HB2818ham002 103RD GENERAL ASSEMBLY

Rep. Camille Y. Lilly

Filed: 3/21/2023

10300HB2818ham002 LRB103 29436 LNS 59804 a

AMENDMENT TO HOUSE BILL 2818

AMENDMENT NO. ______. Amend House Bill 2818 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Human Rights Act is amended by changing Sections 3-102.10 and 3-106 and by adding Sections 3-102.2 and 7-114 as follows:

(775 ILCS 5/3-102.2 new)

Sec. 3-102.2. Civil rights violations; conviction record.

(A) It is a civil rights violation for an owner or any other person engaging in a real estate transaction, or for a real estate broker or salesman, because of a conviction record, except as provided by subsection (C), to:

(1) refuse to engage in a real estate transaction or otherwise make unavailable or deny real property;

(2) alter the terms, conditions, or privilege of a real estate transaction or in the furnishing of facilities or services in connection therewith;

(3) refuse to receive or to fail to transmit a bona fide offer to engage in a real estate transaction from a person;

(4) refuse to negotiate for a real estate transaction with a person;

(5) represent to a person that real property is not available for inspection, sale, rental, or lease when in fact it is so available, or to fail to bring a property listing to his or her attention, or to refuse to permit him or her to inspect real property;

(6) make, print, circulate, post, mail, publish, or cause to be made, printed, circulated, posted, mailed, or published any notice, statement, advertisement, or sign, or use a form of application for a real estate transaction, or make a record or inquiry in connection with a prospective real estate transaction, that indicates any preference or limitation, or an intention to make any such preference, limitation, or discrimination; or

(7) offer, solicit, accept, use, or retain a listing of real property with knowledge that discrimination in a real estate transaction is intended.

(B) It is a civil rights violation to inquire into a person's conviction record prior to making a conditional offer to sell, lease, or rent real property. For the purposes of this subsection, "conditional offer" means an offer to sell, lease, or rent real property contingent on conducting a criminal history check or criminal background check.

(C) Nothing in this Article shall be construed to require an owner or any other person to conduct a criminal history check or criminal background check when engaging in a real estate transaction. An owner or any other person who elects to, or is otherwise required to, consider a person's conviction record in connection with a real estate transaction shall consider the following factors before making a preliminary decision that the conviction record is disqualifying:

(1) the nature and severity of the conduct underlying the conviction;

(2) the terms of the sentence;

(3) the number of convictions on the person's record;

(4) the age of the person at the time of the conviction;

(5) the length of time since the conviction; and

(6) evidence of rehabilitation.

(D) If after considering the factors in subsection (C), the owner or any other person engaging in a real estate transaction makes a preliminary decision that the conviction record is disqualifying, the owner or person engaging in a real estate transaction shall provide written notification to the disqualified person within 5 business days which shall contain the following:

(1) notice of the disqualifying conviction or convictions that are the basis of the preliminary decision and the reason or reasons for the disqualification;

(2) a copy of the conviction record or other information relied upon to make the preliminary decision to disqualify; and

(3) an explanation of the disqualified person's right to respond to the decision of the owner or any other person engaging in the real estate transaction before the preliminary decision becomes final. The explanation shall inform the disqualified person that the response may include, but is not limited to, submission of evidence challenging the accuracy of the conviction record that is the basis for the disqualification, or evidence of mitigation, such as rehabilitation.

(E) The disqualified person shall have at least 5 business days to respond to the notification as provided under subsection (D).

(F) The owner or person engaging in a real estate transaction shall consider information submitted by the disqualified person before making a final decision. If an owner or any other person engaging in a real estate transaction makes a final decision based on the disqualified person's conviction record, the owner or any other person engaging in the real estate transaction shall provide written notification to the disqualified person within 5 business days which shall contain the following:

(1) notice of the disqualifying conviction or convictions that are the basis of the final decision and the reasons for the disqualification;

(2) any existing procedure the owner or any other person engaging in the real estate transaction has for the disqualified person to challenge the decision or request reconsideration; and

(3) the right to file a charge with the Department.

(775 ILCS 5/3-102.10)

Sec. 3-102.10. Third-party loan modification service provider.

