SB1866 EnrolledLRB103 26535 AMQ 52898 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Auction License Act is amended by changing
5Sections 10-30, 10-40, 10-50, 20-15, 20-43, 20-50, 20-65, and
630-30 and by adding Sections 20-110, 20-115, 25-110, and
725-115 as follows:
 
8    (225 ILCS 407/10-30)
9    (Section scheduled to be repealed on January 1, 2030)
10    Sec. 10-30. Expiration, renewal, and continuing education.
11    (a) License expiration dates, renewal periods, renewal
12fees, and procedures for renewal of licenses issued under this
13Act shall be set by rule of the Department. An entity may renew
14its license by paying the required fee and by meeting the
15renewal requirements adopted by the Department under this
16Section.
17    (b) All renewal applicants must provide proof as
18determined by the Department of having met the continuing
19education requirements by the deadline set forth by the
20Department by rule. At a minimum, the rules shall require an
21applicant for renewal licensure as an auctioneer to provide
22proof of the completion of at least 12 hours of continuing
23education during the pre-renewal period established by the

 

 

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1Department for completion of continuing education from schools
2approved by the Department, as established by rule.
3    (c) The Department, in its discretion, may waive
4enforcement of the continuing education requirements of this
5Section and shall adopt rules defining the standards and
6criteria for such waiver.
7    (d) (Blank).
8    (e) The Department shall not issue or renew a license if
9the applicant or licensee has an unpaid fine or fee from a
10disciplinary matter or from a non-disciplinary action imposed
11by the Department until the fine or fee is paid to the
12Department or the applicant or licensee has entered into a
13payment plan and is current on the required payments.
14    (f) The Department shall not issue or renew a license if
15the applicant or licensee has an unpaid fine or civil penalty
16imposed by the Department for unlicensed practice until the
17fine or civil penalty is paid to the Department or the
18applicant or licensee has entered into a payment plan and is
19current on the required payments.
20(Source: P.A. 102-970, eff. 5-27-22.)
 
21    (225 ILCS 407/10-40)
22    (Section scheduled to be repealed on January 1, 2030)
23    Sec. 10-40. Restoration.
24    (a) A licensee whose license has lapsed or expired shall
25have 2 years from the expiration date to restore licensure his

 

 

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1or her license without examination. The expired licensee shall
2make application to the Department on forms provided by the
3Department, provide evidence of successful completion of 12
4hours of approved continuing education during the period of
5time the license had lapsed, and pay all fees and penalties as
6established by rule.
7    (b) Notwithstanding any other provisions of this Act to
8the contrary, any licensee whose license under this Act has
9expired is eligible to restore such license without paying any
10lapsed fees and penalties if the license expired while the
11licensee was:
12        (1) on active duty with the United States Army, United
13    States Marine Corps, United States Navy, United States Air
14    Force, United States Coast Guard, the State Militia called
15    into service or training;
16        (2) engaged in training or education under the
17    supervision of the United States prior to induction into
18    military service; or
19        (3) serving as an employee of the Department, while
20    the employee was required to surrender the his or her
21    license due to a possible conflict of interest.
22    A licensee shall also be eligible to restore a license
23under paragraphs (1), (2), and (3) without completing the
24continuing education requirements for that licensure period.
25For this subsection for a period of 2 years following the
26termination of the service or education if the termination was

 

 

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1by other than dishonorable discharge and the licensee
2furnishes the Department with an affidavit specifying that the
3licensee has been so engaged.
4    (c) At any time after the suspension, revocation,
5placement on probationary status, or other disciplinary action
6taken under this Act with reference to any license, the
7Department may restore the license to the licensee without
8examination upon the order of the Secretary, if the licensee
9submits a properly completed application, pays the appropriate
10fees, and otherwise complies with the conditions of the order.
11(Source: P.A. 101-345, eff. 8-9-19.)
 
12    (225 ILCS 407/10-50)
13    (Section scheduled to be repealed on January 1, 2030)
14    Sec. 10-50. Fees; disposition of funds.
15    (a) The Department shall establish by rule a schedule of
16fees for the administration and maintenance of this Act. Such
17fees shall be nonrefundable.
18    (b) Prior to July 1, 2023, all fees collected under this
19Act shall be deposited into the General Professions Dedicated
20Fund and appropriated to the Department for the ordinary and
21contingent expenses of the Department in the administration of
22this Act. Beginning on July 1, 2023, all fees, fines,
23penalties, or other monies received or collected pursuant to
24this Act shall be deposited in the Division of Real Estate
25General Fund. On or after July 1, 2023, at the direction of the

 

 

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1Department, the Comptroller shall direct and the Treasurer
2shall transfer the remaining balance of funds collected under
3this Act from the General Professions Dedicated Fund to the
4Division of Real Estate General Fund.
5(Source: P.A. 102-970, eff. 5-27-22.)
 
6    (225 ILCS 407/20-15)
7    (Section scheduled to be repealed on January 1, 2030)
8    Sec. 20-15. Disciplinary actions; grounds. The Department
9may refuse to issue or renew a license, may place on probation
10or administrative supervision, suspend, or revoke any license
11or may reprimand or take other disciplinary or
12non-disciplinary action as the Department may deem proper,
13including the imposition of fines not to exceed $10,000 for
14each violation upon any licensee or applicant anyone licensed
15under this Act or any person or entity who holds oneself out as
16an applicant or licensee for any of the following reasons:
17        (1) False or fraudulent representation or material
18    misstatement in furnishing information to the Department
19    in obtaining or seeking to obtain a license.
20        (2) Violation of any provision of this Act or the
21    rules adopted under this Act.
22        (3) Conviction of or entry of a plea of guilty or nolo
23    contendere, as set forth in subsection (c) of Section
24    10-5, to any crime that is a felony or misdemeanor under
25    the laws of the United States or any state or territory

 

 

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1    thereof, or entry of an administrative sanction by a
2    government agency in this State or any other jurisdiction.
3        (3.5) Failing to notify the Department, within 30 days
4    after the occurrence, of the information required in
5    subsection (c) of Section 10-5.
6        (4) Being adjudged to be a person under legal
7    disability or subject to involuntary admission or to meet
8    the standard for judicial admission as provided in the
9    Mental Health and Developmental Disabilities Code.
10        (5) Discipline of a licensee by another state, the
11    District of Columbia, a territory of the United States, a
12    foreign nation, a governmental agency, or any other entity
13    authorized to impose discipline if at least one of the
14    grounds for that discipline is the same as or the
15    equivalent to one of the grounds for discipline set forth
16    in this Act or for failing to report to the Department,
17    within 30 days, any adverse final action taken against the
18    licensee by any other licensing jurisdiction, government
19    agency, law enforcement agency, or court, or liability for
20    conduct that would constitute grounds for action as set
21    forth in this Act.
22        (6) Engaging in the practice of auctioneering,
23    conducting an auction, or providing an auction service
24    without a license or after the license was expired,
25    revoked, suspended, or terminated or while the license was
26    inoperative.

 

 

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1        (7) Attempting to subvert or cheat on the auctioneer
2    exam or any continuing education exam, or aiding or
3    abetting another to do the same.
4        (8) Directly or indirectly giving to or receiving from
5    a person, firm, corporation, partnership, or association a
6    fee, commission, rebate, or other form of compensation for
7    professional service not actually or personally rendered,
8    except that an auctioneer licensed under this Act may
9    receive a fee from another licensed auctioneer from this
10    State or jurisdiction for the referring of a client or
11    prospect for auction services to the licensed auctioneer.
12        (9) Making any substantial misrepresentation or
13    untruthful advertising.
14        (10) Making any false promises of a character likely
15    to influence, persuade, or induce.
16        (11) Pursuing a continued and flagrant course of
17    misrepresentation or the making of false promises through
18    a licensee, agent, employee, advertising, or otherwise.
19        (12) Any misleading or untruthful advertising, or
20    using any trade name or insignia of membership in any
21    auctioneer association or organization of which the
22    licensee is not a member.
23        (13) Commingling funds of others with the licensee's
24    own funds or failing to keep the funds of others in an
25    escrow or trustee account.
26        (14) Failure to account for, remit, or return any

 

 

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1    moneys, property, or documents coming into the licensee's
2    possession that belong to others, acquired through the
3    practice of auctioneering, conducting an auction, or
4    providing an auction service within 30 days of the written
5    request from the owner of said moneys, property, or
6    documents.
7        (15) Failure to maintain and deposit into a special
8    account, separate and apart from any personal or other
9    business accounts, all moneys belonging to others
10    entrusted to a licensee while acting as an auctioneer,
11    auction firm, or as a temporary custodian of the funds of
12    others.
13        (16) Failure to make available to Department personnel
14    during normal business hours all escrow and trustee
15    records and related documents maintained in connection
16    with the practice of auctioneering, conducting an auction,
17    or providing an auction service within 24 hours after a
18    request from Department personnel.
19        (17) Making or filing false records or reports in the
20    licensee's practice, including, but not limited to, false
21    records or reports filed with State agencies.
22        (18) Failing to voluntarily furnish copies of all
23    written instruments prepared by the auctioneer and signed
24    by all parties to all parties at the time of execution.
25        (19) Failing to provide information within 30 days in
26    response to a written request made by the Department.

 

 

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1        (20) Engaging in any act that constitutes a violation
2    of Section 2-102, 3-103, or 3-105 of the Illinois Human
3    Rights Act.
4        (21) (Blank).
5        (22) Engaging in dishonorable, unethical, or
6    unprofessional conduct of a character likely to deceive,
7    defraud, or harm the public.
8        (23) Offering or advertising real estate for sale or
9    lease at auction without a valid broker or managing
10    broker's license under the Real Estate License Act of
11    1983, or any successor Act, unless exempt from licensure
12    under the terms of the Real Estate License Act of 2000, or
13    any successor Act, except as provided in Section 5-32 of
14    the Real Estate License Act of 2000.
15        (24) Inability to practice the profession with
16    reasonable judgment, skill, or safety as a result of a
17    physical illness, mental illness, or disability.
18        (25) A pattern of practice or other behavior that
19    demonstrates incapacity or incompetence to practice under
20    this Act.
21        (26) Being named as a perpetrator in an indicated
22    report by the Department of Children and Family Services
23    under the Abused and Neglected Child Reporting Act and
24    upon proof by clear and convincing evidence that the
25    licensee has caused a child to be an abused child or a
26    neglected child as defined in the Abused and Neglected

 

 

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1    Child Reporting Act.
2        (27) Inability to practice with reasonable judgment,
3    skill, or safety as a result of habitual or excessive use
4    or addiction to alcohol, narcotics, stimulants, or any
5    other chemical agent or drug.
6        (28) Willfully failing to report an instance of
7    suspected child abuse or neglect as required by the Abused
8    and Neglected Child Reporting Act.
9        (29) Violating the terms of any order issued by the
10    Department.
11(Source: P.A. 101-345, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
12    (225 ILCS 407/20-43)
13    (Section scheduled to be repealed on January 1, 2030)
14    Sec. 20-43. Investigations; notice and hearing. The
15Department may investigate the actions or qualifications of
16any person who is an applicant, unlicensed person, or person
17rendering or offering to render auction services, or holding
18or claiming to hold a license as a licensed auctioneer. At
19least 30 days before any disciplinary hearing under this Act,
20the Department shall: (i) notify the person charged accused in
21writing of the charges made and the time and place of the
22hearing; (ii) direct the person accused to file with the Board
23a written answer under oath to the charges within 20 days of
24receiving service of the notice; and (iii) inform the person
25accused that if the person he or she fails to file an answer to

 

 

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1the charges within 20 days of receiving service of the notice,
2a default judgment may be entered and the against him or her,
3or his or her license may be suspended, revoked, placed on
4probationary status, or other disciplinary action taken with
5regard to the license as the Department may consider proper,
6including, but not limited to, limiting the scope, nature, or
7extent of the licensee's practice, or imposing a fine.
8    At the time and place of the hearing fixed in the notice,
9the Board shall proceed to hear the charges, and the person
10accused or person's his or her counsel shall be accorded ample
11opportunity to present any pertinent statements, testimony,
12evidence, and arguments in the person's his or her defense.
13The Board may continue the hearing when it deems it
14appropriate.
15    Notice of the hearing may be served by personal delivery,
16by certified mail, or, at the discretion of the Department, by
17an electronic means to the person's licensee's last known
18address or email address of record or, if in the course of the
19administrative proceeding the party has previously designated
20a specific email address at which to accept electronic service
21for that specific proceeding, by sending a copy by email to the
22party's email address on record.
23(Source: P.A. 101-345, eff. 8-9-19.)
 
24    (225 ILCS 407/20-50)
25    (Section scheduled to be repealed on January 1, 2030)

 

 

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1    Sec. 20-50. Findings and recommendations. At the
2conclusion of the hearing, the Board shall present to the
3Secretary a written report of its findings of fact,
4conclusions of law, and recommendations. The report shall
5contain a finding whether or not the accused person charged
6violated this Act or any rules promulgated pursuant to this
7Act. The Board shall specify the nature of any violations and
8shall make its recommendations to the Secretary. In making
9recommendations for any disciplinary action, the Board may
10take into consideration all facts and circumstances bearing
11upon the reasonableness of the conduct of the person accused,
12including, but not limited to, previous discipline of the
13person accused by the Department, intent, degree of harm to
14the public and likelihood of future harm to the public, any
15restitution made by the person accused, and whether the
16incident or incidents contained in the complaint appear to be
17isolated or represent a continuing pattern of conduct. In
18making its recommendations for discipline, the Board shall
19endeavor to ensure that the severity of the discipline
20recommended is reasonably proportional to the severity of the
21violation.
22    The report of the Board's findings of fact, conclusions of
23law, and recommendations shall be the basis for the
24Department's decision to refuse to issue, restore, or renew a
25license, or to take any other disciplinary action. If the
26Secretary disagrees with the recommendations of the Board, the

 

 

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1Secretary may issue an order in contravention of the Board
2recommendations. The report's findings are not admissible in
3evidence against the person in a criminal prosecution brought
4for a violation of this Act, but the hearing and findings are
5not a bar to a criminal prosecution for the violation of this
6Act.
7    If the Secretary disagrees in any regard with the report
8of the Advisory Board, the Secretary may issue an order in
9contravention of the report. The Secretary shall provide a
10written report to the Advisory Board on any deviation and
11shall specify with particularity the reasons for that action
12in the final order.
13(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
 
14    (225 ILCS 407/20-65)
15    (Section scheduled to be repealed on January 1, 2030)
16    Sec. 20-65. Restoration of license. At any time after the
17suspension, or revocation, or probation of any license, the
18Department may restore the license to the accused person upon
19the written recommendation of the Advisory Board, unless after
20an investigation and a hearing the Advisory Board determines
21that restoration is not in the public interest.
22(Source: P.A. 95-572, eff. 6-1-08.)
 
23    (225 ILCS 407/20-110 new)
24    Sec. 20-110. Cease and desist orders. The Department may

 

 

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1issue a cease and desist order to a person who engages in
2activities prohibited by this Act. Any person in violation of
3a cease and desist order issued by the Department is subject to
4all of the penalties provided by law.
 
5    (225 ILCS 407/20-115 new)
6    Sec. 20-115. Statute of limitations. No action may be
7taken under this Act against a person or entity licensed under
8this Act unless the action is commenced within 5 years after
9the occurrence of the alleged violation. A continuing
10violation is deemed to have occurred on the date when the
11circumstances last existed that gave rise to the alleged
12continuing violation.
 
13    (225 ILCS 407/25-110 new)
14    Sec. 25-110. Licensing of auction schools.
15    (a) Only an auction school licensed by the Department may
16provide the continuing education courses required for
17licensure under this Act.
18    (b) An auction school may also provide the course required
19to obtain the real estate auction certification in Section
205-32 of the Real Estate License Act of 2000. The course shall
21be approved by the Real Estate Administration and Disciplinary
22Board pursuant to Section 25-10 of the Real Estate License Act
23of 2000.
24    (c) A person or entity seeking to be licensed as an auction

 

 

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1school under this Act shall provide satisfactory evidence of
2the following:
3        (1) a sound financial base for establishing,
4    promoting, and delivering the necessary courses;
5        (2) a sufficient number of qualified instructors;
6        (3) adequate support personnel to assist with
7    administrative matters and technical assistance;
8        (4) a qualified school administrator, who is
9    responsible for the administration of the school, courses,
10    and the actions of the instructors;
11        (5) proof of good standing with the Secretary of State
12    and authority to conduct business in this State; and
13        (6) any other requirements provided by rule.
14    (d) All applicants for an auction schools license shall
15make initial application to the Department in a manner
16prescribed by the Department and pay the appropriate fee as
17provided by rule. In addition to any other information
18required to be contained in the application as prescribed by
19rule, every application for an original or renewed license
20shall include the applicant's Taxpayer Identification Number.
21The term, expiration date, and renewal of an auction schools
22license shall be established by rule.
23    (e) An auction school shall provide each successful course
24participant with a certificate of completion signed by the
25school administrator. The format and content of the
26certificate shall be specified by rule.

 

 

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1    (f) All auction schools shall provide to the Department a
2roster of all successful course participants as provided by
3rule.
 
4    (225 ILCS 407/25-115 new)
5    Sec. 25-115. Course approval.
6    (a) Only courses that are approved by the Department and
7offered by licensed auction schools shall be used to meet the
8requirements of this Act and rules.
9    (b) An auction school licensed under this Act may submit
10courses to the Department for approval. The criteria,
11requirements, and fees for courses shall be established by
12rule.
13    (c) For each course approved, the Department shall issue
14certification of course approval to the auction school. The
15term, expiration date, and renewal of a course approval shall
16be established by rule.
 
17    (225 ILCS 407/30-30)
18    (Section scheduled to be repealed on January 1, 2030)
19    Sec. 30-30. Auction Advisory Board.
20    (a) There is hereby created the Auction Advisory Board.
21The Advisory Board shall consist of 7 members and shall be
22appointed by the Secretary. In making the appointments, the
23Secretary shall give due consideration to the recommendations
24by members and organizations of the industry, including, but

 

 

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1not limited to, the Illinois State Auctioneers Association.
2Five members of the Advisory Board shall be licensed
3auctioneers. One member shall be a public member who
4represents the interests of consumers and who is not licensed
5under this Act or the spouse of a person licensed under this
6Act or who has any responsibility for management or formation
7of policy of or any financial interest in the auctioneering
8profession. One member shall be actively engaged in the real
9estate industry and licensed as a broker or managing broker.
10The Advisory Board shall annually elect, at its first meeting
11of the fiscal year, one of its members to serve as Chairperson.
12    (b) The members' terms shall be for 4 years and until a
13successor is appointed. No member shall be reappointed to the
14Board for a term that would cause the member's cumulative
15service to the Board to exceed 12 10 years. Appointments to
16fill vacancies shall be made by the Secretary for the
17unexpired portion of the term. To the extent practicable, the
18Secretary shall appoint members to ensure that the various
19geographic regions of the State are properly represented on
20the Advisory Board. The Secretary shall remove from the Board
21any member whose license has been revoked or suspended and may
22remove any member of the Board for neglect of duty,
23misconduct, incompetence, or for missing 2 board meetings
24during any one fiscal year.
25    (c) Four Board members shall constitute a quorum. A quorum
26is required for all Board decisions. A vacancy in the

 

 

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1membership of the Board shall not impair the right of a quorum
2to exercise all of the rights and perform all of the duties of
3the Board.
4    (d) Each member of the Advisory Board may receive a per
5diem stipend in an amount to be determined by the Secretary.
6While engaged in the performance of duties, each member shall
7be reimbursed for necessary expenses.
8    (e) Members of the Advisory Board shall be immune from
9suit in an action based upon any disciplinary proceedings or
10other acts performed in good faith as members of the Advisory
11Board.
12    (f) The Advisory Board shall meet as convened by the
13Department.
14    (g) The Advisory Board shall advise the Department on
15matters of licensing and education and make recommendations to
16the Department on those matters and shall hear and make
17recommendations to the Secretary on disciplinary matters that
18require a formal evidentiary hearing.
19    (h) The Secretary shall give due consideration to all
20recommendations of the Advisory Board.
21(Source: P.A. 102-970, eff. 5-27-22.)
 
