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Public Act 91-0758
SB1704 Enrolled LRB9113109ACtm
AN ACT to amend the Real Estate Appraiser Licensing Act.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Real Estate Appraiser Licensing Act is
amended by changing Sections 15, 55, 60, 85, 90, and 95 as
follows:
(225 ILCS 457/15)
Sec. 15. License requirement; title; exemptions.
(a) No person shall engage in the business of, act in
the capacity of, advertise, or assume to act as a real estate
appraiser, develop or report real estate appraisals, or
appraise real estate, in a federally related transaction,
without a license to practice as a real estate appraiser
issued by the Office under this Act. A person who violates
this subsection is guilty of a Class A misdemeanor.
(b) No person, other than a State Certified General Real
Estate Appraiser, State Certified Residential Real Estate
Appraiser, or State Licensed Real Estate Appraiser licensed
under this Act whose license is in good standing, shall
assume or use these titles or any other title, designation,
or abbreviation likely to create the impression that the
person is licensed by the State of Illinois as a real estate
appraiser. A person who violates this subsection is guilty of
a Class A misdemeanor.
(Source: P.A. 90-571, eff. 7-1-98.)
(225 ILCS 457/55)
Sec. 55. Examination prerequisites. As a prerequisite to
taking the examination for a rank of appraiser licensure, an
applicant shall (i) present evidence of successful completion
of a 4-year course of study in a high school or secondary
school approved by the Illinois State Board of Education or
an equivalent course of study as determined by an examination
conducted by the Illinois State Board of Education which
shall be verified under oath by the applicant and (ii)
present evidence, satisfactory to the Office of Banks and
Real Estate, that the applicant has successfully completed
not less than 165 150 classroom hours in the case of an
applicant for a State Certified General Real Estate Appraiser
license, 105 90 classroom hours in the case of an applicant
for a State Certified Residential Real Estate Appraiser
license, or 75 60 classroom hours in the case of an applicant
for a State Licensed Real Estate Appraiser license, or that
amount mandated or recommended by the Appraisal
Qualifications Board in accordance with under Title XI of the
federal Financial Institutions Reform, Recovery and
Enforcement Act of 1989, whichever is greater, or their
equivalent as provided by rule, of courses in subjects
relating to real estate appraisal. In addition, the applicant
shall present evidence of successful completion of 15
classroom hours relating to standards of professional
practice. The classroom hours required by this Section shall
be obtained from one or more of the following entities
approved by the Office of Banks and Real Estate:
(1) a college or university;
(2) a community college or junior college;
(3) a real estate appraisal or real estate related
organization;
(4) a trade association or organization that
consists in whole or in part of members engaged in real
estate appraising; or
(5) any other provider approved by the Office of
Banks and Real Estate.
The Office of Banks and Real Estate shall require by rule
completion of course work in fair housing and fair lending,
which shall be included within the requirements of this
Section.
(Source: P.A. 90-571, eff. 7-1-98.)
(225 ILCS 457/60)
Sec. 60. Experience requirement.
(a) A license as a State Certified General Real Estate
Appraiser or State Certified Residential Real Estate
Appraiser shall not be issued to a person who does not
possess 2 years of experience, or that amount mandated under
Title XI of the federal Financial Institutions Reform,
Recovery and Enforcement Act of 1989, whichever is greater,
or their equivalent as provided by rule of the Office of
Banks and Real Estate. For the purposes of this Section, one
year of experience means 1,000 hours of experience.
Approved experience shall include fee appraisal, staff
appraisal, mass appraisal in accordance with the USPAP, ad
valorem tax appraisal, mass ad valorem tax appraisal in
accordance with the USPAP, review appraisal in accordance
with the USPAP, highest and best use analysis, feasibility
analysis or study in accordance with the USPAP, real estate
sales and brokerage, real estate consulting in accordance
with the USPAP, real property management, and other related
experience approved by the Office of Banks and Real Estate
and in accordance with the USPAP. Nevertheless, the amount of
credit granted for this experience shall be equivalent to the
amount of credit that may be granted for the experience under
Title XI of the federal Financial Institutions Reform,
Recovery and Enforcement Act of 1989.
