HB3714 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3714

 

Introduced 2/22/2021, by Rep. Lakesia Collins

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Real Estate Appraiser Licensing Act. Provides that all applicants and licensees under the Act shall provide a valid address and email address to the Department of Financial and Professional Regulation. Provides that except as otherwise expressly provided, nothing in the Act shall be construed to grant to any person a private right of action for damages or to enforce the provisions of the Act or the rules issued under the Act. Creates provisions concerning inactive licenses; citations; and illegal discrimination. Makes changes in provisions concerning necessity of license, use of title, exemptions; applications for State certified general real estate appraiser; application for State certified residential real estate appraiser; application for associate real estate trainee appraiser; duration of application; criminal history records checks; renewal of license; qualifying education requirements; scope of practice; standards of practice; unlicensed practice; grounds for disciplinary action; investigation, notice, and hearing; credit card charges; education providers; course approval; the Real Estate Appraisal Administration and Disciplinary Board; Department powers and duties; rules; and savings provisions. Repeals provisions concerning surveys and the Appraisal Administration Fund. Makes other changes. Amends the Appraisal Management Company Registration Act. Provides that nothing in the Act shall apply to a department or division of an entity that provides appraisal management services only to that entity. Makes changes to definitions. Amends the Regulatory Sunset Act. Extends the repeal date of the Real Estate Appraiser Licensing Act from January 1, 2022 to January 1, 2032. Effective January 1, 2022, except provisions amending the Regulatory Sunset Act take effect immediately.


LRB102 03960 SPS 13976 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3714LRB102 03960 SPS 13976 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Regulatory Sunset Act is amended by
5changing Section 4.32 and by adding Section 4.41 as follows:
 
6    (5 ILCS 80/4.32)
7    Sec. 4.32. Acts repealed on January 1, 2022. The following
8Acts are repealed on January 1, 2022:
9    The Boxing and Full-contact Martial Arts Act.
10    The Cemetery Oversight Act.
11    The Collateral Recovery Act.
12    The Community Association Manager Licensing and
13Disciplinary Act.
14    The Crematory Regulation Act.
15    The Detection of Deception Examiners Act.
16    The Home Inspector License Act.
17    The Illinois Health Information Exchange and Technology
18Act.
19    The Medical Practice Act of 1987.
20    The Registered Interior Designers Act.
21    The Massage Licensing Act.
22    The Petroleum Equipment Contractors Licensing Act.
23    The Radiation Protection Act of 1990.

 

 

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1    The Real Estate Appraiser Licensing Act of 2002.
2    The Water Well and Pump Installation Contractor's License
3Act.
4(Source: P.A. 100-920, eff. 8-17-18; 101-316, eff. 8-9-19;
5101-614, eff. 12-20-19; 101-639, eff. 6-12-20.)
 
6    (5 ILCS 80/4.41 new)
7    Sec. 4.41. Act repealed on January 1, 2032. The following
8Act is repealed on January 1, 2032:
9    The Real Estate Appraiser Licensing Act of 2002.
 
10    Section 10. The Real Estate Appraiser Licensing Act of
112002 is amended by changing Sections 1-10, 5-5, 5-10, 5-15,
125-20, 5-20.5, 5-22, 5-25, 5-30, 5-35, 10-5, 10-10, 15-5,
1315-10, 15-15, 15-55, 20-5, 20-10, 25-10, 25-15, 25-16, 25-20,
1425-25, and 30-5 and by adding Sections 1-12, 5-26, 15-10.1,
1515-11, and 25-35 as follows:
 
16    (225 ILCS 458/1-10)
17    (Section scheduled to be repealed on January 1, 2022)
18    Sec. 1-10. Definitions. As used in this Act, unless the
19context otherwise requires:
20    "Accredited college or university, junior college, or
21community college" means a college or university, junior
22college, or community college that is approved or accredited
23by the Board of Higher Education, a regional or national

 

 

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1accreditation association, or by an accrediting agency that is
2recognized by the U.S. Secretary of Education.
3    "Address of record" means the designated street address,
4which may not be a post office box, recorded by the Department
5in the applicant's or licensee's application file or license
6file as maintained by the Department's licensure maintenance
7unit. It is the duty of the applicant or licensee to inform the
8Department of any change of address and those changes must be
9made either through the Department's website or by contacting
10the Department.
11    "Applicant" means person who applies to the Department for
12a license under this Act.
13    "Appraisal" means (noun) the act or process of developing
14an opinion of value; an opinion of value (adjective) of or
15pertaining to appraising and related functions, such as
16appraisal practice or appraisal services.
17    "Appraisal assignment" means a valuation service provided
18pursuant to as a consequence of an agreement between an
19appraiser and a client.
20    "Appraisal consulting" means the act or process of
21developing an analysis, recommendation, or opinion to solve a
22problem, where an opinion of value is a component of the
23analysis leading to the assignment results.
24    "Appraisal firm" means an appraisal entity that is 100%
25owned and controlled by a person or persons licensed in
26Illinois as a certified general real estate appraiser or a

 

 

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1certified residential real estate appraiser. "Appraisal firm"
2does not include an appraisal management company.
3    "Appraisal management company" means any corporation,
4limited liability company, partnership, sole proprietorship,
5subsidiary, unit, or other business entity that directly or
6indirectly: (1) provides appraisal management services to
7creditors or secondary mortgage market participants, including
8affiliates; (2) provides appraisal management services in
9connection with valuing the consumer's principal dwelling as
10security for a consumer credit transaction (including consumer
11credit transactions incorporated into securitizations); and
12(3) within a given year, oversees an appraiser panel of any
13size of State-certified appraisers in Illinois; and (4) any
14appraisal management company that, within a given 12-month
15period year, oversees an appraiser panel of 16 or more
16State-certified appraisers in Illinois or 25 or more
17State-certified or State-licensed appraisers in 2 or more
18jurisdictions shall be subject to the appraisal management
19company national registry fee in addition to the appraiser
20panel fee. "Appraisal management company" includes a hybrid
21entity.
22    "Appraisal practice" means valuation services performed by
23an individual acting as an appraiser, including, but not
24limited to, appraisal or , appraisal review, or appraisal
25consulting.
26    "Appraisal report" means any communication, written or

 

 

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1oral, of an appraisal or appraisal review that is transmitted
2to a client upon completion of an assignment.
3    "Appraisal review" means the act or process of developing
4and communicating an opinion about the quality of another
5appraiser's work that was performed as part of an appraisal,
6appraisal review, or appraisal assignment.
7    "Appraisal Subcommittee" means the Appraisal Subcommittee
8of the Federal Financial Institutions Examination Council as
9established by Title XI.
10    "Appraiser" means a person who performs real estate or
11real property appraisals competently and in a manner that is
12independent, impartial, and objective.
13    "Appraiser panel" means a network, list, or roster of
14licensed or certified appraisers approved by the appraisal
15management company or by the end-user client to perform
16appraisals as independent contractors for the appraisal
17management company. "Appraiser panel" includes both appraisers
18accepted by an appraisal management company for consideration
19for future appraisal assignments and appraisers engaged by an
20appraisal management company to perform one or more
21appraisals. For the purposes of determining the size of an
22appraiser panel, only independent contractors of hybrid
23entities shall be counted towards the appraiser panel.
24    "AQB" means the Appraisal Qualifications Board of the
25Appraisal Foundation.
26    "Associate real estate trainee appraiser" means an

 

 

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1entry-level appraiser who holds a license of this
2classification under this Act with restrictions as to the
3scope of practice in accordance with this Act.
4    "Automated valuation model" means an automated system that
5is used to derive a property value through the use of available
6property records and various analytic methodologies such as
7comparable sales prices, home characteristics, and price
8changes.
9    "Board" means the Real Estate Appraisal Administration and
10Disciplinary Board.
11    "Broker price opinion" means an estimate or analysis of
12the probable selling price of a particular interest in real
13estate, which may provide a varying level of detail about the
14property's condition, market, and neighborhood and information
15on comparable sales. The activities of a real estate broker or
16managing broker engaging in the ordinary course of business as
17a broker, as defined in this Section, shall not be considered a
18broker price opinion if no compensation is paid to the broker
19or managing broker, other than compensation based upon the
20sale or rental of real estate.
21    "Classroom hour" means 50 minutes of instruction out of
22each 60 minute segment of coursework.
23    "Client" means the party or parties who engage an
24appraiser by employment or contract in a specific appraisal
25assignment.
26    "Comparative market analysis" is an analysis or opinion

 

 

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1regarding pricing, marketing, or financial aspects relating to
2a specified interest or interests in real estate that may be
3based upon an analysis of comparative market data, the
4expertise of the real estate broker or managing broker, and
5such other factors as the broker or managing broker may deem
6appropriate in developing or preparing such analysis or
7opinion. The activities of a real estate broker or managing
8broker engaging in the ordinary course of business as a
9broker, as defined in this Section, shall not be considered a
10comparative market analysis if no compensation is paid to the
11broker or managing broker, other than compensation based upon
12the sale or rental of real estate.
13    "Coordinator" means the Coordinator of Real Estate
14Appraisal Coordinator created in Section 25-15 of the Division
15of Professional Regulation of the Department of Financial and
16Professional Regulation.
17    "Department" means the Department of Financial and
18Professional Regulation.
19    "Email address of record" means the designated email
20address recorded by the Department in the applicant's
21application file or the licensee's license file maintained by
22the Department.
23    "Federal financial institutions regulatory agencies" means
24the Board of Governors of the Federal Reserve System, the
25Federal Deposit Insurance Corporation, the Office of the
26Comptroller of the Currency, the Consumer Financial Protection

 

 

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1Bureau, and the National Credit Union Administration.
2    "Federally related transaction" means any real
3estate-related financial transaction in which a federal
4financial institutions regulatory agency engages in, contracts
5for, or regulates and requires the services of an appraiser.
6    "Financial institution" means any bank, savings bank,
7savings and loan association, credit union, mortgage broker,
8mortgage banker, licensee under the Consumer Installment Loan
9Act or the Sales Finance Agency Act, or a corporate fiduciary,
10subsidiary, affiliate, parent company, or holding company of
11any such licensee, or any institution involved in real estate
12financing that is regulated by state or federal law.
13    "Hybrid entity" means an appraisal management company that
14hires an appraiser as an employee to perform an appraisal and
15engages an independent contractor to perform an appraisal.
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    "Licensee" means any person, as defined in this Section,
20who holds a valid unexpired license.
21    "Multi-state licensing system" means a web-based platform
22that allows an applicant to submit the his or her application
23or license renewal application to the Department online.
24    "Person" means an individual, entity, sole proprietorship,
25corporation, limited liability company, partnership, and joint
26venture, foreign or domestic, except that when the context

