PROPOSED

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PUBLIC PROTECTION CABINET

Kentucky Real Property Appraisers Board

(New Administrative Regulation)

201 KAR 50:020.General requirements for certification and licensure.

RELATES TO:

KRS Chapter 324A, 12 U.S.C. § 3350

STATUTORY AUTHORITY:

KRS 324A.035

CERTIFICATION STATEMENT:

NECESSITY, FUNCTION, AND CONFORMITY:

KRS 324A.020 and 324A.035 require the Real Property Appraisers Board to promulgate administrative regulations necessary to carry out the provisions of KRS Chapter 324A. This administrative regulation is necessary to comply with Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (12 U.S.C. § 3331 through 12 U.S.C. § 3351), and KRS Chapter 324A. KRS 324A.035(3)(a) and (b) require the board to establish by administrative regulations requirements for classifications of appraisers and certification and licensure. KRS 324A.035(2) requires the board to establish by administrative regulation licensure of appraisers of real property in nonfederally related transactions. KRS 324A.065 requires the board to establish and collect fees for certification or licensure as an appraiser. KRS 12.245, KRS 12.334, KRS 12.354, and KRS 12.357 require state agencies to process applications of military servicemembers, veterans, and spouses with requirements specific to education, licensing, and fees. The Real Property Appraiser Qualification Criteria of the Appraiser Qualification Board of the Appraisal Foundation requires certain military servicemembers be held to the criteria in effect on January 1, 2026. This administrative regulation describes general requirements for certification and licensure, requirements for individuals applying under KRS 12.245, KRS 12.334, KRS 12.354, and KRS 12.357, and requirements for licensure of nonfederally related transactions.

Section 1.

Types of Appraisers.

(1)

An appraiser for a federally related transaction shall be a(n):

(a)

Associate real property appraiser;

(b)

Licensed residential real property appraiser;

(c)

Certified residential real property appraiser; or

(d)

Certified general real property appraiser.

(2)

The board may license nonfederal real property appraisers pursuant to Section 4 of this administrative regulation.

Section 2.

General Requirements for Certification or Licensure. Except as provided by Sections 3 and 4 of this administrative regulation, certification or licensure shall be granted if an applicant:

(1)

Meets the education requirements established by 201 KAR 050:030;

(2)

Meets the appraisal experience requirements established by 201 KAR 050:040;

(3)

Meets the examination requirements established by 201 KAR 050:050;

(4)

Completes and submits a notarized application form for the type of certification or licensure sought, incorporated by reference in Section 5 of this administrative regulation;

(5)

Submits to a national fingerprint-supported criminal background check in accordance with 201 KAR 050:080;

(6)

Pays the fees established in 201 KAR 050:010 Section 1(1)(a) and (b); and

(7)

For applications for licensed residential real property appraiser, certified residential real property appraiser, and certified general real property appraiser, pays the roster fee established in 201 KAR 050:010 Section 1(1)(g).

Section 3.

Armed Forces and Military Spousal Exception.

(1)

Applicants for licensure or certification seeking to claim an exception under KRS 12.245, KRS 12.334, KRS 12.354, or KRS 12.357, shall so indicate by marking the appropriate selection box and shall submit supporting documentation.

(2)

The board shall review an application claiming an exception under KRS 12.245, KRS 12.334, KRS 12.354, or KRS 12.357, within thirty (30) days of receipt by the board.

(3)

An applicant who was a member of a Reserve component of the U.S. Armed Forces, who was pursuing an appraiser licensure or certification prior to December 1, 2011, and who was called to active duty between December 1, 2011 and December 31, 2014, may satisfy the examination, education, and experience requirements under the 2008 AQB Real Property Appraiser Qualification Criteria instead of the requirements in this administrative regulation for a time period equal to the applicant's time of active duty, plus twelve (12) months.

Section 4.

Licensed Nonfederal Real Property Appraisers.

(1)

An applicant shall be licensed as a nonfederal real property appraiser if:

(a)

The applicant possesses a:

1.

High school diploma; or

2.

General equivalency diploma; and

(b)

Applies to the board on the Application for Nonfederal Real Property Appraiser License.

(2)

A licensed nonfederal real property appraiser shall not be required to meet the conditions established for the:

(a)

Certification of:

1.

General real property appraisers; or

2.

Residential real property appraisers.

(b)

Licensure of licensed residential real property appraisers.

(3)

A licensed nonfederal real property appraiser shall not perform real property appraisals of property that is the subject of a federally related transaction.

(4)

The provisions of this section shall not apply to persons who, prior to April 7, 1992, have engaged in the appraisal of real property for at least ten (10) years. Applicants who wish to be limited to appraisals of nonfederally related transactions, and who have engaged in the appraisal of real property for at least ten (10) years prior to April 7, 1992, shall be licensed as nonfederal real property appraisers.

Section 5.

Incorporation by Reference.

(1)

The following material is incorporated by reference:

(a)

"Nonfederal Real Property Appraiser Application," KRPAB Form 001, July 2026.

