Full Text of HB2956 97th General Assembly
HB2956ham001 97TH GENERAL ASSEMBLY | Rep. Angelo Saviano Filed: 3/15/2011
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| 1 | | AMENDMENT TO HOUSE BILL 2956
| 2 | | AMENDMENT NO. ______. Amend House Bill 2956 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Appraisal Management Company Registration Act.
| 6 | | Section 5. Findings. The General Assembly finds that: It | 7 | | is the intent of the General Assembly that this Act provide for | 8 | | the regulation of those persons or entities engaged as | 9 | | appraisal management companies for the protection of the public | 10 | | and for the maintenance of high standards of professional | 11 | | conduct by those registered as appraisal management companies | 12 | | and to ensure appraisal independence in the determination of | 13 | | real estate valuations. | 14 | | Section 10. Definitions. In this Act: | 15 | | "Address of record" means the designated address recorded |
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| 1 | | by the Department in the applicant's or registrant's | 2 | | application file or registration file maintained by the | 3 | | Department's registration maintenance unit. It is the duty of | 4 | | the applicant or registrant to inform the Department of any | 5 | | change of address, and the changes must be made either through | 6 | | the Department's website or by contacting the Department's | 7 | | registration maintenance unit within a prescribed time period | 8 | | as defined by rule. | 9 | | "Applicant" means a person or entity who applies to the | 10 | | Department for a registration under this Act. | 11 | | "Appraisal" means (noun) the act or process of developing | 12 | | an opinion of value; an opinion of value (adjective) of or | 13 | | pertaining to appraising and related functions. | 14 | | "Appraisal firm" means an appraisal entity that is 100% | 15 | | owned and controlled by a person or persons licensed in | 16 | | Illinois as a certified general real estate appraiser or a | 17 | | certified residential real estate appraiser. An appraisal firm | 18 | | does not include an appraisal management company. | 19 | | "Appraisal management company" means any corporation, | 20 | | limited liability company, partnership, sole proprietorship, | 21 | | subsidiary, unit, or other business entity that directly or | 22 | | indirectly performs the following appraisal management | 23 | | services: (1) administers networks of independent contractors | 24 | | or employee appraisers to perform real estate appraisal | 25 | | assignments for clients; (2) receives requests for real estate | 26 | | appraisal services from clients and, for a fee paid by the |
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| 1 | | client, enters into an agreement with one or more independent | 2 | | appraisers to perform the real estate appraisal services | 3 | | contained in the request; or (3) otherwise serves as a | 4 | | third-party broker of appraisal management services between | 5 | | clients and appraisers. | 6 | | "Appraisal report" means a written appraisal by an | 7 | | appraiser to a client. | 8 | | "Appraisal practice service" means valuation services | 9 | | performed by an individual acting as an appraiser, including, | 10 | | but not limited to, appraisal, appraisal review, or appraisal | 11 | | consulting. | 12 | | "Appraiser" means a person who performs real estate or real | 13 | | property appraisals. | 14 | | "Assignment result" means an appraiser's opinions and | 15 | | conclusions developed specific to an assignment. | 16 | | "Board" means the Real Estate Appraisal Administration and | 17 | | Disciplinary Board. | 18 | | "Client" means the party or parties who engage an appraiser | 19 | | by employment or contract in a specific appraisal assignment. | 20 | | "Controlling Person" means: | 21 | | (1) an owner, officer, or director of an entity seeking | 22 | | to offer appraisal management services; | 23 | | (2) an individual employed, appointed, or authorized | 24 | | by an appraisal management company who has the authority | 25 | | to: | 26 | | (A) enter into a contractual relationship with a |
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| 1 | | client for the performance of an appraisal management | 2 | | service or appraisal practice service; and | 3 | | (B) enter into an agreement with an appraiser for | 4 | | the performance of a real estate appraisal activity; or | 5 | | (3) an individual who possesses, directly or | 6 | | indirectly, the power to direct or cause the
direction of | 7 | | the management or policies of an appraisal management | 8 | | company.
| 9 | | "Coordinator" means the Coordinator of the Appraisal | 10 | | Management Company Registration Unit of the Department or his | 11 | | or her designee. | 12 | | "Department" means the Department of Financial and | 13 | | Professional Regulation. | 14 | | "Entity" means a corporation, a limited liability company, | 15 | | partnership, a sole proprietorship, or other entity providing | 16 | | services or holding itself out to provide services as an | 17 | | appraisal management company or an appraisal management | 18 | | service. | 19 | | "End-user client" means any person who utilizes or engages | 20 | | the services of an appraiser through an appraisal management | 21 | | company. | 22 | | "Financial institution" means any bank, savings bank, | 23 | | savings and loan association, credit union, mortgage broker, | 24 | | mortgage banker, registrant under the Consumer Installment | 25 | | Loan Act or the Sales Finance Agency Act, or a corporate | 26 | | fiduciary, subsidiary, affiliate, parent company, or holding |
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| 1 | | company of any registrant, or any institution involved in real | 2 | | estate financing that is regulated by State or federal law. | 3 | | "Person" means individuals, entities, sole | 4 | | proprietorships, corporations, limited liability companies, | 5 | | and partnerships, foreign or domestic, except that when the | 6 | | context otherwise requires, the term may refer to a single | 7 | | individual or other described entity.