(A) It is a civil rights violation for a third-party loan modification service provider, because of unlawful discrimination, familial status, or an arrest record, or a conviction record, to:

(1) refuse to engage in loan modification services;

(2) alter the terms, conditions, or privileges of such services; or

(3) discriminate in making such services available, including, but not limited to, by making a statement, advertisement, representation, inquiry, listing, offer, or solicitation that indicates a preference or the intention to make such a preference in making such services available.

(B) For purposes of this Section, "third-party loan modification service provider" means a person or entity, whether licensed or not, who, for or with the expectation of receiving consideration, provides assistance or services to a loan borrower to obtain a modification to a term of an existing real estate loan or to obtain foreclosure relief. "Third-party loan modification service provider" does not include lenders, brokers or appraisers of mortgage loans, or the servicers, subsidiaries, affiliates, or agents of the lender.

(Source: P.A. 102-362, eff. 1-1-22.)

(775 ILCS 5/3-106) (from Ch. 68, par. 3-106)

Sec. 3-106. Exemptions. Nothing contained in Section 3-102 or 3-102.2 shall prohibit:

(A) Private Sales of Single Family Homes.

(1) Any sale of a single family home by its owner so long as the following criteria are met:

(a) The owner does not own or have a beneficial interest in more than three single family homes at the time of the sale;

(b) The owner or a member of his or her family was the last current resident of the home;

(c) The home is sold without the use in any manner of the sales or rental facilities or services of any real estate broker or salesman, or of any employee or agent of any real estate broker or salesman;

(d) The home is sold without the publication, posting or mailing, after notice, of any advertisement or written notice in violation of paragraph (F) of Section 3-102.

(2) This exemption does not apply to paragraph (F) of Section 3-102.

(B) Apartments. Rental of a housing accommodation in a building which contains housing accommodations for not more than 4 families living independently of each other, if the owner resides in one of the housing accommodations. This exemption does not apply to paragraph (F) of Section 3-102.

(C) Private Rooms. Rental of a room or rooms in a private home by an owner if he or she or a member of his or her family resides therein or, while absent for a period of not more than twelve months, if he or she or a member of his or her family intends to return to reside therein.

(D) Reasonable local, State, or Federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling.

(E) Religious Organizations. A religious organization, association, or society, or any nonprofit institution or organization operated, supervised or controlled by or in conjunction with a religious organization, association, or society, from limiting the sale, rental or occupancy of a dwelling which it owns or operates for other than a commercial purpose to persons of the same religion, or from giving preference to such persons, unless membership in such religion is restricted on account of race, color, or national origin.

(F) Sex. Restricting the rental of rooms in a housing accommodation to persons of one sex.

(G) Persons Convicted of Drug-Related Offenses. Conduct against a person because such person has been convicted by any court of competent jurisdiction of the illegal manufacture or distribution of a controlled substance as defined in Section 102 of the federal Controlled Substances Act (21 U.S.C. 802).

(H) Persons engaged in the business of furnishing appraisals of real property from taking into consideration factors other than those based on unlawful discrimination or familial status or source of income in furnishing appraisals.

(H-1) The owner of an owner-occupied residential building with 4 or fewer units (including the unit in which the owner resides) from making decisions regarding whether to rent to a person based upon that person's sexual orientation.

(I) Housing for Older Persons. No provision in this Article regarding familial status shall apply with respect to housing for older persons.

(1) As used in this Section, "housing for older persons" means housing:

(a) provided under any State or Federal program that the Department determines is specifically designed and operated to assist elderly persons (as defined in the State or Federal program); or

(b) intended for, and solely occupied by, persons 62 years of age or older; or

(c) intended and operated for occupancy by persons 55 years of age or older and:

(i) at least 80% of the occupied units are occupied by at least one person who is 55 years of age or older;

(ii) the housing facility or community publishes and adheres to policies and procedures that demonstrate the intent required under this subdivision (c); and

(iii) the housing facility or community complies with rules adopted by the Department for verification of occupancy, which shall:

(aa) provide for verification by reliable surveys and affidavits; and

(bb) include examples of the types of policies and procedures relevant to a determination of compliance with the requirement of clause (ii).

These surveys and affidavits shall be admissible in administrative and judicial proceedings for the purposes of such verification.