 

 

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1otherwise requires, the term may refer to more than one
2individual or other described entity.
3    "Real estate" means an identified parcel or tract of land,
4including any improvements.
5    "Real estate related financial transaction" means any
6transaction involving:
7        (1) the sale, lease, purchase, investment in, or
8    exchange of real property, including interests in property
9    or the financing thereof;
10        (2) the refinancing of real property or interests in
11    real property; and
12        (3) the use of real property or interest in property
13    as security for a loan or investment, including mortgage
14    backed securities.
15    "Real property" means the interests, benefits, and rights
16inherent in the ownership of real estate.
17    "Secretary" means the Secretary of Financial and
18Professional Regulation or the Secretary's designee.
19    "State certified general real estate appraiser" means an
20appraiser who holds a license of this classification under
21this Act and such classification applies to the appraisal of
22all types of real property without restrictions as to the
23scope of practice.
24    "State certified residential real estate appraiser" means
25an appraiser who holds a license of this classification under
26this Act and such classification applies to the appraisal of

 

 

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1one to 4 units of residential real property without regard to
2transaction value or complexity, but with restrictions as to
3the scope of practice in a federally related transaction in
4accordance with Title XI, the provisions of USPAP, criteria
5established by the AQB, and further defined by rule.
6    "Supervising appraiser" means either (i) an appraiser who
7holds a valid license under this Act as either a State
8certified general real estate appraiser or a State certified
9residential real estate appraiser, who co-signs an appraisal
10report for an associate real estate trainee appraiser or (ii)
11a State certified general real estate appraiser who holds a
12valid license under this Act who co-signs an appraisal report
13for a State certified residential real estate appraiser on
14properties other than one to 4 units of residential real
15property without regard to transaction value or complexity.
16    "Title XI" means Title XI of the federal Financial
17Institutions Reform, Recovery and Enforcement Act of 1989.
18    "USPAP" means the Uniform Standards of Professional
19Appraisal Practice as promulgated by the Appraisal Standards
20Board pursuant to Title XI and by rule.
21    "Valuation services" means services pertaining to aspects
22of property value.
23(Source: P.A. 100-604, eff. 7-13-18.)
 
24    (225 ILCS 458/1-12 new)
25    Sec. 1-12. Address of record; email address of record. All

 

 

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1applicants and licensees shall:
2        (1) provide a valid address and email address to the
3    Department, which shall serve as the address of record and
4    email address of record, respectively, at the time of
5    application for licensure or renewal of a license; and
6        (2) inform the Department of any change of address of
7    record or email address of record within 14 days after
8    such change through the Department's website.
 
9    (225 ILCS 458/5-5)
10    (Section scheduled to be repealed on January 1, 2022)
11    Sec. 5-5. Necessity of license; use of title; exemptions.
12    (a) It is unlawful for a person to (i) act, offer services,
13or advertise services as a State certified general real estate
14appraiser, State certified residential real estate appraiser,
15or associate real estate trainee appraiser, (ii) develop a
16real estate appraisal, (iii) practice as a real estate
17appraiser, or (iv) advertise as or hold himself or herself out
18to be a real estate appraiser without a license issued under
19this Act. A person who violates this subsection is guilty of a
20Class A misdemeanor for a first offense and a Class 4 felony
21for any subsequent offense.
22    (a-5) It is unlawful for a person, unless registered as an
23appraisal management company, to solicit clients or enter into
24an appraisal engagement with clients without either a
25certified residential real estate appraiser license or a

 

 

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1certified general real estate appraiser license issued under
2this Act. A person who violates this subsection is guilty of a
3Class A misdemeanor for a first offense and a Class 4 felony
4for any subsequent offense.
5    (b) It is unlawful for a person, other than a person who
6holds a valid license issued pursuant to this Act as a State
7certified general real estate appraiser, a State certified
8residential real estate appraiser, or an associate real estate
9trainee appraiser to use these titles or any other title,
10designation, or abbreviation likely to create the impression
11that the person is licensed as a real estate appraiser
12pursuant to this Act. A person who violates this subsection is
13guilty of a Class A misdemeanor for a first offense and a Class
144 felony for any subsequent offense.
15    (c) This Act does not apply to a person who holds a valid
16license as a real estate broker or managing broker pursuant to
17the Real Estate License Act of 2000 who prepares or provides a
18broker price opinion or comparative market analysis in
19compliance with Section 10-45 of the Real Estate License Act
20of 2000.
21    (d) Nothing in this Act shall preclude a State certified
22general real estate appraiser, a State certified residential
23real estate appraiser, or an associate real estate trainee
24appraiser from rendering appraisals for or on behalf of a
25partnership, association, corporation, firm, or group.
26However, no State appraisal license or certification shall be

 

 

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1issued under this Act to a partnership, association,
2corporation, firm, or group.
3    (e) This Act does not apply to a county assessor, township
4assessor, multi-township assessor, county supervisor of
5assessments, or any deputy or employee of any county assessor,
6township assessor, multi-township assessor, or county
7supervisor of assessments in performance of who is performing
8his or her respective duties in accordance with the provisions
9of the Property Tax Code.
10    (e-5) For the purposes of this Act, valuation waivers may
11be prepared by a licensed appraiser notwithstanding any other
12provision of this Act, and the following types of valuations
13are not appraisals and may not be represented to be
14appraisals, and a license is not required under this Act to
15perform such valuations if the valuations are performed by (1)
16an employee of the Illinois Department of Transportation who
17has completed a minimum of 45 hours of course work in real
18estate appraisal, including the principles principals of real
19estate appraisals, appraisal of partial acquisitions, easement
20valuation, reviewing appraisals in eminent domain, appraisal
21for federal aid highway programs, and appraisal review for
22federal aid highway programs and has at least 2 years'
23experience in a field closely related to real estate; (2) a
24county engineer who is a registered professional engineer
25under the Professional Engineering Practice Act of 1989; (3)
26an employee of a municipality who has (i) completed a minimum

 

 

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1of 45 hours of coursework in real estate appraisal, including
2the principles principals of real estate appraisals, appraisal
3of partial acquisitions, easement valuation, reviewing
4appraisals in eminent domain, appraisal for federal aid
5highway programs, and appraisal review for federal aid highway
6programs and (ii) has either 2 years' experience in a field
7clearly related to real estate or has completed 20 hours of
8additional coursework that is sufficient for a person to
9complete waiver valuations as approved by the Federal Highway
10Administration; or (4) a municipal engineer who has completed
11coursework that is sufficient for his or her waiver valuations
12to be approved by the Federal Highway Administration and who
13is a registered professional engineer under the Professional
14Engineering Act of 1989, under the following circumstances:
15        (A) a valuation waiver in an amount not to exceed
16    $20,000 $10,000 prepared pursuant to the federal Uniform
17    Relocation Assistance and Real Property Acquisition
18    Policies Act of 1970, or prepared pursuant to the federal
19    Uniform Relocation Assistance and Real Property
20    Acquisition for Federal and Federally-Assisted Programs
21    regulations and which is performed by (1) an employee of
22    the Illinois Department of Transportation and co-signed,
23    with a license number affixed, by another employee of the
24    Illinois Department of Transportation who is a registered
25    professional engineer under the Professional Engineering
26    Practice Act of 1989 or (2) an employee of a municipality

 

 

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1    and co-signed with a license number affixed by a county or
2    municipal engineer who is a registered professional
3    engineer under the Professional Engineering Practice Act
4    of 1989; and
5        (B) a valuation waiver in an amount not to exceed
6    $20,000 $10,000 prepared pursuant to the federal Uniform
7    Relocation Assistance and Real Property Acquisition
8    Policies Act of 1970, or prepared pursuant to the federal
9    Uniform Relocation Assistance and Real Property
10    Acquisition for Federal and Federally-Assisted Programs
11    regulations and which is performed by a county or
12    municipal engineer who is employed by a county or
13    municipality and is a registered professional engineer
14    under the Professional Engineering Practice Act of 1989.
15    The valuation shall include In addition to his or her
16    signature, the county or municipal engineer's signature
17    and engineer shall affix his or her license number to the
18    valuation.
19    Nothing in this subsection (e-5) shall be construed to
20allow the State of Illinois, a political subdivision thereof,
21or any public body to acquire real estate by eminent domain in
22any manner other than provided for in the Eminent Domain Act.
23    (f) A State real estate appraisal certification or license
24is not required under this Act for any of the following: (1) A
25person, partnership, association, or corporation that performs
26appraisals of property owned by that person, partnership,

 

 

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1association, or corporation for the sole use of that person,
2partnership, association, or corporation.
3        (2) A court-appointed commissioner who conducts an
4    appraisal pursuant to a judicially ordered evaluation of
5    property.
6    Any However, any person who is certified or licensed under
7this Act and who performs any of the activities set forth in
8this subsection (f) must comply with the provisions of this
9Act. A person who violates this subsection (f) is guilty of a
10Class A misdemeanor for a first offense and a Class 4 felony
11for any subsequent offense.
12    (g) This Act does not apply to an employee, officer,
13director, or member of a credit or loan committee of a
14financial institution or any other person engaged by a
15financial institution when performing an evaluation of real
16property serving as collateral for a loan made by a federally
17regulated institution for the sole use of the financial
18institution in a transaction for which the financial
19institution would not be required to use the services of a
20State licensed or State certified appraiser pursuant to
21federal regulations adopted under Title XI of the federal
22Financial Institutions Reform, Recovery, and Enforcement Act
23of 1989, nor does this Act apply to the procurement of an
24automated valuation model. An evaluation shall be labeled
25prominently, in body text of the report, "This is not an
26appraisal." Nothing in this Section shall prevent a State

 

 

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1certified appraiser or an associate real estate trainee
2appraiser, in any license status, from completing an
3evaluation.
4    (h) This Act does not apply to the procurement of an
5automated valuation model.
6    "Automated valuation model" means an automated system that
7is used to derive a property value through the use of publicly
8available property records and various analytic methodologies
9such as comparable sales prices, home characteristics, and
10historical home price appreciations.
11(Source: P.A. 98-444, eff. 8-16-13; 98-933, eff. 1-1-15;
1298-1109, eff. 1-1-15; 99-78, eff. 7-20-15.)
 