| 8 | | "Quality control review" means a review of an appraisal | 9 | | report for compliance and completeness, including grammatical, | 10 | | typographical, or other similar errors, unrelated to | 11 | | developing an opinion of value. | 12 | | "Real estate" means an identified parcel or tract of land, | 13 | | including any improvements. | 14 | | "Real estate related financial transaction" means any | 15 | | transaction involving: | 16 | | (1) the sale, lease, purchase, investment in, or | 17 | | exchange of real property,
including interests in property | 18 | | or the financing thereof; | 19 | | (2) the refinancing of real property or interests in | 20 | | real property; and | 21 | | (3) the use of real property or interest in property as | 22 | | security for a loan or
investment, including mortgage | 23 | | backed securities. | 24 | | "Real property" means the interests, benefits, and rights | 25 | | inherent in the ownership of real estate. | 26 | | "Secretary" means the Secretary of Financial and |
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| 1 | | Professional Regulation. | 2 | | "USPAP" means the Uniform Standards of Professional | 3 | | Appraisal Practice as adopted by the Appraisal Standards Board | 4 | | under Title XI. | 5 | | "Valuation" means any estimate of the value of real | 6 | | property in connection with a creditor's decision to provide | 7 | | credit, including those values developed under a policy of a | 8 | | government sponsored enterprise or by an automated valuation | 9 | | model, a broker price opinion, or other methodology or | 10 | | mechanism. | 11 | | Section 15. Exemptions. Nothing in this Act shall to apply | 12 | | to any of the following: | 13 | | (1) an agency of the federal, State, county, or | 14 | | municipal government or an officer or employee of a | 15 | | government agency, or person, described in this Section | 16 | | when acting within the scope of employment of the officer | 17 | | or employee; | 18 | | (2) a corporate relocation company whereby the | 19 | | appraisal is not used for mortgage purposes and the end | 20 | | user client is an employer company; | 21 | | (3) any person licensed in this State under any other | 22 | | Act while engaged in the activities or practice for which | 23 | | he or she is licensed; | 24 | | (4) any person licensed to practice law in this State | 25 | | who is working with or on behalf of a client of that person |
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| 1 | | in connection with one or more appraisals for that client; | 2 | | or | 3 | | (5) an appraiser that enters into an agreement, whether | 4 | | written or otherwise, with another appraiser for the | 5 | | performance of an appraisal, and upon the completion of the | 6 | | appraisal, the report of the appraiser performing the | 7 | | appraisal is signed by both the appraiser who completed the | 8 | | appraisal and the appraiser who requested the completion of | 9 | | the appraisal, except that an appraisal management company | 10 | | may not avoid the requirement of registration under this | 11 | | Act by requiring an employee of the appraisal management | 12 | | company who is an appraiser to sign an appraisal that was | 13 | | completed by another appraiser who is part of the appraisal | 14 | | panel of the appraisal management company. | 15 | | In the event that the Final Interim Rule of the federal | 16 | | Dodd-Frank Wall Street Reform and Consumer Protection Act | 17 | | provides that an appraisal management company is a subsidiary | 18 | | owned and controlled by a financial institution regulated by a | 19 | | federal financial institution's regulatory agency and is | 20 | | exempt from State appraisal management company registration | 21 | | requirements, the Department, shall, by rule, provide for the | 22 | | implementation of such an exemption. | 23 | | Section 20. Restrictions and limitations. Beginning | 24 | | January 1, 2012, it is unlawful for a person or entity to act | 25 | | or assume to act as an appraisal management company as defined |
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| 1 | | in this Act, to engage in the business of appraisal management | 2 | | service, or to advertise or hold himself or herself out to be a | 3 | | registered appraisal management company without first | 4 | | obtaining a registration issued by the Department under this | 5 | | Act. A person or entity that violates this Section is guilty of | 6 | | a Class A misdemeanor for the first offense and a Class 4 | 7 | | felony for second and subsequent offenses. | 8 | | Persons practicing as an appraisal management company in | 9 | | Illinois as of the effective date of this Act may continue to | 10 | | practice as provided in this Act until the Department has | 11 | | adopted rules implementing this Act. To continue practicing as | 12 | | an appraisal management company after the adoption of rules, | 13 | | persons shall apply for registration within 180 days after the | 14 | | effective date of the rules. If an application is received | 15 | | during the 180-day period, the person may continue to practice | 16 | | until the Department acts to grant or deny registration. If an | 17 | | application is not filed within the 180-day period, the person | 18 | | must cease the practice at the conclusion of the 180-day period | 19 | | and until the Department acts to grant a registration to the | 20 | | person. | 21 | | Section 25. Powers and duties of the Department. Subject | 22 | | to the provisions of this Act: | 23 | | (1) The Department may ascertain the qualifications | 24 | | and fitness of applicants for registration and pass upon | 25 | | the qualifications of applicants for registration. |
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| 1 | | (2) The Department may conduct hearings on proceedings | 2 | | to refuse to issue or renew or to revoke registrations or | 3 | | suspend, place on probation, or reprimand persons or | 4 | | otherwise discipline individuals or entities subject to | 5 | | this Act. | 6 | | (3) The Department may formulate all rules required for | 7 | | the administration of this Act. With the exception of | 8 | | emergency rules, any proposed rules, amendments, second | 9 | | notice materials, and adopted rule or amendment materials | 10 | | or policy statements concerning appraisal management | 11 | | companies shall be presented to the Real Estate Appraisal | 12 | | Administration and Disciplinary Board for review and | 13 | | comment. The recommendations of the Board shall be | 14 | | presented to the Secretary for consideration in making | 15 | | final decisions. | 16 | | (4) The Department may maintain rosters of the names | 17 | | and addresses of all registrants, and all persons whose | 18 | | registrations have been suspended, revoked, or denied | 19 | | renewal for cause within the previous calendar year or | 20 | | otherwise disciplined. These rosters shall be available | 21 | | upon written request and payment of the required fee as | 22 | | established by rule. | 23 | | Section 30. Coordinator of Appraisal Management Company | 24 | | Registration. The Coordinator of Real Estate Appraisal shall | 25 | | serve as the Coordinator of Appraisal Management Company |