An applicant for a license shall provide to the Office of
Banks and Real Estate on forms prescribed by rule of the
Office a summary of the level and type of experience for
which the applicant is claiming credit. To obtain experience
credit for the preparation of a written appraisal report, the
applicant shall provide in the experience summary the date of
appraisal, the type of property, the approximate size of the
property (including land and improvements), and the general
location of the property. Nothing in this Section shall
require, as a condition of obtaining experience credit, that
a real estate appraiser disclose the identity of the client
for whom the appraisal was performed. The Office of Banks and
Real Estate may require that an applicant provide samples of
the applicant's work for which experience is claimed.
Of the total experience requirement, at least 50% must be
earned in one or more of the following areas: fee appraisal,
staff appraisal, ad valorem tax appraisal, review appraisal,
or real estate consulting.
(b) An applicant who has been engaged in appraising
real property for ad valorem purposes as a local assessment
officer, as defined in Section 1-85 of the Property Tax Code
or as a deputy or employee of a local assessment officer,
shall receive experience credit for the number of hours the
applicant was engaged in one or more of the following duties:
(1) the analysis and establishment of the value of
properties through the cost, income, and market sale
appraisal techniques;
(2) model development and calibration in relation
to mass ad valorem tax assessments; and
(3) the review and analysis of appraisals employing
cost, income, and market sale appraisal techniques.
The experience under this subsection (b) shall not be
required to be set forth in the form of the experience
summary as provided in subsection (a) of Section 60. All
persons who seek experience credit under this subsection (b)
shall attach his or her own affidavit as a supporting
document to the application form of the Office of Banks and
Real Estate. The applicant's affidavit shall detail the
experience for which credit is being claimed and the length
of time the applicant was engaged in these duties as a local
assessment officer, or deputy or employee of a local
assessment officer. The applicant shall attach to this
affidavit an Assessment Experience Certification form
executed by the local assessment officer or his or her
designee in the following form:
"Assessment Experience Certification.
Pursuant to the provisions of subsection (b) of
Section 60 of the Real Estate Appraiser Licensing Act, it
is hereby certified that (Applicant's Name) was engaged
in appraising (residential .....%) (nonresidential....%)
real estate for ad valorem tax purposes as a local
assessment officer, or as a deputy or employee of a local
assessment officer, from (date) through (date) and
during this time period was engaged in one or more of the
following duties: (1) the analysis and establishment of
the value of properties through the cost, income, and
market sale appraisal techniques; (2) model development
and calibration in relation to mass ad valorem tax
assessments; (3) the review and analysis of appraisals
employing cost, income, and market sale appraisal
techniques, and that the experience is accurately
described in the affidavit to which this Certificate is
attached and supported by assessment records available
under Section 14-30 of the Property Tax Code or the
Freedom of Information Act.
By:
_________________________
Local Assessment Officer"
Upon submission of the application, affidavit, and the
Assessment Experience Certification form, the Commissioner
shall grant the experience credit set forth in this
subsection. Notwithstanding other provisions of this Act, the
amount of experience credit granted for appraising real
property for ad valorem tax purposes as a local assessment
officer, or deputy or employee of a local assessment officer,
shall be equivalent to the amount of credit that may be
granted for that experience under the provisions of Title XI
of the federal Financial Institutions Reform, Recovery and
Enforcement Act of 1989.
(c) An applicant who has been licensed for 5 of the
previous 7 years with the Office of Banks and Real Estate as
a real estate broker or real estate salesperson shall receive
credit for appraisal experience equal to 40% of the total
experience requirement. This experience as a real estate
broker or real estate salesperson shall not be required to be
set forth in the form required in subsection (a). The balance
of the experience requirement shall be set forth in the form
of the experience summary as provided in subsection (a).
(d) Of the total experience requirement for State
Certified General Real Estate Appraisers, at least 50% must
be approved experience relating to nonresidential real
estate.
(e) Of the total experience required for State Certified
Residential Real Estate Appraisers, at least 50% must be
approved experience relating to residential real estate.
(f) Proof of experience shall not be required for
licensure as a State Licensed Real Estate Appraiser. The
license of a State Licensed Real Estate Appraiser shall be an
entry level licensing rank, and the license may be held from
the date of issuance for the balance of the initial license
and through 2 renewals and then shall not be renewed; except
that a licensee in this rank on the effective date of this
amendatory Act of the 91st General Assembly may renew the
license so that it is valid until September 30, 2003, but
shall not be allowed to renew the license after that date.
who has been licensed for a period of 2 years shall be
renewed only if the licensee meets the following experience
requirements:
(1) Prior to the first renewal after the licensee
has been licensed for 2 years, the licensee possesses at
least 500 hours of experience. A licensee may, at the
time of applying for the first renewal, submit 1,000
hours of experience.