13    (225 ILCS 458/5-10)
14    (Section scheduled to be repealed on January 1, 2022)
15    Sec. 5-10. Application for State certified general real
16estate appraiser.
17    (a) Every person who desires to obtain a State certified
18general real estate appraiser license shall:
19        (1) apply to the Department on forms provided by the
20    Department, or through a multi-state licensing system as
21    designated by the Secretary, accompanied by the required
22    fee;
23        (2) be at least 18 years of age;
24        (3) (blank);
25        (4) personally take and pass an examination authorized

 

 

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1    by the Department and endorsed by the AQB;
2        (5) prior to taking the examination, provide evidence
3    to the Department, or through a multi-state licensing
4    system as designated by the Secretary, of successful
5    completion of in Modular Course format, with each module
6    conforming to the Required Core Curriculum established and
7    adopted by the AQB, that he or she has successfully
8    completed the prerequisite classroom hours of instruction
9    in appraising as established by the AQB and by rule;
10    evidence shall be in a Modular Course format with each
11    module conforming to the Required Core Curriculum
12    established and adopted by the AQB; and
13        (6) prior to taking the examination, provide evidence
14    to the Department, or through a multi-state licensing
15    system as designated by the Secretary, of successful
16    completion of that he or she has successfully completed
17    the prerequisite experience and educational requirements
18    in appraising as established by AQB and by rule.
19    (b) Applicants must provide evidence to the Department, or
20through a multi-state licensing system as designated by the
21Secretary, of holding a Bachelor's degree or higher from an
22accredited college or university.
23(Source: P.A. 100-604, eff. 7-13-18.)
 
24    (225 ILCS 458/5-15)
25    (Section scheduled to be repealed on January 1, 2022)

 

 

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1    Sec. 5-15. Application for State certified residential
2real estate appraiser. Every person who desires to obtain a
3State certified residential real estate appraiser license
4shall:
5        (1) apply to the Department on forms provided by the
6    Department, or through a multi-state licensing system as
7    designated by the Secretary, accompanied by the required
8    fee;
9        (2) be at least 18 years of age;
10        (3) (blank);
11        (4) personally take and pass an examination authorized
12    by the Department and endorsed by the AQB;
13        (5) prior to taking the examination, provide evidence
14    to the Department, or through a multi-state licensing
15    system as designated by the Secretary, of successful
16    completion of in Modular Course format, with each module
17    conforming to the Required Core Curriculum established and
18    adopted by the AQB, that he or she has successfully
19    completed the prerequisite classroom hours of instruction
20    in appraising as established by the AQB and by rule;
21    evidence shall be in a Modular Course format with each
22    module conforming to the Required Core Curriculum
23    established and adopted by the AQB; and
24        (6) prior to taking the examination, provide evidence
25    to the Department, or through a multi-state licensing
26    system as designated by the Secretary, of successful

 

 

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1    completion of that he or she has successfully completed
2    the prerequisite experience and educational requirements
3    as established by AQB and by rule.
4(Source: P.A. 100-201, eff. 8-18-17; 100-604, eff. 7-13-18.)
 
5    (225 ILCS 458/5-20)
6    (Section scheduled to be repealed on January 1, 2022)
7    Sec. 5-20. Application for associate real estate trainee
8appraiser. Every person who desires to obtain an associate
9real estate trainee appraiser license shall:
10        (1) apply to the Department on forms provided by the
11    Department, or through a multi-state licensing system as
12    designated by the Secretary, accompanied by the required
13    fee;
14        (2) be at least 18 years of age;
15        (3) provide evidence of having attained a high school
16    diploma or completed an equivalent course of study as
17    determined by an examination conducted or accepted by the
18    Illinois State Board of Education;
19        (4) (blank); and
20        (5) provide evidence to the Department, or through a
21    multi-state licensing system as designated by the
22    Secretary, of successful completion of that he or she has
23    successfully completed the prerequisite qualifying and any
24    conditional education requirements as established by rule.
25(Source: P.A. 100-604, eff. 7-13-18; 100-832, eff. 1-1-19;

 

 

HB3714- 21 -LRB102 03960 SPS 13976 b

1101-81, eff. 7-12-19.)
 
2    (225 ILCS 458/5-20.5)
3    (Section scheduled to be repealed on January 1, 2022)
4    Sec. 5-20.5. Duration of application. Applicants have 3
5years from the date of application to complete the application
6process. If the process has not been completed within 3 years,
7the application shall expire be denied, the fee shall be
8forfeited, and the applicant must reapply and meet the
9requirements in effect at the time of reapplication.
10(Source: P.A. 96-844, eff. 12-23-09.)
 
11    (225 ILCS 458/5-22)
12    (Section scheduled to be repealed on January 1, 2022)
13    Sec. 5-22. Criminal history records check.
14    (a) An application Each applicant for licensure by
15examination or restoration shall include the applicant's have
16his or her fingerprints submitted to the Department of State
17Police in an electronic format that complies with the form and
18manner for requesting and furnishing criminal history record
19information as prescribed by the Department of State Police.
20These fingerprints shall be checked against the Department of
21State Police and Federal Bureau of Investigation criminal
22history record databases now and hereafter filed. The
23Department of State Police shall charge applicants a fee for
24conducting the criminal history records check, which shall be

 

 

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1deposited into the State Police Services Fund and shall not
2exceed the actual cost of the records check. The Department of
3State Police shall furnish, pursuant to positive
4identification, records of Illinois convictions to the
5Department. The Department may require applicants to pay a
6separate fingerprinting fee, either to the Department or to a
7vendor. The Department may adopt any rules necessary to
8implement this Section.
9    (b) The Secretary may designate a multi-state licensing
10system to perform the functions described in subsection (a).
11The Department may require applicants to pay a separate
12fingerprinting fee, either to the Department or to the
13multi-state licensing system. The Department may adopt any
14rules necessary to implement this subsection.
15    (c) The Department shall not consider the following
16criminal history records in connection with an application for
17licensure or certification:
18        (1) juvenile adjudications of delinquent minors as
19    defined in Section 5-105 of the Juvenile Court Act of 1987
20    subject to the restrictions set forth in Section 5-130 of
21    that Act;
22        (2) law enforcement records, court records, and
23    conviction records of an individual who was 17 years old
24    at the time of the offense and before January 1, 2014,
25    unless the nature of the offense required the individual
26    to be tried as an adult;

 

 

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1        (3) records of arrest not followed by a charge or
2    conviction;
3        (4) records of arrest in which the charges were
4    dismissed unless related to the practice of the
5    profession; however, applicants shall not be asked to
6    report any arrests, and an arrest not followed by a
7    conviction shall not be the basis of a denial and may be
8    used only to assess an applicant's rehabilitation;
9        (5) convictions overturned by a higher court; or
10        (6) convictions or arrests that have been sealed or
11    expunged.
12    (d) If an applicant makes a false statement of material
13fact on the application, the false statement may in itself be
14sufficient grounds to revoke or refuse to issue a license or
15certification.
16    (e) A licensee or certificate holder shall report to the
17Department, in a manner prescribed by the Department, any plea
18of guilty or nolo contendere to forgery, embezzlement,
19obtaining money under false pretenses, larceny, extortion,
20conspiracy to defraud, or any similar offense or offenses or
21any conviction of a felony involving moral turpitude that
22occurs during the licensee's term of licensure or certificate
23holder's term of certification.
24(Source: P.A. 100-604, eff. 7-13-18.)
 
25    (225 ILCS 458/5-25)

 

 

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1    (Section scheduled to be repealed on January 1, 2022)
2    Sec. 5-25. Renewal of license.
3    (a) The expiration date and renewal period for a State
4certified general real estate appraiser license or a State
5certified residential real estate appraiser license issued
6under this Act shall be set by rule. Except as otherwise
7provided in subsections (b) and (f) of this Section, the
8holder of a license may renew the license within 90 days
9preceding the expiration date by:
10        (1) completing and submitting to the Department, or
11    through a multi-state licensing system as designated by
12    the Secretary, a renewal application form as provided by
13    the Department;
14        (2) paying the required fees; and
15        (3) providing evidence to the Department, or through a
16    multi-state licensing system as designated by the
17    Secretary, of successful completion of the continuing
18    education requirements through courses approved by the
19    Department from education providers licensed by the
20    Department, as established by the AQB and by rule.
21    (b) A State certified general real estate appraiser or
22State certified residential real estate appraiser whose
23license under this Act has expired may renew the license for a
24period of 2 years following the expiration date by complying
25with the requirements of paragraphs (1), (2), and (3) of
26subsection (a) of this Section and paying any late penalties

 

 

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

 

 

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1whose license under this Act has expired may renew or convert
2the license without paying any lapsed renewal fees or late
3penalties if the license expired while the appraiser was:
4        (1) on active duty with the United States Armed
5    Services;
6        (2) serving as the Coordinator of Real Estate
7    Appraisal or an employee of the Department who was
8    required to surrender the his or her license during the
9    term of employment.
10    Application for renewal must be made within 2 years
11following the termination of the military service or related
12education, training, or employment and shall include an
13affidavit from the licensee of engagement. The licensee shall
14furnish the Department with an affidavit that he or she was so
15engaged.
16    (g) The Department shall provide reasonable care and due
17diligence to ensure that each licensee under this Act is
18provided with a renewal application at least 90 days prior to
19the expiration date, but each licensee is responsible to
20timely renewal or conversion of the renew or convert his or her
21license prior to its expiration date is the responsibility of
22the licensee.
23    (h) The Department shall not renew a license if the
24licensee has an unpaid fine from a disciplinary matter or an
25unpaid fee from a non-disciplinary action imposed by the
26Department until the fine or fee is paid to the Department or

 

 

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1the licensee has entered into a payment plan and is current on
2the required payments.
3    (i) The Department shall not issue a license if the
4applicant has an unpaid fine imposed by the Department for
5unlicensed practice until the fine is paid to the Department
6or the applicant has entered into a payment plan and is current
7on the required payments.
8(Source: P.A. 100-604, eff. 7-13-18; 100-832, eff. 1-1-19;
9101-81, eff. 7-12-19.)
 
10    (225 ILCS 458/5-26 new)
11    Sec. 5-26. Inactive licenses. Any licensee who notifies
12the Department, in writing on forms prescribed by the
13Department, may elect to place the license on an inactive
14status and shall, subject to the rules of the Department, be
15excused from payment of renewal fees until notification in
16writing to the Department of the desire to resume active
17status. Any licensee requesting reinstatement from inactive
18status shall pay the current renewal fee, provide proof of
19meeting the continuing education requirements for the period
20of time the license is inactive (not to exceed 2 renewal
21periods), and follow the requirements for reinstatement as
22provided by rule. Any licensee whose license is in an inactive
23status shall not practice in the State of Illinois. The
24Department will update the licensee's record in the National
25Registry to show that the license is inactive.
 

