the appraisal report or 26
appraisal review assignment.[; or 27
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(b) Two (2) years after the final disposition of any judicial proceeding in which the 1
appraiser provided testimony related to the assignment, whichever expires last. 2
Paragraphs (a) and (b) of] This subsection shall not apply to complaints involving 3
the actions outlined in KRS 324A.050(1)(c), (d), (g), and (k). The board shall 4
investigate each complaint. 5
(2) If the investigation reveals evidence supporting the complaint, the board shall set 6
the matter for hearing in accordance with the provisions of KRS Chapter 13B 7
before fining, reprimanding, suspending, revoking, refusing to renew, or any 8
combination thereof. 9
(3) If the investigation reveals that the alleged violation did occur but was not of a 10
serious nature, the board may issue a written admonishment to the certificate holder 11
or licensee. A copy of the admonishment shall be placed in the recipient's file wi th 12
the board. The recipient shall have the right to file a response to the admonishment 13
within thirty (30) days of its receipt and have the response placed in the file. The 14
recipient may, alternatively, within thirty (30) days of the receipt, file a reques t for 15
hearing with the board. Upon receipt of this request, the board shall set aside the 16
written admonishment and set the matter for hearing in accordance with [the 17
provisions of] KRS Chapter 13B. 18
(4) After denying an application for a certificate or license or issuing an admonishment, 19
the board shall grant an administrative hearing in accordance with KRS Chapter 20
13B only upon written request of the applicant made within thirty (30) days of the 21
mailing of the letter of denial or admonishment[. 22
(5) Pursuant to KRS 13B.120(7), the director of the Division of Real Property Boards 23
within the Department of Professional Licensing shall hear and issue a final order 24
regarding a decision of the board. An aggrieved party may appeal a final order of 25
the director pursuant to KRS Chapter 13B within thirty (30) days after the issuance 26
of the order to the Circuit Court of the county where the licensee has his or her 27
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principal place of business or where the license applicant resides]. 1
Section 10. KRS 324A.065 is amended to read as follows: 2
(1) The board shall establish by administrative regulation the fee amounts for all fees 3
required by this section and the fees for services provided by the board, which 4
shall not exceed amounts necessary to generate sufficient funds to effectively 5
carry out and enforce this chapter. The board shall establish and collect the 6
following fees for certification or licensure as an appraiser for: 7
(a) Federally related transactions: 8
1. Initial application fee [ in an amount not to exceed two hundred dollars 9
($200)]; 10
2. Examination fee [ in an amount not to exceed two hundred dollars 11
($200)]; 12
3. a. A biennial [An annual] certificate or licensure fee [ in an amount 13
not to exceed two hundred dollars ($200)]; 14
b. Duplicate certificate fee [ in an amount not to exceed ten dollars 15
($10)]; and 16
c. Certificate correction fee [ in an amount not to exceed ten dollars 17
($10)]; 18
4. Roster fee[ not to exceed fifty dollars ($50)]; and 19
5. Returned check fee[ not to exceed fifty dollars ($50)]; and 20
(b) Nonfederally related transactions: 21
1. A biennial[An annual] certificate or licensure renewal fee[ in an amount 22
not to exceed one hundred dollars ($100)]; and 23
2. Certificate correction fee[ in an amount not to exceed five dollars ($5)]. 24
(2) The board shall, through the promulgation of an administrative regulation, establish 25
and collect the following fees from education providers for review and approval of 26
prelicensure and continuing education courses offered by education providers for 27
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licensure as an appraiser: 1
(a) [For ]Prelicensure education course review[, a] fee[ not to exceed one hundred 2
dollars ($100)]; and 3
(b) [For ]Continuing education course review [, a] fee[ not to exceed fifty dollars 4
($50)]. 5
(3) (a) All fees and charges collected by the board under [ the provisions of] this 6
chapter shall be paid into the Real Property[Estate] Appraisers Board's trust 7
and agency account in the State Treasury. 8
(b) All expenses incurred by the board under [the provisions of ] this chapter, 9
including compensation to the board members and staff, shall be paid out of 10
this account, subject to approval of the board. 11
(c) [The provisions of ]This subsection shall not apply to the fee charged pursuant 12
to KRS 324A.155, which is required to be included in the appraisal 13
management company recovery fund and which shall be paid into that fund. 14
Section 11. KRS 324A.154 is amended to read as follows: 15
The board shall promulgate administrative regulations [,] in accordance with KRS 16
Chapter 13A to establish [and following review of the director of the Division of Real 17
Property Boards, establishing] a reasonable filing fee to be paid by each appraisal 18
management company seeking registration under KRS 324A.152. The filing fee shall 19
include the annual fee for inclusion in the national registry maintained by the Appraisal 20
Subcommittee of the Federal Financial Institutions Examination Council. 21
Section 12. KRS 324B.045 is amended to read as follows: 22
(1) (a) The Division of Real Property Boards is hereby created within the 23
Department of Professional Licensing and shall include the: 24
1. Kentucky Board of Home Inspectors, established under KRS 198B.704; 25
and 26
2. [Real Estate Appraisers Board, established under KRS 324A.015; and 27
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3. ]Board of Auctioneers, established under KRS 330.050. 1
(b) The Division of Real Property Boards shall be managed by a director, who 2
shall be appointed by the secretary of the Public Protection Cabinet with prior 3
written approval of the Governor. The director shall be exempted from the 4
classified service. 5
(c) The Division of Real Property Boards may: 6
1. Provide appropriate attorneys, personnel staffing, and admin istrative 7
support to the real property boards identified in paragraph (a) of this 8
subsection; 9
2. Establish and maintain an office, meeting space, office supplies, 10
furniture, storage space, and any other supplies that are necessary to 11
carry out the duties of the Division of Real Property Boards and the real 12
property boards identified in paragraph (a) of this subsection; 13
3. Make available for public inspection all decisions, opinions, and 14
interpretations formulated or used by the division and the real propert y 15
boards identified in paragraph (a) of this subsection in discharging their 16
functions; 17
4. Publicize the functions and purposes of the Division of Real Property 18
Boards and the real property boards identified in paragraph (a) of this 19
subsection; 20
5. Employ a dministrative coordinators who shall carry out the 21
administrative functions and day -to-day operations of the real property 22
boards identified in paragraph (a) of this subsection. The maximum 23
number of administrative coordinators shall be one (1) for each re al 24
property board. These administrative coordinators shall be exempted 25
from the classified service; and 26
6. Enter into agreements with any state agency, political subdivision of the 27
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state, postsecondary education institution, or other person or entity to 1
assist with implementation of the duties and responsibilities of the 2
Division of Real Property Boards or, upon request, the real property 3
boards identified in paragraph (a) of this subsection. 4
(2) The director of the Division of Real Property Boards shall: 5
(a) Provide oversight of the Division of Real Property Boards; 6
(b) Review and provide feedback on any administrative regulation proposed by 7
any of the boards within the Division of Real Property Boards prior to the 8
promulgation of the administrative regulation; 9
(c) Review and provide feedback on the budgets and expenditures of the boards 10
within the Division of Real Property Boards; 11
(d) Submit written recommendations to the secretary of the Public Protection 12
Cabinet concerning sufficient staffing needs and re levant experience 13
necessary to assist in carrying out the mission and function of the Division of 14
Real Property Boards; 15
(e) Pursuant to KRS 13B.120(7), automatically hear and issue a final order 16
regarding any decision of a real property board that would ot herwise be 17
subject to appeal. An aggrieved party may appeal a final order of the director 18
pursuant to KRS Chapter 13B within thirty (30) days after the issuance of the 19
order to the Circuit Court of the county where the party has his or her 20
principal place of business or where the party resides; 21
(f) Make available for public inspection all decisions, opinions, and 22
interpretations formulated or used by the director in discharging his or her 23
functions; 24
(g) Carry out the applicable policy and program directives of the department; 25
(h) Prepare annual reports on the director's activities; 26
(i) Delegate any power to employees and contractors as needed; 27
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(j) Have a minimum of seven (7) years of experience in the real estate industry 1
within the last fifteen (15) years; and 2
(k) Perform all other duties assigned by law. 3
(3) The secretary of the Public Protection Cabinet shall: 4
(a) Consider the staffing recommendations and requests submitted by the director 5
of the Division of Real Property Boards; and 6
(b) Provide the Division of Real Property Boards with documentation showing 7
the income and expenditures of all license fees. 8
Section 13. KRS 133.120 is amended to read as follows: 9
(1) (a) Any taxpayer desiring to appeal an assessment on real property made by the 10
property valuation administrator shall first request a conference with the 11
property valuati on administrator or his or her designated deputy. The 12
conference shall be held prior to or during the inspection period provided for 13
in KRS 133.045, or during an extension granted under subsection (2)(d) of 14
this section. 15
(b) 1. Any person receiving compens ation to represent a property owner at a 16
conference with the property valuation administrator for a real property 17
assessment shall be: 18
a. An attorney; 19
b. A certified public accountant; 20
c. A tax consultant[certified real estate broker]; 21
d. A Kentucky licensed real estate broker or sales associate; 22
e. An employee of the property owner; 23
f. A licensed or certified Kentucky real property[estate] appraiser; 24
g. An appraiser who possesses a temporary practice permit or 25
reciprocal license or certification in Kentuck y to perform 26
appraisals and whose license or certification requires him or her to 27
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conform to the Uniform Standards of Professional Appraisal 1
Practice; or 2
h. Any other individual possessing a professional appraisal 3
designation recognized by the department. 4
2. A person representing a property owner before the property valuation 5
administrator shall present written authorization from the property 6
owner which sets forth his or her professional capacity and shall 7
disclose to the property valuation administrator a ny personal or private 8
interests he or she may have in the matter, including any contingency 9
fee arrangements, except that attorneys shall not be required to disclose 10
the terms and conditions of any contingency fee arrangement. 11
(c) During this conference, the property valuation administrator or his or her 12
deputy shall provide an explanation to the taxpayer of the constitutional and 13
statutory provisions governing property tax administration, including the 14
appeal process, as well as an explanation of the proc edures followed in 15
deriving the assessed value for the taxpayer's property. 16
(d) The property valuation administrator or his or her deputy shall keep a record 17
of each conference which shall include but not be limited to the initial 18
assessed value, the value claimed by the taxpayer, an explanation of any 19
changes offered or agreed to by each party, and a brief account of the outcome 20
of the conference. 21
(e) At the request of the taxpayer, the conference may be held by telephone. 22
(2) (a) Any taxpayer still aggrie ved by an assessment on real property made by the 23
property valuation administrator after complying with the provisions of 24
subsection (1) of this section may appeal to the board of assessment appeals. 25
(b) The taxpayer shall appeal his or her assessment by f iling in person or sending 26
a letter or other written petition to the county clerk stating the reasons for 27
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appeal, identifying the property for which the appeal is filed, and stating the 1
taxpayer's opinion of the fair cash value of the property. 2
