Sen. Javier L. Cervantes

Filed: 3/3/2023

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1866

2    AMENDMENT NO. ______. Amend Senate Bill 1866 by replacing
3everything after the enacting clause with the following:
 
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9    (Section scheduled to be repealed on January 1, 2030)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.

 

 

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1    (b) All renewal applicants must provide proof as
2determined by the Department of having met the continuing
3education requirements by the deadline set forth by the
4Department by rule. At a minimum, the rules shall require an
5applicant for renewal licensure as an auctioneer to provide
6proof of the completion of at least 12 hours of continuing
7education during the pre-renewal period established by the
8Department for completion of continuing education from schools
9approved by the Department, as established by rule.
10    (c) The Department, in its discretion, may waive
11enforcement of the continuing education requirements of this
12Section and shall adopt rules defining the standards and
13criteria for such waiver.
14    (d) (Blank).
15    (e) 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    (f) 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. 102-970, eff. 5-27-22.)
 
2    (225 ILCS 407/10-40)
3    (Section scheduled to be repealed on January 1, 2030)
4    Sec. 10-40. Restoration.
5    (a) A licensee whose license has lapsed or expired shall
6have 2 years from the expiration date to restore licensure his
7or her license without examination. The expired licensee shall
8make application to the Department on forms provided by the
9Department, provide evidence of successful completion of 12
10hours of approved continuing education during the period of
11time the license had lapsed, and pay all fees and penalties as
12established by rule.
13    (b) Notwithstanding any other provisions of this Act to
14the contrary, any licensee whose license under this Act has
15expired is eligible to restore such license without paying any
16lapsed fees and penalties if the license expired while the
17licensee was:
18        (1) on active duty with the United States Army, United
19    States Marine Corps, United States Navy, United States Air
20    Force, United States Coast Guard, the State Militia called
21    into service or training;
22        (2) engaged in training or education under the
23    supervision of the United States prior to induction into
24    military service; or
25        (3) serving as an employee of the Department, while

 

 

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1    the employee was required to surrender the his or her
2    license due to a possible conflict of interest.
3    A licensee shall also be eligible to restore a license
4under paragraphs (1), (2), and (3) without completing the
5continuing education requirements for that licensure period.
6For this subsection for a period of 2 years following the
7termination of the service or education if the termination was
8by other than dishonorable discharge and the licensee
9furnishes the Department with an affidavit specifying that the
10licensee has been so engaged.
11    (c) At any time after the suspension, revocation,
12placement on probationary status, or other disciplinary action
13taken under this Act with reference to any license, the
14Department may restore the license to the licensee without
15examination upon the order of the Secretary, if the licensee
16submits a properly completed application, pays the appropriate
17fees, and otherwise complies with the conditions of the order.
18(Source: P.A. 101-345, eff. 8-9-19.)
 
19    (225 ILCS 407/10-50)
20    (Section scheduled to be repealed on January 1, 2030)
21    Sec. 10-50. Fees; disposition of funds.
22    (a) The Department shall establish by rule a schedule of
23fees for the administration and maintenance of this Act. Such
24fees shall be nonrefundable.
25    (b) Prior to July 1, 2023, all fees collected under this

 

 

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1Act shall be deposited into the General Professions Dedicated
2Fund and appropriated to the Department for the ordinary and
3contingent expenses of the Department in the administration of
4this Act. Beginning on July 1, 2023, all fees, fines,
5penalties, or other monies received or collected pursuant to
6this Act shall be deposited in the Division of Real Estate
7General Fund. On or after July 1, 2023, the balance of funds
8collected pursuant to this Act that is in the General
9Professions Dedicated Fund shall be transferred into the
10Division of Real Estate General Fund.
11(Source: P.A. 102-970, eff. 5-27-22.)
 
12    (225 ILCS 407/20-15)
13    (Section scheduled to be repealed on January 1, 2030)
14    Sec. 20-15. Disciplinary actions; grounds. The Department
15may refuse to issue or renew a license, may place on probation
16or administrative supervision, suspend, or revoke any license
17or may reprimand or take other disciplinary or
18non-disciplinary action as the Department may deem proper,
19including the imposition of fines not to exceed $10,000 for
20each violation upon any licensee or applicant anyone licensed
21under this Act or any person or entity who holds oneself out as
22an applicant or licensee for any of the following reasons:
23        (1) False or fraudulent representation or material
24    misstatement in furnishing information to the Department
25    in obtaining or seeking to obtain a license.

 

 

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1        (2) Violation of any provision of this Act or the
2    rules adopted under this Act.
3        (3) Conviction of or entry of a plea of guilty or nolo
4    contendere, as set forth in subsection (c) of Section
5    10-5, to any crime that is a felony or misdemeanor under
6    the laws of the United States or any state or territory
7    thereof, or entry of an administrative sanction by a
8    government agency in this State or any other jurisdiction.
9        (3.5) Failing to notify the Department, within 30 days
10    after the occurrence, of the information required in
11    subsection (c) of Section 10-5.
12        (4) Being adjudged to be a person under legal
13    disability or subject to involuntary admission or to meet
14    the standard for judicial admission as provided in the
15    Mental Health and Developmental Disabilities Code.
16        (5) Discipline of a licensee by another state, the
17    District of Columbia, a territory of the United States, a
18    foreign nation, a governmental agency, or any other entity
19    authorized to impose discipline if at least one of the
20    grounds for that discipline is the same as or the
21    equivalent to one of the grounds for discipline set forth
22    in this Act or for failing to report to the Department,
23    within 30 days, any adverse final action taken against the
24    licensee by any other licensing jurisdiction, government
25    agency, law enforcement agency, or court, or liability for
26    conduct that would constitute grounds for action as set

 

 

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1    forth in this Act.
2        (6) Engaging in the practice of auctioneering,
3    conducting an auction, or providing an auction service
4    without a license or after the license was expired,
5    revoked, suspended, or terminated or while the license was
6    inoperative.
7        (7) Attempting to subvert or cheat on the auctioneer
8    exam or any continuing education exam, or aiding or
9    abetting another to do the same.
10        (8) Directly or indirectly giving to or receiving from
11    a person, firm, corporation, partnership, or association a
12    fee, commission, rebate, or other form of compensation for
13    professional service not actually or personally rendered,
14    except that an auctioneer licensed under this Act may
15    receive a fee from another licensed auctioneer from this
16    State or jurisdiction for the referring of a client or
17    prospect for auction services to the licensed auctioneer.
18        (9) Making any substantial misrepresentation or
19    untruthful advertising.
20        (10) Making any false promises of a character likely
21    to influence, persuade, or induce.
22        (11) Pursuing a continued and flagrant course of
23    misrepresentation or the making of false promises through
24    a licensee, agent, employee, advertising, or otherwise.
25        (12) Any misleading or untruthful advertising, or
26    using any trade name or insignia of membership in any

 

 

