[House Report 118-565]
[From the U.S. Government Publishing Office]


118th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      118-565

======================================================================



 
          ACCELERATING APPRAISALS AND CONSERVATION EFFORTS ACT

                                _______
                                

 June 27, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Westerman, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5443]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 5443) to establish a policy regarding appraisal 
and valuation services for real property for a transaction over 
which the Secretary of the Interior has jurisdiction, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Accelerating Appraisals and 
Conservation Efforts Act'' or the ``AACE Act''.

SEC. 2. APPRAISAL AND VALUATION SERVICES FOR REAL PROPERTY.

  (a) License, Certification Requirement.--A covered appraiser needs to 
be licensed or certified in only 1 State to perform appraisal or 
valuation services for real property in any State for a transaction 
over which the Secretary has jurisdiction.
  (b) Use of Non-Federal Covered Appraisers.--If the Secretary uses a 
non-Federal covered appraiser to perform appraisal or valuation 
services for real property for a transaction described in subsection 
(a), the Secretary--
          (1) shall, to the maximum extent practicable, use a non-
        Federal covered appraiser who is a certified general real 
        property appraiser licensed in a State in which the real 
        property that is the subject of the transaction is located; and
          (2) may only use a non-Federal covered appraiser who is a 
        certified general real property appraiser licensed in a State 
        other than one in which the real property that is the subject 
        of the transaction is located if a non-Federal covered 
        appraiser described in paragraph (1) is, as determined by the 
        Secretary--
                  (A) unavailable to complete an assignment within a 
                reasonable period of time;
                  (B) not assignment qualified; or
                  (C) not cost competitive.
  (c) Report.--Not later than 1 year after the date of the enactment of 
this section, and annually thereafter for at least the following 4 
years, the Secretary shall submit to Congress a report that includes 
the following:
          (1) A comparison using quantitative data of--
                  (A) the number of requests for appraisal and 
                valuation services received by the Department during 
                the reporting period and the number of requests for 
                such services received by the Department in each of the 
                5 years before the reporting period; and
                  (B) the amount of time required for the Department to 
                complete a request for appraisal or valuation services 
                before the date of the enactment of this section and 
                after the date of the enactment of this section.
          (2) A qualitative assessment of the impact of subsection (a) 
        in providing flexibility to the Secretary when contracting with 
        non-Federal covered appraisers.
          (3) Recommendations, if any, for congressional action that 
        could help the Department operate more efficiently or overcome 
        challenges with respect to timely completion of requests for 
        appraisal or valuation services while ensuring the 
        independence, impartiality, and objectivity of such services.
          (4) An overview of the workforce of the Department with 
        regard to appraisal and valuation services provided by the 
        Department, including hiring and staffing during the reporting 
        period with respect to employees and contractors of the 
        Department.
          (5) A complete list of cases in which the authority granted 
        under section 2 of this Act was used during the reporting 
        period, describing for each case the specific criteria used to 
        satisfy the conditions of this Act.
  (d) Statutory Clarifications.--
          (1) Applicability of relevant laws and regulations.--Except 
        as provided in paragraph (3), nothing in this section shall be 
        interpreted to affect the application of any Federal or State 
        law or regulation to a non-Federal covered appraiser with 
        regard to the performance by such non-Federal covered appraiser 
        of appraisal and valuation services for real property.
          (2) Jurisdiction requirement.--Nothing in this section shall 
        be interpreted to authorize a non-Federal covered appraiser to 
        perform appraisal and valuation services for real property in a 
        State in which such non-Federal covered appraiser is not 
        licensed or certified to perform such services except to the 
        extent that such services are performed for a transaction over 
        which the Secretary has jurisdiction.
          (3) Nonapplicability of certain relevant laws and 
        regulations.--Any provision of a Federal or State law or 
        regulation enacted before the date of the enactment of this 
        section that requires a covered appraiser to be licensed or 
        certified in a specific State to perform appraisal or valuation 
        services for real property in that State shall not apply to any 
        transaction over which the Secretary has jurisdiction.
  (e) Public Availability.--Not later than 90 days after the enactment 
of this Act, the text of all policies (including any successor 
policies), including reference manuals, guidance documents, handbooks, 
standard operating procedures, and statements of policy specific to the 
scoping, contracting, and review of appraisals performed for the 
Department by Federal or non-Federal covered appraisers, shall be made 
publicly available online and provided upon request.
  (f) Definitions.--In this section:
          (1) Covered appraiser.--The term ``covered appraiser'' means 
        a State-licensed or -certified real property appraiser.
          (2) Department.--The term ``Department'' means the Department 
        of the Interior.
          (3) Reporting period.--The term ``reporting period'' means 
        the 1-year period before the date on which a report is 
        submitted under subsection (c).
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (5) State.--The term ``State'' means each of the several 
        States, the District of Columbia, and each territory and 
        possession of the United States.