(c) The app eal shall be filed no later than one (1) workday following the 3
conclusion of the inspection period provided for in KRS 133.045 or no later 4
than the last day of an extension granted under paragraph (d) of this 5
subsection. 6
(d) A property valuation administra tor may make a written request to the 7
department to extend the deadline in his or her county of jurisdiction to allow 8
the completion of the conferences requested during the inspection period 9
required by subsection (1)(a) of this section and to extend the f iling deadline 10
for appeals to the board of assessment appeals. If approved by the department, 11
the deadline for the completion of the conferences requested during the 12
inspection period and filing appeals shall be extended for a period not to 13
exceed twenty-five (25) days from the date of the original filing deadline. 14
(e) The county clerk shall notify the department of all assessment appeals and of 15
the date and times of the hearings. 16
(f) The board of assessment appeals may review and change any assessment 17
made by the property valuation administrator upon recommendation of the 18
county judge/executive, mayor of any city using the county assessment, or the 19
superintendent of any school district in which the property is located, if the 20
recommendation is made to the board in writing specifying the individual 21
properties recommended for review and is made no later than one (1) work 22
day following the conclusion of the inspection period provided for i n KRS 23
133.045, or no later than the last day of an extension granted under paragraph 24
(d) of this subsection, or upon the written recommendation of the department. 25
If the board of assessment appeals determines that the assessment should be 26
increased, it sha ll give the taxpayer notice in the manner required by [ 27
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subsection (4) of] KRS 132.450(4), specifying a date when the board will hear 1
the taxpayer, if he or she so desires, in protest of an increase. 2
(g) Any real property owner who has listed his or her pro perty with the property 3
valuation administrator at its fair cash value may ask the county board of 4
assessment appeals to review the assessments of real properties he or she 5
believes to be assessed at less than fair cash value, if he or she specifies in 6
writing the individual properties for which the review is sought and factual 7
information upon which his or her request is based, such as comparable sales 8
or cost data and if the request is made no later than one (1) work day 9
following the conclusion of the in spection period provided for in KRS 10
133.045, or no later than the last day of an extension granted under paragraph 11
(d) of this subsection. 12
(h) Nothing in this section shall be construed as granting any property owner the 13
right to request a blanket review o f properties or the board the power to 14
conduct such a review. 15
(3) (a) The board of assessment appeals shall hold a public hearing for each 16
individual taxpayer appeal in protest of the assessment by the property 17
valuation administrator filed in accordance w ith the provisions of subsection 18
(2) of this section, and after hearing all the evidence, shall fix the assessment 19
of the property at its fair cash value. 20
(b) The department may be present at the hearing and present any pertinent 21
evidence as it pertains to the appeal. 22
(c) The taxpayer shall provide factual evidence to support his or her appeal. If the 23
taxpayer fails to provide reasonable information pertaining to the value of the 24
property requested by the property valuation administrator, the department, or 25
any member of the board, his or her appeal shall be denied. 26
(d) This information shall include but not be limited to the physical 27
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characteristics of land and improvements, insurance policies, cost of 1
construction, real estate sales listings and contracts, income and expense 2
statements for commercial property, and loans or mortgages. 3
(e) The board of assessment appeals shall only hear and consider evidence which 4
has been submitted to it in the presence of both the property valuation 5
administrator or his or her designated deputy and the taxpayer or his or her 6
authorized representative. 7
(4) (a) Any person receiving compensation to represent a property owner in an 8
appeal before the board shall be: 9
1. An attorney; 10
2. A certified public accountant; 11
3. A tax consultant[certified real estate broker]; 12
4. A Kentucky licensed real estate broker or sales associate; 13
5. An employee of the taxpayer; 14
6 A licensed or certified Kentucky real property[estate] appraiser; 15
7. An appraiser who possesses a temporary practice permit or reciprocal 16
license or certification in Kentucky to perform appraisals and whose 17
license or certification requires him or her to conform to the Uniform 18
Standards of Professional Appraisal Practice; or 19
8. Any other individual possessing a professional ap praisal designation 20
recognized by the department. 21
(b) A person representing a property owner before the county board of 22
assessment appeals shall present a written authorization from the property 23
owner which sets forth his or her professional capacity and s hall disclose to 24
the county board of assessment appeals any personal or private interests he or 25
she may have in the matter [, including any contingency fee arrangements, 26
except that attorneys shall not be required to disclose the terms and conditions 27
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of any contingency fee arrangement]. 1
(5) The board shall provide a written opinion justifying its action for each assessment 2
either decreased or increased in the record of its proceedings and orders required in 3
KRS 133.125 on forms or in a format provided or approved by the department. 4
(6) The board shall report to the property valuation administrator any real property 5
omitted from the tax roll. The property valuation administrator shall assess the 6
property and immediately give notice to the taxpayer in the manne r required by 7
KRS 132.450(4), specifying a date when the board of assessment appeals will hear 8
the taxpayer, if he or she so desires, in protest of the action of the property valuation 9
administrator. 10
(7) The board of assessment appeals shall have power to issue subpoenas, compel the 11
attendance of witnesses, and adopt rules and regulations concerning the conduct of 12
its business. Any member of the board shall have power to administer oaths to any 13
witness in proceedings before the board. 14
(8) The powers of the board of assessment appeals shall be limited to those specifically 15
granted by this section. 16
(9) No appeal shall delay the collection or payment of any taxes based upon the 17
assessment in controversy. The taxpayer shall pay all state, county, and district 18
taxes due on the valuation which he or she claims as true value and stated in the 19
petition of appeal filed in accordance with the provisions of subsection (1) of this 20
section. When the valuation is finally determined upon appeal, the taxpayer shall be 21
billed for any additional tax and interest at the tax interest rate as defined in KRS 22
131.010[(6)] from the date when the tax would have become due if no appeal had 23
been taken. The provisions of KRS 134.015(6) shall apply to the tax bill. 24
(10) Any member of the county board of assessment appeals may be required to give 25
evidence in support of the board's findings in any appeal from its actions to the 26
Board of Tax Appeals pursuant to KRS 49.220. Any persons aggrieved by a 27
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decision of the board, including the proper ty valuation administrator, taxpayer, and 1
department, may appeal the decision to the Board of Tax Appeals pursuant to KRS 2
49.220. Any taxpayer failing to appeal to the county board of assessment appeals, 3
or failing to appear before the board, either in per son or by designated 4
representative, shall not be eligible to appeal directly to the Board of Tax Appeals. 5
(11) The county attorney shall represent the interest of the state and county in all 6
hearings before the board of assessment appeals and on all appea ls prosecuted from 7
its decision. If the county attorney is unable to represent the state and county, he or 8
she or the fiscal court shall arrange for substitute representation. 9
(12) Taxpayers shall have the right to make audio recordings of the hearing befo re the 10
county board of assessment appeals. The property valuation administrator may 11
make similar audio recordings only if prior written notice is given to the taxpayer. 12
The taxpayer shall be entitled to a copy of the department's recording as provided in 13
KRS 61.874. 14
(13) The county board of assessment appeals shall physically inspect a property upon the 15
request of the property owner or property valuation administrator. 16
Section 14. KRS 154.60-040 is amended to read as follows: 17
(1) As used in this section: 18
(a) "Actively engaged farmer" means a person who makes a significant 19
contribution of: 20
1. Land, capital, and equipment to a farming operation; and 21
2. Active personal labor or management to a farming operation; 22
(b) 1. "Agricultural assets" means: 23
a. Agricultural land which has been appraised by an individual 24
certified by the Real Property[Estate] Appraisers Board created 25
under KRS 324A.015; and 26
b. Buildings, facilities, machinery, equipment, agricultural products, 27
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or horticultural products, if: 1
i. Owned by the same seller owning the agricultural land sold 2
to an actively engaged farmer or beginning farmer; 3
ii. Purchased at the same time and in the same transaction with 4
the agricultural land; and 5
iii. Purchased with the intent to be used on the purchased 6
agricultural land. 7
2. "Agricultural assets" does not mean: 8
a. A personal residence or any other residential structures; 9
b. Any agricultural assets that have been previously included in an 10
approved application for the Kentucky selling farmer tax credit; 11
and 12
c. Any land which has, is, or will be used in the production of solar 13
power for personal or commercial purposes; 14
(c) "Agricultural land" means: 15
1. Any land located entirely in Kentuck y that is zoned or permitted for 16
farming, if the jurisdiction where the land is located has enacted an 17
ordinance for zoning or permitting; and 18
2. a. Is a tract of land of at least ten (10) contiguous acres in area for a 19
farming operation for agricultural products; or 20
b. Is a tract of land of at least five (5) contiguous acres in area for a 21
farming operation for aquaculture or horticultural products; 22
owned by the seller prior to the sale; 23
(d) "Agricultural products" means: 24
1. Livestock or livestock products; 25
2. Poultry or poultry products; 26
3. Milk or milk products; or 27
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4. Field crops and other crops, including timber if approved by the 1
authority; 2
(e) "Aquaculture" means the farming of fish, crustaceans, mollusks, aquatic 3
plants, algae, or other similar organisms; 4
(f) "Beginning farmer" means an actively engaged farmer who has not previously 5
held an ownership interest in agricultural land used for a farming operation for 6
a period exceeding twenty (20) years prior to entering into an agreement to 7
purchase agricultural assets from a seller; 8
(g) "Buyer" means an actively engaged farmer or beginning farmer who 9
purchases agricultural assets from a seller; 10
(h) "Department" means the Department of Revenue [ organized under KRS 11
131.020]; 12
(i) "Farm product" means aquaculture, agricultural products, or horticultural 13
products; 14
(j) 1. "Farming operation" means the management and operation of 15
agricultural assets for th e purpose of pursuing a profitable commercial 16
business venture to produce agricultural products, horticultural products, 17
or both for sale. 18
2. "Farming operation" does not mean any: 19
a. Nonprofit venture; 20
b. Farm used primarily for storing agricultural produ cts or 21
horticultural products; or 22
c. Farm used to grow or raise agricultural products or horticultural 23
products primarily for use by the immediate family members or 24
owners of the agricultural assets; 25
(k) "Horticultural products" means orchards, fruits, veg etables, nuts, flowers, or 26
ornamental plants; 27
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(l) "Immediate family member" means any of the following in relation to any 1
owner or spouse of the owner of the agricultural assets: 2
1. Parent or grandparent; 3
2. Children or their spouses; or 4
3. Siblings or their spouses; 5
(m) "Seller" means any individual or entity subject to the tax imposed by KRS 6
141.020 or 141.040 and 141.0401; and 7
(n) "Significant contribution" has the same meaning as in 7 C.F.R. sec. 1400.3. 8
(2) Any incentive offered to an eligible company under the Selling Farmer Tax Credit 9
