State of Illinois
92nd General Assembly
Legislation

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92_HB1805

 
                                               LRB9205853LBmg

 1        AN ACT in relation to home inspectors.

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

 4                   ARTICLE 1.  GENERAL PROVISIONS

 5        Section  1-1.  Short title.  This Act may be cited as the
 6    Home Inspector License Act.

 7        Section 1-5.  Legislative  intent.   The  intent  of  the
 8    General  Assembly  in  enacting  this  Act is to evaluate the
 9    competency of persons engaged in the home inspection business
10    and to regulate and license those  persons  engaged  in  this
11    business for the protection of the public.

12        Section  1-10.  Definitions.  As used in this Act, unless
13    the context otherwise requires:
14        "Applicant" means a person who  applies  to  OBRE  for  a
15    license under this Act.
16        "Board" means the Home Inspector Advisory Board.
17        "Client"  means  a  person who engages or seeks to engage
18    the  services  of  a  home  inspector   for   an   inspection
19    assignment.
20        "Commissioner"  means  the  Commissioner of the Office of
21    Banks and Real Estate or his or her designee.
22        "Home inspection" means  an  inspection  of  any  of  the
23    following components of residential real property:
24             (1)  heating system;
25             (2)  cooling system;
26             (3)  plumbing system;
27             (4)  electrical system;
28             (5)  structural composition;
29             (6)  foundation;
 
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 1             (7)  roof;
 2             (8)  masonry structure;
 3             (9)  exterior components;
 4             (10)  interior components; or
 5             (11)  any  other residential real property component
 6        as established by rule.
 7        "Home inspector" means a person who, for another and  for
 8    compensation   either   direct  or  indirect,  performs  home
 9    inspections.
10        "Home inspection report" or "inspection report"  means  a
11    written  evaluation  prepared  and issued by a home inspector
12    upon  completion  of  a  home  inspection,  which  meets  the
13    standards of practice as established by OBRE.
14        "Inspection assignment" means an engagement for  which  a
15    home  inspector  is  employed  or  retained to conduct a home
16    inspection and prepare a home inspection report.
17        "OBRE" means the Office of Banks and Real Estate.
18        "Residential real property" means an identified parcel or
19    tract of land, including improvements, intended to be used or
20    in fact used as a residence of one to 4 units.
21        "Standards of practice" means  recognized  standards  and
22    codes  to be used in a home inspection, as determined by OBRE
23    and established by rule.

24                  ARTICLE 5.  LICENSING PROVISIONS

25        Section  5-5.  Necessity  of  license;  use   of   title;
26    exemptions.
27        (a)  Beginning  January  1,  2003,  it  is unlawful for a
28    person to act or assume to act as a home inspector, to engage
29    in the  business  of  home  inspection,  to  develop  a  home
30    inspection  report,  to  practice  as a home inspector, or to
31    advertise or hold  himself  or  herself  out  to  be  a  home
32    inspector  without a home inspector license issued under this
 
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 1    Act.  A person who violates this subsection is  guilty  of  a
 2    Class A misdemeanor.
 3        (b)  Beginning  January  1,  2003, it is unlawful for any
 4    person, other than a person who holds a valid home  inspector
 5    license  issued  pursuant to this Act, to use the title "home
 6    inspector" or any other title, designation,  or  abbreviation
 7    likely  to  create the impression that the person is licensed
 8    as a home inspector pursuant  to  this  Act.   A  person  who
 9    violates this subsection is guilty of a Class A misdemeanor.
10        (c)  The  licensing  requirements  of this Article do not
11    apply to:
12             (1)  any  person  who  is   employed   as   a   code
13        enforcement official by the State of Illinois or any unit
14        of  local  government,  while  acting within the scope of
15        that government employment;
16             (2)  any person regulated by the State  of  Illinois
17        or a local jurisdiction, while acting within the scope of
18        his or her license or practice as an:
19                  (A)  architect;
20                  (B)  professional engineer;
21                  (C)  electrical contractor;
22                  (D)  master plumber;
23                  (E)  real estate broker;
24                  (F)  real estate salesperson;
25                  (G)  real estate leasing agent;
26                  (H)  certified   general  or  residential  real
27             estate appraiser;
28                  (I)  associate real estate appraiser;
29                  (J)  insurance adjuster;
30                  (K)  electrician;
31                  (L)  plumber;
32                  (M)  heating or cooling technician; or
33                  (N)  general building contractor; or
34             (3)  any person certified or registered  within  the
 
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 1        State  of Illinois as a pesticide applicator or inspector
 2        who is acting within the scope of his or her profession.

 3        Section 5-10.  Application for  Home  Inspector  license.
 4    Every  person  who desires to obtain a home inspector license
 5    shall:
 6             (1)  apply  to  OBRE  on  forms  provided  by   OBRE
 7        accompanied by the required fee;
 8             (2)  be at least 21 years of age;
 9             (3)  provide  evidence  of  having  attained  a high
10        school diploma or completed an equivalent course of study
11        as determined by an examination conducted by the Illinois
12        State Board of Education;
13             (4)  personally  take  and   pass   an   examination
14        authorized by OBRE; and
15             (5)  prior   to   taking  the  examination,  provide
16        evidence  to  OBRE  that  he  or  she  has   successfully
17        completed the prerequisite classroom hours of instruction
18        in home inspection, as established by rule.

19        Section  5-15.  Practice prior to this Act.  A person who
20    has actively and lawfully practiced as a  home  inspector  in
21    the State of Illinois prior to the effective date of this Act
22    may  obtain  a  home  inspector  license  without examination
23    provided he or she:
24             (1)  is a resident of the State of Illinois;
25             (2)  makes application to OBRE on forms provided  by
26        OBRE  within  6  months  after the effective date of this
27        Act;
28             (3)  verifies that he or she has practiced as a home
29        inspector for a period of at least 2 years prior  to  the
30        effective date of this Act; and
31             (4)  verifies that he or she has conducted a minimum
32        of  25  home  inspections within the 2 years prior to the
 
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 1        effective date of this Act.