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1    auctioneer association or organization of which the
2    licensee is not a member.
3        (13) Commingling funds of others with the licensee's
4    own funds or failing to keep the funds of others in an
5    escrow or trustee account.
6        (14) Failure to account for, remit, or return any
7    moneys, property, or documents coming into the licensee's
8    possession that belong to others, acquired through the
9    practice of auctioneering, conducting an auction, or
10    providing an auction service within 30 days of the written
11    request from the owner of said moneys, property, or
12    documents.
13        (15) Failure to maintain and deposit into a special
14    account, separate and apart from any personal or other
15    business accounts, all moneys belonging to others
16    entrusted to a licensee while acting as an auctioneer,
17    auction firm, or as a temporary custodian of the funds of
18    others.
19        (16) Failure to make available to Department personnel
20    during normal business hours all escrow and trustee
21    records and related documents maintained in connection
22    with the practice of auctioneering, conducting an auction,
23    or providing an auction service within 24 hours after a
24    request from Department personnel.
25        (17) Making or filing false records or reports in the
26    licensee's practice, including, but not limited to, false

 

 

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1    records or reports filed with State agencies.
2        (18) Failing to voluntarily furnish copies of all
3    written instruments prepared by the auctioneer and signed
4    by all parties to all parties at the time of execution.
5        (19) Failing to provide information within 30 days in
6    response to a written request made by the Department.
7        (20) Engaging in any act that constitutes a violation
8    of Section 2-102, 3-103, or 3-105 of the Illinois Human
9    Rights Act.
10        (21) (Blank).
11        (22) Engaging in dishonorable, unethical, or
12    unprofessional conduct of a character likely to deceive,
13    defraud, or harm the public.
14        (23) Offering or advertising real estate for sale or
15    lease at auction without a valid broker or managing
16    broker's license under the Real Estate License Act of
17    1983, or any successor Act, unless exempt from licensure
18    under the terms of the Real Estate License Act of 2000, or
19    any successor Act, except as provided in Section 5-32 of
20    the Real Estate License Act of 2000.
21        (24) Inability to practice the profession with
22    reasonable judgment, skill, or safety as a result of a
23    physical illness, mental illness, or disability.
24        (25) A pattern of practice or other behavior that
25    demonstrates incapacity or incompetence to practice under
26    this Act.

 

 

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1        (26) Being named as a perpetrator in an indicated
2    report by the Department of Children and Family Services
3    under the Abused and Neglected Child Reporting Act and
4    upon proof by clear and convincing evidence that the
5    licensee has caused a child to be an abused child or a
6    neglected child as defined in the Abused and Neglected
7    Child Reporting Act.
8        (27) Inability to practice with reasonable judgment,
9    skill, or safety as a result of habitual or excessive use
10    or addiction to alcohol, narcotics, stimulants, or any
11    other chemical agent or drug.
12        (28) Willfully failing to report an instance of
13    suspected child abuse or neglect as required by the Abused
14    and Neglected Child Reporting Act.
15        (29) Violating the terms of any order issued by the
16    Department.
17(Source: P.A. 101-345, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
18    (225 ILCS 407/20-43)
19    (Section scheduled to be repealed on January 1, 2030)
20    Sec. 20-43. Investigations; notice and hearing. The
21Department may investigate the actions or qualifications of
22any person who is an applicant, unlicensed person, or person
23rendering or offering to render auction services, or holding
24or claiming to hold a license as a licensed auctioneer. At
25least 30 days before any disciplinary hearing under this Act,

 

 

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1the Department shall: (i) notify the person charged accused in
2writing of the charges made and the time and place of the
3hearing; (ii) direct the person accused to file with the Board
4a written answer under oath to the charges within 20 days of
5receiving service of the notice; and (iii) inform the person
6accused that if the person he or she fails to file an answer to
7the charges within 20 days of receiving service of the notice,
8a default judgment may be entered and the against him or her,
9or his or her license may be suspended, revoked, placed on
10probationary status, or other disciplinary action taken with
11regard to the license as the Department may consider proper,
12including, but not limited to, limiting the scope, nature, or
13extent of the licensee's practice, or imposing a fine.
14    At the time and place of the hearing fixed in the notice,
15the Board shall proceed to hear the charges, and the person
16accused or person's his or her counsel shall be accorded ample
17opportunity to present any pertinent statements, testimony,
18evidence, and arguments in the person's his or her defense.
19The Board may continue the hearing when it deems it
20appropriate.
21    Notice of the hearing may be served by personal delivery,
22by certified mail, or, at the discretion of the Department, by
23an electronic means to the person's licensee's last known
24address or email address of record.
25(Source: P.A. 101-345, eff. 8-9-19.)
 

 

 

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1    (225 ILCS 407/20-50)
2    (Section scheduled to be repealed on January 1, 2030)
3    Sec. 20-50. Findings and recommendations. At the
4conclusion of the hearing, the Board shall present to the
5Secretary a written report of its findings of fact,
6conclusions of law, and recommendations. The report shall
7contain a finding whether or not the accused person charged
8violated this Act or any rules promulgated pursuant to this
9Act. The Board shall specify the nature of any violations and
10shall make its recommendations to the Secretary. In making
11recommendations for any disciplinary action, the Board may
12take into consideration all facts and circumstances bearing
13upon the reasonableness of the conduct of the person accused,
14including, but not limited to, previous discipline of the
15person accused by the Department, intent, degree of harm to
16the public and likelihood of future harm to the public, any
17restitution made by the person accused, and whether the
18incident or incidents contained in the complaint appear to be
19isolated or represent a continuing pattern of conduct. In
20making its recommendations for discipline, the Board shall
21endeavor to ensure that the severity of the discipline
22recommended is reasonably proportional to the severity of the
23violation.
24    The report of the Board's findings of fact, conclusions of
25law, and recommendations shall be the basis for the
26Department's decision to refuse to issue, restore, or renew a

 

 

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

 

 

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

 

 

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1of 2000.
2    (c) A person or entity seeking to be licensed as an auction
3school under this Act shall provide satisfactory evidence of
4the following:
5        (1) a sound financial base for establishing,
6    promoting, and delivering the necessary courses;
7        (2) a sufficient number of qualified instructors;
8        (3) adequate support personnel to assist with
9    administrative matters and technical assistance;
10        (4) a qualified school administrator, who is
11    responsible for the administration of the school, courses,
12    and the actions of the instructors;
13        (5) proof of good standing with the Secretary of State
14    and authority to conduct business in this State; and
15        (6) any other requirements provided by rule.
16    (d) All applicants for an auction schools license shall
17make initial application to the Department in a manner
18prescribed by the Department and pay the appropriate fee as
19provided by rule. In addition to any other information
20required to be contained in the application as prescribed by
21rule, every application for an original or renewed license
22shall include the applicant's Taxpayer Identification Number.
23The term, expiration date, and renewal of an auction schools
24license shall be established by rule.
25    (e) An auction school shall provide each successful course
26participant with a certificate of completion signed by the

 

 

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

 

 

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

 

 

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

 

 

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160, 85, 95, and 130 as follows:
 
2    (225 ILCS 427/25)
3    (Section scheduled to be repealed on January 1, 2027)
4    Sec. 25. Community Association Manager Licensing and
5Disciplinary Board.
6    (a) There is hereby created the Community Association
7Manager Licensing and Disciplinary Board, which shall consist
8of 7 members appointed by the Secretary. All members must be
9residents of the State and must have resided in the State for
10at least 5 years immediately preceding the date of
11appointment. Five members of the Board must be licensees under
12this Act. Two members of the Board shall be owners of, or hold
13a shareholder's interest in, a unit in a community association
14at the time of appointment who are not licensees under this Act
15and have no direct affiliation with the community
16association's community association manager. This Board shall
17act in an advisory capacity to the Department.
18    (b) The term of each member shall be for 4 years and until
19that member's successor is appointed. No member shall be
20reappointed to the Board for a term that would cause the
21member's cumulative service to the Board to exceed 12 10
22years. Appointments to fill vacancies shall be made by the
23Secretary for the unexpired portion of the term. The Secretary
24shall remove from the Board any member whose license has
25become void or has been revoked or suspended and may remove any