Program shall be negotiated by Cabinet for Economic Development officials and 10
shall be subject to approval by the authority. 11
(3) The purpose of the Selling Farmer Tax Credit Program is to promote the continued 12
use of agricultural land in Kentucky for farming purposes by granting a tax credit to 13
a seller who agrees to sell agricultural assets to an actively engaged farmer or a 14
beginning farmer. 15
(4) A seller wanting to sell agricultural assets may be eligible for a tax cred it up to five 16
percent (5%) of the selling price of qualifying agricultural assets, subject to: 17
(a) A twenty-five thousand dollar ($25,000) cap for each taxable year of the seller 18
when agricultural assets are sold to an actively engaged farmer who does not 19
meet the definition of a beginning farmer; 20
(b) A fifty thousand dollar ($50,000) cap for each taxable year of the seller when 21
agricultural assets are sold to a beginning farmer; 22
(c) A one hundred thousand dollar ($100,000) lifetime cap for each seller selling 23
to an actively engaged farmer; 24
(d) A two hundred thousand dollar ($200,000) lifetime cap for each seller selling 25
to a beginning farmer; and 26
(e) A proration by the authority based on the overall cap shared between the 27
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Small Business Tax Credit Program and the Selling Farmer Tax Credit 1
Program cap of three million dollars ($3,000,000) under KRS 154.60-020. 2
(5) The tax credit allowed in subsection (4) of this section may be claimed u nder KRS 3
141.3841. 4
(6) In order to be eligible to receive approval for a tax credit, the seller shall, at a 5
minimum: 6
(a) 1. a. Be registered with the Kentucky Secretary of State; and 7
b. Be in good standing with the Kentucky Secretary of State; or 8
2. If not required to be registered with the Kentucky Secretary of State, be 9
a taxpayer of Kentucky; 10
(b) Prior to a sale of agricultural assets, be a small business with fifty (50) or 11
fewer full-time employees and be the sole legal owner of agricultural assets 12
sold to an actively engaged farmer or a beginning farmer; 13
(c) Not be a farm equipment dealer, livestock dealer, or similar entity primarily 14
engaged in the business of selling agricultural assets for profit and not 15
engaged in farming as a primary business activity; 16
(d) Not be a bank or any other similar lending or financial institution; 17
(e) Not be: 18
1. An owner, partner, member, shareholder, or trustee; 19
2. A spouse of an owner, partner, member, shareholder, or trustee; or 20
3. An immediate family member of any of t he owners, partners, members, 21
shareholders, or trustees; 22
of the actively engaged farmer or beginning farmer to whom the seller is 23
seeking to sell agricultural assets; 24
(f) 1. Demonstrate management and operation of real and personal property 25
for the production of a farm product; and 26
2. Execute and effectuate a purchase contract to sell agricultural land with 27
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an actively engaged farmer or a beginning farmer for an amount 1
evidenced by an appraisal; and 2
(g) Sell, convey, and transfer ownership of related agric ultural assets to an 3
actively engaged farmer or a beginning farmer. 4
(7) In order for the seller to qualify for the tax credit, an actively engaged farmer or a 5
beginning farmer shall, at a minimum: 6
(a) 1. a. Be registered with the Kentucky Secretary of State; and 7
b. Be in good standing with the Kentucky Secretary of State; or 8
2. If not required to be registered with the Kentucky Secretary of State, be 9
a resident of Kentucky; 10
(b) Possess all licenses, registrations, and experience needed to legally operate a 11
farming operation within the jurisdiction for the agricultural land purchased 12
from a the seller; 13
(c) Not have an ownership interest in any of the agricultural assets included in the 14
transaction with the seller; and 15
(d) Provide a majority of the management, and materially participate in the 16
operation of a for-profit farming operation located in Kentucky and purchased 17
from a seller, with the intent to continue a for -profit farming operation on the 18
purchased agricultural la nd for a minimum of ten (10) years after the sale 19
date. 20
(8) The seller shall submit an application with all information necessary for the 21
authority to determine eligibility for the tax credit. 22
(9) The authority may consider applications prior to the consum mation of the sale, 23
transfer of title, and conveyance of agricultural assets. 24
(10) An application for the selling farmer tax credit shall contain, at a minimum, 25
information about the: 26
(a) Seller and buyer; 27
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(b) Purchase contract and closing statement; 1
(c) Documentation, such as a deed, title conveyance for the transfer of assets, 2
including verification of Kentucky residency of the buyer; and 3
(d) Any other information the authority may require to determine eligibility for 4
the credit. 5
(11) For each approved ap plication, the authority shall transmit to the department 6
sufficient information about the seller to ensure compliance with this section and 7
KRS 141.3841, including the amount of approved tax credit allowed to the seller. 8
(12) If the buyer fails to meet th e requirements of this section, the department shall 9
assess a penalty against the buyer in an amount equal to the tax credit awarded to 10
the seller. The department may assess an additional penalty in excess of the tax 11
credit awarded. 12
(13) (a) The selling fa rmer tax credit shall sunset on December 31, 2031, and new 13
applications shall not be accepted or considered on or after December 31, 14
2031. 15
(b) All outstanding applications with preliminary or final approval under this 16
subchapter as of December 31, 2031, sh all continue to be governed by the 17
provisions of this subchapter. 18
Section 15. KRS 198B.702 is amended to read as follows: 19
KRS 198B.700 to 198B.738 shall apply to an individual who conducts home inspections 20
for compensation, but shall not apply to the following: 21
(1) An individual who is acting within the scope of the individual's employment as: 22
(a) A code enforcement official for the state or a political subdivision of the state; 23
or 24
(b) A representative of a state or local housing agency or an individual acting 25
under the authority of the United States Department of Housing and Urban 26
Development; 27
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(2) An individual who is acting within the scope of the individual's license as a 1
licensed: 2
(a) Architect under KRS Chapter 323; 3
(b) Professional engineer under KRS Chapter 322; 4
(c) Plumbing contractor or journeyman plumber under KRS Chapter 318; 5
(d) Electrician, master electrician, or electrical contractor under KRS Chapter 6
227A; 7
(e) Liquefied petroleum gas dealers under KRS Chapter 234; 8
(f) Master heating, ventilation, and air conditioning contractor, journeyman 9
heating, ventilation, and air conditioning mechanic, or an apprentice heating, 10
ventilation, and air conditioning mechanic under this chapter; or 11
(g) Fire protection sprinkle r contractor, fire protection system certificate holder, 12
or certified fire sprinkler inspector under this chapter; 13
(3) An individual licensed under KRS Chapter 324 as a real estate broker, broker -14
salesperson, or salesperson and is acting within the scope of the individual's license; 15
(4) An individual who is licensed under KRS Chapter 324A as a real property[estate] 16
appraiser and is acting within the scope of the individual's license; 17
(5) An individual who holds a license under KRS Chapter 304 as an insurance adjuster 18
and is acting within the scope of the individual's license; 19
(6) An individual who holds a permit, certificate, or license to: 20
(a) Use and apply pesticides; or 21
(b) Make diagnostic inspections and reports for wood destroying pests and fungi 22
under KRS Chapter 217B and is acting within the scope of the individual's 23
certificate or license; 24
(7) An individual who holds a license from a political subdivision as a tradesperson or 25
home builder and is acting within the scope of the individual's license; 26
(8) An individual who holds a current and valid license, certificate, or permit under 27
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KRS 227.550 to 227.660 and is acting within the scope of the individual's license, 1
certificate, or permit as a: 2
(a) Manufactured home retailer; 3
(b) Manufactured home certified retailer; or 4
(c) Manufactured home certified installer; or 5
(9) A person not subject to licensure by the Commonwealth who is engaged in 6
providing estimates for remodeling or repair to a residential dwelling. 7
Section 16. KRS 324.085 is amended to read as follows: 8
(1) (a) All actively licensed agents, except those licensees exempt under KRS 9
324.046(5) and those licensees satisfying the educational requi rement in 10
subsection (2) of this section, shall successfully complete twelve (12) 11
classroom or online hours of continuing education for the biennial license 12
period. Six (6) of the twelve (12) hours shall be completed in the first year of 13
the biennial license period or the license shall be automatically cancelled. 14
(b) Six (6) of the twelve (12) hours of continuing education shall be in real estate 15
law. 16
(c) A licensee may accumulate additional continuing education hours for the 17
biennial period in the first year of the biennial term. 18
(d) Six (6) of the twelve (12) hours of continuing education may be in real estate -19
related courses approved by the commission and other [real property ] boards 20
pursuant to KRS Chapters 324A and 330 and KRS 198B.700 to 198B.738. 21
(2) A licensee who is issued an initial sales associate license after January 1, 2016, 22
shall complete forty -eight (48) classroom or online hours of commission -approved 23
post-license education: 24
(a) Provided by one (1) or a combination of the following: 25
1. An accredited institution; or 26
2. A commission-approved: 27
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a. Real estate school; or 1
b. Broker-affiliated training program; and 2
(b) Within two (2) years of receiving or activating his or her license unless 3
extended by the commission for good cause shown. 4
(3) The license held by any licensee failing to complete his or her sales associate post -5
license education requirements in accordance with subsection (2) of this section 6
shall be automatically canceled, in accordance with administrative regulations 7
establishing compliance and delinquency procedures. 8
(4) The commission shall promulgate administrative regulations to establish procedures 9
for implementing the requirements in this section. 10
(5) In order to qualify to teach continuing education or post -license courses, all 11
continuing education and post -license instructors shall maintain a minimum rating 12
as prescribed by the commission by the promulgation of administrative regulations. 13
(6) (a) A li censee who has initiated continuing education courses prior to the date 14
established through an administrative regulation promulgated by the 15
commission in accordance with KRS Chapter 13A shall have five (5) days 16
after the established date to complete them. 17
(b) The commission may not cancel a license for failure to complete continuing 18
education courses until ten (10) days after the date established by the 19
commission. 20
Section 17. KRS 324A.035 is amended to read as follows: 21
(1) The board shall promulgate administrative regulations pursuant to [ the provisions 22
of] this chapter and in accordance with KRS Chapter 13A for certification or 23
licensure of appraisers who perform appraisals of real property in federally related 24
transactions. Requirements established by the board relating to appraisers of 25
federally related transactions shall not exceed the minimum requirements 26
established by federal law or regulation; 27
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(2) The board shall promulgate administrative regulations in accordance with[pursuant 1
to] KRS Chapter 13A for certification or licensure of appraisers of real property in 2
nonfederally related transactions. Appraisers who wish to be limited to appraisals of 3
nonfederally related transactions, and who have engaged in the apprais al of real 4
property[estate] for at least ten (10) years prior to April 7, 1992, shall be certified or 5
licensed as appraisers of nonfederally related transactions. 6
(3) The board shall establish by administrative regulations requirements for: 7
(a) Classifications of appraisers; 8
(b) Certification and licensure; 9
(c) Renewal, suspension, or revocation of certification or licensure; 10
(d) Standards of professional appraisal practice, including experience, education, 11
and ethics; 12
(e) Examination of applicants for certification or licensure; and 13
(f) Continuing education of appraisers. 14
Section 18. KRS 324A.050 is amended to read as follows: 15
(1) The board may refuse to issue, refuse to renew, suspend, or revoke a certificate or 16