                       PURPOSE OF THE LEGISLATION

    The purpose of H.R. 5443 is to establish a policy regarding 
appraisal and valuation services for real property for a 
transaction over which the Secretary of the Interior has 
jurisdiction, and for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Department of the Interior (DOI) manages more than 480 
million acres of federal lands and 700 million acres of 
subsurface minerals, the vast majority of which is located out 
West. DOI conducts many land-related transactions--including 
acquisitions, disposals, and exchanges of federal land--that 
are either mandated by law or proposed administratively in 
order to address various land management challenges, such as 
checkerboarded land ownership patterns. These transactions must 
be appraised by qualified appraisers in accordance with 
applicable standards found in the Uniform Appraisal Standards 
for Federal Land Acquisitions and the Uniform Standards of 
Professional Appraisal Practice to determine fair market value.
    In fiscal year 2022, DOI completed more than 294 land 
valuation cases, representing approximately 214,000 acres. A 
nationwide appraiser shortage and rising demand for land-
related transactions on millions of acres of land, however, 
have created an appraisal backlog that threatens DOI's ability 
to fulfill its appraisal responsibility in a timely and 
reasonable manner. This prevents DOI from quickly disposing of 
land to open up new economic development or recreational 
opportunities for local communities.
    H.R. 5443, the ``Accelerating Appraisals and Conservation 
Efforts Act,'' streamlines DOI's appraisal contracting 
authority by allowing non-federal appraisers who are 
appropriately credentialed in one state or territory to perform 
appraisal and valuation services on DOI's behalf in any state 
or territory. DOI already regularly relies on non-federal 
appraisers to meet the demand for appraisal activities, but 
these appraisers are required to be licensed or certified in 
each state in which they are contracted by DOI. Federal 
appraisers, by contrast, have since 1992 been allowed to be 
licensed or certified in only one state or territory to perform 
appraisal duties on behalf of the federal government. By 
standardizing the treatment of federal and non-federal 
appraisers, the bill gives DOI flexibility in circumstances 
when no assignment-qualified or cost-competitive local 
appraisers are available. This will reduce red tape and allow 
land to be managed more effectively and efficiently without 
compromising the standards by which fair market valuations are 
made.

                            COMMITTEE ACTION

    H.R. 5443 was introduced on September 13, 2023, by 
Representative Susie Lee (D-NV). The bill was referred to the 
Committee on Natural Resources, and within the Committee to the 
Subcommittee on Federal Lands. On January 31, 2024, the 
Subcommittee on Federal Lands held a hearing on the bill. On 
March 12, 2024, the Committee on Natural Resources met to 
consider the bill. The Subcommittee on Federal Lands was 
discharged from further consideration of H.R. 5443 by unanimous 
consent. Representative Susie Lee (D-NV) offered an Amendment 
designated Lee #1. The amendment was agreed to by unanimous 
consent. The bill, as amended, was ordered favorably reported 
to the House of Representatives by unanimous consent.

                                HEARINGS

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing by the Subcommittee on Federal Lands held on January 
31, 2024.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 names the bill the ``Accelerating Appraisals and 
Conservation Efforts Act'' or the ``AACE Act''.

Section 2. Appraisal and valuation services for real property

    Section 2 allows DOI to contract with private appraisers 
who are appropriately credentialed in one state or territory to 
perform appraisal and valuation services on DOI's behalf in any 
state. Section 2 also requires DOI to prioritize working with 
local appraisers by specifying limited circumstances where non-
federal covered appraisers from out of state can be used to 
perform appraisal or valuation services. Section 2 directs DOI 
to submit a report to Congress one year after enactment of the 
bill and every four years on the implementation of the bill 
that also provides feedback on the effectiveness of the 
legislation. Section 2 also directs DOI to make public the text 
of all policies related to the scoping, contracting, and review 
of the appraisal process within 90 days after the enactment of 
the legislation.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      COMPLIANCE WITH HOUSE RULE XIII AND CONGRESSIONAL BUDGET ACT

    1. Cost of Legislation and the Congressional Budget Act. 
Pursuant to clause 3(c)(2) of House rule XIII and section 
308(a) of the Congressional Budget Act of 1974, and pursuant to 
clause 3(c)(3) of House rule XIII and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but no received from the Director of the Congressional Budget 
Office a budgetary analysis and a cost estimate of this bill.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to establish a policy regarding 
appraisal and valuation services for real property for a 
transaction over which the Secretary of the Interior has 
jurisdiction, and for other purposes.

                           EARMARK STATEMENT

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 UNFUNDED MANDATES REFORM ACT STATEMENT

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chair of 
the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee, if such 
estimate is not publicly available on the Congressional Budget 
Office website.

                           EXISTING PROGRAMS

    Directed Rule Making. This bill does not contain any 
directed rule makings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

                        CHANGES IN EXISTING LAW

    As ordered reported by the Committee on Natural Resources, 
H.R. 5443 makes no changes in existing law.

                                  [all]