 

 

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1    (225 ILCS 458/5-30)
2    (Section scheduled to be repealed on January 1, 2022)
3    Sec. 5-30. Endorsement. The Department may issue an
4appraiser license, without the required examination, to an
5applicant licensed by another state, territory, possession of
6the United States, or the District of Columbia, if (i) the
7licensing requirements of that licensing authority are, on the
8date of licensure, substantially equal to the requirements set
9forth under this Act or to a person who, at the time of the his
10or her application, possessed individual qualifications that
11were substantially equivalent to the requirements of this Act
12or (ii) the applicant provides the Department with evidence of
13good standing from the Appraisal Subcommittee National
14Registry report and a criminal history records check in
15accordance with Section 5-22. An applicant under this Section
16shall pay all of the required fees.
17(Source: P.A. 98-1109, eff. 1-1-15.)
 
18    (225 ILCS 458/5-35)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 5-35. Qualifying education requirements. (a) The
21prerequisite classroom hours necessary for a person to be
22approved to sit for the examination for licensure as a State
23certified general real estate appraiser or a State certified
24residential real estate appraiser shall be in accordance with

 

 

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1AQB criteria and established by rule.
2    (b) The prerequisite classroom hours necessary for a
3person to sit for the examination for licensure as an
4associate real estate trainee appraiser shall be established
5by rule.
6(Source: P.A. 98-1109, eff. 1-1-15.)
 
7    (225 ILCS 458/10-5)
8    (Section scheduled to be repealed on January 1, 2022)
9    Sec. 10-5. Scope of practice.
10    (a) This Act does not limit a State certified general real
11estate appraiser's appraiser in his or her scope of practice
12in a federally related transaction. A State certified general
13real estate appraiser may independently provide appraisal
14services, review, or consult related consulting relating to
15any type of property for which there is related he or she has
16experience or competency by the appraiser is competent. All
17such appraisal practice must be made in accordance with the
18provisions of USPAP, criteria established by the AQB, and
19rules adopted pursuant to this Act.
20    (b) A State certified residential real estate appraiser is
21limited in his or her scope of practice to the provisions of
22USPAP, criteria established by the AQB, and the rules adopted
23pursuant to this Act.
24    (c) A State certified residential real estate appraiser
25must have a State certified general real estate appraiser who

 

 

HB3714- 30 -LRB102 03960 SPS 13976 b

1holds a valid license under this Act co-sign all appraisal
2reports on properties other than one to 4 units of residential
3real property without regard to transaction value or
4complexity.
5    (d) An associate real estate trainee appraiser is limited
6in his or her scope of practice in all transactions in
7accordance with the provisions of USPAP, this Act, and the
8rules adopted pursuant to this Act. In addition, an associate
9real estate trainee appraiser shall be required to have a
10State certified general real estate appraiser or State
11certified residential real estate appraiser who holds a valid
12license under this Act to co-sign all appraisal reports. A
13supervising appraiser may not supervise more than 3 associate
14real estate trainee appraisers at one time. Associate real
15estate trainee appraisers shall not be limited in the number
16of concurrent supervising appraisers. A chronological
17appraisal log on an approved log form shall be maintained by
18the associate real estate trainee appraiser and shall be made
19available to the Department upon request.
20(Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15.)
 
21    (225 ILCS 458/10-10)
22    (Section scheduled to be repealed on January 1, 2022)
23    Sec. 10-10. Standards of practice. All persons licensed
24under this Act must comply with standards of professional
25appraisal practice adopted by the Department. The Department

 

 

HB3714- 31 -LRB102 03960 SPS 13976 b

1must adopt, as part of its rules, the Uniform Standards of
2Professional Appraisal Practice (USPAP) as published from time
3to time by the Appraisal Standards Board of the Appraisal
4Foundation. The Department shall consider federal laws and
5regulations regarding the licensure of real estate appraisers
6prior to adopting its rules for the administration of this
7Act. When an appraisal obtained through an appraisal
8management company is used for loan purposes, the borrower or
9loan applicant shall be provided with a written disclosure of
10the total compensation to the appraiser or appraisal firm
11within the body certification of the appraisal report and it
12shall not be redacted or otherwise obscured.
13(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
14    (225 ILCS 458/15-5)
15    (Section scheduled to be repealed on January 1, 2022)
16    Sec. 15-5. Unlicensed practice; civil penalty; injunctive
17relief; unlawful influence.
18    (a) A person who violates Section 5-5 of this Act shall, in
19addition to any other penalty provided by law, pay a civil
20penalty to the Department in an amount not to exceed $25,000
21for each violation as determined by the Secretary. The civil
22penalty shall be assessed by the Secretary after a hearing in
23accordance with the provisions of this Act regarding the
24provision of a hearing for the discipline of a license.
25    (b) The Department has the authority to investigate any

 

 

HB3714- 32 -LRB102 03960 SPS 13976 b

1activity that may violate this Act.
2    (c) A civil penalty imposed pursuant to subsection (a)
3shall be paid within 60 days after the effective date of the
4order imposing the civil penalty. The order shall constitute a
5judgment and may be filed and executed in the same manner as
6any judgment from any court of record. Any civil penalty
7collected under this Act shall be made payable to the
8Department of Financial and Professional Regulation and
9deposited into the Appraisal Administration Fund. In addition
10to or in lieu of the imposition of a civil penalty, the
11Department may report a violation of this Act or the failure or
12refusal to comply with an order of the Department to the
13Attorney General or to the appropriate State's Attorney.
14    (d) Practicing as an appraiser without holding an active a
15valid license as required under this Act is declared to be
16adverse to the public welfare, to constitute a public
17nuisance, and to cause irreparable harm to the public welfare.
18The Secretary, the Attorney General, or the State's Attorney
19of any county in the State may maintain an action for
20injunctive relief in any circuit court to enjoin any person
21from engaging in such practice.
22    Upon the filing of a verified petition in a circuit court,
23the court, if satisfied by affidavit or otherwise that a
24person has been engaged in the practice of real estate
25appraisal without an active a valid license, may enter a
26temporary restraining order without notice or bond enjoining

 

 

HB3714- 33 -LRB102 03960 SPS 13976 b

1the defendant from further practice. The showing of
2non-licensure, by affidavit or otherwise, is sufficient for
3the issuance of a temporary injunction. If it is established
4that the defendant has been or is engaged in unlawful
5practice, the court may enter an order or judgment perpetually
6enjoining the defendant from further unlawful practice. In all
7proceedings under this Section, the court, in its discretion,
8may apportion the costs among the parties interested in the
9action, including the cost of filing the complaint, service of
10process, witness fees and expenses, court reporter charges,
11and reasonable attorneys' fees. These injunction proceedings
12shall be in addition to, and not in lieu of, all penalties and
13other remedies provided in this Act.
14    (e) No person shall influence or attempt to influence
15through coercion, extortion, or bribery the independent
16judgment of an appraiser licensed or certified under this Act
17in the development, reporting, result, or review of a real
18estate appraisal. A person who violates this subsection (e) is
19guilty of a Class A misdemeanor for the first offense and a
20Class 4 felony for any subsequent offense.
21(Source: P.A. 96-844, eff. 12-23-09.)
 
22    (225 ILCS 458/15-10)
23    (Section scheduled to be repealed on January 1, 2022)
24    Sec. 15-10. Grounds for disciplinary action.
25    (a) The Department may suspend, revoke, refuse to issue,

 

 

HB3714- 34 -LRB102 03960 SPS 13976 b

1renew, or restore a license and may reprimand place on
2probation or administrative supervision, or take any
3disciplinary or non-disciplinary action, including imposing
4conditions limiting the scope, nature, or extent of the real
5estate appraisal practice of a licensee or reducing the
6appraisal rank of a licensee, and may impose an administrative
7fine not to exceed $25,000 for each violation upon a licensee
8for any one or combination of the following:
9        (1) Procuring or attempting to procure a license by
10    knowingly making a false statement, submitting false
11    information, engaging in any form of fraud or
12    misrepresentation, or refusing to provide complete
13    information in response to a question in an application
14    for licensure.
15        (2) Failing to meet the minimum qualifications for
16    licensure as an appraiser established by this Act.
17        (3) Paying money, other than for the fees provided for
18    by this Act, or anything of value to a member or employee
19    of the Board or the Department to procure licensure under
20    this Act.
21        (4) Conviction by plea of guilty or nolo contendere,
22    finding of guilt, jury verdict, or entry of judgment or by
23    sentencing of any crime, including, but not limited to,
24    convictions, preceding sentences of supervision,
25    conditional discharge, or first offender probation, under
26    the laws of any jurisdiction of the United States: (i)

 

 

HB3714- 35 -LRB102 03960 SPS 13976 b

1    that is a felony; or (ii) that is a misdemeanor, an
2    essential element of which is dishonesty, or that is
3    directly related to the practice of the profession.
4        (5) Committing an act or omission involving
5    dishonesty, fraud, or misrepresentation with the intent to
6    substantially benefit the licensee or another person or
7    with intent to substantially injure another person as
8    defined by rule.
9        (6) Violating a provision or standard for the
10    development or communication of real estate appraisals as
11    provided in Section 10-10 of this Act or as defined by
12    rule.
13        (7) Failing or refusing without good cause to exercise
14    reasonable diligence in developing, reporting, or
15    communicating an appraisal, as defined by this Act or by
16    rule.
17        (8) Violating a provision of this Act or the rules
18    adopted pursuant to this Act.
19        (9) Having been disciplined by another state, the
20    District of Columbia, a territory, a foreign nation, a
21    governmental agency, or any other entity authorized to
22    impose discipline if at least one of the grounds for that
23    discipline is the same as or the equivalent of one of the
24    grounds for which a licensee may be disciplined under this
25    Act.
26        (10) Engaging in dishonorable, unethical, or

 

 

HB3714- 36 -LRB102 03960 SPS 13976 b

1    unprofessional conduct of a character likely to deceive,
2    defraud, or harm the public.
3        (11) Accepting an appraisal assignment when the
4    employment itself is contingent upon the appraiser
5    reporting a predetermined estimate, analysis, or opinion
6    or when the fee to be paid is contingent upon the opinion,
7    conclusion, or valuation reached or upon the consequences
8    resulting from the appraisal assignment.
9        (12) Developing valuation conclusions based on the
10    race, color, religion, sex, national origin, ancestry,
11    age, marital status, family status, physical or mental
12    disability, sexual orientation, pregnancy, order of
13    protection status, military status, or unfavorable
14    military discharge, as defined under the Illinois Human
15    Rights Act, of the prospective or present owners or
16    occupants of the area or property under appraisal.
17        (13) Violating the confidential nature of government
18    records to which the licensee gained access through
19    employment or engagement as an appraiser by a government
20    agency.
21        (14) Being adjudicated liable in a civil proceeding on
22    grounds of fraud, misrepresentation, or deceit. In a
23    disciplinary proceeding based upon a finding of civil
24    liability, the appraiser shall be afforded an opportunity
25    to present mitigating and extenuating circumstances, but
26    may not collaterally attack the civil adjudication.