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| 1 | | Registration. The Coordinator shall have the same duties and | 2 | | responsibilities in regards to appraisal management company | 3 | | registration as the Coordinator has in regards to appraisal | 4 | | licensure as set forth in the Real Estate Appraiser Licensing | 5 | | Act of 2002. | 6 | | Section 35. Application for original registration. | 7 | | Applications for original registration shall be made to the | 8 | | Department on forms prescribed by the Department and | 9 | | accompanied by the required fee. All applications shall contain | 10 | | the information that, in the judgment of the Department, will | 11 | | enable the Department to pass on the qualifications of the | 12 | | applicant to be registered to practice as set by rule. | 13 | | Section 40. Qualifications for registration. | 14 | | (a) The Department may issue a certification of | 15 | | registration to practice under this Act to any applicant who | 16 | | applies to the Department on forms provided by the Department, | 17 | | pays the required non-refundable fee, and who provides the | 18 | | following: | 19 | | (1) the business name of the applicant seeking | 20 | | registration; | 21 | | (2) the business address or addresses and contact | 22 | | information of the applicant seeking registration; | 23 | | (3) if the business applicant is not a corporation that | 24 | | is domiciled in this State, then the name and contact |
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| 1 | | information for the company's agent for service of process | 2 | | in this State; | 3 | | (4) the name, address, and contact information for any | 4 | | individual or any corporation, partnership, limited | 5 | | liability company, association, or other business | 6 | | applicant that owns 10% or more of the appraisal management | 7 | | company; | 8 | | (5) the name, address, and contact information for a | 9 | | designated controlling person; | 10 | | (6) a certification that the applicant will utilize | 11 | | Illinois licensed appraisers to provide appraisal services | 12 | | within the State of Illinois; | 13 | | (7) a certification that the applicant has a system in | 14 | | place utilizing a licensed Illinois appraiser to review the | 15 | | work of all employed and independent appraisers that are | 16 | | performing real estate appraisal services in Illinois for | 17 | | the appraisal management company on a periodic basis, | 18 | | except for a quality control review, to verify that the | 19 | | real estate appraisal assignments are being conducted in | 20 | | accordance with USPAP; | 21 | | (8) a certification that the applicant maintains a | 22 | | detailed record of each service request that it receives | 23 | | and the independent appraiser that performs the real estate | 24 | | appraisal services for the appraisal management company; | 25 | | (9) a certification that the employees of the appraisal | 26 | | management company working on behalf of the appraisal |
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| 1 | | management company directly involved in providing | 2 | | appraisal management services, will be appropriately | 3 | | trained and familiar with the appraisal process to | 4 | | completely provide appraisal management services;
| 5 | | (10) an irrevocable Uniform Consent to Service of | 6 | | Process, under rule; and | 7 | | (11) a certification that the applicant shall comply | 8 | | with all other requirements of this Act and rules | 9 | | established for the implementation of this Act. | 10 | | (b) Applicants have 3 years from the date of application to | 11 | | complete the application process. If the process has not been | 12 | | completed in 3 years, the application shall be denied, the fee | 13 | | shall be forfeited, and the applicant must reapply and meet the | 14 | | requirements in effect at the time of reapplication. | 15 | | Section 45. Expiration and renewal of registration. The | 16 | | expiration date and renewal period for each registration shall | 17 | | be set by rule. A registrant whose registration has expired may | 18 | | reinstate his or her registration at any time within 5 years | 19 | | after the expiration thereof, by making a renewal application | 20 | | and by paying the required fee. | 21 | | Any registrant whose registration has expired for more than | 22 | | 5 years may have it restored by making application to the | 23 | | Department, paying the required fee, and filing acceptable | 24 | | proof of fitness to have the registration restored as set by | 25 | | rule. |
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| 1 | | Section 50. Bonds of registrants. All registrants shall | 2 | | maintain a bond in accordance with this Section. Each bond | 3 | | shall be for the recovery of expenses, fines, or fees due to or | 4 | | levied by the Department in accordance with this Act. The bond | 5 | | shall be payable when the registrant fails to comply with any | 6 | | provisions of this Act and shall be in the form of a surety | 7 | | bond in the amount of $25,000 as prescribed by the Department | 8 | | by rule. The bond shall be payable to the Department and shall | 9 | | be issued by an insurance company authorized to do business in | 10 | | this State. A copy of the bond, including any and all riders | 11 | | and endorsements executed subsequent to the effective date of | 12 | | the bond, shall be placed on file with the Department within 10 | 13 | | days of the execution thereof. The bond may only be used for | 14 | | the recovery of expenses or the collection of fines or fees due | 15 | | to or levied by the Department and is not to be utilized for | 16 | | any other purpose. | 17 | | Section 55. Fees. | 18 | | (a) The fees for the administration and enforcement of this | 19 | | Act, including, but not limited to, original registration, | 20 | | renewal, and restoration fees, shall be set by the Department | 21 | | by rule. The fees shall not be refundable. | 22 | | (b) All fees and other moneys collected under this Act | 23 | | shall be deposited in the Appraisal Administration Fund. |
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| 1 | | Section 60. Returned checks; fines. Any person who | 2 | | delivers a check or other payment to the Department that is | 3 | | returned to the Department unpaid by the financial institution | 4 | | upon which it is drawn shall pay to the Department, in addition | 5 | | to the amount already owed to the Department, a fine of $50. | 6 | | The fines imposed by this Section are in addition to any other | 7 | | discipline provided under this Act for unregistered practice or | 8 | | practice on a nonrenewed registration. The Department shall | 9 | | notify the person that payment of fees and fines shall be paid | 10 | | to the Department by certified check or money order within 30 | 11 | | calendar days of the notification. If, after the expiration of | 12 | | 30 days after the date of the notification, the person has | 13 | | failed to submit the necessary remittance, the Department shall | 14 | | automatically terminate the registration or deny the | 15 | | application, without hearing. If, after termination or denial, | 16 | | the person seeks a registration, he or she shall apply to the | 17 | | Department for restoration or issuance of the registration and | 18 | | pay all fees and fines due to the Department. The Department | 19 | | may establish a fee for the processing of an application for | 20 | | restoration of a registration to pay all expenses of processing | 21 | | this application. The Secretary may waive the fines due under | 22 | | this Section in individual cases where the Secretary finds that | 23 | | the fines would be unreasonable or unnecessarily burdensome.