 2        Section 5-15.  Renewal of license.
 3        (a)  The expiration date and renewal period  for  a  home
 4    inspector license issued under this Act shall be set by rule.
 5    Except  as  otherwise  provided in subsections (b) and (c) of
 6    this Section, the holder of a license may renew  the  license
 7    within 90 days preceding the expiration date by:
 8             (1)  completing  and  submitting  to  OBRE a renewal
 9        application form as provided by OBRE;
10             (2)  paying the required fees; and
11             (3)  providing evidence of successful completion  of
12        the  continuing  education  requirements  through courses
13        approved by OBRE given by education providers licensed by
14        OBRE, as established by rule.
15        (b)  A home inspector whose license under  this  Act  has
16    expired  may  renew  the  license  for  a  period  of 2 years
17    following  the  expiration  date  by   complying   with   the
18    requirements of subparagraphs (1), (2), and (3) of subsection
19    (a) of this Section and paying any late penalties established
20    by rule.
21        (c)  Notwithstanding  subsection  (b),  a  home inspector
22    whose license under  this  Act  has  expired  may  renew  the
23    license  without  paying  any  lapsed  renewal  fees  or late
24    penalties if (i) the license expired while the home inspector
25    was on active duty with the  United  States  Armed  Services,
26    (ii) application for renewal is made within 2 years following
27    the termination of the military service or related education,
28    training, or employment, and (iii) the applicant furnishes to
29    OBRE an affidavit that he or she was so engaged.
30        (d)  OBRE shall provide reasonable care and due diligence
31    to  ensure  that  each  licensee under this Act is provided a
32    renewal application at least 90 days prior to the  expiration
33    date,  but it is the responsibility of each licensee to renew
 
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 1    his or her license prior to its expiration date.

 2        Section 5-20.  Reciprocity; consent to jurisdiction.
 3        (a)  A nonresident  who  holds  a  valid  home  inspector
 4    license  issued  to  him  or  her  by  the  proper  licensing
 5    authority  of  a  state,  territory, possession of the United
 6    States, or  the  District  of  Columbia  that  has  licensing
 7    requirements  equal  to  or  substantially  equivalent to the
 8    requirements of the State of Illinois and otherwise meets the
 9    requirements for  licensure  may  obtain  a  license  without
10    examination, provided that:
11             (1)  OBRE   has  entered  into  a  valid  reciprocal
12        agreement with the  proper  licensing  authority  of  the
13        state,  territory,  or possession of the United States or
14        the District of Columbia;
15             (2)  the applicant provides OBRE with a  certificate
16        of   good   standing   from   the  applicant's  licensing
17        authority;
18             (3)  the  applicant   completes   and   submits   an
19        application provided by OBRE; and
20             (4)  the applicant pays all applicable fees required
21        under this Act.
22        (b)  A  nonresident  applicant  shall file an irrevocable
23    consent form  with  OBRE  authorizing  that  actions  may  be
24    commenced  against the applicant or nonresident licensee in a
25    court of competent jurisdiction in the State of  Illinois  by
26    the service of summons, process, or other pleading authorized
27    by  law  upon  the Commissioner.  The consent shall stipulate
28    and agree that service of the summons, process,  or  pleading
29    upon  the  Commissioner shall be taken and held in all courts
30    to be valid and binding as if actual service  had  been  made
31    upon  the  nonresident  licensee  in Illinois.  If a summons,
32    process, or other pleading is served upon  the  Commissioner,
33    it  shall  be  by  duplicate  copies,  one  of which shall be
 
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 1    retained by OBRE and the other shall be immediately forwarded
 2    by certified or registered mail to the last known address  of
 3    the  nonresident  licensee against whom the summons, process,
 4    or other pleading is directed.

 5        Section 5-25.  Pre-license education  requirements.   The
 6    prerequisite  classroom  hours  necessary  for a person to be
 7    approved to sit for the  examination  for  a  home  inspector
 8    shall be established by rule.

 9        Section 5-30.  Continuing education renewal requirements.
10    The continuing education requirements for a person to renew a
11    license as a home inspector shall be established by rule.

12             Section 5-45.  Fees.  OBRE shall establish rules for
13    fees  to  be  paid  by  applicants and licensees to cover the
14    reasonable costs of OBRE in administering and  enforcing  the
15    provisions  of  this  Act.  OBRE may also establish rules for
16    general fees to cover the reasonable expenses of carrying out
17    other functions and responsibilities under this Act.

18              ARTICLE 10.  BUSINESS PRACTICE PROVISIONS

19        Section  10-5.  Standards  of  practice.    All   persons
20    licensed  under  this  Act  must  comply  with  standards  of
21    professional  home inspection adopted by OBRE and established
22    by rule.  OBRE shall consider nationally recognized standards
23    and codes prior to adopting the rules for  the  standards  of
24    practice.

25        Section  10-10.  Retention of records.  A person licensed
26    under this Act shall retain the original or a true and  exact
27    copy of all written contracts engaging his or her services as
28    a  home  inspector and all home inspection reports, including
 
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 1    any supporting data  used  to  develop  the  home  inspection
 2    report,  for  a  period of 5 years or 2 years after the final
 3    disposition of any judicial proceeding in which testimony was
 4    given, whichever is longer.

