HB3333enr 99TH GENERAL ASSEMBLY

HB3333 Enrolled LRB099 08627 HAF 28791 b

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by adding Section 5.866 as follows:

(30 ILCS 105/5.866 new)

Sec. 5.866. The Appraisal Management Company Recovery Fund.

Section 10. The Real Estate License Act of 2000 is amended by changing Section 10-45 as follows:

(225 ILCS 454/10-45)

(Section scheduled to be repealed on January 1, 2020)

Sec. 10-45. Broker price opinions and comparative market analyses.

(a) A broker price opinion or comparative market analysis may be prepared or provided by a real estate broker or managing broker for any of the following:

(1) an existing or potential buyer or seller of an interest in real estate;

(2) an existing or potential lessor or lessee of an interest in real estate;

(3) a third party making decisions or performing due diligence related to the potential listing, offering, sale, option, lease, or acquisition price of an interest in real estate; or

(4) an existing or potential lienholder or other third party for any purpose other than as the primary basis to determine the market value of an interest in real estate for the purpose of a mortgage loan origination by a financial institution secured by such real estate.

(b) A broker price opinion or comparative market analysis shall be in writing either on paper or electronically and shall include the following provisions:

(1) a statement of the intended purpose of the broker price opinion or comparative market analysis;

(2) a brief description of the interest in real estate that is the subject of the broker price opinion or comparative market analysis;

(3) a brief description of the methodology used to develop the broker price opinion or comparative market analysis;

(4) any assumptions or limiting conditions;

(5) a disclosure of any existing or contemplated interest of the broker or managing broker in the interest in real estate that is the subject of the broker price opinion or comparative market analysis;

(6) the name, license number, and signature of the broker or managing broker that developed the broker price opinion or comparative market analysis;

(7) a statement in substantially the following form:

"This is a broker price opinion/comparative market analysis, not an appraisal of the market value of the real estate, and was prepared by a licensed real estate broker or managing broker who was , not acting as by a State certified real estate appraiser."; and

(8) such other items as the broker or managing broker may deem appropriate.

(Source: P.A. 98-1109, eff. 1-1-15.)

Section 15. The Appraisal Management Company Registration Act is amended by changing Sections 55 and 65 and by adding Sections 56 and 57 as follows:

(225 ILCS 459/55)

Sec. 55. Fees.

(a) The fees for the administration and enforcement of this Act, including, but not limited to, original registration, renewal, and restoration fees, shall be set by the Department by rule. The fees shall not be refundable.

(b) All fees and other moneys collected under this Act shall be deposited in the Appraisal Administration Fund, except as provided by Section 56 of this Act.

(Source: P.A. 97-602, eff. 8-26-11.)

(225 ILCS 459/56 new)

Sec. 56. Appraisal Management Company Recovery Fund.

(a) In addition to any other fee provided for under this Act, the Secretary, upon the recommendation of the Board, may charge a fee not to exceed $500 to be paid at the time of submission of an original application and each renewal application to register as an appraisal management company. These fees shall be deposited in the Appraisal Management Company Recovery Fund.

(b) Any moneys remaining in the Appraisal Management Company Recovery Fund at the close of the fiscal year shall not lapse, but shall be carried forward into the succeeding fiscal year.

(c) Notwithstanding any other law to the contrary, the Appraisal Management Company Recovery Fund is not subject to sweeps, administrative charge-backs, or any other fiscal or budgetary maneuver that would in any way transfer any amounts from the Appraisal Management Company Recovery Fund into any other fund of the State.

(225 ILCS 459/57 new)

Sec. 57. Administration of the Appraisal Management Company Recovery Fund.

(a) The Department, with the assistance of the Board, shall, subject to appropriation, administer the Appraisal Management Company Recovery Fund solely to provide restitution to each State-certified general real estate appraiser or State-certified residential real estate appraiser who has suffered pecuniary loss as provided in subsection (b) of this Section or to award the Department expenses, fines, or fees:

(1) as a result of an appraisal management company ceasing to be registered with the Department, either voluntarily or involuntarily or having been determined as being bankrupt by a federal bankruptcy court;

(2) if an appraiser has received a final judgment from a court of competent jurisdiction or a federal bankruptcy court has discharged the debt in a bankruptcy proceeding;

(3) the unpaid appraisal fee was for an appraisal of real estate located in the State of Illinois; and

(4) if no viable alternative for full restitution is available, as determined by the Board.

