Illinois General Assembly - Full Text of HB3714
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Full Text of HB3714  102nd General Assembly

HB3714eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB3714 EngrossedLRB102 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 Sections 4.32 and 4.37 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 Acts repealed on January 1, 2022.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8Acts are repealed on January 1, 2022: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 80/4.37)
7    Sec. 4.37. Acts and Articles repealed on January 1, 2027.
8The following are repealed on January 1, 2027:
9    The Clinical Psychologist Licensing Act.
10    The Illinois Optometric Practice Act of 1987.
11    Articles II, III, IV, V, VI, VIIA, VIIB, VIIC, XVII, XXXI,
12XXXI 1/4, and XXXI 3/4 of the Illinois Insurance Code.
13    The Boiler and Pressure Vessel Repairer Regulation Act.
14    The Marriage and Family Therapy Licensing Act.
15    The Real Estate Appraiser Licensing Act of 2002.
16(Source: P.A. 99-572, eff. 7-15-16; 99-909, eff. 12-16-16;
1799-910, eff. 12-16-16; 99-911, eff. 12-16-16; 100-201, eff.
188-18-17; 100-372, eff. 8-25-17.)
 
19    Section 10. The Real Estate Appraiser Licensing Act of
202002 is amended by changing Sections 1-10, 5-5, 5-10, 5-15,
215-20, 5-20.5, 5-22, 5-25, 5-30, 5-35, 10-5, 10-10, 15-5,
2215-10, 15-15, 15-55, 20-5, 20-10, 25-10, 25-15, 25-16, 25-20,
2325-25, and 30-5 and by adding Sections 1-12, 5-26, 15-10.1,
2415-11, and 25-35 as follows:
 

 

 

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1    (225 ILCS 458/1-10)
2    (Section scheduled to be repealed on January 1, 2022)
3    Sec. 1-10. Definitions. As used in this Act, unless the
4context otherwise requires:
5    "Accredited college or university, junior college, or
6community college" means a college or university, junior
7college, or community college that is approved or accredited
8by the Board of Higher Education, a regional or national
9accreditation association, or by an accrediting agency that is
10recognized by the U.S. Secretary of Education.
11    "Address of record" means the designated street address,
12which may not be a post office box, recorded by the Department
13in the applicant's or licensee's application file or license
14file as maintained by the Department's licensure maintenance
15unit. It is the duty of the applicant or licensee to inform the
16Department of any change of address and those changes must be
17made either through the Department's website or by contacting
18the Department.
19    "Applicant" means person who applies to the Department for
20a license under this Act.
21    "Appraisal" means (noun) the act or process of developing
22an opinion of value; an opinion of value (adjective) of or
23pertaining to appraising and related functions, such as
24appraisal practice or appraisal services.
25    "Appraisal assignment" means a valuation service provided

 

 

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1pursuant to as a consequence of an agreement between an
2appraiser and a client.
3    "Appraisal consulting" means the act or process of
4developing an analysis, recommendation, or opinion to solve a
5problem, where an opinion of value is a component of the
6analysis leading to the assignment results.
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. "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 practice" means valuation services performed by
6an individual acting as an appraiser, including, but not
7limited to, appraisal or , appraisal review, or appraisal
8consulting.
9    "Appraisal report" means any communication, written or
10oral, of an appraisal or appraisal review that is transmitted
11to a client upon completion of an assignment.
12    "Appraisal review" means the act or process of developing
13and communicating an opinion about the quality of another
14appraiser's work that was performed as part of an appraisal,
15appraisal review, or appraisal assignment.
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 competently and in a manner that is
21independent, impartial, and objective.
22    "Appraiser panel" means a network, list, or roster of
23licensed or certified appraisers approved by the appraisal
24management company or by the end-user client to perform
25appraisals as independent contractors for the appraisal
26management company. "Appraiser panel" includes both appraisers

 

 

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1accepted by an appraisal management company for consideration
2for future appraisal assignments and appraisers engaged by an
3appraisal management company to perform one or more
4appraisals. For the purposes of determining the size of an
5appraiser panel, only independent contractors of hybrid
6entities shall be counted towards the appraiser panel.
7    "AQB" means the Appraisal Qualifications Board of the
8Appraisal Foundation.
9    "Associate real estate trainee appraiser" means an
10entry-level appraiser who holds a license of this
11classification under this Act with restrictions as to the
12scope of practice in accordance with this Act.
13    "Automated valuation model" means an automated system that
14is used to derive a property value through the use of available
15property records and various analytic methodologies such as
16comparable sales prices, home characteristics, and price
17changes.
18    "Board" means the Real Estate Appraisal Administration and
19Disciplinary Board.
20    "Broker price opinion" means an estimate or analysis of
21the probable selling price of a particular interest in real
22estate, which may provide a varying level of detail about the
23property's condition, market, and neighborhood and information
24on comparable sales. The activities of a real estate broker or
25managing broker engaging in the ordinary course of business as
26a broker, as defined in this Section, shall not be considered a

 

 

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1broker price opinion if no compensation is paid to the broker
2or managing broker, other than compensation based upon the
3sale or rental of real estate.
4    "Classroom hour" means 50 minutes of instruction out of
5each 60 minute segment of coursework.
6    "Client" means the party or parties who engage an
7appraiser by employment or contract in a specific appraisal
8assignment.
9    "Comparative market analysis" is an analysis or opinion
10regarding pricing, marketing, or financial aspects relating to
11a specified interest or interests in real estate that may be
12based upon an analysis of comparative market data, the
13expertise of the real estate broker or managing broker, and
14such other factors as the broker or managing broker may deem
15appropriate in developing or preparing such analysis or
16opinion. The activities of a real estate broker or managing
17broker engaging in the ordinary course of business as a
18broker, as defined in this Section, shall not be considered a
19comparative market analysis if no compensation is paid to the
20broker or managing broker, other than compensation based upon
21the sale or rental of real estate.
22    "Coordinator" means the Coordinator of Real Estate
23Appraisal Coordinator created in Section 25-15 of the Division
24of Professional Regulation of the Department of Financial and
25Professional Regulation.
26    "Department" means the Department of Financial and

 

 

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1Professional Regulation.
2    "Email address of record" means the designated email
3address recorded by the Department in the applicant's
4application file or the licensee's license file maintained by
5the Department.
6    "Evaluation" means a valuation permitted by the appraisal
7regulations of the Federal Financial Institutions Examination
8Council and its federal agencies for transactions that qualify
9for the appraisal threshold exemption, business loan
10exemption, or subsequent transaction exemption.
11    "Federal financial institutions regulatory agencies" means
12the Board of Governors of the Federal Reserve System, the
13Federal Deposit Insurance Corporation, the Office of the
14Comptroller of the Currency, the Consumer Financial Protection
15Bureau, and the National Credit Union Administration.
16    "Federally related transaction" means any real
17estate-related financial transaction in which a federal
18financial institutions regulatory agency engages in, contracts
19for, or regulates and requires the services of an appraiser.
20    "Financial institution" means any bank, savings bank,
21savings and loan association, credit union, mortgage broker,
22mortgage banker, licensee under the Consumer Installment Loan
23Act or the Sales Finance Agency Act, or a corporate fiduciary,
24subsidiary, affiliate, parent company, or holding company of
25any such licensee, or any institution involved in real estate
26financing that is regulated by state or federal law.

 

 

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1    "Hybrid entity" means an appraisal management company that
2hires an appraiser as an employee to perform an appraisal and
3engages an independent contractor to perform an appraisal.
4    "License" means the privilege conferred by the Department
5to a person that has fulfilled all requirements prerequisite
6to any type of licensure under this Act.
7    "Licensee" means any person, as defined in this Section,
8who holds a valid unexpired license.
9    "Multi-state licensing system" means a web-based platform
10that allows an applicant to submit the his or her application
11or license renewal application to the Department online.
12    "Person" means an individual, entity, sole proprietorship,
13corporation, limited liability company, partnership, and joint
14venture, foreign or domestic, except that when the context
15otherwise requires, the term may refer to more than one
16individual or other described entity.
17    "Real estate" means an identified parcel or tract of land,
18including any improvements.
19    "Real estate related financial transaction" means any
20transaction involving:
21        (1) the sale, lease, purchase, investment in, or
22    exchange of real property, including interests in property
23    or the financing thereof;
24        (2) the refinancing of real property or interests in
25    real property; and
26        (3) the use of real property or interest in property

 

 

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

 

 

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1for a State certified residential real estate appraiser on
2properties other than one to 4 units of residential real
3property without regard to transaction value or complexity.
4    "Title XI" means Title XI of the federal Financial
5Institutions Reform, Recovery and Enforcement Act of 1989.
6    "USPAP" means the Uniform Standards of Professional
7Appraisal Practice as promulgated by the Appraisal Standards
8Board pursuant to Title XI and by rule.
9    "Valuation services" means services pertaining to aspects
10of property value.
11(Source: P.A. 100-604, eff. 7-13-18.)
 