 

 

HB3714- 37 -LRB102 03960 SPS 13976 b

1        (15) Being adjudicated liable in a civil proceeding
2    for violation of a state or federal fair housing law.
3        (16) Engaging in misleading or untruthful advertising
4    or using a trade name or insignia of membership in a real
5    estate appraisal or real estate organization of which the
6    licensee is not a member.
7        (17) Failing to fully cooperate with a Department
8    investigation by knowingly making a false statement,
9    submitting false or misleading information, or refusing to
10    provide complete information in response to written
11    interrogatories or a written request for documentation
12    within 30 days of the request.
13        (18) Failing to include within the certificate of
14    appraisal for all written appraisal reports the
15    appraiser's license number and licensure title. All
16    appraisers providing significant contribution to the
17    development and reporting of an appraisal must be
18    disclosed in the appraisal report. It is a violation of
19    this Act for an appraiser to sign a report, transmittal
20    letter, or appraisal certification knowing that a person
21    providing a significant contribution to the report has not
22    been disclosed in the appraisal report.
23        (19) Violating the terms of a disciplinary order or
24    consent to administrative supervision order.
25        (20) Habitual or excessive use or addiction to
26    alcohol, narcotics, stimulants, or any other chemical

 

 

HB3714- 38 -LRB102 03960 SPS 13976 b

1    agent or drug that results in a licensee's inability to
2    practice with reasonable judgment, skill, or safety.
3        (21) A physical or mental illness or disability which
4    results in the inability to practice under this Act with
5    reasonable judgment, skill, or safety.
6        (22) Gross negligence in developing an appraisal or in
7    communicating an appraisal or failing to observe one or
8    more of the Uniform Standards of Professional Appraisal
9    Practice.
10        (23) A pattern of practice or other behavior that
11    demonstrates incapacity or incompetence to practice under
12    this Act.
13        (24) Using or attempting to use the seal, certificate,
14    or license of another as one's his or her own; falsely
15    impersonating any duly licensed appraiser; using or
16    attempting to use an inactive, expired, suspended, or
17    revoked license; or aiding or abetting any of the
18    foregoing.
19        (25) Solicitation of professional services by using
20    false, misleading, or deceptive advertising.
21        (26) Making a material misstatement in furnishing
22    information to the Department.
23        (27) Failure to furnish information to the Department
24    upon written request.
25    (b) The Department may reprimand suspend, revoke, or
26refuse to issue or renew an education provider's license, may

 

 

HB3714- 39 -LRB102 03960 SPS 13976 b

1reprimand, place on probation, or otherwise discipline an
2education provider and may suspend or revoke the course
3approval of any course offered by an education provider and
4may impose an administrative fine not to exceed $25,000 upon
5an education provider, for any of the following:
6        (1) Procuring or attempting to procure licensure by
7    knowingly making a false statement, submitting false
8    information, engaging in any form of fraud or
9    misrepresentation, or refusing to provide complete
10    information in response to a question in an application
11    for licensure.
12        (2) Failing to comply with the covenants certified to
13    on the application for licensure as an education provider.
14        (3) Committing an act or omission involving
15    dishonesty, fraud, or misrepresentation or allowing any
16    such act or omission by any employee or contractor under
17    the control of the provider.
18        (4) Engaging in misleading or untruthful advertising.
19        (5) Failing to retain competent instructors in
20    accordance with rules adopted under this Act.
21        (6) Failing to meet the topic or time requirements for
22    course approval as the provider of a qualifying curriculum
23    course or a continuing education course.
24        (7) Failing to administer an approved course using the
25    course materials, syllabus, and examinations submitted as
26    the basis of the course approval.

 

 

HB3714- 40 -LRB102 03960 SPS 13976 b

1        (8) Failing to provide an appropriate classroom
2    environment for presentation of courses, with
3    consideration for student comfort, acoustics, lighting,
4    seating, workspace, and visual aid material.
5        (9) Failing to maintain student records in compliance
6    with the rules adopted under this Act.
7        (10) Failing to provide a certificate, transcript, or
8    other student record to the Department or to a student as
9    may be required by rule.
10        (11) Failing to fully cooperate with an investigation
11    by the Department by knowingly making a false statement,
12    submitting false or misleading information, or refusing to
13    provide complete information in response to written
14    interrogatories or a written request for documentation
15    within 30 days of the request.
16    (c) In appropriate cases, the Department may resolve a
17complaint against a licensee through the issuance of a Consent
18to Administrative Supervision order. A licensee subject to a
19Consent to Administrative Supervision order shall be
20considered by the Department as an active licensee in good
21standing. This order shall not be reported or considered by
22the Department to be a discipline of the licensee. The records
23regarding an investigation and a Consent to Administrative
24Supervision order shall be considered confidential and shall
25not be released by the Department except as mandated by law. A
26complainant shall be notified if the his or her complaint has

 

 

HB3714- 41 -LRB102 03960 SPS 13976 b

1been resolved by a Consent to Administrative Supervision
2order.
3(Source: P.A. 97-602, eff. 8-26-11; 97-877, eff. 8-2-12;
498-1109, eff. 1-1-15.)
 
5    (225 ILCS 458/15-10.1 new)
6    Sec. 15-10.1. Citations.
7    (a) The Department may adopt rules to permit the issuance
8of citations to any licensee for failure to comply with the
9continuing education requirements set forth in this Act or as
10established by rule. The citation shall be issued to the
11licensee. For associate real estate trainee appraisers, a copy
12shall also be sent to the licensee's supervising appraiser of
13record. The citation shall contain the licensee's name, the
14licensee's address, the licensee's license number, the number
15of required hours of continuing education that have not been
16successfully completed by the licensee within the renewal
17period, and the penalty imposed, which shall not exceed
18$2,000. The issuance of a citation shall not excuse the
19licensee from completing all continuing education required for
20that renewal period.
21    (b) Service of a citation shall be made in person,
22electronically, or by mail to the licensee at the licensee's
23address of record or email address of record. Service of a
24citation must clearly state that if the cited licensee wishes
25to dispute the citation, the cited licensee may make a written

 

 

HB3714- 42 -LRB102 03960 SPS 13976 b

1request, within 30 days after the citation is served, for a
2hearing before the Department. If the cited licensee does not
3request a hearing within 30 days after the citation is served,
4then the citation shall become a final, non-disciplinary
5order, and any fine imposed is due and payable within 60 days
6after that final order. If the cited licensee requests a
7hearing within 30 days after the citation is served, the
8Department shall afford the cited licensee a hearing conducted
9in the same manner as a hearing provided for in this Act for
10any violation of this Act and shall determine whether the
11cited licensee committed the violation as charged and whether
12the fine as levied is warranted. If the violation is found, any
13fine shall constitute non-public discipline and be due and
14payable within 30 days after the order of the Secretary, which
15shall constitute a final order of the Department. No change in
16license status may be made by the Department until a final
17order of the Department has been issued.
18    (c) Payment of a fine that has been assessed pursuant to
19this Section shall not constitute disciplinary action
20reportable on the Department's website or elsewhere unless a
21licensee has previously received 2 or more citations and been
22assessed 2 or more fines.
23    (d) Nothing in this Section shall prohibit or limit the
24Department from taking further action pursuant to this Act and
25rules for additional, repeated, or continuing violations.
 

 

 

HB3714- 43 -LRB102 03960 SPS 13976 b

1    (225 ILCS 458/15-11 new)
2    Sec. 15-11. Illegal discrimination. When there has been
3an adjudication in a civil or criminal proceeding that a
4licensee has illegally discriminated while engaged in any
5activity for which a license is required under this Act, the
6Department, upon the recommendation of the Board as to the
7extent of the suspension or revocation, shall suspend or
8revoke the license of that licensee in a timely manner, unless
9the adjudication is in the appeal process. When there has been
10an order in an administrative proceeding finding that a
11licensee has illegally discriminated while engaged in any
12activity for which a license is required under this Act, the
13Department, upon recommendation of the Board as to the nature
14and extent of the discipline, shall take one or more of the
15disciplinary actions provided for in Section 15-10 in a timely
16manner, unless the administrative order is in the appeal
17process.
 