22    Section 10. The Community Association Manager Licensing
23and Disciplinary Act is amended by changing Sections 25, 32,
2460, 85, 95, and 130 as follows:
 

 

 

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1    (225 ILCS 427/25)
2    (Section scheduled to be repealed on January 1, 2027)
3    Sec. 25. Community Association Manager Licensing and
4Disciplinary Board.
5    (a) There is hereby created the Community Association
6Manager Licensing and Disciplinary Board, which shall consist
7of 7 members appointed by the Secretary. All members must be
8residents of the State and must have resided in the State for
9at least 5 years immediately preceding the date of
10appointment. Five members of the Board must be licensees under
11this Act. Two members of the Board shall be owners of, or hold
12a shareholder's interest in, a unit in a community association
13at the time of appointment who are not licensees under this Act
14and have no direct affiliation with the community
15association's community association manager. This Board shall
16act in an advisory capacity to the Department.
17    (b) The term of each member shall be for 4 years and until
18that member's successor is appointed. No member shall be
19reappointed to the Board for a term that would cause the
20member's cumulative service to the Board to exceed 12 10
21years. Appointments to fill vacancies shall be made by the
22Secretary for the unexpired portion of the term. The Secretary
23shall remove from the Board any member whose license has
24become void or has been revoked or suspended and may remove any
25member of the Board for neglect of duty, misconduct, or
26incompetence, or for missing 2 board meetings during any one

 

 

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1fiscal year. A member who is subject to formal disciplinary
2proceedings shall be disqualified from all Board business
3until the charge is resolved. A member also shall be
4disqualified from any matter on which the member cannot act
5objectively.
6    (c) Four Board members shall constitute a quorum. A quorum
7is required for all Board decisions. A vacancy in the
8membership of the Board shall not impair the right of a quorum
9to exercise all of the rights and perform all of the duties of
10the Board.
11    (d) The Board shall elect annually, at its first meeting
12of the fiscal year, a chairperson and vice chairperson.
13    (e) Each member shall be reimbursed for necessary expenses
14incurred in carrying out the duties as a Board member. The
15Board may receive a per diem stipend in an amount to be
16determined by the Secretary.
17    (f) The Board may recommend policies, procedures, and
18rules relevant to the administration and enforcement of this
19Act.
20    (g) Members of the Board shall be immune from suit in an
21action based upon any disciplinary proceedings or other acts
22performed in good faith as members of the Board.
23(Source: P.A. 102-20, eff. 1-1-22; 102-970, eff. 5-27-22.)
 
24    (225 ILCS 427/32)
25    (Section scheduled to be repealed on January 1, 2027)

 

 

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1    Sec. 32. Social Security Number or Individual Taxpayer
2Federal Tax Identification Number on license application. In
3addition to any other information required to be contained in
4the application, every application for an original license
5under this Act shall include the applicant's Social Security
6Number or Individual Taxpayer Federal Tax Identification
7Number, which shall be retained in the Department's records
8pertaining to the license. As soon as practical, the
9Department shall assign a customer's identification number to
10each applicant for a license.
11    Every application for a renewal or restored license shall
12require the applicant's customer identification number.
13(Source: P.A. 97-400, eff. 1-1-12; 98-365, eff. 1-1-14.)
 
14    (225 ILCS 427/60)
15    (Section scheduled to be repealed on January 1, 2027)
16    Sec. 60. Licenses; renewals; restoration; person in
17military service.
18    (a) The expiration date, fees, and renewal period for each
19license issued under this Act shall be set by rule. The
20Department may promulgate rules requiring continuing education
21and set all necessary requirements for such, including, but
22not limited to, fees, approved coursework, number of hours,
23and waivers of continuing education.
24    (b) Any licensee who has an expired license may have the
25license restored by applying to the Department and filing

 

 

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1proof acceptable to the Department of fitness to have the
2expired license restored, which may include sworn evidence
3certifying to active practice in another jurisdiction
4satisfactory to the Department, complying with any continuing
5education requirements, and paying the required restoration
6fee.
7    (c) Any person whose license expired while (i) in federal
8service on active duty with the Armed Forces of the United
9States or called into service or training with the State
10Militia, or (ii) in training or education under the
11supervision of the United States preliminary to induction into
12the military service, or (iii) serving as an employee of the
13Department may have the license renewed or restored without
14paying any lapsed renewal fees and without completing the
15continuing education requirements for that licensure period
16if, within 2 years after honorable termination of the service,
17training, or education, except under condition other than
18honorable, the licensee furnishes the Department with
19satisfactory evidence of engagement and that the service,
20training, or education has been so honorably terminated.
21    (d) A community association manager or community
22association management firm that notifies the Department, in a
23manner prescribed by the Department, may place the license on
24inactive status for a period not to exceed 2 years and shall be
25excused from the payment of renewal fees until the person
26notifies the Department in writing of the intention to resume

 

 

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1active practice.
2    (e) A community association manager or community
3association management firm requesting that the license be
4changed from inactive to active status shall be required to
5pay the current renewal fee and shall also demonstrate
6compliance with the continuing education requirements.
7    (f) No licensee with a nonrenewed or inactive license
8status or community association management firm operating
9without a designated community association manager shall
10provide community association management services as set forth
11in this Act.
12    (g) Any person violating subsection (f) of this Section
13shall be considered to be practicing without a license and
14will be subject to the disciplinary provisions of this Act.
15    (h) The Department shall not issue or renew a license if
16the applicant or licensee has an unpaid fine or fee from a
17disciplinary matter or from a non-disciplinary action imposed
18by the Department until the fine or fee is paid to the
19Department or the applicant or licensee has entered into a
20payment plan and is current on the required payments.
21    (i) The Department shall not issue or renew a license if
22the applicant or licensee has an unpaid fine or civil penalty
23imposed by the Department for unlicensed practice until the
24fine or civil penalty is paid to the Department or the
25applicant or licensee has entered into a payment plan and is
26current on the required payments.

 

 

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1(Source: P.A. 102-20, eff. 1-1-22; 102-970, eff. 5-27-22.)
 
2    (225 ILCS 427/85)
3    (Section scheduled to be repealed on January 1, 2027)
4    Sec. 85. Grounds for discipline; refusal, revocation, or
5suspension.
6    (a) The Department may refuse to issue or renew a license,
7or may place on probation, reprimand, suspend, or revoke any
8license, or take any other disciplinary or non-disciplinary
9action as the Department may deem proper and impose a fine not
10to exceed $10,000 for each violation upon any licensee or
11applicant under this Act or any person or entity who holds
12oneself out as an applicant or licensee for any one or
13combination of the following causes:
14        (1) Material misstatement in furnishing information to
15    the Department.
16        (2) Violations of this Act or its rules.
17        (3) Conviction of or entry of a plea of guilty or plea
18    of nolo contendere, as set forth in subsection (f) of
19    Section 40, to (i) a felony or a misdemeanor under the laws
20    of the United States, any state, or any other jurisdiction
21    or entry of an administrative sanction by a government
22    agency in this State or any other jurisdiction or (ii) a
23    crime that subjects the licensee to compliance with the
24    requirements of the Sex Offender Registration Act; or the
25    entry of an administrative sanction by a government agency

 

 

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1    in this State or any other jurisdiction.
2        (4) Making any misrepresentation for the purpose of
3    obtaining a license or violating any provision of this Act
4    or its rules.
5        (5) Professional incompetence.
6        (6) Gross negligence.
7        (7) Aiding or assisting another person in violating
8    any provision of this Act or its rules.
9        (8) Failing, within 30 days, to provide information in
10    response to a request made by the Department.
11        (9) Engaging in dishonorable, unethical, or
12    unprofessional conduct of a character likely to deceive,
13    defraud, or harm the public as defined by the rules of the
14    Department, or violating the rules of professional conduct
15    adopted by the Department.
16        (10) Habitual or excessive use or addiction to
17    alcohol, narcotics, stimulants, or any other chemical
18    agent or drug that results in the inability to practice
19    with reasonable judgment, skill, or safety.
20        (11) Having been disciplined by another state, the
21    District of Columbia, a territory, a foreign nation, or a
22    governmental agency authorized to impose discipline if at
23    least one of the grounds for the discipline is the same or
24    substantially equivalent of one of the grounds for which a
25    licensee may be disciplined under this Act. A certified
26    copy of the record of the action by the other state or

 

 

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1    jurisdiction shall be prima facie evidence thereof.
2        (12) Directly or indirectly giving to or receiving
3    from any person, firm, corporation, partnership, or
4    association any fee, commission, rebate, or other form of
5    compensation for any services not actually or personally
6    rendered.
7        (13) A finding by the Department that the licensee,
8    after having the license placed on probationary status,
9    has violated the terms of probation.
10        (14) Willfully making or filing false records or
11    reports relating to a licensee's practice, including, but
12    not limited to, false records filed with any State or
13    federal agencies or departments.
14        (15) Being named as a perpetrator in an indicated
15    report by the Department of Children and Family Services
16    under the Abused and Neglected Child Reporting Act and
17    upon proof by clear and convincing evidence that the
18    licensee has caused a child to be an abused child or
19    neglected child as defined in the Abused and Neglected
20    Child Reporting Act.
21        (16) Physical illness or mental illness or impairment
22    that results in the inability to practice the profession
23    with reasonable judgment, skill, or safety.
24        (17) Solicitation of professional services by using
25    false or misleading advertising.
26        (18) A finding that licensure has been applied for or

 

 

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1    obtained by fraudulent means.
2        (19) Practicing or attempting to practice under a name
3    other than the full name as shown on the license or any
4    other legally authorized name unless approved by the
5    Department.
6        (20) Gross overcharging for professional services
7    including, but not limited to, (i) collection of fees or
8    moneys for services that are not rendered; and (ii)
9    charging for services that are not in accordance with the
10    contract between the licensee and the community
11    association.
12        (21) Improper commingling of personal and client funds
13    in violation of this Act or any rules promulgated thereto.
14        (22) Failing to account for or remit any moneys or
15    documents coming into the licensee's possession that
16    belong to another person or entity.
17        (23) Giving differential treatment to a person that is
18    to that person's detriment on the basis of race, color,
19    sex, ancestry, age, order of protection status, marital
20    status, physical or mental disability, military status,
21    unfavorable discharge from military status, sexual
22    orientation, pregnancy, religion, or national origin.
23        (24) Performing and charging for services without
24    reasonable authorization to do so from the person or
25    entity for whom service is being provided.
26        (25) Failing to make available to the Department, upon

 

 

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1    request, any books, records, or forms required by this
2    Act.
3        (26) Purporting to be a designated community
4    association manager of a firm without active participation
5    in the firm and having been designated as such.
6        (27) Failing to make available to the Department at
7    the time of the request any indicia of licensure issued
8    under this Act.
9        (28) Failing to maintain and deposit funds belonging
10    to a community association in accordance with subsection
11    (b) of Section 55 of this Act.
12        (29) Violating the terms of any a disciplinary order
13    issued by the Department.
14        (30) Operating a community association management firm
15    without a designated community association manager who
16    holds an active community association manager license.
17        (31) For a designated community association manager,
18    failing to meet the requirements for acting as a
19    designated community association manager.
20        (32) Failing to disclose to a community association
21    any compensation received by a licensee from a third party
22    in connection with or related to a transaction entered
23    into by the licensee on behalf of the community
24    association.
25        (33) Failing to disclose to a community association,
26    at the time of making the referral, that a licensee (A) has

 

 

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1    greater than a 1% ownership interest in a third party to
2    which it refers the community association; or (B) receives
3    or may receive dividends or other profit sharing
4    distributions from a third party, other than a publicly
5    held or traded company, to which it refers the community
6    association.
7    (b) (Blank).
8    (c) The determination by a circuit court that a licensee
9is subject to involuntary admission or judicial admission, as
10provided in the Mental Health and Developmental Disabilities
11Code, operates as an automatic suspension. The suspension will
12terminate only upon a finding by a court that the patient is no
13longer subject to involuntary admission or judicial admission
14and the issuance of an order so finding and discharging the
15patient, and upon the recommendation of the Board to the
16Secretary that the licensee be allowed to resume practice as a
17licensed community association manager.
18    (d) In accordance with subsection (g) of Section 2105-15
19of the Department of Professional Regulation Law of the Civil
20Administrative Code of Illinois (20 ILCS 2105/2105-15), the
21Department may refuse to issue or renew or may suspend the
22license of any person who fails to file a return, to pay the
23tax, penalty, or interest shown in a filed return, or to pay
24any final assessment of tax, penalty, or interest, as required
25by any tax Act administered by the Department of Revenue,
26until such time as the requirements of that tax Act are

 

 

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1satisfied.
2    (e) In accordance with subdivision (a)(5) of Section
32105-15 of the Department of Professional Regulation Law of
4the Civil Administrative Code of Illinois (20 ILCS
52105/2105-15) and in cases where the Department of Healthcare
6and Family Services (formerly Department of Public Aid) has
7previously determined that a licensee or a potential licensee
8is more than 30 days delinquent in the payment of child support
9and has subsequently certified the delinquency to the
10Department, the Department may refuse to issue or renew or may
11revoke or suspend that person's license or may take other
12disciplinary action against that person based solely upon the
13certification of delinquency made by the Department of
14Healthcare and Family Services.
15    (f) (Blank).
16(Source: P.A. 102-20, eff. 1-1-22.)
 
17    (225 ILCS 427/95)
18    (Section scheduled to be repealed on January 1, 2027)
19    Sec. 95. Investigation; notice and hearing. The
20Department may investigate the actions or qualifications of a
21person, which includes an entity, or other business applying
22for, holding or claiming to hold, or holding oneself out as
23having a license or rendering or offering to render services
24for which a license is required by this Act and may notify
25their designated community association manager, if any, of the

 

 

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1pending investigation. Before suspending, revoking, placing on
2probationary status, or taking any other disciplinary action
3as the Department may deem proper with regard to any license,
4at least 30 days before the date set for the hearing, the
5Department shall (i) notify the person charged accused and the
6person's their designated community association manager, if
7any, in writing of any charges made and the time and place for
8a hearing on the charges before the Board, (ii) direct the
9person accused to file a written answer to the charges with the
10Board under oath within 20 days after the service on the person
11accused of such notice, and (iii) inform the person accused
12that if the person accused fails to file an answer, default
13will be taken against the person accused and the license of the
14person accused may be suspended, revoked, placed on
15probationary status, or other disciplinary action taken with
16regard to the license, including limiting the scope, nature,
17or extent of related practice, as the Department may deem
18proper. The Department shall serve notice under this Section
19by regular or electronic mail to the person's applicant's or
20licensee's last address of record or email address of record
21as provided to the Department. If the person accused fails to
22file an answer after receiving notice, the license may, in the
23discretion of the Department, be suspended, revoked, or placed
24on probationary status, or the Department may take whatever
25disciplinary action deemed proper, including limiting the
26scope, nature, or extent of the person's practice or the

 

 

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1imposition of a fine, without a hearing, if the act or acts
2charged constitute sufficient grounds for such action under
3this Act. The answer shall be served by personal delivery or
4regular mail or electronic mail to the Department. At the time
5and place fixed in the notice, the Department shall proceed to
6hear the charges and the parties or their counsel shall be
7accorded ample opportunity to present such statements,
8testimony, evidence, and argument as may be pertinent to the
9charges or to the defense thereto. The Department may continue
10such hearing from time to time. At the discretion of the
11Secretary after having first received the recommendation of
12the Board, the accused person's license may be suspended,
13revoked, or placed on probationary status or the Department
14may take whatever disciplinary action considered proper,
15including limiting the scope, nature, or extent of the
16person's practice or the imposition of a fine if the act or
17acts charged constitute sufficient grounds for that action
18under this Act. A copy of the Department's final disciplinary
19order shall be delivered to the person's accused's designated
20community association manager or may be sent to the community
21association that , if the accused is directly employs the
22person employed by a community association, to the board of
23managers of that association if known to the Department.
24(Source: P.A. 102-20, eff. 1-1-22.)
 
25    (225 ILCS 427/130)

 

 

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1    (Section scheduled to be repealed on January 1, 2027)
2    Sec. 130. Restoration of suspended or revoked license. At
3any time after the successful completion of a term of
4suspension, or revocation, or probation of a license, the
5Department may restore it to the licensee, upon the written
6recommendation of the Board, unless after an investigation and
7a hearing the Board determines that restoration is not in the
8public interest.
9(Source: P.A. 96-726, eff. 7-1-10.)
 
10    Section 15. The Home Inspector License Act is amended by
11changing Sections 5-10, 5-14, 5-16, 5-17, 15-10, 15-11, 15-15,
12and 25-27 as follows:
 
13    (225 ILCS 441/5-10)
14    (Section scheduled to be repealed on January 1, 2027)
15    Sec. 5-10. Application for home inspector license.
16    (a) Every natural person who desires to obtain a home
17inspector license shall:
18        (1) apply to the Department in a manner prescribed by
19    the Department and accompanied by the required fee; all
20    applications shall contain the information that, in the
21    judgment of the Department, enables the Department to pass
22    on the qualifications of the applicant for a license to
23    practice as a home inspector as set by rule;
24        (2) be at least 18 years of age;

 

 

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1        (3) successfully complete a 4-year course of study in
2    a high school or secondary school or an equivalent course
3    of study approved by the state in which the school is
4    located, or possess a State of Illinois High School
5    Diploma, which shall be verified under oath by the
6    applicant;
7        (4) personally take and pass a written examination and
8    a field examination authorized by the Department; and
9        (5) prior to taking the examination, provide evidence
10    to the Department that the applicant has successfully
11    completed the prerequisite classroom hours of instruction
12    in home inspection, as established by rule.
13    (b) The Department shall not require applicants to report
14the following information and shall not consider the following
15criminal history records in connection with an application for
16licensure or registration:
17        (1) juvenile adjudications of delinquent minors as
18    defined in Section 5-105 of the Juvenile Court Act of 1987
19    subject to the restrictions set forth in Section 5-130 of
20    that Act;
21        (2) law enforcement records, court records, and
22    conviction records of an individual who was 17 years old
23    at the time of the offense and before January 1, 2014,
24    unless the nature of the offense required the individual
25    to be tried as an adult;
26        (3) records of arrest not followed by a charge or

 

 

SB1866 Enrolled- 35 -LRB103 26535 AMQ 52898 b

1    conviction;
2        (4) records of arrest where the charges were dismissed
3    unless related to the practice of the profession; however,
4    applicants shall not be asked to report any arrests, and
5    an arrest not followed by a conviction shall not be the
6    basis of denial and may be used only to assess an
7    applicant's rehabilitation;
8        (5) convictions overturned by a higher court; or
9        (6) convictions or arrests that have been sealed or
10    expunged.
11    (c) An applicant or licensee shall report to the
12Department, in a manner prescribed by the Department, upon
13application and within 30 days after the occurrence, if during
14the term of licensure, (i) any conviction of or plea of guilty
15or nolo contendere to forgery, embezzlement, obtaining money
16under false pretenses, larceny, extortion, conspiracy to
17defraud, or any similar offense or offenses or any conviction
18of a felony involving moral turpitude, (ii) the entry of an
19administrative sanction by a government agency in this State
20or any other jurisdiction that has as an essential element
21dishonesty or fraud or involves larceny, embezzlement, or
22obtaining money, property, or credit by false pretenses, or
23(iii) a crime that subjects the licensee to compliance with
24the requirements of the Sex Offender Registration Act.
25    (d) Applicants have 3 years after the date of the
26application to complete the application process. If the

 

 

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1process has not been completed within 3 years, the application
2shall be denied, the fee forfeited, and the applicant must
3reapply and meet the requirements in effect at the time of
4reapplication.
5(Source: P.A. 102-20, eff. 1-1-22; 102-1100, eff. 1-1-23.)
 
6    (225 ILCS 441/5-14)
7    (Section scheduled to be repealed on January 1, 2027)
8    Sec. 5-14. Social Security Number or Individual Taxpayer
9Identification Number on license application. In addition to
10any other information required to be contained in the
11application, every application for an original, renewal,
12reinstated, or restored license under this Act shall include
13the applicant's Social Security Number or Individual Taxpayer
14Identification Number.
15(Source: P.A. 97-226, eff. 7-28-11.)
 
16    (225 ILCS 441/5-16)
17    (Section scheduled to be repealed on January 1, 2027)
18    Sec. 5-16. Renewal of license.
19    (a) The expiration date and renewal period for a home
20inspector license issued under this Act shall be set by rule.
21Except as otherwise provided in subsections (b) and (c) of
22this Section, the holder of a license may renew the license
23within 90 days preceding the expiration date by:
24        (1) completing and submitting to the Department a

 

 

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1    renewal application in a manner prescribed by the
2    Department;
3        (2) paying the required fees; and
4        (3) providing evidence of successful completion of the
5    continuing education requirements through courses approved
6    by the Department given by education providers licensed by
7    the Department, as established by rule.
8    (b) A home inspector whose license under this Act has
9expired may renew the license for a period of 2 years following
10the expiration date by complying with the requirements of
11subparagraphs (1), (2), and (3) of subsection (a) of this
12Section and paying any late penalties established by rule.
13    (c) Notwithstanding subsection (b), a home inspector whose
14license under this Act has expired may renew the license
15without paying any lapsed renewal fees or late penalties and
16without completing the continuing education requirements for
17that licensure period if (i) the license expired while the
18home inspector was (i) in federal service on active duty with
19the Armed Forces of the United States or called into service or
20training with the State Militia, (ii) in training or education
21under the supervision of the United States preliminary to
22induction into the military service, or (iii) serving as an
23employee of the Department and within 2 years after the
24termination of the service, training, or education, the
25licensee furnishes the Department with satisfactory evidence
26of service, training, or education and was terminated under

 

 

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1honorable conditions on active duty with the United States
2Armed Services, (ii) application for renewal is made within 2
3years following the termination of the military service or
4related education, training, or employment, and (iii) the
5applicant furnishes to the Department an affidavit that the
6applicant was so engaged.
7    (d) The Department shall provide reasonable care and due
8diligence to ensure that each licensee under this Act is
9provided a renewal application at least 90 days prior to the
10expiration date, but it is the responsibility of each licensee
11to renew the license prior to its expiration date.
12    (e) The Department shall not issue or renew a license if
13the applicant or licensee has an unpaid fine or fee from a
14disciplinary matter or from a non-disciplinary action imposed
15by the Department until the fine or fee is paid to the
16Department or the applicant or licensee has entered into a
17payment plan and is current on the required payments.
18    (f) The Department shall not issue or renew a license if
19the applicant or licensee has an unpaid fine or civil penalty
20imposed by the Department for unlicensed practice until the
21fine or civil penalty is paid to the Department or the
22applicant or licensee has entered into a payment plan and is
23current on the required payments.
24    (g) A home inspector who notifies the Department, in a
25manner prescribed by the Department, may place the license on
26inactive status for a period not to exceed 2 years and shall be

 

 

SB1866 Enrolled- 39 -LRB103 26535 AMQ 52898 b

1excused from the payment of renewal fees until the person
2notifies the Department in writing of the intention to resume
3active practice.
4    (h) A home inspector requesting that the license be
5changed from inactive to active status shall be required to
6pay the current renewal fee and shall also demonstrate
7compliance with the continuing education requirements.
8    (i) No licensee with a nonrenewed or inactive license
9status shall provide home inspection services as set forth in
10this Act.
11(Source: P.A. 102-20, eff. 1-1-22; 102-970, eff. 5-27-22.)
 