license, reprimand, admonish, place on probation, or impose a fine up to two 17
thousand dollars ($2,000)[($2000)] per each violation determined by the board, not 18
to exceed five thousand dollars ($5,000)[($5000)], on a certificate holder or 19
licensee, or any combination thereof, for any of the following reasons: 20
(a) Procuring or attempting to procure a certificate or license by knowingly 21
making a false statement or submitting false information, or through any form 22
of fraud or misrepresentation; 23
(b) Refusing to provide complete information in response to a question in an 24
application to the board or failing to meet the minimum qualifications 25
established by the board; 26
(c) Being convicted of a felony or misdemeanor, if in accordance with KRS 27
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Chapter 335B; 1
(d) Committing an act involving dishonesty, fraud, or misrepresentation; 2
(e) Violating any of the provisions of KRS 324A.010 to 324A.100[324A.090], 3
the administrative regulations of the board, or any lawful order of the board; 4
(f) Violating the confidential nature of record s to which the appraiser gained 5
access through employment or engagement as an appraiser; 6
(g) Committing any other conduct which constitutes or demonstrates bad faith, 7
untrustworthiness, impropriety, fraud, or dishonesty; 8
(h) Failing or refusing, without go od cause, to exercise reasonable diligence in 9
developing an appraisal, preparing an appraisal report, or communicating an 10
appraisal; 11
(i) Being negligent or incompetent in developing an appraisal, in preparing an 12
appraisal report, or in communicating an appraisal; 13
(j) Failing to observe one (1) or more of the Uniform Standards of Professional 14
Appraisal Practice in effect at the time of the appraisal report transmittal letter 15
date; or 16
(k) Having a license or registration certificate to practice as a licensed or certified 17
real property appraiser denied, limited, suspended, probated, or revoked in 18
another jurisdiction on grounds sufficient to cause licensure to be denied, 19
limited, suspended, probated, or revoked in this state. 20
(2) Notwithstanding any other provision of this chapter to the contrary, the 21
requirements of KRS Chapter 324A, the board's administrative regulations, and the 22
current edition of the Uniform Standards of Professional Appraisal Practice shall 23
constitute the mini mum standard of conduct and performance for a licensee or 24
credential holder in any work or service performed that is addressed by those 25
standards. 26
(3) In any proceeding in which a suspension of thirty (30) days or more, or revocation 27
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is imposed, the board may require the respondent to pay the actual costs of the 1
investigation and all proceedings not to exceed ten thousand dollars ($10,000). 2
(4) Three (3) years from the date of a revocation, any certificate holder or licensee 3
whose certificate or license has been revoked may petition the board for 4
reinstatement. The board shall investigate the petition and may reinstate, upon a 5
finding that the petitioner has complied with any and all terms prescribed by the 6
board and is able to engage in the practice of real property[estate] appraisal within 7
the requirements of this chapter and the administrative regulations. The board may, 8
in its discretion, require the petitioner to successfully pass the examination required 9
for the applicable certificate or license. 10
Section 19. KRS 324A.088 is amended to read as follows: 11
KRS 324A.010 to 324A.100[324A.090] may be cited as the Real Property[Estate] 12
Appraisal Voluntary Certification Act. 13
Section 20. KRS 324A.100 is amended to read as follows: 14
(1) The Kentucky Real Property[Estate] Appraisers Board shall require a national and 15
state criminal background check for each initial application to be a licensed or 16
certified real property appraiser under the following requirements: 17
(a) The applicant shall provide his or her fingerprints to the Department of 18
Kentucky State Police for submission to the Federal Bureau of Investigation 19
after a state criminal background check is conducted; 20
(b) The results of the national and state criminal background check shall be sent 21
to the board; and 22
(c) Any fee charged by the Department of Kentucky State Police and the Federal 23
Bureau of Investigation shall be an amount no greater than the actual cost of 24
processing the request and conducting the check. 25
(2) The board shall issue a license or certification to an applicant authorizing the 26
applicant to act or offer to act as a licensed or certified real property appraiser in 27
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this state upon: 1
(a) Receipt of a properly completed application; 2
(b) Successful completion of all applicable education, experience, and 3
examination; 4
(c) Successful completion of all statutory and administrative regulation 5
requirements for licensing and certification of a real property appraiser; and 6
(d) Payment of the required application fee. 7
Section 21. KRS 324A.150 is amended to read as follows: 8
As used in KRS 324A.150 to 324A.164, unless the context otherwise requires: 9
(1) "Appraisal management company" means a person who performs the actions 10
necessary to administer a network of state -licensed appraisers to fulfill requests for 11
appraisal management services on behalf of a client, whether directly or through the 12
use of software products or online, including but not limited to any of the following 13
actions: 14
(a) Recruiting appraisers; 15
(b) Contracting with appraisers to perform appraisal services; 16
(c) Collecting fees from clients; 17
(d) Negotiating fees with appraisers or reimbursing appraisers for appraisal 18
services; 19
(e) Receiving appraisal orders and appraisal reports; 20
(f) Submitting appraisal reports received from appraisers to the company's 21
clients; 22
(g) Reviewing or verifying appraisal reports; or 23
(h) Managing the process of having an appraisal performed, including providing 24
related administrative and clerical duties; 25
(2) "Appraisal management services" means conducting business by telephone, by 26
electronic means, by mail, or in person, directly or indirectly for compensation or 27
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other pecuniary gain or in the expectation of compe nsation or other pecuniary gain 1
to: 2
(a) Solicit, accept, or offer to accept a request for appraisal services; or 3
(b) Employ or contract with a licensed or certified appraiser to perform appraisal 4
services; 5
(3) "Appraisal services" means the practice of developing an opinion of the value of 6
real property[estate] in conformity with the minimum USPAP standards; 7
(4) "Appraiser" means an individual licensed by the board who [, for a fee or other 8
consideration,] develops and communicates a real property[estate] appraisal or 9
otherwise gives an opinion of the value of real property[estate] or any interest in 10
real property[estate] in conformity with the minimum USPAP standards; 11
(5) "Appraiser panel" means a network, list, or roster of licensed or certified appraisers 12
approved by an appraisal management company to perform appraisals as 13
independent contractors for the appraisal management company; 14
(6) "Board" means the Kentucky Real Property[Estate] Appraisers Board established 15
by KRS 324A.015; 16
(7) "Client" means a person that contracts with or otherwise enters into an agreement 17
with an appraisal management company for the performance of appraisal services; 18
(8) "Controlling person" means an individual employed, appointed, or authorized by an 19
appraisal management company to contract with clients or independent appraisers 20
for the performance of appraisal services; 21
(9) "Managing principal" has the same meaning as "controlling person"; 22
(10) "Registrant" means an appraisal management company or person that is registered 23
or seeking registration under KRS 324A.152; and 24
(11) ["USPAP" means the ] "Uniform Standards of Professional Appraisal Practice " or 25
"USPAP" has the same meaning as in Section 1 of this Act. 26
Section 22. KRS 324A.152 is amended to read as follows: 27
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(1) A person shall not act or offer to act as an appraisal management company or 1
perform appraisal management services wit hin the Commonwealth unless 2
registered by the board. 3
(2) To be registered by the board, a person shall make written application to the board, 4
submit to a criminal background check as provided in subsection (3) of this section, 5
pay a filing fee established by the board, and pay the fee required to be included in 6
the appraisal management company recovery fund created in KRS 324A.155. The 7
written application shall include the following information: 8
(a) The name, street address, and telephone contact informatio n of the person 9
seeking registration; 10
(b) 1. If the registrant is a domestic organization, the designation of an agent 11
for service of process; or 12
2. If the registrant is a foreign organization, documentation that the foreign 13
organization is authorized to t ransact business in the Commonwealth 14
and has appointed an agent for service of process by submitting a copy 15
of: 16
a. The registrant's filing with the Secretary of State appointing an 17
agent for service of process; and 18
b. A certificate of authority issued by the Secretary of State. 19
A foreign organization's failure to comply with this subparagraph may 20
result in rejection of the application; 21
(c) The name, residential street address, and contact information of any person 22
who owns ten percent (10%) or more of the appraisal management company 23
for which registration is being requested; 24
(d) The name, residential street address, and contact information of a controlling 25
person or managing principal; 26
(e) A certification that the registrant: 27
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1. Has a system and process in place to verify that any person being added 1
to the appraiser panel of the appraisal management company, or who 2
may be used by the appraisal management company to otherwise 3
perform appraisals, holds a license in good standing in this state under 4
this chapter; 5
2. Has a system and process in place to review the work of all appraisers 6
that are performing appraisal services for the appraisal management 7
company on a periodic basis to ensure that all[the] appraisal 8
reports[services] meet the minimum reporting req uirements[are being 9
conducted] in accordance with the [ minimum] most recent edition of 10
the USPAP[ standards]; and 11
3. Maintains a detailed record of each request for appraisal services that it 12
receives and the appraiser that performs the appraisal services for the 13
appraisal management company; 14
(f) A certification from the registrant and any partner, member, manager, offic er, 15
director, managing principal, controlling person, or person occupying a 16
similar status or performing similar functions, or person directly or indirectly 17
controlling the registrant that: 18
1. The application for registration when filed or after filing con tains no 19
statement that, in light of the circumstances under which it was made, is 20
false or misleading with respect to a material fact; 21
2. The person certifying has not violated or failed to comply with KRS 22
324A.154, 324A.156, or 324A.158; 23
3. The person ce rtifying and each person who owns ten percent (10%) or 24
more of the registrant has not pled guilty or nolo contendere to or been 25
found guilty of: 26
a. A felony; or 27
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b. Within the past ten (10) years, a misdemeanor involving mortgage 1
lending or real property[estate] appraising, or an offense involving 2
breach of trust or fraudulent or dishonest dealing; 3
4. The person certifying is not permanently or temporarily enjoined by a 4
court of competent jurisdiction from engaging in or continuing any 5
conduct or practice in volving appraisal management services or 6
operating an appraisal management company; 7
5. The person certifying is not the subject of an order of the board or any 8
other state's appraisal management company regulatory agency denying, 9
suspending, or revoking th e person's privilege to operate as an appraisal 10
management company; 11
6. The person certifying has not acted as an appraisal management 12
company while not properly registered by the board; and 13
7. The appraisal management company is not owned, in whole or in p art, 14
directly or indirectly, by any person who has had an appraiser license or 15
certificate refused, denied, canceled, surrendered in lieu of revocation, 16
or revoked in any state for a cause other than expiration, as determined 17
by the relevant state appraiser regulatory program; and 18
(g) Any other information required by the board. 19
(3) The board shall require a national and state criminal background check on the 20
person certifying under subsection (2)(f) of this section and each person who owns 21