12    (225 ILCS 458/1-12 new)
13    Sec. 1-12. Address of record; email address of record. All
14applicants and licensees shall:
15        (1) provide a valid address and email address to the
16    Department, which shall serve as the address of record and
17    email address of record, respectively, at the time of
18    application for licensure or renewal of a license; and
19        (2) inform the Department of any change of address of
20    record or email address of record within 14 days after
21    such change through the Department's website.
 
22    (225 ILCS 458/5-5)
23    (Section scheduled to be repealed on January 1, 2022)
24    Sec. 5-5. Necessity of license; use of title; exemptions.

 

 

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1    (a) It is unlawful for a person to (i) act, offer services,
2or advertise services as a State certified general real estate
3appraiser, State certified residential real estate appraiser,
4or associate real estate trainee appraiser, (ii) develop a
5real estate appraisal, (iii) practice as a real estate
6appraiser, or (iv) advertise as or hold himself or herself out
7to be a real estate appraiser without a license issued under
8this Act. A person who violates this subsection is guilty of a
9Class A misdemeanor for a first offense and a Class 4 felony
10for any subsequent offense.
11    (a-5) It is unlawful for a person, unless registered as an
12appraisal management company, to solicit clients or enter into
13an appraisal engagement with clients without either a
14certified residential real estate appraiser license or a
15certified general real estate appraiser license issued under
16this Act. A person who violates this subsection is guilty of a
17Class A misdemeanor for a first offense and a Class 4 felony
18for any subsequent offense.
19    (b) It is unlawful for a person, other than a person who
20holds a valid license issued pursuant to this Act as a State
21certified general real estate appraiser, a State certified
22residential real estate appraiser, or an associate real estate
23trainee appraiser to use these titles or any other title,
24designation, or abbreviation likely to create the impression
25that the person is licensed as a real estate appraiser
26pursuant to this Act. A person who violates this subsection is

 

 

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1guilty of a Class A misdemeanor for a first offense and a Class
24 felony for any subsequent offense.
3    (c) This Act does not apply to a person who holds a valid
4license as a real estate broker or managing broker pursuant to
5the Real Estate License Act of 2000 who prepares or provides a
6broker price opinion or comparative market analysis in
7compliance with Section 10-45 of the Real Estate License Act
8of 2000.
9    (d) Nothing in this Act shall preclude a State certified
10general real estate appraiser, a State certified residential
11real estate appraiser, or an associate real estate trainee
12appraiser from rendering appraisals for or on behalf of a
13partnership, association, corporation, firm, or group.
14However, no State appraisal license or certification shall be
15issued under this Act to a partnership, association,
16corporation, firm, or group.
17    (e) This Act does not apply to a county assessor, township
18assessor, multi-township assessor, county supervisor of
19assessments, or any deputy or employee of any county assessor,
20township assessor, multi-township assessor, or county
21supervisor of assessments in performance of who is performing
22his or her respective duties in accordance with the provisions
23of the Property Tax Code.
24    (e-5) For the purposes of this Act, valuation waivers may
25be prepared by a licensed appraiser notwithstanding any other
26provision of this Act, and the following types of valuations

 

 

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1are not appraisals and may not be represented to be
2appraisals, and a license is not required under this Act to
3perform such valuations if the valuations are performed by (1)
4an employee of the Illinois Department of Transportation who
5has completed a minimum of 45 hours of course work in real
6estate appraisal, including the principles principals of real
7estate appraisals, appraisal of partial acquisitions, easement
8valuation, reviewing appraisals in eminent domain, appraisal
9for federal aid highway programs, and appraisal review for
10federal aid highway programs and has at least 2 years'
11experience in a field closely related to real estate; (2) a
12county engineer who is a registered professional engineer
13under the Professional Engineering Practice Act of 1989; (3)
14an employee of a municipality who has (i) completed a minimum
15of 45 hours of coursework in real estate appraisal, including
16the principles principals of real estate appraisals, appraisal
17of partial acquisitions, easement valuation, reviewing
18appraisals in eminent domain, appraisal for federal aid
19highway programs, and appraisal review for federal aid highway
20programs and (ii) has either 2 years' experience in a field
21clearly related to real estate or has completed 20 hours of
22additional coursework that is sufficient for a person to
23complete waiver valuations as approved by the Federal Highway
24Administration; or (4) a municipal engineer who has completed
25coursework that is sufficient for his or her waiver valuations
26to be approved by the Federal Highway Administration and who

 

 

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1is a registered professional engineer under the Professional
2Engineering Act of 1989, under the following circumstances:
3        (A) a valuation waiver in an amount not to exceed
4    $20,000 $10,000 prepared pursuant to the federal Uniform
5    Relocation Assistance and Real Property Acquisition
6    Policies Act of 1970, or prepared pursuant to the federal
7    Uniform Relocation Assistance and Real Property
8    Acquisition for Federal and Federally-Assisted Programs
9    regulations and which is performed by (1) an employee of
10    the Illinois Department of Transportation and co-signed,
11    with a license number affixed, by another employee of the
12    Illinois Department of Transportation who is a registered
13    professional engineer under the Professional Engineering
14    Practice Act of 1989 or (2) an employee of a municipality
15    and co-signed with a license number affixed by a county or
16    municipal engineer who is a registered professional
17    engineer under the Professional Engineering Practice Act
18    of 1989; and
19        (B) a valuation waiver in an amount not to exceed
20    $20,000 $10,000 prepared pursuant to the federal Uniform
21    Relocation Assistance and Real Property Acquisition
22    Policies Act of 1970, or prepared pursuant to the federal
23    Uniform Relocation Assistance and Real Property
24    Acquisition for Federal and Federally-Assisted Programs
25    regulations and which is performed by a county or
26    municipal engineer who is employed by a county or

 

 

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1    municipality and is a registered professional engineer
2    under the Professional Engineering Practice Act of 1989.
3    The valuation shall include In addition to his or her
4    signature, the county or municipal engineer's signature
5    and engineer shall affix his or her license number to the
6    valuation.
7    Nothing in this subsection (e-5) shall be construed to
8allow the State of Illinois, a political subdivision thereof,
9or any public body to acquire real estate by eminent domain in
10any manner other than provided for in the Eminent Domain Act.
11    (f) A State real estate appraisal certification or license
12is not required under this Act for any of the following: (1) A
13person, partnership, association, or corporation that performs
14appraisals of property owned by that person, partnership,
15association, or corporation for the sole use of that person,
16partnership, association, or corporation.
17        (2) A court-appointed commissioner who conducts an
18    appraisal pursuant to a judicially ordered evaluation of
19    property.
20    Any However, any person who is certified or licensed under
21this Act and who performs any of the activities set forth in
22this subsection (f) must comply with the provisions of this
23Act. A person who violates this subsection (f) is guilty of a
24Class A misdemeanor for a first offense and a Class 4 felony
25for any subsequent offense.
26    (g) This Act does not apply to an employee, officer,

 

 

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1director, or member of a credit or loan committee of a
2financial institution or any other person engaged by a
3financial institution when performing an evaluation of real
4property for the sole use of the financial institution in a
5transaction for which the financial institution would not be
6required to use the services of a State licensed or State
7certified appraiser pursuant to federal regulations adopted
8under Title XI of the federal Financial Institutions Reform,
9Recovery, and Enforcement Act of 1989, nor does this Act apply
10to the procurement of an automated valuation model.
11    (h) This Act does not apply to the procurement of an
12automated valuation model.
13    "Automated valuation model" means an automated system that
14is used to derive a property value through the use of publicly
15available property records and various analytic methodologies
16such as comparable sales prices, home characteristics, and
17historical home price appreciations.
18(Source: P.A. 98-444, eff. 8-16-13; 98-933, eff. 1-1-15;
1998-1109, eff. 1-1-15; 99-78, eff. 7-20-15.)
 
