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Effective January 1, 1991

ARTICLE I PURPOSE

The purpose of this Regulation is to:

(i) State, define and coordinate the powers and duties of the Ethics and Counseling Committee, the Divisions of the Ethics and Counseling Committee and the Regional Panels;

(ii) Establish uniform rules of procedure for the investigation, evaluation and routing of all information indicating that a Member or an Affiliate may have failed to observe the ethical requirements of the Appraisal Institute's Code of Professional Ethics or the requirements of the Appraisal Institute's Standards of Professional Appraisal Practice; may have been convicted of a serious crime committed prior to becoming a Member or an Affiliate; or may have knowingly made false statements, submitted false information, or failed to fully disclose information requested in an application for admission to candidacy;

(iii) Establish uniform rules of procedure governing disciplinary proceedings when it is alleged that a Member or an Affiliate has failed to observe the ethical requirements of the Appraisal Institute's Code of Professional Ethics; has been convicted of a serious crime committed prior to becoming a Member or an Affiliate; or has knowingly made false statements, submitted false information, or failed to fully disclose information requested in an application for admission to candidacy;

(iv) Establish uniform rules of procedure governing the appeal of proceedings conducted pursuant to this Regulation;

(v) Establish uniform rules of procedure governing review and counseling proceedings when it is alleged that a Member or an Affiliate
has failed to observe the requirements of the Appraisal Institute's Standards of Professional Appraisal Practice;

(vi) State and define the rights, duties and obligations of Members and Affiliates with respect to disciplinary proceedings conducted
pursuant to this Regulation and with respect to review and counseling proceedings conducted pursuant to this Regulation; and

(vii) Establish uniform rules of procedure governing appeals of automatic terminations of membership for failure to meet mandatory continuing education requirements.

(viii) Establish uniform rules of procedure governing professional practice cases that were under the Society of Real Estate Appraiser's Regulation No. 7 as of the close of business on December 31, 1990.

 

ARTICLE II

DEFINITIONS

As used in this Regulation, the following terms shall have the following meanings unless the context clearly indicates that another meaning is intended:

(i) Institute shall mean the Appraisal Institute, an Illinois not-for-profit corporation.

(ii) AIREA shall mean the American Institute of Real Estate Appraisers, an Illinois not-for profit corporation

(iii) Society shall mean the Society of Real Estate Appraisers, an Illinois not-for-profit
corporation.

(iv) Board of Directors shall mean the Board of Directors of the Appraisal Institute.

(v) Executive Committee shall mean the national Executive five Committee of the Appraisal Institute.

(vi) Member shall mean a Member of the Appraisal Institute.

(vii) Affiliate, for purposes of Regulation No. 6, shall mean a State-Accredited Affiliate of the Appraisal Institute or a candidate for membership in the Appraisal Institute.

(viii) Related Training Program shall mean the written or one-day training program of the Institute that is intended to acquaint members of the National Committee, the Divisions of the National Committee, and the Regional Panels with their responsibilities under Regulation No. 6.

(ix) Society's Regulation No. 7 shall mean the Regulation No. 7 of the Society of Real Estate Appraisers as amended in the Appendix to the
Appraisal Institute's Regulation No. 6.

(x) Code of Professional Ethics shall mean the Appraisal Institute's Code of Ethics or one of its predecessors (AIREA's Code of Professional Ethics, the Society's Code of Ethics, or the Society's Standards of Professional Conduct).

(xi) Standards of Professional Practice shall mean the Appraisal Institute's Standards of Professional Appraisal Practice or one of its predecessors in the AIREA or the Society.

ARTICLE III

ETHICS AND COUNSELING COMMITTEE

PART A. COMPOSITION AND MEETINGS

Section 1. Membership of Committee. The Ethics and Counseling Committee shall consist of a Chair, a Vice Chair and six (6) ex officio members, all of whom shall be Members in good standing. The six (6) ex officio members shall be the Chair of the Screening Policy Division, the Chair of the Ethics Administration Division, the Chair of the Appellate Division, the Chair of the Review and Counseling Division, the Director of Screening and the Vice Chair of the Appraisal Standards Board.

Section 2. Appointment and Tenure. The Chair and Vice Chair of the National Committee shall be appointed to the Committee by the President of the Appraisal Institute for a tenure of one (1) year commencing on January 1, with the approval of the Board of Directors at its first meeting of the calendar year. The appointment and tenure of each ex officio member of the National Committee shall be controlled by the Bylaws and Regulations of the Appraisal Institute relating to the office that qualifies such ex officio member for the National Committee. All business conducted by the National Committee shall be deemed valid regardless of the Board of Directors' subsequent actions with respect to approval of committee appointments. The Chair, Vice Chair and ex officio members of the National Committee shall be eligible for reappointment.

Potential appointees to the National Committee shall submit an Attestation and Verification form similar in substance to that described in this Regulation.

To be eligible to serve as a Member of the National Committee, a Member must have:

(a) taught or attended the Standards of Professional Practice Course or passed the Standards of Professional Practice examination at any time prior to appointment; and

(b) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice course examination or taught or attended the one-day Standards of Professional Practice Update seminar within a period commencing three (3) years prior to the date the Member's term begins and ending 180 days subsequent to such date; and

(c) completed the related Training Program within a period commencing three (3) years prior to the date the Member's term begins and ending 180 days subsequent to such date.

As an alternative to the above three requirements, a Member who is appointed to the National Commit

Team for a term commencing in 1991, 1992, or 1993 shall be eligible to serve on the National Committee if the Member:

(a) taught or attended the Society's two-day Professional Practice Seminar offered between December 1, 1989, and December 31, 1990, or passed that seminar's examination, and
(b) completes the Appraisal Institute's one-day Training Program concerning Regulation No. 6, the Code of Professional Ethics, Supplemental Standards, and Guide notes within one year of the commencement of the member's term.

To be eligible to serve upon reappointment to the National Committee, (or upon appointment to the National Committee after serving as a member of a Division or a Regional Subcommittee), a member must have:

(a) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice course examination; or

(b) taught or attended the one-day Standards of Professional Practice Update seminar; or

(c) certified to the Ethics and Counseling Committee Chair that he or she has studied a Synopsis of recent changes to Regulation No. 6, the Code of Professional Ethics and the Standards of Professional Practice, within a period commencing three (3) years prior to the date the Member's term begins upon reappointment to the National Committee and ending 180 days subsequent to such date.If a member appointed or reappointed to the National Committee fails to successfully complete the appropriate requirements as defined in this section within the specified time period, such member shall not be eligible to continue to serve on the National Committee.

Section 3. Vacancies. If a vacancy occurs with respect to an ex officio member of the National Committee, the President of the Appraisal Institute shall fill such vacancy in accordance with the Bylaws and Regulations of the Appraisal Institute relating to the office that qualified such ex officio member for the National Committee. If a vacancy occurs with respect to any other member of the National Committee, the President shall fill such vacancy for the unexpired term and this interim appointment shall become effective immediately, provided, however, that if a meeting of the Board of Directors is held prior to the expiration of the interim appointee's term, then such interim appointment shall be submitted to the Board of Directors at such meeting for ratification and approval. If the Board of Directors shall fail to ratify and approve such interim appointment at such meeting, such interim appointment shall terminate and shall be of no further force and effect.

Section 4. Time and Place of Meetings. The National Committee shall meet during the Appraisal Institute's first quarter meetings each year. The National Committee shall also meet at such other times and places as may be designated by the Board of Directors, the national Executive Committee, or the President of the Appraisal Institute.

PART B. POWERS AND DUTIES

Section 1. Supervision of Peer Review Activities. The National Committee shall exercise general supervision and control over the administration of all peer review proceedings of the Appraisal Institute. This general supervision and control shall include, but shall not be limited to, all disciplinary proceedings taken to enforce the Appraisal Institute's Code of Professional Ethics and all review and counseling proceedings taken to implement the Appraisal Institute's Standards of Professional Practice and all peer review proceedings in the Professional Practice Division.

The general supervision and control over peer review activities exercised by the National Committee shall be exercised in conformity with general policy guidelines established by the Board of Directors and the Executive Committee. No peer review activities or programs that involve a financial commitment shall be commenced by the National Committee unless such financial commitment is an approved item in the budget of the Appraisal Institute or has received prior approval of the national Executive Committee.

Section 2. Approval of Rules. All procedural rules prepared for adoption by any Division of the National Committee shall be submitted to the National Committee for review and shall not become effective until approved by the National Committee.

Section 3. Termination of Pending Matters. The National Committee shall have the power to terminate any pending peer review investigation or disciplinary proceeding when, in the opinion of the National Committee, further proceedings under this Regulation would be inappropriate or would serve no useful purpose due to the serious or extended physical or mental illness or disability of the Member or Affiliate involved. The National Committee shall also have the power to terminate any pending peer review investigation or disciplinary proceeding when it determines that (i) the actions or conduct of the Member or Affiliate involved in such peer review investigation or disciplinary proceeding were the subject of a closed case or are the subject of another pending case; (ii) the continuation of the peer review investigation or disciplinary proceeding would violate the civil or criminal law of the jurisdiction in which such matter is pending; or (iii) the continuation of the peer review investigation or disciplinary proceeding would serve no useful purpose because procedural errors or decisions would make any disciplinary action unenforceable.