18    (225 ILCS 458/15-15)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 15-15. Investigation; notice; hearing.
21    (a) Upon the motion of the Department or the Board or upon
22a complaint in writing of a person setting forth facts that, if
23proven, would constitute grounds for suspension, revocation,
24or other disciplinary action against a licensee or applicant
25for licensure, the Department shall investigate the actions of

 

 

HB3714- 44 -LRB102 03960 SPS 13976 b

1the licensee or applicant. If, upon investigation, the
2Department believes that there may be cause for suspension,
3revocation, or other disciplinary action, the Department shall
4use the services of a State certified general real estate
5appraiser, a State certified residential real estate
6appraiser, or the Real Estate Coordinator to assist in
7determining whether grounds for disciplinary action exist
8prior to commencing formal disciplinary proceedings.
9    (b) Formal disciplinary proceedings shall commence upon
10the issuance of a written complaint describing the charges
11that are the basis of the disciplinary action and delivery of
12the detailed complaint to the address of record of the
13licensee or applicant. For an associate real estate trainee
14appraiser, a copy shall also be sent to the licensee's
15supervising appraiser of record. The Department shall notify
16the licensee or applicant to file a verified written answer
17within 20 days after the service of the notice and complaint.
18The notification shall inform the licensee or applicant of the
19his or her right to be heard in person or by legal counsel;
20that the hearing will be afforded not sooner than 20 30 days
21after service of the complaint; that failure to file an answer
22will result in a default being entered against the licensee or
23applicant; that the license may be suspended, revoked, or
24placed on probationary status; and that other disciplinary
25action may be taken pursuant to this Act, including limiting
26the scope, nature, or extent of the licensee's practice. If

 

 

HB3714- 45 -LRB102 03960 SPS 13976 b

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

 

 

HB3714- 46 -LRB102 03960 SPS 13976 b

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

 

 

HB3714- 47 -LRB102 03960 SPS 13976 b

1contempt.
2    (f) Any license that is suspended indefinitely or revoked
3may not be restored for a minimum period of 3 2 years, or as
4otherwise ordered by the Secretary.
5    (g) In addition to the provisions of this Section
6concerning the conduct of hearings and the recommendations for
7discipline, the Department has the authority to negotiate
8disciplinary and non-disciplinary settlement agreements
9concerning any license issued under this Act. All such
10agreements shall be recorded as Consent Orders or Consent to
11Administrative Supervision Orders.
12    (h) The Secretary shall have the authority to appoint an
13attorney duly licensed to practice law in the State of
14Illinois to serve as the hearing officer in any action to
15suspend, revoke, or otherwise discipline any license issued by
16the Department. The Hearing Officer shall have full authority
17to conduct the hearing.
18    (i) The Department, at its expense, shall preserve a
19record of all formal hearings of any contested case involving
20the discipline of a license. At all hearings or pre-hearing
21conferences, the Department and the licensee shall be entitled
22to have the proceedings transcribed by a certified shorthand
23reporter. A copy of the transcribed proceedings shall be made
24available to the licensee by the certified shorthand reporter
25upon payment of the prevailing contract copy rate.
26(Source: P.A. 100-831, eff. 1-1-19.)
 

 

 

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1    (225 ILCS 458/15-55)
2    (Section scheduled to be repealed on January 1, 2022)
3    Sec. 15-55. Checks, credit card charges, or orders to
4Department dishonored because of insufficient funds. Any
5person who:
6        (1) delivers a check or other payment to the
7    Department that is returned to the Department unpaid by
8    the financial institution upon which it was drawn; or
9        (2) presents a credit card or debit card for payment
10    that is invalid or expired or against which charges by the
11    Department are declined or dishonored;
12shall pay to the Department, in addition to the amount already
13owed to the Department, a fine of $50. The fines imposed by
14this Section are in addition to any other discipline provided
15under this Act for unlicensed practice or practice on a
16non-renewed license. The Department shall notify the applicant
17or licensee that payment of fees and fines shall be paid to the
18Department by certified check or money order within 30
19calendar days after the notification. If, after the expiration
20of 30 days from the date of the notification, the person has
21failed to submit the necessary remittance, the Department
22shall automatically terminate the license or deny the
23application, without hearing. After If, after termination or
24denial, the person seeking seeks a license, he or she must
25apply to the Department for restoration or issuance of the

 

 

HB3714- 49 -LRB102 03960 SPS 13976 b

1license and pay all fees and fines due to the Department. The
2Department may establish a fee for the processing of an
3application for restoration of a license to pay all of the
4expenses of processing the application. The Secretary may
5waive the fines due under this Section in individual cases
6where the Secretary finds that the penalties or fines would be
7unreasonable or unnecessarily burdensome.
8(Source: P.A. 96-844, eff. 12-23-09.)
 
9    (225 ILCS 458/20-5)
10    (Section scheduled to be repealed on January 1, 2022)
11    Sec. 20-5. Education providers.
12    (a) No person shall operate an education provider entity
13without possessing an active license issued by the Department.
14Only Beginning July 1, 2002, only education providers licensed
15or otherwise approved by the Department may provide the
16qualifying and continuing education courses required for
17licensure under this Act. Every person that desires to obtain
18an education provider license shall make application to the
19Department in a manner prescribed by the Department and pay
20the fee prescribed by rule.
21    (b) A person or entity seeking to be licensed as an
22education provider under this Act shall provide satisfactory
23evidence of the following:
24        (1) a sound financial base for establishing,
25    promoting, and delivering the necessary courses;

 

 

HB3714- 50 -LRB102 03960 SPS 13976 b

1        (2) (blank); a sufficient number of qualified
2    instructors;
3        (3) (blank); adequate support personnel to assist with
4    administrative matters and technical assistance;
5        (4) (blank); a written policy dealing with procedures
6    for management of grievances and fee refunds;
7        (5) a qualified administrator, who is responsible for
8    the administration of the education provider, courses, and
9    the actions of the instructors; and
10        (6) any other requirements as provided by rule; and .
11        (7) proof of good standing with the Secretary of State
12    and authority to conduct businesses in this State.
13    (c) All applicants for an education provider's license
14shall make initial application to the Department on forms
15provided by the Department, or through a multi-state licensing
16system as designated by the Secretary, and pay the appropriate
17fee as provided by rule. The term, expiration date, and
18renewal of an education provider's license shall be
19established by rule.
20    (d) An education provider shall provide each successful
21course participant with a certificate of completion signed by
22the school administrator. The format and content of the
23certificate shall be specified by rule.
24    (e) All education providers shall provide to the
25Department a monthly roster of all successful course
26participants as provided by rule.

 

 

HB3714- 51 -LRB102 03960 SPS 13976 b

1(Source: P.A. 100-604, eff. 7-13-18.)
 
2    (225 ILCS 458/20-10)
3    (Section scheduled to be repealed on January 1, 2022)
4    Sec. 20-10. Course approval.
5    (a) Only courses offered by licensed education providers
6and approved by the Department, courses approved by the AQB,
7or courses approved by jurisdictions monitored regulated by
8the Appraisal Subcommittee shall be used to meet the
9requirements of this Act and rules.
10    (b) An education provider licensed under this Act may
11submit courses to the Department, or through a multi-state
12licensing system as designated by the Secretary, for approval.
13The criteria, requirements, and fees for courses shall be
14established by rule in accordance with this Act and the
15criteria established by the AQB.
16    (c) For each course approved, the Department shall issue a
17license to the education provider. The term, expiration date,
18and renewal of a course approval shall be established by rule.
19    (d) An education provider must use an instructor for each
20course approved by the Department who (i) holds a valid real
21estate appraisal license in good standing as a State certified
22general real estate appraiser or a State certified residential
23real estate appraiser in Illinois or any other jurisdiction
24monitored by the Appraisal Subcommittee, (ii) holds a valid
25teaching certificate issued by the State of Illinois, or (iii)

 

 

HB3714- 52 -LRB102 03960 SPS 13976 b

1is a faculty member in good standing with an accredited
2college or university or community college, or (iv) is an
3approved appraisal instructor from an appraisal organization
4that is a member of the Appraisal Foundation. An education
5provider must satisfy any requirements as established by rule.
6(Source: P.A. 100-604, eff. 7-13-18.)
 
7    (225 ILCS 458/25-10)
8    (Section scheduled to be repealed on January 1, 2022)
9    Sec. 25-10. Real Estate Appraisal Administration and
10Disciplinary Board; appointment.
11    (a) There is hereby created the Real Estate Appraisal
12Administration and Disciplinary Board. The Board shall be
13composed of 10 persons appointed by the Governor, plus the
14Coordinator of the Real Estate Appraisal Division. Members
15shall be appointed to the Board subject to the following
16conditions:
17        (1) All appointed members shall have been residents
18    and citizens of this State for at least 5 years prior to
19    the date of appointment.
20        (2) The appointed membership of the Board should
21    reasonably reflect the geographic distribution of the
22    population of the State.
23        (3) Four appointed members shall have been actively
24    engaged and currently licensed as State certified general
25    real estate appraisers for a period of not less than 5

 

 

HB3714- 53 -LRB102 03960 SPS 13976 b

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

 

 

HB3714- 54 -LRB102 03960 SPS 13976 b

1consideration to recommendations by members and organizations
2representing the profession.
3    In making the appointments as provided in paragraph (5) of
4this subsection, the Governor shall give due consideration to
5the recommendations by members and organizations representing
6the real estate industry.
7    In making the appointment as provided in paragraph (6) of
8this subsection, the Governor shall give due consideration to
9the recommendations by members and organizations representing
10financial institutions.
11    (b) The members' terms shall be for 4 years or until a
12successor is appointed and expire upon completion of the term.
13No member shall be reappointed to the Board for a term that
14would cause the member's his or her cumulative service to the
15Board to exceed 10 years. Appointments to fill vacancies shall
16be for the unexpired portion of the term.
17    (c) The Governor may terminate the appointment of a member
18for cause that, in the opinion of the Governor, reasonably
19justifies the termination. Cause for termination may include,
20without limitation, misconduct, incapacity, neglect of duty,
21or missing 4 Board meetings during any one fiscal calendar
22year.
23    (d) A majority of the Board members shall constitute a
24quorum. A vacancy in the membership of the Board shall not
25impair the right of a quorum to exercise all of the rights and
26perform all of the duties of the Board.

 

 

HB3714- 55 -LRB102 03960 SPS 13976 b

1    (e) The Board shall meet at least monthly quarterly and
2may be convened by the Chairperson, Vice-Chairperson, or 3
3members of the Board upon 10 days written notice.
4    (f) The Board shall, annually at the first meeting of the
5fiscal year, elect a Chairperson and Vice-Chairperson from its
6members. The Chairperson shall preside over the meetings and
7shall coordinate with the Coordinator in developing and
8distributing an agenda for each meeting. In the absence of the
9Chairperson, the Vice-Chairperson shall preside over the
10meeting.
11    (g) The Coordinator of the Real Estate Appraisal Division
12shall serve as a member of the Board without vote.
13    (h) The Board shall advise and make recommendations to the
14Department on the education and experience qualifications of
15any applicant for initial licensure as a State certified
16general real estate appraiser or a State certified residential
17real estate appraiser. The Department shall not make any
18decisions concerning education or experience qualifications of
19an applicant for initial licensure as a State certified
20general real estate appraiser or a State certified residential
21real estate appraiser without having first received the advice
22and recommendation of the Board and shall give due
23consideration to all such advice and recommendations; however,
24if the Board does not render advice or make a recommendation
25within a reasonable amount of time, then the Department may
26render a decision.