20    (225 ILCS 458/5-10)
21    (Section scheduled to be repealed on January 1, 2022)
22    Sec. 5-10. Application for State certified general real
23estate appraiser.
24    (a) Every person who desires to obtain a State certified
25general real estate appraiser license shall:

 

 

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

 

 

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1through a multi-state licensing system as designated by the
2Secretary, of holding a Bachelor's degree or higher from an
3accredited college or university.
4(Source: P.A. 100-604, eff. 7-13-18.)
 
5    (225 ILCS 458/5-15)
6    (Section scheduled to be repealed on January 1, 2022)
7    Sec. 5-15. Application for State certified residential
8real estate appraiser. Every person who desires to obtain a
9State certified residential real estate appraiser license
10shall:
11        (1) apply to the Department on forms provided by the
12    Department, or through a multi-state licensing system as
13    designated by the Secretary, accompanied by the required
14    fee;
15        (2) be at least 18 years of age;
16        (3) (blank);
17        (4) personally take and pass an examination authorized
18    by the Department and endorsed by the AQB;
19        (5) prior to taking the examination, provide evidence
20    to the Department, or through a multi-state licensing
21    system as designated by the Secretary, of successful
22    completion of in Modular Course format, with each module
23    conforming to the Required Core Curriculum established and
24    adopted by the AQB, that he or she has successfully
25    completed the prerequisite classroom hours of instruction

 

 

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

 

 

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1        (4) (blank); and
2        (5) provide evidence to the Department, or through a
3    multi-state licensing system as designated by the
4    Secretary, of successful completion of that he or she has
5    successfully completed the prerequisite qualifying and any
6    conditional education requirements as established by rule.
7(Source: P.A. 100-604, eff. 7-13-18; 100-832, eff. 1-1-19;
8101-81, eff. 7-12-19.)
 
9    (225 ILCS 458/5-20.5)
10    (Section scheduled to be repealed on January 1, 2022)
11    Sec. 5-20.5. Duration of application. Applicants have 3
12years from the date of application to complete the application
13process. If the process has not been completed within 3 years,
14the application shall expire be denied, the fee shall be
15forfeited, and the applicant must reapply and meet the
16requirements in effect at the time of reapplication.
17(Source: P.A. 96-844, eff. 12-23-09.)
 
18    (225 ILCS 458/5-22)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 5-22. Criminal history records check.
21    (a) An application Each applicant for licensure by
22examination or restoration shall include the applicant's have
23his or her fingerprints submitted to the Department of State
24Police in an electronic format that complies with the form and

 

 

HB3714 Engrossed- 22 -LRB102 03960 SPS 13976 b

1manner for requesting and furnishing criminal history record
2information as prescribed by the Department of State Police.
3These fingerprints shall be checked against the Department of
4State Police and Federal Bureau of Investigation criminal
5history record databases now and hereafter filed. The
6Department of State Police shall charge applicants a fee for
7conducting the criminal history records check, which shall be
8deposited into the State Police Services Fund and shall not
9exceed the actual cost of the records check. The Department of
10State Police shall furnish, pursuant to positive
11identification, records of Illinois convictions to the
12Department. The Department may require applicants to pay a
13separate fingerprinting fee, either to the Department or to a
14vendor. The Department may adopt any rules necessary to
15implement this Section.
16    (b) The Secretary may designate a multi-state licensing
17system to perform the functions described in subsection (a).
18The Department may require applicants to pay a separate
19fingerprinting fee, either to the Department or to the
20multi-state licensing system. The Department may adopt any
21rules necessary to implement this subsection.
22    (c) The Department shall not consider the following
23criminal history records in connection with an application for
24licensure:
25        (1) juvenile adjudications of delinquent minors as
26    defined in Section 5-105 of the Juvenile Court Act of 1987

 

 

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1    subject to the restrictions set forth in Section 5-130 of
2    that Act;
3        (2) law enforcement records, court records, and
4    conviction records of an individual who was 17 years old
5    at the time of the offense and before January 1, 2014,
6    unless the nature of the offense required the individual
7    to be tried as an adult;
8        (3) records of arrest not followed by a charge or
9    conviction;
10        (4) records of arrest in which the charges were
11    dismissed unless related to the practice of the
12    profession; however, applicants shall not be asked to
13    report any arrests, and an arrest not followed by a
14    conviction shall not be the basis of a denial and may be
15    used only to assess an applicant's rehabilitation;
16        (5) convictions overturned by a higher court; or
17        (6) convictions or arrests that have been sealed or
18    expunged.
19    (d) If an applicant makes a false statement of material
20fact on the application, the false statement may in itself be
21sufficient grounds to revoke or refuse to issue a license.
22    (e) An applicant or licensee shall report to the
23Department, in a manner prescribed by the Department, upon
24application and within 30 days after the occurrence, if during
25the term of licensure, (i) any conviction of or plea of guilty
26or nolo contendere to forgery, embezzlement, obtaining money

 

 

HB3714 Engrossed- 24 -LRB102 03960 SPS 13976 b

1under false pretenses, larceny, extortion, conspiracy to
2defraud, or any similar offense or offenses or any conviction
3of a felony involving moral turpitude, (ii) the entry of an
4administrative sanction by a government agency in this State
5or any other jurisdiction that has as an essential element
6dishonesty or fraud or involves larceny, embezzlement, or
7obtaining money, property, or credit by false pretenses, or
8(iii) a crime that subjects the licensee to compliance with
9the requirements of the Sex Offender Registration Act.
10(Source: P.A. 100-604, eff. 7-13-18.)
 
11    (225 ILCS 458/5-25)
12    (Section scheduled to be repealed on January 1, 2022)
13    Sec. 5-25. Renewal of license.
14    (a) The expiration date and renewal period for a State
15certified general real estate appraiser license or a State
16certified residential real estate appraiser license issued
17under this Act shall be set by rule. Except as otherwise
18provided in subsections (b) and (f) of this Section, the
19holder of a license may renew the license within 90 days
20preceding the expiration date by:
21        (1) completing and submitting to the Department, or
22    through a multi-state licensing system as designated by
23    the Secretary, a renewal application form as provided by
24    the Department;
25        (2) paying the required fees; and

 

 

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

 

 

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1    multi-state licensing system as designated by the
2    Secretary, of successful completion of the continuing
3    education requirements through courses approved by the
4    Department from education providers approved by the
5    Department, as established by rule.
6    (e) Any associate real estate trainee appraiser trainee
7whose license under this Act has expired may renew the license
8for a period of 2 years following the expiration date by
9complying with the requirements of paragraphs (1), (2), and
10(3) of subsection (d) of this Section and paying any late
11penalties as established by rule.
12    (f) Notwithstanding subsections (c) and (e), an appraiser
13whose license under this Act has expired may renew or convert
14the license without paying any lapsed renewal fees or late
15penalties if the license expired while the appraiser was:
16        (1) on active duty with the United States Armed
17    Services;
18        (2) serving as the Coordinator of Real Estate
19    Appraisal or an employee of the Department who was
20    required to surrender the his or her license during the
21    term of employment.
22    Application for renewal must be made within 2 years
23following the termination of the military service or related
24education, training, or employment and shall include an
25affidavit from the licensee of engagement. The licensee shall
26furnish the Department with an affidavit that he or she was so

 

 

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1engaged.
2    (g) The Department shall provide reasonable care and due
3diligence to ensure that each licensee under this Act is
4provided with a renewal application at least 90 days prior to
5the expiration date, but each licensee is responsible to
6timely renewal or conversion of the renew or convert his or her
7license prior to its expiration date is the responsibility of
8the licensee.
9    (h) The Department shall not renew a license if the
10licensee has an unpaid fine from a disciplinary matter or an
11unpaid fee from a non-disciplinary action imposed by the
12Department until the fine or fee is paid to the Department or
13the licensee has entered into a payment plan and is current on
14the required payments.
15    (i) The Department shall not issue a license if the
16applicant has an unpaid fine imposed by the Department for
17unlicensed practice until the fine is paid to the Department
18or the applicant has entered into a payment plan and is current
19on the required payments.
20(Source: P.A. 100-604, eff. 7-13-18; 100-832, eff. 1-1-19;
21101-81, eff. 7-12-19.)
 