| 24 | | Section 65. Disciplinary actions. | 25 | | (a) The Department may refuse to issue or renew, or may |
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| 1 | | revoke, suspend, place on probation, reprimand, or take other | 2 | | disciplinary or non-disciplinary action as the Department may | 3 | | deem appropriate, including imposing fines not to exceed | 4 | | $25,000 for each violation, with regard to any registration for | 5 | | any one or combination of the following: | 6 | | (1) Material misstatement in furnishing information to | 7 | | the Department. | 8 | | (2) Violations of this Act, or of the rules adopted | 9 | | under this Act. | 10 | | (3) Conviction of, or entry of a plea of guilty or nolo | 11 | | contendere to any crime that is a felony under the laws of | 12 | | the United States or any state or territory thereof or that | 13 | | is a misdemeanor of which an essential element is | 14 | | dishonesty, or any crime that is directly related to the | 15 | | practice of the profession. | 16 | | (4) Making any misrepresentation for the purpose of | 17 | | obtaining registration or violating any provision of this | 18 | | Act or the rules adopted under this Act pertaining to | 19 | | advertising. | 20 | | (5) Professional incompetence. | 21 | | (6) Gross malpractice. | 22 | | (7) Aiding or assisting another person in violating any | 23 | | provision of this Act or rules adopted under this Act. | 24 | | (8) Failing, within 30 days after requested, to provide | 25 | | information in response to a written request made by the | 26 | | Department. |
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| 1 | | (9) Engaging in dishonorable, unethical, or | 2 | | unprofessional conduct of a character likely to deceive, | 3 | | defraud, or harm the public. | 4 | | (10) Discipline by another state, District of | 5 | | Columbia, territory, or foreign nation, if at least one of | 6 | | the grounds for the discipline is the same or substantially | 7 | | equivalent to those set forth in this Section. | 8 | | (11) A finding by the Department that the registrant, | 9 | | after having his or her registration placed on probationary | 10 | | status, has violated the terms of probation. | 11 | | (12) Willfully making or filing false records or | 12 | | reports in his or her practice, including, but not limited | 13 | | to, false records filed with State agencies or departments. | 14 | | (13) Filing false statements for collection of fees for | 15 | | which services are not rendered. | 16 | | (14) Practicing under a false or, except as provided by | 17 | | law, an assumed name. | 18 | | (15) Fraud or misrepresentation in applying for, or | 19 | | procuring, a registration under this Act or in connection | 20 | | with applying for renewal of a registration under this Act. | 21 | | (16) Being adjudicated liable in a civil proceeding for | 22 | | violation of a state or federal fair housing law. | 23 | | (17) Failure to obtain or maintain the bond required | 24 | | under Section 50 of this Act. | 25 | | (b) The Department may refuse to issue or may suspend | 26 | | without hearing as provided for in the Civil Administrative |
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| 1 | | Code the registration of any person who fails to file a return, | 2 | | or to pay the tax, penalty or interest shown in a filed return, | 3 | | or to pay any final assessment of the tax, penalty, or interest | 4 | | as required by any tax Act administered by the Illinois | 5 | | Department of Revenue, until such time as the requirements of | 6 | | any such tax Act are satisfied. | 7 | | Section 70. Injunctive action; cease and desist order. | 8 | | (a) If any person violates the provisions of this Act, the | 9 | | Secretary, in the name of the People of the State of Illinois, | 10 | | through the Attorney General or the State's Attorney of the | 11 | | county in which the violation is alleged to have occurred, may | 12 | | petition for an order enjoining the violation or for an order | 13 | | enforcing compliance with this Act. Upon the filing of a | 14 | | verified petition, the court with appropriate jurisdiction may | 15 | | issue a temporary restraining order, without notice or bond, | 16 | | and may preliminarily and permanently enjoin the violation. If | 17 | | it is established that the person has violated or is violating | 18 | | the injunction, the court may punish the offender for contempt | 19 | | of court. Proceedings under this Section are in addition to, | 20 | | and not in lieu of, all other remedies and penalties provided | 21 | | by this Act. | 22 | | (b) Whenever, in the opinion of the Department, a person | 23 | | violates any provision of this Act, the Department may issue a | 24 | | rule to show cause why an order to cease and desist should not | 25 | | be entered against that person. The rule shall clearly set |