 

 

HB3714- 56 -LRB102 03960 SPS 13976 b

1    (i) Except as provided in Section 15-17 of this Act, the
2Board shall hear and make recommendations to the Secretary on
3disciplinary matters that require a formal evidentiary
4hearing. The Secretary shall give due consideration to the
5recommendations of the Board involving discipline and
6questions involving standards of professional conduct of
7licensees.
8    (j) The Department shall seek and the Board shall provide
9recommendations to the Department consistent with the
10provisions of this Act and for the administration and
11enforcement of all rules adopted pursuant to this Act. The
12Department shall give due consideration to such
13recommendations prior to adopting rules.
14    (k) The Department shall seek and the Board shall provide
15recommendations to the Department on the approval of all
16courses submitted to the Department pursuant to this Act and
17the rules adopted pursuant to this Act. The Department shall
18not approve any courses without having first received the
19recommendation of the Board and shall give due consideration
20to such recommendations prior to approving and licensing
21courses; however, if the Board does not make a recommendation
22within a reasonable amount of time, then the Department may
23approve courses.
24    (l) Each voting member of the Board shall receive a per
25diem stipend in an amount to be determined by the Secretary.
26While engaged in the performance of duties, each Each member

 

 

HB3714- 57 -LRB102 03960 SPS 13976 b

1shall be paid the his or her necessary expenses while engaged
2in the performance of his or her duties.
3    (m) Members of the Board shall be immune from suit in an
4action based upon any disciplinary proceedings or other acts
5performed in good faith as members of the Board.
6    (n) If the Department disagrees with any advice or
7recommendation provided by the Board under this Section to the
8Secretary or the Department, then notice of such disagreement
9must be provided to the Board by the Department.
10    (o) (Blank). Upon resolution adopted at any Board meeting,
11the exercise of any Board function, power, or duty enumerated
12in this Section or in subsection (d) of Section 15-10 of this
13Act may be suspended. The exercise of any suspended function,
14power, or duty of the Board may be reinstated by a resolution
15adopted at a subsequent Board meeting. Any resolution adopted
16pursuant to this Section shall take effect immediately.
17(Source: P.A. 100-886, eff. 8-14-18.)
 
18    (225 ILCS 458/25-15)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 25-15. Coordinator of Real Estate Appraisal
21Coordinator; appointment; duties. The Secretary shall appoint,
22subject to the Personnel Code, a Coordinator of Real Estate
23Appraisal. In appointing the Coordinator, the Secretary shall
24give due consideration to recommendations made by members,
25organizations, and associations of the real estate appraisal

 

 

HB3714- 58 -LRB102 03960 SPS 13976 b

1industry. The On or after January 1, 2010, the Coordinator
2must hold a current, valid State certified general real estate
3appraiser license for a period of at least 5 years prior to
4appointment. The Coordinator shall not practice during the
5term of the his or her appointment. The Coordinator must take
6the 30-hour National Instructors Course on Uniform Standards
7of Professional Appraisal Practice. The Coordinator shall be
8credited with all fees that came due during the Coordinator's
9his or her employment. The Coordinator shall:
10        (1) serve as a member of the Real Estate Appraisal
11    Administration and Disciplinary Board without vote;
12        (2) be the direct liaison between the Department, the
13    profession, and the real estate appraisal industry
14    organizations and associations;
15        (3) prepare and circulate to licensees such
16    educational and informational material as the Department
17    deems necessary for providing guidance or assistance to
18    licensees;
19        (4) appoint necessary committees to assist in the
20    performance of the functions and duties of the Department
21    under this Act;
22        (5) (blank); and
23        (6) be authorized to investigate and determine the
24    facts of a complaint; the coordinator may interview
25    witnesses, the complainant, and any licensees involved in
26    the alleged matter and make a recommendation as to the

 

 

HB3714- 59 -LRB102 03960 SPS 13976 b

1    findings of fact.
2(Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15.)
 
3    (225 ILCS 458/25-16)
4    (Section scheduled to be repealed on January 1, 2022)
5    Sec. 25-16. Staff. The Department shall employ a minimum
6of one investigator with an active certified appraiser license
7per 2,000 licensees in order to have sufficient staff to
8perform the Department's obligations under this Act.
9(Source: P.A. 100-832, eff. 1-1-19.)
 
10    (225 ILCS 458/25-20)
11    (Section scheduled to be repealed on January 1, 2022)
12    Sec. 25-20. Department; powers and duties. The Department
13of Financial and Professional Regulation shall exercise the
14powers and duties prescribed by the Civil Administrative Code
15of Illinois for the administration of licensing Acts and shall
16exercise such other powers and duties as are prescribed by
17this Act for the administration of this Act. The Department
18may contract with third parties for services necessary for the
19proper administration of this Act, including without
20limitation, investigators with the proper knowledge, training,
21and skills to properly investigate complaints against real
22estate appraisers.
23    The Department shall maintain and update a registry of the
24names and addresses of all licensees and a listing of

 

 

HB3714- 60 -LRB102 03960 SPS 13976 b

1disciplinary orders issued pursuant to this Act and shall
2transmit the registry, along with any national registry fees
3that may be required, to the entity specified by, and in a
4manner consistent with, Title XI of the federal Financial
5Institutions Reform, Recovery and Enforcement Act of 1989.
6(Source: P.A. 96-844, eff. 12-23-09.)
 
7    (225 ILCS 458/25-25)
8    (Section scheduled to be repealed on January 1, 2022)
9    Sec. 25-25. Rules. The Department, after notifying and
10considering any recommendations of the Board, if any, shall
11adopt rules that may be necessary for administration,
12implementation, and enforcement of the Act.
13(Source: P.A. 96-844, eff. 12-23-09.)
 
14    (225 ILCS 458/25-35 new)
15    Sec. 25-35. No private right of action. Except as
16otherwise expressly provided for in this Act, nothing in this
17Act shall be construed to grant to any person a private right
18of action for damages or to enforce the provisions of this Act
19or the rules adopted under this Act.
 
20    (225 ILCS 458/30-5)
21    (Section scheduled to be repealed on January 1, 2022)
22    Sec. 30-5. Savings provisions.
23    (a) This Act is intended to replace the Real Estate

 

 

HB3714- 61 -LRB102 03960 SPS 13976 b

1Appraiser Licensing Act in all respects.
2    (b) Beginning July 1, 2002, the rights, powers, and duties
3exercised by the Office of Banks and Real Estate under the Real
4Estate Appraiser Licensing Act shall continue to be vested in,
5to be the obligation of, and to be exercised by the Division of
6Real Estate of the Department of Financial and Professional
7Regulation Office of Banks and Real Estate under the
8provisions of this Act.
9    (c) This Act does not affect any act done, ratified, or
10cancelled, any right occurring or established, or any action
11or proceeding commenced in an administrative, civil, or
12criminal cause before July 1, 2002 by the Office of Banks and
13Real Estate under the Real Estate Appraiser Licensing Act.
14Those actions or proceedings may be prosecuted and continued
15by the Division of Real Estate of the Department of Financial
16and Professional Regulation Office of Banks and Real Estate
17under this Act.
18    (d) This Act does not affect any license, certificate,
19permit, or other form of licensure issued by the Office of
20Banks and Real Estate under the Real Estate Appraiser
21Licensing Act, except as provided is subsection (c) of Section
225-25. All such licenses, certificates, permits, or other form
23of licensure shall continue to be valid under the terms and
24conditions of this Act.
25    (e) The rules adopted by the Office of Banks and Real
26Estate relating to the Real Estate Appraiser Licensing Act,

 

 

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1unless inconsistent with the provisions of this Act, are not
2affected by this Act, and on July 1, 2002, those rules become
3rules under this Act. The Office of Banks and Real Estate
4shall, as soon as practicable, adopt new or amended rules
5consistent with the provisions of this Act.
6    (f) This Act does not affect any discipline, suspension,
7or termination that has occurred under the Real Estate
8Appraiser Licensing Act or other predecessor Act. Any action
9for discipline, suspension, or termination instituted under
10the Real Estate Appraiser Licensing Act shall be continued
11under this Act.
12(Source: P.A. 92-180, eff. 7-1-02.)
 
13    (225 ILCS 458/10-17 rep.)
14    (225 ILCS 458/30-10 rep.)
15    Section 15. The Real Estate Appraiser Licensing Act of
162002 is amended by repealing Sections 10-17 and 30-10.
 
17    Section 20. The Appraisal Management Company Registration
18Act is amended by changing Sections 10 and 15 as follows:
 
19    (225 ILCS 459/10)
20    Sec. 10. Definitions. In this Act:
21    "Address of record" means the principal address recorded
22by the Department in the applicant's or registrant's
23application file or registration file maintained by the

 

 

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1Department's registration maintenance unit.
2    "Applicant" means a person or entity who applies to the
3Department for a registration under this Act.
4    "Appraisal" means (noun) the act or process of developing
5an opinion of value; an opinion of value (adjective) of or
6pertaining to appraising and related functions.
7    "Appraisal firm" means an appraisal entity that is 100%
8owned and controlled by a person or persons licensed in
9Illinois as a certified general real estate appraiser or a
10certified residential real estate appraiser. An appraisal firm
11does not include an appraisal management company.
12    "Appraisal management company" means any corporation,
13limited liability company, partnership, sole proprietorship,
14subsidiary, unit, or other business entity that directly or
15indirectly: (1) provides appraisal management services to
16creditors or secondary mortgage market participants, including
17affiliates; (2) provides appraisal management services in
18connection with valuing the consumer's principal dwelling as
19security for a consumer credit transaction (including consumer
20credit transactions incorporated into securitizations); and
21(3) within a given year, oversees an appraiser panel of any
22size of State-certified appraisers in Illinois; and (4) any
23appraisal management company that, within a given 12-month
24period year, oversees an appraiser panel of 16 or more
25State-certified appraisers in Illinois or 25 or more
26State-certified or State-licensed appraisers in 2 or more

 

 

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1jurisdictions shall be subject to the appraisal management
2company national registry fee in addition to the appraiser
3panel fee. "Appraisal management company" includes a hybrid
4entity.
5    "Appraisal management company national registry fee" means
6the fee implemented pursuant to Title XI of the federal
7Financial Institutions Reform, Recovery and Enforcement Act of
81989 for an appraiser management company's national registry.
9    "Appraisal management services" means one or more of the
10following:
11        (1) recruiting, selecting, and retaining appraisers;
12        (2) contracting with State-certified or State-licensed
13    appraisers to perform appraisal assignments;
14        (3) managing the process of having an appraisal
15    performed, including providing administrative services
16    such as receiving appraisal orders and appraisal reports;
17    submitting completed appraisal reports to creditors and
18    secondary market participants; collecting compensation
19    from creditors, underwriters, or secondary market
20    participants for services provided; or paying appraisers
21    for services performed; or
22        (4) reviewing and verifying the work of appraisers.
23    "Appraiser panel" means a network, list, or roster of
24licensed or certified appraisers approved by the appraisal
25management company or by the end-user client to perform
26appraisals as independent contractors for the appraisal

