87R12552 TYPED     By: Nichols S.B. No. 996       A BILL TO BE ENTITLED   AN ACT   relating to performance of an evaluation of real property for use by   a financial institution          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1103.003, Occupations Code, is amended   by adding Subdivision (7-a) to read as follows:                (7-a)  "Financial institution" means:                      (A)  a depository institution as defined in   section 3 of the Federal Deposit Insurance Act [12 USCS § 1813]or a   subsidiary of a depository institution:                      (B)  a credit union as defined in section 101 of   the Federal Credit Union Act [12 USCS § 1752], a subsidiary of a   credit union or a credit union service organization;                      (C)  a person licensed to make regulated loans, as   provided by statute of this state;                      (D)  a person licensed or registered in this state   under Finance Code Chapter 156 or Finance Code Chapter 157.          SECTION 2.  Section 1103.004, Occupations Code, is amended   to read as follows:          Sec. 1103.004.  EFFECT OF CHAPTER. This chapter does not   prohibitapply to:                (1)  a person authorized by law fromin performing an   evaluation of real property for or providing an evaluation of real   property to another person;                (2)  a real estate broker licensed under Chapter 1101   or a sales agent acting under the authority of a sponsoring broker   fromin providing to another person a written analysis, opinion, or   conclusion relating to the estimated price of real property if the   analysis, opinion, or conclusion:                      (A)  is not referred to as an appraisal;                      (B)  is given in the ordinary course of the   broker's business; and                      (C)  is related to the actual or potential   acquisition, disposition, encumbrance, or management of an   interest in real property; or                (3)  an appraiser who is certified by a jurisdiction   other than this state from in performing an appraisal review of an   appraisal performed on real property in this state, if the   appraiser does not offer an opinion of value as part of the   appraisal review.                (4)  an employee of a financial institution or any   other person, engaged by a financial institution when performing   an evaluation of real property for the use of the financial   institution in a transaction for which the financial institution   would not be required to use the services of a State licensed or   State certified appraiser pursuant to federal regulations adopted   under Title XI of the federal Financial Institutions Reform,   Recovery, and Enforcement Act of 1989, nor does this Chapter   prohibit the procurement of an automated valuation model.   "Automated valuation model" means an automated system that is used   to derive a property value through the use of publicly available   property records and various analytic methodologies such as   comparable sales prices, home characteristics, and historical home   price appreciations.          SECTION 3.  Section 1103.405, Occupations Code, is amended   to read as follows:          Sec. 1103.405.  PROFESSIONAL STANDARDS. (a) Except as   provided by Subsection (b), a [A] person who holds a certificate,   license, or registration issued under this chapter shall comply   with:                (1)  the most current edition of the Uniform Standards   of Professional Appraisal Practice adopted by the Appraisal   Standards Board of the Appraisal Foundation; or                (2)  other standards provided by board rule that are at   least as stringent as the Uniform Standards of Professional   Appraisal Practice.          (b)  A certified or licensed appraiser is not required to   comply with the standards described by Subsection (a) when   providing an evaluation exempted from this Chapter under Section   1103.004(4)provided that the evaluation shall contain on the first   page the following notice that shall be clear and conspicuous:   "This is not an appraisal performed in accordance with the Uniform   Standards of Professional Appraisal Practice."          SECTION 4.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2021.