(a) The Board may take disciplinary action, or deny issuing or renewing a license to an applicant, any time it is determined that the person applying for, renewing, or holding the license or the AMC's primary contact:
  (1) disregards or violates a provision of the AMC Act or Board rules;
  (2) is convicted of a felony;
  (3) fails to notify the Board not later than the 30th day after the date of the final conviction if the person, in a court of this or another state or in a federal court, has been convicted of or entered a plea of guilty or nolo contendere to a felony or a criminal offense involving fraud or moral turpitude;
  (4) fails to notify the Board not later than the 30th day after the date of incarceration if the person, in this or another state, has been incarcerated for a criminal offense involving fraud or moral turpitude;
  (5) fails to notify the Board of the following with regard to any professional or occupational license held by the person in Texas or another jurisdiction not later than the 30th day after the date:
    (A) disciplinary action becomes final against the person; or
    (B) the person voluntarily surrenders any professional or occupational license;
  (6) fails to require appraisal assignments be completed in compliance with the USPAP edition in effect at the time of the appraisal or appraisal practice;
  (7) acts or holds any person out as a registered AMC under the AMC Act or another state's act when not so licensed or certified;
  (8) accepts payment for appraisal management services but fails to deliver the agreed service in the agreed upon manner;
  (9) refuses to refund payment received for appraisal management services when he or she has failed to deliver the appraiser service in the agreed upon manner;
  (10) accepts payment for services contingent upon a minimum, maximum, or pre-agreed value estimate;
  (11) offers to perform appraisal management services or agrees to perform such services when employment to perform such services is contingent upon a minimum, maximum, or pre-agreed value estimate;
  (12) makes a material misrepresentation or omission of material fact;
  (13) has had a registration as an AMC revoked, suspended, or otherwise acted against by any other jurisdiction for an act which is an offense under Texas law;
  (14) procures a registration pursuant to the AMC Act by making false, misleading, or fraudulent representation;
  (15) has had a final civil judgment entered against him or her on any one of the following grounds:
    (A) fraud;
    (B) intentional or knowing misrepresentation; or
    (C) grossly negligent misrepresentation in the making of real estate appraiser services;
  (16) fails to make good on a payment issued to the Board within 30 days after the Board has mailed a request for payment by certified mail to the license holder's primary contact as reflected in the Board's records;
  (17) knowingly or willfully engages in false or misleading conduct or advertising with respect to client solicitation;
  (18) uses any title, designation, initial or other insignia or identification that would mislead the public as to that person's credentials, qualifications, competency, or ability to provide appraisal management services;
  (19) requires an appraiser to pay for or reimburse the AMC for a criminal history check;
  (20) fails to comply with a final order of the Board; or
  (21) fails to answer all inquiries concerning matters under the jurisdiction of the Board within 20 days of notice to said person's or primary contact's address of record, or within the time period allowed if granted a written extension by the Board.
(b) The Board has discretion in determining the appropriate penalty for any violation under subsection (a) of this section.
(c) The Board may probate a penalty or sanction, and may impose conditions of the probation, including, but not limited to:
  (1) the type and scope of appraisal management practice;
  (2) requirements for additional education by the AMC's controlling persons;
  (3) monetary administrative penalties; and
  (4) requirements for reporting appraisal management activity to the Board.
(d) A person applying for reinstatement after revocation or surrender of a registration must comply with all requirements that would apply if the registration had instead expired.
(e) The provisions of this section do not relieve a person from civil liability or from criminal prosecution under the AMC Act or under the laws of this State.
(f) The Board may not investigate under this section a complaint submitted more than four years after the date on which the alleged violation occurred involving the AMC that is the subject of the complaint.
(g) Except as provided by Texas Penal Code §32.32(d), there will be no undercover or covert investigations conducted by authority of the AMC Act.
(h) The Board reports to the Appraisal Subcommittee any disciplinary action taken by the Board against an AMC required to register under the AMC Act.

Source Note: The provisions of this §159.201 adopted to be effective November 3, 2011, 36 TexReg 7320; amended to be effective December 14, 2014, 39 TexReg 9668; amended to be effective December 11, 2016, 41 TexReg 9708; amended to be effective December 10, 2017, 42 TexReg 6928; amended to be effective December 25, 2022, 47 TexReg 8272; amended to be effective December 3, 2023, 48 TexReg 6905