1. (a) The Director of the Assessment Coordination Division may, for cause and after opportunity for a hearing:

   1. (1) Suspend or terminate the contract of any appraisal firm or county;
   2. (2) Suspend or terminate the appraisal manager status of an appraisal manager; or
   3. (3) Remove an appraisal firm from the list of eligible contractors.

2. (b)

   1. (1) Whenever an audit indicates standards established elsewhere in this part have not been met, the responsible party will be given the opportunity to dispute the audit results.
   2. (2) Upon a final determination that standards have not been met, the director may declare the reappraisal to be out of compliance and/or require corrective action.

   3. (3) Factors that can influence the director’s decision include, but are not limited to:

      1. (A) The significance of the problem;
      2. (B) The cause of the problem; and
      3. (C) Previous violations.

3. (c)

   1. (1) Value-related elements are considered significant for these purposes when they are estimated to affect market value by two thousand dollars ($2,000) or more.
   2. (2) An insignificant problem can become significant when the county or appraisal firm fails to correct the problem.

4. (d)

   1. (1) When the reappraisal is determined to be out of compliance:

      1. (A) That finding will be reported by certified mail to the county assessor and appraisal manager; and
      2. (B) Reappraisal funding will be withheld or terminated.

   2. (2) The aforementioned letter will be copied to the:

      1. (A) Board of equalization;
      2. (B) County judge;
      3. (C) Quorum court; and
      4. (D) Contractor, when applicable.

   3. (3)

      1. (A) The aggrieved party shall have thirty (30) days from the date of the certified letter to request a hearing.
      2. (B) If a hearing is requested, funds will continue to be withheld pending results of the hearing.
5. (e) Failure to pass the ratio study causes a county to be out of compliance, and reappraisal funding will be withheld immediately when a county fails the study.

6. (f)

   1. (1) If funding has not been terminated and out of compliance is due to causes other than a failed ratio study, the responsible party may sign, date, and return the enclosed Compliance Verification Form (Form A-17) within thirty (30) calendar days of the date of the certified letter and agree to complete corrective action as required in order to return to compliance without a hearing.
   2. (2) Withheld funds will be released and payments will be resumed in accordance with the specifications of the Compliance Verification Form.

   3. (3) Termination of funding may occur if the aggrieved party does not either:

      1. (A) Request a hearing; or
      2. (B) Return the signed and dated Compliance Verification Form within thirty (30) days.

7. (g)

   1. (1) If funding has not been terminated and out of compliance is due to a failure to meet the level or uniformity standards for ratio studies, procedures shall apply as outlined in Arkansas Code § 26-26-304(f) and (g).
   2. (2) The reappraisal shall remain out of compliance and reappraisal funding shall continue to be withheld until completion of proper corrective action as required by a Compliance Verification Form.
8. (h) For any out of compliance situation, termination of funding may result if the responsible party fails to complete required corrective action.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "Adopted 10/01/99 Amended 4/2/01 Amended 3/3/02 Amended and implemented 4/9/04 by emergency procedure Amended 07/05/04 Amended 12/20/06 Corrected 09/25/08"