12    (225 ILCS 441/5-17)
13    (Section scheduled to be repealed on January 1, 2027)
14    Sec. 5-17. Renewal of home inspector license; entity.
15    (a) The expiration date and renewal period for a home
16inspector license for an entity that is not a natural person
17shall be set by rule. The holder of a license may renew the
18license within 90 days preceding the expiration date by
19completing and submitting to the Department a renewal
20application in a manner prescribed by the Department and
21paying the required fees.
22    (b) An entity that is not a natural person whose license
23under this Act has expired may renew the license for a period
24of 2 years following the expiration date by complying with the
25requirements of subsection (a) of this Section and paying any

 

 

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1late penalties established by rule.
2    (c) The Department shall not issue or renew a license if
3the applicant or licensee has an unpaid fine or fee from a
4disciplinary matter or from a non-disciplinary action imposed
5by the Department until the fine or fee is paid to the
6Department or the applicant or licensee has entered into a
7payment plan and is current on the required payments.
8    (d) The Department shall not issue or renew a license if
9the applicant or licensee has an unpaid fine or civil penalty
10imposed by the Department for unlicensed practice until the
11fine or civil penalty is paid to the Department or the
12applicant or licensee has entered into a payment plan and is
13current on the required payments.
14(Source: P.A. 102-20, eff. 1-1-22; 102-970, eff. 5-27-22.)
 
15    (225 ILCS 441/15-10)
16    (Section scheduled to be repealed on January 1, 2027)
17    Sec. 15-10. Grounds for disciplinary action.
18    (a) The Department may refuse to issue or renew, or may
19revoke, suspend, place on probation, reprimand, or take other
20disciplinary or non-disciplinary action as the Department may
21deem appropriate, including imposing fines not to exceed
22$25,000 for each violation upon any licensee or applicant
23under this Act or any person or entity who holds oneself out as
24an applicant or licensee , with regard to any license for any
25one or combination of the following:

 

 

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1        (1) Fraud or misrepresentation in applying for, or
2    procuring a license under this Act or in connection with
3    applying for renewal of a license under this Act.
4        (2) Failing to meet the minimum qualifications for
5    licensure as a home inspector established by this Act.
6        (3) Paying money, other than for the fees provided for
7    by this Act, or anything of value to an employee of the
8    Department to procure licensure under this Act.
9        (4) Conviction of, or plea of guilty or nolo
10    contendere, or finding as enumerated in subsection (c) of
11    Section 5-10, under the laws of any jurisdiction of the
12    United States: (i) that is a felony, misdemeanor, or
13    administrative sanction, or (ii) that is a crime that
14    subjects the licensee to compliance with the requirements
15    of the Sex Offender Registration Act.
16        (5) Committing an act or omission involving
17    dishonesty, fraud, or misrepresentation with the intent to
18    substantially benefit the licensee or another person or
19    with the intent to substantially injure another person.
20        (6) Violating a provision or standard for the
21    development or communication of home inspections as
22    provided in Section 10-5 of this Act or as defined in the
23    rules.
24        (7) Failing or refusing to exercise reasonable
25    diligence in the development, reporting, or communication
26    of a home inspection report, as defined by this Act or the

 

 

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1    rules.
2        (8) Violating a provision of this Act or the rules.
3        (9) Having been disciplined by another state, the
4    District of Columbia, a territory, a foreign nation, a
5    governmental agency, or any other entity authorized to
6    impose discipline if at least one of the grounds for that
7    discipline is the same as or substantially equivalent to
8    one of the grounds for which a licensee may be disciplined
9    under this Act.
10        (10) Engaging in dishonorable, unethical, or
11    unprofessional conduct of a character likely to deceive,
12    defraud, or harm the public.
13        (11) Accepting an inspection assignment when the
14    employment itself is contingent upon the home inspector
15    reporting a predetermined analysis or opinion, or when the
16    fee to be paid is contingent upon the analysis, opinion,
17    or conclusion reached or upon the consequences resulting
18    from the home inspection assignment.
19        (12) Developing home inspection opinions or
20    conclusions based on the race, color, religion, sex,
21    national origin, ancestry, age, marital status, family
22    status, physical or mental disability, military status,
23    unfavorable discharge from military status, sexual
24    orientation, order of protection status, or pregnancy, or
25    any other protected class as defined under the Illinois
26    Human Rights Act, of the prospective or present owners or

 

 

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1    occupants of the area or property under home inspection.
2        (13) Being adjudicated liable in a civil proceeding on
3    grounds of fraud, misrepresentation, or deceit. In a
4    disciplinary proceeding based upon a finding of civil
5    liability, the home inspector shall be afforded an
6    opportunity to present mitigating and extenuating
7    circumstances, but may not collaterally attack the civil
8    adjudication.
9        (14) Being adjudicated liable in a civil proceeding
10    for violation of a State or federal fair housing law.
11        (15) Engaging in misleading or untruthful advertising
12    or using a trade name or insignia of membership in a home
13    inspection organization of which the licensee is not a
14    member.
15        (16) Failing, within 30 days, to provide information
16    in response to a written request made by the Department.
17        (17) Failing to include within the home inspection
18    report the home inspector's license number and the date of
19    expiration of the license. The names of (i) all persons
20    who conducted the home inspection; and (ii) all persons
21    who prepared the subsequent written evaluation or any part
22    thereof must be disclosed in the report. It is a violation
23    of this Act for a home inspector to sign a home inspection
24    report knowing that the names of all such persons have not
25    been disclosed in the home inspection report.
26        (18) Advising a client as to whether the client should

 

 

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1    or should not engage in a transaction regarding the
2    residential real property that is the subject of the home
3    inspection.
4        (19) Performing a home inspection in a manner that
5    damages or alters the residential real property that is
6    the subject of the home inspection without the consent of
7    the owner.
8        (20) Performing a home inspection when the home
9    inspector is providing or may also provide other services
10    in connection with the residential real property or
11    transaction, or has an interest in the residential real
12    property, without providing prior written notice of the
13    potential or actual conflict and obtaining the prior
14    consent of the client as provided by rule.
15        (21) Aiding or assisting another person in violating
16    any provision of this Act or rules adopted under this Act.
17        (22) Inability to practice with reasonable judgment,
18    skill, or safety as a result of habitual or excessive use
19    or addiction to alcohol, narcotics, stimulants, or any
20    other chemical agent or drug.
21        (23) A finding by the Department that the licensee,
22    after having the license placed on probationary status,
23    has violated the terms of probation.
24        (24) Willfully making or filing false records or
25    reports related to the practice of home inspection,
26    including, but not limited to, false records filed with

 

 

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1    State agencies or departments.
2        (25) Charging for professional services not rendered,
3    including filing false statements for the collection of
4    fees for which services are not rendered.
5        (26) Practicing under a false or, except as provided
6    by law, an assumed name.
7        (27) Cheating on or attempting to subvert the
8    licensing examination administered under this Act.
9        (28) Engaging in any of the following prohibited
10    fraudulent, false, deceptive, or misleading advertising
11    practices:
12            (i) advertising as a home inspector or operating a
13        home inspection business entity unless there is a duly
14        licensed home inspector responsible for all inspection
15        activities and all inspections;
16            (ii) advertising that contains a misrepresentation
17        of facts or false statements regarding the licensee's
18        professional achievements, degrees, training, skills,
19        or qualifications in the home inspection profession or
20        any other profession requiring licensure;
21            (iii) advertising that makes only a partial
22        disclosure of relevant facts related to pricing or
23        home inspection services; and
24            (iv) advertising that claims this State or any of
25        its political subdivisions endorse the home inspection
26        report or its contents.

 

 

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1        (29) Disclosing, except as otherwise required by law,
2    inspection results or client information obtained without
3    the client's written consent. A home inspector shall not
4    deliver a home inspection report to any person other than
5    the client of the home inspector without the client's
6    written consent.
7        (30) Providing fees, gifts, waivers of liability, or
8    other forms of compensation or gratuities to persons
9    licensed under any real estate professional licensing act
10    in this State as consideration or inducement for the
11    referral of business.
12        (31) Violating the terms of any order issued by the
13    Department.
14    (b) The Department may suspend, revoke, or refuse to issue
15or renew an education provider's license, may reprimand, place
16on probation, or otherwise discipline an education provider
17licensee, and may suspend or revoke the course approval of any
18course offered by an education provider, for any of the
19following:
20        (1) Procuring or attempting to procure licensure by
21    knowingly making a false statement, submitting false
22    information, making any form of fraud or
23    misrepresentation, or refusing to provide complete
24    information in response to a question in an application
25    for licensure.
26        (2) Failing to comply with the covenants certified to

 

 

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1    on the application for licensure as an education provider.
2        (3) Committing an act or omission involving
3    dishonesty, fraud, or misrepresentation or allowing any
4    such act or omission by any employee or contractor under
5    the control of the education provider.
6        (4) Engaging in misleading or untruthful advertising.
7        (5) Failing to retain competent instructors in
8    accordance with rules adopted under this Act.
9        (6) Failing to meet the topic or time requirements for
10    course approval as the provider of a pre-license
11    curriculum course or a continuing education course.
12        (7) Failing to administer an approved course using the
13    course materials, syllabus, and examinations submitted as
14    the basis of the course approval.
15        (8) Failing to provide an appropriate classroom
16    environment for presentation of courses, with
17    consideration for student comfort, acoustics, lighting,
18    seating, workspace, and visual aid material.
19        (9) Failing to maintain student records in compliance
20    with the rules adopted under this Act.
21        (10) Failing to provide a certificate, transcript, or
22    other student record to the Department or to a student as
23    may be required by rule.
24        (11) Failing to fully cooperate with a Department
25    investigation by knowingly making a false statement,
26    submitting false or misleading information, or refusing to

 

 

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1    provide complete information in response to written
2    interrogatories or a written request for documentation
3    within 30 days of the request.
4    (c) (Blank).
5    (d) The Department may refuse to issue or may suspend
6without hearing, as provided for in the Code of Civil
7Procedure, the license of any person who fails to file a tax
8return, to pay the tax, penalty, or interest shown in a filed
9tax return, or to pay any final assessment of tax, penalty, or
10interest, as required by any tax Act administered by the
11Illinois Department of Revenue, until such time as the
12requirements of the tax Act are satisfied in accordance with
13subsection (g) of Section 2105-15 of the Civil Administrative
14Code of Illinois.
15    (e) (Blank).
16    (f) In cases where the Department of Healthcare and Family
17Services has previously determined that a licensee or a
18potential licensee is more than 30 days delinquent in the
19payment of child support and has subsequently certified the
20delinquency to the Department, the Department may refuse to
21issue or renew or may revoke or suspend that person's license
22or may take other disciplinary action against that person
23based solely upon the certification of delinquency made by the
24Department of Healthcare and Family Services in accordance
25with item (5) of subsection (a) of Section 2105-15 of the Civil
26Administrative Code of Illinois.

 

 

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1    (g) The determination by a circuit court that a licensee
2is subject to involuntary admission or judicial admission, as
3provided in the Mental Health and Developmental Disabilities
4Code, operates as an automatic suspension. The suspension will
5end only upon a finding by a court that the patient is no
6longer subject to involuntary admission or judicial admission
7and the issuance of a court order so finding and discharging
8the patient.
9    (h) (Blank).
10(Source: P.A. 102-20, eff. 1-1-22.)
 
11    (225 ILCS 441/15-11)
12    (Section scheduled to be repealed on January 1, 2027)
13    Sec. 15-11. Illegal discrimination. When there has been an
14adjudication in a civil or criminal proceeding that a licensee
15has illegally discriminated while engaged in any activity for
16which a license is required under this Act, the Department,
17upon the determination by recommendation of the Secretary
18Board as to the extent of the suspension or revocation, shall
19suspend or revoke the license of that licensee in a timely
20manner, unless the adjudication is in the appeal process. When
21there has been an order in an administrative proceeding
22finding that a licensee has illegally discriminated while
23engaged in any activity for which a license is required under
24this Act, the Department, upon the determination by
25recommendation of the Secretary Board as to the nature and

 

 

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1extent of the discipline, shall take one or more of the
2disciplinary actions provided for in Section 15-10 of this Act
3in a timely manner, unless the administrative order is in the
4appeal process.
5(Source: P.A. 102-970, eff. 5-27-22.)
 
6    (225 ILCS 441/15-15)
7    (Section scheduled to be repealed on January 1, 2027)
8    Sec. 15-15. Investigation; notice; hearing. The Department
9may investigate the actions of any person who is an applicant,
10or licensee, or of any person or persons rendering or offering
11to render home inspection services, or any person holding or
12claiming to hold a license as a home inspector. The Department
13shall, before refusing to issue or renew a license or to
14discipline a person licensee pursuant to Section 15-10, at
15least 30 days prior to the date set for the hearing, (i) notify
16the person charged accused in writing and the person's
17managing licensed home inspector, if any, of the charges made
18and the time and place for the hearing on the charges, (ii)
19direct the person licensee or applicant to file a written
20answer with the Department under oath within 20 days after the
21service of the notice, and (iii) inform the person applicant
22or licensee that failure to file an answer will result in a
23default judgment being entered against the person applicant or
24licensee. At the time and place fixed in the notice, the
25Department shall proceed to hear the charges and the parties

 

 

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1of their counsel shall be accorded ample opportunity to
2present any pertinent statements, testimony, evidence, and
3arguments. The Department may continue the hearing from time
4to time. In case the person, after receiving the notice, fails
5to file an answer, the license, may, in the discretion of the
6Department, be revoked, suspended, placed on probationary
7status, or the Department may take whatever disciplinary
8actions considered proper, including limiting the scope,
9nature, or extent of the person's practice or the imposition
10of a fine, without a hearing, if the act or acts charged
11constitute sufficient grounds for that action under the Act.
12The notice may be served by personal delivery, by mail, or, at
13the discretion of the Department, by electronic means to the
14address of record or email address of record specified by the
15person accused as last updated with the Department.
16    A copy of the hearing officer's report or any Order of
17Default, along with a copy of the original complaint giving
18rise to the action, shall be served upon the applicant,
19licensee, or unlicensed person by the Department to the
20applicant, licensee, or unlicensed individual in the manner
21provided in this Act for the service of a notice of hearing.
22Within 20 days after service, the person applicant or licensee
23may present to the Department a motion in writing for a
24rehearing, which shall specify the particular grounds for
25rehearing. If the person orders from the reporting service and
26pays for a transcript of the record within the time for filing

 

 

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1a motion for rehearing, then the 20-day period during which a
2motion may be filed shall commence upon the delivery of the
3transcript to the applicant or licensee. The Department may
4respond to the motion, or if a motion for rehearing is denied,
5then upon denial, the Secretary may enter an order in
6accordance with the recommendations of the hearing officer. A
7copy of the Department's final disciplinary order shall be
8delivered to the person and the person's managing home
9inspector, if any. If the applicant or licensee orders from
10the reporting service and pays for a transcript of the record
11within the time for filing a motion for rehearing, then the
1220-day period during which a motion may be filed shall
13commence upon the delivery of the transcript to the applicant
14or licensee.
15(Source: P.A. 102-20, eff. 1-1-22.)
 
16    (225 ILCS 441/25-27)
17    (Section scheduled to be repealed on January 1, 2027)
18    Sec. 25-27. Subpoenas; depositions; oaths.
19    (a) The Department may subpoena and bring before it any
20person to take oral or written testimony or compel the
21production of any books, papers, records, or any other
22documents the Secretary or the Secretary's designee deems
23relevant or material to any investigation or hearing conducted
24by the Department with the same fees and in the same manner as
25prescribed in civil cases in the courts of this State.

 

 

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1    (b) Any circuit court, upon the application of the
2licensee or the Department, may order the attendance and
3testimony of witnesses and the production of relevant
4documents, files, records, books, and papers in connection
5with any hearing or investigation. The circuit court may
6compel obedience to its order by proceedings for contempt.
7    (c) The Secretary or the Secretary's designee, the hearing
8officer, any member of the Board, or a certified shorthand
9court reporter may administer oaths at any hearing the
10Department conducts. Notwithstanding any other statute or
11Department rule to the contrary, all requests for testimony,
12production of documents, or records shall be in accordance
13with this Act.
14(Source: P.A. 102-20, eff. 1-1-22.)
 
15    Section 20. The Real Estate License Act of 2000 is amended
16by changing Sections 1-10, 5-6, 5-10, 5-20, 5-29, 5-50, 5-60,
175-75, 10-25, 10-30, 20-20, 20-20.1, 20-22, 20-23, 20-25,
1820-60, 20-69, 20-72, 25-10, and 25-25 and by adding Section
1920-21.1 as follows:
 
20    (225 ILCS 454/1-10)
21    (Section scheduled to be repealed on January 1, 2030)
22    Sec. 1-10. Definitions. In this Act, unless the context
23otherwise requires:
24    "Act" means the Real Estate License Act of 2000.

 

 

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1    "Address of record" means the designated address recorded
2by the Department in the applicant's or licensee's application
3file or license file as maintained by the Department.
4    "Agency" means a relationship in which a broker or
5licensee, whether directly or through an affiliated licensee,
6represents a consumer by the consumer's consent, whether
7express or implied, in a real property transaction.
8    "Applicant" means any person, as defined in this Section,
9who applies to the Department for a valid license as a managing
10broker, broker, or residential leasing agent.
11    "Blind advertisement" means any real estate advertisement
12that is used by a licensee regarding the sale or lease of real
13estate, licensed activities, or the hiring of any licensee
14under this Act that does not include the sponsoring broker's
15complete business name or, in the case of electronic
16advertisements, does not provide a direct link to a display
17with all the required disclosures. The broker's business name
18in the case of a franchise shall include the franchise
19affiliation as well as the name of the individual firm.
20    "Board" means the Real Estate Administration and
21Disciplinary Board of the Department as created by Section
2225-10 of this Act.
23    "Broker" means an individual, entity, corporation, foreign
24or domestic partnership, limited liability company, registered
25limited liability partnership, or other business entity other
26than a residential leasing agent who, whether in person or

 

 

SB1866 Enrolled- 55 -LRB103 26535 AMQ 52898 b

1through any media or technology, for another and for
2compensation, or with the intention or expectation of
3receiving compensation, either directly or indirectly:
4        (1) Sells, exchanges, purchases, rents, or leases real
5    estate.
6        (2) Offers to sell, exchange, purchase, rent, or lease
7    real estate.
8        (3) Negotiates, offers, attempts, or agrees to
9    negotiate the sale, exchange, purchase, rental, or leasing
10    of real estate.
11        (4) Lists, offers, attempts, or agrees to list real
12    estate for sale, rent, lease, or exchange.
13        (5) Whether for another or themselves, engages in a
14    pattern of business of buying, selling, offering to buy or
15    sell, marketing for sale, exchanging, or otherwise dealing
16    in contracts, including assignable contracts for the
17    purchase or sale of, or options on real estate or
18    improvements thereon. For purposes of this definition, an
19    individual or entity will be found to have engaged in a
20    pattern of business if the individual or entity by itself
21    or with any combination of other individuals or entities,
22    whether as partners or common owners in another entity,
23    has engaged in one or more of these practices on 2 or more
24    occasions in any 12-month period.
25        (6) Supervises the collection, offer, attempt, or
26    agreement to collect rent for the use of real estate.