Section 4. Other Duties. The National Committee shall perform such other duties as may be assigned to it by the Board of Directors, the Executive Committee or the President of the Appraisal Institute.

PART C. DIVISIONS OF THE NATIONAL COMMITTEE

The National Committee shall organize and maintain the following as Divisions of the National Committee

1. Screening Policy Division.

2. Ethics Administration Division.

3. Appellate Division.

4. Review and Counseling Division.

5. Professional Practice Division.

ARTICLE IV

SCREENING POLICY DIVISION

PART A. COMPOSITION AND MEETINGS

Section 1. Membership of Division. The Screening Policy Division shall consist of a Chair, a Vice Chair and three (3) other members, all of whom shall be Members in good standing. One of the members of the Screening Policy Division, other than the Chair and Vice Chair, shall be experienced in the processing of disciplinary proceedings; one shall be experienced in the processing of review and counseling proceedings; and one shall be experienced in teaching Institute, AIREA, or Society courses or seminars.

Section 2. Appointment and Tenure. The Chair, Vice Chair and other members of the Screening Policy Division shall be appointed to the Division by the President of the Appraisal Institute, with the approval of the Board of Directors. All business conducted by the Screening Policy Division shall be deemed valid regardless of the Board of Directors' subsequent actions with respect to approval of Division appointments.

The Chair and Vice Chair of the Screening Policy Division shall be appointed to the Division for a term of one (1) year commencing on January 1. The other members of the Screening Policy Division shall be appointed to the Division for terms of approximately three (3) years with staggered expiration dates so that one-third of such tenures shall expire each year. Each such term shall commence on January 1 and expire on the third succeeding December 31. The Chair, Vice Chair, and all other members of the Screening Policy Division shall be eligible for reappointment to the Division.

Potential appointees to the Screening Policy Division shall submit an Attestation and Verification form similar in substance to that described in this Regulation.

To be eligible to serve as a member of the Screening Policy Division, a Member must have:

(a) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice examination at any time prior to appointment; and

(b) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice course examination or taught or attended the one-day Standards of Professional Practice Update seminar within a period commencing three (3) years prior to the date the Member's term begins and ending 180 days subsequent to such date; and

(c) completed the related Training Program within a period commencing three (3) years prior to the date the Member's term begins and ending 180 days subsequent to such date.

As an alternative to the above three requirements, a Member who is appointed to the Screening Policy Division for a term commencing in 1991,1992, or 1993 shall be eligible to serve on the Screening Policy Division if the Member:

(a) taught or attended the Society's two-day seminar offered between December 1, 1989, and December 31, 1990, or passed that semi national examination; and

(b) completes the Appraisal Institute's one-day Training Program concerning Regulation No. 6, the Code of Professional Ethics, Supplemental Standards, and Guide notes within one year of the commencement of the Member's term. To be eligible to serve upon reappointment to the Screening Policy Division, (or upon appointment to the Screening Policy Division after serving as a member of another Division, the National Committee, or a regional subcommittee), a member must have:

(a) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice course examination; or

(b) taught or attended the one-day Standards of Professional Practice Update seminar; or

(c) certified to the Ethics and Counseling Committee

Chair that he or she has studied a Synopsis of recent changes to Regulation No. 6, the Code of Professional Ethics and the Standards of Professional Practice, within a period commencing three (3) years prior to the date the Member's term begins upon reappointment to the Screening Policy Division and ending 180 days subsequent to such date.

If a Member appointed or reappointed to the Screening Policy Division fails to successfully complete the appropriate requirements as defined in this section within the specified time period, such Member shall not be eligible to continue to serve on the Screening Policy Division.

Section 3. Vacancies. If a vacancy occurs in the membership of the Screening Policy Division, the President of the Appraisal Institute shall fill such vacancy for the unexpired term and such interim appointment shall become effective immediately, provided, however, that if a meeting of the Board of Directors is held prior to the expiration of the & appointee's term, then such interim appointment shall be submitted to the Board of Directors at such meeting for ratification and approval. If the Board (Directors shall fail to ratify and approve such internal appointment at such meeting & such interim appointment shall terminate and be of no further force and effect.

Section 4. Time and Place of Meetings. The Screen. Policy Division shall meet during the Appraisal Institute's first quarter meetings each year. The Screening Policy Division shall also meet at such other times and places as may be designated by the Ethics and Counseling Committee Chair or the Chair of the Screening Policy Division.

PART B. POWERS AND DUTIES

Section 1. Development of Screening Policies and Procedures. The Screening Policy Division shall develop and issue guidelines explaining (a) the policies, procedures and techniques to be followed in screening the information, statements or complaints received by the Appraisal Institute which indicate that a Member or an Affiliate may have failed to observe the ethical requirements of the Appraisal Institute's Code of Professional Ethics or the requirements of the Appraisal Institute's Standards of Professional Practice, (b) the policies and procedures to be followed in routing each file to the appropriate Division for processing in accordance with this Regulation, and (c) the policies and procedures to be followed in identifying those allegations of a violation of the Code of Professional Ethics which should not be processed by the Ethics Administration Division unless and until a final determination of the factual issues involved has been made by the appropriate civil or criminal court.

Section 2. Specific Assistance to Director of Screening. At the request of the Director of Screening & the Screening Policy Division shall consider a particular file and assist the Director of Screening in determining the appropriate action to be taken with respect to such file. If a member of the Screening Policy Division ascertains that he or she has a conflict of interest with respect to any matter referred to the Screening Policy Division, such member shall take no part in the consideration of such matter.

Section 3. Evaluation of Screening Staff. The Screening Policy Division shall periodically review and evaluate the decisions and actions taken by the Screening Staff to determine whether or not the decisions and actions of the Screening Staff are consistent with the screening policies established by the Screening Policy Division.

Section 4. Other Duties. The Screening Policy Division shall perform such other duties as may be assigned to it by the Ethics and Counseling Committee Chairman

ARTICLE V

ETHICS ADMINISTRATION DIVISION

PART A. COMPOSITION AND MEETINGS

Section 1. Membership of Division. The Ethics Administrator Division shall consist of a Chair, a Vice Chair and one Regional Member from each of the regions as may be established from time to time by the Board of Directors. The Chair, Vice Chair, and Regional Members of the Ethics Administration Division shall be Institute Members in good standing.

At the discretion of the President, the President may also appoint one or more Assistant Regional Members for any Region of the Appraisal Institute. An Assistant Regional Member shall be appointed for a term of approximately three years. If there is more than one Assistant Regional Member in one Region, their terms shall be staggered. Each such Assistant Regional Member shall be a Member in good standing.

Section 2. Appointment and Tenure. The Chair, Vice Chair and other members of the Ethics Administration Division shall be appointed to the Division by the President of the Appraisal Institute with the approval of the Board of Directors. All business conducted by the Ethics Administration Division shall be valid regardless of the Board of Directors' subsequent actions with respect to approval of Committee appointments.

The Chair and Vice Chair of the Ethics Administration Division shall be appointed to the Division for a term of approximately one (1) year commencing on January 1. The other members of the Ethics Administration Division shall be appointed to the Division for terms of approximately three (3) years with staggered expiration dates so that approximately one-third of such terms shall expire each year. Each such term shall commence on January 1 and expire on December 31 of the third succeeding calendar year. ne Chair, Vice Chair and all other members of the Ethics Administration Division shall be eligible for reappointment to the Division.

Potential appointees to the Ethics Administration Division, as well as potential appointees to be Assistant Regional Members, shall submit an Attestation and Verification form similar in substance to that described in this Regulation.

To be eligible to serve as Member of the Ethics Administration Division, a Member must have:

(a) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice examination at any time prior to appointment; and

(b) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice course examination or taught or attended the one-day Standards of Professional Practice Update seminar within a period commencing three (3) years prior to the date the Member's term begins and ending 180 days subsequent to such date; and

(c) completed the related Training Program within a period commencing three (3) years prior to the date the Member's term begins and ending 180 days subsequent to such date.

As an alternative to the above three requirements, a member who is appointed to the Ethics Administration Division, or as an Assistant Regional Member, for a term commencing in 1991, 1992, or 1993 shall be eligible to serve on the Ethics Administration Division or as an Assistant Regional Member, if the Member:

(a) taught or attended the Society's two-day Professional Practice Seminar offered between December 1, 1989, and December 31,1990, or passed that seminar's examination; and

(b) completes the Appraisal Institute's one-day Training Program concerning Regulation No. 6, the Code of Professional Ethics, Supplemental Standards, and Guide notes within one year of the commencement of the member's term.

To be eligible to serve upon reappointment to the Ethics Administration Division, (or upon appointment to the Ethics Administration Division after serving as a member of another Division, the National Committee or a Regional Subcommittee), a member must have:

(a) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice course examination or

(b) taught or attended the one--day Standards of Professional Practice Update seminar; or

(c) certified to the Ethics and Counseling Committee Chair that he or she has studied a synopsis of recent changes to Regulation No. 6, the Code of Professional Ethics, and the Standards of Profes sional Practice, within a period commencing three (3) years prior to the date the Member's term begins upon reappoint ment to the Ethics Administration Division and ending 180 days subsequent to such date.

If a Member appointed or reappointed to the Ethics Administration Division, or as Assistant Regional Member, fails to successfully complete the appropriate requirements as defined in this section within the specified time period, such Member shall not be eligible to continue to serve on the Ethics Administration Division.