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| 1 | | forth the grounds relied upon by the Department and shall allow | 2 | | at least 7 days from the date of the rule to file an answer | 3 | | satisfactory to the Department. Failure to answer to the | 4 | | satisfaction of the Department shall cause an order to cease | 5 | | and desist to be issued. | 6 | | Section 75. Investigations; notice and hearing. The | 7 | | Department may investigate the actions of any applicant or of | 8 | | any person or persons rendering or offering to render any | 9 | | services requiring registration under this Act or any person | 10 | | holding or claiming to hold a registration as an appraisal | 11 | | management company. The Department shall, before revoking, | 12 | | suspending, placing on probation, reprimanding, or taking any | 13 | | other disciplinary or non-disciplinary action under Section 65 | 14 | | of this Act, at least 30 days before the date set for the | 15 | | hearing, (i) notify the accused in writing of the charges made | 16 | | and the time and place for the hearing on the charges, (ii) | 17 | | direct him or her to file a written answer to the charges with | 18 | | the Department under oath within 20 days after the service on | 19 | | him or her of the notice, and (iii) inform the accused that, if | 20 | | he or she fails to answer, default will be taken against him or | 21 | | her or that his or her registration may be suspended, revoked, | 22 | | placed on probationary status, or other disciplinary action | 23 | | taken with regard to the registration, including limiting the | 24 | | scope, nature, or extent of his or her practice, as the | 25 | | Department may consider proper. At the time and place fixed in |
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| 1 | | the notice, the Department shall proceed to hear the charges | 2 | | and the parties or their counsel shall be accorded ample | 3 | | opportunity to present any pertinent statements, testimony, | 4 | | evidence, and arguments. The Department may continue the | 5 | | hearing from time to time. In case the person, after receiving | 6 | | the notice, fails to file an answer, his or her registration | 7 | | may, in the discretion of the Department, be suspended, | 8 | | revoked, placed on probationary status, or the Department may | 9 | | take whatever disciplinary action considered proper, including | 10 | | limiting the scope, nature, or extent of the person's practice | 11 | | or the imposition of a fine, without a hearing, if the act or | 12 | | acts charged constitute sufficient grounds for that action | 13 | | under this Act. The written notice may be served by personal | 14 | | delivery or by certified mail to the address specified by the | 15 | | accused in his or her last notification with the Department. | 16 | | Section 80. Record of proceedings; transcript. The | 17 | | Department, at its expense, shall preserve a record of all | 18 | | proceedings at the formal hearing of any case. The notice of | 19 | | hearing, complaint, all other documents in the nature of | 20 | | pleadings, written motions filed in the proceedings, the | 21 | | transcripts of testimony, the report of the hearing officer, | 22 | | and orders of the Department shall be in the record of the | 23 | | proceeding. The Department shall furnish a transcript of the | 24 | | record to any person interested in the hearing upon payment of | 25 | | the fee required under Section 2105-115 of the Department of |
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| 1 | | Professional Regulation Law. | 2 | | Section 85. Subpoenas; depositions; oaths. The Department | 3 | | has the power to subpoena documents, books, records, or other | 4 | | materials and to bring before it any person and to take | 5 | | testimony either orally or by deposition, or both, with the | 6 | | same fees and mileage and in the same manner as prescribed in | 7 | | civil cases in the courts of this State. | 8 | | The Secretary and the designated hearing officer have the | 9 | | power to administer oaths to witnesses at any hearing that the | 10 | | Department is authorized to conduct, and any other oaths | 11 | | authorized in any Act administered by the Department. | 12 | | Section 90. Compelling testimony. Any circuit court, upon | 13 | | application of the Department or designated hearing officer may | 14 | | enter an order requiring the attendance of witnesses and their | 15 | | testimony, and the production of documents, papers, files, | 16 | | books, and records in connection with any hearing or | 17 | | investigation. The court may compel obedience to its order by | 18 | | proceedings for contempt. | 19 | | Section 95. Findings and recommendations. At the | 20 | | conclusion of the hearing, the designated hearing officer shall | 21 | | present to the Secretary a written report of his or her | 22 | | findings of fact, conclusions of law, and recommendations. The | 23 | | report shall contain a finding whether or not the accused |
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| 1 | | person violated this Act or its rules or failed to comply with | 2 | | the conditions required in this Act or its rules. The hearing | 3 | | officer shall specify the nature of any violations or failure | 4 | | to comply and shall make his or her recommendations to the | 5 | | Secretary. In making recommendations for any disciplinary | 6 | | actions, the hearing officer may take into consideration all | 7 | | facts and circumstances bearing upon the reasonableness of the | 8 | | conduct of the accused and the potential for future harm to the | 9 | | public, including, but not limited to, previous discipline of | 10 | | the accused by the Department, intent, degree of harm to the | 11 | | public and likelihood of harm in the future, any restitution | 12 | | made by the accused, and whether the incident or incidents | 13 | | contained in the complaint appear to be isolated or represent a | 14 | | continuing pattern of conduct. In making his or her | 15 | | recommendations for discipline, the hearing officer shall | 16 | | endeavor to ensure that the severity of the discipline | 17 | | recommended is reasonably related to the severity of the | 18 | | violation.