 

 

SB1866 Enrolled- 56 -LRB103 26535 AMQ 52898 b

1        (7) Advertises or represents oneself as being engaged
2    in the business of buying, selling, exchanging, renting,
3    or leasing real estate.
4        (8) Assists or directs in procuring or referring of
5    leads or prospects, intended to result in the sale,
6    exchange, lease, or rental of real estate.
7        (9) Assists or directs in the negotiation of any
8    transaction intended to result in the sale, exchange,
9    lease, or rental of real estate.
10        (10) Opens real estate to the public for marketing
11    purposes.
12        (11) Sells, rents, leases, or offers for sale or lease
13    real estate at auction.
14        (12) Prepares or provides a broker price opinion or
15    comparative market analysis as those terms are defined in
16    this Act, pursuant to the provisions of Section 10-45 of
17    this Act.
18    "Brokerage agreement" means a written or oral agreement
19between a sponsoring broker and a consumer for licensed
20activities, or the performance of future licensed activities,
21to be provided to a consumer in return for compensation or the
22right to receive compensation from another. Brokerage
23agreements may constitute either a bilateral or a unilateral
24agreement between the broker and the broker's client depending
25upon the content of the brokerage agreement. All exclusive
26brokerage agreements shall be in writing.

 

 

SB1866 Enrolled- 57 -LRB103 26535 AMQ 52898 b

1    "Broker price opinion" means an estimate or analysis of
2the probable selling price of a particular interest in real
3estate, which may provide a varying level of detail about the
4property's condition, market, and neighborhood and information
5on comparable sales. The activities of a real estate broker or
6managing broker engaging in the ordinary course of business as
7a broker, as defined in this Section, shall not be considered a
8broker price opinion if no compensation is paid to the broker
9or managing broker, other than compensation based upon the
10sale or rental of real estate. A broker price opinion shall not
11be considered an appraisal within the meaning of the Real
12Estate Appraiser Licensing Act of 2002, any amendment to that
13Act, or any successor Act.
14    "Client" means a person who is being represented by a
15licensee.
16    "Comparative market analysis" means an analysis or opinion
17regarding pricing, marketing, or financial aspects relating to
18a specified interest or interests in real estate that may be
19based upon an analysis of comparative market data, the
20expertise of the real estate broker or managing broker, and
21such other factors as the broker or managing broker may deem
22appropriate in developing or preparing such analysis or
23opinion. The activities of a real estate broker or managing
24broker engaging in the ordinary course of business as a
25broker, as defined in this Section, shall not be considered a
26comparative market analysis if no compensation is paid to the

 

 

SB1866 Enrolled- 58 -LRB103 26535 AMQ 52898 b

1broker or managing broker, other than compensation based upon
2the sale or rental of real estate. A comparative market
3analysis shall not be considered an appraisal within the
4meaning of the Real Estate Appraiser Licensing Act of 2002,
5any amendment to that Act, or any successor Act.
6    "Compensation" means the valuable consideration given by
7one person or entity to another person or entity in exchange
8for the performance of some activity or service. Compensation
9shall include the transfer of valuable consideration,
10including without limitation the following:
11        (1) commissions;
12        (2) referral fees;
13        (3) bonuses;
14        (4) prizes;
15        (5) merchandise;
16        (6) finder fees;
17        (7) performance of services;
18        (8) coupons or gift certificates;
19        (9) discounts;
20        (10) rebates;
21        (11) a chance to win a raffle, drawing, lottery, or
22    similar game of chance not prohibited by any other law or
23    statute;
24        (12) retainer fee; or
25        (13) salary.
26    "Confidential information" means information obtained by a

 

 

SB1866 Enrolled- 59 -LRB103 26535 AMQ 52898 b

1licensee from a client during the term of a brokerage
2agreement that (i) was made confidential by the written
3request or written instruction of the client, (ii) deals with
4the negotiating position of the client, or (iii) is
5information the disclosure of which could materially harm the
6negotiating position of the client, unless at any time:
7        (1) the client permits the disclosure of information
8    given by that client by word or conduct;
9        (2) the disclosure is required by law; or
10        (3) the information becomes public from a source other
11    than the licensee.
12    "Confidential information" shall not be considered to
13include material information about the physical condition of
14the property.
15    "Consumer" means a person or entity seeking or receiving
16licensed activities.
17    "Coordinator" means the Coordinator of Real Estate created
18in Section 25-15 of this Act.
19    "Credit hour" means 50 minutes of instruction in course
20work that meets the requirements set forth in rules adopted by
21the Department.
22    "Customer" means a consumer who is not being represented
23by the licensee.
24    "Department" means the Department of Financial and
25Professional Regulation.
26    "Designated agency" means a contractual relationship

 

 

SB1866 Enrolled- 60 -LRB103 26535 AMQ 52898 b

1between a sponsoring broker and a client under Section 15-50
2of this Act in which one or more licensees associated with or
3employed by the broker are designated as agent of the client.
4    "Designated agent" means a sponsored licensee named by a
5sponsoring broker as the legal agent of a client, as provided
6for in Section 15-50 of this Act.
7    "Designated managing broker" means a managing broker who
8has supervisory responsibilities for licensees in one or, in
9the case of a multi-office company, more than one office and
10who has been appointed as such by the sponsoring broker
11registered with the Department.
12    "Director" means the Director of Real Estate within the
13Department of Financial and Professional Regulation.
14    "Dual agency" means an agency relationship in which a
15licensee is representing both buyer and seller or both
16landlord and tenant in the same transaction. When the agency
17relationship is a designated agency, the question of whether
18there is a dual agency shall be determined by the agency
19relationships of the designated agent of the parties and not
20of the sponsoring broker.
21    "Education provider" means a school licensed by the
22Department offering courses in pre-license, post-license, or
23continuing education required by this Act.
24    "Employee" or other derivative of the word "employee",
25when used to refer to, describe, or delineate the relationship
26between a sponsoring broker and a managing broker, broker, or

 

 

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1a residential leasing agent, shall be construed to include an
2independent contractor relationship, provided that a written
3agreement exists that clearly establishes and states the
4relationship.
5    "Escrow moneys" means all moneys, promissory notes, or any
6other type or manner of legal tender or financial
7consideration deposited with any person for the benefit of the
8parties to the transaction. A transaction exists once an
9agreement has been reached and an accepted real estate
10contract signed or lease agreed to by the parties. "Escrow
11moneys" includes, without limitation, earnest moneys and
12security deposits, except those security deposits in which the
13person holding the security deposit is also the sole owner of
14the property being leased and for which the security deposit
15is being held.
16    "Electronic means of proctoring" means a methodology
17providing assurance that the person taking a test and
18completing the answers to questions is the person seeking
19licensure or credit for continuing education and is doing so
20without the aid of a third party or other device.
21    "Exclusive brokerage agreement" means a written brokerage
22agreement that provides that the sponsoring broker has the
23sole right, through one or more sponsored licensees, to act as
24the exclusive agent or representative of the client and that
25meets the requirements of Section 15-75 of this Act.
26    "Inactive" means a status of licensure where the licensee

 

 

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1holds a current license under this Act, but the licensee is
2prohibited from engaging in licensed activities because the
3licensee is unsponsored or the license of the sponsoring
4broker with whom the licensee is associated or by whom the
5licensee is employed is currently expired, revoked, suspended,
6or otherwise rendered invalid under this Act. The license of
7any business entity that is not in good standing with the
8Illinois Secretary of State, or is not authorized to conduct
9business in Illinois, shall immediately become inactive and
10that entity shall be prohibited from engaging in any licensed
11activities.
12    "Leads" means the name or names of a potential buyer,
13seller, lessor, lessee, or client of a licensee.
14    "License" means the privilege conferred by the Department
15to a person that has fulfilled all requirements prerequisite
16to any type of licensure under this Act.
17    "Licensed activities" means those activities listed in the
18definition of "broker" under this Section.
19    "Licensee" means any person licensed under this Act.
20    "Listing presentation" means any communication, written or
21oral and by any means or media, between a managing broker or
22broker and a consumer in which the licensee is attempting to
23secure a brokerage agreement with the consumer to market the
24consumer's real estate for sale or lease.
25    "Managing broker" means a licensee who may be authorized
26to assume responsibilities as a designated managing broker for

 

 

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1licensees in one or, in the case of a multi-office company,
2more than one office, upon appointment by the sponsoring
3broker and registration with the Department. A managing broker
4may act as one's own sponsor.
5    "Medium of advertising" means any method of communication
6intended to influence the general public to use or purchase a
7particular good or service or real estate, including, but not
8limited to, print, electronic, social media, and digital
9forums.
10    "Office" means a broker's place of business where the
11general public is invited to transact business and where
12records may be maintained and licenses readily available,
13whether or not it is the broker's principal place of business.
14    "Person" means and includes individuals, entities,
15corporations, limited liability companies, registered limited
16liability partnerships, foreign and domestic partnerships, and
17other business entities, except that when the context
18otherwise requires, the term may refer to a single individual
19or other described entity.
20    "Proctor" means any person, including, but not limited to,
21an instructor, who has a written agreement to administer
22examinations fairly and impartially with a licensed education
23provider.
24    "Real estate" means and includes leaseholds as well as any
25other interest or estate in land, whether corporeal,
26incorporeal, freehold, or non-freehold and whether the real

 

 

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1estate is situated in this State or elsewhere. "Real estate"
2does not include property sold, exchanged, or leased as a
3timeshare or similar vacation item or interest, vacation club
4membership, or other activity formerly regulated under the
5Real Estate Timeshare Act of 1999 (repealed).
6    "Regular employee" means a person working an average of 20
7hours per week for a person or entity who would be considered
8as an employee under the Internal Revenue Service rules for
9classifying workers.
10    "Renewal period" means the period beginning 90 days prior
11to the expiration date of a license.
12    "Residential leasing agent" means a person who is employed
13by a broker to engage in licensed activities limited to
14leasing residential real estate who has obtained a license as
15provided for in Section 5-5 of this Act.
16    "Secretary" means the Secretary of the Department of
17Financial and Professional Regulation, or a person authorized
18by the Secretary to act in the Secretary's stead.
19    "Sponsoring broker" means the broker who certifies to the
20Department the broker's his, her, or its sponsorship of a
21licensed managing broker, broker, or a residential leasing
22agent.
23    "Sponsorship" means that a sponsoring broker has certified
24to the Department that a managing broker, broker, or
25residential leasing agent is employed by or associated by
26written agreement with the sponsoring broker and the

 

 

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1Department has registered the sponsorship, as provided for in
2Section 5-40 of this Act.
3    "Team" means any 2 or more licensees who work together to
4provide real estate brokerage services, represent themselves
5to the public as being part of a team or group, are identified
6by a team name that is different than their sponsoring
7broker's name, and together are supervised by the same
8managing broker and sponsored by the same sponsoring broker.
9"Team" does not mean a separately organized, incorporated, or
10legal entity.
11(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
12    (225 ILCS 454/5-6)
13    (Section scheduled to be repealed on January 1, 2030)
14    Sec. 5-6. Social Security Number or Individual Taxpayer
15Tax Identification Number on license application. In addition
16to any other information required to be contained in the
17application, every application for an original license under
18this Act shall include the applicant's Social Security Number
19or Tax Identification Number, which shall be retained in the
20agency's records pertaining to the license. An applicant may
21provide an Individual Taxpayer Identification Number as an
22alternative to providing a Social Security Number when
23applying for a license. As soon as practical, the Department
24shall assign a separate and distinct identification number to
25each applicant for a license.

 

 

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1    Every application for a renewal or restored license shall
2require the applicant's identification number.
3(Source: P.A. 101-357, eff. 8-9-19.)
 
4    (225 ILCS 454/5-10)
5    (Section scheduled to be repealed on January 1, 2030)
6    Sec. 5-10. Requirements for license as a residential
7leasing agent; continuing education.
8    (a) Every applicant for licensure as a residential leasing
9agent must meet the following qualifications:
10        (1) be at least 18 years of age;
11        (2) be of good moral character;
12        (3) successfully complete a 4-year course of study in
13    a high school or secondary school or an equivalent course
14    of study approved by the state in which the school is
15    located, or possess a State of Illinois High School
16    Diploma, which shall be verified under oath by the
17    applicant;
18        (4) personally take and pass a written examination
19    authorized by the Department sufficient to demonstrate the
20    applicant's knowledge of the provisions of this Act
21    relating to residential leasing agents and the applicant's
22    competence to engage in the activities of a licensed
23    residential leasing agent;
24        (5) provide satisfactory evidence of having completed
25    15 hours of instruction in an approved course of study

 

 

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1    relating to the leasing of residential real property. The
2    Board may recommend to the Department the number of hours
3    each topic of study shall require. The course of study
4    shall, among other topics, cover the provisions of this
5    Act applicable to residential leasing agents; fair housing
6    and human rights issues relating to residential leasing;
7    advertising and marketing issues; leases, applications,
8    and credit and criminal background reports; owner-tenant
9    relationships and owner-tenant laws; the handling of
10    funds; and environmental issues relating to residential
11    real property;
12        (6) complete any other requirements as set forth by
13    rule; and
14        (7) present a valid application for issuance of an
15    initial license accompanied by fees specified by rule.
16    (b) No applicant shall engage in any of the activities
17covered by this Act without a valid license and until a valid
18sponsorship has been registered with the Department.
19    (c) Successfully completed course work, completed pursuant
20to the requirements of this Section, may be applied to the
21course work requirements to obtain a managing broker's or
22broker's license as provided by rule. The Board may recommend
23to the Department and the Department may adopt requirements
24for approved courses, course content, and the approval of
25courses, instructors, and education providers, as well as
26education provider and instructor fees. The Department may

 

 

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1establish continuing education requirements for residential
2licensed leasing agents, by rule, consistent with the language
3and intent of this Act, with the advice of the Board.
4    (d) The continuing education requirement for residential
5leasing agents shall consist of a single core curriculum to be
6prescribed by the Department as recommended by the Board.
7Leasing agents shall be required to complete no less than 8
8hours of continuing education in the core curriculum during
9the current term of the license. The curriculum shall, at a
10minimum, consist of a single course or courses on the subjects
11of fair housing and human rights issues related to residential
12leasing, advertising and marketing issues, leases,
13applications, credit reports, and criminal history, the
14handling of funds, owner-tenant relationships and owner-tenant
15laws, and environmental issues relating to residential real
16estate.
17(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22;
18102-1100, eff. 1-1-23; revised 12-14-22.)
 
19    (225 ILCS 454/5-20)
20    (Section scheduled to be repealed on January 1, 2030)
21    Sec. 5-20. Exemptions from managing broker, broker, or
22residential leasing agent license requirement; Department
23exemption from education provider and related licenses. The
24requirement for holding a license under this Article 5 shall
25not apply to:

 

 

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1        (1) Any person, as defined in Section 1-10, that as
2    owner or lessor performs any of the acts described in the
3    definition of "broker" under Section 1-10 of this Act with
4    reference to property owned or leased by it, or to the
5    regular employees thereof with respect to the property so
6    owned or leased, where such acts are performed in the
7    regular course of or as an incident to the management,
8    sale, or other disposition of such property and the
9    investment therein, if such regular employees do not
10    perform any of the acts described in the definition of
11    "broker" under Section 1-10 of this Act in connection with
12    a vocation of selling or leasing any real estate or the
13    improvements thereon not so owned or leased.
14        (2) An attorney in fact acting under a duly executed
15    and recorded power of attorney to convey real estate from
16    the owner or lessor or the services rendered by an
17    attorney at law in the performance of the attorney's duty
18    as an attorney at law.
19        (3) Any person acting as receiver, trustee in
20    bankruptcy, administrator, executor, or guardian or while
21    acting under a court order or under the authority of a will
22    or testamentary trust.
23        (4) Any person acting as a resident manager for the
24    owner or any employee acting as the resident manager for a
25    broker managing an apartment building, duplex, or
26    apartment complex, when the resident manager resides on

 

 

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1    the premises, the premises is the his or her primary
2    residence of the resident manager, and the resident
3    manager is engaged in the leasing of that the property of
4    which he or she is the resident manager.
5        (5) Any officer or employee of a federal agency in the
6    conduct of official duties.
7        (6) Any officer or employee of the State government or
8    any political subdivision thereof performing official
9    duties.
10        (7) Any multiple listing service or other similar
11    information exchange that is engaged in the collection and
12    dissemination of information concerning real estate
13    available for sale, purchase, lease, or exchange for the
14    purpose of providing licensees with a system by which
15    licensees may cooperatively share information along with
16    which no other licensed activities, as defined in Section
17    1-10 of this Act, are provided.
18        (8) Railroads and other public utilities regulated by
19    the State of Illinois, or the officers or full-time
20    employees thereof, unless the performance of any licensed
21    activities is in connection with the sale, purchase,
22    lease, or other disposition of real estate or investment
23    therein that does not require the approval of the
24    appropriate State regulatory authority.
25        (9) Any medium of advertising in the routine course of
26    selling or publishing advertising along with which no

 

 

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1    other licensed activities, as defined in Section 1-10 of
2    this Act, are provided.
3        (10) Any resident lessee of a residential dwelling
4    unit who refers for compensation to the owner of the
5    dwelling unit, or to the owner's agent, prospective
6    lessees of dwelling units in the same building or complex
7    as the resident lessee's unit, but only if the resident
8    lessee (i) refers no more than 3 prospective lessees in
9    any 12-month period, (ii) receives compensation of no more
10    than $5,000 or the equivalent of 2 months' rent, whichever
11    is less, in any 12-month period, and (iii) limits his or
12    her activities to referring prospective lessees to the
13    owner, or the owner's agent, and does not show a
14    residential dwelling unit to a prospective lessee, discuss
15    terms or conditions of leasing a dwelling unit with a
16    prospective lessee, or otherwise participate in the
17    negotiation of the leasing of a dwelling unit.
18        (11) The purchase, sale, or transfer of a timeshare or
19    similar vacation item or interest, vacation club
20    membership, or other activity formerly regulated under the
21    Real Estate Timeshare Act of 1999 (repealed).
22        (12) (Blank).
23        (13) Any person who is licensed without examination
24    under Section 10-25 (now repealed) of the Auction License
25    Act is exempt from holding a managing broker's or broker's
26    license under this Act for the limited purpose of selling

 

 

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1    or leasing real estate at auction, so long as:
2            (A) that person has made application for said
3        exemption by July 1, 2000;
4            (B) that person verifies to the Department that
5        the person he or she has sold real estate at auction
6        for a period of 5 years prior to licensure as an
7        auctioneer;
8            (C) the person has had no lapse in the licensure
9        his or her license as an auctioneer; and
10            (D) the license issued under the Auction License
11        Act has not been disciplined for violation of those
12        provisions of Article 20 of the Auction License Act
13        dealing with or related to the sale or lease of real
14        estate at auction.
15        (14) A person who holds a valid license under the
16    Auction License Act and a valid real estate auction
17    certification and conducts auctions for the sale of real
18    estate under Section 5-32 of this Act.
19        (15) A hotel operator who is registered with the
20    Illinois Department of Revenue and pays taxes under the
21    Hotel Operators' Occupation Tax Act and rents a room or
22    rooms in a hotel as defined in the Hotel Operators'
23    Occupation Tax Act for a period of not more than 30
24    consecutive days and not more than 60 days in a calendar
25    year or a person who participates in an online marketplace
26    enabling persons to rent out all or part of the person's

 

 

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1    owned residence.
2        (16) Notwithstanding any provisions to the contrary,
3    the Department and its employees shall be exempt from
4    education, course provider, instructor, and course license
5    requirements and fees while acting in an official capacity
6    on behalf of the Department. Courses offered by the
7    Department shall be eligible for continuing education
8    credit.
9(Source: P.A. 100-534, eff. 9-22-17; 100-831, eff. 1-1-19;
10101-357, eff. 8-9-19.)
 
11    (225 ILCS 454/5-29)
12    (Section scheduled to be repealed on January 1, 2030)
13    Sec. 5-29. Temporary practice as a designated managing
14broker. Upon the loss of a designated managing broker who is
15not replaced by the sponsoring broker or in the event of the
16death or adjudicated disability of a self-sponsored managing
17broker the sole proprietor of an office, a written request for
18authorization allowing the continued operation of the office
19may be submitted to the Department within 15 days of the loss.
20The Department may issue a written authorization allowing the
21continued operation, provided that a licensed managing broker
22or, in the case of the death or adjudicated disability of a
23self-sponsored managing broker sole proprietor, the
24representative of the estate, assumes responsibility, in
25writing, for the operation of the office and agrees to

 

 

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1personally supervise the operation of the office. No such
2written authorization shall be valid for more than 60 days
3unless extended by the Department for good cause shown and
4upon written request by the broker or representative.
5(Source: P.A. 101-357, eff. 8-9-19.)
 