ten percent (10%) or more of the registrant under the following requirements: 22
(a) The person certifying and each person who owns ten percent (10%) or more 23
of the registrant shall provide his or her fingerprints to the Department of 24
Kentucky State Police for submission to the Federal Bureau of Investigation 25
after a state criminal background check is conducted; 26
(b) The results of the national and state criminal background check shall be sent 27
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to the board; and 1
(c) Any fee charged by the Department of Kentucky State Police and the Federal 2
Bureau of Investigation shall be an amount no greater than the actual cost of 3
processing the request and conducting the check. 4
(4) The board shall issue a certificate of registration to a registrant authorizing the 5
registrant to act or offer t o act as an appraisal management company in this state 6
upon: 7
(a) Receipt of a properly completed application; 8
(b) Payment of the required filing fee; 9
(c) Payment of the fee required to be included in the appraisal management 10
company recovery fund; and 11
(d) A determination by the board that: 12
1. The registrant has not had a previous registration suspended or revoked; 13
and 14
2. The activities of the applicant shall be directed and conducted by 15
persons who: 16
a. Have not had a previous registration suspended or revoked; 17
b. Have not pled guilty or nolo contendere to or been found guilty of 18
a felony; or 19
c. Within the past ten (10) years have not pled guilty, pled nolo 20
contendere to, or been found guilty of a misdemeanor involving 21
mortgage lending or real property[estate] appraising or an offense 22
involving a breach of trust or fraudulent or dishonest dealing. 23
(5) (a) If the board finds that there is substantial reason to deny the application for 24
registration, the board shall notify the registrant that the application has been 25
denied and shall afford the registrant an opportunity for a hearing before the 26
board to show cause why the registration should not be denied. 27
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(b) All proceedings concerning the denial of a certificate of registration shall be 1
conducted in accordance with KRS Chapter 13B. 2
(c) The acceptance by the board of an application for registration does not 3
constitute the approval of its contents or waive the authority of the board to 4
take disciplinary action under KRS 324A.162. 5
(6) (a) Registrations issued under this section shall be renewed annually. 6
(b) Renewal shall occur on October 31 of each year. 7
(c) If the initial registration occurs less than six (6) months before October 31, the 8
renewal shall not be required until October 31 of the following year, and shall 9
then be renewed on October 31 of each year thereafter. 10
(7) (a) Failure to renew a registration i n a timely manner shall result in a loss of 11
authority to operate. 12
(b) A request to reinstate a certificate of registration shall be accompanied by 13
payment of a penalty of fifty dollars ($50) for each month of delinquency, up 14
to six (6) months after expiration. 15
(c) After six (6) months' delinquency, a new application for registration shall be 16
required. 17
(8) The board shall promulgate administrative regulations in accordance with KRS 18
Chapter 13A to establish standards for the operation of appraisal management 19
companies and for the implementation and enforcement of KRS 324A.150 to 20
324A.164. 21
Section 23. KRS 324A.158 is amended to read as follows: 22
(1) An employee, director, officer, or agent of an appraisal management company or 23
any other third party acting as a joint venture partner with or as an independent 24
contractor for an appraisal management company shall not improperly influence or 25
attempt to improperly influence the development, reporting, result, or review of a 26
real property[estate] appraisal, including but not limited to the use of intimidation, 27
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coercion, extortion, bribery, blackmail, threat of nonpayment or withholding 1
payment for appraisal services, or threat of exclusion from future appraisal work. 2
(2) The registrant shall not: 3
(a) Request, allow, or require an appraiser to collect any portion of the fee 4
charged by the appraisal management company, including the appraisal fee, 5
from a borrower, homeowner, or other third party; 6
(b) Require an appraiser to provide the re gistrant with the appraiser's digital 7
signature or seal; 8
(c) Alter, amend, or change an appraisal report submitted by a licensed or 9
certified appraiser, by the following or any other actions: 10
1. Removing the appraiser's signature; 11
2. Adding or removing information to or from the appraisal report; or 12
3. Altering the final value opinion reported by an appraiser; 13
(d) Remove an appraiser from an appraiser panel without prior written notice to 14
the appraiser. An appraiser may only be removed from an appraiser pan el 15
with written notice for: 16
1. A violation of the minimum USPAP standards or other applicable 17
statutes or administrative regulations resulting in a suspension or 18
revocation of the appraiser's license in Kentucky; or 19
2. Other substandard or otherwise improp er performance as may be 20
determined by administrative regulations promulgated by the board; 21
(e) Enter into contracts or agreements with an appraiser for the performance of 22
appraisal services unless the appraiser is licensed or certified in good standing 23
with the board; 24
(f) Request that an appraiser provide an estimated, predetermined, or desired 25
valuation in an appraisal report or provide estimated values or comparable 26
sales at any time before the appraiser completes an appraisal report; 27
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(g) Provide to an appraiser an anticipated, estimated, encouraged, or desired value 1
for a property or a proposed or target amount to be loaned or borrowed, 2
except that a copy of the sales contract for purchase transactions may be 3
provided; 4
(h) Commit an act or practice that impairs or attempts to impair an appraiser's 5
independence, objectivity, or impartiality; or 6
(i) Have a direct or indirect interest, financial or otherwise, in the property or 7
transaction involving the appraisal. 8
(3) Subsection (1) of this section shall not prohibit an appraisal management company 9
from requesting that an appraiser: 10
(a) Provide additional information about the basis for a valuation; 11
(b) Correct objective factual errors in an appraisal report; or 12
(c) Provide further detail, substantiation, or explanation for the appraiser's value 13
conclusion. 14
Section 24. KRS 324A.162 is amended to read as follows: 15
(1) The board may deny, suspend, revoke, or refuse to issue or renew the registration of 16
an appraisal management company, or may restrict or limit the activities of an 17
appraisal management company or of a person who owns an interest in or 18
participates in the business of an appraisal management company if the board finds 19
that any of the following circumstances apply to the applicant, a registrant, a person 20
owning ten percent (10%) or more of the applicant or registrant, a partner, member, 21
manager, officer, director, managing principal, controlling person, a person 22
occupying a similar statu s or performing similar functions, or a person directly or 23
indirectly controlling the applicant or registrant: 24
(a) The application for registration contained a statement that in light of the 25
circumstances under which it was made is false or misleading with respect to 26
a material fact; 27
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(b) The person has violated or failed to comply with KRS 324A.152, 324A.154, 1
324A.156, or 324A.158 or failed to comply with administrative regulations 2
promulgated by the board for the implementation and enforcement of KRS 3
324A.150 to 324A.164; 4
(c) The person has pled guilty or nolo contendere to, or has been found guilty of, 5
a felony or, within the past ten (10) years, a misdemeanor involving mortgage 6
lending or real property[estate] appraising or an offense involving a breach o f 7
trust or fraudulent or dishonest dealing; 8
(d) The person is permanently or temporarily enjoined by a court of competent 9
jurisdiction from engaging in or continuing any conduct or practice involving 10
appraisal management services or operating an appraisal management 11
company; 12
(e) The person is the subject of an order of the board or any other state's appraisal 13
management company regulatory agency denying, suspending, or revoking 14
the person's privilege to operate as an appraisal management company; 15
(f) The pe rson acted as an appraisal management company while not properly 16
registered by the board; or 17
(g) The person failed to pay the proper filing or renewal fee as provided under 18
KRS 324A.152 and 324A.154. 19
(2) Upon its own motion or the written complaint of a pe rson reporting a violation of 20
subsection (1) of this section, and after notice and the opportunity for a hearing in 21
accordance with KRS Chapter 13B, the board may: 22
(a) Suspend or revoke the registration of a registrant; 23
(b) Impose a fine not to exceed five thousand dollars ($5,000) per violation; or 24
(c) Take other appropriate disciplinary actions as established by the board 25
through promulgation of administrative regulations. 26
(3) The board may appear in its own name in Franklin Circuit Court, or the Circuit 27
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Court of the county where the alleged violation occurred, to obtain injunctive relief 1
to prevent a person from violating this section or KRS 324A.154, 324A.156, or 2
324A.158. The Circuit Court may grant a temporary or permanent injunction 3
regardless of whether: 4
(a) Criminal prosecution has been or may be instituted as a result of the violation; 5
or 6
(b) The person is the holder of a registration issued by the board. 7
Section 25. KRS 324A.164 is amended to read as follows: 8
Unless otherwise required to be registered as an appraisal management company by state 9
or federal law, KRS 324A.150 to 324A.164 shall not apply to: 10
(1) The federal government, state government, any county or municipal government, or 11
any agency or instrumentality thereof; 12
(2) A person authorized to engage in business as a bank, credit union, or savings and 13
loan association under the laws of the United States, the Commonwealth of 14
Kentucky, or any other state; 15
(3) A real estate broker or real estate agent properly licensed or otherwise authorized to 16
do business in the Commonwealth of Kentucky listing or selling real estate; 17
(4) An officer or employee of any entity listed in subsection (1), (2), or (3) of this 18
section when acting within the scope of his or her employment; 19
(5) An entity that is responsible for ensuring that the real property[estate] appraisal 20
activity being perform ed by an employee is performed in accordance with 21
applicable appraisal standards; 22
(6) An individual who: 23
(a) Is an appraiser; and 24
(b) In the normal course of business enters into an agreement, whether written or 25
otherwise, with another appraiser for the pe rformance of a real 26
property[estate] appraisal activity that the individual cannot complete for any 27
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reason, including: 1
1. Competency; 2
2. Workload; 3
3. Schedule; or 4
4. Geographic location; 5
(7) An individual who: 6
(a) In the normal course of business enters in to an agreement, whether written or 7
otherwise, with an appraiser for the performance of real property[estate] 8
appraisal activity; and 9
(b) Under the agreement cosigns the report of the appraiser performing the real 10
property[estate] appraisal upon completion of the real property[estate] 11
appraisal activity; 12
(8) An appraisal management company that contracts with one (1) or more appraisers 13
for the performance of fewer than ten (10) appraisals in this state in a calendar year; 14
or 15
(9) A federally regulated apprai sal management company as defined in 12 C.F.R. sec. 16
34.211(k). 17
Section 26. KRS 324B.030 is amended to read as follows: 18
(1) The Department of Professional Licensing in the Public Protection Cabinet shall 19
provide administr ative services, technical assistance, and advice to the following 20
boards and commissions at the request of the individual boards or commissions, all 21
of which maintain their identity and their full authority for making policy decisions 22
in the fields that th ey regulate: the State Board of Accountancy, the Kentucky 23
Board of Architects, the Kentucky Board of Barbering, the Kentucky Board of 24
Cosmetology, the State Board of Podiatry, the Kentucky State Board of 25
Chiropractic Examiners, the Kentucky Board of Dentis try, the State Board of 26
Embalmers and Funeral Directors, the State Board of Registration for Professional 27
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Engineers and Land Surveyors, the Kentucky Board of Nursing, the Kentucky 1