(2) Unless the licensee submitted 1,000 hours of
experience under the provisions of subdivision (1), prior
to the second renewal after the licensee has been
licensed for a period of 2 years, the licensee possesses
500 hours experience. The experience required under this
subdivision must be earned after the first renewal after
the licensee has been licensed for a period of 2 years.
All real estate appraisal experience granted shall be in
accordance with this Section.
(g) The Office of Banks and Real Estate may waive the
experience requirement of this Section for good cause. A
renewal applicant seeking renewal of a license without having
fully complied with the experience requirement of subsection
(a) shall file with the Office of Banks and Real Estate a
renewal application, the required renewal fee, an affidavit
setting forth the facts concerning the noncompliance, a
request for waiver of the experience requirement on the basis
of those facts, and a waiver processing fee of $25. If the
Office of Banks and Real Estate finds from the affidavit or
any other evidence submitted that good cause has been shown
for granting a waiver, the Office of Banks and Real Estate
shall waive enforcement of the experience requirement for the
renewal period for which the applicant has applied. For
purposes of this subsection, "good cause" means an inability
of the applicant to reasonably complete the requisite
appraisal experience because there has been an insufficient
amount of appraisal activity in the geographic area where the
applicant practices real estate appraising. In determining
whether good cause exists, the Office of Banks and Real
Estate may consider (i) the amount of appraisal experience
earned by the applicant in proportion to the total appraisal
activity within the geographic area where the applicant
practices real estate appraising and (ii) the reasonableness
of the geographic area the applicant defines as the area
where the applicant practices real estate appraising. "Good
cause" shall also include an inability of the applicant to
complete the experience requirement because of extreme
hardship, which includes but is not limited to an
incapacitating illness or full-time service in the armed
services in the United States of America, during a
substantial part of the prerenewal period.
(Source: P.A. 90-571, eff. 7-1-98.)
(225 ILCS 457/85)
Sec. 85. Continuing education requirements.
(a) An appraiser licensed as a State Certified General
Real Estate Appraiser or a State Certified Residential Real
Estate Appraiser under this Act As a prerequisite to renewal
of an appraiser license, a renewal applicant shall present
evidence satisfactory to the Office of Banks and Real Estate
of having completed not less than 28 20 hours of continuing
education per renewal period or that amount mandated under
Title XI of the Federal Financial Institutions Reform,
Recovery and Enforcement Act of 1989, whichever is greater,
or their equivalent as provided by rule, from courses
approved by the Office and presented by real estate appraisal
education providers licensed by the Office.
The Office of Banks and Real Estate may provide by rule
for the temporary waiver of continuing education requirements
for good cause.
(b) In lieu of meeting the requirements of subsection
(a) of this Section, an applicant for renewal of a license
may satisfy up to 50% all or part of the requirements by
presenting evidence of participation as an instructor of
pre-licensure or continuing education courses licensed by the
Office and presented by providers licensed by the Office as
real estate appraisal education providers other than as a
student, in educational processes and programs approved
pursuant to subsection (a) that relate to real property
appraisal theory, practices, or techniques, including but not
limited to teaching, program development, and preparation of
textbooks, monographs, articles, and other instructional
materials.
(c) The Office of Banks and Real Estate may by rule
require periodic testing of a licensee's understanding of
this Act. Continuing education credit hours may be awarded
for successful completion of the periodic examination.
(d) The Office of Banks and Real Estate shall require by
rule the completion of course work in fair housing and fair
lending, which shall be included within the requirements of
this Section.
(Source: P.A. 90-571, eff. 7-1-98.)
(225 ILCS 457/90)
Sec. 90. Grounds for disciplinary action.
(a) Pursuant to the action and report in writing of the
Board, the Office of Banks and Real Estate may suspend,
revoke, or refuse to issue or renew the license of an
appraiser or place on probation or reprimand a licensee, may
impose a civil penalty not to exceed $10,000 upon a licensee,
or the holder of a license may be placed on administrative
supervision or otherwise disciplined for any one or
combination of the following reasons:
(1) Procuring or attempting to procure a license by
knowingly making a false statement, submitting false
information, refusing to provide complete information in
response to a question in an application for licensure or
through any form of fraud or misrepresentation.