22    (225 ILCS 458/5-26 new)
23    Sec. 5-26. Inactive licenses. Any licensee who notifies
24the Department, in writing on forms prescribed by the
25Department, may elect to place the license on an inactive

 

 

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1status and shall, subject to the rules of the Department, be
2excused from payment of renewal fees until notification in
3writing to the Department of the desire to resume active
4status. Any licensee requesting reinstatement from inactive
5status shall pay the current renewal fee, provide proof of
6meeting the continuing education requirements for the period
7of time the license is inactive (not to exceed 2 renewal
8periods), and follow the requirements for reinstatement as
9provided by rule. Any licensee whose license is in an inactive
10status shall not practice in the State of Illinois. The
11Department will update the licensee's record in the National
12Registry to show that the license is inactive.
 
13    (225 ILCS 458/5-30)
14    (Section scheduled to be repealed on January 1, 2022)
15    Sec. 5-30. Endorsement. The Department may issue an
16appraiser license, without the required examination, to an
17applicant licensed by another state, territory, possession of
18the United States, or the District of Columbia, if (i) the
19licensing requirements of that licensing authority are, on the
20date of licensure, substantially equal to the requirements set
21forth under this Act or to a person who, at the time of the his
22or her application, possessed individual qualifications that
23were substantially equivalent to the requirements of this Act
24or (ii) the applicant provides the Department with evidence of
25good standing from the Appraisal Subcommittee National

 

 

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1Registry report and a criminal history records check in
2accordance with Section 5-22. An applicant under this Section
3shall pay all of the required fees.
4(Source: P.A. 98-1109, eff. 1-1-15.)
 
5    (225 ILCS 458/5-35)
6    (Section scheduled to be repealed on January 1, 2022)
7    Sec. 5-35. Qualifying education requirements. (a) The
8prerequisite classroom hours necessary for a person to be
9approved to sit for the examination for licensure as a State
10certified general real estate appraiser or a State certified
11residential real estate appraiser shall be in accordance with
12AQB criteria and established by rule.
13    (b) The prerequisite classroom hours necessary for a
14person to sit for the examination for licensure as an
15associate real estate trainee appraiser shall be established
16by rule.
17(Source: P.A. 98-1109, eff. 1-1-15.)
 
18    (225 ILCS 458/10-5)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 10-5. Scope of practice.
21    (a) This Act does not limit a State certified general real
22estate appraiser's appraiser in his or her scope of practice
23in a federally related transaction. A State certified general
24real estate appraiser may independently provide appraisal

 

 

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1services, review, or consult related consulting relating to
2any type of property for which there is related he or she has
3experience or competency by the appraiser is competent. All
4such appraisal practice must be made in accordance with the
5provisions of USPAP, criteria established by the AQB, and
6rules adopted pursuant to this Act.
7    (b) A State certified residential real estate appraiser is
8limited in his or her scope of practice to the provisions of
9USPAP, criteria established by the AQB, and the rules adopted
10pursuant to this Act.
11    (c) A State certified residential real estate appraiser
12must have a State certified general real estate appraiser who
13holds a valid license under this Act co-sign all appraisal
14reports on properties other than one to 4 units of residential
15real property without regard to transaction value or
16complexity.
17    (d) An associate real estate trainee appraiser is limited
18in his or her scope of practice in all transactions in
19accordance with the provisions of USPAP, this Act, and the
20rules adopted pursuant to this Act. In addition, an associate
21real estate trainee appraiser shall be required to have a
22State certified general real estate appraiser or State
23certified residential real estate appraiser who holds a valid
24license under this Act to co-sign all appraisal reports. A
25supervising appraiser may not supervise more than 3 associate
26real estate trainee appraisers at one time. Associate real

 

 

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1estate trainee appraisers shall not be limited in the number
2of concurrent supervising appraisers. A chronological
3appraisal log on an approved log form shall be maintained by
4the associate real estate trainee appraiser and shall be made
5available to the Department upon request.
6(Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15.)
 
7    (225 ILCS 458/10-10)
8    (Section scheduled to be repealed on January 1, 2022)
9    Sec. 10-10. Standards of practice. All persons licensed
10under this Act must comply with standards of professional
11appraisal practice adopted by the Department. The Department
12must adopt, as part of its rules, the Uniform Standards of
13Professional Appraisal Practice (USPAP) as published from time
14to time by the Appraisal Standards Board of the Appraisal
15Foundation. The Department shall consider federal laws and
16regulations regarding the licensure of real estate appraisers
17prior to adopting its rules for the administration of this
18Act. When an appraisal obtained through an appraisal
19management company is used for loan purposes, the borrower or
20loan applicant shall be provided with a written disclosure of
21the total compensation to the appraiser or appraisal firm
22within the body certification of the appraisal report and it
23shall not be redacted or otherwise obscured.
24(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 

 

 

HB3714 Engrossed- 32 -LRB102 03960 SPS 13976 b

1    (225 ILCS 458/15-5)
2    (Section scheduled to be repealed on January 1, 2022)
3    Sec. 15-5. Unlicensed practice; civil penalty; injunctive
4relief; unlawful influence.
5    (a) A person who violates Section 5-5 of this Act shall, in
6addition to any other penalty provided by law, pay a civil
7penalty to the Department in an amount not to exceed $25,000
8for each violation as determined by the Secretary. The civil
9penalty shall be assessed by the Secretary after a hearing in
10accordance with the provisions of this Act regarding the
11provision of a hearing for the discipline of a license.
12    (b) The Department has the authority to investigate any
13activity that may violate this Act.
14    (c) A civil penalty imposed pursuant to subsection (a)
15shall be paid within 60 days after the effective date of the
16order imposing the civil penalty. The order shall constitute a
17judgment and may be filed and executed in the same manner as
18any judgment from any court of record. Any civil penalty
19collected under this Act shall be made payable to the
20Department of Financial and Professional Regulation and
21deposited into the Appraisal Administration Fund. In addition
22to or in lieu of the imposition of a civil penalty, the
23Department may report a violation of this Act or the failure or
24refusal to comply with an order of the Department to the
25Attorney General or to the appropriate State's Attorney.
26    (d) Practicing as an appraiser without holding an active a

 

 

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1valid license as required under this Act is declared to be
2adverse to the public welfare, to constitute a public
3nuisance, and to cause irreparable harm to the public welfare.
4The Secretary, the Attorney General, or the State's Attorney
5of any county in the State may maintain an action for
6injunctive relief in any circuit court to enjoin any person
7from engaging in such practice.
8    Upon the filing of a verified petition in a circuit court,
9the court, if satisfied by affidavit or otherwise that a
10person has been engaged in the practice of real estate
11appraisal without an active a valid license, may enter a
12temporary restraining order without notice or bond enjoining
13the defendant from further practice. The showing of
14non-licensure, by affidavit or otherwise, is sufficient for
15the issuance of a temporary injunction. If it is established
16that the defendant has been or is engaged in unlawful
17practice, the court may enter an order or judgment perpetually
18enjoining the defendant from further unlawful practice. In all
19proceedings under this Section, the court, in its discretion,
20may apportion the costs among the parties interested in the
21action, including the cost of filing the complaint, service of
22process, witness fees and expenses, court reporter charges,
23and reasonable attorneys' fees. These injunction proceedings
24shall be in addition to, and not in lieu of, all penalties and
25other remedies provided in this Act.
26    (e) No person shall influence or attempt to influence

 

 

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1through coercion, extortion, or bribery the independent
2judgment of an appraiser licensed or certified under this Act
3in the development, reporting, result, or review of a real
4estate appraisal. A person who violates this subsection (e) is
5guilty of a Class A misdemeanor for the first offense and a
6Class 4 felony for any subsequent offense.
7(Source: P.A. 96-844, eff. 12-23-09.)
 
8    (225 ILCS 458/15-10)
9    (Section scheduled to be repealed on January 1, 2022)
10    Sec. 15-10. Grounds for disciplinary action.
11    (a) The Department may suspend, revoke, refuse to issue,
12renew, or restore a license and may reprimand place on
13probation or administrative supervision, or take any
14disciplinary or non-disciplinary action, including imposing
15conditions limiting the scope, nature, or extent of the real
16estate appraisal practice of a licensee or reducing the
17appraisal rank of a licensee, and may impose an administrative
18fine not to exceed $25,000 for each violation upon a licensee
19for any one or combination of the following:
20        (1) Procuring or attempting to procure a license by
21    knowingly making a false statement, submitting false
22    information, engaging in any form of fraud or
23    misrepresentation, or refusing to provide complete
24    information in response to a question in an application
25    for licensure.