 

 

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

 

 

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

 

 

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1    (b) Any licensee who has an expired license may have the
2license restored by applying to the Department and filing
3proof acceptable to the Department of fitness to have the
4expired license restored, which may include sworn evidence
5certifying to active practice in another jurisdiction
6satisfactory to the Department, complying with any continuing
7education requirements, and paying the required restoration
8fee.
9    (c) Any person whose license expired while (i) in federal
10service on active duty with the Armed Forces of the United
11States or called into service or training with the State
12Militia, or (ii) in training or education under the
13supervision of the United States preliminary to induction into
14the military service, or (iii) serving as an employee of the
15Department may have the license renewed or restored without
16paying any lapsed renewal fees and without completing the
17continuing education requirements for that licensure period
18if, within 2 years after honorable termination of the service,
19training, or education, except under condition other than
20honorable, the licensee furnishes the Department with
21satisfactory evidence of engagement and that the service,
22training, or education has been so honorably terminated.
23    (d) A community association manager or community
24association management firm that 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

 

 

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

 

 

10300SB1866sam001- 24 -LRB103 26535 SPS 57815 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1by any tax Act administered by the Department of Revenue,
2until such time as the requirements of that tax Act are
3satisfied.
4    (e) In accordance with subdivision (a)(5) of Section
52105-15 of the Department of Professional Regulation Law of
6the Civil Administrative Code of Illinois (20 ILCS
72105/2105-15) and in cases where the Department of Healthcare
8and Family Services (formerly Department of Public Aid) has
9previously determined that a licensee or a potential licensee
10is more than 30 days delinquent in the payment of child support
11and has subsequently certified the delinquency to the
12Department, the Department may refuse to issue or renew or may
13revoke or suspend that person's license or may take other
14disciplinary action against that person based solely upon the
15certification of delinquency made by the Department of
16Healthcare and Family Services.
17    (f) (Blank).
18(Source: P.A. 102-20, eff. 1-1-22.)
 
19    (225 ILCS 427/95)
20    (Section scheduled to be repealed on January 1, 2027)
21    Sec. 95. Investigation; notice and hearing. The
22Department may investigate the actions or qualifications of a
23person, which includes an entity, or other business applying
24for, holding or claiming to hold, or holding oneself out as
25having a license or rendering or offering to render services

 

 

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

 

 

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

 

 

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1    (225 ILCS 427/130)
2    (Section scheduled to be repealed on January 1, 2027)
3    Sec. 130. Restoration of suspended or revoked license. At
4any time after the successful completion of a term of
5suspension, or revocation, or probation of a license, the
6Department may restore it to the licensee, upon the written
7recommendation of the Board, unless after an investigation and
8a hearing the Board determines that restoration is not in the
9public interest.
10(Source: P.A. 96-726, eff. 7-1-10.)
 
11    Section 15. The Home Inspector License Act is amended by
12changing Sections 5-10, 5-14, 5-16, 5-17, 15-10, 15-11, 15-15,
13and 25-27 as follows:
 
14    (225 ILCS 441/5-10)
15    (Section scheduled to be repealed on January 1, 2027)
16    Sec. 5-10. Application for home inspector license.
17    (a) Every natural person who desires to obtain a home
18inspector license shall:
19        (1) apply to the Department in a manner prescribed by
20    the Department and accompanied by the required fee; all
21    applications shall contain the information that, in the
22    judgment of the Department, enables the Department to pass
23    on the qualifications of the applicant for a license to

 

 

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

 

 

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

 

 

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

 

 

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1within 90 days preceding the expiration date by:
2        (1) completing and submitting to the Department a
3    renewal application in a manner prescribed by the
4    Department;
5        (2) paying the required fees; and
6        (3) providing evidence of successful completion of the
7    continuing education requirements through courses approved
8    by the Department given by education providers licensed by
9    the Department, as established by rule.
10    (b) A home inspector whose license under this Act has
11expired may renew the license for a period of 2 years following
12the expiration date by complying with the requirements of
13subparagraphs (1), (2), and (3) of subsection (a) of this
14Section and paying any late penalties established by rule.
15    (c) Notwithstanding subsection (b), a home inspector whose
16license under this Act has expired may renew the license
17without paying any lapsed renewal fees or late penalties and
18without completing the continuing education requirements for
19that licensure period if (i) the license expired while the
20home inspector was (i) in federal service on active duty with
21the Armed Forces of the United States or called into service or
22training with the State Militia, (ii) in training or education
23under the supervision of the United States preliminary to
24induction into the military service, or (iii) serving as an
25employee of the Department and within 2 years after the
26termination of the service, training, or education, the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1with item (5) of subsection (a) of Section 2105-15 of the Civil
2Administrative Code of Illinois.
3    (g) The determination by a circuit court that a licensee
4is subject to involuntary admission or judicial admission, as
5provided in the Mental Health and Developmental Disabilities
6Code, operates as an automatic suspension. The suspension will
7end only upon a finding by a court that the patient is no
8longer subject to involuntary admission or judicial admission
9and the issuance of a court order so finding and discharging
10the patient.
11    (h) (Blank).
12(Source: P.A. 102-20, eff. 1-1-22.)
 
13    (225 ILCS 441/15-11)
14    (Section scheduled to be repealed on January 1, 2027)
15    Sec. 15-11. Illegal discrimination. When there has been an
16adjudication in a civil or criminal proceeding that a licensee
17has illegally discriminated while engaged in any activity for
18which a license is required under this Act, the Department,
19upon the determination by recommendation of the Secretary
20Board as to the extent of the suspension or revocation, shall
21suspend or revoke the license of that licensee in a timely
22manner, unless the adjudication is in the appeal process. When
23there has been an order in an administrative proceeding
24finding that a licensee has illegally discriminated while
25engaged in any activity for which a license is required under

 

 

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

 

 

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

 

 

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1rehearing. If the person orders from the reporting service and
2pays for a transcript of the record within the time for filing
3a motion for rehearing, then the 20-day period during which a
4motion may be filed shall commence upon the delivery of the
5transcript to the applicant or licensee. The Department may
6respond to the motion, or if a motion for rehearing is denied,
7then upon denial, the Secretary may enter an order in
8accordance with the recommendations of the hearing officer. A
9copy of the Department's final disciplinary order shall be
10delivered to the person and the person's managing home
11inspector, if any. If the applicant or licensee orders from
12the reporting service and pays for a transcript of the record
13within the time for filing a motion for rehearing, then the
1420-day period during which a motion may be filed shall
15commence upon the delivery of the transcript to the applicant
16or licensee.
17(Source: P.A. 102-20, eff. 1-1-22.)
 
