HR-5443-118
Became Public Law No: 118-230.
Sponsored by Susie Lee (D-NV)
What it does
The AACE Act changes the rules for who can appraise real property in transactions overseen by the Department of the Interior. Under the new law, a private appraiser licensed or certified in any one state may perform appraisals for Interior-jurisdiction transactions nationwide. Interior must still prefer appraisers licensed in the state where the transaction occurs, but may use out-of-state appraisers if local appraisers are unavailable, unqualified for the assignment, or not cost-competitive. Interior must also make all related appraisal policies publicly available.
Who benefits
Private real property appraisers licensed in one state who were previously ineligible to work on Interior-jurisdiction transactions in other states — they gain access to a broader national market. The Department of the Interior, which gains flexibility to complete land transactions more quickly when local appraisers are scarce. Parties to land transactions (e.g., landowners, tribes, conservation groups, developers) who may experience faster appraisal timelines. Rural and remote areas where qualified local appraisers may be in short supply.
Who is hurt
State-licensed appraisers in states where Interior transactions are common (e.g., Western states with large federal landholdings) who previously had a geographic advantage — they now face increased competition from out-of-state appraisers. State appraisal licensing boards, which lose some practical authority over who performs appraisals within their borders on federally overseen transactions. Parties who believe local appraisers have superior knowledge of local land markets and may receive less accurate valuations from out-of-state appraisers.
Supporters argue
Supporters argue that requiring appraisers to be licensed in the specific state where a transaction occurs creates unnecessary bottlenecks, particularly in Western states where the federal government manages vast tracts of land but the pool of locally licensed appraisers is small. This shortage can delay conservation purchases, tribal land restorations, and other public interest transactions for months or years. The bill preserves a clear preference for local appraisers while giving Interior a practical safety valve when local capacity is insufficient. Supporters also contend that national appraiser certification standards are already rigorous and uniform enough that a certified appraiser from one state is fully competent to value property in another, making the state-by-state licensing requirement an outdated barrier rather than a meaningful quality control measure. The added transparency requirement — making appraisal policies public — further strengthens accountability.
Opponents argue
Opponents argue that real property valuation is inherently local, and that appraisers unfamiliar with a specific state's land market, water rights, zoning laws, and comparable sales data are more likely to produce inaccurate valuations. In the context of Interior transactions — which can involve tribal lands, conservation easements, and resource-rich parcels — an inaccurate appraisal could result in the federal government overpaying or underpaying, harming taxpayers or landowners respectively. Critics also contend that the "unavailable, unqualified, or not cost-competitive" exceptions are broad enough to routinely displace local appraisers in favor of cheaper out-of-state alternatives, effectively undermining the stated preference for local expertise. Finally, opponents may argue that weakening state licensing jurisdiction over federally overseen transactions sets a precedent for further erosion of state professional licensing authority.
Constitutional context
The bill operates within the Property Clause (Art. IV, Sec. 3, Cl. 2), which grants Congress broad authority over federal lands and property. The Commerce Clause underpins federal regulation of real estate transactions that cross state lines. The bill does not raise significant Tenth Amendment concerns on its face, as it governs federal agency procedures rather than commandeering state governments. Post-Loper Bright (2024), courts would independently review Interior's interpretation of terms like "unavailable" or "not assignment qualified" rather than deferring to the agency, which could affect how broadly Interior applies the out-of-state appraiser exception in practice.
Checks and balances
The executive branch (Department of the Interior) gains operational flexibility — it can now engage out-of-state appraisers without being bound by state licensing geography. Congress retains oversight through the new public disclosure requirement, which makes Interior's appraisal policies transparent and subject to congressional scrutiny. State governments lose some practical influence over who performs appraisals on federally overseen transactions within their borders, though state licensing standards themselves are not preempted.
Historical precedent
The Uniform Standards of Professional Appraisal Practice (USPAP), adopted federally under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), established national appraisal standards and a state-based licensing framework. This bill modifies how Interior applies that framework for its specific transactions, representing an incremental adjustment rather than a wholesale departure.