Yes. Section 205 of the Occupational Code (Code), MCL 339.205, states that the department shall promulgate rules
which are necessary and appropriate to enable the department to fulfill its role under the Occupational Code. Section
308 of the Code, MCL 339.308, states that the Board shall promulgate rules as required in the article in which it is
created as are necessary and appropriate to fulfill its role. Section 2605 of the Code, MCL 339.2605, requires a
licensee who performs an appraisal to utilize the USPAP in effect at the time of the appraisal, and requires the
Department to utilize the AQB criteria regarding education, examination, and experience for licensure. Both the
USPAP and AQB Criteria are subject to amendments adopted by the Department.
There is no federal mandate requiring rules.
The following provisions allow for rule making: MCL 339.202, MCL 339.205, MCL 339.210, MCL 339.308, MCL
339.2601, MCL 339.2605, MCL 330.3101, MCL 445.2001, MCL 445.2011, MCL 445.2025, and MCL 445.2030.
B. If these rules exceed a federal standard, please identify the federal standard or citation, describe why it is
necessary that the proposed rules exceed the federal standard or law, and specify the costs and benefits arising out
of the deviation.
The proposed rules do not exceed a federal standard.
2. Compare the proposed rules to standards in similarly situated states, based on geographic location, topography,
natural resources, commonalities, or economic similarities.
The proposed rules are consistent with the standards required by the Code and AQB Criteria. All states require
appraisers to be licensed or certified to provide appraisals to federally regulated lenders and use AQB minimum
requirements. The proposed rules are similar to the requirements of other states in the Great Lakes region.
A. If the rules exceed standards in those states, please explain why and specify the costs and benefits arising out of
The proposed rules do not exceed standards in other states. All states must follow USPAP for state-licensed and state-
certified appraisers involved in federally related real estate transactions. States must also follow the AQB criteria,
which establishes the minimum education, experience, and examination requirements for real property appraisers to
obtain state certification. The PAREA program, which provides an alternative pathway for appraiser applicants to
fulfill their experience requirements by using technology in a virtual environment, is authorized, but not required by
the AQB criteria. Each state determines if the PAREA program is an acceptable experience pathway. Minnesota has
adopted PAREA through adoption by reference of the AQB criteria. Ohio has adopted PAREA. Pennsylvania is in the
process of adopting PAREA, and Illinois, Indiana, New York, and Wisconsin are discussing the adoption of PAREA.
3. Identify any laws, rules, and other legal requirements that may duplicate, overlap, or conflict with the proposed
The proposed rules are consistent with the Occupational Code; the ASB, USPAP, authorized by the United States
Congress; the Appraisal Subcommittee’s (ASC) review results; and the AQB Criteria. The Department is not aware of
any laws, rules, or legal requirements that duplicate, overlap, or conflict with the proposed rules.
A. Explain how the rules have been coordinated, to the extent practicable, with other federal, state, and local laws
applicable to the same activity or subject matter. This section should include a discussion of the efforts undertaken
by the agency to avoid or minimize duplication.
The proposed rules have been coordinated with the Occupational Code; the ASB USPAP, authorized by the United
States Congress; the ASC’s review results; and the AQB Criteria.
4. If MCL 24.232(8) applies and the proposed rules are more stringent than the applicable federally mandated
standard, provide a statement of specific facts that establish the clear and convincing need to adopt the more
MCL 24.232(8) does not apply.
5. If MCL 24.232(9) applies and the proposed rules are more stringent than the applicable federal standard,
provide either the Michigan statute that specifically authorizes the more stringent rules OR a statement of the
specific facts that establish the clear and convincing need to adopt the more stringent rules.
MCL 24.232(9) does not apply.