 5                ARTICLE 15.  DISCIPLINARY PROVISIONS

 6        Section  15-5.  Unlicensed   practice;   civil   penalty;
 7    injunctive relief.
 8        (a)  Any  person  who  violates  Section  5-5 of this Act
 9    shall, in addition to any other penalty provided by law,  pay
10    a  civil  penalty  to OBRE in an amount not to exceed $10,000
11    for each violation as determined by  the  Commissioner.   The
12    civil  penalty  shall be assessed by the Commissioner after a
13    hearing in accordance with the provisions of this Act.
14        (b)  OBRE has the authority to investigate  any  activity
15    that  may  violate  this  Act or the rules adopted under this
16    Act.
17        (c)  A civil penalty shall be paid within 60  days  after
18    the  effective  date of the order imposing the civil penalty.
19    The OBRE may petition the circuit court  for  a  judgment  to
20    enforce  the  collection of the penalty.  Any civil penalties
21    collected under this Act shall be made payable to the  Office
22    of  Banks  and  Real  Estate  and  deposited  into  the  Home
23    Inspector  Administration Fund.  In addition to or in lieu of
24    the  imposition  of  a  civil  penalty,  OBRE  may  report  a
25    violation of this Act or the failure  or  refusal  to  comply
26    with  an  order  of  OBRE  to  the  Attorney  General  or the
27    appropriate State's Attorney.
28        (d)  Practicing as a home  inspector  without  holding  a
29    valid  license  as  required under this Act is declared to be
30    adverse  to  the  public  welfare,  to  constitute  a  public
31    nuisance,  and  to  cause  irreparable  harm  to  the  public
32    welfare.  The Commissioner,  the  Attorney  General,  or  the
 
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 1    State's  Attorney  of any county in the State may maintain an
 2    action for injunctive relief in the name of the People of the
 3    State of Illinois in any circuit court to enjoin  any  person
 4    from engaging in such practice.
 5        Upon  the  filing  of  a  verified  petition in a circuit
 6    court, the court, if satisfied by affidavit or otherwise that
 7    a person has been engaged in the practice of home inspections
 8    without a valid license, may enter  a  temporary  restraining
 9    order  without  notice  or  bond enjoining the defendant from
10    further practice.  The showing of non-licensure, by affidavit
11    or otherwise, is sufficient for the issuance of  a  temporary
12    injunction.  A copy of the verified complaint shall be served
13    upon the defendant and the proceeding shall be  conducted  as
14    in  other civil cases except as modified by this Section.  If
15    it is established that the defendant has been or  is  engaged
16    in  unlawful  practice,  the  court  may  enter  an  order or
17    judgment perpetually enjoining  the  defendant  from  further
18    unlawful  practice.    In all proceedings under this Section,
19    the court, in its discretion, may apportion the  costs  among
20    the  parties  interested in the action, including the cost of
21    filing the complaint, service of process,  witness  fees  and
22    expenses,  court  reporter charges, and reasonable attorneys'
23    fees. These injunction proceedings shall be in  addition  to,
24    and not in lieu of, all penalties and other remedies provided
25    in this Act.

26        Section 15-10.  Grounds for disciplinary action.
27        (a)  The  Office  of  Banks  and Real Estate may suspend,
28    revoke, or refuse to  issue  or  renew  a  license,  and  may
29    reprimand,  place on probation or administrative supervision,
30    or  otherwise  discipline  a  licensee,  including   imposing
31    conditions  limiting the scope, nature, or extent of the home
32    inspection practice of a licensee  and  may  impose  a  civil
33    penalty not to exceed $10,000 upon a licensee, for one or any
 
                            -10-               LRB9205853LBmg
 1    combination of the following:
 2             (1)  Procuring or attempting to procure a license by
 3        knowingly  making  a  false  statement,  submitting false
 4        information,   making    any    form    of    fraud    or
 5        misrepresentation,   or   refusing  to  provide  complete
 6        information in response to a question in  an  application
 7        for licensure.
 8             (2)  Failing  to meet the minimum qualifications for
 9        licensure as a home inspector established by this Act.
10             (3)  Paying money, other than for the fees  provided
11        for  by this Act, or anything of value to a member of the
12        Board or an employee of the  Office  of  Banks  and  Real
13        Estate to procure licensure under this Act.
14             (4)  Being  convicted  of  a  felony in any state or
15        federal court; of any  crime,  an  essential  element  of
16        which  is  dishonesty,  fraud, theft, or embezzlement; of
17        obtaining money, property, or credit by false  pretenses;
18        or  of  any other crime that is reasonably related to the
19        practice of home inspection.
20             (5)  Committing  an   act  or   omission   involving
21        dishonesty,  fraud,  or misrepresentation with the intent
22        to substantially benefit the licensee or  another  person
23        or  with  the  intent  to  substantially  injure  another
24        person.
25             (6)  Violating  a  provision  or  standard  for  the
26        development  or  communication  of  home  inspections  as
27        provided in Section 10-5 of this Act or as defined in the
28        rules.
29             (7)  Failing  or  refusing  without  good  cause  to
30        exercise   reasonable   diligence   in  the  development,
31        reporting, or communication of a home inspection  report,
32        as defined by this Act or the rules.
33             (8)  Violating a provision of this Act or the rules.
34             (9)  Having  been  disciplined by another state, the
 