18    (225 ILCS 441/25-27)
19    (Section scheduled to be repealed on January 1, 2027)
20    Sec. 25-27. Subpoenas; depositions; oaths.
21    (a) The Department may subpoena and bring before it any
22person to take oral or written testimony or compel the
23production of any books, papers, records, or any other
24documents the Secretary or the Secretary's designee deems
25relevant or material to any investigation or hearing conducted

 

 

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1by the Department with the same fees and in the same manner as
2prescribed in civil cases in the courts of this State.
3    (b) Any circuit court, upon the application of the
4licensee or the Department, may order the attendance and
5testimony of witnesses and the production of relevant
6documents, files, records, books, and papers in connection
7with any hearing or investigation. The circuit court may
8compel obedience to its order by proceedings for contempt.
9    (c) The Secretary or the Secretary's designee, the hearing
10officer, any member of the Board, or a certified shorthand
11court reporter may administer oaths at any hearing the
12Department conducts. Notwithstanding any other statute or
13Department rule to the contrary, all requests for testimony,
14production of documents, or records shall be in accordance
15with this Act.
16(Source: P.A. 102-20, eff. 1-1-22.)
 
17    Section 20. The Real Estate License Act of 2000 is amended
18by changing Sections 1-10, 5-6, 5-10, 5-20, 5-29, 5-50, 5-60,
195-75, 10-25, 10-30, 20-20, 20-20.1, 20-22, 20-23, 20-25,
2020-60, 20-69, 20-72, 25-10, and 25-25 and by adding Section
2120-21.1 as follows:
 
22    (225 ILCS 454/1-10)
23    (Section scheduled to be repealed on January 1, 2030)
24    Sec. 1-10. Definitions. In this Act, unless the context

 

 

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1otherwise requires:
2    "Act" means the Real Estate License Act of 2000.
3    "Address of record" means the designated address recorded
4by the Department in the applicant's or licensee's application
5file or license file as maintained by the Department.
6    "Agency" means a relationship in which a broker or
7licensee, whether directly or through an affiliated licensee,
8represents a consumer by the consumer's consent, whether
9express or implied, in a real property transaction.
10    "Applicant" means any person, as defined in this Section,
11who applies to the Department for a valid license as a managing
12broker, broker, or residential leasing agent.
13    "Blind advertisement" means any real estate advertisement
14that is used by a licensee regarding the sale or lease of real
15estate, licensed activities, or the hiring of any licensee
16under this Act that does not include the sponsoring broker's
17complete business name or, in the case of electronic
18advertisements, does not provide a direct link to a display
19with all the required disclosures. The broker's business name
20in the case of a franchise shall include the franchise
21affiliation as well as the name of the individual firm.
22    "Board" means the Real Estate Administration and
23Disciplinary Board of the Department as created by Section
2425-10 of this Act.
25    "Broker" means an individual, entity, corporation, foreign
26or domestic partnership, limited liability company, registered

 

 

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

 

 

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

 

 

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

 

 

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1broker, as defined in this Section, shall not be considered a
2comparative market analysis if no compensation is paid to the
3broker or managing broker, other than compensation based upon
4the sale or rental of real estate. A comparative market
5analysis shall not be considered an appraisal within the
6meaning of the Real Estate Appraiser Licensing Act of 2002,
7any amendment to that Act, or any successor Act.
8    "Compensation" means the valuable consideration given by
9one person or entity to another person or entity in exchange
10for the performance of some activity or service. Compensation
11shall include the transfer of valuable consideration,
12including without limitation the following:
13        (1) commissions;
14        (2) referral fees;
15        (3) bonuses;
16        (4) prizes;
17        (5) merchandise;
18        (6) finder fees;
19        (7) performance of services;
20        (8) coupons or gift certificates;
21        (9) discounts;
22        (10) rebates;
23        (11) a chance to win a raffle, drawing, lottery, or
24    similar game of chance not prohibited by any other law or
25    statute;
26        (12) retainer fee; or

 

 

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

 

 

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

 

 

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

 

 

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1meets the requirements of Section 15-75 of this Act.
2    "Inactive" means a status of licensure where the licensee
3holds a current license under this Act, but the licensee is
4prohibited from engaging in licensed activities because the
5licensee is unsponsored or the license of the sponsoring
6broker with whom the licensee is associated or by whom the
7licensee is employed is currently expired, revoked, suspended,
8or otherwise rendered invalid under this Act. The license of
9any business entity that is not in good standing with the
10Illinois Secretary of State, or is not authorized to conduct
11business in Illinois, shall immediately become inactive and
12that entity shall be prohibited from engaging in any licensed
13activities.
14    "Leads" means the name or names of a potential buyer,
15seller, lessor, lessee, or client of a licensee.
16    "License" means the privilege conferred by the Department
17to a person that has fulfilled all requirements prerequisite
18to any type of licensure under this Act.
19    "Licensed activities" means those activities listed in the
20definition of "broker" under this Section.
21    "Licensee" means any person licensed under this Act.
22    "Listing presentation" means any communication, written or
23oral and by any means or media, between a managing broker or
24broker and a consumer in which the licensee is attempting to
25secure a brokerage agreement with the consumer to market the
26consumer's real estate for sale or lease.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1courses, instructors, and education providers, as well as
2education provider and instructor fees. The Department may
3establish continuing education requirements for residential
4licensed leasing agents, by rule, consistent with the language
5and intent of this Act, with the advice of the Board.
6    (d) The continuing education requirement for residential
7leasing agents shall consist of a single core curriculum to be
8prescribed by the Department as recommended by the Board.
9Leasing agents shall be required to complete no less than 8
10hours of continuing education in the core curriculum during
11the current term of the license. The curriculum shall, at a
12minimum, consist of a single course or courses on the subjects
13of fair housing and human rights issues related to residential
14leasing, advertising and marketing issues, leases,
15applications, credit reports, and criminal history, the
16handling of funds, owner-tenant relationships and owner-tenant
17laws, and environmental issues relating to residential real
18estate.
19(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22;
20102-1100, eff. 1-1-23; revised 12-14-22.)
 
21    (225 ILCS 454/5-20)
22    (Section scheduled to be repealed on January 1, 2030)
23    Sec. 5-20. Exemptions from managing broker, broker, or
24residential leasing agent license requirement; Department
25exemption from education provider and related licenses. The

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    year or a person who participates in an online marketplace
2    enabling persons to rent out all or part of the person's
3    owned residence.
4        (16) Notwithstanding any provisions to the contrary,
5    the Department and its employees shall be exempt from
6    education, course provider, instructor, and course license
7    requirements and fees while acting in an official capacity
8    on behalf of the Department. Courses offered by the
9    Department shall be eligible for continuing education
10    credit.
11(Source: P.A. 100-534, eff. 9-22-17; 100-831, eff. 1-1-19;
12101-357, eff. 8-9-19.)
 
13    (225 ILCS 454/5-29)
14    (Section scheduled to be repealed on January 1, 2030)
15    Sec. 5-29. Temporary practice as a designated managing
16broker. Upon the loss of a designated managing broker who is
17not replaced by the sponsoring broker or in the event of the
18death or adjudicated disability of a self-sponsored managing
19broker the sole proprietor of an office, a written request for
20authorization allowing the continued operation of the office
21may be submitted to the Department within 15 days of the loss.
22The Department may issue a written authorization allowing the
23continued operation, provided that a licensed managing broker
24or, in the case of the death or adjudicated disability of a
25self-sponsored managing broker sole proprietor, the

 

 

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1representative of the estate, assumes responsibility, in
2writing, for the operation of the office and agrees to
3personally supervise the operation of the office. No such
4written authorization shall be valid for more than 60 days
5unless extended by the Department for good cause shown and
6upon written request by the broker or representative.
7(Source: P.A. 101-357, eff. 8-9-19.)
 