Section 3. Vacancies. If a vacancy occurs in the membership of the Ethics Administration Division, the President of the Appraisal Institute shall fill such vacancy for the unexpired term and such interim appointment shall become effective immediately, provided, however, that if a meeting of the Board of Directors is held prior to the expiration of the interim appointee's term, then such interim appointment shall be submitted to the Board of Directors at such meeting for ratification and approval. If the Board of Directors shall fail to ratify such interim appointment at such meeting, such interim appointment shall terminate and be of no further force and effect.

Section 4. Time and Place of Meetings. The Ethics Administration Division shall meet during the Appraisal Institute's first quarter National meetings each year. The Ethics Administration Division shall also meet at such other times and places as may be designated by the Ethics and Counseling Committee Chair or the Chair of the Ethics Administration Division.

PART B. POWERS AND DUTIES OF THE CHAIR OF THE ETHICS ADMINISTRATION DIVISION RELATING TO ETHICAL RULE 5-2

If the Chair of the Ethics Administration Division has received from the Director of Screening a referral of a matter concerning Ethical Rule 5-2 (or its predecessors) of the Appraisal Institute's Code of Professional Ethics, and

(a) if the Chair determines that, in his or her view, the Member or Affiliate has used or referred to the Appraisal Institute or its professional designations in a manner that is misleading, or has used the registered marks, logos, or emblems of the Appraisal Institute in a manner contrary to Regulation No. 5, the Chair of the Ethics Administration Division shall promptly notify the Member or Affiliate that such violations must cease.

(i) If the Chair of the Ethics Administration Division receives proof that the Member or Affiliate has corrected the violation, the Chair shall mark the file "CLOSED" and shall deliver the file to the Secretary of the Ethics Administration Division at the National Headquarters of the Appraisal Institute.

(ii) If the Member or Affiliate fails or refuses to correct such violations, the Chair of the Ethics Administration Division shall refer the matter to the Ethics Administration Division for assignment to the appropriate Regional Member and for processing in accordance with this Regulation. ne Chair of the Ethics Administration Division shall also notify the Member or Candidate of such file referral.

(b) if the Chair of the Ethics Administration Division determines that there has -not been a violation of Ethical Rule 5-2 (or its predecessors), the Chair shall mark the file "CLOSED" and shall deliver the file to the Secretary of the Ethics Administration Division at the National Headquarters of the Appraisal Institute. The Chair of the Ethics Administration Division may designate the Vice Chair to be responsible for the processing of a file referred to the Chair pursuant to Article VIII, Part D, Section 5. The Vice Chair shall have the powers and perform the duties of the Chair with respect to such matter.

PART C. POWERS AND DUTIES OF THE ETHICS ADMINISTRATION DIVISION

Section 1. Initiation and Administration of Peer Review Investigations and Disciplinary Proceedings. The Ethics Administration Division shall have general responsibility for the initiation and administration of peer review investigations and disciplinary proceedings under this Regulation. It shall also review the effectiveness of the procedures governing disciplinary proceedings under this Regulation and make recommendations to the National Committee with respect to proposed changes. Each Assistant Regional Member shall attend such meetings of the Ethics Administration Division and perform such duties as may be specifically assigned to such Assistant Regional Member by the Chair of the Ethics Administration Division or the Regional Member from his or her Region.

Section 2. Maintenance of Files. The Ethics Administration Division shall maintain a file relating to each matter referred to it by the Screening Staff.

Section 3. Uniform Procedure Manual. The Ethics Administration Division shall prepare (and amend from time to time as required) a Procedure Manual governing disciplinary procedures under this Regulation. A copy of the current Procedure Manual shall be furnished to each member of a Regional Panel who is appointed to a Grievance Committee or a Hearing Committee. The Procedure Manual prepared by the Ethics Administration Division may include both prescribed and suggested forms for the use of Grievance Committees and Hearing Committees. Such Procedure Manual may also set forth both administrative and procedural guidelines for conducting peer review investigations and disciplinary proceedings under this Regulation in situations that are not expressly covered by this Regulation.

Section 4. Selection of Grievance Committee. Upon receipt by the Ethics Administration Division of each new matter referred to it by the Director of Screening or the Chair of the Ethics Administration Division, the new file shall promptly be assigned to the Regional Member of the Ethics Administration Division from the Region in which the alleged violation of the Code of Professional Ethics took place. The Regional Member to whom a file is assigned for processing is referred to in this Regulation as "the Regional Member of the Ethics Administration Division in charge of the file."

If the term of any Regional Member of the Ethics Administration Division in charge of a file expires while such Regional Member is serving in this capacity and the work assigned to such Regional Member is incomplete, the file shall be assigned to the new Regional Member of the Ethics Administration Division from the Region in which the alleged violation of the Code of Professional Ethics took place.

The Regional Member of the Ethics Administration Division in charge of the file shall promptly appoint a Grievance Committee to process such file in accordance with the requirements of this Regulation. Except as provided in Article IX, the Grievance Committee shall be appointed from the Regional Panel of the Region in which the alleged violation took place. In addition, except as provided in Article IX, if the subject of the file is an appraisal of one to four unit residential property, the Regional Member in charge of the file shall appoint members of the Grievance Committee from those members of the Regional Panel who work close to the local area of the alleged violation, if such members are available and do not have a conflict of interest.

If for any reason the Regional Member of the Ethics Administration Division to whom a file is referred shall have a conflict of interest or be biased in favor of or prejudiced against the Member or Affiliate involved, or shall be unable or unwilling to carry out his or her duties under this Regulation with respect to such file, the Chair of the Ethics Administration Division shall designate the Vice Chair or another member of the Ethics Administration Division to be responsible for the processing of the file in accordance with the requirements of this Regulation. In such case, the Vice Chair or other member of the Ethics Administration Division designated by the Chair to be responsible for a file shall be referred to herein as "the Regional Member of the Ethics Administration Division in charge of the file."

Section 5. Transmittal of File to Grievance Committee. When the Regional Member of the Ethics Administration Division in charge of a file has received an acceptance of appointment and a satisfactory Conflict of Interest Statement from the Chair and each member of the Grievance Committee, such Regional Member shall forward the file which is the subject matter of such appointment to the Chair of the Grievance Committee for processing in accordance with the requirements of this Regulation.

Section 6. Review and Processing of Grievance Committee Report and Proposed Grievance Committee Complaint. Upon receipt of the Grievance Committee Report, the Regional Member of the Ethics Administration Division in charge of the file shall review and process such Report in accordance with the requirements of this Regulation. Upon receipt of a proposed Grievance Committee Complaint, such Regional Member shall review and process such draft in accordance with the requirements of this Regulation.

Section 7. Selection of Hearing Committee. When a formal Grievance Committee Complaint has been approved by the Regional Member of the Ethics Administration Division in charge of the file, such Regional Member shall notify the immediate past Regional Chair of the Region in which the local chapter of the accused Member or Affiliate is located (the "Home Region") and such immediate past Regional Chair of the Home Region shall promptly appoint a Hearing Committee from the Regional Panel of the Home Region to process such Grievance Committee Complaint in accordance with the requirements of this Regulation.

If for any reason the immediate past Regional Chair of the Home Region shall be unable or unwilling to make this appointment, or if no immediate past Regional Chair exists, the Chair of the National Committee of Regional Chairs shall delegate either an individual who previously served as a Regional Chair in the Home Region, an immediate past Regional Chair from another Region, a past AIREA Regional Vice President from the Home Region, or a past Society District Governor from the Home Region for this purpose.

Section 8. Other Powers and Duties. The Ethics Administration Division shall have such other powers and duties as may be necessary to carry out the responsibilities specifically assigned to the Ethics Administration Division or its members by this Regulation.

ARTICLE VI

REVIEW AND COUNSELING DIVISION

PART A. COMPOSITION AND MEETINGS

Section 1. Membership of Division. The Review and Counseling Division shall consist of a Chair, a Vice Chair and one Regional Member from each of the regions as may be established from time to time by the Board of Directors. The Chair, Vice Chair, and Regional Members of the Review and Counseling Division shall be Institute members in good standing.

At the discretion of the President, the President may also appoint one or more Assistant Regional Members for any Region of the Appraisal Institute. An Assistant Regional Member shall be appointed for a term of approximately three years. If there are more than one Assistant Regional Members in one Region their terms shall be staggered. Each such Assistant Regional Member shall be a Member in good standing.

Section 2. Appointment and Tenure. The Chair, Vice Chair and other members of the Review and Counsel Division shall be appointed to the Division by the President of the Appraisal Institute with the approval of the Board of Directors. All business conducted by the Review and Counseling Division shall be valid regardless of the Board of Directors' subsequent actions with respect to approval of Division appointments.
The Chair and Vice Chair of the Review and Counseling Division shall be appointed to the Division for a term of one (1) year commencing on January 1. The other members of the Review and Counsel Division shall be appointed to the Division for tenures of approximately three (3) years with staggered expiration dates so that approximately one-third of such terms shall expire each year. Each such term shall commence on January 1 and expire on the third succeeding December 31. The Chair, Vice Chair, and all other members of the Review and Counseling Division shall be eligible for reappointment to the Division. Potential appointees to the Review and Counsel Division, as well as potential appointees to be Assistant Regional Members, shall submit an Attestation and Verification form similar in substance to that described in this Regulation. To be eligible to serve as a member of the Review and Counseling Division, a Member must have:

(a) taught or attended the Standards of Professional Practice course or passed the Standards of Professional examination at any time prior to appointment; and

(b) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice course examination or taught or attended the one-day Standards of Professional Practice Update seminar within a period commencing three (3) years prior to the date the Member's term begins and ending 180 days subsequent to such date; and

(c) completed the related Training Program within a period commencing three (3) years prior to the date the Member's term begins and ending 180 days subsequent to such date.