Board of Ophthalmic Dispensers, the Kentucky Board of Optometric Examiners, 2
the Kentucky Board of Pharmacy, the State Board of Physical Therapy, the State 3
Board of Examiners of Psychologists, the Kentucky Real Estate Commission, the 4
Kentucky Board of Veterinary Examiners, the Board of Auctioneers, the Real 5
Property[Estate] Appraisers Board, the Kentucky Board of Home Inspectors, the 6
Kentucky Board of Landscape Architects, the State Board of Medical Licensure, 7
the Board of Speech -Language Pathology and Audiology, the Kentucky Board of 8
Licensure for Nursing Home Administrators, the K entucky Licensing Board for 9
Specialists in Hearing Instruments, the Kentucky Board of Social Work, the 10
Kentucky Board of Emergency Medical Services, and any other boards and 11
commissions that are created to license, certify, register, or otherwise regulate any 12
occupational or professional category. 13
(2) The department may also provide administrative services to a board or commission 14
that is created to license, certify, register, or otherwise regulate any occupational or 15
professional category if these administrative services are deemed to be preferable or 16
required after the review process conducted under KRS 324B.040. 17
(3) To the extent that the department provides administrative services, the respective 18
boards and commissions are relieved of the power and duty to provide the services 19
for themselves. The department shall charge each board or commission a reasonable 20
amount for administrative services provided pursuant to subsection (1) of this 21
section. The department may employ persons previously employed by board s or 22
commissions. 23
(4) The department may receive complaints against the conduct of licensees granted 24
licensure by the boards and commissions assigned to the department for 25
administrative purposes. The department shall cause these complaints to be reduced 26
to writing and forwarded to the appropriate board or commission for investigation 27
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and a determination of the validity of the complaint. The department shall keep a 1
record of all complaints received by it and forwarded to a board or commission. 2
(5) Any board or commission listed in subsection (1) of this section [,] shall accept 3
personal checks in payment of license renewal fees. 4
Section 27. KRS 350.280 is amended to read as follows: 5
(1) (a) As used in this section, "he or she" includes "person" as defined in KRS 6
350.010. 7
(b) If a permittee or operator has been issued a notice or order directing 8
abatement of a violation on the basis of an imminent danger to health and 9
safety of the public or significant imminent environmental harm, and the 10
notice or order requires access to property for which the permittee or operator 11
does not have the legal right of entry necessary in order to abate that violation, 12
and the owner or legal occupant of that property has refused access, an 13
easement of necessity is recognized on behalf of the permittee or operator for 14
the limited purpose of abating that violation. The easement of necessity 15
becomes effective, and the permittee or operator is authorized to enter the 16
property to undertake immediate action to abate the violation if he or she 17
concurrently: 18
1. Provides to the property owner or legal occupant a copy of the cabinet's 19
order and a plan of action reasonably calculated to result in abatement of 20
the violation, repair of the damage, and restoration of the property, and 21
provides proof of liability insurance and workers' compensation 22
insurance covering any accidents or injuries occurring on the property 23
during the remedial work; 24
2. Provides to the property owner or legal occupant and cabinet an 25
affidavit that he or she has been denied access to the property; and 26
3. Provides to the property owner or legal occupant a statement that he or 27
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she, the permittee or operator, will diligently pursue abatement of the 1
violation, and will obtain an appraisal completed by a real 2
property[estate] appraiser certified under KRS Chapt er 324A of the 3
damages to the property, including loss of use, that have resulted from 4
the violation, that the appraisal will be completed and provided to the 5
property owner or legal occupant within three (3) days of abatement of 6
the violation by the operator or permittee, and that he or she will pay the 7
property owner or legal occupant the amount of the damages in the 8
permittee or operator's appraisal at that time. 9
(c) Following the effective date of the easement of necessity, the following 10
procedure shall be followed with respect to the appraisal of the damages: 11
1. The permittee or operator shall have a certified appraiser on the site and 12
have his or her appraisal completed and submitted to the property owner 13
or legal occupant within three (3) days of abat ement of the violation by 14
the operator or permittee; 15
2. The property owner or legal occupant shall accept or reject this appraisal 16
in writing within seven (7) days of receipt of the completed appraisal; 17
3. If the property owner or legal occupant rejects th is appraisal, he or she 18
may hire a real property[estate] appraiser certified under KRS Chapter 19
324A to appraise the damages, including loss of use, that have resulted 20
from the violation, and this such appraisal shall be completed and 21
provided to the permittee or operator within thirty (30) days of receipt of 22
the permittee's or operator's completed appraisal. Upon receipt of the 23
invoice the permittee or operator shall pay for the property owner or 24
legal occupant's appraisal up to the amount he or she paid fo r his or her 25
own appraisal; and 26
4. If the property owner or legal occupant accepts the permittee's or 27
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operator's appraisal, the permittee or operator shall promptly pay the 1
property owner or legal occupant the amount of the damages reflected 2
therein. 3
(d) If the property owner or legal occupant has an appraisal done, and if, based on 4
his or her appraisal and the permittee's or operator's appraisal, an agreement is 5
not reached on the appraised damages, the permittee or operator shall pay the 6
property owner or legal occupant the amount of the permittee's or operator's 7
appraisal damages, and if the property owner or legal occupant's appraisal 8
damages are for more than the permittee's or operator's, the permittee or 9
operator shall pay the difference to the circuit clerk, in the county in which the 10
majority of the property lies, to be placed in an interest -bearing account in a 11
bank until final resolution of the matter by agreement or court or jury 12
judgment. If the property owner or legal occupant is granted award of some or 13
all of the difference, he or she shall also receive the interest on that portion of 14
the difference. 15
(e) If the property owner or legal occupant does not accept or reject the 16
permittee's or operator's appraisal and offer of funds for damages withi n the 17
time specified in [ subparagraph 2. of] paragraph (c)2. of this subsection, the 18
appraisal and offer shall be deemed accepted. 19
(f) The appraiser shall calculate the damages to the property, including loss of 20
use, that have resulted from the violation w hich the owner or the legal 21
occupant shall be entitled to under this subsection as the difference between 22
the fair market value of the property before the violation and after the 23
abatement of the violation, plus the reasonable rental value of the property 24
during the period of time between the effective date of the easement of 25
necessity and the date of the abatement of the violation. 26
(2) If a permittee or operator has been issued a notice or order directing abatement of a 27
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violation other than one described in subsection (1) of this section, and the notice or 1
order requires access to property for which the permittee or operator does not have 2
the legal right of entry necessary in order to abate that violation, and the owner or 3
legal occupant of that property ha s refused access, an easement of necessity is 4
recognized on behalf of the permittee or operator, for the limited purpose of 5
allowing a real property[estate] appraiser certified under KRS Chapter 324A, 6
chosen by the permittee or operator, to enter upon the property to which the owner 7
or legal occupant has refused access in order for the appraiser to appraise the 8
damages, including loss of use, that likely will result from the violation. 9
(3) (a) The easement for the limited purpose of allowing the appraisal u nder 10
subsection (2) of this section shall be recognized and take effect when the 11
operator or permittee: 12
1. Provides to the property owner or legal occupant a copy of the cabinet's 13
order; 14
2. Provides to the property owner or legal occupant and cabinet a pla n of 15
remedial measures to abate the violation; 16
3. Provides to the property owner or legal occupant and cabinet an 17
affidavit that he or she has been denied access to the property; and 18
4. Provides to the property owner or legal occupant a statement that he o r 19
she, the permittee or operator, will within seven (7) days of entry of the 20
appraiser obtain an appraisal of the damages to the property including 21
loss of use, that likely will result from the violation, and that upon 22
completion of the appraisal he or she will provide the appraisal to the 23
property owner or legal occupant and pay the property owner or legal 24
occupant an entry fee. The entry fee shall be calculated as one -half (1/2) 25
of the amount of the appraisal or the sum of five hundred dollars ($500), 26
whichever is greater, for the privilege to enter the property and conduct 27
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the appraisal. 1
(b) Upon payment of the entry fee by the permittee or operator, an easement of 2
necessity shall be recognized on behalf of the permittee or operator for the 3
limited purposes of abating the violation and the operator or permittee shall be 4
authorized to enter the property to undertake immediate action to abate the 5
violation, provided that the landowner has been provided a plan of action 6
reasonably calculated to result in abat ement of the violation, repair of the 7
damage, and restoration of the property, and the permittee or operator 8
provides proof of liability insurance and workers' compensation insurance 9
covering any accidents or injuries occurring on the property during the 10
remedial work. 11
(c) Following the effective date of the easement of necessity to abate the 12
violation, the procedures set forth in subsection (1)(c) to (f) of this section 13
shall apply. The entry fee shall be deducted from any subsequent payment 14
deemed due the property owner or legal occupant as a result of the post -15
abatement appraisal or appraisals. If the entry fee exceeds the amount of all 16
appraisals, the property owner or legal occupant shall be entitled to retain the 17
entry fee in its entirety. 18
(4) Nothing contained in this section shall affect any person's right to bring a civil 19
action for damages, including punitive and compensatory damages, or other 20
appropriate relief. 21
Section 28. KRS 413.140 is amended to read as follows: 22
(1) The following actions shall be commenced within one (1) year after the cause of 23
action accrued: 24
(a) An action for an injury to the person of the plaintiff, or of her husband, his 25
wife, child, ward, apprentice, or servant; 26
(b) An action for injuries to persons, cattle, or other livestock by railroads or 27
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other corporations, with the exception of hospitals licensed pursuant to KRS 1
Chapter 216; 2
(c) An action for malicious prosecution, conspiracy, arrest, seduction, criminal 3
conversation, or breach of promise of marriage; 4
(d) An action for libel or slander; 5
(e) An action against a physician, surgeon, dentist, or hospital licensed pursuant 6
to KRS Chapter 216, for negligence or malpractice; 7
(f) A civil action, arising out of any act or omission in rendering, or failing to 8
render, professional services for others, whether brought in tort or contract, 9
against a real property[estate] appraiser holding a certificate or license issued 10
under KRS Chapte r 324A or a real estate broker or sales associate holding a 11
license issued under KRS Chapter 324; 12
(g) An action for the escape of a prisoner, arrested or imprisoned on civil process; 13
(h) An action for the recovery of usury paid for the loan or forbearance of money 14
or other thing, against the loaner or forbearer or assignee of either; 15
(i) An action for the recovery of stolen property, by the owner thereof against 16
any person having the same in his or her possession; 17
(j) An action for the recovery of damages o r the value of stolen property, against 18
the thief or any accessory; 19
(k) An action arising out of a detention facility disciplinary proceeding, whether 20