8    (225 ILCS 454/5-50)
9    (Section scheduled to be repealed on January 1, 2030)
10    Sec. 5-50. Expiration and renewal of managing broker,
11broker, or residential leasing agent license; sponsoring
12broker; register of licensees.
13    (a) The expiration date and renewal period for each
14license issued under this Act shall be set by rule. Except as
15otherwise provided in this Section, the holder of a license
16may renew the license within 90 days preceding the expiration
17date thereof by completing the continuing education required
18by this Act and paying the fees specified by rule.
19    (b) An individual whose first license is that of a broker
20received on or after the effective date of this amendatory Act
21of the 101st General Assembly, must provide evidence of having
22completed 45 hours of post-license education presented in a
23classroom or a live, interactive webinar, or online distance
24education course, and which shall require passage of a final
25examination.

 

 

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

 

 

10300SB1866sam001- 76 -LRB103 26535 SPS 57815 a

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

 

 

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

 

 

10300SB1866sam001- 78 -LRB103 26535 SPS 57815 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    tenant by the entirety, or (iii) holds a 100% beneficial
2    interest in a land trust. Sponsored or inactive licensees
3    selling or leasing "By Owner" shall comply with the
4    following if advertising by owner:
5            (A) On "By Owner" yard signs, the sponsored or
6        inactive licensee shall indicate "broker owned" or
7        "agent owned." "By Owner" advertisements used in any
8        medium of advertising shall include the term "broker
9        owned" or "agent owned."
10            (B) If a sponsored or inactive licensee runs
11        advertisements, for the purpose of purchasing or
12        leasing real estate, the licensee he or she shall
13        disclose in the advertisements the licensee's his or
14        her status as a licensee.
15            (C) A sponsored or inactive licensee shall not use
16        the sponsoring broker's name or the sponsoring
17        broker's company name in connection with the sale,
18        lease, or advertisement of the property nor utilize
19        the sponsoring broker's or company's name in
20        connection with the sale, lease, or advertising of the
21        property in a manner likely to create confusion among
22        the public as to whether or not the services of a real
23        estate company are being utilized or whether or not a
24        real estate company has an ownership interest in the
25        property.
26    (d) A sponsored licensee may not advertise under the

 

 

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

 

 

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

 

 

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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) The licensee's conviction of or plea of guilty or
5    plea of nolo contendere, as set forth in subsection (e) of
6    Section 5-25, to: (A) a felony or misdemeanor in this
7    State or any other jurisdiction; (B) the entry of an
8    administrative sanction by a government agency in this
9    State or any other jurisdiction; or (C) any crime that
10    subjects the licensee to compliance with the requirements
11    of the Sex Offender Registration Act.
12        (3) Inability to practice the profession with
13    reasonable judgment, skill, or safety as a result of a
14    physical illness, mental illness, or disability.
15        (4) Practice under this Act as a licensee in a retail
16    sales establishment from an office, desk, or space that is
17    not separated from the main retail business and located
18    within a separate and distinct area within the
19    establishment.
20        (5) 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 that discipline is the same as
24    or the 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        (6) Engaging in the practice of real estate brokerage
3    without a license or after the licensee's license or
4    temporary permit was expired or while the license was
5    inactive, revoked, or suspended.
6        (7) Cheating on or attempting to subvert the Real
7    Estate License Exam or a continuing education course or
8    examination.
9        (8) Aiding or abetting an applicant to subvert or
10    cheat on the Real Estate License Exam or continuing
11    education exam administered pursuant to this Act.
12        (9) Advertising that is inaccurate, misleading, or
13    contrary to the provisions of the Act.
14        (10) Making any substantial misrepresentation or
15    untruthful advertising.
16        (11) Making any false promises of a character likely
17    to influence, persuade, or induce.
18        (12) Pursuing a continued and flagrant course of
19    misrepresentation or the making of false promises through
20    licensees, employees, agents, advertising, or otherwise.
21        (13) Any misleading or untruthful advertising, or
22    using any trade name or insignia of membership in any real
23    estate organization of which the licensee is not a member.
24        (14) Acting for more than one party in a transaction
25    without providing written notice to all parties for whom
26    the licensee acts.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        (39) Requiring a party to a transaction who is not a
2    client of the licensee to allow the licensee to retain a
3    portion of the escrow moneys for payment of the licensee's
4    commission or expenses as a condition for release of the
5    escrow moneys to that party.
6        (40) Disregarding or violating any provision of this
7    Act or the published rules adopted by the Department to
8    enforce this Act or aiding or abetting any individual,
9    foreign or domestic partnership, registered limited
10    liability partnership, limited liability company,
11    corporation, or other business entity in disregarding any
12    provision of this Act or the published rules adopted by
13    the Department to enforce this Act.
14        (41) Failing to provide the minimum services required
15    by Section 15-75 of this Act when acting under an
16    exclusive brokerage agreement.
17        (42) Habitual or excessive use of or addiction to
18    alcohol, narcotics, stimulants, or any other chemical
19    agent or drug that results in a managing broker, broker,
20    or residential leasing agent's inability to practice with
21    reasonable skill or safety.
22        (43) Enabling, aiding, or abetting an auctioneer, as
23    defined in the Auction License Act, to conduct a real
24    estate auction in a manner that is in violation of this
25    Act.
26        (44) Permitting any residential leasing agent or

 

 

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1    temporary residential leasing agent permit holder to
2    engage in activities that require a broker's or managing
3    broker's license.
4        (45) Failing to notify the Department, within 30 days
5    after the occurrence, of the information required in
6    subsection (e) of Section 5-25.
7        (46) A designated managing broker's failure to provide
8    an appropriate written company policy or failure to
9    perform any of the duties set forth in Section 10-55.
10        (47) Filing liens or recording written instruments in
11    any county in the State on noncommercial, residential real
12    property that relate to a broker's compensation for
13    licensed activity under the Act.
14    (b) The Department may refuse to issue or renew or may
15suspend the license of any person who fails to file a return,
16pay the tax, penalty or interest shown in a filed return, or
17pay any final assessment of tax, penalty, or interest, as
18required by any tax Act administered by the Department of
19Revenue, until such time as the requirements of that tax Act
20are satisfied in accordance with subsection (g) of Section
212105-15 of the Department of Professional Regulation Law of
22the Civil Administrative Code of Illinois.
23    (c) (Blank).
24    (d) In cases where the Department of Healthcare and Family
25Services (formerly Department of Public Aid) has previously
26determined that a licensee or a potential licensee is more

 

 

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1than 30 days delinquent in the payment of child support and has
2subsequently certified the delinquency to the Department may
3refuse to issue or renew or may revoke or suspend that person's
4license or may take other disciplinary action against that
5person based solely upon the certification of delinquency made
6by the Department of Healthcare and Family Services in
7accordance with item (5) of subsection (a) of Section 2105-15
8of the Department of Professional Regulation Law of the Civil
9Administrative Code of Illinois.
10    (e) (Blank).
11(Source: P.A. 101-81, eff. 7-12-19; 101-357, eff. 8-9-19;
12102-970, eff. 5-27-22.)
 