As an alternative to the above three requirements, a member who is appointed to the Review and Counseling Division, or as an Assistant Regional Member, for a term commencing in 1991,1992, or 1993 shall be eligible to serve on the Review and Counseling Division, or as an Assistant Regional Member, if the Member:

(a) taught or attended the Society's two-day Professional Practice Seminar offered between December 1, 1989, and December 31, 1990, or passed that seminar's examination and

(b) completes the Appraisal Institute's one-day Training Program concerning Regulation No.6 the Code of Professional Ethics, Supplemental Standards, and Guide notes within one year of commencement of the Member's term.

To be eligible to serve upon reappointment to Review and Counseling Division, (or upon appointment to the Review and Counseling Division after serving as a member of another Division, the National Committee or a Regional Subcommittee), a member must have:

(a) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice course examination; or

(b) taught or attended the one-,day Standards of Professional Practice Update seminar; or

(c) certified to the Ethics and Counseling Commission Chair that he or she has studied a Synopsis of recent changes to Regulation No. 6, the Code of Professional Ethics and the Standards of Professional Practice, within a period commencing three (3) years prior to the date the Member's term begins upon reappointment to the Review and Counseling Division and ending 180 days subsequent to such date.

If a member appointed or reappointed to the Review and Counseling Division, or as Assistant Regional Member, fails to successfully complete the appropriate requirements as defined in this section the specified time period, such member shall not eligible to continue to serve on the Review and Counseling Division.

Section 3. Vacancies. If a vacancy occurs in the membership of the Review and Counseling Division the President of the Appraisal Institute shall fill vacancy for the unexpired term and such interim appointment shall become effective immediately; provided, however, that if a meeting of the Board of Directors is held prior to the expiration of the appointee's term, then such interim appointment shall be submitted to the Board of Directors at such meeting for ratification and approval. If the Board Directors shall fail to ratify and approve such appointment at such meeting, such interim appointment shall terminate and be of no further force an effect.

Section 4. Time and Place of Meetings. The Revision and Counseling Division shall meet during the Appraisal Institute's first quarter meetings each The Review and Counseling Division shall also at such other times and places as may be designate by the Ethics and Counseling Committee Chair or Chair of the Review and Counseling Division.

PART B. POWERS AND DUTIES OF THE CHAIR OF THE REVIEW AND COUNSELING DIVISION RELATING TO IMPROPER CERTIFICATIONS

If the Chair of the Review and Counseling Division receives from the Director of Screening a referral of a matter concerning the certification requirements of the Standards of Professional Practice, and

(a) If the Chair determines that in his or her view, the Member or Affiliate has violated the certification requirements of the Standards of Professional Practice, then the Chair shall promptly send to the Member or Affiliate a Memorandum of Counsel stating which certification requirements of the Standards of Professional Practice were violated.

b) If the Member or Affiliate disagrees with the factual information or the substance of the counseling, such Member or Affiliate shall have the right to file a formal objection with the Chair of the Review and Counseling Division for a period of thirty (30) days after receipt of such Memorandum of Counsel.

If the Member or Affiliate files a formal objection within thirty (30) days, the Chair of the Review and Counseling Division shall refer the matter to the Review and Counseling Division for assignment to the appropriate Regional Member and for processing in accordance with this Regulation. The Chair shall notify the Member or Affiliate of such file referral.

(a) If the Member or Affiliate does not file a formal objection within thirty (30) days, the Chair of the Review and Counseling Division shall mark the file "CLOSED" and shall deliver the file to the Secretary of the Review and Counseling Division at the National Headquarters of the Appraisal Institute.

(b) If the Chair of the Review and Counseling Division determines that there has not been a violation of the certification requirements, the Chair shall mark the file "CLOSED"and shall deliver the file to the Secretary of the Review and Counseling Division at the National Headquarters of the Appraisal Institute.

The Chair of the Review and Counseling Division may designate the Vice Chair to be responsible for the processing of a file referred to the Chair pursuant to Article VIII, Part D, Section 6. The Vice Chair shall have the powers and perform the duties of the Chair with respect to such matter.

PART C. POWERS AND DUTIES OF THE REVIEW AND COUNSELING DIVISION

Section 1. Initiation and Administration of Review and Counseling Proceedings. The Review and Counseling Division shall have general responsibility for the initiation and administration of review and counseling proceedings under this Regulation. It shall also review the effectiveness of the procedures governing review and counseling proceedings under this Regulation and make recommendations to the National Committee with respect to any required changes.

Each Assistant Regional Member shall attend such meetings of the Review and Counseling Division and perform such duties as may be specifically assigned to such Assistant Regional Member by the Chair of the Review and Counseling Division or the Regional Member from his or her Region.

Section 2. Maintenance of Files. The Review and Counseling Division shall maintain a file relating to each matter referred to it by the Screening Staff.

Section 3. Uniform Procedure Manual. The Review and Counseling Division shall prepare (and amend from time to time as required) a Procedure Manual governing review and counseling proceedings under this Regulation. A copy of the current Procedure Manual shall be furnished to each member of a Regional Panel who is appointed to a Review and Counseling Committee.

Section 4. Selection of Review and Counseling Committee. Upon receipt by the Review and Counseling Division of each new matter referred to it by the Director of Screening or the Chair of the Review and Counseling Division, the new file shall promptly be assigned to the Regional Member of the Review and Counseling Division from the Region in which the local chapter of the Member or Candidate is located (the "Home Region"). The Regional Member to whom a file is assigned for processing is referred to in this Regulation as "the Regional Member of the Review and Counseling Division in charge of the file."

Except as provided in Article IX, the Regional Member of the Review and Counseling Division in charge of the file shall promptly appoint a Review and Counseling Committee from the appropriate Regional Panel to process such file in accordance with the requirements of this Regulation. In addition, except as provided in Article IX, if the subject of the file is an appraisal of a one-to-four unit residential property, the Regional Member in charge of the file shall appoint a Review and Counseling Committee from Regional Panel members who work close to local area if such members are available and do not have a conflict of interest.

If for any reason the Regional Member of the Review and Counseling Division to whom a file is initially referred shall be unable or unwilling to make this appointment, the Chair of the Review and Counseling Division shall designate the Vice Chair or another member of the Review and Counseling Division to make such appointment and be responsible for the processing of the file in accordance with the requirements of this Regulation. In such case, the Vice Chair or other member of the Review and Counseling Division designated by the Chair to be responsible for a file shall be referred to herein as "the Regional Member of the Review and Counseling Division in charge of the file."

Section 5. Transmittal of File to Review and Counseling Committee. When the Regional Member of the Review and Counseling Division in charge of a file has received an acceptance of appointment and a satisfactory Conflict of Interest Statement from the Chair and each member of the Review and Counseling Committee, such Regional Member shall forward the file which is the subject matter of such appointment to the Chair of the Review and Counseling Committee for processing in accordance with the requirements of this Regulation.

Section 6. Review and Processing of Review and Counseling Committee Report and Proposed Memorandum of Counsel. Upon receipt of the Review and Counseling Committee Report and any proposed Memorandum of Counsel, the Regional Member of the Review and Counseling Division in charge of the file shall review and process such Report and any such proposed Memorandum of Counsel in accordance with the requirements of this Regulation.

Section 7. Liaison with Education Committee and Publications Committee. The Review and Counseling Division shall periodically advise the Education Committees of the General and Residential Appraiser Boards of the Division's recommendations concerning possible areas of deficiency in appraisal training so that educational courses, seminars and publications can be revised or created to remedy such perceived areas of deficiency. The Review and Counseling Division shall also communicate its recommendations to the Publications Committee so that educational seminars and publications under the jurisdiction of the Publications Committee can be developed or utilized to remedy possible areas of deficiency.

Section 8. Other Powers and Duties. The Review and Counseling Division shall have such other powers and duties as may be necessary to carry out the responsibilities specifically assigned to the Review and Counseling Division or its members by this Regulation.

ARTICLE VII

 

APPELLATE DIVISION

PART A. COMPOSITION AND MEETINGS

Section 1. Membership of Division. The Appellate Division shall consist of a Chair, a Vice Chair and a member from each of the regions as may be established from time to time by the Board of Directors.

The Chair, Vice Chair, and members of the Appellate Division shall be Institute Members in good standing

Section 2. Appointment and Tenure. The Chair, Chair and other members of the Appellate Division shall be appointed to the Division by the President the Appraisal Institute with approval of the Board Directors. All business conducted by the Appellate Division shall be valid regardless of the Board of Directors' subsequent actions with respect to appropriate of Division appointments. The Chair and Vice Chair of the Appellate Division shall be appointed to the Division for a term of one (1) year commencing on January 1. The other members of the Appellate Division shall be appointed to the Division for terms of three (3) years with staggered expiration dates so that approximately one third of such terms shall expire each year. Each such term shall commence on January 1 and expire on the third succeeding December 31. The Chair, Vice Chair and all other members of the Appellate Division shall be eligible for reappointment to the Division. Potential appointees to the Appellate Division shall submit an Attestation and Verification form similar in substance to that described in this Regulation tion. To be eligible to serve as a Member of the Appealate Division, a Member must have:

(a) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice examination at any time prior to appointment; and

(b) taught or attended the Standards of Professional Practice course or passed the Standards of Professional Practice course examination or taught or attended the one-day Standards of professions Practice Update seminar within a period commencing three (3) years prior to the date the Member's term begins and ending 180 days subsequent to such date; and

(c) completed the related Training Program within period commencing three (3) years prior to to date the Member's term begins and ending 180 days subsequent to such date.

