(a) Grounds for disciplinary action:

1. (1) The State Board of Appraisers, Abstracters, and Home Inspectors may deny, suspend, revoke, or refuse to issue a renewal registration of an appraisal management company or may restrict or limit the activities of said company or a person who owns an interest in or participates in the business of the appraisal management company if the board finds that any of the following circumstances apply to the applicant, owner, registrant, a partner, a member, a manager or officer, director, managing principal, controlling person, or persons occupying a similar status or performing similar functions or a person directly or indirectly controlling the registrant:

   1. (A) The person’s application for registration is found to contain statements that considering the circumstances under which it was made is false or misleading with respect to a material fact;
   2. (B) The person has violated or failed to comply with this part and Arkansas statutes;
   3. (C) The person has pleaded guilty or nolo contendere to or been found guilty of:

(i) A felony listed in Arkansas Code § 17-3-102; or

1. (ii) Within the past ten (10) years:

(b) (b) An offense involving breach of trust or fraudulent or dishonest dealing;

1. (D) The person is permanently or temporarily enjoined by a court of competent jurisdiction from engaging in or continuing to conduct any practice involving appraisal management services or operating an AMC;

   1. (E) The person is the subject of an order by the board or any other state AMC regulatory agency denying, suspending, or revoking the person’s privilege to operate as an AMC;
   2. (F) The person acted as an AMC while not properly registered by this board; or
   3. (G) The person failed to pay the proper filing or renewal fees at the appropriate time; or
2. (2) A violation of the prohibited activities outlined in Arkansas Code § 17-14-408 are grounds on which the board may file its own complaint against the AMC or on which any party may make a written complaint.

(b) Complaints and board procedures.

1. (1) The board may conduct disciplinary proceedings from time to time and may cause the actions of an AMC against whom a complaint has been filed to be investigated.

2. (2)

   1. (A) For a complaint to be considered, the complainant shall file the complaint in writing.
   2. (B) Complaints shall be filed within three (3) years from the date of the actions complained of.

   3. (C) The written complaint shall specifically state the:

      1. (i) Issues of the complaint; and
      2. (ii) Date or dates on which the events causing or leading to the complaint occurred.
3. (3) The Executive Director of the State Board of Appraisers, Abstracters, and Home Inspectors, Chief Investigator, or authorized employee of the board, upon receiving any such complaint, shall present the complaint to a board committee or panel to determine if the board has jurisdiction to proceed.
4. (4) The board may initiate its own complaint when sufficient documents and information (i.e., appraisal reports, reviews, or outlined deficiencies) are available on which to conclude that the uniform standards, the state law, or this part may have been violated.

5. (5)

   1. (A) If jurisdiction is established or the board initiates its own complaint, the executive director or board staff shall notify in writing every person complained against and provide each person an opportunity to respond in writing.
   2. (B) A copy of the written complaint shall be furnished to the AMC under investigation and a copy of the AMC’s response shall be furnished to the complainant.
   3. (C) AMCs failing to respond in writing within thirty (30) days of receipt of the complaint will be deemed unresponsive and the complaint will be further considered without benefit of the AMC’s input.
6. (6) The executive director, Chief Investigator, or authorized employee may proceed at any time after jurisdiction has been established to investigate said complaint and take statements from any person thought to have any knowledge of any facts pertaining thereto.

7. (7) The board may request the AMC to:

   1. (A) Answer the charges made against him or her in writing;
   2. (B) Produce relevant documentary evidence; and
   3. (C) Appear before the board.
8. (8) Every properly filed complaint shall be presented to and reasonably disposed of by the board.

9. (9) The board may:

   1. (A) Subpoena and issue subpoena duces tecum and bring before it any person in this state or licensed by the board;
   2. (B) Take testimony by deposition in the same manner as prescribed by law in judicial proceedings in the courts of this state; or
   3. (C) Require production of any records relevant to any inquiry or hearing by the board.

10. (10) Disciplinary hearings shall be conducted according to the Arkansas Administrative Procedure Act, Arkansas Code § 25-15-201 et seq.

    1. (c) Complaint adjudication and publication of action.
11. (1) Any AMC who fails to timely renew their registration or elects to surrender their registration while a complaint is pending will be unable to have their registration reinstated until the complaint has been resolved.

12. (2) If a disciplinary hearing or informal conference is pending at the time of surrender:

    1. (A) The scheduled hearings will proceed with or without the AMC’s participation; and
    2. (B) Any disciplinary action resulting from the hearing shall be placed in the AMC’s file and addressed prior to any reinstatement of their credentials.