(b)

"Associate Real Property Appraiser Application," KRPAB Form 002, July 2026;

(c)

"Licensed Residential Real Property Appraiser Application," KRPAB Form 003, July 2026;

(d)

"Certified Residential Real Property Appraiser Application," KRPAB Form 004, July 2026;

(e)

"Certified General Real Property Appraiser Application," KRPAB Form 005, July 2026; and

(f)

"Uniform Standards of Professional Appraisal Practice (USPAP)," 2024 Edition, published by The Appraisal Foundation.

(2)

This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Real Property Appraisers Board, 500 Mero Street, Frankfort, Kentucky 40601, (502) 564-4000, Monday through Friday, 8 a.m. to 4:30 p.m. Eastern Time, and is available on the board website, krpab.ky.gov.

(3)

The Uniform Standards of Professional Appraisal Practice (USPAP), 2024 Edition, is also available online at https://www.appraisalfoundation.org.

HISTORY: COMPILER'S NOTE: 2025 RS HB 6, enacted by the General Assembly on March 27, 2025, altered the information to be provided at the time an administrative regulation is filed. Aside from formatting changes necessary to upload the regulation into the LRC's publication application, this regulation has been published as submitted by the agency.

201 KAR 050:020

TOM VEIT, Executive Director

APPROVED BY AGENCY: July 15, 2026

FILED WITH LRC: July 15, 2026 at 11:47 a.m.

PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on September 30, 2026, at 1:00 P.M. Eastern Time at the Mayo-Underwood Building, Room 247CE, 500 Mero Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing was received by that date, the hearing may be canceled. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through September 30, 2026. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

CONTACT PERSON: Name: Tom Veit, Title: Executive Director, Agency: Kentucky Real Property Appraisers Board Address: 500 Mero Street Phone Number: (502) 564-4000 (office) Fax: (502) 564-4818 Email: Tom.Veit@ky.gov Link to PPC public comment portal: https://ppc.ky.gov/reg_comment.aspx.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

Contact Person:

Tom Veit, Executive Director, Kentucky Real Property Appraisers Board Phone: (502) 564-4000 Email: Tom.Veit@ky.gov

Subject Headings:

Boards and Commissions, Real Estate, Licensing, Fees

(1) Provide a brief summary of:

(a) What this administrative regulation does:

This regulation provides general requirements for licensure or certification by the Kentucky Real Property Appraisers Board (“Board”).

(b) The necessity of this administrative regulation:

This regulation is necessary to establish requirements for certification and licensure.

KRS 324A.035 requires the Board to promulgate administrative regulations for certification or licensure of appraisers who perform appraisals of real property in federally related transactions and for certification or licensure of appraisers of real property in nonfederally related transactions.

(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:

This administrative regulation will clarify the application process and general standards for certification and licensure of appraisers in Kentucky.

(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

(a) How the amendment will change this existing administrative regulation:

Not applicable.

(b) The necessity of the amendment to this administrative regulation:

Not applicable.

(d) How the amendment will assist in the effective administration of the statutes:

Not applicable.

(3) Does this administrative regulation or amendment implement legislation from the previous five years?

Yes, this administrative regulation implements the following legislation enacted within the previous five years: H.B. 172, 2021 Ky. Acts ch. 21 (eff. June 29, 2021); H.B. 403, 2024 Ky. Acts ch. 182 (eff. July 15, 2024); and H.B. 355, 2026 Ky. Acts ch. 172 (eff. July 15, 2026).

(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:

This administrative regulation will affect the 1,281 appraisers, 145 associate appraisers, 2 nonfederal appraisers, and the 99 appraisal management companies (“AMCs”) currently licensed by the Board, as well as all new applicants for licensure.

(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:

Prospective applicants for licensure must comply with the requirements set forth in this administrative regulation.

(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):

Applicants for licensure will be required to pay the requisite fees prescribed by this regulation and 201 KAR 050:010.

Prospective applicants for licensure will be able to identify requirements for licensure.

(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

(a) Initially:

The initial costs associated with administering this administrative regulation are currently indeterminable because the staffing needs and timing of personnel hires for the newly created Kentucky Real Property Appraisers Board, H.B. 355, 2026 Ky. Acts ch. 172 (eff. July 15, 2026), have not yet been determined.

(b) On a continuing basis:

The continuing costs associated with administering this administrative regulation are currently indeterminable because the staffing needs and timing of personnel hires for the newly created Kentucky Real Property Appraisers Board, established H.B. 355, 2026 Ky. Acts ch. 172 (eff. July 15, 2026), have not yet been determined.

(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:

The Kentucky Real Property Appraisers Board was created by H.B. 355, 2026 Ky. Acts ch. 172 (eff. July 15, 2026) and has a provisional budget approved by the Board. This budget includes three employees who will implement and enforce this administrative regulation.

(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:

It is currently indeterminable whether an increase in fees or funding will be necessary to implement this administrative regulation because the staffing needs and timing of personnel hires for the newly created Kentucky Real Property Appraisers Board, established H.B. 355, 2026 Ky. Acts ch. 172 (eff. July 15, 2026), have not yet been determined.