As an alternative to the above three require a Member who is appointed to the Appellate Division for a term commencing in 1991,1992, or 1993 shall eligible to serve on the Appellate Division if the member:

(a) taught or attended the Society's two-day Professional Practice Seminar offered between December 1, 1989, and December 31, 1990, or passed the seminar's examination; and

(b) completes the Appraisal Institute's one-day training Program concerning Regulation No. 6, the Code of Professional Ethics, Supplemental
Standards, and Guide notes within one year of the commencement of the Member's term.

To be eligible to serve upon reappointment to the Appellate Division, (or upon appointment to the Appellate Division after serving as a member of another Division, the National Committee or a Regional Subcommittee a member must have:

(a) taught or attended the Standards of Professional Practice course or passed the Standards of Profes sional Practice course examination; or (b) taught or attended the one-day Standards of Professional Practice Update seminar; or
(c) certified to the Ethics and Counseling Committee Chair that he or she has studied a Synopsis of recent changes to Regulation No. 6, the Code of Professional Ethics and the Standards of Professional Practice, within a period commencing three (3) years prior to
the date the Member's term begins upon reappoint ment to the Appellate Division and ending 180 days subsequent to such date.

If a Member appointed or reappointed to the Appellate Division fails to successfully complete the appropriate requirements as defined in this section in the specified time period, such member shall not be eligible to continue to serve on the Appellate Division.

At the time of the Board of Directors' confirmation of a Member's appointment or reappointment to the Appellate Division, the Member shall also possess experience as a member of AIREA's Governing Council, the Society's Board of Governors, or the Appraisal Institute's Board of Directors, and as a member of one or more of the following: the Appraisal Institute's or AIREA's Ethics and Counseling Committee; AIREA's National Professional Standards Committee; AIREA's National Appraisal Review Committee AIREA's National Professional Ethics Committee; the Society's International Professional Practice Committee; the General or Residential Appraiser Board; the Admissions Committees of the General or Residential Appraiser Boards; AIREA's National Admissions Committee; the Society's General Admissions Committee; the Society's Analyst Admissions Committee the Society's SRA/SRPA Admissions Committee; the Education Committees of the General or Residential Appraiser Board; AREA'S National Education Committee; the Society's Educa tion Committee; the Appraisal Institute's or AREA'S national Admissions Appeal Board; or a Division of the Appraisal Institute's or AREA'S Ethics and Counseling Committee. Except as otherwise provided by this Regulation, no member of the Appellate Division may serve concurrently on the national Admissions Appeal Board or in any other capacity in Ethics and Counseling. Concurrent service on the Appellate Division and the national Admissions Committees or the National Education Committees is permitted only to the extent that service related to one of those national Committees does not interfere with service on the Appellate Division.

Section 3. Vacancies. If a vacancy occurs in the membership of the Appellate Division, the President of the Appraisal Institute shall fill such vacancy for the unexpired term and such interim appointment shall become effective immediately, provided, however, that if a meeting of the Board of Directors is held prior to the expiration of the interim appointee's term, then such interim appointment shall be submitted to the Board of Directors at such meeting for ratification and approval. If the Board of Directors shall fail to ratify and approve such interim appointment at such meeting, such interim appointment shall terminate and be of no further force and effect.

Section 4. Time and Place of Meetings. The Appellate Division shall meet during the Appraisal Institute's first quarter meetings each year. The Appellate Division shall also meet at such other times and places as may be designated by the Ethics and Counseling Committee Chair or the Chair of the Appellate Division.

PART B. POWERS AND DUTIES

Section 1. Duty to Conduct Appeal Proceedings in Peer Review Matters. The Appellate Division, sitting as an Appeal Board, shall have the power and duty to conduct all peer review appellate proceedings required or permitted by this Regulation.

Section 2. Duty to Review Requests for Permission to Appeal. The Appellate Division shall have the power and duty to review each request for permission to appeal from a Memorandum of Counsel and to decide whether or not such requests should be granted.

Section 3. Duty to Conduct Appeal in Mandatory Continuing Education Matters. The Appellate Division, sitting as an Appeal Board, shall have the power and duty to conduct all appellate proceedings in mandatory continuing education matters.

Section 4. Other Duties. The Appellate Division shall perform such other duties as may be assigned to it by the Ethics and Counseling Committee Chair.

ARTICLE VIII

SCREENING STAFF

PART A. SCREENING STAFF
The screening staff shall consist of
(i) the Director of Screening;

(ii) an Assistant Director of Screening as provided for from time to time under Part C of this Article; and

(iii) any additional staff assisting the Director of Screening and the Assistant Director of Screening.

PART B. DIRECTOR OF SCREENING

Section 1. Appointment by Board of Directors. The Board of Directors shall appoint a Director of Screening who shall report to the Executive Committee and the Executive Vice President of the Appraisal Institute. The Director of Screening shall be an MAI Member with substantial experience at the national level in one or more of the following areas: as a Chair or member of a national Committee charged with responsibility for the processing of disciplinary proceedings or for the processing of review and counseling proceedings; as a teacher of Institute, AIREA, or Society courses or seminars as Chair or member of AIREA's National Admissions Committee as Chair or member of the Society's General Admissions Committee Analyst Admissions Committee, or SRA/SRPA Admissions Committee; as Chair or member of the Appraisal Institute's Admissions Committees of the Residential or General Appraiser Boards; as Chair or member of the General or Residential Appraiser Boards; or as an Assistant Director of Screening.

Section 2. Employment Contract. The general terms and conditions of the employment of the Director of Screening shall be approved or ratified by the Board of Directors of the Appraisal Institute.

Section 3. Powers and Duties. The Director of Screening shall: (i) serve as a member of the Ethics and Counseling Committee; (ii) supervise subordinates, as directed by the Executive Vice President and the President; (iii) exercise general supervision over the screening of all files referred to the Screening Staff; and (iv) have final responsibilities for deciding, in each matter he or she reviews, to take no further action on the matter, to route the matter to the Ethics Administration Division, or to route the matter to the Review and Counseling Division, provided, however, that if an Assistant Director of Screening is appointed pursuant to Part C of this Article, the Director of Screening may grant the Assistant Director authority to make such final screening decisions as the Director deems appropriate.

PART C. ASSISTANT DIRECTOR OF SCREENING

Section 1. Appointment by national Executive Committee. The national Executive Committee may appoint one or more Assistant Directors of Screening to assist the Director of Screening in performing his or her duties. An Assistant Director of Screening shall be an MAI Member. In its discretion, the national Executive Committee may also grant an Assistant Director of Screening authority to make such final screening decisions, relating to files assigned to an Assistant Director, as the national Executive Committee deems appropriate.

Section 2. Assumption of Duties of Director of Screening. If the Executive Vice President determines that the Director of Screening is unable to perform his or her duties, or that the position of Director of Screening is vacant, the Executive Vice President shall immediately notify the national Executive Committee. Upon receipt of such notice, the national Executive Committee shall either (i) fill the vacancy, or (ii) grant the Assistant Director of Screening the same authority to screen as the authority vested in the Director of Screening. An appointment under either (i) or (ii) above shall be on an interim basis only and subject to the approval of the Board of Directors at its next regularly scheduled meeting.

PART D. SCREENING PROCEDURES

Section 1. Referral of Information to the Director of Screening. Except as otherwise provided in this Regulation, all information protaining to the Appraisal Institute or to any of its officers or committees, to a Chapter or to any of its officers or committees, or to any Member or Affiliate of the Appraisal Institute which suggests or indicates that a Member or Affiliate of the Appraisal Institute may have: (i) failed to observe the requirements of the Institute's Code of Professional Ethics or the Institute's Standards of Professional Practice; (ii) been convicted of a serious crime committed prior to becoming a Member or Affiliate; or (iii) knowingly made false statements, submitted false information, or failed to fully disclose information requested in an application for admission to candidacy, shall be referred to the Director of Screening for screening in accordance with the requirements of this Regulation.

Section 2. Processing by the Screening Staff. Upon receipt of any such information, the Director of Screening shall make or cause to be made such investigation as he or she may deem appropriate for the purpose of determining the action to be taken under this Regulation. If this investigation indicates a possible violation of Canon 6 of the Appraisal institute's Code of Professional Ethics, the Director of Screening shall review the records of the Review and Counseling Division, the Appraisal Review Committee; and the International Professional Practice Committee to determine whether, as the result of a prior Review and Counseling proceeding, Appraisal Review proceeding & or professional practice proceeding, the Member or Affiliate involved had specific knowledge of the particular requirements of the Standards of Professional Practice that relate to the appraisal service under investigation. If the Director of Screening determines that additional factual information is required in order to complete his or her investigation, the Director of Screening may request a member of the Regional Panel for the Region in which such factual information is located to procure such information and forward it to the Screening Staff.