6    (225 ILCS 454/5-50)
7    (Section scheduled to be repealed on January 1, 2030)
8    Sec. 5-50. Expiration and renewal of managing broker,
9broker, or residential leasing agent license; sponsoring
10broker; register of licensees.
11    (a) The expiration date and renewal period for each
12license issued under this Act shall be set by rule. Except as
13otherwise provided in this Section, the holder of a license
14may renew the license within 90 days preceding the expiration
15date thereof by completing the continuing education required
16by this Act and paying the fees specified by rule.
17    (b) An individual whose first license is that of a broker
18received on or after the effective date of this amendatory Act
19of the 101st General Assembly, must provide evidence of having
20completed 45 hours of post-license education presented in a
21classroom or a live, interactive webinar, or online distance
22education course, and which shall require passage of a final
23examination.
24    The Board may recommend, and the Department shall approve,
2545 hours of post-license education, consisting of three

 

 

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115-hour post-license courses, one each that covers applied
2brokerage principles, risk management/discipline, and
3transactional issues. Each of the courses shall require its
4own 50-question final examination, which shall be administered
5by the education provider that delivers the course.
6    Individuals whose first license is that of a broker
7received on or after the effective date of this amendatory Act
8of the 101st General Assembly, must complete all three 15-hour
9courses and successfully pass a course final examination for
10each course prior to the date of the next broker renewal
11deadline, except for those individuals who receive their first
12license within the 180 days preceding the next broker renewal
13deadline, who must complete all three 15-hour courses and
14successfully pass a course final examination for each course
15prior to the second broker renewal deadline that follows the
16receipt of their license.
17    (c) Any managing broker, broker, or residential leasing
18agent whose license under this Act has expired shall be
19eligible to renew the license during the 2-year period
20following the expiration date, provided the managing broker,
21broker, or residential leasing agent pays the fees as
22prescribed by rule and completes continuing education and
23other requirements provided for by the Act or by rule. A
24managing broker, broker, or residential leasing agent whose
25license has been expired for more than 2 years but less than 5
26years may have it restored by (i) applying to the Department,

 

 

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1(ii) paying the required fee, (iii) completing the continuing
2education requirements for the most recent term of licensure
3that ended prior to the date of the application for
4reinstatement, and (iv) filing acceptable proof of fitness to
5have the license restored, as set by rule. A managing broker,
6broker, or residential leasing agent whose license has been
7expired for more than 5 years shall be required to meet the
8requirements for a new license.
9    (d) Notwithstanding any other provisions of this Act to
10the contrary, any managing broker, broker, or residential
11leasing agent whose license expired while the licensee was (i)
12on active duty with the Armed Forces of the United States or
13called into service or training by the state militia, (ii)
14engaged in training or education under the supervision of the
15United States preliminary to induction into military service,
16or (iii) serving as the Coordinator of Real Estate in the State
17of Illinois or as an employee of the Department may have the
18license renewed, reinstated or restored without paying any
19lapsed renewal fees, and without completing the continuing
20education requirements for that licensure period if within 2
21years after the termination of the service, training or
22education the licensee furnishes by furnishing the Department
23with satisfactory evidence of service, training, or education
24and termination it has been terminated under honorable
25conditions.
26    (e) Each licensee shall carry on one's person the license

 

 

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1or an electronic version thereof.
2    (f) The Department shall provide to the sponsoring broker
3a notice of renewal for all sponsored licensees by mailing the
4notice to the sponsoring broker's address of record, or, at
5the Department's discretion, emailing the notice to the
6sponsoring broker's email address of record.
7    (g) Upon request from the sponsoring broker, the
8Department shall make available to the sponsoring broker, by
9electronic means at the discretion of the Department, a
10listing of licensees under this Act who, according to the
11records of the Department, are sponsored by that broker. Every
12licensee associated with or employed by a broker whose license
13is revoked, suspended, or expired shall be considered inactive
14until such time as the sponsoring broker's license is
15reinstated or renewed, or a new valid sponsorship is
16registered with the Department as set forth in subsection (b)
17of Section 5-40 of this Act.
18    (h) The Department shall not issue or renew a license if
19the applicant or licensee has an unpaid fine or fee from a
20disciplinary matter or from a non-disciplinary action imposed
21by the Department until the fine or fee is paid to the
22Department or the applicant or licensee has entered into a
23payment plan and is current on the required payments.
24    (i) The Department shall not issue or renew a license if
25the applicant or licensee has an unpaid fine or civil penalty
26imposed by the Department for unlicensed practice until the

 

 

SB1866 Enrolled- 78 -LRB103 26535 AMQ 52898 b

1fine or civil penalty is paid to the Department or the
2applicant or licensee has entered into a payment plan and is
3current on the required payments.
4(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
5    (225 ILCS 454/5-60)
6    (Section scheduled to be repealed on January 1, 2030)
7    Sec. 5-60. Managing broker licensed in another state;
8broker licensed in another state; reciprocal agreements; agent
9for service of process.
10    (a) A managing broker's license may be issued by the
11Department to a managing broker or its equivalent licensed
12under the laws of another state of the United States, under the
13following conditions:
14        (1) the managing broker holds a managing broker's
15    license in a state that has entered into a reciprocal
16    agreement with the Department;
17        (2) the standards for that state for licensing as a
18    managing broker are substantially equal to or greater than
19    the minimum standards in the State of Illinois;
20        (3) the managing broker has been actively practicing
21    as a managing broker in the managing broker's state of
22    licensure for a period of not less than 2 years,
23    immediately prior to the date of application;
24        (4) the managing broker furnishes the Department with
25    a statement under seal of the proper licensing authority

 

 

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1    of the state in which the managing broker is licensed
2    showing that the managing broker has an active managing
3    broker's license, that the managing broker is in good
4    standing, and any disciplinary action taken that no
5    complaints are pending against the managing broker in that
6    state;
7        (5) the managing broker passes a test on Illinois
8    specific real estate brokerage laws; and
9        (6) the managing broker was licensed by an examination
10    in the state that has entered into a reciprocal agreement
11    with the Department.
12    (b) A broker's license may be issued by the Department to a
13broker or its equivalent licensed under the laws of another
14state of the United States, under the following conditions:
15        (1) the broker holds a broker's license in a state
16    that has entered into a reciprocal agreement with the
17    Department;
18        (2) the standards for that state for licensing as a
19    broker are substantially equivalent to or greater than the
20    minimum standards in the State of Illinois;
21        (3) (blank);
22        (4) the broker furnishes the Department with a
23    statement under seal of the proper licensing authority of
24    the state in which the broker is licensed showing that the
25    broker has an active broker's license, that the broker is
26    in good standing, and any disciplinary action taken that

 

 

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1    no complaints are pending against the broker in that
2    state;
3        (5) the broker passes a test on Illinois specific real
4    estate brokerage laws; and
5        (6) the broker was licensed by an examination in a
6    state that has entered into a reciprocal agreement with
7    the Department.
8    (c) (Blank).
9    (d) As a condition precedent to the issuance of a license
10to a managing broker or broker pursuant to this Section, the
11managing broker or broker shall agree in writing to abide by
12all the provisions of this Act with respect to his or her real
13estate activities within the State of Illinois and submit to
14the jurisdiction of the Department as provided in this Act.
15The agreement shall be filed with the Department and shall
16remain in force for so long as the managing broker or broker is
17licensed by this State and thereafter with respect to acts or
18omissions committed while licensed as a managing broker or
19broker in this State.
20    (e) Prior to the issuance of any license to any managing
21broker or broker pursuant to this Section, verification of
22active licensure issued for the conduct of such business in
23any other state must be filed with the Department by the
24managing broker or broker, and the same fees must be paid as
25provided in this Act for the obtaining of a managing broker's
26or broker's license in this State.

 

 

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1    (f) Licenses previously granted under reciprocal
2agreements with other states shall remain in force so long as
3the Department has a reciprocal agreement with the state that
4includes the requirements of this Section, unless that license
5is suspended, revoked, or terminated by the Department for any
6reason provided for suspension, revocation, or termination of
7a resident licensee's license. Licenses granted under
8reciprocal agreements may be renewed in the same manner as a
9resident's license.
10    (g) Prior to the issuance of a license to a nonresident
11managing broker or broker, the managing broker or broker shall
12file with the Department, in a manner prescribed by the
13Department, a designation in writing that appoints the
14Secretary to act as his or her agent upon whom all judicial and
15other process or legal notices directed to the managing broker
16or broker may be served. Service upon the agent so designated
17shall be equivalent to personal service upon the licensee.
18Copies of the appointment, certified by the Secretary, shall
19be deemed sufficient evidence thereof and shall be admitted in
20evidence with the same force and effect as the original
21thereof might be admitted. In the written designation, the
22managing broker or broker shall agree that any lawful process
23against the licensee that is served upon the agent shall be of
24the same legal force and validity as if served upon the
25licensee and that the authority shall continue in force so
26long as any liability remains outstanding in this State. Upon

 

 

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1the receipt of any process or notice, the Secretary shall
2forthwith deliver a copy of the same by regular mail or email
3to the last known business address or email address of the
4licensee.
5    (h) Any person holding a valid license under this Section
6shall be eligible to obtain a managing broker's license or a
7broker's license without examination should that person change
8their state of domicile to Illinois and that person otherwise
9meets the qualifications for licensure under this Act.
10(Source: P.A. 101-357, eff. 8-9-19.)
 
11    (225 ILCS 454/5-75)
12    (Section scheduled to be repealed on January 1, 2030)
13    Sec. 5-75. Out-of-state continuing education credit. If a
14renewal applicant has earned continuing education hours in
15another state or territory for which the applicant he or she is
16claiming credit toward full compliance in Illinois, the
17Department may approve those hours based upon whether the
18course is one that would be approved under Section 5-70 of this
19Act, whether the course meets the basic requirements for
20continuing education under this Act, and any other criteria
21that are provided by statute or rule.
22(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)
 
23    (225 ILCS 454/10-25)
24    (Section scheduled to be repealed on January 1, 2030)

 

 

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1    Sec. 10-25. Expiration of brokerage agreement. No licensee
2shall obtain any written brokerage agreement that does not
3either provide for automatic expiration within a definite
4period of time, and if longer than one year, or provide the
5client with a right to terminate the agreement annually by
6giving no more than 30 days' prior written notice. Any written
7brokerage agreement not containing such a provision shall be
8void. When the license of any sponsoring broker is suspended
9or revoked, any brokerage agreement with the sponsoring broker
10shall be deemed to expire upon the effective date of the
11suspension or revocation.
12(Source: P.A. 98-531, eff. 8-23-13.)
 
13    (225 ILCS 454/10-30)
14    (Section scheduled to be repealed on January 1, 2030)
15    Sec. 10-30. Advertising.
16    (a) No advertising, whether in print, via the Internet, or
17through social media, digital forums, or any other media,
18shall be fraudulent, deceptive, inherently misleading, or
19proven to be misleading in practice. Advertising shall be
20considered misleading or untruthful if, when taken as a whole,
21there is a distinct and reasonable possibility that it will be
22misunderstood or will deceive the ordinary consumer.
23Advertising shall contain all information necessary to
24communicate the information contained therein to the public in
25an accurate, direct, and readily comprehensible manner. Team

 

 

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1names may not contain inherently misleading terms, such as
2"company", "realty", "real estate", "agency", "associates",
3"brokers", "properties", or "property".
4    (b) No blind advertisements may be used by any licensee,
5in any media, except as provided for in this Section.
6    (c) A licensee shall disclose, in writing, to all parties
7in a transaction the licensee's his or her status as a licensee
8and any and all interest the licensee has or may have in the
9real estate constituting the subject matter thereof, directly
10or indirectly, according to the following guidelines:
11        (1) On broker yard signs or in broker advertisements,
12    no disclosure of ownership is necessary. However, the
13    ownership shall be indicated on any property data form
14    accessible to the consumer and disclosed to persons
15    responding to any advertisement or any sign. The term
16    "broker owned" or "agent owned" is sufficient disclosure.
17        (2) A sponsored or inactive licensee selling or
18    leasing property, owned solely by the sponsored or
19    inactive licensee, without utilizing brokerage services of
20    their sponsoring broker or any other licensee, may
21    advertise "By Owner". For purposes of this Section,
22    property is "solely owned" by a sponsored or inactive
23    licensee if the licensee he or she (i) has a 100% ownership
24    interest alone, (ii) has ownership as a joint tenant or
25    tenant by the entirety, or (iii) holds a 100% beneficial
26    interest in a land trust. Sponsored or inactive licensees

 

 

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1    selling or leasing "By Owner" shall comply with the
2    following if advertising by owner:
3            (A) On "By Owner" yard signs, the sponsored or
4        inactive licensee shall indicate "broker owned" or
5        "agent owned." "By Owner" advertisements used in any
6        medium of advertising shall include the term "broker
7        owned" or "agent owned."
8            (B) If a sponsored or inactive licensee runs
9        advertisements, for the purpose of purchasing or
10        leasing real estate, the licensee he or she shall
11        disclose in the advertisements the licensee's his or
12        her status as a licensee.
13            (C) A sponsored or inactive licensee shall not use
14        the sponsoring broker's name or the sponsoring
15        broker's company name in connection with the sale,
16        lease, or advertisement of the property nor utilize
17        the sponsoring broker's or company's name in
18        connection with the sale, lease, or advertising of the
19        property in a manner likely to create confusion among
20        the public as to whether or not the services of a real
21        estate company are being utilized or whether or not a
22        real estate company has an ownership interest in the
23        property.
24    (d) A sponsored licensee may not advertise under the
25licensee's his or her own name. Advertising in any media shall
26be under the direct supervision of the sponsoring or

 

 

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1designated managing broker and in the sponsoring broker's
2business name, which in the case of a franchise shall include
3the franchise affiliation as well as the name of the
4individual firm. This provision does not apply under the
5following circumstances:
6        (1) When a licensee enters into a brokerage agreement
7    relating to his or her own real estate owned by the
8    licensee, or real estate in which the licensee he or she
9    has an ownership interest, with another licensed broker;
10    or
11        (2) When a licensee is selling or leasing his or her
12    own real estate owned by the licensee or buying or leasing
13    real estate for their own use himself or herself, after
14    providing the appropriate written disclosure of his or her
15    ownership interest as required in paragraph (2) of
16    subsection (c) of this Section.
17    (e) No licensee shall list the licensee's his or her name
18or otherwise advertise in the licensee's his or her own name to
19the general public through any medium of advertising as being
20in the real estate business without listing the his or her
21sponsoring broker's business name.
22    (f) The sponsoring broker's business name and the name of
23the licensee must appear in all advertisements, including
24business cards. In advertising that includes the sponsoring
25broker's name and a team name or individual broker's name, the
26sponsoring broker's business name shall be at least equal in

 

 

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1size or larger than the team name or that of the individual.
2    (g) Those individuals licensed as a managing broker and
3designated with the Department as a designated managing broker
4by their sponsoring broker shall identify themselves to the
5public in advertising, except on "For Sale" or similar signs,
6as a designated managing broker. No other individuals holding
7a managing broker's license may hold themselves out to the
8public or other licensees as a designated managing broker, but
9they may hold themselves out to be a managing broker.
10(Source: P.A. 101-357, eff. 8-9-19.)
 
11    (225 ILCS 454/20-20)
12    (Section scheduled to be repealed on January 1, 2030)
13    Sec. 20-20. Nature of and grounds for discipline.
14    (a) The Department may refuse to issue or renew a license,
15may place on probation, suspend, or revoke any license,
16reprimand, or take any other disciplinary or non-disciplinary
17action as the Department may deem proper and impose a fine not
18to exceed $25,000 for each violation upon any licensee or
19applicant under this Act or any person who holds oneself out as
20an applicant or licensee or against a licensee in handling
21one's own property, whether held by deed, option, or
22otherwise, for any one or any combination of the following
23causes:
24        (1) Fraud or misrepresentation in applying for, or
25    procuring, a license under this Act or in connection with

 

 

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1    applying for renewal of a license under this Act.
2        (2) The licensee's conviction of or plea of guilty or
3    plea of nolo contendere, as set forth in subsection (e) of
4    Section 5-25, to: (A) a felony or misdemeanor in this
5    State or any other jurisdiction; (B) the entry of an
6    administrative sanction by a government agency in this
7    State or any other jurisdiction; or (C) any crime that
8    subjects the licensee to compliance with the requirements
9    of the Sex Offender Registration Act.
10        (3) Inability to practice the profession with
11    reasonable judgment, skill, or safety as a result of a
12    physical illness, mental illness, or disability.
13        (4) Practice under this Act as a licensee in a retail
14    sales establishment from an office, desk, or space that is
15    not separated from the main retail business and located
16    within a separate and distinct area within the
17    establishment.
18        (5) Having been disciplined by another state, the
19    District of Columbia, a territory, a foreign nation, or a
20    governmental agency authorized to impose discipline if at
21    least one of the grounds for that discipline is the same as
22    or the equivalent of one of the grounds for which a
23    licensee may be disciplined under this Act. A certified
24    copy of the record of the action by the other state or
25    jurisdiction shall be prima facie evidence thereof.
26        (6) Engaging in the practice of real estate brokerage

 

 

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1    without a license or after the licensee's license or
2    temporary permit was expired or while the license was
3    inactive, revoked, or suspended.
4        (7) Cheating on or attempting to subvert the Real
5    Estate License Exam or a continuing education course or
6    examination.
7        (8) Aiding or abetting an applicant to subvert or
8    cheat on the Real Estate License Exam or continuing
9    education exam administered pursuant to this Act.
10        (9) Advertising that is inaccurate, misleading, or
11    contrary to the provisions of the Act.
12        (10) Making any substantial misrepresentation or
13    untruthful advertising.
14        (11) Making any false promises of a character likely
15    to influence, persuade, or induce.
16        (12) Pursuing a continued and flagrant course of
17    misrepresentation or the making of false promises through
18    licensees, employees, agents, advertising, or otherwise.
19        (13) Any misleading or untruthful advertising, or
20    using any trade name or insignia of membership in any real
21    estate organization of which the licensee is not a member.
22        (14) Acting for more than one party in a transaction
23    without providing written notice to all parties for whom
24    the licensee acts.
25        (15) Representing or attempting to represent, or
26    performing licensed activities for, a broker other than

 

 

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1    the sponsoring broker.
2        (16) Failure to account for or to remit any moneys or
3    documents coming into the licensee's possession that
4    belong to others.
5        (17) Failure to maintain and deposit in a special
6    account, separate and apart from personal and other
7    business accounts, all escrow moneys belonging to others
8    entrusted to a licensee while acting as a broker, escrow
9    agent, or temporary custodian of the funds of others or
10    failure to maintain all escrow moneys on deposit in the
11    account until the transactions are consummated or
12    terminated, except to the extent that the moneys, or any
13    part thereof, shall be:
14            (A) disbursed prior to the consummation or
15        termination (i) in accordance with the written
16        direction of the principals to the transaction or
17        their duly authorized agents, (ii) in accordance with
18        directions providing for the release, payment, or
19        distribution of escrow moneys contained in any written
20        contract signed by the principals to the transaction
21        or their duly authorized agents, or (iii) pursuant to
22        an order of a court of competent jurisdiction; or
23            (B) deemed abandoned and transferred to the Office
24        of the State Treasurer to be handled as unclaimed
25        property pursuant to the Revised Uniform Unclaimed
26        Property Act. Escrow moneys may be deemed abandoned

 

 

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1        under this subparagraph (B) only: (i) in the absence
2        of disbursement under subparagraph (A); (ii) in the
3        absence of notice of the filing of any claim in a court
4        of competent jurisdiction; and (iii) if 6 months have
5        elapsed after the receipt of a written demand for the
6        escrow moneys from one of the principals to the
7        transaction or the principal's duly authorized agent.
8    The account shall be noninterest bearing, unless the
9    character of the deposit is such that payment of interest
10    thereon is otherwise required by law or unless the
11    principals to the transaction specifically require, in
12    writing, that the deposit be placed in an interest-bearing
13    account.
14        (18) Failure to make available to the Department all
15    escrow records and related documents maintained in
16    connection with the practice of real estate within 24
17    hours of a request for those documents by Department
18    personnel.
19        (19) Failing to furnish copies upon request of
20    documents relating to a real estate transaction to a party
21    who has executed that document.
22        (20) Failure of a sponsoring broker or licensee to
23    timely provide sponsorship or termination of sponsorship
24    information to the Department.
25        (21) Engaging in dishonorable, unethical, or
26    unprofessional conduct of a character likely to deceive,

 

 

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1    defraud, or harm the public, including, but not limited
2    to, conduct set forth in rules adopted by the Department.
3        (22) Commingling the money or property of others with
4    the licensee's own money or property.
5        (23) Employing any person on a purely temporary or
6    single deal basis as a means of evading the law regarding
7    payment of commission to nonlicensees on some contemplated
8    transactions.
9        (24) Permitting the use of one's license as a broker
10    to enable a residential leasing agent or unlicensed person
11    to operate a real estate business without actual
12    participation therein and control thereof by the broker.
13        (25) Any other conduct, whether of the same or a
14    different character from that specified in this Section,
15    that constitutes dishonest dealing.
16        (26) Displaying a "for rent" or "for sale" sign on any
17    property without the written consent of an owner or the
18    owner's duly authorized agent or advertising by any means
19    that any property is for sale or for rent without the
20    written consent of the owner or the owner's authorized
21    agent.
22        (27) Failing to provide information requested by the
23    Department, or otherwise respond to that request, within
24    30 days of the request.
25        (28) Advertising by means of a blind advertisement,
26    except as otherwise permitted in Section 10-30 of this

 

 