13    (225 ILCS 454/20-20.1)
14    (Section scheduled to be repealed on January 1, 2030)
15    Sec. 20-20.1. Citations.
16    (a) The Department may adopt rules to permit the issuance
17of citations to any licensee for failure to comply with the
18continuing education and post-license education requirements
19set forth in this Act or as adopted by rule. The citation shall
20be issued to the licensee, and a copy shall be sent to the
21licensee's designated managing broker and sponsoring broker.
22The citation shall contain the licensee's name and address,
23the licensee's license number, the number of required hours of
24continuing education or post-license education that have not
25been successfully completed by the licensee's renewal

 

 

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1deadline, and the penalty imposed, which shall not exceed
2$2,000. The issuance of any such citation shall not excuse the
3licensee from completing all continuing education or
4post-license education required for that term of licensure.
5    (b) Service of a citation shall be made by in person,
6electronically, or by mail to the licensee at the licensee's
7address of record or email address of record, and must clearly
8state that if the cited licensee wishes to dispute the
9citation, the cited licensee may make a written request,
10within 30 days after the citation is served, for a hearing
11before the Department. If the cited licensee does not request
12a hearing within 30 days after the citation is served, then the
13citation shall become a final, non-disciplinary order, and any
14fine imposed is due and payable within 60 days after that final
15order. If the cited licensee requests a hearing within 30 days
16after the citation is served, the Department shall afford the
17cited licensee a hearing conducted in the same manner as a
18hearing provided for in this Act for any violation of this Act
19and shall determine whether the cited licensee committed the
20violation as charged and whether the fine as levied is
21warranted. If the violation is found, any fine shall
22constitute non-public discipline and be due and payable within
2330 days after the order of the Secretary, which shall
24constitute a final order of the Department. No change in
25license status may be made by the Department until such time as
26a final order of the Department has been issued.

 

 

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

 

 

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

 

 

10300SB1866sam001- 101 -LRB103 26535 SPS 57815 a

1leasing agent without being issued a valid active license is
2guilty of a Class A misdemeanor and, on conviction of a second
3or subsequent offense, the violator shall be guilty of a Class
44 felony.
5(Source: P.A. 101-357, eff. 8-9-19.)
 
6    (225 ILCS 454/20-23)
7    (Section scheduled to be repealed on January 1, 2030)
8    Sec. 20-23. Confidentiality. All information collected by
9the Department in the course of an examination or
10investigation of a licensee or applicant, including, but not
11limited to, any complaint against a licensee, applicant, or
12any person who holds oneself himself or herself out as a
13licensee or applicant that is filed with the Department and
14information collected to investigate any such complaint, shall
15be maintained for the confidential use of the Department and
16shall not be disclosed. The Department may not disclose the
17information to anyone other than law enforcement officials,
18regulatory agencies that have an appropriate regulatory
19interest as determined by the Secretary, or a party presenting
20a lawful subpoena to the Department. Information and documents
21disclosed to a federal, State, county, or local law
22enforcement agency shall not be disclosed by the agency for
23any purpose to any other agency or person. A formal complaint
24filed against a licensee by the Department or any order issued
25by the Department against a licensee or applicant shall be a

 

 

10300SB1866sam001- 102 -LRB103 26535 SPS 57815 a

1public record, except as otherwise prohibited by law.
2(Source: P.A. 98-553, eff. 1-1-14.)
 
3    (225 ILCS 454/20-25)
4    (Section scheduled to be repealed on January 1, 2030)
5    Sec. 20-25. Returned checks and dishonored credit card
6charges; fees. Any person who (1) delivers a check or other
7payment to the Department that is returned to the Department
8unpaid by the financial institution upon which it is drawn
9shall pay to the Department; or (2) presents a credit or debit
10card for payment that is invalid or expired or against which
11charges by the Department are declined or dishonored, in
12addition to the amount already owed to the Department, a fee of
13$50. The Department shall notify the person that payment of
14fees and fines shall be paid to the Department by certified
15check or money order within 30 calendar days of the
16notification. If, after the expiration of 30 days from the
17date of the notification, the person has failed to submit the
18necessary remittance, the Department shall automatically
19revoke the license or deny the application, without hearing.
20If, after revocation or denial, the person seeks a license,
21the person he or she shall apply to the Department for
22restoration or issuance of the license and pay all fees and
23fines due to the Department. The Department may establish a
24fee for the processing of an application for restoration of a
25license to pay all expenses of processing this application.

 

 

10300SB1866sam001- 103 -LRB103 26535 SPS 57815 a

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

 

 

10300SB1866sam001- 104 -LRB103 26535 SPS 57815 a

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

 

 

10300SB1866sam001- 105 -LRB103 26535 SPS 57815 a

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

 

 

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1    (225 ILCS 454/25-10)
2    (Section scheduled to be repealed on January 1, 2030)
3    Sec. 25-10. Real Estate Administration and Disciplinary
4Board; duties. There is created the Real Estate Administration
5and Disciplinary Board. The Board shall be composed of 15
6persons appointed by the Governor. Members shall be appointed
7to the Board subject to the following conditions:
8        (1) All members shall have been residents and citizens
9    of this State for at least 6 years prior to the date of
10    appointment.
11        (2) Twelve members shall have been actively engaged as
12    managing brokers or brokers or both for at least the 10
13    years prior to the appointment, 2 of whom must possess an
14    active pre-license instructor license.
15        (3) Three members of the Board shall be public members
16    who represent consumer interests.
17    None of these members shall be (i) a person who is licensed
18under this Act or a similar Act of another jurisdiction, (ii)
19the spouse or immediate family member of a licensee, or (iii) a
20person who has an ownership interest in a real estate
21brokerage business.
22    The members' terms shall be for 4 years and until a
23successor is appointed. No member shall be reappointed to the
24Board for a term that would cause the member's cumulative
25service to the Board to exceed 12 10 years. Appointments to
26fill vacancies shall be for the unexpired portion of the term.

 

 

10300SB1866sam001- 107 -LRB103 26535 SPS 57815 a

1Those members of the Board that satisfy the requirements of
2paragraph (2) shall be chosen in a manner such that no area of
3the State shall be unreasonably represented. In making the
4appointments, the Governor shall give due consideration to the
5recommendations by members and organizations of the
6profession. The Governor may terminate the appointment of any
7member for cause that in the opinion of the Governor
8reasonably justifies the termination. Cause for termination
9shall include without limitation misconduct, incapacity,
10neglect of duty, or missing 4 board meetings during any one
11fiscal year. Each member of the Board may receive a per diem
12stipend in an amount to be determined by the Secretary. While
13engaged in the performance of duties, each member shall be
14reimbursed for necessary expenses. Such compensation and
15expenses shall be paid out of the Real Estate License
16Administration Fund. The Secretary shall consider the
17recommendations of the Board on questions involving standards
18of professional conduct, discipline, education, and policies
19and procedures under this Act. With regard to this subject
20matter, the Secretary may establish temporary or permanent
21committees of the Board and may consider the recommendations
22of the Board on matters that include, but are not limited to,
23criteria for the licensing and renewal of education providers,
24pre-license and continuing education instructors, pre-license
25and continuing education curricula, standards of educational
26criteria, and qualifications for licensure and renewal of

 

 

10300SB1866sam001- 108 -LRB103 26535 SPS 57815 a

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

 

 

10300SB1866sam001- 109 -LRB103 26535 SPS 57815 a

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

 

 

10300SB1866sam001- 110 -LRB103 26535 SPS 57815 a

1deposited in the Real Estate Research and Education Fund and
2may be used for the same purposes as moneys transferred to the
3Real Estate Research and Education Fund. Moneys in the Real
4Estate Research and Education Fund may be transferred to the
5Professions Indirect Cost Fund as authorized under Section
62105-300 of the Department of Professional Regulation Law of
7the Civil Administrative Code of Illinois.
8(Source: P.A. 101-357, eff. 8-9-19.)
 