Section 3. Duty of Members and Affiliates to Submit Additional Information. When requested to do so by the Director of Screening, a Member or Affiliate must promptly submit, at his or her own expense, to the Director of Screening or any duly authorized member of the Screening Staff, a copy of the appraisal report under investigation or a copy of the appraisal report (or the file memoranda setting forth data, reasoning and conclusions) upon which his or her appraisal testimony was based, together with a copy of all subsequent changes and modifications thereof and all requested supporting documentation that is relevant to the inquiry and is referred to in such appraisal report or testimony.

Section 4. Closing of Matters Referred. If, after completion of his or her investigation, the Director of Screening determines that there is no legitimate basis for referral to the Ethics Administration Division or to the Review and Counseling Division, the Director of Screening shall prepare or cause to be prepared a written memorandum indicating the basis for this determination and a copy of this memorandum shall be lodged in the files of the Screening Staff. When appropriate, the Director of Screening shall advise the party originally transmitting the information to the Appraisal Institute as to the manner in which the referral was handled and the basis for the action taken. Such notification is appropriate when the sole concern of the party transmitting the information related to the fee charged by a Member or Affiliate or when the party transmitting the information is an individual who is authorized to receive such information under the express rules of this Regulation.

Section 5. Routing to Ethics Administration Division. If the Director of Screening determines that a Member or Affiliate may have violated the ethical requirements of the Appraisal Institute's Code of Professional Ethics, the Director of Screening shall refer the matter to the Ethics Administration Division for assignment to the appropriate Regional Member for processing in accordance with this Regulation, provided, however, that if the Director of Screening determines that a Member or an Affiliate may have violated Ethical Rule 5-2, he or she may refer the matter to the Chair of the Ethics Administration Division for processing in accordance with Article V, Part B.

If the referral indicates a possible violation of Canon 6, the Director of Screening shall transmit to the Ethics Administration Division the relevant information from the Review and Counseling Division files, the Appraisal Review Committee files, or the International Professional Practice files, indicating that, as the result of a prior Appraisal Review proceeding, Review and Counseling proceeding, or proceeding under the Society's Regulation No. 7, the Member or Affiliate involved had specific knowledge of the particular requirements of the Standards of Professional Practice that relate to the appraisal service which is the subject matter of the referral.

If the Director of Screening determines that a Member or an Affiliate may have (a) been convicted of a serious crime committed prior to becoming a Member or an Affiliate, or 00 knowingly made false statements, submitted false information, or failed to fully disclose information requested in an application for admission to candidacy, the Director, of Screening shall refer the matter to the Ethics Administration Division for assignment to the appropriate Regional Member for processing in accordance with this Regulation as modified to reflect the nature of the alleged violation.

Section 6. Routing to Review and Counseling Division. If the Director of Screening determines that a Member or an Affiliate may have violated the requirements of the Appraisal Institute's Standards of Professional Practice, the Director of Screening shall refer the matter to the Review and Counseling Division for assignment to the appropriate Regional Member and for processing in accordance with this Regulation, provided, however, that if the Director of Screening determines that a Member or an Affiliate may have violated the certification requirements of the Appraisal Institute's Standards of Professional Practice, he or she may refer the matter to the Chair of the Review and Counseling Division for processing in accordance with Article VI, Part B.

PART E. ADDITIONAL RULES

Section 1. Conflict of Interest. If the Director of Screening ascertains that he or she has a conflict of interest with respect to any matter submitted to the Director of Screening for investigation and referral under this Regulation, such matter shall be referred to the Chair of the Screening Policy Division and the Chair of the Screening Policy Division shall have the powers and perform the duties of the Director of Screening with respect to such matter. The Chair of the Screening Policy Division may designate any member of the Division to be responsible for the processing of a file referred to the Chair pursuant to this section. The designated member of the Screening Policy Division shall have the powers and perform the duties of the Director of Screening with respect to such file.

Section 2. Authority to Process. If the Director of Screening determines that it is unclear as to whether the Appraisal Institute has authority to review an appraisal report or other document submitted to the Appraisal Institute with a request that it be reviewed, the processing of such report or other document by the Ethics Administration Division or the Review and Counseling Division shall not commence until the Director of Screening is satisfied that the Appraisal Institute does have authority to review such appraisal report or other document.

If, at any time, it comes to the attention of any Division, committee, Division member or committee member acting hereunder, or to the attention of any member of the Screening Staff, that the review of an appraisal report that is under review was not authorized by a party having the power to grant such authorization, all further action hereunder shall be postponed until such time as the proper authorization has been secured.

Section 3. Duty of Members and Affiliates to Submit Permission to Review Form. If an appraisal report or other document prepared or signed by a Member or an Affiliate of the Appraisal Institute fails to authorize review by the Appraisal Institute, the Member or Affiliate who prepared or signed such report or other document shall, upon request, furnish to the Director of Screening an appropriate authorization to review the appraisal report or other document on the Permission to Review form customarily used by the Appraisal Institute for this purpose.

Section 4. Additional Factual Information Requested by a Grievance Committee or a Review and Counseling Committee. If a Grievance Committee or a Review and Counseling Committee requests the Director of Screening to procure additional factual information that is required in order to complete such committee's investigation, the Director of Screening may request a member of the Regional Panel for the Region in which such factual information is located to procure such information and forward it to the Screening Staff.

ARTICLE IX

REGIONAL SUBCOMMITTEES

PART A. COMPOSITION AND MEETINGS

Section 1. Duty to Create and Maintain. For each of the Appraisal Institute regions as may be established by the Board of Directors from time to time, the Regional Selection Committee referred to in Section 3 below shall create and maintain for its Region a Regional subcommittee of the Ethics and Counseling Committee. Each such Regional subcommittee shall bear the title "Regional Panel" followed by the identification of its particular Region.

Section 2. Membership of Regional Panels. The Regional Panel of each Region shall contain members located within the jurisdiction of such Region as the Selection Committees referred to in Section 3 below shall deem appropriate.

Each member of the Regional Panel shall be a Member in good standing. Members of the National Committee or any Division of the National Committee shall not be eligible to serve as a member of a Regional Panel.

To be eligible for appointment to a Grievance Committee, Hearing Committee, or Review and Counseling Committee, a member of a Regional I must have:

(a) taught or attended the Appraisal Institute's Standards of Professional Practice course or passed the Standards of Professional Practice examination at any time prior to appointment and

(b) taught or attended the Standards of Professional Practice course or passed the Standards of Pr sional Practice course examination or taught attended the one-day Standards of Professional Practice Update seminar within a three (3) year period prior to the date of his or her appoint to the Regional Panel or to a specific commit and

(c) completed the related Training Program wit period commencing three (3) years prior to the date of his or her appointment to the Region Panel or to a specific committee.

As an alternative to the above three requirements a member who is appointed to the Regional Pan a term commencing in 1991, 1992, or 1993 shall I eligible for appointment to a Grievance Commit Hearing Committee, or Review and Counseling Committee if the Regional Panel Member has:

(a) taught or attended the Society's two-day Professional Practice Seminar offered between December 1, 1989, and December 31,1990, passed that seminar's examination; and

(b) completed the Appraisal Institute's one-day Training Program concerning Regulation N the Code of Professional Ethics, Supplement Standards, and Guide notes within one year appointment to the Panel.

To be eligible for appointment to a Grievance Committee, Hearing Committee or Review ar Counseling Committee after reappointment to Regional Panel, (or upon appointment to the Ri Panel after serving as a member of the National Committee or a Division), a member must having

(a) taught or attended the Standards of Professional Practice course or passed the Standards of sional Practice course examination; or

(b) taught or attended the one-day Standards Professional Practice Update seminar; or

(c) certified to the Ethics and Counseling Con Chair that he or she has studied a Synopsis recent changes to Regulation No. 6, the Committee of Professional Ethics and the Standards of Professional Practice, within a three (3)-year period prior to the date of his or her reappointment to the Regional Panel or to a specific committee.

Section 3. Appointment and Tenure. The Regional Panel of each Region shall be selected by a Selection Committee consisting of the incumbent Regional Chair of such Region; the Regional Member of the Ethics Administration Division for such Region, and the Regional Member of the Review and Counseling Division for such Region, subject, however, to the approval of the Ethics and Counseling Committee Chair. Each member of a Regional Panel shall be appointed to such Panel for a term commencing on the date of appointment and expiring on the third subsequent December 31 after appointment. If the term of any member of a Regional Panel expires while such member is serving on a Grievance Committee, a Hearing Committee or a Review and Counseling Committee and the work assigned to such committee is incomplete, then the term of such member of a Regional Panel shall automatically be extended for such period of time as may be necessary to provide for the completion of such assignment.

The Regional Member of the Ethics Administration Division and the Regional Member of the Review and Counseling Division serving on a Selection Committee shall have the further responsibility of recommending to the Selection Committee any desired expansion or modification of the Regional Panel membership, or the removal of any member there from.

Section 4. Vacancies. If a vacancy occurs in the membership of a Regional Panel, the Selection Committee for such Region shall immediately fill such vacancy for the unexpired term.

Section 5. Time and Place of Meetings. A Regional Panel will not meet as a group; rather, individual members of each Regional Panel will, from time to time, be appointed to a specific Grievance Committee, a specific Hearing Committee, or a specific Review and Counseling Committee in accordance with the requirements of this Regulation.