The report of findings of fact, conclusions of law, | 19 | | and recommendation of the hearing officer shall be the basis | 20 | | for the Department's order refusing to issue, restore, or renew | 21 | | a registration, or otherwise disciplining a registrant. If the | 22 | | Secretary disagrees with the recommendations of the hearing | 23 | | officer, the Secretary may issue an order in contravention of | 24 | | the hearing officer recommendations. The finding is not | 25 | | admissible in evidence against the person in a criminal | 26 | | prosecution brought for a violation of this Act, but the |
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| 1 | | hearing and finding are not a bar to a criminal prosecution | 2 | | brought for a violation of this Act.
| 3 | | Section 100. Hearing officer; rehearing. At the conclusion | 4 | | of the hearing, a copy of the hearing officer's report shall be | 5 | | served upon the applicant or registrant by the Department, | 6 | | either personally or as provided in this Act for the service of | 7 | | a notice of hearing. Within 20 days after service, the | 8 | | applicant or registrant may present to the Department a motion | 9 | | in writing for a rehearing, which shall specify the particular | 10 | | grounds for rehearing. The Department may respond to the motion | 11 | | for rehearing within 20 days after its service on the | 12 | | Department. If no motion for rehearing is filed, then upon the | 13 | | expiration of the time specified for filing such a motion, or | 14 | | if a motion for rehearing is denied, then upon denial, the | 15 | | Secretary may enter an order in accordance with recommendations | 16 | | of the hearing officer except as provided in Sections 105 or | 17 | | 110 of this Act. If the applicant or registrant orders from the | 18 | | reporting service and pays for a transcript of the record | 19 | | within the time for filing a motion for rehearing, the 20-day | 20 | | period within which a motion may be filed shall commence upon | 21 | | the delivery of the transcript to the applicant or registrant. | 22 | | Section 105. Secretary; rehearing. Whenever the Secretary | 23 | | believes that substantial justice has not been done in the | 24 | | revocation, suspension, or refusal to issue, restore, or renew |
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| 1 | | a registration, or other discipline of an applicant or | 2 | | registrant, he or she may order a rehearing by the same or | 3 | | other hearing officers. | 4 | | Section 110. Appointment of a hearing officer. The | 5 | | Secretary has the authority to appoint any attorney licensed to | 6 | | practice law in the State to serve as the hearing officer in | 7 | | any action for refusal to issue, restore, or renew a | 8 | | registration or to discipline a registrant. The hearing officer | 9 | | has full authority to conduct the hearing. The hearing officer | 10 | | shall report his or her findings of fact, conclusions of law, | 11 | | and recommendations to the Secretary. If the Secretary | 12 | | disagrees with the recommendation of the hearing officer, the | 13 | | Secretary may issue an order in contravention of the | 14 | | recommendation. | 15 | | Section 115. Order or certified copy; prima facie proof. | 16 | | An order or certified copy thereof, over the seal of the | 17 | | Department and purporting to be signed by the Secretary, is | 18 | | prima facie proof that: | 19 | | (1) the signature is the genuine signature of the | 20 | | Secretary; and | 21 | | (2) the Secretary is duly appointed and qualified. | 22 | | Section 120. Restoration of suspended or revoked | 23 | | registration. At any time after the successful completion of a |
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| 1 | | term of suspension or revocation of a registration, the | 2 | | Department may restore it to the registrant, upon the written | 3 | | recommendation of the hearing officer, unless after an | 4 | | investigation and a hearing the Secretary determines that | 5 | | restoration is not in the public interest. | 6 | | Section 125. Surrender of registration. Upon the | 7 | | revocation or suspension of a registration, the registrant | 8 | | shall immediately surrender his or her registration to the | 9 | | Department. If the registrant fails to do so, the Department | 10 | | has the right to seize the registration. | 11 | | Section 130. Summary suspension of a registration. The | 12 | | Secretary may summarily suspend the registration of any | 13 | | registrant under this Act without a hearing, simultaneously | 14 | | with the institution of proceedings for a hearing provided for | 15 | | in Section 75 of this Act, if the Secretary finds that evidence | 16 | | in the Secretary's possession indicates that the continuation | 17 | | of practice by the registrant would constitute an imminent | 18 | | danger to the public. In the event that the Secretary summarily | 19 | | suspends the registration of a registrant under this Section | 20 | | without a hearing, a hearing must be commenced within 30 days | 21 | | after the suspension has occurred and concluded as | 22 | | expeditiously as practical.
| 23 | | Section 135. Administrative review; venue. |
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| 1 | | (a) All final administrative decisions of the Department | 2 | | are subject to judicial review under the Administrative Review | 3 | | Law and its rules. The term "administrative decision" is | 4 | | defined as in Section 3-101 of the Code of Civil Procedure. | 5 | | (b) Proceedings for judicial review shall be commenced in | 6 | | the circuit court of the county in which the party applying for | 7 | | review resides, but if the party is not a resident of Illinois, | 8 | | the venue shall be in Sangamon County.
| 9 | | Section 140. Certifications of record; costs. The | 10 | | Department shall not be required to certify any record to the | 11 | | court, to file an answer in court, or to otherwise appear in | 12 | | any court in a judicial review proceeding unless and until the | 13 | | Department has received from the plaintiff payment of the costs | 14 | | of furnishing and certifying the record, which costs shall be | 15 | | determined by the Department. Failure on the part of the | 16 | | plaintiff to file the receipt in court is grounds for dismissal | 17 | | of the action. | 18 | | Section 145. Violations. Any person who is found to have | 19 | | violated any provision of this Act is guilty of a Class A | 20 | | misdemeanor. On conviction of a second or subsequent offense, | 21 | | the violator is guilty of a Class 4 felony. | 22 | | Section 150. Civil penalties. | 23 | | (a) In addition to any other penalty provided by law, any |
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| 1 | | person who violates this Act shall forfeit and pay a civil | 2 | | penalty to the Department in an amount not to exceed $25,000 | 3 | | for each violation as determined by the Department. The civil | 4 | | penalty shall be assessed by the Department in accordance with | 5 | | the provisions of this Act.