9    (225 ILCS 454/25-21 rep.)
10    Section 25. The Real Estate License Act of 2000 is amended
11by repealing Section 25-21.
 
12    Section 30. The Real Estate Appraiser Licensing Act of
132002 is amended by changing Sections 1-10, 5-25, 10-5, 10-10,
1415-10, 15-15, and 25-10 as follows:
 
15    (225 ILCS 458/1-10)
16    (Section scheduled to be repealed on January 1, 2027)
17    Sec. 1-10. Definitions. As used in this Act, unless the
18context otherwise requires:
19    "Accredited college or university, junior college, or
20community college" means a college or university, junior
21college, or community college that is approved or accredited
22by the Board of Higher Education, a regional or national
23accreditation association, or by an accrediting agency that is

 

 

10300SB1866sam001- 111 -LRB103 26535 SPS 57815 a

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

 

 

10300SB1866sam001- 112 -LRB103 26535 SPS 57815 a

1credit transactions incorporated into securitizations); and
2(3) any appraisal management company that, within a given
312-month period, oversees an appraiser panel of 16 or more
4State-certified appraisers in Illinois or 25 or more
5State-certified or State-licensed appraisers in 2 or more
6jurisdictions. "Appraisal management company" includes a
7hybrid entity.
8    "Appraisal practice" means valuation services performed by
9an individual acting as an appraiser, including, but not
10limited to, appraisal or appraisal review.
11    "Appraisal qualification board (AQB)" means the
12independent board of the Appraisal Foundation, which, under
13the provisions of Title XI of the Financial Institutions
14Reform, Recovery, and Enforcement Act of 1989, establishes the
15minimum education, experience, and examination requirements
16for real property appraisers to obtain a state certification
17or license.
18    "Appraisal report" means any communication, written or
19oral, of an appraisal or appraisal review that is transmitted
20to a client upon completion of an assignment.
21    "Appraisal review" means the act or process of developing
22and communicating an opinion about the quality of another
23appraiser's work that was performed as part of an appraisal,
24appraisal review, or appraisal assignment.
25    "Appraisal Subcommittee" means the Appraisal Subcommittee
26of the Federal Financial Institutions Examination Council as

 

 

10300SB1866sam001- 113 -LRB103 26535 SPS 57815 a

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

 

 

10300SB1866sam001- 114 -LRB103 26535 SPS 57815 a

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

 

 

10300SB1866sam001- 115 -LRB103 26535 SPS 57815 a

1broker, as defined in this Section, shall not be considered a
2comparative market analysis if no compensation is paid to the
3broker or managing broker, other than compensation based upon
4the sale or rental of real estate.
5    "Coordinator" means the Real Estate Appraisal Coordinator
6created in Section 25-15.
7    "Department" means the Department of Financial and
8Professional Regulation.
9    "Email address of record" means the designated email
10address recorded by the Department in the applicant's
11application file or the licensee's license file maintained by
12the Department.
13    "Evaluation" means a valuation permitted by the appraisal
14regulations of the Federal Financial Institutions Examination
15Council and its federal agencies for transactions that qualify
16for the appraisal threshold exemption, business loan
17exemption, or subsequent transaction exemption.
18    "Federal financial institutions regulatory agencies" means
19the Board of Governors of the Federal Reserve System, the
20Federal Deposit Insurance Corporation, the Office of the
21Comptroller of the Currency, the Consumer Financial Protection
22Bureau, and the National Credit Union Administration.
23    "Federally related transaction" means any real
24estate-related financial transaction in which a federal
25financial institutions regulatory agency engages in, contracts
26for, or regulates and requires the services of an appraiser.

 

 

10300SB1866sam001- 116 -LRB103 26535 SPS 57815 a

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

 

 

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

 

 

10300SB1866sam001- 118 -LRB103 26535 SPS 57815 a

1holds a valid license under this Act as either a State
2certified general real estate appraiser or a State certified
3residential real estate appraiser, who co-signs an appraisal
4report for an associate real estate trainee appraiser or (ii)
5a State certified general real estate appraiser who holds a
6valid license under this Act who co-signs an appraisal report
7for a State certified residential real estate appraiser on
8properties other than one to 4 units of residential real
9property without regard to transaction value or complexity.
10    "Title XI" means Title XI of the federal Financial
11Institutions Reform, Recovery, and Enforcement Act of 1989.
12    "USPAP" means the Uniform Standards of Professional
13Appraisal Practice as promulgated by the Appraisal Standards
14Board pursuant to Title XI and by rule.
15    "Valuation services" means services pertaining to aspects
16of property value.
17(Source: P.A. 102-20, eff. 1-1-22; 102-687, eff. 12-17-21;
18102-970, eff. 5-27-22.)
 
19    (225 ILCS 458/5-25)
20    (Section scheduled to be repealed on January 1, 2027)
21    Sec. 5-25. Renewal of license.
22    (a) The expiration date and renewal period for a State
23certified general real estate appraiser license or a State
24certified residential real estate appraiser license issued
25under this Act shall be set by rule. Except as otherwise

 

 

10300SB1866sam001- 119 -LRB103 26535 SPS 57815 a

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

 

 

10300SB1866sam001- 120 -LRB103 26535 SPS 57815 a

1associate real estate trainee appraiser license may renew the
2license within 90 days preceding the expiration date by:
3        (1) completing and submitting to the Department, or
4    through a multi-state licensing system as designated by
5    the Secretary, a renewal application form as provided by
6    the Department;
7        (2) paying the required fees; and
8        (3) providing evidence to the Department, or through a
9    multi-state licensing system as designated by the
10    Secretary, of successful completion of the continuing
11    education requirements through courses approved by the
12    Department from education providers approved by the
13    Department, as established by rule.
14    (e) Any associate real estate trainee 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 (d) of this Section and paying any late penalties
19as established by rule.
20    (f) Notwithstanding subsections (c) and (e), an appraiser
21whose license under this Act has expired may renew or convert
22the license without paying any lapsed renewal fees or late
23penalties if the license expired while the appraiser was:
24        (1) on active duty with the United States Armed
25    Services;
26        (2) serving as the Coordinator or an employee of the

 

 

10300SB1866sam001- 121 -LRB103 26535 SPS 57815 a

1    Department who was required to surrender the license
2    during the term of employment.
3    Application for renewal must be made within 2 years
4following the termination of the military service or related
5education, training, or employment and shall include an
6affidavit from the licensee of engagement.
7    (g) The Department shall provide reasonable care and due
8diligence to ensure that each licensee under this Act is
9provided with a renewal application at least 90 days prior to
10the expiration date, but timely renewal or conversion of the
11license prior to its expiration date is the responsibility of
12the licensee.
13    (h) The Department shall not issue or renew a license if
14the applicant or licensee has an unpaid fine or fee from a
15disciplinary matter or from a non-disciplinary action imposed
16by the Department until the fine or fee is paid to the
17Department or the applicant or licensee has entered into a
18payment plan and is current on the required payments.
19    (i) The Department shall not issue or renew a license if
20the applicant or licensee has an unpaid fine or civil penalty
21imposed by the Department for unlicensed practice until the
22fine or civil penalty is paid to the Department or the
23applicant or licensee has entered into a payment plan and is
24current on the required payments.
25(Source: P.A. 101-81, eff. 7-12-19; 102-20, eff. 1-1-22;
26102-970, eff. 5-27-22.)
 