 

 

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1management company. "Appraiser panel" includes both appraisers
2accepted by an appraisal management company for consideration
3for future appraisal assignments and appraisers engaged by an
4appraisal management company to perform one or more
5appraisals. For the purposes of determining the size of an
6appraiser panel, only independent contractors of hybrid
7entities shall be counted towards the appraiser panel.
8    "Appraiser panel fee" means the amount collected from a
9registrant that, where applicable, includes an appraisal
10management company's national registry fee.
11    "Appraisal report" means a written appraisal by an
12appraiser to a client.
13    "Appraisal practice service" means valuation services
14performed by an individual acting as an appraiser, including,
15but not limited to, appraisal or appraisal review.
16    "Appraisal subcommittee" means the appraisal subcommittee
17of the Federal Financial Institutions Examination Council as
18established by Title XI.
19    "Appraiser" means a person who performs real estate or
20real property appraisals.
21    "Assignment result" means an appraiser's opinions and
22conclusions developed specific to an assignment.
23    "Audit" includes, but is not limited to, an annual or
24special audit, visit, or review necessary under this Act or
25required by the Secretary or the Secretary's authorized
26representative in carrying out the duties and responsibilities

 

 

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1under this Act.
2    "Client" means the party or parties who engage an
3appraiser by employment or contract in a specific appraisal
4assignment.
5    "Controlling Person" means:
6        (1) an owner, officer, or director of an entity
7    seeking to offer appraisal management services;
8        (2) an individual employed, appointed, or authorized
9    by an appraisal management company who has the authority
10    to:
11            (A) enter into a contractual relationship with a
12        client for the performance of an appraisal management
13        service or appraisal practice service; and
14            (B) enter into an agreement with an appraiser for
15        the performance of a real estate appraisal activity;
16        (3) an individual who possesses, directly or
17    indirectly, the power to direct or cause the direction of
18    the management or policies of an appraisal management
19    company; or
20        (4) an individual who will act as the sole compliance
21    officer with regard to this Act and any rules adopted
22    under this Act.
23    "Coordinator" means the Coordinator of the Appraisal
24Management Company Registration Unit of the Department or his
25or her designee.
26    "Covered transaction" means a consumer credit transaction

 

 

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1secured by a consumer's principal dwelling.
2    "Department" means the Department of Financial and
3Professional Regulation.
4    "Email address of record" means the designated email
5address recorded by the Department in the applicant's
6application file or the registrant's registration file
7maintained by the Department's registration maintenance unit.
8    "Entity" means a corporation, a limited liability company,
9partnership, a sole proprietorship, or other entity providing
10services or holding itself out to provide services as an
11appraisal management company or an appraisal management
12service.
13    "End-user client" means any person who utilizes or engages
14the services of an appraiser through an appraisal management
15company.
16    "Federally regulated appraisal management company" means
17an appraisal management company that is owned and controlled
18by an insured depository institution, as defined in 12 U.S.C.
191813, or an insured credit union, as defined in 12 U.S.C. 1752,
20and regulated by the Office of the Comptroller of the
21Currency, the Federal Reserve Board, the National Credit Union
22Association, or the Federal Deposit Insurance Corporation.
23    "Financial institution" means any bank, savings bank,
24savings and loan association, credit union, mortgage broker,
25mortgage banker, registrant under the Consumer Installment
26Loan Act or the Sales Finance Agency Act, or a corporate

 

 

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1fiduciary, subsidiary, affiliate, parent company, or holding
2company of any registrant, or any institution involved in real
3estate financing that is regulated by State or federal law.
4    "Foreign appraisal management company" means any appraisal
5management company organized under the laws of any other state
6of the United States, the District of Columbia, or any other
7jurisdiction of the United States.
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    "Multi-state licensing system" means a web-based platform
12that allows an applicant to submit the his or her application
13or registration renewal to the Department online.
14    "Person" means individuals, entities, sole
15proprietorships, corporations, limited liability companies,
16and alien, foreign, or domestic partnerships, except that when
17the context otherwise requires, the term may refer to a single
18individual or other described entity.
19    "Principal dwelling" means a residential structure that
20contains one to 4 units, whether or not that structure is
21attached to real property. "Principal dwelling" includes an
22individual condominium unit, cooperative unit, manufactured
23home, mobile home, and trailer, if it is used as a residence.
24    "Principal office" means the actual, physical business
25address, which shall not be a post office box or a virtual
26business address, of a registrant, at which (i) the Department

 

 

HB3714- 69 -LRB102 03960 SPS 13976 b

1may contact the registrant and (ii) records required under
2this Act are maintained.
3    "Qualified to transact business in this State" means being
4in compliance with the requirements of the Business
5Corporation Act of 1983.
6    "Quality control review" means a review of an appraisal
7report for compliance and completeness, including grammatical,
8typographical, or other similar errors, unrelated to
9developing an opinion of value.
10    "Real estate" means an identified parcel or tract of land,
11including any improvements.
12    "Real estate related financial transaction" means any
13transaction involving:
14        (1) the sale, lease, purchase, investment in, or
15    exchange of real property, including interests in property
16    or the financing thereof;
17        (2) the refinancing of real property or interests in
18    real property; and
19        (3) the use of real property or interest in property
20    as security for a loan or investment, including mortgage
21    backed securities.
22    "Real property" means the interests, benefits, and rights
23inherent in the ownership of real estate.
24    "Secretary" means the Secretary of Financial and
25Professional Regulation.
26    "USPAP" means the Uniform Standards of Professional

 

 

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1Appraisal Practice as adopted by the Appraisal Standards Board
2under Title XI.
3    "Valuation" means any estimate of the value of real
4property in connection with a creditor's decision to provide
5credit, including those values developed under a policy of a
6government sponsored enterprise or by an automated valuation
7model or other methodology or mechanism.
8    "Written notice" means a communication transmitted by mail
9or by electronic means that can be verified between an
10appraisal management company and a licensed or certified real
11estate appraiser.
12(Source: P.A. 100-604, eff. 7-13-18.)
 
13    (225 ILCS 459/15)
14    Sec. 15. Exemptions.
15    (a) Nothing in this Act shall apply to any of the
16following:
17        (1) an agency of the federal, State, county, or
18    municipal government or an officer or employee of a
19    government agency, or person, described in this Section
20    when acting within the scope of employment of the officer
21    or employee;
22        (2) a corporate relocation company when the appraisal
23    is not used for mortgage purposes and the end user client
24    is an employer company;
25        (3) any person licensed in this State under any other

 

 

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1    Act while engaged in the activities or practice for which
2    he or she is licensed;
3        (4) any person licensed to practice law in this State
4    who is working with or on behalf of a client of that person
5    in connection with one or more appraisals for that client;
6        (5) an appraiser that enters into an agreement,
7    whether written or otherwise, with another appraiser for
8    the performance of an appraisal, and upon the completion
9    of the appraisal, the report of the appraiser performing
10    the appraisal is signed by both the appraiser who
11    completed the appraisal and the appraiser who requested
12    the completion of the appraisal, except that an appraisal
13    management company may not avoid the requirement of
14    registration under this Act by requiring an employee of
15    the appraisal management company who is an appraiser to
16    sign an appraisal that was completed by another appraiser
17    who is part of the appraisal panel of the appraisal
18    management company;
19        (6) any person acting as an agent of the Illinois
20    Department of Transportation in the acquisition or
21    relinquishment of land for transportation issues to the
22    extent of their contract scope;
23        (7) a design professional entity when the appraisal is
24    not used for mortgage purposes and the end user client is
25    an agency of State government or a unit of local
26    government;

 

 

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1        (8) an appraiser firm whose ownership is appropriately
2    certified under the Real Estate Appraiser Licensing Act of
3    2002; or
4        (9) an appraisal management company solely engaged in
5    non-residential appraisal management services; or .
6        (10) a department or division of an entity that
7    provides appraisal management services only to that
8    entity.
9    (b) A federally regulated appraisal management company
10shall register with the Department for the sole purpose of
11collecting required information for, and to pay all fees
12associated with, the State of Illinois' obligation to register
13the federally regulated appraisal management company with the
14Appraisal Management Companies National Registry, but the
15federally regulated appraisal management company is otherwise
16exempt from all other provisions in this Act.
17    (c) In the event that the Final Interim Rule of the federal
18Dodd-Frank Wall Street Reform and Consumer Protection Act
19provides that an appraisal management company is a subsidiary
20owned and controlled by a financial institution regulated by a
21federal financial institution's regulatory agency and is
22exempt from State appraisal management company registration
23requirements, the Department, shall, by rule, provide for the
24implementation of such an exemption.
25(Source: P.A. 100-604, eff. 7-13-18.)
 
26    Section 99. Effective date. This Act takes effect January

 

 

HB3714- 73 -LRB102 03960 SPS 13976 b

11, 2022, except that Section 5 and this Section take effect
2immediately.

 

 

HB3714- 74 -LRB102 03960 SPS 13976 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 80/4.32
4    5 ILCS 80/4.41 new
5    225 ILCS 458/1-10
6    225 ILCS 458/1-12 new
7    225 ILCS 458/5-5
8    225 ILCS 458/5-10
9    225 ILCS 458/5-15
10    225 ILCS 458/5-20
11    225 ILCS 458/5-20.5
12    225 ILCS 458/5-22
13    225 ILCS 458/5-25
14    225 ILCS 458/5-26 new
15    225 ILCS 458/5-30
16    225 ILCS 458/5-35
17    225 ILCS 458/10-5
18    225 ILCS 458/10-10
19    225 ILCS 458/15-5
20    225 ILCS 458/15-10
21    225 ILCS 458/15-10.1 new
22    225 ILCS 458/15-11 new
23    225 ILCS 458/15-15
24    225 ILCS 458/15-55
25    225 ILCS 458/20-5

 

 

HB3714- 75 -LRB102 03960 SPS 13976 b

1    225 ILCS 458/20-10
2    225 ILCS 458/25-10
3    225 ILCS 458/25-15
4    225 ILCS 458/25-16
5    225 ILCS 458/25-20
6    225 ILCS 458/25-25
7    225 ILCS 458/25-35 new
8    225 ILCS 458/30-5
9    225 ILCS 458/10-17 rep.
10    225 ILCS 458/30-10 rep.
11    225 ILCS 459/10
12    225 ILCS 459/15