| 6 | | (b) The Department has the authority and power to | 7 | | investigate any and all unregistered activity. | 8 | | (c) The civil penalty shall be paid within 60 days after | 9 | | the effective date of the order imposing the civil penalty. The | 10 | | order shall constitute a judgment and may be filed and | 11 | | execution had thereon in the same manner as any judgment from | 12 | | any court of record. | 13 | | (d) All moneys collected under this Section shall be | 14 | | deposited into the Appraisal Administration Fund. | 15 | | Section 155. Consent order. At any point in the | 16 | | proceedings as provided in this Act, both parties may agree to | 17 | | a negotiated consent order. The consent order shall be final | 18 | | upon signature of the Secretary. | 19 | | Section 160. Business practice provisions; standards of | 20 | | practice. | 21 | | (a) The Department may adopt by rule the Uniform Standards | 22 | | of Professional Appraisal Practice as published from time to | 23 | | time by the Appraisal Standards Board of the Appraisal | 24 | | Foundation. Appraisal management companies shall not interfere |
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| 1 | | with adherence to the Uniform Standards of Professional | 2 | | Appraisal Practice or the Real Estate Appraiser Act of 2002 or | 3 | | a subsequent Act by individuals licensed under the respective | 4 | | Acts. | 5 | | (b) All payment policies from registrants under this Act to | 6 | | appraisers shall be written and definitive in nature.
| 7 | | (c) In the event of a value dispute or a requested | 8 | | reconsideration of value, the appraisal management company | 9 | | shall deliver all information that supports an increase or | 10 | | decrease in value to the appraiser. This information may | 11 | | include, but is not limited to, additional comparable sales. | 12 | | (d) Each entity registered under this Act shall designate a | 13 | | controlling person who is responsible to assure that the | 14 | | company operates in compliance with this Act. The company shall | 15 | | file a form provided by the Department indicating the company's | 16 | | designation of the controlling person and such individual's | 17 | | acceptance of the responsibility. A registrant shall notify the | 18 | | Department of any change in its controlling person within 30 | 19 | | days. Any registrant who does not comply with this subsection | 20 | | (d) shall have its registration suspended under the provisions | 21 | | set forth in this Act until the registrant complies with this | 22 | | Section. Any individual registrant who operates as a sole | 23 | | proprietorship shall be considered a designated controlling | 24 | | person for the purposes of this Act. | 25 | | (e)
Appraisal management companies or employees of an | 26 | | appraisal management company involved in a real estate |
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| 1 | | transaction who have a reasonable basis to believe that an | 2 | | appraiser involved in the preparation of an appraisal for the | 3 | | real estate transaction has failed to comply with the Uniform | 4 | | Standards of Professional Appraisal Practice, has violated | 5 | | this Act or its rules, or has otherwise engaged in unethical | 6 | | conduct shall report the matter to the Department. Any | 7 | | registrant, employee, or individual acting on behalf of a | 8 | | registrant, acting in good faith, and not in a willful and | 9 | | wanton manner, in complying with this Act by reporting the | 10 | | conduct to the Department shall not, as a result of such | 11 | | actions, be subject to criminal prosecution or civil damages. | 12 | | (f) Appraisal management companies are required to be in | 13 | | compliance with the appraisal independence standards | 14 | | established under Section 129E of the federal Truth in Lending | 15 | | Act, including the requirement that fee appraisers be | 16 | | compensated at a customary and reasonable rate when the | 17 | | appraisal management company is providing services for a | 18 | | consumer credit transaction secured by the principal dwelling | 19 | | of a consumer. The Department shall formulate rules pertaining | 20 | | to customary and reasonable rates of compensation for complex | 21 | | assignments consistent with the Final Interim Rule or other | 22 | | rule of the federal Dodd-Frank Wall Street Reform and Consumer | 23 | | Protection Act. The appraisal management company must certify | 24 | | to the Department that it has policies and procedures in place | 25 | | to be in compliance, however, the Department may not adopt | 26 | | rules or policies that contradict or change the presumptions of |
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| 1 | | compliance as established under the Final Interim Rule of the | 2 | | federal Dodd-Frank Wall Street Reform and Consumer Protection | 3 | | Act.