Section 6. Region of Service. The members of a Regional Panel shall be appointed to serve on Grievance Committees, Hearing Committees, and Review and Counseling Committees operating in the Region served by such Regional Panel; however, if, in the judgment of the Ethics and Counseling Committee Chair, it is in the best interest of the Appraisal Institute, the Ethics and Counseling Committee Chair may authorize the appropriate party to appoint one or more members of a Grievance Committee, a Hearing Committee or a Review and Counseling Committee from a Regional Panel in another Region.

ARTICLE X

GRIEVANCE COMMITTEE

PART A. COMPOSITION

Section 1. Appointment of Grievance Committee. Each Grievance Committee shall consist of a Chair and not less than two (2) nor more than four (4) other members. The Chair and other members of each Grievance Committee shall be appointed to the Grievance Committee by the Regional Member of the Ethics Administration Division in charge of the file. Except as provided in Article IX, the Chair and the other members of a Grievance Committee shall be selected from the Regional Panel of the Region in which the possible violation took place. In addition, except as provided in Article IX, if the subject of the file is an appraisal of a one-to- four unit residential property, the Regional Member in charge of the file shall appoint members of the Grievance Committee from those members of the Regional Panel who work close to the local area of the alleged violation, if such members are available and do not have a conflict of interest.

Section 2. Notice of Appointment and Submission of Conflict of Interest Statement. When the Regional Member of the Ethics Administration Division in charge of the file has selected the members of a Grievance Committee, such Regional Member shall mail to each such appointee a formal Notice of Appointment and a form concerning possible conflict of interest. When the Regional Member has received an acceptance of appointment and a statement indicating no conflict of interest from each of the individuals who have been appointed as the Chair and other members of the Grievance Committee such Regional Member shall forward the file to the Grievance Committee Chair.

Section 3. Subsequent Discovery of a Conflict of Interest. If at any time a member of a Grievance Committee discovers that he or she has a personal interest in any matter assigned to such Grievance Committee for investigation, or has a bias in favor of or prejudice against the Member or Affiliate involved, or has served in any other review or investigative capacity in reference to the subject matter of such file, such member shall immediately notify the Regional Member of the Ethics Administration Division in charge of the file of such personal interest, bias or prejudice and take no further part in the investigation or actions of such Grievance Committee. When any member of a Grievance Committee is thus disqualified, the Regional Member of the Ethics Administration Division in charge of the file shall then appoint another member of the Regional Panel to serve on such Grievance Committee and act in the place of the disqualified member.

Section 4. Removal From Grievance Committee. If the Regional Member of the Ethics Administration Division in charge of the file determines that a member of a Grievance Committee either has a conflict of interest or has failed to perform his or her assigned duties in a timely manner, the Regional Member may request the Ethics Administration Division Chair to recommend to the Ethics and Counseling Committee Chair that he or she remove such member from the Grievance Committee or discharge the entire Committee

Upon receipt of any such recommendation, the Ethics Administration Division Chair shall make such investigation as he or she may deem appropriate. If the Ethics Administration Division Chair determines that such member of a Grievance Committee either has a conflict of interest or has failed to perform his or her assigned duties in a timely manner, the Ethics Administration Division Chair shall recommend to the Ethics and Counseling Committee Chair that he or she remove such member from the Grievance Committee. In addition, the Ethics Administration Division Chair may recommend to the Ethics and Counseling Committee Chair that any member discharged from the Grievance Committee also be removed from the Regional Panel.

Upon receipt of any such recommendation, the Ethics and Counseling Committee Chair shall make such investigation as he or she may deem appropriate. Upon completion of such investigation, if the Ethics and Counseling Committee Chair determines that a member either has a conflict of interest or has failed to perform his or her assigned duties in a timely manner, the Ethics and Counseling Committee Chair may remove such member from the Grievance Committee or discharge the entire Committee. In addition, the Ethics and Counseling Committee Chair may remove such individual's name from the Regional Panel.

When any member of a Grievance Committee is removed from the Committee in this manner, the Regional Member of the Ethics Administration Division in charge of the file may then appoint another member of the Regional Panel to serve on such Grievance Committee. Such appointment shall be made in accordance with the requirements of this Part A.

PART B. INVESTIGATION

Section 1. Duty to Investigate. Each Grievance Committee shall conduct a thorough investigation of the subject matter of each file referred to it by the Ethics Administration Division to determine whether, in the opinion of the Grievance Committee, on the basis of the factual information available to it, there is a reasonable probability that the action (or failure to act) of a Member or an Affiliate violated the ethical requirements of the Appraisal Institute's Code of Professional Ethics,

If a Grievance Committee determines that, opinion, on the basis of the factual information available to it, there is a reasonable probability such violation, it shall continue its investigation the purpose of determining what further action appropriate under this Regulation.

As part of the Grievance Committee's investigation one or more members of the Grievance Cc tee shall interview the Member or Affiliate. If the Member or Affiliate declines to be interviewed Grievance Committee shall document this fact writing.*

Section 2. Procedure for Investigation. The Grievance Committee may personally conduct any portion of an investigation or the Chair ma assign all or any portion of a particular investigation to one or more members of the Grievance Com The Chair, member or members to whom a paid portion of such investigation is assigned shall ( such investigation with diligence and promptly, the results of such investigation to the Grievance Committee as a whole. When the Grievance Q tee has completed such investigation as it deer appropriate, it shall evaluate the relevant facts make a decision as to its recommendation.

Section 3. Submission of Requested Informal and Interview. When requested to do so by a 4 authorized Grievance Committee or a duly au authorized member thereof, a Member or an Affiliate

(i) promptly submit, at his or her own experience, such Grievance Committee or individual thereof, a copy of the appraisal report und investigation, or a copy of the appraisal re the complete memoranda setting forth

(ii)reasoning and conclusions upon which his testimony was based, together with a cop, subsequent changes and modifications and all requested supporting documentation is relevant to the inquiry; promptly submit, at his or her own expense such Grievance Committee or individual thereof, such other documentation in his possession or control as may be pertinent investigation of the Grievance Committee

(iii) appear for a personal interview;

(v) participate in an interview conducted by phone; and

(v) answer all relevant questions concerning appraisal report, appraisal testimony, or for being investigated.

The Member or Affiliate shall have the right shall not be required, to submit at his or her expense, any additional information which he, believes to be relevant to a proper evaluation subject matter of the investigation.

The requirements of this paragraph apply only to Ethics files screened on or after January 1, 1990.

Section 4. Other Violations. If, as a result of its investigation of the subject matter of a file referred to it by the Ethics Administration Division, a Grievance Committee determines that a Member or an Affiliate may have committed a violation or violations of the Appraisal Institute's Code of Professional Ethics or Standards of Professional Practice other than in connection with the subject matter of the file assigned to it for investigation, then the Grievance Committee shall promptly report its findings with respect to such other violation or violations to the Director of Screening. No further action relating to any such other violation or violations shall be taken by such Grievance Committee unless and until a file relating to the subject matter thereof is formally assigned to the Grievance Committee by the Ethics Administration Division.

PART C. GRIEVANCE COMMITTEE REPORT

Section 1. Duty to Report. The Grievance Committee shall prepare a written Grievance Committee Report and file such Report with the Regional Member of the Ethics Administration Division in charge of the file within thirty (30) days after the Grievance Committee has completed its investigation and made a decision as to its recommendations with respect to a particular file, provided, however, that, upon receipt of a written request from the Chair of the Grievance Committee setting forth facts and circumstances justifying an extension, the Regional Member of the Ethics Administration Division in charge of the file may extend the time for the filing of such Grievance Committee Report to a date which such Regional Member deems reasonable under the circumstances.

Section 2. Contents of Grievance Committee Report. The Grievance Committee Report shall contain the following:

(i) a statement concerning the subject matter that was assigned to the Grievance Committee for investigation;

(ii) a summary of the procedures followed by the Grievance Committee in making its investigation;

(iii) the Grievance Committee's findings of fact, together with a summary of the evidence available to the Committee which led the Committee to conclude that such facts could be established by the greater weight of the evidence;

(iv) the conclusions of the Grievance Committee with respect to whether the Member or Affiliate violated the requirements of the Code of Professional Ethics; and

(v) a recommendation made in accordance with the requirements of Section 3 below.

If the conclusion of the Grievance Committee is that a Member or an Affiliate did violate the requirements of the Code of Professional Ethics, the Grievance Committee Report shall contain a clear, precise statement as to the particular provision or provisions of the Code of Professional Ethics which, in the opinion of the Grievance Committee, were violated by such Member or Affiliate as well as the specific details of the action (or failure to act) of such Member or Affiliate which constituted such violation or violations.

Section 3. Permitted Recommendations. Except in the case of a violation of Ethical Rule 2-3(c) of the Code of Professional Ethics, each Grievance Committee Report shall make one of the following recommendations:

(i) that no disciplinary proceeding be initiated and that the file be closed;

(ii) that no disciplinary proceeding be initiated and that the file be referred back to the Screening Staff to determine whether a referral to the Review and Counseling Division would be appropriate;

(iii) that the Member or Affiliate be given the right to accept an admonishment as defined in Article XI and in the form and substance set forth in the Grievance Committee Report; or that a formal Grievance Committee Complaint be prepared and filed.