 

 

HB3714 Engrossed- 35 -LRB102 03960 SPS 13976 b

1        (2) Failing to meet the minimum qualifications for
2    licensure as an appraiser established by this Act.
3        (3) Paying money, other than for the fees provided for
4    by this Act, or anything of value to a member or employee
5    of the Board or the Department to procure licensure under
6    this Act.
7        (4) Conviction of, or by plea of guilty or nolo
8    contendere, as enumerated in subsection (e) of Section
9    5-22 finding of guilt, jury verdict, or entry of judgment
10    or by sentencing of any crime, including, but not limited
11    to, convictions, preceding sentences of supervision,
12    conditional discharge, or first offender probation, under
13    the laws of any jurisdiction of the United States: (i)
14    that is a felony, ; or (ii) that is a misdemeanor, or
15    administrative sanction or (ii) that is a crime that
16    subjects the licensee to compliance with the requirements
17    of the Sex Offender Registration Act an essential element
18    of which is dishonesty, or that is directly related to the
19    practice of the profession.
20        (5) Committing an act or omission involving
21    dishonesty, fraud, or misrepresentation with the intent to
22    substantially benefit the licensee or another person or
23    with intent to substantially injure another person as
24    defined by rule.
25        (6) Violating a provision or standard for the
26    development or communication of real estate appraisals as

 

 

HB3714 Engrossed- 36 -LRB102 03960 SPS 13976 b

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

 

 

HB3714 Engrossed- 37 -LRB102 03960 SPS 13976 b

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

 

 

HB3714 Engrossed- 38 -LRB102 03960 SPS 13976 b

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

 

 

HB3714 Engrossed- 39 -LRB102 03960 SPS 13976 b

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

 

 

HB3714 Engrossed- 40 -LRB102 03960 SPS 13976 b

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

 

 

HB3714 Engrossed- 41 -LRB102 03960 SPS 13976 b

1    by the Department by knowingly making a false statement,
2    submitting false or misleading information, or refusing to
3    provide complete information in response to written
4    interrogatories or a written request for documentation
5    within 30 days of the request.
6    (c) In appropriate cases, the Department may resolve a
7complaint against a licensee through the issuance of a Consent
8to Administrative Supervision order. A licensee subject to a
9Consent to Administrative Supervision order shall be
10considered by the Department as an active licensee in good
11standing. This order shall not be reported or considered by
12the Department to be a discipline of the licensee. The records
13regarding an investigation and a Consent to Administrative
14Supervision order shall be considered confidential and shall
15not be released by the Department except as mandated by law. A
16complainant shall be notified if the his or her complaint has
17been resolved by a Consent to Administrative Supervision
18order.
19(Source: P.A. 97-602, eff. 8-26-11; 97-877, eff. 8-2-12;
2098-1109, eff. 1-1-15.)
 
21    (225 ILCS 458/15-10.1 new)
22    Sec. 15-10.1. Citations.
23    (a) The Department may adopt rules to permit the issuance
24of citations to any licensee for failure to comply with the
25continuing education requirements set forth in this Act or as

 

 

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1established by rule. The citation shall be issued to the
2licensee. For associate real estate trainee appraisers, a copy
3shall also be sent to the licensee's supervising appraiser of
4record. The citation shall contain the licensee's name, the
5licensee's address, the licensee's license number, the number
6of required hours of continuing education that have not been
7successfully completed by the licensee within the renewal
8period, and the penalty imposed, which shall not exceed
9$2,000. The issuance of a citation shall not excuse the
10licensee from completing all continuing education required for
11that renewal period.
12    (b) Service of a citation shall be made in person,
13electronically, or by mail to the licensee at the licensee's
14address of record or email address of record. Service of a
15citation must clearly state that if the cited licensee wishes
16to dispute the citation, the cited licensee may make a written
17request, within 30 days after the citation is served, for a
18hearing before the Department. If the cited licensee does not
19request a hearing within 30 days after the citation is served,
20then the citation shall become a final, non-disciplinary
21order, and any fine imposed is due and payable within 60 days
22after that final order. If the cited licensee requests a
23hearing within 30 days after the citation is served, the
24Department shall afford the cited licensee a hearing conducted
25in the same manner as a hearing provided for in this Act for
26any violation of this Act and shall determine whether the

 

 

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1cited licensee committed the violation as charged and whether
2the fine as levied is warranted. If the violation is found, any
3fine shall constitute non-public discipline and be due and
4payable within 30 days after the order of the Secretary, which
5shall constitute a final order of the Department. No change in
6license status may be made by the Department until a final
7order of the Department has been issued.
8    (c) Payment of a fine that has been assessed pursuant to
9this Section shall not constitute disciplinary action
10reportable on the Department's website or elsewhere unless a
11licensee has previously received 2 or more citations and been
12assessed 2 or more fines.
13    (d) Nothing in this Section shall prohibit or limit the
14Department from taking further action pursuant to this Act and
15rules for additional, repeated, or continuing violations.
 
16    (225 ILCS 458/15-11 new)
17    Sec. 15-11. Illegal discrimination. When there has been
18an adjudication in a civil or criminal proceeding that a
19licensee has illegally discriminated while engaged in any
20activity for which a license is required under this Act, the
21Department, upon the recommendation of the Board as to the
22extent of the suspension or revocation, shall suspend or
23revoke the license of that licensee in a timely manner, unless
24the adjudication is in the appeal process. When there has been
25an order in an administrative proceeding finding that a

 

 

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1licensee has illegally discriminated while engaged in any
2activity for which a license is required under this Act, the
3Department, upon recommendation of the Board as to the nature
4and extent of the discipline, shall take one or more of the
5disciplinary actions provided for in Section 15-10 in a timely
6manner, unless the administrative order is in the appeal
7process.
 
8    (225 ILCS 458/15-15)
9    (Section scheduled to be repealed on January 1, 2022)
10    Sec. 15-15. Investigation; notice; hearing.
11    (a) Upon the motion of the Department or the Board or upon
12a complaint in writing of a person setting forth facts that, if
13proven, would constitute grounds for suspension, revocation,
14or other disciplinary action against a licensee or applicant
15for licensure, the Department shall investigate the actions of
16the licensee or applicant. If, upon investigation, the
17Department believes that there may be cause for suspension,
18revocation, or other disciplinary action, the Department shall
19use the services of a State certified general real estate
20appraiser, a State certified residential real estate
21appraiser, or the Real Estate Coordinator to assist in
22determining whether grounds for disciplinary action exist
23prior to commencing formal disciplinary proceedings.
24    (b) Formal disciplinary proceedings shall commence upon
25the issuance of a written complaint describing the charges

 

 

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1that are the basis of the disciplinary action and delivery of
2the detailed complaint to the address of record of the
3licensee or applicant. For an associate real estate trainee
4appraiser, a copy shall also be sent to the licensee's
5supervising appraiser of record. The Department shall notify
6the licensee or applicant to file a verified written answer
7within 20 days after the service of the notice and complaint.
8The notification shall inform the licensee or applicant of the
9his or her right to be heard in person or by legal counsel;
10that the hearing will be afforded not sooner than 20 30 days
11after service of the complaint; that failure to file an answer
12will result in a default being entered against the licensee or
13applicant; that the license may be suspended, revoked, or
14placed on probationary status; and that other disciplinary
15action may be taken pursuant to this Act, including limiting
16the scope, nature, or extent of the licensee's practice. If
17the licensee or applicant fails to file an answer after
18service of notice, the respective his or her license may, at
19the discretion of the Department, be suspended, revoked, or
20placed on probationary status and the Department may take
21whatever disciplinary action it deems proper, including
22limiting the scope, nature, or extent of the person's
23practice, without a hearing.
24    (c) At the time and place fixed in the notice, the Board
25shall conduct hearing of the charges, providing both the
26accused person and the complainant ample opportunity to

 

 