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1    Act.
2        (29) A licensee under this Act or an unlicensed
3    individual offering guaranteed sales plans, as defined in
4    Section 10-50, except to the extent set forth in Section
5    10-50.
6        (30) Influencing or attempting to influence, by any
7    words or acts, a prospective seller, purchaser, occupant,
8    landlord, or tenant of real estate, in connection with
9    viewing, buying, or leasing real estate, so as to promote
10    or tend to promote the continuance or maintenance of
11    racially and religiously segregated housing or so as to
12    retard, obstruct, or discourage racially integrated
13    housing on or in any street, block, neighborhood, or
14    community.
15        (31) Engaging in any act that constitutes a violation
16    of any provision of Article 3 of the Illinois Human Rights
17    Act, whether or not a complaint has been filed with or
18    adjudicated by the Human Rights Commission.
19        (32) Inducing any party to a contract of sale or lease
20    or brokerage agreement to break the contract of sale or
21    lease or brokerage agreement for the purpose of
22    substituting, in lieu thereof, a new contract for sale or
23    lease or brokerage agreement with a third party.
24        (33) Negotiating a sale, exchange, or lease of real
25    estate directly with any person if the licensee knows that
26    the person has an exclusive brokerage agreement with

 

 

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1    another broker, unless specifically authorized by that
2    broker.
3        (34) When a licensee is also an attorney, acting as
4    the attorney for either the buyer or the seller in the same
5    transaction in which the licensee is acting or has acted
6    as a managing broker or broker.
7        (35) Advertising or offering merchandise or services
8    as free if any conditions or obligations necessary for
9    receiving the merchandise or services are not disclosed in
10    the same advertisement or offer. These conditions or
11    obligations include without limitation the requirement
12    that the recipient attend a promotional activity or visit
13    a real estate site. As used in this subdivision (35),
14    "free" includes terms such as "award", "prize", "no
15    charge", "free of charge", "without charge", and similar
16    words or phrases that reasonably lead a person to believe
17    that one may receive or has been selected to receive
18    something of value, without any conditions or obligations
19    on the part of the recipient.
20        (36) (Blank).
21        (37) Violating the terms of any a disciplinary order
22    issued by the Department.
23        (38) Paying or failing to disclose compensation in
24    violation of Article 10 of this Act.
25        (39) Requiring a party to a transaction who is not a
26    client of the licensee to allow the licensee to retain a

 

 

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1    portion of the escrow moneys for payment of the licensee's
2    commission or expenses as a condition for release of the
3    escrow moneys to that party.
4        (40) Disregarding or violating any provision of this
5    Act or the published rules adopted by the Department to
6    enforce this Act or aiding or abetting any individual,
7    foreign or domestic partnership, registered limited
8    liability partnership, limited liability company,
9    corporation, or other business entity in disregarding any
10    provision of this Act or the published rules adopted by
11    the Department to enforce this Act.
12        (41) Failing to provide the minimum services required
13    by Section 15-75 of this Act when acting under an
14    exclusive brokerage agreement.
15        (42) Habitual or excessive use of or addiction to
16    alcohol, narcotics, stimulants, or any other chemical
17    agent or drug that results in a managing broker, broker,
18    or residential leasing agent's inability to practice with
19    reasonable skill or safety.
20        (43) Enabling, aiding, or abetting an auctioneer, as
21    defined in the Auction License Act, to conduct a real
22    estate auction in a manner that is in violation of this
23    Act.
24        (44) Permitting any residential leasing agent or
25    temporary residential leasing agent permit holder to
26    engage in activities that require a broker's or managing

 

 

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1    broker's license.
2        (45) Failing to notify the Department, within 30 days
3    after the occurrence, of the information required in
4    subsection (e) of Section 5-25.
5        (46) A designated managing broker's failure to provide
6    an appropriate written company policy or failure to
7    perform any of the duties set forth in Section 10-55.
8        (47) Filing liens or recording written instruments in
9    any county in the State on noncommercial, residential real
10    property that relate to a broker's compensation for
11    licensed activity under the Act.
12    (b) The Department may refuse to issue or renew or may
13suspend the license of any person who fails to file a return,
14pay the tax, penalty or interest shown in a filed return, or
15pay any final assessment of tax, penalty, or interest, as
16required by any tax Act administered by the Department of
17Revenue, until such time as the requirements of that tax Act
18are satisfied in accordance with subsection (g) of Section
192105-15 of the Department of Professional Regulation Law of
20the Civil Administrative Code of Illinois.
21    (c) (Blank).
22    (d) In cases where the Department of Healthcare and Family
23Services (formerly Department of Public Aid) has previously
24determined that a licensee or a potential licensee is more
25than 30 days delinquent in the payment of child support and has
26subsequently certified the delinquency to the Department may

 

 

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1refuse to issue or renew or may revoke or suspend that person's
2license or may take other disciplinary action against that
3person based solely upon the certification of delinquency made
4by the Department of Healthcare and Family Services in
5accordance with item (5) of subsection (a) of Section 2105-15
6of the Department of Professional Regulation Law of the Civil
7Administrative Code of Illinois.
8    (e) (Blank).
9(Source: P.A. 101-81, eff. 7-12-19; 101-357, eff. 8-9-19;
10102-970, eff. 5-27-22.)
 
11    (225 ILCS 454/20-20.1)
12    (Section scheduled to be repealed on January 1, 2030)
13    Sec. 20-20.1. Citations.
14    (a) The Department may adopt rules to permit the issuance
15of citations to any licensee for failure to comply with the
16continuing education and post-license education requirements
17set forth in this Act or as adopted by rule. The citation shall
18be issued to the licensee, and a copy shall be sent to the
19licensee's designated managing broker and sponsoring broker.
20The citation shall contain the licensee's name and address,
21the licensee's license number, the number of required hours of
22continuing education or post-license education that have not
23been successfully completed by the licensee's renewal
24deadline, and the penalty imposed, which shall not exceed
25$2,000. The issuance of any such citation shall not excuse the

 

 

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1licensee from completing all continuing education or
2post-license education required for that term of licensure.
3    (b) Service of a citation shall be made by in person,
4electronically, or by mail to the licensee at the licensee's
5address of record or email address of record, and must clearly
6state that if the cited licensee wishes to dispute the
7citation, the cited licensee may make a written request,
8within 30 days after the citation is served, for a hearing
9before the Department. If the cited licensee does not request
10a hearing within 30 days after the citation is served, then the
11citation shall become a final, non-disciplinary order, and any
12fine imposed is due and payable within 60 days after that final
13order. If the cited licensee requests a hearing within 30 days
14after the citation is served, the Department shall afford the
15cited licensee a hearing conducted in the same manner as a
16hearing provided for in this Act for any violation of this Act
17and shall determine whether the cited licensee committed the
18violation as charged and whether the fine as levied is
19warranted. If the violation is found, any fine shall
20constitute non-public discipline and be due and payable within
2130 days after the order of the Secretary, which shall
22constitute a final order of the Department. No change in
23license status may be made by the Department until such time as
24a final order of the Department has been issued.
25    (c) Payment of a fine that has been assessed pursuant to
26this Section shall not constitute disciplinary action

 

 

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1reportable on the Department's website or elsewhere unless a
2licensee has previously received 2 or more citations and has
3been assessed 2 or more fines.
4    (d) Nothing in this Section shall prohibit or limit the
5Department from taking further action pursuant to this Act and
6rules for additional, repeated, or continuing violations.
7(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
8    (225 ILCS 454/20-21.1 new)
9    Sec. 20-21.1. Injunctions; cease and desist order.
10    (a) If any person violates the provisions of this Act, the
11Secretary may, in the name of the People of the State of
12Illinois, through the Attorney General or the State's Attorney
13for any county in which the action is brought, petition for an
14order enjoining the violation or for an order enforcing
15compliance with this Act. Upon the filing of a verified
16petition in court, the court may issue a temporary restraining
17order, without notice or condition, and may preliminarily and
18permanently enjoin the violation. If it is established that
19the person has violated or is violating the injunction, the
20Court may punish the offender for contempt of court.
21Proceedings under this Section shall be in addition to, and
22not in lieu of, all other remedies and penalties provided by
23this Act.
24    (b) If, in the opinion of the Department, a person
25violates a provision of this Act, the Department may issue a

 

 

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1ruling to show cause why an order to cease and desist should
2not be entered against that person. The rule shall clearly set
3forth the grounds relied upon by the Department and shall
4allow at least 7 days from the date of the rule to file an
5answer to the satisfaction of the Department. Failure to
6answer to the satisfaction of the Department shall cause an
7order to cease and desist to be issued immediately.
8    (c) Other than as provided in Section 5-20 of this Act, if
9any person practices as a managing broker, broker, or
10residential leasing agent or holds themselves out as a
11licensed sponsoring broker, managing broker, broker, or
12residential leasing agent under this Act without being issued
13a valid active license by the Department, then any licensed
14sponsoring broker, managing broker, broker, residential
15leasing agent, any interested party, or any person injured
16thereby may, in addition to the Secretary, petition for relief
17as provided in subsection (a).
 
18    (225 ILCS 454/20-22)
19    (Section scheduled to be repealed on January 1, 2030)
20    Sec. 20-22. Violations. Any person who is found working or
21acting as a managing broker, broker, or residential leasing
22agent or holding oneself himself or herself out as a licensed
23sponsoring broker, managing broker, broker, or residential
24leasing agent without being issued a valid active license is
25guilty of a Class A misdemeanor and, on conviction of a second

 

 

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1or subsequent offense, the violator shall be guilty of a Class
24 felony.
3(Source: P.A. 101-357, eff. 8-9-19.)
 
4    (225 ILCS 454/20-23)
5    (Section scheduled to be repealed on January 1, 2030)
6    Sec. 20-23. Confidentiality. All information collected by
7the Department in the course of an examination or
8investigation of a licensee or applicant, including, but not
9limited to, any complaint against a licensee, applicant, or
10any person who holds oneself himself or herself out as a
11licensee or applicant that is filed with the Department and
12information collected to investigate any such complaint, shall
13be maintained for the confidential use of the Department and
14shall not be disclosed. The Department may not disclose the
15information to anyone other than law enforcement officials,
16regulatory agencies that have an appropriate regulatory
17interest as determined by the Secretary, or a party presenting
18a lawful subpoena to the Department. Information and documents
19disclosed to a federal, State, county, or local law
20enforcement agency shall not be disclosed by the agency for
21any purpose to any other agency or person. A formal complaint
22filed against a licensee by the Department or any order issued
23by the Department against a licensee or applicant shall be a
24public record, except as otherwise prohibited by law.
25(Source: P.A. 98-553, eff. 1-1-14.)
 

 

 

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1    (225 ILCS 454/20-25)
2    (Section scheduled to be repealed on January 1, 2030)
3    Sec. 20-25. Returned checks and dishonored credit card
4charges; fees. Any person who (1) delivers a check or other
5payment to the Department that is returned to the Department
6unpaid by the financial institution upon which it is drawn
7shall pay to the Department; or (2) presents a credit or debit
8card for payment that is invalid or expired or against which
9charges by the Department are declined or dishonored, in
10addition to the amount already owed to the Department, a fee of
11$50. The Department shall notify the person that payment of
12fees and fines shall be paid to the Department by certified
13check or money order within 30 calendar days of the
14notification. If, after the expiration of 30 days from the
15date of the notification, the person has failed to submit the
16necessary remittance, the Department shall automatically
17revoke the license or deny the application, without hearing.
18If, after revocation or denial, the person seeks a license,
19the person he or she shall apply to the Department for
20restoration or issuance of the license and pay all fees and
21fines due to the Department. The Department may establish a
22fee for the processing of an application for restoration of a
23license to pay all expenses of processing this application.
24The Secretary may waive the fees due under this Section in
25individual cases where the Secretary finds that the fees would

 

 

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1be unreasonable or unnecessarily burdensome.
2(Source: P.A. 101-357, eff. 8-9-19.)
 
3    (225 ILCS 454/20-60)
4    (Section scheduled to be repealed on January 1, 2030)
5    Sec. 20-60. Investigations notice and hearing. The
6Department may investigate the actions of any applicant or of
7any person who is an applicant or person or persons rendering
8or offering to render services for which a license is required
9by this Act or any person holding or claiming to hold a license
10under this Act and may notify the his or her designated
11managing broker and sponsoring broker of the pending
12investigation. The Department shall, before revoking,
13suspending, placing on probation, reprimanding, or taking any
14other disciplinary action under Article 20 of this Act, at
15least 30 days before the date set for the hearing, (i) notify
16the person charged accused and the his or her designated
17managing broker and sponsoring broker in writing of the
18charges made and the time and place for the hearing on the
19charges and whether the licensee's license has been
20temporarily suspended pursuant to Section 20-65, (ii) direct
21the person accused to file a written answer to the charges with
22the Board under oath within 20 days after the service on him or
23her of the notice, and (iii) inform the person accused that
24failure if he or she fails to answer will result in a , default
25will be taken against him or her or that the person's his or

 

 

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1her license may be suspended, revoked, placed on probationary
2status, or other disciplinary action taken with regard to the
3license, including limiting the scope, nature, or extent of
4the ability to his or her practice, as the Department may
5consider proper. At the time and place fixed in the notice, the
6Board shall proceed to hear the charges and the parties or
7their counsel shall be accorded ample opportunity to present
8any pertinent statements, testimony, evidence, and arguments.
9The Board may continue the hearing from time to time. In case
10the person, after receiving the notice, fails to file an
11answer, the person's his or her license may, in the discretion
12of the Department, be suspended, revoked, placed on
13probationary status, or the Department may take whatever
14disciplinary action considered proper, including limiting the
15scope, nature, or extent of the person's practice or the
16imposition of a fine, without a hearing, if the act or acts
17charged constitute sufficient grounds for that action under
18this Act. The notice may be served by personal delivery, by
19mail, or, at the discretion of the Department, by electronic
20means as adopted by rule to the address or email address of
21record specified by the accused in his or her last
22notification with the Department and shall include notice to
23the designated managing broker and sponsoring broker. A copy
24of the Department's final disciplinary order shall be
25delivered to the designated managing broker and sponsoring
26broker.

 

 

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1(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)
 
2    (225 ILCS 454/20-69)
3    (Section scheduled to be repealed on January 1, 2030)
4    Sec. 20-69. Restoration of a suspended or revoked license.
5At any time after the successful completion of a term of
6suspension, or revocation, or probation of a an individual's
7license, the Department may restore it to the licensee, upon
8the written recommendation of the Board, unless after an
9investigation and a hearing the Board determines that
10restoration is not in the public interest.
11(Source: P.A. 102-970, eff. 5-27-22.)
 
12    (225 ILCS 454/20-72)
13    (Section scheduled to be repealed on January 1, 2030)
14    Sec. 20-72. Secretary; rehearing. If the Secretary
15believes that substantial justice has not been done in the
16revocation or suspension of a license, with respect to refusal
17to issue, restore, or renew a license, or any other discipline
18of an applicant, licensee, or unlicensed person, then the
19Secretary he or she may order a rehearing by the same or other
20examiners.
21(Source: P.A. 101-357, eff. 8-9-19.)
 
22    (225 ILCS 454/25-10)
23    (Section scheduled to be repealed on January 1, 2030)

 

 

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1    Sec. 25-10. Real Estate Administration and Disciplinary
2Board; duties. There is created the Real Estate Administration
3and Disciplinary Board. The Board shall be composed of 15
4persons appointed by the Governor. Members shall be appointed
5to the Board subject to the following conditions:
6        (1) All members shall have been residents and citizens
7    of this State for at least 6 years prior to the date of
8    appointment.
9        (2) Twelve members shall have been actively engaged as
10    managing brokers or brokers or both for at least the 10
11    years prior to the appointment, 2 of whom must possess an
12    active pre-license instructor license.
13        (3) Three members of the Board shall be public members
14    who represent consumer interests.
15    None of these members shall be (i) a person who is licensed
16under this Act or a similar Act of another jurisdiction, (ii)
17the spouse or immediate family member of a licensee, or (iii) a
18person who has an ownership interest in a real estate
19brokerage business.
20    The members' terms shall be for 4 years and until a
21successor is appointed. No member shall be reappointed to the
22Board for a term that would cause the member's cumulative
23service to the Board to exceed 12 10 years. Appointments to
24fill vacancies shall be for the unexpired portion of the term.
25Those members of the Board that satisfy the requirements of
26paragraph (2) shall be chosen in a manner such that no area of

 

 

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1the State shall be unreasonably represented. In making the
2appointments, the Governor shall give due consideration to the
3recommendations by members and organizations of the
4profession. The Governor may terminate the appointment of any
5member for cause that in the opinion of the Governor
6reasonably justifies the termination. Cause for termination
7shall include without limitation misconduct, incapacity,
8neglect of duty, or missing 4 board meetings during any one
9fiscal year. Each member of the Board may receive a per diem
10stipend in an amount to be determined by the Secretary. While
11engaged in the performance of duties, each member shall be
12reimbursed for necessary expenses. Such compensation and
13expenses shall be paid out of the Real Estate License
14Administration Fund. The Secretary shall consider the
15recommendations of the Board on questions involving standards
16of professional conduct, discipline, education, and policies
17and procedures under this Act. With regard to this subject
18matter, the Secretary may establish temporary or permanent
19committees of the Board and may consider the recommendations
20of the Board on matters that include, but are not limited to,
21criteria for the licensing and renewal of education providers,
22pre-license and continuing education instructors, pre-license
23and continuing education curricula, standards of educational
24criteria, and qualifications for licensure and renewal of
25professions, courses, and instructors. The Department, after
26notifying and considering the recommendations of the Board, if

 

 

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1any, may issue rules, consistent with the provisions of this
2Act, for the administration and enforcement thereof and may
3prescribe forms that shall be used in connection therewith.
4Eight Board members shall constitute a quorum. A quorum is
5required for all Board decisions. A vacancy in the membership
6of the Board shall not impair the right of a quorum to exercise
7all of the rights and perform all of the duties of the Board.
8    The Board shall elect annually, at its first meeting of
9the fiscal year, a vice chairperson who shall preside, with
10voting privileges, at meetings when the chairperson is not
11present. Members of the Board shall be immune from suit in an
12action based upon any disciplinary proceedings or other acts
13performed in good faith as members of the Board.
14(Source: P.A. 102-970, eff. 5-27-22.)
 
15    (225 ILCS 454/25-25)
16    (Section scheduled to be repealed on January 1, 2030)
17    Sec. 25-25. Real Estate Research and Education Fund. A
18special fund to be known as the Real Estate Research and
19Education Fund is created and shall be held in trust in the
20State Treasury. Annually, on September 15th, the State
21Treasurer shall cause a transfer of $125,000 to the Real
22Estate Research and Education Fund from the Real Estate
23License Administration Fund. The Real Estate Research and
24Education Fund shall be administered by the Department. Money
25deposited in the Real Estate Research and Education Fund may

 

 

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1be used for research and for education at state institutions
2of higher education or other organizations for research and
3for education to further the advancement of education in the
4real estate industry or can be used by the Department for
5expenses related to the education of licensees. Of the
6$125,000 annually transferred into the Real Estate Research
7and Education Fund, $15,000 shall be used to fund a
8scholarship program for persons of minority racial origin who
9wish to pursue a course of study in the field of real estate.
10For the purposes of this Section, "course of study" means a
11course or courses that are part of a program of courses in the
12field of real estate designed to further an individual's
13knowledge or expertise in the field of real estate. These
14courses shall include, without limitation, courses that a
15broker licensed under this Act must complete to qualify for a
16managing broker's license, courses required to obtain the
17Graduate Realtors Institute designation, and any other courses
18or programs offered by accredited colleges, universities, or
19other institutions of higher education in Illinois. The
20scholarship program shall be administered by the Department or
21its designee. Moneys in the Real Estate Research and Education
22Fund may be invested and reinvested in the same manner as funds
23in the Real Estate Recovery Fund and all earnings, interest,
24and dividends received from such investments shall be
25deposited in the Real Estate Research and Education Fund and
26may be used for the same purposes as moneys transferred to the

 

 

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1Real Estate Research and Education Fund. Moneys in the Real
2Estate Research and Education Fund may be transferred to the
3Professions Indirect Cost Fund as authorized under Section
42105-300 of the Department of Professional Regulation Law of
5the Civil Administrative Code of Illinois.
6(Source: P.A. 101-357, eff. 8-9-19.)
 
7    (225 ILCS 454/25-21 rep.)
8    Section 25. The Real Estate License Act of 2000 is amended
9by repealing Section 25-21.
 