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 1        District of Columbia, a territory, a  foreign  nation,  a
 2        governmental  agency,  or  any other entity authorized to
 3        impose discipline if at least one of the grounds for that
 4        discipline is the same as or the equivalent of one of the
 5        grounds for which a licensee  may  be  disciplined  under
 6        this Act.
 7             (10)  Engaging   in   dishonorable,   unethical,  or
 8        unprofessional conduct of a character likely to  deceive,
 9        defraud, or harm the public.
10             (11)  Accepting  an  inspection  assignment when the
11        employment itself is contingent upon the  home  inspector
12        reporting  a  predetermined  analysis or opinion, or when
13        the fee to be  paid  is  contingent  upon  the  analysis,
14        opinion,  or  conclusion reached or upon the consequences
15        resulting from the home inspection assignment.
16             (12)  Developing   home   inspection   opinions   or
17        conclusions based on  the  race,  color,  religion,  sex,
18        national  origin,  ancestry,  age, marital status, family
19        status,  physical  or  mental  handicap,  or  unfavorable
20        military discharge, as defined under the  Illinois  Human
21        Rights  Act,  of  the  prospective  or  present owners or
22        occupants of the area or property under home inspection.
23             (13)  Being adjudicated liable in a civil proceeding
24        on grounds of fraud, misrepresentation, or deceit.   In a
25        disciplinary proceeding based upon  a  finding  of  civil
26        liability,  the  home  inspector  shall  be  afforded  an
27        opportunity   to   present   mitigating  and  extenuating
28        circumstances, but may not collaterally attack the  civil
29        adjudication.
30             (14)  Being adjudicated liable in a civil proceeding
31        for violation of a State or federal fair housing law.
32             (15)  Engaging    in    misleading   or   untruthful
33        advertising  or  using  a  trade  name  or  insignia   of
34        membership in a home inspection organization of which the
 
                            -12-               LRB9205853LBmg
 1        licensee is not a member.
 2             (16)  Failing   to  fully  cooperate  with  an  OBRE
 3        investigation by  knowingly  making  a  false  statement,
 4        submitting  false  or misleading information, or refusing
 5        to provide complete information in  response  to  written
 6        interrogatories  or  a  written request for documentation
 7        within 30 days of the request.
 8             (17)  Failing to include within the home  inspection
 9        report  the  home inspector's license number and the date
10        of  expiration  of  the  license.   All  home  inspectors
11        providing significant contribution to the development and
12        reporting of a home inspection must be disclosed  in  the
13        home inspection report. It is a violation of this Act for
14        a home inspector to sign a home inspection report knowing
15        that a person providing a significant contribution to the
16        report  has  not  been  disclosed  in the home inspection
17        report.
18             (18)  Acting in a dual capacity as a home  inspector
19        and   an   undisclosed   principal   in   a  real  estate
20        transaction.
21             (19)  Acting in a dual capacity as a home  inspector
22        and a broker in a real estate transaction.
23             (20)  Acting  in a dual capacity as a home inspector
24        and a real estate  appraiser  in  the  same  real  estate
25        transaction.
26             (21)  Performing  or  agreeing to perform any repair
27        or maintenance  in  connection  with  a  home  inspection
28        pursuant  to  the  terms of a real estate contract, lease
29        agreement, or exchange of real estate.
30        (b)  The Office of Banks and  Real  Estate  may  suspend,
31    revoke,  or  refuse to issue or renew an education provider's
32    license, may reprimand,  place  on  probation,  or  otherwise
33    discipline an education provider licensee, and may suspend or
34    revoke  the  course  approval  of  any  course  offered by an
 
                            -13-               LRB9205853LBmg
 1    education provider, for any of the following:
 2             (1)  Procuring or attempting to procure licensure by
 3        knowingly making  a  false  statement,  submitting  false
 4        information,    making    any    form    of    fraud   or
 5        misrepresentation,  or  refusing  to   provide   complete
 6        information  in  response to a question in an application
 7        for licensure.
 8             (2)  Failing to comply with the covenants  certified
 9        to  on  the  application  for  licensure  as an education
10        provider.
11             (3)  Committing  an  act   or   omission   involving
12        dishonesty,  fraud, or  misrepresentation or allowing any
13        such act or omission by any employee or contractor  under
14        the control of the education provider.
15             (4)  Engaging    in    misleading    or   untruthful
16        advertising.
17             (5)  Failing  to  retain  competent  instructors  in
18        accordance with rules adopted under this Act.
19             (6)  Failing to meet the topic or time  requirements
20        for  course  approval  as  the  provider of a pre-license
21        curriculum course or a continuing education course.
22             (7)  Failing to administer an approved course  using
23        the   course   materials,   syllabus,   and  examinations
24        submitted as the basis of the course approval.
25             (8)  Failing to  provide  an  appropriate  classroom
26        environment    for    presentation   of   courses,   with
27        consideration for student comfort,  acoustics,  lighting,
28        seating, workspace, and visual aid material.
29             (9)  Failing   to   maintain   student   records  in
30        compliance with the rules adopted under this Act.
31             (10)  Failing to provide a certificate,  transcript,
32        or other student record to OBRE or to a student as may be
33        required by rule.
34             (11)  Failing   to  fully  cooperate  with  an  OBRE
 
                            -14-               LRB9205853LBmg
 1        investigation by  knowingly  making  a  false  statement,
 2        submitting  false  or misleading information, or refusing
 3        to 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, OBRE may resolve  a  complaint
 7    against  a  licensee  through  the  issuance  of a Consent to
 8    Administrative Supervision order.  A licensee  subject  to  a
 9    Consent   to   Administrative   Supervision  order  shall  be
10    considered by OBRE as an active licensee  in  good  standing.
11    This  order shall not be reported as or considered by OBRE to
12    be a discipline of the licensee.  The  records  regarding  an
13    investigation  and  a  Consent  to Administrative Supervision
14    order shall be  considered  confidential  and  shall  not  be
15    released  by OBRE except as mandated by law.  The complainant
16    shall be notified that his or her complaint has been resolved
17    by a Consent to Administrative Supervision order.