 

 

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1    (225 ILCS 458/10-5)
2    (Section scheduled to be repealed on January 1, 2027)
3    Sec. 10-5. Scope of practice.
4    (a) This Act does not limit a State certified general real
5estate appraiser's scope of practice in a federally related
6transaction. A State certified general real estate appraiser
7may independently provide appraisal services, review, or
8consult related to any type of property for which there is
9related experience or competency by the appraiser. All such
10appraisal practice must be made in accordance with the
11provisions of USPAP, criteria established by the AQB, and
12rules adopted pursuant to this Act.
13    (b) A State certified residential real estate appraiser is
14limited in scope of practice to the provisions of USPAP,
15criteria established by the AQB, and the rules adopted
16pursuant to this Act.
17    (c) A State certified residential real estate appraiser
18must have a State certified general real estate appraiser who
19holds a valid license under this Act co-sign all appraisal
20reports on properties other than one to 4 units of residential
21real property without regard to transaction value or
22complexity.
23    (d) An associate real estate trainee appraiser is limited
24in scope of practice in all transactions or appraisal reports
25in accordance with the provisions of USPAP, this Act, and the

 

 

10300SB1866sam001- 123 -LRB103 26535 SPS 57815 a

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

 

 

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

 

 

10300SB1866sam001- 125 -LRB103 26535 SPS 57815 a

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

 

 

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

 

 

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1    race, color, religion, sex, national origin, ancestry,
2    age, marital status, family status, physical or mental
3    disability, sexual orientation, pregnancy, order of
4    protection status, military status, or unfavorable
5    military discharge, source of income, or any other
6    protected class as defined under the Illinois Human Rights
7    Act, of the prospective or present owners or occupants of
8    the area or property under appraisal.
9        (13) Violating the confidential nature of government
10    records to which the licensee gained access through
11    employment or engagement as an appraiser by a government
12    agency.
13        (14) Being adjudicated liable in a civil proceeding on
14    grounds of fraud, misrepresentation, or deceit. In a
15    disciplinary proceeding based upon a finding of civil
16    liability, the appraiser shall be afforded an opportunity
17    to present mitigating and extenuating circumstances, but
18    may not collaterally attack the civil adjudication.
19        (15) Being adjudicated liable in a civil proceeding
20    for violation of a state or federal fair housing law.
21        (16) Engaging in misleading or untruthful advertising
22    or using a trade name or insignia of membership in a real
23    estate appraisal or real estate organization of which the
24    licensee is not a member.
25        (17) Failing to fully cooperate with a Department
26    investigation 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        (18) Failing to include within the certificate of
6    appraisal for all written appraisal reports the
7    appraiser's license number and licensure title. All
8    appraisers providing significant contribution to the
9    development and reporting of an appraisal must be
10    disclosed in the appraisal report. It is a violation of
11    this Act for an appraiser to sign a report, transmittal
12    letter, or appraisal certification knowing that a person
13    providing a significant contribution to the report has not
14    been disclosed in the appraisal report.
15        (19) Violating the terms of a disciplinary order or
16    consent to administrative supervision order.
17        (20) Habitual or excessive use or addiction to
18    alcohol, narcotics, stimulants, or any other chemical
19    agent or drug that results in a licensee's inability to
20    practice with reasonable judgment, skill, or safety.
21        (21) A physical or mental illness or disability which
22    results in the inability to practice under this Act with
23    reasonable judgment, skill, or safety.
24        (22) Gross negligence in developing an appraisal or in
25    communicating an appraisal or failing to observe one or
26    more of the Uniform Standards of Professional Appraisal

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10300SB1866sam001- 139 -LRB103 26535 SPS 57815 a

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

 

 

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

 

 

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1(Source: P.A. 102-20, eff. 1-1-22; 102-970, eff. 5-27-22.)
 
2    Section 35. The Appraisal Management Company Registration
3Act is amended by changing Sections 65, 75, and 95 as follows:
 
4    (225 ILCS 459/65)
5    Sec. 65. Disciplinary actions.
6    (a) The Department may refuse to issue or renew, or may
7revoke, suspend, place on probation, reprimand, or take other
8disciplinary or non-disciplinary action as the Department may
9deem appropriate, including imposing fines not to exceed
10$25,000 for each violation upon any registrant or applicant
11under this Act or entity who holds oneself or itself out as an
12applicant or registrant , with regard to any registration for
13any one or combination of the following:
14        (1) Material misstatement in furnishing information to
15    the Department.
16        (2) Violations of this Act, or of the rules adopted
17    under this Act.
18        (3) Conviction of, or entry of a plea of guilty or nolo
19    contendere to any crime that is a felony under the laws of
20    the United States or any state or territory thereof or
21    that is a misdemeanor of which an essential element is
22    dishonesty, or any crime that is directly related to the
23    practice of the profession.
24        (4) Making any misrepresentation for the purpose of

 

 

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

 

 

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

 

 

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1company, in whole or in part, directly or indirectly, is owned
2by a person who has had an appraiser license or certificate
3refused, denied, canceled, surrendered in lieu of revocation,
4or revoked under the Real Estate Appraiser Licensing Act of
52002 or the rules adopted under that Act, or similar
6discipline by another state, the District of Columbia, a
7territory, a foreign nation, a governmental agency, or an
8entity authorized to impose discipline if at least one of the
9grounds for that discipline is the same as or the equivalent of
10one of the grounds for which a licensee may be disciplined as
11set forth under this Section.
12(Source: P.A. 100-604, eff. 7-13-18; 101-81, eff. 7-12-19.)
 
13    (225 ILCS 459/75)
14    Sec. 75. Investigations; notice and hearing. The
15Department may investigate the actions of any person who is an
16applicant or of any person or persons rendering or offering to
17render any services requiring registration under this Act or
18any person holding or claiming to hold a registration as an
19appraisal management company. The Department shall, before
20revoking, suspending, placing on probation, reprimanding, or
21taking any other disciplinary or non-disciplinary action under
22Section 65 of this Act, at least 30 days before the date set
23for the hearing, (i) notify the person charged accused in
24writing of the charges made and the time and place for the
25hearing on the charges, (ii) direct the person him or her to

 

 

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

 

 

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

 

 

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