(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:

This administrative regulation does not establish any fees and neither directly nor indirectly increases any fees.

(10) TIERING: Is tiering applied?

(Explain why or why not): Tiering is applied for military applicants in order to comply with the mandatory requirements of KRS 12.245, KRS 12.334, KRS 12.354, and KRS 12.357.

FISCAL IMPACT STATEMENT

(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:

. KRS 324A.015, KRS 324A.020, KRS 324A.035, KRS Chapter 324A, 12 U.S.C. § 3350

(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:

This regulation is expressly authorized by the following acts of the Kentucky General Assembly: 1990 Ky. Acts ch. 383, sec. 2, effective July 13, 1990, as amended by 1992 Ky. Acts ch. 247, sec. 2, effective April 7, 1992, 2013 Ky. Acts ch. 46, sec. 8, effective June 25, 2013, 2017 Ky. Acts ch. 178, sec. 27, effective April 11, 2017, 2021 Ky. Acts ch. 21, sec. 1, effective June 29, 2021, 2024 Ky. Acts ch. 182, sec. 10, effective July 15, 2024, and 2026 Ky. Acts ch. 172, sec. 3, effective July 15, 2026; 1990 Ky. Acts ch. 383, sec. 3, effective July 13, 1990, as amended by 2017 Ky. Acts ch. 178, sec. 39, effective April 11, 2017, 2024 Ky. Acts ch. 182, sec. 11, effective July 15, 2024, and 2026 Ky. Acts ch. 172, sec. 4, effective July 15, 2026; and 1990 Ky. Acts ch. 383, sec. 6, effective July 13, 1990, as amended by 1992 Ky. Acts ch. 247, sec. 4, effective April 7, 1992, 2013 Ky. Acts ch. 46, sec. 10, effective June 25, 2013, 2021 Ky. Acts ch. 21, sec. 2, effective June 29, 2021, and 2026 Ky. Acts ch. 172, sec. 17, effective July 15, 2026.

(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:

The Kentucky Real Property Appraisers Board (“Board”) is the agency responsible for implementing this regulation. No other divisions of state or local government entities should be affected.

(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):

1. Expenditures:

For the first year:

The costs associated with administering this administrative regulation for the first year are currently indeterminable because the staffing needs and timing of personnel hires for the newly created Kentucky Real Property Appraisers Board, established H.B. 355, 2026 Ky. Acts ch. 172 (eff. July 15, 2026), have not yet been determined.

For subsequent years:

The costs associated with administering this administrative regulation for subsequent years are currently indeterminable because the staffing needs and timing of personnel hires for the newly created Kentucky Real Property Appraisers Board, established H.B. 355, 2026 Ky. Acts ch. 172 (eff. July 15, 2026), have not yet been determined.

2. Revenues:

For the first year:

The revenue generated by this administrative regulation is currently indeterminable because the number of licensees and new applicants who will pay fees under the Kentucky Real Property Appraisers Board has not yet been determined.

For subsequent years:

3. Cost Savings:

For the first year:

There are no cost savings to administer this administrative regulation for the first year.

For subsequent years:

There are no cost savings to administer this administrative regulation for subsequent years.

(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):

None

(b) Estimate the following for each affected local entity identified in (4)(a):

1. Expenditures:

For the first year:

N/A

For subsequent years:

N/A

2. Revenues:

For the first year:

N/A

For subsequent years:

N/A

3. Cost Savings:

For the first year:

N/A

For subsequent years:

N/A

(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):

N/A

(b) Estimate the following for each regulated entity identified in (5)(a):

1. Expenditures:

For the first year:

N/A

For subsequent years:

N/A

2. Revenues:

For the first year:

N/A

For subsequent years:

N/A

3. Cost Savings:

For the first year:

N/A

For subsequent years:

N/A

(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)

(a) Fiscal impact of this administrative regulation:

The Board will receive the fees as detailed in this administrative regulation and 201 KAR 050:010.

(b) Methodology and resources used to reach this conclusion:

Methodology and resources used are the fiscal department within the Public Protection Cabinet, Division of Real Property Boards.

(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):

(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):

This administrative regulation is not anticipated to have a major economic impact as defined by KRS 13A.010(14).

(b) The methodology and resources used to reach this conclusion:

Methodology and resources used are the fiscal department within the Public Protection Cabinet, Division of Real Property Boards.

FEDERAL MANDATE ANALYSIS COMPARISON

(1) Federal statute or regulation constituting the federal mandate.

12 U.S.C. 3345, 12 U.S.C. 3347

(2) State compliance standards.

KRS 324A.020, KRS 324A.035, KRS 324A.065, KRS 12.245, KRS 12.334, KRS 12.354, KRS 12.357

(3) Minimum or uniform standards contained in the federal mandate.

12 U.S.C. 3345, 12 U.S.C. 3347

(4) Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate?

This administrative regulation does not impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate.

(5) Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements.

This administrative regulation does not impose a stricter standard, or additional or different responsibilities or requirements.