18        Section  15-15.  Investigation; notice; hearing.
19        (a)  Upon the request of the Office  of  Banks  and  Real
20    Estate  or  the  Board,  or  upon a complaint in writing of a
21    person setting forth facts that, if proven, would  constitute
22    grounds  for  suspension,  revocation,  or other disciplinary
23    action against a licensee or  applicant  for  licensure,  the
24    Office of Banks and Real Estate shall investigate the actions
25    of the licensee or applicant so accused.
26        (b)  Formal  disciplinary proceedings shall commence upon
27    the issuance of a written  complaint  detailing  the  charges
28    that are the basis of the disciplinary action and delivery of
29    the  detailed  complaint  to  the  address  of  record of the
30    licensee or applicant.  OBRE shall  notify  the  licensee  or
31    applicant  to  file  a verified written answer within 20 days
32    after  the  service  of  the  notice   and   complaint.   The
33    notification  shall  inform the licensee or applicant that he
 
                            -15-               LRB9205853LBmg
 1    or she has a right to be heard in person or by legal counsel;
 2    that the hearing will be afforded not  sooner  than  30  days
 3    after  receipt  of  the  answer to the specific charges; that
 4    failure to file an answer will  result  in  a  default  being
 5    entered  against  the  licensee  or  applicant;  and that the
 6    license may be suspended, revoked, or placed on  probationary
 7    status and other disciplinary action may be taken pursuant to
 8    this  Act, including limiting the scope, nature, or extent of
 9    the licensee's practice. If the licensee or  applicant  fails
10    to  file an answer after receiving notice, his or her license
11    may, at the discretion  of  the  Office  of  Banks  and  Real
12    Estate,  be  suspended,  revoked,  or  placed on probationary
13    status and the Office of  Banks  and  Real  Estate  may  take
14    whatever  disciplinary  action  it  deems  proper,  including
15    limiting  the  scope,  nature,  or  extent  of  the  person's
16    practice, without a hearing.
17        (c)  At the time and place fixed in the notice, the Board
18    shall  conduct  a  hearing of the charges, providing both the
19    accused person  and  the  complainant  ample  opportunity  to
20    present  in  person or by counsel such statements, testimony,
21    evidence, and arguments as may be pertinent to the charges or
22    to any defense thereto.
23        (d)  The  Board  shall  present  to  the  Commissioner  a
24    written report of its findings and recommendations. A copy of
25    the report shall be served upon the  licensee  or  applicant,
26    either  personally or by certified mail. Within 20 days after
27    the service,  the  licensee  or  applicant  may  present  the
28    Commissioner with a motion in writing for either a rehearing,
29    a  proposed  finding  of  fact,  a  conclusion  of law, or an
30    alternative  sanction,  and  shall  specify  the   particular
31    grounds  for  the request. If the accused shall order and pay
32    for a transcript of the record as provided in this  Act,  the
33    time  elapsing  thereafter and before the transcript is ready
34    for delivery to the accused shall not be counted as  part  of
 
                            -16-               LRB9205853LBmg
 1    the  20  days.   If  the  Commissioner  is not satisfied that
 2    substantial justice has been done, the Commissioner may order
 3    a rehearing by the Board or other special committee appointed
 4    by the Commissioner, may remand the matter to the  Board  for
 5    their  reconsideration  of  the matter based on the pleadings
 6    and evidence presented to the Board, or  may  enter  a  final
 7    order  in contravention of the Board's recommendation. In all
 8    instances, under this Act, in which the Board has rendered  a
 9    recommendation   to   the  Commissioner  with  respect  to  a
10    particular licensee or applicant, the Commissioner, if he  or
11    she  disagrees  with  the  recommendation of the Board, shall
12    file with the Board and provide to the licensee or  applicant
13    the  Commissioner's specific written reasons for disagreement
14    with the Board. The reasons shall be filed within 60 days  of
15    the  Board's  recommendation to the Commissioner and prior to
16    any contrary action. At the expiration of the time  specified
17    for  filing  a motion for a rehearing, the Commissioner shall
18    have the right to take any of the actions specified  in  this
19    paragraph.  Upon  the  suspension or revocation of a license,
20    the licensee shall  be  required  to  surrender  his  or  her
21    license  to  OBRE, and upon failure or refusal to do so, OBRE
22    shall have the right to seize the license.
23        (e)  The Office of Banks and Real Estate has the power to
24    issue subpoenas and subpoenas duces tecum to bring before  it
25    any  person  in  this State, to take testimony, or to require
26    production of any records relevant to an inquiry  or  hearing
27    by  the  Board  in  the  same  manner as prescribed by law in
28    judicial proceedings in the courts of this State.  In a  case
29    of  refusal  of  a  witness to attend, testify, or to produce
30    books or papers concerning a matter  upon  which  he  or  she
31    might  be  lawfully examined, the circuit court of the county
32    where the hearing is held, upon application of the Office  of
33    Banks  and  Real  Estate  or any party to the proceeding, may
34    compel obedience by proceedings as for contempt of court.
 
                            -17-               LRB9205853LBmg
 1        (f)  Any  license  that  is  suspended  indefinitely   or
 2    revoked  may not be restored for a minimum period of 2 years.
 3    After the 2 year period, OBRE may restore the license without
 4    examination, upon the written recommendation of the Board.

 5        Section 15-20.  Administrative Review Law;  certification
 6    fees; Administrative Procedure Act.
 7        (a)  All    final   administrative   decisions   of   the
 8    Commissioner under this Act are subject  to  judicial  review
 9    pursuant  to  the provisions of the Administrative Review Law
10    and  the  rules   adopted   pursuant   thereto.    The   term
11    "administrative  decision"  has the meaning ascribed to it in
12    Section 3-101 of the Administrative Review Law.
13        (b)  OBRE shall not be required to  certify  any  record,
14    file  any answer, or otherwise appear unless the party filing
15    the administrative review complaint  pays  the  certification
16    fee  to OBRE as provided by rule.  Failure on the part of the
17    plaintiff to  make  such  a  deposit  shall  be  grounds  for
18    dismissal of the action.
19        (c)  The Administrative Procedure Act is hereby expressly
20    adopted  and incorporated herein.  In the event of a conflict
21    between this Act and the Administrative Procedure  Act,  this
22    Act shall control.