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1present in person or by counsel such statements, testimony,
2evidence, and argument as may be pertinent to the charges or to
3a defense thereto.
4    (d) The Board shall present to the Secretary a written
5report of its findings of fact and recommendations. A copy of
6the report shall be served upon the licensee or applicant,
7either personally, or by certified mail, or, at the discretion
8of the Department, by electronic means. For associate real
9estate trainee appraisers, a copy shall also be sent to the
10licensee's supervising appraiser of record. Within 20 days
11after the service, the licensee or applicant may present the
12Secretary with a motion in writing for either a rehearing, a
13proposed finding of fact, a conclusion of law, or an
14alternative sanction, and shall specify the particular grounds
15for the request. If the accused orders a transcript of the
16record as provided in this Act, the time elapsing thereafter
17and before the transcript is ready for delivery to the accused
18shall not be counted as part of the 20 days. If the Secretary
19is not satisfied that substantial justice has been done, the
20Secretary may order a rehearing by the Board or other special
21committee appointed by the Secretary, may remand the matter to
22the Board for its reconsideration of the matter based on the
23pleadings and evidence presented to the Board, or may enter a
24final order in contravention of the Board's recommendation.
25Notwithstanding a licensee's or applicant's failure to file a
26motion for rehearing, the Secretary shall have the right to

 

 

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1take any of the actions specified in this subsection (d). Upon
2the suspension or revocation of a license, the licensee shall
3be required to surrender the respective his or her license to
4the Department, and upon failure or refusal to do so, the
5Department shall have the right to seize the license.
6    (e) The Department has the power to issue subpoenas and
7subpoenas duces tecum to bring before it any person in this
8State, to take testimony, or to require production of any
9records relevant to an inquiry or hearing by the Board in the
10same manner as prescribed by law in judicial proceedings in
11the courts of this State. In a case of refusal of a witness to
12attend, testify, or to produce books or papers concerning a
13matter upon which the witness he or she might be lawfully
14examined, the circuit court of the county where the hearing is
15held, upon application of the Department or any party to the
16proceeding, may compel obedience by proceedings as for
17contempt.
18    (f) Any license that is suspended indefinitely or revoked
19may not be restored for a minimum period of 3 2 years, or as
20otherwise ordered by the Secretary.
21    (g) In addition to the provisions of this Section
22concerning the conduct of hearings and the recommendations for
23discipline, the Department has the authority to negotiate
24disciplinary and non-disciplinary settlement agreements
25concerning any license issued under this Act. All such
26agreements shall be recorded as Consent Orders or Consent to

 

 

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1Administrative Supervision Orders.
2    (h) The Secretary shall have the authority to appoint an
3attorney duly licensed to practice law in the State of
4Illinois to serve as the hearing officer in any action to
5suspend, revoke, or otherwise discipline any license issued by
6the Department. The Hearing Officer shall have full authority
7to conduct the hearing.
8    (i) The Department, at its expense, shall preserve a
9record of all formal hearings of any contested case involving
10the discipline of a license. At all hearings or pre-hearing
11conferences, the Department and the licensee shall be entitled
12to have the proceedings transcribed by a certified shorthand
13reporter. A copy of the transcribed proceedings shall be made
14available to the licensee by the certified shorthand reporter
15upon payment of the prevailing contract copy rate.
16(Source: P.A. 100-831, eff. 1-1-19.)
 
17    (225 ILCS 458/15-55)
18    (Section scheduled to be repealed on January 1, 2022)
19    Sec. 15-55. Checks, credit card charges, or orders to
20Department dishonored because of insufficient funds. Any
21person who:
22        (1) delivers a check or other payment to the
23    Department that is returned to the Department unpaid by
24    the financial institution upon which it was drawn; or
25        (2) presents a credit card or debit card for payment

 

 

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1    that is invalid or expired or against which charges by the
2    Department are declined or dishonored;
3shall pay to the Department, in addition to the amount already
4owed to the Department, a fine of $50. The fines imposed by
5this Section are in addition to any other discipline provided
6under this Act for unlicensed practice or practice on a
7non-renewed license. The Department shall notify the applicant
8or licensee that payment of fees and fines shall be paid to the
9Department by certified check or money order within 30
10calendar days after the notification. If, after the expiration
11of 30 days from the date of the notification, the person has
12failed to submit the necessary remittance, the Department
13shall automatically terminate the license or deny the
14application, without hearing. After If, after termination or
15denial, the person seeking seeks a license, he or she must
16apply to the Department for restoration or issuance of the
17license and pay all fees and fines due to the Department. The
18Department may establish a fee for the processing of an
19application for restoration of a license to pay all of the
20expenses of processing the application. The Secretary may
21waive the fines due under this Section in individual cases
22where the Secretary finds that the penalties or fines would be
23unreasonable or unnecessarily burdensome.
24(Source: P.A. 96-844, eff. 12-23-09.)
 
25    (225 ILCS 458/20-5)

 

 

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1    (Section scheduled to be repealed on January 1, 2022)
2    Sec. 20-5. Education providers.
3    (a) No person shall operate an education provider entity
4without possessing an active license issued by the Department.
5Only Beginning July 1, 2002, only education providers licensed
6or otherwise approved by the Department may provide the
7qualifying and continuing education courses required for
8licensure under this Act. Every person that desires to obtain
9an education provider license shall make application to the
10Department in a manner prescribed by the Department and pay
11the fee prescribed by rule.
12    (b) A person or entity seeking to be licensed as an
13education provider under this Act shall provide satisfactory
14evidence of the following:
15        (1) a sound financial base for establishing,
16    promoting, and delivering the necessary courses;
17        (2) (blank); a sufficient number of qualified
18    instructors;
19        (3) (blank); adequate support personnel to assist with
20    administrative matters and technical assistance;
21        (4) (blank); a written policy dealing with procedures
22    for management of grievances and fee refunds;
23        (5) a qualified administrator, who is responsible for
24    the administration of the education provider, courses, and
25    the actions of the instructors; and
26        (6) any other requirements as provided by rule; and .

 

 

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1        (7) proof of good standing with the Secretary of State
2    and authority to conduct businesses in this State.
3    (c) All applicants for an education provider's license
4shall make initial application to the Department on forms
5provided by the Department, or through a multi-state licensing
6system as designated by the Secretary, and pay the appropriate
7fee as provided by rule. The term, expiration date, and
8renewal of an education provider's license shall be
9established by rule.
10    (d) An education provider shall provide each successful
11course participant with a certificate of completion signed by
12the school administrator. The format and content of the
13certificate shall be specified by rule.
14    (e) All education providers shall provide to the
15Department a monthly roster of all successful course
16participants as provided by rule.
17(Source: P.A. 100-604, eff. 7-13-18.)
 
18    (225 ILCS 458/20-10)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 20-10. Course approval.
21    (a) Only courses offered by licensed education providers
22and approved by the Department, courses approved by the AQB,
23or courses approved by jurisdictions monitored regulated by
24the Appraisal Subcommittee shall be used to meet the
25requirements of this Act and rules.

 

 

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

 

 

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1Disciplinary Board; appointment.
2    (a) There is hereby created the Real Estate Appraisal
3Administration and Disciplinary Board. The Board shall be
4composed of the Coordinator and 10 persons appointed by the
5Governor, plus the Coordinator of the Real Estate Appraisal
6Division. Members shall be appointed to the Board subject to
7the following conditions:
8        (1) All appointed members shall have been residents
9    and citizens of this State for at least 5 years prior to
10    the date of appointment.
11        (2) The appointed membership of the Board should
12    reasonably reflect the geographic distribution of the
13    population of the State.
14        (3) Four appointed members shall have been actively
15    engaged and currently licensed as State certified general
16    real estate appraisers for a period of not less than 5
17    years.
18        (4) Three Two appointed members shall have been
19    actively engaged and currently licensed as State certified
20    residential real estate appraisers for a period of not
21    less than 5 years.
22        (5) One Two appointed member members shall hold a
23    valid license as a real estate broker for at least 3 10
24    years prior to the date of the appointment and , one of whom
25    shall hold either a valid State certified general real
26    estate appraiser license or a valid State certified

 

 

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

 

 

HB3714 Engrossed- 55 -LRB102 03960 SPS 13976 b

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

 

 

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

 

 

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

 

 

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1    (o) (Blank). Upon resolution adopted at any Board meeting,
2the exercise of any Board function, power, or duty enumerated
3in this Section or in subsection (d) of Section 15-10 of this
4Act may be suspended. The exercise of any suspended function,
5power, or duty of the Board may be reinstated by a resolution
6adopted at a subsequent Board meeting. Any resolution adopted
7pursuant to this Section shall take effect immediately.
8(Source: P.A. 100-886, eff. 8-14-18.)
 