10    Section 30. The Real Estate Appraiser Licensing Act of
112002 is amended by changing Sections 1-10, 5-25, 10-5, 10-10,
1215-10, 15-15, and 25-10 as follows:
 
13    (225 ILCS 458/1-10)
14    (Section scheduled to be repealed on January 1, 2027)
15    Sec. 1-10. Definitions. As used in this Act, unless the
16context otherwise requires:
17    "Accredited college or university, junior college, or
18community college" means a college or university, junior
19college, or community college that is approved or accredited
20by the Board of Higher Education, a regional or national
21accreditation association, or by an accrediting agency that is
22recognized by the U.S. Secretary of Education.
23    "Address of record" means the designated street address,

 

 

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1which may not be a post office box, recorded by the Department
2in the applicant's or licensee's application file or license
3file as maintained by the Department.
4    "Applicant" means a person who applies to the Department
5for a license under this Act.
6    "Appraisal" means (noun) the act or process of developing
7an opinion of value; an opinion of value (adjective) of or
8pertaining to appraising and related functions, such as
9appraisal practice or appraisal services.
10    "Appraisal assignment" means a valuation service provided
11pursuant to an agreement between an appraiser and a client.
12    "Appraisal firm" means an appraisal entity that is 100%
13owned and controlled by a person or persons licensed in
14Illinois as a certified general real estate appraiser or a
15certified residential real estate appraiser. "Appraisal firm"
16does not include an appraisal management company.
17    "Appraisal management company" means any corporation,
18limited liability company, partnership, sole proprietorship,
19subsidiary, unit, or other business entity that directly or
20indirectly: (1) provides appraisal management services to
21creditors or secondary mortgage market participants, including
22affiliates; (2) provides appraisal management services in
23connection with valuing the consumer's principal dwelling as
24security for a consumer credit transaction (including consumer
25credit transactions incorporated into securitizations); and
26(3) any appraisal management company that, within a given

 

 

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112-month period, oversees an appraiser panel of 16 or more
2State-certified appraisers in Illinois or 25 or more
3State-certified or State-licensed appraisers in 2 or more
4jurisdictions. "Appraisal management company" includes a
5hybrid entity.
6    "Appraisal practice" means valuation services performed by
7an individual acting as an appraiser, including, but not
8limited to, appraisal or appraisal review.
9    "Appraisal qualification board (AQB)" means the
10independent board of the Appraisal Foundation, which, under
11the provisions of Title XI of the Financial Institutions
12Reform, Recovery, and Enforcement Act of 1989, establishes the
13minimum education, experience, and examination requirements
14for real property appraisers to obtain a state certification
15or license.
16    "Appraisal report" means any communication, written or
17oral, of an appraisal or appraisal review that is transmitted
18to a client upon completion of an assignment.
19    "Appraisal review" means the act or process of developing
20and communicating an opinion about the quality of another
21appraiser's work that was performed as part of an appraisal,
22appraisal review, or appraisal assignment.
23    "Appraisal Subcommittee" means the Appraisal Subcommittee
24of the Federal Financial Institutions Examination Council as
25established by Title XI.
26    "Appraiser" means a person who performs real estate or

 

 

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1real property appraisals competently and in a manner that is
2independent, impartial, and objective.
3    "Appraiser panel" means a network, list, or roster of
4licensed or certified appraisers approved by the appraisal
5management company or by the end-user client to perform
6appraisals as independent contractors for the appraisal
7management company. "Appraiser panel" includes both appraisers
8accepted by an appraisal management company for consideration
9for future appraisal assignments and appraisers engaged by an
10appraisal management company to perform one or more
11appraisals. For the purposes of determining the size of an
12appraiser panel, only independent contractors of hybrid
13entities shall be counted towards the appraiser panel.
14    "AQB" means the Appraisal Qualifications Board of the
15Appraisal Foundation.
16    "Associate real estate trainee appraiser" means an
17entry-level appraiser who holds a license of this
18classification under this Act with restrictions as to the
19scope of practice in accordance with this Act.
20    "Automated valuation model" means an automated system that
21is used to derive a property value through the use of available
22property records and various analytic methodologies such as
23comparable sales prices, home characteristics, and price
24changes.
25    "Board" means the Real Estate Appraisal Administration and
26Disciplinary Board.

 

 

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1    "Broker price opinion" means an estimate or analysis of
2the probable selling price of a particular interest in real
3estate, which may provide a varying level of detail about the
4property's condition, market, and neighborhood and information
5on comparable sales. The activities of a real estate broker or
6managing broker engaging in the ordinary course of business as
7a broker, as defined in this Section, shall not be considered a
8broker price opinion if no compensation is paid to the broker
9or managing broker, other than compensation based upon the
10sale or rental of real estate.
11    "Classroom hour" means 50 minutes of instruction out of
12each 60-minute segment of coursework.
13    "Client" means the party or parties who engage an
14appraiser by employment or contract in a specific appraisal
15assignment.
16    "Comparative market analysis" is an analysis or opinion
17regarding pricing, marketing, or financial aspects relating to
18a specified interest or interests in real estate that may be
19based upon an analysis of comparative market data, the
20expertise of the real estate broker or managing broker, and
21such other factors as the broker or managing broker may deem
22appropriate in developing or preparing such analysis or
23opinion. The activities of a real estate broker or managing
24broker engaging in the ordinary course of business as a
25broker, as defined in this Section, shall not be considered a
26comparative market analysis if no compensation is paid to the

 

 

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1broker or managing broker, other than compensation based upon
2the sale or rental of real estate.
3    "Coordinator" means the Real Estate Appraisal Coordinator
4created in Section 25-15.
5    "Department" means the Department of Financial and
6Professional Regulation.
7    "Email address of record" means the designated email
8address recorded by the Department in the applicant's
9application file or the licensee's license file maintained by
10the Department.
11    "Evaluation" means a valuation permitted by the appraisal
12regulations of the Federal Financial Institutions Examination
13Council and its federal agencies for transactions that qualify
14for the appraisal threshold exemption, business loan
15exemption, or subsequent transaction exemption.
16    "Federal financial institutions regulatory agencies" means
17the Board of Governors of the Federal Reserve System, the
18Federal Deposit Insurance Corporation, the Office of the
19Comptroller of the Currency, the Consumer Financial Protection
20Bureau, and the National Credit Union Administration.
21    "Federally related transaction" means any real
22estate-related financial transaction in which a federal
23financial institutions regulatory agency engages in, contracts
24for, or regulates and requires the services of an appraiser.
25    "Financial institution" means any bank, savings bank,
26savings and loan association, credit union, mortgage broker,

 

 

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1mortgage banker, licensee under the Consumer Installment Loan
2Act or the Sales Finance Agency Act, or a corporate fiduciary,
3subsidiary, affiliate, parent company, or holding company of
4any such licensee, or any institution involved in real estate
5financing that is regulated by state or federal law.
6    "Hybrid entity" means an appraisal management company that
7hires an appraiser as an employee to perform an appraisal and
8engages an independent contractor to perform an appraisal.
9    "License" means the privilege conferred by the Department
10to a person that has fulfilled all requirements prerequisite
11to any type of licensure under this Act.
12    "Licensee" means any person licensed under this Act.
13    "Multi-state licensing system" means a web-based platform
14that allows an applicant to submit the application or license
15renewal application to the Department online.
16    "Person" means an individual, entity, sole proprietorship,
17corporation, limited liability company, partnership, and joint
18venture, foreign or domestic, except that when the context
19otherwise requires, the term may refer to more than one
20individual or other described entity.
21    "Real estate" means an identified parcel or tract of land,
22including any improvements.
23    "Real estate related financial transaction" means any
24transaction involving:
25        (1) the sale, lease, purchase, investment in, or
26    exchange of real property, including interests in property

 

 

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1    or the financing thereof;
2        (2) the refinancing of real property or interests in
3    real property; and
4        (3) the use of real property or interest in property
5    as security for a loan or investment, including mortgage
6    backed securities.
7    "Real property" means the interests, benefits, and rights
8inherent in the ownership of real estate.
9    "Secretary" means the Secretary of Financial and
10Professional Regulation or the Secretary's designee.
11    "State certified general real estate appraiser" means an
12appraiser who holds a license of this classification under
13this Act and such classification applies to the appraisal of
14all types of real property without restrictions as to the
15scope of practice.
16    "State certified residential real estate appraiser" means
17an appraiser who holds a license of this classification under
18this Act and such classification applies to the appraisal of
19one to 4 units of residential real property without regard to
20transaction value or complexity, but with restrictions as to
21the scope of practice in a federally related transaction in
22accordance with Title XI, the provisions of USPAP, criteria
23established by the AQB, and further defined by rule.
24    "Supervising appraiser" means either (i) an appraiser who
25holds a valid license under this Act as either a State
26certified general real estate appraiser or a State certified

 

 

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1residential real estate appraiser, who co-signs an appraisal
2report for an associate real estate trainee appraiser or (ii)
3a State certified general real estate appraiser who holds a
4valid license under this Act who co-signs an appraisal report
5for a State certified residential real estate appraiser on
6properties other than one to 4 units of residential real
7property without regard to transaction value or complexity.
8    "Title XI" means Title XI of the federal Financial
9Institutions Reform, Recovery, and Enforcement Act of 1989.
10    "USPAP" means the Uniform Standards of Professional
11Appraisal Practice as promulgated by the Appraisal Standards
12Board pursuant to Title XI and by rule.
13    "Valuation services" means services pertaining to aspects
14of property value.
15(Source: P.A. 102-20, eff. 1-1-22; 102-687, eff. 12-17-21;
16102-970, eff. 5-27-22.)
 
17    (225 ILCS 458/5-25)
18    (Section scheduled to be repealed on January 1, 2027)
19    Sec. 5-25. Renewal of license.
20    (a) The expiration date and renewal period for a State
21certified general real estate appraiser license or a State
22certified residential real estate appraiser license issued
23under this Act shall be set by rule. Except as otherwise
24provided in subsections (b) and (f) of this Section, the
25holder of a license may renew the license within 90 days

 

 

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1preceding the expiration date by:
2        (1) completing and submitting to the Department, or
3    through a multi-state licensing system as designated by
4    the Secretary, a renewal application form as provided by
5    the Department;
6        (2) paying the required fees; and
7        (3) providing evidence to the Department, or through a
8    multi-state licensing system as designated by the
9    Secretary, of successful completion of the continuing
10    education requirements through courses approved by the
11    Department from education providers licensed by the
12    Department, as established by the AQB and by rule.
13    (b) A State certified general real estate appraiser or
14State certified residential real estate appraiser whose
15license under this Act has expired may renew the license for a
16period of 2 years following the expiration date by complying
17with the requirements of paragraphs (1), (2), and (3) of
18subsection (a) of this Section and paying any late penalties
19established by rule.
20    (c) (Blank).
21    (d) The expiration date and renewal period for an
22associate real estate trainee appraiser license issued under
23this Act shall be set by rule. Except as otherwise provided in
24subsections (e) and (f) of this Section, the holder of an
25associate real estate trainee appraiser license may renew the
26license within 90 days preceding the expiration date by:

 

 

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1        (1) completing and submitting to the Department, or
2    through a multi-state licensing system as designated by
3    the Secretary, a renewal application form as provided by
4    the Department;
5        (2) paying the required fees; and
6        (3) providing evidence to the Department, or through a
7    multi-state licensing system as designated by the
8    Secretary, of successful completion of the continuing
9    education requirements through courses approved by the
10    Department from education providers approved by the
11    Department, as established by rule.
12    (e) Any associate real estate trainee appraiser whose
13license under this Act has expired may renew the license for a
14period of 2 years following the expiration date by complying
15with the requirements of paragraphs (1), (2), and (3) of
16subsection (d) of this Section and paying any late penalties
17as established by rule.
18    (f) Notwithstanding subsections (c) and (e), an appraiser
19whose license under this Act has expired may renew or convert
20the license without paying any lapsed renewal fees or late
21penalties if the license expired while the appraiser was:
22        (1) on active duty with the United States Armed
23    Services;
24        (2) serving as the Coordinator or an employee of the
25    Department who was required to surrender the license
26    during the term of employment.

 

 

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1    Application for renewal must be made within 2 years
2following the termination of the military service or related
3education, training, or employment and shall include an
4affidavit from the licensee of engagement.
5    (g) The Department shall provide reasonable care and due
6diligence to ensure that each licensee under this Act is
7provided with a renewal application at least 90 days prior to
8the expiration date, but timely renewal or conversion of the
9license prior to its expiration date is the responsibility of
10the licensee.
11    (h) The Department shall not issue or renew a license if
12the applicant or licensee has an unpaid fine or fee from a
13disciplinary matter or from a non-disciplinary action imposed
14by the Department until the fine or fee is paid to the
15Department or the applicant or licensee has entered into a
16payment plan and is current on the required payments.
17    (i) The Department shall not issue or renew a license if
18the applicant or licensee has an unpaid fine or civil penalty
19imposed by the Department for unlicensed practice until the
20fine or civil penalty is paid to the Department or the
21applicant or licensee has entered into a payment plan and is
22current on the required payments.
23(Source: P.A. 101-81, eff. 7-12-19; 102-20, eff. 1-1-22;
24102-970, eff. 5-27-22.)
 
25    (225 ILCS 458/10-5)

 

 

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1    (Section scheduled to be repealed on January 1, 2027)
2    Sec. 10-5. Scope of practice.
3    (a) This Act does not limit a State certified general real
4estate appraiser's scope of practice in a federally related
5transaction. A State certified general real estate appraiser
6may independently provide appraisal services, review, or
7consult related to any type of property for which there is
8related experience or competency by the appraiser. All such
9appraisal practice must be made in accordance with the
10provisions of USPAP, criteria established by the AQB, and
11rules adopted pursuant to this Act.
12    (b) A State certified residential real estate appraiser is
13limited in scope of practice to the provisions of USPAP,
14criteria established by the AQB, and the rules adopted
15pursuant to this Act.
16    (c) A State certified residential real estate appraiser
17must have a State certified general real estate appraiser who
18holds a valid license under this Act co-sign all appraisal
19reports on properties other than one to 4 units of residential
20real property without regard to transaction value or
21complexity.
22    (d) An associate real estate trainee appraiser is limited
23in scope of practice in all transactions or appraisal reports
24in accordance with the provisions of USPAP, this Act, and the
25rules adopted pursuant to this Act. In addition, an An
26associate real estate trainee appraiser shall be required to

 

 

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1have a State certified general real estate appraiser or State
2certified residential real estate appraiser who holds a valid
3license under this Act to co-sign all appraisal reports. A
4supervising appraiser may not supervise more than 3 associate
5real estate trainee appraisers at one time. Associate real
6estate trainee appraisers shall not be limited in the number
7of concurrent supervising appraisers. A chronological
8appraisal log on an approved log form shall be maintained by
9the associate real estate trainee appraiser and shall be made
10available to the Department upon request. Notwithstanding any
11other provision of this subsection to the contrary, the
12Appraisal Qualification Board may establish alternative
13experience requirements as an associate real estate trainee
14appraiser that is adopted by rule.
15(Source: P.A. 102-20, eff. 1-1-22.)
 
16    (225 ILCS 458/10-10)
17    (Section scheduled to be repealed on January 1, 2027)
18    Sec. 10-10. Standards of practice. All persons licensed
19under this Act must comply with standards of professional
20appraisal practice adopted by the Department. The Department
21must adopt, as part of its rules, the Uniform Standards of
22Professional Appraisal Practice (USPAP) as published from time
23to time by the Appraisal Standards Board of the Appraisal
24Foundation. The Department shall consider federal laws and
25regulations, including, but not limited to, appraisal

 

 

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1qualification board policies and guidelines, regarding the
2licensure of real estate appraisers prior to adopting its
3rules for the administration of this Act. When an appraisal
4obtained through an appraisal management company is used for
5loan purposes, the borrower or loan applicant shall be
6provided with a written disclosure of the total compensation
7to the appraiser or appraisal firm within the body of the
8appraisal report and it shall not be redacted or otherwise
9obscured.
10(Source: P.A. 102-20, eff. 1-1-22.)
 
11    (225 ILCS 458/15-10)
12    (Section scheduled to be repealed on January 1, 2027)
13    Sec. 15-10. Grounds for disciplinary action.
14    (a) The Department may suspend, revoke, refuse to issue,
15renew, or restore a license and may reprimand place on
16probation or administrative supervision, or take any
17disciplinary or non-disciplinary action, including imposing
18conditions limiting the scope, nature, or extent of the real
19estate appraisal practice of a licensee or reducing the
20appraisal rank of a licensee, and may impose an administrative
21fine not to exceed $25,000 for each violation upon a licensee
22or applicant under this Act or any person who holds oneself out
23as an applicant or licensee for any one or combination of the
24following:
25        (1) Procuring or attempting to procure a license by

 

 

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1    knowingly making a false statement, submitting false
2    information, engaging in any form of fraud or
3    misrepresentation, or refusing to provide complete
4    information in response to a question in an application
5    for licensure.
6        (2) Failing to meet the minimum qualifications for
7    licensure as an appraiser established by this Act.
8        (3) Paying money, other than for the fees provided for
9    by this Act, or anything of value to a member or employee
10    of the Board or the Department to procure licensure under
11    this Act.
12        (4) Conviction of, or plea of guilty or nolo
13    contendere, as enumerated in subsection (e) of Section
14    5-22, under the laws of any jurisdiction of the United
15    States: (i) that is a felony, misdemeanor, or
16    administrative sanction or (ii) that is a crime that
17    subjects the licensee to compliance with the requirements
18    of the Sex Offender Registration Act.
19        (5) Committing an act or omission involving
20    dishonesty, fraud, or misrepresentation with the intent to
21    substantially benefit the licensee or another person or
22    with intent to substantially injure another person as
23    defined by rule.
24        (6) Violating a provision or standard for the
25    development or communication of real estate appraisals as
26    provided in Section 10-10 of this Act or as defined by

 

 

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1    rule.
2        (7) Failing or refusing without good cause to exercise
3    reasonable diligence in developing, reporting, or
4    communicating an appraisal, as defined by this Act or by
5    rule.
6        (8) Violating a provision of this Act or the rules
7    adopted pursuant to this Act.
8        (9) Having been disciplined by another state, the
9    District of Columbia, a territory, a foreign nation, a
10    governmental agency, or any other entity authorized to
11    impose discipline if at least one of the grounds for that
12    discipline is the same as or the equivalent of one of the
13    grounds for which a licensee may be disciplined under this
14    Act.
15        (10) Engaging in dishonorable, unethical, or
16    unprofessional conduct of a character likely to deceive,
17    defraud, or harm the public.
18        (11) Accepting an appraisal assignment when the
19    employment itself is contingent upon the appraiser
20    reporting a predetermined estimate, analysis, or opinion
21    or when the fee to be paid is contingent upon the opinion,
22    conclusion, or valuation reached or upon the consequences
23    resulting from the appraisal assignment.
24        (12) Developing valuation conclusions based on the
25    race, color, religion, sex, national origin, ancestry,
26    age, marital status, family status, physical or mental

 

 

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1    disability, sexual orientation, pregnancy, order of
2    protection status, military status, or unfavorable
3    military discharge, source of income, or any other
4    protected class as defined under the Illinois Human Rights
5    Act, of the prospective or present owners or occupants of
6    the area or property under appraisal.
7        (13) Violating the confidential nature of government
8    records to which the licensee gained access through
9    employment or engagement as an appraiser by a government
10    agency.
11        (14) Being adjudicated liable in a civil proceeding on
12    grounds of fraud, misrepresentation, or deceit. In a
13    disciplinary proceeding based upon a finding of civil
14    liability, the appraiser shall be afforded an opportunity
15    to present mitigating and extenuating circumstances, but
16    may not collaterally attack the civil adjudication.
17        (15) Being adjudicated liable in a civil proceeding
18    for violation of a state or federal fair housing law.
19        (16) Engaging in misleading or untruthful advertising
20    or using a trade name or insignia of membership in a real
21    estate appraisal or real estate organization of which the
22    licensee is not a member.
23        (17) Failing to fully cooperate with a Department
24    investigation by knowingly making a false statement,
25    submitting false or misleading information, or refusing to
26    provide complete information in response to written

 

 

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1    interrogatories or a written request for documentation
2    within 30 days of the request.
3        (18) Failing to include within the certificate of
4    appraisal for all written appraisal reports the
5    appraiser's license number and licensure title. All
6    appraisers providing significant contribution to the
7    development and reporting of an appraisal must be
8    disclosed in the appraisal report. It is a violation of
9    this Act for an appraiser to sign a report, transmittal
10    letter, or appraisal certification knowing that a person
11    providing a significant contribution to the report has not
12    been disclosed in the appraisal report.
13        (19) Violating the terms of a disciplinary order or
14    consent to administrative supervision order.
15        (20) Habitual or excessive use or addiction to
16    alcohol, narcotics, stimulants, or any other chemical
17    agent or drug that results in a licensee's inability to
18    practice with reasonable judgment, skill, or safety.
19        (21) A physical or mental illness or disability which
20    results in the inability to practice under this Act with
21    reasonable judgment, skill, or safety.
22        (22) Gross negligence in developing an appraisal or in
23    communicating an appraisal or failing to observe one or
24    more of the Uniform Standards of Professional Appraisal
25    Practice.
26        (23) A pattern of practice or other behavior that

 

 

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1    demonstrates incapacity or incompetence to practice under
2    this Act.
3        (24) Using or attempting to use the seal, certificate,
4    or license of another as one's own; falsely impersonating
5    any duly licensed appraiser; using or attempting to use an
6    inactive, expired, suspended, or revoked license; or
7    aiding or abetting any of the foregoing.
8        (25) Solicitation of professional services by using
9    false, misleading, or deceptive advertising.
10        (26) Making a material misstatement in furnishing
11    information to the Department.
12        (27) Failure to furnish information to the Department
13    upon written request.
14    (b) The Department may reprimand suspend, revoke, or
15refuse to issue or renew an education provider's license, may
16reprimand, place on probation, or otherwise discipline an
17education provider and may suspend or revoke the course
18approval of any course offered by an education provider and
19may impose an administrative fine not to exceed $25,000 upon
20an education provider, for any of the following:
21        (1) Procuring or attempting to procure licensure by
22    knowingly making a false statement, submitting false
23    information, engaging in any form of fraud or
24    misrepresentation, or refusing to provide complete
25    information in response to a question in an application
26    for licensure.