23        Section  15-25.  Temporary  suspension.  The Commissioner
24    may temporarily suspend the license of a licensee  without  a
25    hearing,  while  instituting  a  proceeding  for a hearing as
26    provided  for  in  Section  15-15  of  this   Act,   if   the
27    Commissioner  finds  that  the  evidence  indicates  that the
28    public interest, safety,  or  welfare  imperatively  requires
29    emergency   action.   In  the  event  that  the  Commissioner
30    temporarily suspends the license without a hearing before the
31    Board, a hearing shall be  held  within  30  days  after  the
32    suspension  has  occurred.  The suspended licensee may seek a
 
                            -18-               LRB9205853LBmg
 1    continuance of the hearing during which the suspension  shall
 2    remain in effect.   The proceeding shall be concluded without
 3    appreciable delay.

 4        Section 15-30.  Statute of limitations.  No action may be
 5    taken under this Act against a person licensed under this Act
 6    unless  the  action  is  commenced  within  5 years after the
 7    occurrence of the alleged violation.  A continuing  violation
 8    is deemed to have occurred on the date when the circumstances
 9    last  existed  that  gave  rise  to  the  alleged  continuing
10    violation.

11        Section  15-35.  Signature  of the Commissioner. An order
12    of revocation or suspension or a certified copy of the order,
13    bearing the seal of OBRE and purporting to be signed  by  the
14    Commissioner, shall be prima facie proof that:
15             (1)  the  signature  is the genuine signature of the
16        Commissioner;
17             (2)  the  Commissioner   is   duly   appointed   and
18        qualified; and
19             (3)  the Board and its members are qualified.
20    This proof may be rebutted.

21        Section  15-40.  Violation  of tax Acts.  OBRE may refuse
22    to issue or renew or may suspend the license  of  any  person
23    who fails to file a return, pay the tax, penalty, or interest
24    shown  in a filed return, or pay any final assessment of tax,
25    penalty, or interest, as required by any tax Act administered
26    by  the  Department  of  Revenue,  until  such  time  as  the
27    requirements of that tax Act are satisfied.

28        Section 15-45.  Disciplinary action for educational  loan
29    defaults.  OBRE shall deny a license or renewal authorized by
30    this Act to a person who has defaulted on an educational loan
 
                            -19-               LRB9205853LBmg
 1    or scholarship provided or guaranteed by the Illinois Student
 2    Assistance Commission or  any  governmental  agency  of  this
 3    State.  OBRE may issue a license or renewal if the person has
 4    established a satisfactory repayment record as determined  by
 5    the   Illinois   Student   Assistance   Commission  or  other
 6    appropriate governmental agency of this State.  Additionally,
 7    a  license  issued by OBRE may be suspended or revoked if the
 8    Commissioner, after the opportunity for a hearing under  this
 9    Act,  finds that the licensee has failed to make satisfactory
10    repayment to the Illinois Student Assistance Commission for a
11    delinquent or defaulted loan.

12        Section 15-50.  Nonpayment of  child  support.  In  cases
13    where  the Department of Public Aid has previously determined
14    that a licensee or a potential licensee is more than 30  days
15    delinquent   in   the   payment  of  child  support  and  has
16    subsequently certified the  delinquency  to  OBRE,  OBRE  may
17    refuse  to  issue  or  renew  or  may  revoke or suspend that
18    person's  license  or  may  take  other  disciplinary  action
19    against that person based solely upon  the  certification  of
20    delinquency   made   by   the   Department   of  Public  Aid.
21    Redetermination of the  delinquency  by  OBRE  shall  not  be
22    required.  In  cases regarding the renewal of a license, OBRE
23    shall not renew any license if the Department of  Public  Aid
24    has certified the licensee to be more than 30 days delinquent
25    in  the  payment  of  child  support  unless the licensee has
26    arranged for  payment  of  past  and  current  child  support
27    obligations  in  a  manner  satisfactory to the Department of
28    Public Aid. OBRE  may  impose  conditions,  restrictions,  or
29    disciplinary action upon that renewal.

30        Section    15-55.  Returned    checks;    penalty    fee;
31    termination.   A person who delivers a check or other payment
32    to OBRE that is returned to  OBRE  unpaid  by  the  financial
 
                            -20-               LRB9205853LBmg
 1    institution  upon  which  it  was drawn shall pay to OBRE, in
 2    addition to the amount already owed, a penalty  fee  of  $50.
 3    OBRE  shall  notify  the  person,  by  certified  mail return
 4    receipt requested, that his  or  her  check  or  payment  was
 5    returned  and  that the person shall pay to OBRE by certified
 6    check or money order the amount of the returned check plus  a
 7    $50 penalty fee within 30 calendar days after the date of the
 8    notification.   If,  after the expiration of 30 calendar days
 9    of the notification, the  person  has  failed  to  remit  the
10    necessary   funds   and  penalty,  OBRE  shall  automatically
11    terminate  the  license  or  deny  the  application   without
12    hearing.   If  the  returned  check  or other payment was for
13    issuance  of  a  license  under  this  Act  and  that  person
14    practices as a home inspector, that person may be subject  to
15    discipline  for  unlicensed practice as provided in this Act.
16    If, after termination or denial, the person seeks a  license,
17    he  or  she shall petition OBRE for restoration and he or she
18    may be  subject  to  additional  discipline  or  fines.   The
19    Commissioner  may waive the penalties or fines due under this
20    Section in individual cases where the Commissioner finds that
21    the penalties or fines would be unreasonable or unnecessarily
22    burdensome.

23        Section 15-60.  Cease and desist orders.  OBRE may issue,
24    cease and desist orders to persons who engage  in  activities
25    prohibited  by  this Act.  Any person in violation of a cease
26    and desist order issued by OBRE is  subject  to  all  of  the
27    penalties provided by law.