9    (225 ILCS 458/25-15)
10    (Section scheduled to be repealed on January 1, 2022)
11    Sec. 25-15. Coordinator of Real Estate Appraisal
12Coordinator; appointment; duties. The Secretary shall appoint,
13subject to the Personnel Code, a Coordinator of Real Estate
14Appraisal. In appointing the Coordinator, the Secretary shall
15give due consideration to recommendations made by members,
16organizations, and associations of the real estate appraisal
17industry. The On or after January 1, 2010, the Coordinator
18must hold a current, valid State certified general real estate
19appraiser license for a period of at least 5 years prior to
20appointment. The Coordinator shall not practice during the
21term of the his or her appointment. The Coordinator must take
22the 30-hour National Instructors Course on Uniform Standards
23of Professional Appraisal Practice. The Coordinator shall be
24credited with all fees that came due during the Coordinator's
25his or her employment. The Coordinator shall:

 

 

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1        (1) serve as a member of the Real Estate Appraisal
2    Administration and Disciplinary Board without vote;
3        (2) be the direct liaison between the Department, the
4    profession, and the real estate appraisal industry
5    organizations and associations;
6        (3) prepare and circulate to licensees such
7    educational and informational material as the Department
8    deems necessary for providing guidance or assistance to
9    licensees;
10        (4) appoint necessary committees to assist in the
11    performance of the functions and duties of the Department
12    under this Act;
13        (5) (blank); and
14        (6) be authorized to investigate and determine the
15    facts of a complaint; the coordinator may interview
16    witnesses, the complainant, and any licensees involved in
17    the alleged matter and make a recommendation as to the
18    findings of fact.
19(Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15.)
 
20    (225 ILCS 458/25-16)
21    (Section scheduled to be repealed on January 1, 2022)
22    Sec. 25-16. Staff. The Department shall employ a minimum
23of one investigator with an active certified appraiser license
24per 2,000 licensees in order to have sufficient staff to
25perform the Department's obligations under this Act.

 

 

HB3714 Engrossed- 60 -LRB102 03960 SPS 13976 b

1(Source: P.A. 100-832, eff. 1-1-19.)
 
2    (225 ILCS 458/25-20)
3    (Section scheduled to be repealed on January 1, 2022)
4    Sec. 25-20. Department; powers and duties. The Department
5of Financial and Professional Regulation shall exercise the
6powers and duties prescribed by the Civil Administrative Code
7of Illinois for the administration of licensing Acts and shall
8exercise such other powers and duties as are prescribed by
9this Act for the administration of this Act. The Department
10may contract with third parties for services necessary for the
11proper administration of this Act, including without
12limitation, investigators with the proper knowledge, training,
13and skills to properly investigate complaints against real
14estate appraisers.
15    The Department shall maintain and update a registry of the
16names and addresses of all licensees and a listing of
17disciplinary orders issued pursuant to this Act and shall
18transmit the registry, along with any national registry fees
19that may be required, to the entity specified by, and in a
20manner consistent with, Title XI of the federal Financial
21Institutions Reform, Recovery and Enforcement Act of 1989.
22(Source: P.A. 96-844, eff. 12-23-09.)
 
23    (225 ILCS 458/25-25)
24    (Section scheduled to be repealed on January 1, 2022)

 

 

HB3714 Engrossed- 61 -LRB102 03960 SPS 13976 b

1    Sec. 25-25. Rules. The Department, after notifying and
2considering any recommendations of the Board, if any, shall
3adopt rules that may be necessary for administration,
4implementation, and enforcement of the Act.
5(Source: P.A. 96-844, eff. 12-23-09.)
 
6    (225 ILCS 458/25-35 new)
7    Sec. 25-35. No private right of action. Except as
8otherwise expressly provided for in this Act, nothing in this
9Act shall be construed to grant to any person a private right
10of action to enforce the provisions of this Act or the rules
11adopted under this Act.
 
12    (225 ILCS 458/30-5)
13    (Section scheduled to be repealed on January 1, 2022)
14    Sec. 30-5. Savings provisions.
15    (a) This Act is intended to replace the Real Estate
16Appraiser Licensing Act in all respects.
17    (b) Beginning July 1, 2002, the rights, powers, and duties
18exercised by the Office of Banks and Real Estate under the Real
19Estate Appraiser Licensing Act shall continue to be vested in,
20to be the obligation of, and to be exercised by the Division of
21Real Estate of the Department of Financial and Professional
22Regulation Office of Banks and Real Estate under the
23provisions of this Act.
24    (c) This Act does not affect any act done, ratified, or

 

 

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1cancelled, any right occurring or established, or any action
2or proceeding commenced in an administrative, civil, or
3criminal cause before July 1, 2002 by the Office of Banks and
4Real Estate under the Real Estate Appraiser Licensing Act.
5Those actions or proceedings may be prosecuted and continued
6by the Division of Real Estate of the Department of Financial
7and Professional Regulation Office of Banks and Real Estate
8under this Act.
9    (d) This Act does not affect any license, certificate,
10permit, or other form of licensure issued by the Office of
11Banks and Real Estate under the Real Estate Appraiser
12Licensing Act, except as provided is subsection (c) of Section
135-25. All such licenses, certificates, permits, or other form
14of licensure shall continue to be valid under the terms and
15conditions of this Act.
16    (e) The rules adopted by the Office of Banks and Real
17Estate relating to the Real Estate Appraiser Licensing Act,
18unless inconsistent with the provisions of this Act, are not
19affected by this Act, and on July 1, 2002, those rules become
20rules under this Act. The Office of Banks and Real Estate
21shall, as soon as practicable, adopt new or amended rules
22consistent with the provisions of this Act.
23    (f) This Act does not affect any discipline, suspension,
24or termination that has occurred under the Real Estate
25Appraiser Licensing Act or other predecessor Act. Any action
26for discipline, suspension, or termination instituted under

 

 

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1the Real Estate Appraiser Licensing Act shall be continued
2under this Act.
3(Source: P.A. 92-180, eff. 7-1-02.)
 
4    (225 ILCS 458/10-17 rep.)
5    (225 ILCS 458/30-10 rep.)
6    Section 15. The Real Estate Appraiser Licensing Act of
72002 is amended by repealing Sections 10-17 and 30-10.
 
8    Section 20. The Appraisal Management Company Registration
9Act is amended by changing Sections 10 and 15 as follows:
 
10    (225 ILCS 459/10)
11    Sec. 10. Definitions. In this Act:
12    "Address of record" means the principal address recorded
13by the Department in the applicant's or registrant's
14application file or registration file maintained by the
15Department's registration maintenance unit.
16    "Applicant" means a person or entity who applies to the
17Department for a registration under this Act.
18    "Appraisal" means (noun) the act or process of developing
19an opinion of value; an opinion of value (adjective) of or
20pertaining to appraising and related functions.
21    "Appraisal firm" means an appraisal entity that is 100%
22owned and controlled by a person or persons licensed in
23Illinois as a certified general real estate appraiser or a

 

 

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1certified residential real estate appraiser. An 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 management company national registry fee" means
23the fee implemented pursuant to Title XI of the federal
24Financial Institutions Reform, Recovery and Enforcement Act of
251989 for an appraiser management company's national registry.
26    "Appraisal management services" means one or more of the

 

 

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1following:
2        (1) recruiting, selecting, and retaining appraisers;
3        (2) contracting with State-certified or State-licensed
4    appraisers to perform appraisal assignments;
5        (3) managing the process of having an appraisal
6    performed, including providing administrative services
7    such as receiving appraisal orders and appraisal reports;
8    submitting completed appraisal reports to creditors and
9    secondary market participants; collecting compensation
10    from creditors, underwriters, or secondary market
11    participants for services provided; or paying appraisers
12    for services performed; or
13        (4) reviewing and verifying the work of appraisers.
14    "Appraiser panel" means a network, list, or roster of
15licensed or certified appraisers approved by the appraisal
16management company or by the end-user client to perform
17appraisals as independent contractors for the appraisal
18management company. "Appraiser panel" includes both appraisers
19accepted by an appraisal management company for consideration
20for future appraisal assignments and appraisers engaged by an
21appraisal management company to perform one or more
22appraisals. For the purposes of determining the size of an
23appraiser panel, only independent contractors of hybrid
24entities shall be counted towards the appraiser panel.
25    "Appraiser panel fee" means the amount collected from a
26registrant that, where applicable, includes an appraisal

