It is enacted by the General Assembly as follows

SECTION 1. Section 5-20.7-3 of the General Laws in Chapter 5-20.7 entitled "Real Estate Appraiser Certification Act" is hereby amended to read as follows:

5-20.7-3. Certification required. -- (a) No person, other than persons certified in accordance with the provisions of this chapter, shall assume or use that title or any title, designation or abbreviation likely to create the impression of certification as a real estate appraiser by this state. A person who is not certified pursuant to this act shall not describe or refer to any appraisal or other valuation of real estate located in the state by the term "certified".

(b)(1) This chapter shall not preclude a person who is not certified as a state certified real estate appraiser from appraising residential property containing four (4) or fewer units for compensation under chapter 20.5 of this title.

(2) Such appraisals may be used in any court in this state to establish residential property valuation, but shall not be utilized for mortgage lending and/or for state or municipal valuation purposes.

(c) Nothing in this chapter shall preclude a person directly supervised by a certified appraiser from assisting in or preparing a certified appraisal and signing such appraisal provided the appraisal is approved and signed by a certified appraiser as appropriate.

{ADD (d) Any appraisal conducted by an (i) institution licensed in this state to accept deposits in connection with a loan transaction, (ii) or persons regulated or licensed under title 19 of the Rhode Island General Laws, other than those conducted by federally or NCUA insured banks, savings banks, or credit unions, or any transactions, municipal or state, regardless of monetary value, shall require an appraisal by a licensed or certified appraiser. ADD}

SECTION 2. This act shall take effect upon passage.