28                  ARTICLE 20.  EDUCATION PROVISIONS

29        Section 20-5.  Education provider.
30        (a)  Beginning  January 1, 2002, only education providers
31    licensed by OBRE may provide the pre-license  and  continuing
 
                            -21-               LRB9205853LBmg
 1    education courses required for licensure under this Act.
 2        (b)  A  person  or  entity  seeking  to be licensed as an
 3    education provider under this Act shall provide  satisfactory
 4    evidence of the following:
 5             (1)  a   sound   financial  base  for  establishing,
 6        promoting, and delivering the necessary courses;
 7             (2)  a sufficient number of qualified instructors;
 8             (3)  adequate  support  personnel  to  assist   with
 9        administrative matters and technical assistance;
10             (4)  a  written  policy  dealing with procedures for
11        management of grievances and fee refunds;
12             (5)  a  qualified  school  administrator,   who   is
13        responsible   for   the  administration  of  the  school,
14        courses, and the actions of the instructors; and
15             (6)  any other requirements provided by rule.
16        (c)  All applicants for an education  provider's  license
17    shall  make  initial application to OBRE on forms provided by
18    OBRE and pay the appropriate fee as  provided  by  rule.  The
19    term, expiration date, and renewal of an education provider's
20    license shall be established by rule.
21        (d)  An  education provider shall provide each successful
22    course participant with a certificate of completion signed by
23    the school administrator.  The  format  and  content  of  the
24    certificate shall be specified by rule.
25        (e)  All  education  providers  shall  provide  to OBRE a
26    monthly roster  of  all  successful  course  participants  as
27    provided by rule.

28        Section 20-10.  Course approval.
29        (a)  Only  courses  that are approved by OBRE and offered
30    by licensed education providers shall be  used  to  meet  the
31    requirements of this Act and rules.
32        (b)  An  education  provider  licensed under this Act may
33    submit  courses  to  OBRE  for   approval.    The   criteria,
 
                            -22-               LRB9205853LBmg
 1    requirements,  and  fees  for courses shall be established by
 2    rule.
 3        (c)  For  each  course  approved,  OBRE  shall  issue   a
 4    certificate  of  course  approval  to the education provider.
 5    The term, expiration date, and renewal of a  course  approval
 6    shall be established by rule.

 7               ARTICLE 25.  ADMINISTRATIVE PROVISIONS

 8        Section   25-5.  Home   Inspector   Administration  Fund;
 9    surcharge.
10        (a)  The Home Inspector Administration Fund is created as
11    a special fund in the State Treasury.  All fees,  fines,  and
12    penalties  received by OBRE under this Act shall be deposited
13    into the Home Inspector  Administration  Fund.  All  earnings
14    attributable  to  investment  of  funds in the Home Inspector
15    Administration Fund shall be credited to the  Home  Inspector
16    Administration  Fund. Subject to appropriation, the moneys in
17    the Home Inspector Administration Fund shall be  appropriated
18    to  OBRE  for  the expenses incurred by OBRE and the Board in
19    the administration of this Act.
20        (b)  The State  Comptroller  and  State  Treasurer  shall
21    transfer $150,000 from the Real Estate License Administration
22    Fund  to  the  Home  Inspector Administration Fund on July 1,
23    2002.
24        The State Treasurer shall transfer $50,000 from the  Home
25    Inspector  Administration  Fund  to  the  Real Estate License
26    Administration Fund on July 1, 2003, July 1, 2004,  and  July
27    1, 2005; except that if there is a sufficient fund balance in
28    the  Home Inspector Administration Fund, the Commissioner may
29    recommend  the  acceleration  of  any  of   these   repayment
30    transfers  to  the State Comptroller and State Treasurer, who
31    may,  in  their  discretion,  accelerate  the  transfers   in
32    accordance with the Commissioner's recommendation.
 
                            -23-               LRB9205853LBmg
 1        (c)  Until  a  total  of $150,000 has been transferred to
 2    the Home Inspector Administration Fund from the  Real  Estate
 3    License   Administration  Fund  under  subsection  (b),  each
 4    initial applicant for a license under this Act shall  pay  to
 5    OBRE  a  surcharge  of  $150  in addition to the license fees
 6    otherwise required under this Act.
 7        (d)  Upon  the  completion  of  any  audit  of  OBRE,  as
 8    prescribed by the Illinois State Auditing Act, that  includes
 9    an  audit  of  the  Home  Inspector Administration Fund, OBRE
10    shall make  the  audit  report  open  to  inspection  by  any
11    interested person.

12        Section 25-10.  Home Inspector Advisory Board.
13        (a)  There  is hereby created the Home Inspector Advisory
14    Board.  The Board shall  be  composed  of  7  voting  members
15    appointed by the Commissioner, plus the liaison under Section
16    25-15,  who shall serve ex officio and without vote.  Members
17    shall be appointed to the  Board  subject  to  the  following
18    conditions:
19             (1)  All appointed members shall have been residents
20        and  citizens of this State for at least 5 years prior to
21        the date of appointment.
22             (2)  The appointed membership of  the  Board  should
23        reasonably  reflect  the  geographic  distribution of the
24        population of the State.
25             (3)  Five  appointed  members  shall   be   actively
26        engaged and currently licensed as home inspectors, except
27        that  the  initial  appointees  may  be persons without a
28        license who have been actively engaged as home inspectors
29        for a period of 5 years immediately before the  effective
30        date  of this Act.  Failure of an initial appointee under
31        this item (3) to obtain a  license  by  January  1,  2003
32        shall constitute resignation from the Board.
33             (4)  One appointed member shall hold a valid license
 