(2) Housing shall not fail to meet the requirements for housing for older persons by reason of:

(a) persons residing in such housing as of the effective date of this amendatory Act of 1989 who do not meet the age requirements of subsections (1)(b) or (c); provided, that new occupants of such housing meet the age requirements of subsections (1)(b) or (c) of this subsection; or

(b) unoccupied units; provided, that such units are reserved for occupancy by persons who meet the age requirements of subsections (1)(b) or (c) of this subsection.

(3)(a) A person shall not be held personally liable for monetary damages for a violation of this Article if the person reasonably relied, in good faith, on the application of the exemption under this subsection (I) relating to housing for older persons.

(b) For the purposes of this item (3), a person may show good faith reliance on the application of the exemption only by showing that:

(i) the person has no actual knowledge that the facility or community is not, or will not be, eligible for the exemption; and

(ii) the facility or community has stated formally, in writing, that the facility or community complies with the requirements for the exemption.

(J) Child Sex Offender Refusal to Rent. Refusal of a child sex offender who owns and resides at residential real estate to rent any residential unit within the same building in which he or she resides to a person who is the parent or guardian of a child or children under 18 years of age.

(K) Arrest Records. Inquiry into or the use of an arrest record if the inquiry or use is otherwise authorized by State or federal law.

(K-5) Conviction Record. Inquiry into or the use of a conviction record if the inquiry or use is otherwise authorized by State or federal law.

(L) Financial Institutions. A financial institution as defined in Article 4 from considering source of income in a real estate transaction in compliance with State or federal law.

(Source: P.A. 101-565, eff. 1-1-20; 102-896, eff. 1-1-23.)

(775 ILCS 5/7-114 new)

Sec. 7-114. Protected class status for formerly convicted persons.

(A) A formerly convicted person may petition the Department for a grant of protected class status as provided in this Section. The Department may grant protected class status to a formerly convicted person who meets the following conditions:

(1) the person has complied with each term and condition of the person's parole, mandatory supervised release, probation, or conditional discharge;

(2) if the person has not obtained a high school diploma or received a high school equivalency certificate and has not been diagnosed as a person having an intellectual or developmental disability that prevents the person from successfully passing the high school equivalency test, the person must have passed the high school equivalency test and been issued a high school equivalency certificate under Section 3-15.12 of the School Code;

(3) the person must:

(a) be employed or actively seeking employment unless the person has been diagnosed as a person having an intellectual or developmental disability that prevents the person from being employed; or

(b) be enrolled in or have successfully completed a vocational training or college educational program unless the person has been diagnosed as a person having an intellectual or developmental disability that prevents the person from successfully completing a vocational or college educational program;

(4) the person must, for a minimum of 5 years after completion of the person's parole, mandatory supervised release, probation, or conditional discharge, not have been convicted of a felony or misdemeanor under the laws of this State or a municipal or county ordinance of a county or municipality of this State, another state, territory, or possession of the United States, federal law, or the laws of another country that guarantees due process rights similar to those of the United States; and

(5) must have completed all sanctions imposed upon the person through due process of law for the person's conviction.

(B) The Department shall determine by rule:

(1) what constitutes having an intellectual or developmental disability that prevents the formerly convicted person from meeting the requirements of paragraphs (2) and (3) of subsection (A); and

(2) who is qualified to diagnose such a person.

(C) The Department shall adopt rules, subject to the Illinois Administrative Procedure Act, to carry out the provisions of this Section.

(D) Protected class status previously granted to a formerly convicted person under this Section shall be revoked by the Department after notice and a hearing, if the formerly convicted person is subsequently convicted of a felony or misdemeanor, other than a minor traffic offense, under the laws of this State, another state, territory, or possession of the United States, federal law, or the laws of another country that guarantees due process rights similar to those of the United States. The revocation process shall be initiated by a petition filed by a State's Attorney, the Attorney General, other prosecutor, or the Department, that sets forth the date of the subsequent offense, description of the offense, date of conviction for the subsequent offense, and sentence imposed for the conviction. A copy of the petition and notice of the hearing date on the petition shall be served on the formerly convicted person.

(E) Nothing in this Section shall preclude a law enforcement agency from continuing to conduct background investigations on applicants and employees or disqualifying applicants due to such investigations.".