California review highlights appraisal reforms, outreach after AB 948; bureau asks to extend sunset

The Bureau of Real Estate Appraisers (Bureau) outlined regulatory and operational changes at a joint Assembly and Senate sunset review hearing in Sacramento, telling lawmakers the agency has implemented the Fair Appraisal Act (AB 948), launched training and outreach to address appraisal bias, and improved licensing processing.

Kimberly Kirkmire, director of the Department of Consumer Affairs, said federal law requires states to license appraisers for “federally related transactions” and described the Bureau’s licensing categories and education-accreditation work. “Federal law requires all states to license and certify real estate appraisers who conduct appraisals for federally related transactions,” Kirkmire said.

Bureau chief Angela Jamont told the committees the bureau has updated regulations, recruited subject-matter experts, conducted a 2023 demographic survey of licensees and implemented required training after AB 948 took effect. Jamont described outreach and national engagement tied to President Biden’s PAVE task force and said California was an early adopter of rules aimed at eliminating appraisal bias: “This was occurring and is occurring,” she said when asked whether racial and ethnic valuation gaps were documented nationally.

Why it matters: Lawmakers are considering whether to renew the bureau’s statutory authority, which is scheduled to sunset in state law on Jan. 1, 2026. Agencies that are not extended during sunset proceedings are effectively eliminated, so the committees must decide whether to reauthorize the bureau and, if so, for how long.

Key details and reforms

- AB 948 (Fair Appraisal Act): The Bureau reported it implemented statutory requirements from AB 948, including updating complaint forms, tracking demographic information in complaints and reporting results to the Legislature (the bureau submitted its report on Nov. 21, 2024). The law also requires continuing education in cultural competency and elimination of bias.

- Training and education: The bureau held an educational symposium for course providers and recruited subject-matter experts to raise trainers’ capacity to teach cultural competency and elimination-of-bias topics. Jamont said those sessions drew more than 100 attendees from eight states.

- Entry pathways and PREA: Jamont described regulatory changes that expanded practical‑experience pathways, including a practicum program (PREA), to reduce a previously narrow supervisory entry model that limited access to the profession.

- Investigations and bias complaints: The bureau said it strengthened complaint-investigation capacity and trained staff using HUD materials on racial bias and appraisal.

- Disaster response and consumer guidance: In response to recent Southern California wildfires, the bureau said it provided an executive-order fee reprieve for license renewals in affected zip codes, published a consumer guide for homeowners with fire-damaged properties and coordinated communications with the Department of Consumer Affairs’ call center.

- Federal grant: The bureau said it secured a three‑year federal grant capped at $120,000 per year; the bureau received $76,000 in the first year to support implementation work.

Questions from lawmakers and outstanding items

Committee members pressed the bureau on wildfire response and the prospect of an influx of appraisal complaints as recovery advances. Senators asked how the bureau will help homeowners avoid predatory offers and handle complaints once they arrive. Jamont and Kirkmire said they expected calls to increase as recovery moves from immediate response to property transactions and urged consumers to confirm appraiser licensure on the bureau’s website.

Lawmakers also asked whether California should move from a “nonmandatory” appraisal state (where licensure is only required for federally related transactions) to a mandatory state. Staff said the bureau is prepared to work with the Legislature on that question but made no recommendation at the hearing.

What the record shows

- The Bureau implemented AB 948 provisions requiring consumer notices for property sales, updated complaint forms and new continuing-education requirements. - Jamont described national engagement with the Appraisal Foundation and PAVE and said California’s regulatory steps were highlighted at federal hearings. - The bureau reported a demographic survey of 2,500 responses in June 2023 (about a 27% response rate).

Outlook and next steps

The committees will decide whether to extend the bureau’s authority beyond the Jan. 1, 2026 sunset date. Lawmakers asked whether fee levels, fund solvency and workforce recruitment efforts (including expanded entry paths) are sufficient; the bureau said it will continue outreach, monitor complaint flows stemming from disasters and work with the Legislature on structural questions such as mandatory licensure.

Ending note: Committee members emphasized protecting homeowners after disasters and asked the bureau to continue outreach to community colleges and to share data and research documenting valuation disparities when available.