If a federal bankruptcy court has discharged debts for expenses, fines, or fees due to or levied by the Department in accordance with this Act, the Board shall, prior to making a recommendation to award any State-certified general real estate appraiser or State-certified residential real estate appraiser any funds, recommend awarding the Department sufficient funds from the Appraisal Management Company Recovery Fund to pay expenses, fines, or fees due the Department from the bankrupt appraisal management company. The award shall not exceed $25,000, except as provided in this Section.

No funds shall be paid without the approval, in writing, of the Secretary.

(b) Each fund distribution for restitution shall be made payable to the appropriate Illinois resident appraiser as approved by the Secretary after consideration of the recommendation of the Board. The amount to be paid to the appraiser shall equal the actual amount of appraisal fees that are proven to be owed to the appraiser by the relevant appraisal management company and any reasonable and appropriate court costs associated with determining the final judgment in favor of the appraiser. If the amount of restitution to be paid to any one or more appraisers at any one time exceeds the balance in the Appraisal Management Company Recovery Fund, the Board, in making its recommendation, shall:

(1) distribute as much of the restitution amount as possible, which shall be deemed to satisfy in full any claim the relevant appraisers have on payments from the Appraisal Management Company Recovery Fund; and

(2) in the case of distributions to more than one appraiser, provide for a pro rata distribution of the available fund balance, which shall be deemed to satisfy in full any claim the relevant appraisers have on payments from the Appraisal Management Company Recovery Fund.

If, after payment of restitution is made as provided in this subsection (b), any funds remain, the Department shall be entitled to an award of any amounts remaining owed to the Department after payment of the initial $25,000 provided for in subsection (a) of this Section.

(c) Whenever restitution or an award is paid by the Appraisal Management Company Recovery Fund, the Fund shall be subrogated to the amount of the restitution or award.

(d) The Department shall adopt rules in accordance with the Illinois Administrative Procedure Act that impose the fees assessed on appraisal management companies under Section 56 of this Act whenever the balance of the Fund is less than $500,000 and shall suspend imposing fees when the balance of the Fund is $500,000 or more.

(225 ILCS 459/65)

Sec. 65. Disciplinary actions.

(a) The Department may refuse to issue or renew, or may revoke, suspend, place on probation, reprimand, or take other disciplinary or non-disciplinary action as the Department may deem appropriate, including imposing fines not to exceed $25,000 for each violation, with regard to any registration for any one or combination of the following:

(1) Material misstatement in furnishing information to the Department.

(2) Violations of this Act, or of the rules adopted under this Act.

(3) Conviction of, or entry of a plea of guilty or nolo contendere to any crime that is a felony under the laws of the United States or any state or territory thereof or that is a misdemeanor of which an essential element is dishonesty, or any crime that is directly related to the practice of the profession.

(4) Making any misrepresentation for the purpose of obtaining registration or violating any provision of this Act or the rules adopted under this Act pertaining to advertising.

(5) Professional incompetence.

(6) Gross malpractice.

(7) Aiding or assisting another person in violating any provision of this Act or rules adopted under this Act.

(8) Failing, within 30 days after requested, to provide information in response to a written request made by the Department.

(9) Engaging in dishonorable, unethical, or unprofessional conduct of a character likely to deceive, defraud, or harm the public.

(10) Discipline by another state, District of Columbia, territory, or foreign nation, if at least one of the grounds for the discipline is the same or substantially equivalent to those set forth in this Section.

(11) A finding by the Department that the registrant, after having his or her registration placed on probationary status, has violated the terms of probation.

(12) Willfully making or filing false records or reports in his or her practice, including, but not limited to, false records filed with State agencies or departments.

(13) Filing false statements for collection of fees for which services are not rendered.

(14) Practicing under a false or, except as provided by law, an assumed name.

(15) Fraud or misrepresentation in applying for, or procuring, a registration under this Act or in connection with applying for renewal of a registration under this Act.

(16) Being adjudicated liable in a civil proceeding for violation of a state or federal fair housing law.

(17) (Blank). Failure to obtain or maintain the bond required under Section 50 of this Act.

(b) The Department may refuse to issue or may suspend without hearing as provided for in the Civil Administrative Code the registration of any person who fails to file a return, or to pay the tax, penalty or interest shown in a filed return, or to pay any final assessment of the tax, penalty, or interest as required by any tax Act administered by the Illinois Department of Revenue, until such time as the requirements of any such tax Act are satisfied.

(Source: P.A. 97-602, eff. 8-26-11.)

(225 ILCS 459/50 rep.)

Section 20. The Appraisal Management Company Registration Act is amended by repealing Section 50.

Section 99. Effective date. This Act takes effect upon becoming law.