based upon state or federal law; 21
(l) An action for damages arising out of a deficiency, defect, omission, error, or 22
miscalculation in any survey or plat, whether brought in tort or contract, 23
against a licensed professional land surveyor holding a license under KRS 24
Chapter 322; 25
(m) An action for violating KRS 311.782; and 26
(n) An action for violating KRS 311.731. 27
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(2) In respect to the action referred to in [ paragraph (e) of] subsection (1) (e) of this 1
section, the cause of action shall be deemed to accrue at the time the injury is first 2
discovered or in the exercise of reasonable care should have been discovered; 3
provided that such action shall be commenced within five (5) years from the date on 4
which the alleged negligent act or omission is said to have occurred. 5
(3) In respect to the action referred to in [ paragraph (f) or (l) of] subsection (1)(f) or (l) 6
of this section, the cause of action shall be deemed to accrue within one (1) year 7
from the date of the occurrence or from the date when the cause of action was, or 8
reasonably should have been, discovered by the party injured. 9
(4) In respect to the action referr ed to in [ paragraph (h) of] subsection (1) (h) of this 10
section, the cause of action shall be deemed to accrue at the time of payment. This 11
limitation shall apply to all payments made on all demands, whether evidenced by 12
writing or existing only in parol. 13
(5) In respect to the action referred to in [ paragraph (i) of] subsection (1) (i) of this 14
section, the cause of action shall be deemed to accrue at the time the property is 15
found by its owner. 16
(6) In respect to the action referred to in [ paragraph (j) of] subsection (1) (j) of this 17
section, the cause of action shall be deemed to accrue at the time of discovery of the 18
liability. 19
(7) In respect to the action referred to in [ paragraph (k) of] subsection (1) (k) of this 20
section, the cause of action shall be deemed t o accrue on the date an appeal of the 21
disciplinary proceeding is decided by the institutional warden. 22
(8) In respect to the action referred to in subsection (1)(m) or[and] (n) of this section, 23
the cause of action shall be deemed to accrue after the perform ance or inducement 24
or attempt to perform or induce the abortion. 25
Section 29. KRS 56.806 is amended to read as follows: 26
(1) Except when another lease term is approved by the secretary of the Finance and 27
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Administration Cabinet, the terms of all leases entered into pursuant to KRS 56.803 1
or 56.805 may provide for an initial lease term beginning on a date stated and 2
ending on June 30 in each year in which the General Assembly has convened in an 3
even-numbered-year regular session and appropriated funds for the operation of the 4
state government during the next ensuing biennium. The leases may grant the state 5
successive options for the automatic renewal of the lease upon the same terms and 6
conditions for additional renewal period s of twenty -four (24) months each, not to 7
exceed three (3) automatic renewal periods. Any lease containing provision for the 8
automatic renewal of the lease after the expiration of the initial lease term shall also 9
provide that the state may, upon written notice given to the lessor on or before April 10
15 of the year in which the initial or any automatic renewal term expires, elect not 11
to exercise its option for the automatic renewal of the lease term. Subject to the 12
agreement of the lessor, a lease in which t he final automatic renewal period has 13
expired, or will expire as of the end of the then current term, may be renewed upon 14
the same terms and conditions, provisions of KRS 56.803 to the contrary 15
notwithstanding. 16
(2) The Department for Facilities Management shall comply with the provisions of this 17
subsection when calculating rentable area for the purposes of a lease. 18
(a) If the Commonwealth is the only tenant on a single floor of a multistory 19
building, the rentable area shall be the entire area described by m easuring to 20
the inside finished surface of the dominant portion of the permanent outer 21
building walls, excluding any major vertical penetrations of the floor which 22
shall include[,] but not be limited to [,] stairways, elevator shafts, pipe chases, 23
vertical air ducts, and the enclosing wall of all such excluded areas. 24
Restrooms, corridors, and utility rooms which exclusively serve the floor 25
occupied by the Commonwealth shall be included as part of the rentable area. 26
(b) If the Commonwealth is the only tenant in a one (1) story or multistory 27
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building, rentable area shall be calculated pursuant to [ the provisions of] 1
paragraph (a) of this subsection except that those areas excluded pursuant to 2
paragraph (a) of this subsection shall be included as part of the rentable area. 3
(c) If the Commonwealth shares a floor with one (1) or more other tenants, the 4
rentable area shall be calculated by measuring from the inside finished surface 5
of the dominant portion of the per manent outer building walls to the office 6
side of every corridor wall or other wall separating the Commonwealth's 7
leased space from other adjacent rentable areas which shall include, but not be 8
limited to, space under the control of another tenant, public corridors, 9
restrooms, all common service and utility areas, stairways, elevator shafts, 10
vertical pipe chases, and air ducts. 11
(d) The Commonwealth's rentable area determined pursuant to paragraphs (a), 12
(b), and (c) of this subsection shall include columns a nd projections necessary 13
to the building. 14
(3) The Finance and Administration Cabinet may include in a lease an option to 15
purchase the leased property or a lease-purchase of the leased property. 16
(4) If the Finance and Administration Cabinet exercises an opt ion to purchase leased 17
property, the option price shall not exceed the fair market value of the leased 18
property as of the time the lessor and the Commonwealth enter into the option. Two 19
(2) competent and qualified real property[estate] appraisers shall each determine the 20
fair market value. Each real property[estate] appraiser shall be selected by the 21
Finance and Administration Cabinet and shall employ an accepted appraisal 22
technique. 23
(5) (a) Except as provided in paragraph (b) of this subsection, if the Fin ance and 24
Administration Cabinet includes in a lease the lease -purchase of the leased 25
property, two (2) competent and qualified real property[estate] appraisers 26
shall each determine the fair market value of the leased property as of the time 27
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the lessor and the Commonwealth enter into the lease. Each appraiser shall be 1
selected by the Finance and Administration Cabinet and shall employ an 2
accepted appraisal technique. The lease shall provide for an initial lease term 3
ending June 30 of the second year of the t hen current fiscal biennium of the 4
Commonwealth, with the option of the Commonwealth, as lessee, to extend 5
the term of the lease for a term of two (2) years from the expiration of each 6
extended term of the lease, until the original term of the lease has be en 7
extended for a total number of years agreed upon by the parties. The agreed 8
rental paid for the original term and for each of the full number of years for 9
which the term of the lease may be extended shall amortize the fair market 10
value of the leased pro perty as of the time the lessor and the Commonwealth 11
entered into the lease. The lease shall provide that the Commonwealth may, at 12
the expiration of the original or any extended term, purchase the leased 13
property at a stated price, which shall be the balan ce of the fair market value 14
of the leased property as of the time the lease was entered into which has not 15
been amortized by the payments of rent previously made by the 16
Commonwealth. 17
(b) If the Finance and Administration Cabinet includes lease -purchase of the 18
leased property in a lease with the federal government, the terms of the lease -19
purchase shall be determined through negotiations between the 20
Commonwealth and the federal government. 21
(6) Except when a lease incorporates a lease-purchase pursuant to subsection (5) of this 22
section, the Commonwealth shall reserve the right to cancel a lease upon written 23
notice within thirty (30) days. 24
Section 30. KRS 56.8175 is amended to read as follows: 25
When a built -to-suit lease is awarded to a firm that owns the land upon which the 26
building shall be built, the Commonwealth shall be granted an option to purchase the 27
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leased buildings, land, and any appurtenant facilities. The option price to be paid shall not 1
exceed its fair market value as of the time the option is exercised as determined by a 2
competent and qualified real property[estate] appraiser, selected by mutual agreement of 3
the parties, employing the reproduction cost new or other accepted appraisal techniques; 4
provided, however, that in no event shall the option price be less than a sum equal to the 5
remaining balance of any mortgage lien encumbering the property and securing the 6
repayment of moneys advanced to the owner for the original construction of the building, 7
plus an amount not to exceed ten percent (10%) of such mortgage balance. 8
Section 31. KRS 56.823 is amended to read as follows: 9
(1) The Finance and Administration Cab inet shall report information on leases and 10
lease modifications awarded pursuant to KRS 43.050, 48.111, and 56.800 to 56.823 11
to the Capital Projects and Bond Oversight Committee as required by this section. 12
(2) Any lease awarded pursuant to KRS 56.803, inc luding all lease renewals except 13
automatic renewals permitted under KRS 56.806(1), for which the annual rental 14
cost will exceed one hundred thousand dollars ($100,000) shall be reported to the 15
Capital Projects and Bond Oversight Committee after a proposed lease is arrived at 16
but before execution. The report shall include: 17
(a) The name of the agency that will occupy the premises; 18
(b) The name of the lessor; 19
(c) The terms of the lease; 20
(d) The reason for the lease; 21
(e) A copy of the writing required by KRS 56.803(17); 22
(f) A statement as to whether the Finance and Administration Cabinet complied 23
with the requirements established in KRS 43.050, 48.111, and 56.800 to 24
56.823. If the cabinet has not complied with any requirement, the cabinet shall 25
explain why; 26
(g) An explanation of why the Finance and Administration Cabinet chose this 27
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lessor over his competition; and 1
(h) A cost comparison between the cost per square foot of the leased space and 2
the average cost per square foot of comparable space the state leases in the 3
same county. If there are factors which make the comparison misleading, the 4
cabinet shall inform the committee of these factors. 5
(3) Any lease that incorporates a lease -purchase pursuant to KRS 56.806(5) shall be 6
reported to the Capital Projects and B ond Oversight Committee after a proposed 7
lease is arrived at but before execution. 8
(a) If a lease is awarded pursuant to KRS 56.803, the report shall include the: 9
1. Fair market value of the property as of the time the lessor and the 10
Commonwealth entered into the lease; 11
2. Name and qualifications of each of the two (2) real property[estate] 12
appraisers who determined the fair market value; 13
3. Appraisal technique each appraiser employed; and 14
4. Information required by subsection (2) of this section. 15
(b) 1. Except as provided in subparagraph 2. of this paragraph, if a lease is 16
awarded pursuant to KRS 56.805(2), the report shall include the: 17
a. Fair market value of the property at the time the lessor and the 18
Commonwealth entered into the lease; 19
b. Name and qualifications of each of the two (2) real 20
property[estate] appraisers who determined the fair market value; 21
c. Appraisal technique each appraiser employed; 22
d. Information required by [ paragraphs] subsection (2) (a), (b), (c), 23
(d), (f), (g), and (h)[ of subsection (2)] of this section; and 24
e. Procedure the department followed to obtain the lease. 25
2. If the federal government is the lessor, the report shall include the 26
substance of the lease-purchase. 27
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(4) Any lease awarded pursuant to KRS 56.805(2), including all lease renewals except 1
automatic renewals permitted under KRS 56.806(1), for which the annual rental 2
cost will exceed one hundred thousand dollars ($100,000) shall be reported to the 3
Capital Projects and Bond Oversight Committee after a propos ed lease is arrived at 4
but before execution. The report shall state the information required by[ paragraphs] 5
subsection (2)(a), (b), (c), (d), (f), (g), and (h)[ of subsection (2)] of this section and 6