| 4 | | (g) No appraisal management company procuring or | 5 | | facilitating an appraisal may have a direct or indirect | 6 | | interest, financial or otherwise, in the real estate or the | 7 | | transaction that is the subject of the appraisal, as defined by | 8 | | the federal Dodd-Frank Wall Street Reform and Consumer | 9 | | Protection Act, any amendments thereto, or successor acts or | 10 | | other applicable provisions of federal law or regulations. | 11 | | Section 165. Prohibited activities. | 12 | | (a) No person or entity acting in the capacity of an | 13 | | appraisal management company shall improperly influence or | 14 | | attempt to improperly influence the development, reporting, | 15 | | result, or review of any appraisal by engaging, without | 16 | | limitation, in any of the following: | 17 | | (1) Withholding or threatening to withhold timely | 18 | | payment for a completed appraisal, except where addressed | 19 | | in a mutually agreed upon contract. | 20 | | (2) Withholding or threatening to withhold, either | 21 | | expressed or by implication, future business from, or | 22 | | demoting, or terminating, or threatening to demote or | 23 | | terminate an Illinois licensed or certified appraiser. | 24 | | (3) Expressly or impliedly promising future business, | 25 | | promotions, or increased compensation for an independent |
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| 1 | | appraiser. | 2 | | (4) Conditioning an assignment for an appraisal | 3 | | service or the payment of an appraisal fee or salary or | 4 | | bonus on the opinion, conclusion, or valuation to be | 5 | | reached in an appraisal report. | 6 | | (5) Requesting that an appraiser provide an estimated, | 7 | | predetermined, or desired valuation in an appraisal report | 8 | | or provide estimated values or sales at any time prior to | 9 | | the appraiser's completion of an appraisal report. | 10 | | (6) Allowing or directing the removal of an appraiser | 11 | | from an appraisal panel without prior written notice to the | 12 | | appraiser. | 13 | | (7) Requiring an appraiser to sign a non-compete clause | 14 | | when not an employee of the entity. | 15 | | (8) Requiring an appraiser to sign any sort of | 16 | | indemnification agreement that would require the appraiser | 17 | | to defend and hold harmless the appraisal management | 18 | | company or any of its agents, employees, or independent | 19 | | contractors for any liability, damage, losses, or claims | 20 | | arising out of the services performed by the appraisal | 21 | | management company or its agents, employees, or | 22 | | independent contractors and not the services performed by | 23 | | the appraiser. | 24 | | (9) Prohibiting or attempting to prohibit the | 25 | | appraiser from including or referencing the appraisal fee, | 26 | | the appraisal management company name or identity, or the |
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| 1 | | client's or lender's name or identity within the body of | 2 | | the appraisal report. | 3 | | (10) Require an appraiser to collect a fee from the | 4 | | borrower or occupant of the property to be appraised. | 5 | | (11) Knowingly withholding any end-user client | 6 | | guidelines, policies, requirements, standards, assignment | 7 | | conditions, and special instructions from an appraiser | 8 | | prior to the acceptance of an appraisal assignment.
| 9 | | (b) A person or entity may not structure an appraisal | 10 | | assignment or a contract with an independent appraiser for the | 11 | | purpose of evading the provisions of this Act.
| 12 | | (c) No registrant or other person or entity may alter, | 13 | | modify, or otherwise change a completed appraisal report | 14 | | submitted by an independent appraiser, including without | 15 | | limitation, by doing either of the following:
| 16 | | (1) permanently or temporarily removing the | 17 | | appraiser's signature or seal; or | 18 | | (2) adding information to, or removing information | 19 | | from, the appraisal report with an intent to change the | 20 | | value conclusion or the condition of the property.
| 21 | | (d) No appraisal management company may require an | 22 | | appraiser to provide it with the appraiser's digital signature | 23 | | or seal. However, nothing in this Act shall be deemed to | 24 | | prohibit an appraiser from voluntarily providing his or her | 25 | | digital signature or seal to another person on an | 26 | | assignment-by-assignment basis, in accordance with USPAP. |
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| 1 | | (e) Nothing in this Act shall prohibit an appraisal | 2 | | management company from requesting that an appraiser:
| 3 | | (1) consider additional appropriate property | 4 | | information, including the consideration of additional | 5 | | comparable properties to make or support an appraisal; | 6 | | (2) provide further detail, substantiation, or | 7 | | explanation for the appraiser's value conclusion; or | 8 | | (3) correct factual errors in the appraisal report. | 9 | | Section 170. Confidentiality. All information collected by | 10 | | the Department in the course of an examination or investigation | 11 | | of a licensee or applicant, including, but not limited to, any | 12 | | complaint against a licensee filed with the Department and | 13 | | information collected to investigate any such complaint, shall | 14 | | be maintained for the confidential use of the Department and | 15 | | shall not be disclosed. The Department may not disclose the | 16 | | information to anyone other than law enforcement officials, | 17 | | other regulatory agencies that have an appropriate regulatory | 18 | | interest as determined by the Secretary, or to a party | 19 | | presenting a lawful subpoena to the Department. Information and | 20 | | documents disclosed to a federal, State, county, or local law | 21 | | enforcement agency shall not be disclosed by the agency for any | 22 | | purpose to any other agency or person. A formal complaint filed | 23 | | against a licensee by the Department or any order issued by the | 24 | | Department against a licensee or applicant shall be a public | 25 | | record, except as otherwise prohibited by law. |
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| 1 | | Section 175. Illinois Administrative Procedure Act; | 2 | | application. The Illinois Administrative Procedure Act is | 3 | | expressly adopted and incorporated in this Act as if all of the | 4 | | provisions of that Act were included in this Act, except that | 5 | | the provision of paragraph (d) of Section 10-65 of the Illinois | 6 | | Administrative Procedure Act, which provides that at hearings | 7 | | the registrant has the right to show compliance with all lawful | 8 | | requirements for retention or continuation or renewal of the | 9 | | registration, is specifically excluded. For the purpose of this | 10 | | Act, the notice required under Section 10-25 of the Illinois | 11 | | Administrative Procedure Act is considered sufficient when | 12 | | mailed to the last known address of a party. | 13 | | Section 180. Home rule. The regulation and registration of | 14 | | practice as an appraisal management company are exclusive | 15 | | powers and functions of the State. A home rule unit may not | 16 | | regulate the practice or require the registration as an | 17 | | appraisal management company. This Section is a denial and | 18 | | limitation of home rule powers and functions under subsection | 19 | | (h) of Section 6 of Article VII of the Illinois Constitution. | 20 | | Section 999. Effective date. This Act takes effect upon | 21 | | becoming law.".
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