 

 

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1        (2) Failing to comply with the covenants certified to
2    on the application for licensure as an education provider.
3        (3) Committing an act or omission involving
4    dishonesty, fraud, or misrepresentation or allowing any
5    such act or omission by any employee or contractor under
6    the control of the provider.
7        (4) Engaging in misleading or untruthful advertising.
8        (5) Failing to retain competent instructors in
9    accordance with rules adopted under this Act.
10        (6) Failing to meet the topic or time requirements for
11    course approval as the provider of a qualifying curriculum
12    course or a continuing education course.
13        (7) Failing to administer an approved course using the
14    course materials, syllabus, and examinations submitted as
15    the basis of the course approval.
16        (8) Failing to provide an appropriate classroom
17    environment for presentation of courses, with
18    consideration for student comfort, acoustics, lighting,
19    seating, workspace, and visual aid material.
20        (9) Failing to maintain student records in compliance
21    with the rules adopted under this Act.
22        (10) Failing to provide a certificate, transcript, or
23    other student record to the Department or to a student as
24    may be required by rule.
25        (11) Failing to fully cooperate with an investigation
26    by the Department by knowingly making a false statement,

 

 

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1    submitting false or misleading information, or refusing to
2    provide complete information in response to written
3    interrogatories or a written request for documentation
4    within 30 days of the request.
5    (c) In appropriate cases, the Department may resolve a
6complaint against a licensee through the issuance of a Consent
7to Administrative Supervision order. A licensee subject to a
8Consent to Administrative Supervision order shall be
9considered by the Department as an active licensee in good
10standing. This order shall not be reported or considered by
11the Department to be a discipline of the licensee. The records
12regarding an investigation and a Consent to Administrative
13Supervision order shall be considered confidential and shall
14not be released by the Department except as mandated by law. A
15complainant shall be notified if the complaint has been
16resolved by a Consent to Administrative Supervision order.
17(Source: P.A. 102-20, eff. 1-1-22.)
 
18    (225 ILCS 458/15-15)
19    (Section scheduled to be repealed on January 1, 2027)
20    Sec. 15-15. Investigation; notice; hearing.
21    (a) Upon the motion of the Department or the Board or upon
22a complaint in writing of a person setting forth facts that, if
23proven, would constitute grounds for suspension, revocation,
24or other disciplinary action, the Department shall investigate
25the actions or qualifications of any person who is against a

 

 

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1licensee, or applicant for licensure, unlicensed person,
2person rendering or offering to render appraisal services, or
3holding or claiming to hold a license under this Act the
4Department shall investigate the actions of the licensee or
5applicant. If, upon investigation, the Department believes
6that there may be cause for suspension, revocation, or other
7disciplinary action, the Department shall use the services of
8a State certified general real estate appraiser, a State
9certified residential real estate appraiser, or the
10Coordinator to assist in determining whether grounds for
11disciplinary action exist prior to commencing formal
12disciplinary proceedings.
13    (b) Formal disciplinary proceedings shall commence upon
14the issuance of a written complaint describing the charges
15that are the basis of the disciplinary action and delivery of
16the detailed complaint to the address of record of the person
17charged licensee or applicant. For an associate real estate
18trainee appraiser, a copy shall also be sent to the licensee's
19supervising appraiser of record. The Department shall notify
20the person licensee or applicant to file a verified written
21answer within 20 days after the service of the notice and
22complaint. The notification shall inform the person licensee
23or applicant of the right to be heard in person or by legal
24counsel; that the hearing will be afforded not sooner than 20
25days after service of the complaint; that failure to file an
26answer will result in a default being entered against the

 

 

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1person licensee or applicant; that the license may be
2suspended, revoked, or placed on probationary status; and that
3other disciplinary action may be taken pursuant to this Act,
4including limiting the scope, nature, or extent of the
5licensee's practice. If the person licensee or applicant fails
6to file an answer after service of notice, the respective
7license may, at the discretion of the Department, be
8suspended, revoked, or placed on probationary status and the
9Department may take whatever disciplinary action it deems
10proper, including limiting the scope, nature, or extent of the
11person's practice, without a hearing.
12    (c) At the time and place fixed in the notice, the Board
13shall conduct hearing of the charges, providing both the
14accused person charged and the complainant ample opportunity
15to present in person or by counsel such statements, testimony,
16evidence, and argument as may be pertinent to the charges or to
17a defense thereto.
18    (d) The Board shall present to the Secretary a written
19report of its findings of fact and recommendations. A copy of
20the report shall be served upon the person licensee or
21applicant, either personally, by mail, or, at the discretion
22of the Department, by electronic means. For associate real
23estate trainee appraisers, a copy shall also be sent to the
24licensee's supervising appraiser of record. Within 20 days
25after the service, the person licensee or applicant may
26present the Secretary with a motion in writing for a rehearing

 

 

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1and shall specify the particular grounds for the request. If
2the person accused orders a transcript of the record as
3provided in this Act, the time elapsing thereafter and before
4the transcript is ready for delivery to the person accused
5shall not be counted as part of the 20 days. If the Secretary
6is not satisfied that substantial justice has been done, the
7Secretary may order a rehearing by the Board or other special
8committee appointed by the Secretary, may remand the matter to
9the Board for its reconsideration of the matter based on the
10pleadings and evidence presented to the Board, or may enter a
11final order in contravention of the Board's recommendation.
12Notwithstanding a person's licensee's or applicant's failure
13to file a motion for rehearing, the Secretary shall have the
14right to take any of the actions specified in this subsection
15(d). Upon the suspension or revocation of a license, the
16licensee shall be required to surrender the respective license
17to the Department, and upon failure or refusal to do so, the
18Department shall have the right to seize the license.
19    (e) The Department has the power to issue subpoenas and
20subpoenas duces tecum to bring before it any person in this
21State, to take testimony, or to require production of any
22records relevant to an inquiry or hearing by the Board in the
23same manner as prescribed by law in judicial proceedings in
24the courts of this State. In a case of refusal of a witness to
25attend, testify, or to produce books or papers concerning a
26matter upon which the witness might be lawfully examined, the

 

 

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1circuit court of the county where the hearing is held, upon
2application of the Department or any party to the proceeding,
3may compel obedience by proceedings as for contempt.
4    (f) Any license that is revoked may not be restored for a
5minimum period of 3 years.
6    (g) In addition to the provisions of this Section
7concerning the conduct of hearings and the recommendations for
8discipline, the Department has the authority to negotiate
9disciplinary and non-disciplinary settlement agreements
10concerning any license issued under this Act. All such
11agreements shall be recorded as Consent Orders or Consent to
12Administrative Supervision Orders.
13    (h) The Secretary shall have the authority to appoint an
14attorney duly licensed to practice law in the State of
15Illinois to serve as the hearing officer in any action to
16suspend, revoke, or otherwise discipline any license issued by
17the Department. The Hearing Officer shall have full authority
18to conduct the hearing.
19    (i) The Department, at its expense, shall preserve a
20record of all formal hearings of any contested case involving
21the discipline of a license. At all hearings or pre-hearing
22conferences, the Department and the licensee shall be entitled
23to have the proceedings transcribed by a certified shorthand
24reporter. A copy of the transcribed proceedings shall be made
25available to the licensee by the certified shorthand reporter
26upon payment of the prevailing contract copy rate.

 

 

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1(Source: P.A. 102-20, eff. 1-1-22; 102-970, eff. 5-27-22.)
 
2    (225 ILCS 458/25-10)
3    (Section scheduled to be repealed on January 1, 2027)
4    Sec. 25-10. Real Estate Appraisal Administration and
5Disciplinary Board; appointment.
6    (a) There is hereby created the Real Estate Appraisal
7Administration and Disciplinary Board. The Board shall be
8composed of the Coordinator and 10 persons appointed by the
9Governor. Members shall be appointed to the Board subject to
10the following conditions:
11        (1) All appointed members shall have been residents
12    and citizens of this State for at least 5 years prior to
13    the date of appointment.
14        (2) The appointed membership of the Board should
15    reasonably reflect the geographic distribution of the
16    population of the State.
17        (3) Four appointed members shall have been actively
18    engaged and currently licensed as State certified general
19    real estate appraisers for a period of not less than 5
20    years.
21        (4) Three appointed members shall have been actively
22    engaged and currently licensed as State certified
23    residential real estate appraisers for a period of not
24    less than 5 years.
25        (5) One appointed member shall hold a valid license as

 

 

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1    a real estate broker for at least 3 years prior to the date
2    of the appointment and shall hold either a valid State
3    certified general real estate appraiser license or a valid
4    State certified residential appraiser license issued under
5    this Act or a predecessor Act for a period of at least 5
6    years prior to the appointment.
7        (6) One appointed member shall be a representative of
8    a financial institution, as evidenced by proof of
9    employment with a financial institution.
10        (7) One appointed member shall represent the interests
11    of the general public. This member or the member's spouse
12    shall not be licensed under this Act nor be employed by or
13    have any financial interest in an appraisal business,
14    appraisal management company, real estate brokerage
15    business, or a financial institution.
16    In making appointments as provided in paragraphs (3) and
17(4) of this subsection, the Governor shall give due
18consideration to recommendations by members and organizations
19representing the profession.
20    In making the appointments as provided in paragraph (5) of
21this subsection, the Governor shall give due consideration to
22the recommendations by members and organizations representing
23the real estate industry.
24    In making the appointment as provided in paragraph (6) of
25this subsection, the Governor shall give due consideration to
26the recommendations by members and organizations representing

 

 

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1financial institutions.
2    (b) The members' terms shall be for 4 years or until a
3successor is appointed. No member shall be reappointed to the
4Board for a term that would cause the member's cumulative
5service to the Board to exceed 12 10 years. Appointments to
6fill vacancies shall be for the unexpired portion of the term.
7    (c) The Governor may terminate the appointment of a member
8for cause that, in the opinion of the Governor, reasonably
9justifies the termination. Cause for termination may include,
10without limitation, misconduct, incapacity, neglect of duty,
11or missing 4 Board meetings during any one fiscal year.
12    (d) A majority of the Board members shall constitute a
13quorum. A vacancy in the membership of the Board shall not
14impair the right of a quorum to exercise all of the rights and
15perform all of the duties of the Board.
16    (e) The Board shall meet at least monthly and may be
17convened by the Chairperson, Vice-Chairperson, or 3 members of
18the Board upon 10 days written notice.
19    (f) The Board shall, annually at the first meeting of the
20fiscal year, elect a Chairperson and Vice-Chairperson from its
21members. The Chairperson shall preside over the meetings and
22shall coordinate with the Coordinator in developing and
23distributing an agenda for each meeting. In the absence of the
24Chairperson, the Vice-Chairperson shall preside over the
25meeting.
26    (g) The Coordinator shall serve as a member of the Board

 

 

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1without vote.
2    (h) The Board shall advise and make recommendations to the
3Department on the education and experience qualifications of
4any applicant for initial licensure as a State certified
5general real estate appraiser or a State certified residential
6real estate appraiser. The Department shall not make any
7decisions concerning education or experience qualifications of
8an applicant for initial licensure as a State certified
9general real estate appraiser or a State certified residential
10real estate appraiser without having first received the advice
11and recommendation of the Board and shall give due
12consideration to all such advice and recommendations; however,
13if the Board does not render advice or make a recommendation
14within a reasonable amount of time, then the Department may
15render a decision.
16    (i) Except as provided in Section 15-17 of this Act, the
17Board shall hear and make recommendations to the Secretary on
18disciplinary matters that require a formal evidentiary
19hearing. The Secretary shall give due consideration to the
20recommendations of the Board involving discipline and
21questions involving standards of professional conduct of
22licensees.
23    (j) The Department shall seek and the Board shall provide
24recommendations to the Department consistent with the
25provisions of this Act and for the administration and
26enforcement of all rules adopted pursuant to this Act. The

 

 

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1Department shall give due consideration to such
2recommendations prior to adopting rules.
3    (k) The Department shall seek and the Board shall provide
4recommendations to the Department on the approval of all
5courses submitted to the Department pursuant to this Act and
6the rules adopted pursuant to this Act. The Department shall
7not approve any courses without having first received the
8recommendation of the Board and shall give due consideration
9to such recommendations prior to approving and licensing
10courses; however, if the Board does not make a recommendation
11within a reasonable amount of time, then the Department may
12approve courses.
13    (l) Each voting member of the Board may receive a per diem
14stipend in an amount to be determined by the Secretary. While
15engaged in the performance of duties, each member shall be
16reimbursed for necessary expenses.
17    (m) Members of the Board shall be immune from suit in an
18action based upon any disciplinary proceedings or other acts
19performed in good faith as members of the Board.
20    (n) If the Department disagrees with any advice or
21recommendation provided by the Board under this Section to the
22Secretary or the Department, then notice of such disagreement
23must be provided to the Board by the Department.
24    (o) (Blank).
25(Source: P.A. 102-20, eff. 1-1-22; 102-970, eff. 5-27-22.)
 

 

 

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1    Section 35. The Appraisal Management Company Registration
2Act is amended by changing Sections 65, 75, and 95 as follows:
 
3    (225 ILCS 459/65)
4    Sec. 65. Disciplinary actions.
5    (a) The Department may refuse to issue or renew, or may
6revoke, suspend, place on probation, reprimand, or take other
7disciplinary or non-disciplinary action as the Department may
8deem appropriate, including imposing fines not to exceed
9$25,000 for each violation upon any registrant or applicant
10under this Act or entity who holds oneself or itself out as an
11applicant or registrant , with regard to any registration for
12any one or combination of the following:
13        (1) Material misstatement in furnishing information to
14    the Department.
15        (2) Violations of this Act, or of the rules adopted
16    under this Act.
17        (3) Conviction of, or entry of a plea of guilty or nolo
18    contendere to any crime that is a felony under the laws of
19    the United States or any state or territory thereof or
20    that is a misdemeanor of which an essential element is
21    dishonesty, or any crime that is directly related to the
22    practice of the profession.
23        (4) Making any misrepresentation for the purpose of
24    obtaining registration or violating any provision of this
25    Act or the rules adopted under this Act pertaining to

 

 

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1    advertising.
2        (5) Professional incompetence.
3        (6) Gross malpractice.
4        (7) Aiding or assisting another person in violating
5    any provision of this Act or rules adopted under this Act.
6        (8) Failing, within 30 days after requested, to
7    provide information in response to a written request made
8    by the Department.
9        (9) Engaging in dishonorable, unethical, or
10    unprofessional conduct of a character likely to deceive,
11    defraud, or harm the public.
12        (10) Discipline by another state, District of
13    Columbia, territory, or foreign nation, if at least one of
14    the grounds for the discipline is the same or
15    substantially equivalent to those set forth in this
16    Section.
17        (11) A finding by the Department that the registrant,
18    after having the registrant's his or her registration
19    placed on probationary status, has violated the terms of
20    probation.
21        (12) Willfully making or filing false records or
22    reports in the registrant's his or her practice,
23    including, but not limited to, false records filed with
24    State agencies or departments.
25        (13) Filing false statements for collection of fees
26    for which services are not rendered.

 

 

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1        (14) Practicing under a false or, except as provided
2    by law, an assumed name.
3        (15) Fraud or misrepresentation in applying for, or
4    procuring, a registration under this Act or in connection
5    with applying for renewal of a registration under this
6    Act.
7        (16) Being adjudicated liable in a civil proceeding
8    for violation of a state or federal fair housing law.
9        (17) Failure to obtain or maintain the bond required
10    under Section 50 of this Act.
11        (18) Failure to pay appraiser panel fees or appraisal
12    management company national registry fees.
13        (19) Violating the terms of any order issued by the
14    Department.
15    (b) The Department may refuse to issue or may suspend
16without hearing as provided for in the Civil Administrative
17Code of Illinois the registration of any person who fails to
18file a return, or to pay the tax, penalty, or interest shown in
19a filed return, or to pay any final assessment of the tax,
20penalty, or interest as required by any tax Act administered
21by the Illinois Department of Revenue, until such time as the
22requirements of any such tax Act are satisfied.
23    (c) An appraisal management company shall not be
24registered or included on the national registry if the
25company, in whole or in part, directly or indirectly, is owned
26by a person who has had an appraiser license or certificate

 

 

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1refused, denied, canceled, surrendered in lieu of revocation,
2or revoked under the Real Estate Appraiser Licensing Act of
32002 or the rules adopted under that Act, or similar
4discipline by another state, the District of Columbia, a
5territory, a foreign nation, a governmental agency, or an
6entity authorized to impose discipline if at least one of the
7grounds for that discipline is the same as or the equivalent of
8one of the grounds for which a licensee may be disciplined as
9set forth under this Section.
10(Source: P.A. 100-604, eff. 7-13-18; 101-81, eff. 7-12-19.)
 
11    (225 ILCS 459/75)
12    Sec. 75. Investigations; notice and hearing. The
13Department may investigate the actions of any person who is an
14applicant or of any person or persons rendering or offering to
15render any services requiring registration under this Act or
16any person holding or claiming to hold a registration as an
17appraisal management company. The Department shall, before
18revoking, suspending, placing on probation, reprimanding, or
19taking any other disciplinary or non-disciplinary action under
20Section 65 of this Act, at least 30 days before the date set
21for the hearing, (i) notify the person charged accused in
22writing of the charges made and the time and place for the
23hearing on the charges, (ii) direct the person him or her to
24file a written answer to the charges with the Department under
25oath within 20 days after the service on him or her of the

 

 

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1notice, and (iii) inform the person accused that, if the
2person he or she fails to answer, default will be entered taken
3against him or her or that the person's his or her registration
4may be suspended, revoked, placed on probationary status, or
5other disciplinary action taken with regard to the
6registration, including limiting the scope, nature, or extent
7of the person's his or her practice, as the Department may
8consider proper. At the time and place fixed in the notice, the
9Department shall proceed to hear the charges and the parties
10or their counsel shall be accorded ample opportunity to
11present any pertinent statements, testimony, evidence, and
12arguments. The Department may continue the hearing from time
13to time. In case the person, after receiving the notice, fails
14to file an answer, the person's his or her registration may, in
15the discretion of the Department, be suspended, revoked,
16placed on probationary status, or the Department may take
17whatever disciplinary action considered proper, including
18limiting the scope, nature, or extent of the person's practice
19or the imposition of a fine, without a hearing, if the act or
20acts charged constitute sufficient grounds for that action
21under this Act. The written notice may be served by personal
22delivery or by certified mail or electronic mail to the last
23address of record or email address of record as provided to
24specified by the accused in his or her last notification with
25the Department or, if in the course of the administrative
26proceeding the party has previously designated a specific

 

 

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1email address at which to accept electronic service for that
2specific proceeding, by sending a copy by email to the party's
3email address on record.
4(Source: P.A. 97-602, eff. 8-26-11.)
 
5    (225 ILCS 459/95)
6    Sec. 95. Findings and recommendations. At the conclusion
7of the hearing, the designated hearing officer shall present
8to the Secretary a written report of his or her findings of
9fact, conclusions of law, and recommendations. The report
10shall contain a finding whether or not the accused person
11charged violated this Act or its rules or failed to comply with
12the conditions required in this Act or its rules. The hearing
13officer shall specify the nature of any violations or failure
14to comply and shall make his or her recommendations to the
15Secretary. In making recommendations for any disciplinary
16actions, the hearing officer may take into consideration all
17facts and circumstances bearing upon the reasonableness of the
18conduct of the person charged accused and the potential for
19future harm to the public, including, but not limited to,
20previous discipline of the accused by the Department, intent,
21degree of harm to the public and likelihood of harm in the
22future, any restitution made by the accused, and whether the
23incident or incidents contained in the complaint appear to be
24isolated or represent a continuing pattern of conduct. In
25making his or her recommendations for discipline, the hearing

 

 

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1officer shall endeavor to ensure that the severity of the
2discipline recommended is reasonably related to the severity
3of the violation. The report of findings of fact, conclusions
4of law, and recommendation of the hearing officer shall be the
5basis for the Department's order refusing to issue, restore,
6or renew a registration, or otherwise disciplining a person
7registrant. If the Secretary disagrees with the
8recommendations of the hearing officer, the Secretary may
9issue an order in contravention of the hearing officer
10recommendations. The finding is not admissible in evidence
11against the person in a criminal prosecution brought for a
12violation of this Act, but the hearing and finding are not a
13bar to a criminal prosecution brought for a violation of this
14Act.
15(Source: P.A. 97-602, eff. 8-26-11.)