If the recommendation is number (iii) above, and the Grievance Committee deems it appropriate, the Grievance Committee may further recommend that the Ethics and Counseling Committee Chair offer the Member or Affiliate an opportunity to pursue a specified educational alternative in lieu of being subjected to the recommended Admonishment. If the Grievance Committee determines that a violation of Ethical Rule 2-3(c) of the Code of Professional Ethics has occurred and compliance with Ethical Rule 2-3(c) was not excused by an exception to the Ethical Rules, the recommendation of the Grievance Committee in its report shall be governed by the following rules:

(a) If in the course of its investigation, the Member or Affiliate provides the Grievance Committee with the written appraisal report, the file memoranda containing data, reasoning and conclusions, or the Permission to Review, which was requested by but not transmitted to the Screening Staff, the recommendation of the Grievance Committee must be to give the Member or Affiliate the right to accept an admonishment. Upon receipt of such requested documentation, it shall be promptly transmitted by the Grievance Committee to the Director of Screening for processing under this Regulation.

(b) If, in the course of its investigation, the Member or Affiliate fails to provide the Grievance Committee with the written appraisal report, the file memoranda containing data, reasoning and conclusions, or the Permission to Review, which was requested by but not transmitted to the Screening

Staff, the Grievance Committee shall promptly prepare its report and refer the complete file to the Executive Vice President of the Appraisal Institute for processing under Article XII, Part I of this Regulation.

PART D. PROCEDURE TO BE FOLLOWED IF A GRIEVANCE COMMITTEE RECOMMENDS THAT NO DISCIPLINARY PROCEEDINGS BE INITIATED AND THAT THE FILE BE CLOSED

Section 1. Review by Regional Member of Ethics Administration Division. Upon receipt of a Grievance Committee Report recommending that no disciplinary proceedings be initiated and that the file be closed, the Regional Member of the Ethics Administration Division in charge of the file shall carefully review the file and the Grievance Committee Report to determine whether the investigation made by the Grievance Committee was adequate and whether the Grievance Committee Report is in compliance with the requirements of this Regulation.

Section 2. Permitted Actions by Regional Member of Ethics Administration Division. If, on the basis of his or her review of the file and the Grievance Committee Report, the Regional Member of the Ethics Administration Division in charge of the file determines that the Grievance Committee's investigation was insufficient or that the Grievance Committee Report is not in compliance with this Regulation, he or she shall remand the file to the Grievance Committee with instructions to take such further steps as such Regional Member may specify. If, on the basis of his or her review of the file and the Grievance Committee Report, the Regional Member of the Ethics Administration Division in charge of the file determines that the Grievance Committee's investigation was sufficient and that the Grievance Committee Report is in compliance with this Regulation, he or she shall mark the file "CLOSED" and deliver the file to the Secretary of the Ethics Administration Division at the National Headquarters of the Appraisal Institute. If the Member or Affiliate was advised of the investigation of the Grievance Committee, the Regional Member of the Ethics Administration Division in charge of the file shall promptly advise such Member or Affiliate that the file has been closed.

PART E. PROCEDURE TO BE FOLLOWED IF A GRIEVANCE COMMITTEE RECOMMENDS THAT NO DISCIPLINARY PROCEEDINGS BE INITIATED AND THAT THE FILE BE REFERRED TO THE SCREENING STAFF

Section 1. Review by Regional Member of Ethics Administration Division. Upon receipt of a Grievance Committee Report recommending that no disciplinary proceedings be initiated and that the file be referred to the Screening Staff to determine whether a referral to the Review and Counseling Division would be appropriate, the Regional Me of the Ethics Administration Division in charge, file shall carefully review the file and the Grievance Committee Report to determine whether the in the investigation made by the Grievance Committee was adequate and whether the Grievance Committee Report is in compliance with this Regulation.

Section 2. Permitted Actions by Regional Men Ethics Administration Division. If the Regional Member of the Ethics Administration Division I charge of the file determines that the Grievance Committee's investigation was insufficient or d Grievance Committee Report is not in compliary with this Regulation, he or she shall remand that the Grievance Committee with instructions to such further steps as such Regional Member may specify.

If the Regional Member of the Ethics Administration Division in charge of the file determines the Grievance Committee's investigation was sufficent and that the Grievance Committee Report is in compliance with this Regulation, he or she shall the file "CLOSED-REFERRED TO SCREENIN STAFF" and deliver the file to the Secretary of I Screening Staff at the National Headquarters Appraisal Institute.

PART F. PROCEDURE TO BE FOLLOWED 11 GRIEVANCE COMMITTEE RECOMMENDS THAT A MEMBER OR AN FILIATE BE GIVEN THE RIGHT TC ACCEPT AN ADMONISHMENT

Section 1. Review by Regional Member of EC Administration Division. Upon receipt of a G irevance Committee Report recommending that member or an Affiliate be given the right to accept, admonishment as defined in Article XI and in form and substance set forth in the Grievance Committee Report, the Regional Member of the Ethical Administration Division in charge of the file carefully review the file and the Grievance Committee Report to determine whether the investigation by the Grievance Committee was adequate an whether the Grievance Committee Report (including the form and substance of the proposed appoint ment) is in compliance with this Regulation.

Section 2. Permitted Actions by Regional Me Ethics Administration Division. If the Regional Member of the Ethics Administration Division charge of the file determines that the Grievance Committee's investigation was insufficient or Grievance Committee Report is not in compliment with this Regulation, he or she shall remand to the Grievance Committee with instructions to such further steps as such Regional Member may specify.

If the Regional Member of the Ethics Administration Division in charge of the file determines that the Grievance Committee's investigation was sufficient and that the Grievance Committee Report is in compliance with this Regulation, the Regional Member shall then review the Appraisal Institute's files relating to such Member or Affiliate to determine whether such Member or Affiliate

(a) has previously received disciplinary action in the form of expulsion, revocation of designation, suspension, termination of candidacy, or censure with publication;

(b) has, on two or more occasions within the preceding ten (10) year period, received disciplinary action in the form of admonishment, reprimand or censure without publication, or

(c) has, within the preceding ten (10) year period, received disciplinary action in the form of an admonishment, reprimand or censure without publication relating to the same or a similar substantive requirement of the Code of Professional Ethics or Standards of Professional Practice that is involved in the current peer review investigation.

For the purpose of this Part F, an admonishment, reprimand or censure without publication that was received by a Member or an Affiliate subsequent to the date of the conduct of the Member or Affiliate that is involved in the current peer review investigation shall not be deemed to be a part of the Appraisal Institute's files relating to such Member or Affiliate.

If the file of the Member or Affiliate discloses that the Member or Affiliate has received the disciplinary actions described in (a), (b) or (c) above, the Member or Affiliate is not eligible to accept an admonishment.

In such case, the Regional Member of the Ethics Administration Division in charge of the file shall advise the Chair of the Grievance Committee that the Member or Candidate is not eligible to accept an admonishment and shall instruct the Grievance Committee to draft a proposed Grievance Committee Complaint and proceed as set forth in Section 3 below.

If the file of the Member or Affiliate discloses that he or she is eligible to accept an admonishment and the Grievance Committee Report does not recommend an educational alternative in lieu of the recommended admonishment, the Regional Member of the Ethics Administration Division in charge of the file shall direct the Chair of the Grievance Committee to proceed as provided in Section 4 below.

If the file of the Member or Affiliate discloses that he or she is eligible to accept an admonishment, and the Grievance Committee has recommended a specified educational alternative in lieu of the recommended admonishment, the Regional Member of the Ethics Administration Division in charge of the file shall promptly submit such file to the Ethics and Counseling Committee Chair for a determination as to whether the Member or Affiliate shall be offered an opportunity to complete a specified educational alternative (to be completed within a fixed period of time) in lieu of the recommended admonishment. The educational alternative recommended by the Grievance Committee may include a requirement that an examination be taken and passed in order to complete such educational alternative. For any Appraisal Institute course that has an examination, the Grievance Committee must recommend that the examination be taken and passed.

If the Ethics and Counseling Committee Chair decides that it is appropriate to offer the Member or Affiliate the opportunity to accept the educational alternative, the Ethics and Counseling Committee Chair shall then decide whether the educational alternative specified by the Grievance Committee should be approved or whether a different educational alternative, as determined by the Ethics and Counseling Committee Chair, would be more appropriate. For any Appraisal Institute course that has an examination, the Ethics and Counseling Committee Chair must require that the examination be taken and passed. The decision of the Ethics and Counseling Committee Chair concerning the educational alternative to be completed, and whether or not an examination must be taken and passed to complete such educational alternative, shall be final.

If the recommendation of the Grievance Committee to offer an educational alternative is approved by the Ethics and Counseling Committee Chair, the Ethics and Counseling Committee Chair shall notify the Regional Member of the Ethics Administration Division in charge of the file as to (a) the educational alternative which must be completed by the Member or Affiliate, and (a) the period of time within which the educational alternative must be completed. The Regional Member of the Ethics Administration Division in charge of the file shall then notify the Grievance Committee Chair as to the decision of the Ethics and Counseling Committee Chair and instruct the Grievance Committee Chair to proceed as provided in Section 5 below.

If the recommendation of the Grievance Committee to offer an educational alternative is rejected by the Ethics and Counseling Committee Chair, the Ethics and Counseling Committee Chair shall so notify the Regional Member of the Ethics Administration Division in charge of the file. The