 

 

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1management company's national registry fee.
2    "Appraisal report" means a written appraisal by an
3appraiser to a client.
4    "Appraisal practice service" means valuation services
5performed by an individual acting as an appraiser, including,
6but not limited to, appraisal or appraisal review.
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.
12    "Assignment result" means an appraiser's opinions and
13conclusions developed specific to an assignment.
14    "Audit" includes, but is not limited to, an annual or
15special audit, visit, or review necessary under this Act or
16required by the Secretary or the Secretary's authorized
17representative in carrying out the duties and responsibilities
18under this Act.
19    "Client" means the party or parties who engage an
20appraiser by employment or contract in a specific appraisal
21assignment.
22    "Controlling Person" means:
23        (1) an owner, officer, or director of an entity
24    seeking to offer appraisal management services;
25        (2) an individual employed, appointed, or authorized
26    by an appraisal management company who has the authority

 

 

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1    to:
2            (A) enter into a contractual relationship with a
3        client for the performance of an appraisal management
4        service or appraisal practice service; and
5            (B) enter into an agreement with an appraiser for
6        the performance of a real estate appraisal activity;
7        (3) an individual who possesses, directly or
8    indirectly, the power to direct or cause the direction of
9    the management or policies of an appraisal management
10    company; or
11        (4) an individual who will act as the sole compliance
12    officer with regard to this Act and any rules adopted
13    under this Act.
14    "Coordinator" means the Coordinator of the Appraisal
15Management Company Registration Unit of the Department or his
16or her designee.
17    "Covered transaction" means a consumer credit transaction
18secured by a consumer's principal dwelling.
19    "Department" means the Department of Financial and
20Professional Regulation.
21    "Email address of record" means the designated email
22address recorded by the Department in the applicant's
23application file or the registrant's registration file
24maintained by the Department's registration maintenance unit.
25    "Entity" means a corporation, a limited liability company,
26partnership, a sole proprietorship, or other entity providing

 

 

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1services or holding itself out to provide services as an
2appraisal management company or an appraisal management
3service.
4    "End-user client" means any person who utilizes or engages
5the services of an appraiser through an appraisal management
6company.
7    "Federally regulated appraisal management company" means
8an appraisal management company that is owned and controlled
9by an insured depository institution, as defined in 12 U.S.C.
101813, or an insured credit union, as defined in 12 U.S.C. 1752,
11and regulated by the Office of the Comptroller of the
12Currency, the Federal Reserve Board, the National Credit Union
13Association, or the Federal Deposit Insurance Corporation.
14    "Financial institution" means any bank, savings bank,
15savings and loan association, credit union, mortgage broker,
16mortgage banker, registrant under the Consumer Installment
17Loan Act or the Sales Finance Agency Act, or a corporate
18fiduciary, subsidiary, affiliate, parent company, or holding
19company of any registrant, or any institution involved in real
20estate financing that is regulated by State or federal law.
21    "Foreign appraisal management company" means any appraisal
22management company organized under the laws of any other state
23of the United States, the District of Columbia, or any other
24jurisdiction of the United States.
25    "Hybrid entity" means an appraisal management company that
26hires an appraiser as an employee to perform an appraisal and

 

 

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1engages an independent contractor to perform an appraisal.
2    "Multi-state licensing system" means a web-based platform
3that allows an applicant to submit the his or her application
4or registration renewal to the Department online.
5    "Person" means individuals, entities, sole
6proprietorships, corporations, limited liability companies,
7and alien, foreign, or domestic partnerships, except that when
8the context otherwise requires, the term may refer to a single
9individual or other described entity.
10    "Principal dwelling" means a residential structure that
11contains one to 4 units, whether or not that structure is
12attached to real property. "Principal dwelling" includes an
13individual condominium unit, cooperative unit, manufactured
14home, mobile home, and trailer, if it is used as a residence.
15    "Principal office" means the actual, physical business
16address, which shall not be a post office box or a virtual
17business address, of a registrant, at which (i) the Department
18may contact the registrant and (ii) records required under
19this Act are maintained.
20    "Qualified to transact business in this State" means being
21in compliance with the requirements of the Business
22Corporation Act of 1983.
23    "Quality control review" means a review of an appraisal
24report for compliance and completeness, including grammatical,
25typographical, or other similar errors, unrelated to
26developing an opinion of value.

 

 

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1    "Real estate" means an identified parcel or tract of land,
2including any improvements.
3    "Real estate related financial transaction" means any
4transaction involving:
5        (1) the sale, lease, purchase, investment in, or
6    exchange of real property, including interests in property
7    or the financing thereof;
8        (2) the refinancing of real property or interests in
9    real property; and
10        (3) the use of real property or interest in property
11    as security for a loan or investment, including mortgage
12    backed securities.
13    "Real property" means the interests, benefits, and rights
14inherent in the ownership of real estate.
15    "Secretary" means the Secretary of Financial and
16Professional Regulation.
17    "USPAP" means the Uniform Standards of Professional
18Appraisal Practice as adopted by the Appraisal Standards Board
19under Title XI.
20    "Valuation" means any estimate of the value of real
21property in connection with a creditor's decision to provide
22credit, including those values developed under a policy of a
23government sponsored enterprise or by an automated valuation
24model or other methodology or mechanism.
25    "Written notice" means a communication transmitted by mail
26or by electronic means that can be verified between an

 

 

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1appraisal management company and a licensed or certified real
2estate appraiser.
3(Source: P.A. 100-604, eff. 7-13-18.)
 
4    (225 ILCS 459/15)
5    Sec. 15. Exemptions.
6    (a) Nothing in this Act shall apply to any of the
7following:
8        (1) an agency of the federal, State, county, or
9    municipal government or an officer or employee of a
10    government agency, or person, described in this Section
11    when acting within the scope of employment of the officer
12    or employee;
13        (2) a corporate relocation company when the appraisal
14    is not used for mortgage purposes and the end user client
15    is an employer company;
16        (3) any person licensed in this State under any other
17    Act while engaged in the activities or practice for which
18    he or she is licensed;
19        (4) any person licensed to practice law in this State
20    who is working with or on behalf of a client of that person
21    in connection with one or more appraisals for that client;
22        (5) an appraiser that enters into an agreement,
23    whether written or otherwise, with another appraiser for
24    the performance of an appraisal, and upon the completion
25    of the appraisal, the report of the appraiser performing

 

 

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1    the appraisal is signed by both the appraiser who
2    completed the appraisal and the appraiser who requested
3    the completion of the appraisal, except that an appraisal
4    management company may not avoid the requirement of
5    registration under this Act by requiring an employee of
6    the appraisal management company who is an appraiser to
7    sign an appraisal that was completed by another appraiser
8    who is part of the appraisal panel of the appraisal
9    management company;
10        (6) any person acting as an agent of the Illinois
11    Department of Transportation in the acquisition or
12    relinquishment of land for transportation issues to the
13    extent of their contract scope;
14        (7) a design professional entity when the appraisal is
15    not used for mortgage purposes and the end user client is
16    an agency of State government or a unit of local
17    government;
18        (8) an appraiser firm whose ownership is appropriately
19    certified under the Real Estate Appraiser Licensing Act of
20    2002; or
21        (9) an appraisal management company solely engaged in
22    non-residential appraisal management services; or .
23        (10) a department or division of an entity that
24    provides appraisal management services only to that
25    entity.
26    (b) A federally regulated appraisal management company

 

 

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1shall register with the Department for the sole purpose of
2collecting required information for, and to pay all fees
3associated with, the State of Illinois' obligation to register
4the federally regulated appraisal management company with the
5Appraisal Management Companies National Registry, but the
6federally regulated appraisal management company is otherwise
7exempt from all other provisions in this Act.
8    (c) In the event that the Final Interim Rule of the federal
9Dodd-Frank Wall Street Reform and Consumer Protection Act
10provides that an appraisal management company is a subsidiary
11owned and controlled by a financial institution regulated by a
12federal financial institution's regulatory agency and is
13exempt from State appraisal management company registration
14requirements, the Department, shall, by rule, provide for the
15implementation of such an exemption.
16(Source: P.A. 100-604, eff. 7-13-18.)
 
17    Section 99. Effective date. This Act takes effect January
181, 2022, except that Section 5 and this Section take effect
19immediately.