                            -24-               LRB9205853LBmg
 1        as  a  real  estate  broker  and shall have been actively
 2        engaged as a real estate broker for a period of not  less
 3        than 5 years.
 4             (5)  One   appointed   member  shall  represent  the
 5        interests of the general public.   This  member  and  the
 6        member's spouse shall not be licensed under this Act, nor
 7        be employed by nor have any interest in a home inspection
 8        business or a real estate brokerage business.
 9        In  making  appointments  to  the Board, the Commissioner
10    shall give due consideration to  recommendations  by  members
11    and  organizations  representing the home inspection and real
12    estate industries.
13        (b)  The term for members of the Board shall be 4  years,
14    except   for   the   initial   appointees.   Of  the  initial
15    appointees, 4 members shall be  appointed  for  terms  ending
16    January  1,  2007  and 3 members shall be appointed for terms
17    ending January 1, 2006.  No member shall serve more  than  10
18    years in a lifetime.
19        (c)  The  Commissioner  may  terminate the appointment of
20    any  member  for  cause  that,  in   the   opinion   of   the
21    Commissioner, reasonably justifies the termination. Cause for
22    termination  may  include,  without  limitation,  misconduct,
23    incapacity,  neglect  of  duty,  or  missing 4 Board meetings
24    during any one calendar year.
25        (d)  A majority of the voting members currently appointed
26    shall constitute a quorum.  A vacancy in  the  membership  of
27    the  Board shall not impair the right of a quorum to exercise
28    all of the rights and perform all of the duties of the Board.
29        (e)  The Board shall meet at least quarterly and  may  be
30    convened by the Chairperson or 3 members of the Board upon 10
31    days' written notice.
32        (g)  The  liaison  appointed pursuant to Section 25-15 of
33    this Act shall serve,  ex  officio,  as  Chairperson  of  the
34    Board, without vote.
 
                            -25-               LRB9205853LBmg
 1        (h)  The  Board shall advise OBRE on matters of licensing
 2    and education and shall make recommendations to OBRE on those
 3    matters.   OBRE  shall  give   due   consideration   to   all
 4    recommendations presented by the Board.
 5        (i)  The Board shall hear and make recommendations to the
 6    Commissioner  on  disciplinary  matters that require a formal
 7    evidentiary  hearing.   The  Commissioner  shall   give   due
 8    consideration  to  the recommendations of the Board involving
 9    discipline and questions about the standards of  professional
10    conduct of licensees.
11        (j)  The   Board   may   make   recommendations  to  OBRE
12    concerning the consistency of the rules with  the  provisions
13    of  this  Act  and  the administration and enforcement of the
14    rules.   OBRE   shall   give   due   consideration   to   the
15    recommendations of the Board prior to promulgating rules.
16        (k)  The  Board shall make recommendations to OBRE on the
17    approval of courses submitted to OBRE pursuant  to  this  Act
18    and   rules.   OBRE  shall  give  due  consideration  to  the
19    recommendations of the Board prior to approving courses.
20        (l)  Each voting member of the Board shall receive a  per
21    diem   stipend   in   an  amount  to  be  determined  by  the
22    Commissioner.  Each voting member shall be paid  his  or  her
23    necessary expenses while engaged in the performance of his or
24    her duties.
25        (m)  Members of the Board shall be immune from suit in an
26    action  based upon any disciplinary proceedings or other acts
27    performed in good faith as members of the Board.

28        Section 25-15.  Liaison; duties.  The Commissioner  shall
29    appoint an employee of OBRE to:
30             (1)  serve as a liaison to and as Chairperson of the
31        Home Inspector Advisory Board, without vote;
32             (2)  be   the   direct  liaison  between  OBRE,  the
33        profession,  home  inspectors,   and   related   industry
 
                            -26-               LRB9205853LBmg
 1        organizations and associations; and
 2             (3)  prepare   and   circulate   to  licensees  such
 3        educational and  informational  material  as  OBRE  deems
 4        necessary   for   providing  guidance  or  assistance  to
 5        licensees.

 6        Section 25-20.  OBRE; powers and duties.  The  Office  of
 7    Banks  and  Real  Estate shall exercise the powers and duties
 8    prescribed by the Civil Administrative Code of  Illinois  for
 9    the  administration of licensing acts and shall exercise such
10    other powers and duties as are prescribed by this Act for the
11    administration of this Act.  OBRE  may  contract  with  third
12    parties  for services necessary for the proper administration
13    of this Act,  including,  without  limitation,  investigators
14    with  the  proper knowledge, training, and skills to properly
15    investigate complaints against home inspectors.

16        Section  25-25.  Rules.   OBRE,  after  considering   any
17    recommendations  of the Board, shall adopt any rules that may
18    be necessary  for  the  administration,  implementation,  and
19    enforcement of this Act.

20        Section  25-30.  Exclusive  State  powers  and functions;
21    municipal powers.  It is declared to be the public policy  of
22    this State, pursuant to paragraph (h) of Section 6 of Article
23    VII  of  the Illinois Constitution of 1970, that any power or
24    function set forth in this Act to be exercised by  the  State
25    is  an  exclusive  State  power  or function.  Such power and
26    function shall not be exercised concurrently, either directly
27    or indirectly, by any unit  of  local  government,  including
28    home rule units.

29                 ARTICLE 950.  AMENDATORY PROVISIONS
 
                            -27-               LRB9205853LBmg
 1        Section  950-5.  The  Regulatory Sunset Act is amended by
 2    adding Section 4.22 as follows:

 3        (5 ILCS 801/4.22 new)
 4        Sec.  4.22.  Act  repealed  on  January  1,  2012.    The
 5    following Act is repealed on January 1, 2012.
 6        The Home Inspector License Act.

 7        Section  950-10.  The  State  Finance  Act  is amended by
 8    adding Section 5.545 as follows:

 9        (30 ILCS 105/5.545 new)
10        Sec. 5.545.  The Home Inspector Administration Fund.

11                    ARTICLE 999.  EFFECTIVE DATE

12        Section 999-99.  Effective date.  This Act  takes  effect
13    upon becoming law.

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