the procedure the department followed to obtain the lea se. The report shall also 7
include a copy of the writing required by KRS 56.805(2). 8
(5) Any lease awarded as the result of an emergency described at KRS 56.805(3) shall 9
be reported to the Capital Projects and Bond Oversight Committee within thirty 10
(30) days after execution. The report shall include a copy of the certificate or the 11
certificate and the Governor's authorization, as appropriate, kept on file pursuant to 12
KRS 56.805(4) and shall further state: 13
(a) The information required by [ paragraphs] subsection (2)(a), (b), (f), (g), and 14
(h)[ of subsection (2)] of this section; 15
(b) The terms of lease before and after the emergency; and 16
(c) The procedure the department followed after the emergency to obtain a lease. 17
(6) Any built-to-suit lease awarded pursuant t o KRS 56.8169 shall be reported to the 18
Capital Projects and Bond Oversight Committee after a proposed lease is arrived at 19
but before execution. The report shall state the information required by[ paragraphs] 20
subsection (2)(a), (b), (c), (d), (f), (g), and (h)[ of subsection (2)] of this section. 21
The report shall also include: 22
(a) The written finding and Governor's approval required by KRS 56.8161; 23
(b) The selection committee's ranking of firms required by KRS 56.8169(15)(a); 24
(c) The written reason for requesting best-and-final offers, if best-and-final offers 25
are requested, made pursuant to KRS 56.8169(16)(b); 26
(d) The selection committee's selection of the best best -and-final offer, if best -27
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and-final offers are requested, made pursuant to KRS 56.8169(16)(d); 1
(e) The certificates signed pursuant to KRS 56.8171(2); and 2
(f) The report prepared by the employee of the Auditor of Public Accounts 3
pursuant to KRS 56.8171(3). 4
(7) If the Finance and Administration Cabinet decides to exercise an option to purchase 5
pursuant to KRS 56.806(4), the cabinet shall report to the Capital Projects and Bond 6
Oversight Committee after the decision is reached but before the purchase occurs. 7
The report shall include the: 8
(a) Fair market value of the property; 9
(b) Option price; 10
(c) Name and qualifications of each of the two (2) real property[estate] appraisers 11
who set the fair market value; 12
(d) Appraisal technique each appraiser employed; and 13
(e) Rent paid by the Commonwealth prior to the exercise of the option. 14
(8) (a) When, pursuant to KRS 56.806(5)(a), the Finance and Administration Cabinet 15
attempts to complete a lease -purchase through lease payments totally 16
amortizing the fair market value of the leased property as of the time the 17
lessor and the Commonwealth entered into the lease, t he cabinet shall report 18
to the Capital Projects and Bond Oversight Committee no more than ninety 19
(90) days before the final lease payment. The report shall include the: 20
1. Fair market value of the property at the time the lessor and the 21
Commonwealth entered into the lease; 22
2. Name and qualifications of each of the two (2) real property[estate] 23
appraisers who set the fair market value; 24
3. Appraisal technique each appraiser employed; and 25
4. Rent paid by the Commonwealth toward the purchase. 26
(b) When, pursuant to KRS 56.806(5)(b), the Finance and Administration Cabinet 27
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attempts to complete a lease -purchase, the cabinet shall report to the Capital 1
Projects and Bond Oversight Committee no more than ninety (90) days before 2
the final lease payment. The report shall include the terms of the lease 3
purchase. 4
(9) When, pursuant to KRS 56.806(5), the Finance and Administration Cabinet decides 5
to attempt to complete a lease-purchase prior to the total amortization, through lease 6
payments, of the fair market value of the leased property as of the time the lessor 7
and the Commonwealth entered into the lease, the cabinet shall report to the Capital 8
Projects and Bond Oversight Committee after the decision is r eached but before the 9
purchase occurs. The report shall state the information required by[ paragraph (a) or 10
(b) of] subsection (8)(a) or (b) of this section as appropriate. The report shall also 11
include the sum of money that must be paid in addition to ren t paid, in order to 12
complete the purchase. 13
(10) If the Finance and Administration Cabinet, pursuant to KRS 56.806(5), includes in 14
a lease the lease -purchase of the leased property and thereafter becomes aware that 15
a purchase will not be achieved, within th irty (30) days after the cabinet becomes 16
aware, it shall notify the Capital Projects and Bond Oversight Committee of the 17
circumstances preventing the purchase. 18
(11) (a) Except in the case of an emergency as provided in paragraph (b) of this 19
subsection, any modification to an existing lease, made pursuant to KRS 20
56.813, that is less than fifty thousand dollars ($50,000) shall be reported to 21
the Capital Projects and Bond Oversight Committee within thirty (30) days 22
after execution, and any modification to an e xisting lease, made pursuant to 23
KRS 56.813, that is fifty thousand dollars ($50,000) or more shall be reported 24
to the Capital Projects and Bond Oversight Committee before execution. In 25
either case, the report shall consist of: 26
1. The terms of the lease before and after modification; 27
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2. The reason for the modification; 1
3. The name of the lessor; 2
4. Any comments received from the public pursuant to KRS 56.813(4); 3
and 4
5. A statement as to whether the Finance and Administration Cabinet 5
complied with the require ments in KRS 56.813. If the cabinet has not 6
complied with any requirement, the cabinet shall explain why. 7
(b) Any modification to an existing lease which is required because of an 8
emergency as described at KRS 56.805(3) shall be reported to the Capital 9
Projects and Bond Oversight Committee within thirty (30) days after 10
execution. The report shall include a copy of the certificate or the certificate 11
and the Governor's authorization, as appropriate, kept on file pursuant to KRS 12
56.805(4) and shall further state: 13
1. The terms of the lease before and after modification; 14
2. The name of the lessor; 15
3. Any comments received from the public pursuant to KRS 56.813(4); 16
and 17
4. A statement that the Finance and Administration Cabinet complied with 18
the requirements in KRS 56.805(3) and (4) and in KRS 56.813. If the 19
cabinet has not complied with any requirement, the cabinet shall explain 20
why. 21
(12) Before beginning work on any improvements, renovations, or refitting of a leased 22
building under the provisions of KRS 56.813(2)( d), the cabinet shall report to the 23
Capital Projects and Bond Oversight Committee: 24
(a) A description of the project; 25
(b) Identification of the agency or agencies for which the improvements, 26
renovations, or refitting are being performed; 27
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(c) An estimate of the total cost of the project; 1
(d) The source of funds for the project; and 2
(e) All the information required by KRS 45.793. 3
Section 32. KRS 99.830 is amended to read as follows: 4
(1) If no feasible final plan can be devel oped for rehabilitation of the building in order 5
to bring it into compliance with all applicable housing, building, and nuisance code 6
requirements at a reasonable cost in relation to the present value of the building 7
without consideration of the value of t he land on which the building is located, the 8
conservator may submit a plan for demolition and removal of the building and all 9
debris from the property to the court and all parties in interest. 10
(2) The present value of the building in relation to the estimate for costs of 11
rehabilitation of the building in order to bring it into compliance with all applicable 12
housing, building, and nuisance code requirements may be established by evidence 13
of three (3) affidavits prepared by real property[estate] appraisers, qualified 14
building contractors, or qualified building inspectors. 15
(3) A plan for demolition shall require a reasonable effort to be made to salvage 16
reusable materials for credit against the cost of demolition. The proceeds of any 17
moneys received from the sale of salvaged materials shall be used or applied 18
against the cost of demolition and removal of the building and all debris from the 19
property. Proper records shall be kept showing application of sa les proceeds. Any 20
sale of salvaged materials may be made without the necessity of public 21
advertisement. 22
(4) Any party in interest shall be allowed to comment on or request a hearing on a plan 23
for demolition within thirty (30) days of receipt of the plan fo r demolition by 24
certified or registered mail. 25
(5) Upon demolition and removal of the building and all debris from the property, the 26
conservator shall submit to the court and all parties in interest a full accounting of 27
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all actions taken, all income and exp enditures received or incurred, and an estimate 1
of the conservator's fee. 2
(6) The conservator may then petition the court for authorization to terminate the 3
conservatorship through either a public or private sale. 4
Section 33. KRS 99.835 is amended to read as follows: 5
(1) Upon application of the conservator, the court may order the sale of the property 6
free and clear of all existing liens, claims, and encumbrances subject to the approval 7
and supervision of the court by pri vate sale pursuant to a written contract of sale 8
between the conservator and prospective purchaser, by public auction, or by any 9
other method that the court determines is fair to the owner of the property and all 10
parties in interest, is reasonable under th e circumstances, and will maximize the 11
return from the property to the conservatorship estate. 12
(2) Before entering an order authorizing the sale of the property by the conservator, the 13
court may require that the conservator provide evidence of the value of the property 14
by affidavit of three (3) real property[estate] appraisers or by any other evidence 15
that the court determines is appropriate. 16
(3) If the conservator has received a specific offer for sale that the conservator desires 17
to accept, the conservator shall provide to the court the identity of the buyer and the 18
proposed terms of the sale. If the conservator has not received a specific offer for 19
sale that the conservator desires to accept, the conservator shall provide to the court 20
the proposed procedures for conduct of the sale. 21
(4) Any sale of the property shall be made subject to the approval and supervision of 22
the court only after all of the following occur: 23
(a) The court finds the conditions that were the grounds for the petition have been 24
abated o r corrected by the conservator and the owner has not successfully 25
petitioned to terminate the conservatorship as set out in KRS 99.845; 26
(b) Notice of the proposed sale and an opportunity for a hearing at which all 27
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parties in interest may be heard is given in accordance with the Kentucky 1
Rules of Civil Procedure, provided that if no party objects to the proposed sale 2
or requests a hearing within thirty (30) days, the court may proceed without a 3
hearing; and 4
(c) The court issues an order of sale that sets for th the required procedures for or 5
terms of the sale. 6
(5) If the proposed sale is by public auction or any other method other than a private 7
sale approved by the court, the conservator shall conduct and promote the sale in a 8
manner anticipated to raise the highest and best sale price. 9
(6) If the proposed sale is pursuant to a specific offer the conservator desires to accept, 10
the court may finally approve the sale and no separate confirmation order is 11
required. If the proposed sale is by public auction or an y method other than a 12
private sale approved by the court, the conservator shall seek an order approving the 13
sale process and confirming the sale within ten (10) days of the date of the sale. 14
(7) Notwithstanding any provision of[to] KRS Chapter 134 to the c ontrary, any holder 15
of a local government lien may by written agreement waive or release all or a 16
portion of its lien priority upon sale of a property subject to the lien in accordance 17
with KRS 99.780 to 99.855. 18
Section 34. In accordance with Section 3 of this Act: 19
(1) Upon the effective date of this Act, the Real Property Appraisers Board shall 20
retain the current members of the Real Estate Appraisers Board to fulfill their current 21
terms. Upon the expiration of these ter ms, the Governor shall appoint their successors to 22
the Real Property Appraisers Board under Section 3 of this Act. This subsection shall not 23
prohibit a member from serving a second consecutive term; and 24
(2) Within one year after the effective date of this Act, the Governor shall 25
appoint the two additional members of the board. 26