(2) Failing to meet the minimum qualifications for
licensure as an appraiser established by this Act.
(3) Paying money, other than for the fees provided
for by this Act, or anything of value to a member or
employee of the Board or Office of Banks and Real Estate
to procure licensure under this Act.
(4) A conviction of a crime, including conviction
based upon a plea of guilty or nolo contendere.
(5) An act or omission involving dishonesty, fraud,
or misrepresentation with the intent to substantially
benefit the licensee or another person or with intent to
substantially injure another person.
(6) Violation of a provision or standard for the
development or communication of real estate appraisals as
provided in Section 110 of this Act or by rule.
(7) Failure or refusal without good cause to
exercise reasonable diligence in developing and reporting
or communicating an appraisal.
(8) Negligence or incompetence in developing and
reporting or communicating an appraisal.
(9) Willfully disregarding or violating a provision
of this Act or its rules.
(10) Accepting an appraisal assignment for
valuation when the employment itself is contingent upon
the appraiser reporting a predetermined estimate,
analysis, or opinion or when the fee to be paid is
contingent upon the opinion, conclusion, or valuation
reached or upon the consequences resulting from the
appraisal assignment.
(11) Developing valuation conclusions based on the
race, color, religion, sex, national origin, ancestry,
age, marital status, familiar status, physical or mental
handicap, or unfavorable military discharge, as defined
under the Illinois Human Rights Act, of the prospective
or present owners or occupants of the area or property
under appraisal.
(12) Violation of the confidential nature of
government records to which the licensee gained access
through employment or engagement as an appraiser by a
government agency.
(13) Adjudication of liability in a civil
proceeding on grounds of fraud, misrepresentation, or
deceit. In a disciplinary proceeding based upon a finding
of civil liability, the appraiser shall be afforded an
opportunity to present mitigating and extenuating
circumstances, but may not collaterally attack the civil
adjudication.
(14) Adjudication of liability in a civil
proceeding for violation of a State or federal fair
housing law.
(15) Engaging in misleading or untruthful
advertising or using a trade name or insignia of
membership in a real estate appraisal or real estate
related organization of which the licensee is not a
member.
(16) Failure to fully cooperate with an Office
investigation by knowingly making a false statement,
submitting false information, or refusing to provide
complete information in response to a question or other
requests by the Office.
(17) Failing to include within the certificate of
appraisal for all written appraisal reports the
appraiser's license number, licensure title (State
Licensed Real Estate Appraiser, State Certified
Residential Real Estate Appraiser, or State Certified
General Real Estate Appraiser), and the date of
expiration of the license. All appraisers providing
significant contribution to the development and reporting
of an appraisal must be disclosed in the appraisal
report. It is a violation of this Act for an appraiser
to sign a report, transmittal letter, or appraisal
certification knowing that a person providing significant
contribution to the report has not been disclosed in the
appraisal report.
(b) Pursuant to the action and report in writing of the
Board, the Office of Banks and Real Estate may suspend,
revoke, place on probation, reprimand, or otherwise
discipline the license of an appraisal education course
provider or course license subordinate to the providership,
or may refuse to issue or renew a course license or
provider's license and may also impose a civil penalty not to
exceed $10,000 upon the holder of the course or provider's
license for any of the following acts or omissions:
(1) Procuring or attempting to procure licensure by
knowingly making a false statement, submitting false
information, refusing to provide complete information in
response to a question in an application for licensure or
through any form of fraud or misrepresentation.
(2) Failing to comply with covenants certified to
on the application for licensure as an appraisal
education provider, appraisal education subprovider,
prelicensure course, or continuing education course.
(3) An act or omission involving dishonesty, fraud,
or misrepresentation by the course provider or any
employees or independent contractors of the provider.
(4) Engaging in misleading or untruthful
advertising.
(5) Failing to retain competent instructors in
accordance with rules adopted under this Act.
(6) Failing to meet the topic or time requirements
for course approval as a prelicensure curriculum course
or a continuing education course.
(7) Failing to administer a licensed course using
the course materials, syllabus, and examinations
submitted as the basis of licensure.
(8) Failing to provide an appropriate classroom
environment for presentation of courses with
consideration for student comfort, acoustics, lighting,
seating, work space, and visual aid material.
(9) Failing to maintain student records in
compliance with rules adopted under this Act.
(10) Failing to provide certificates, transcripts,
or other student records to the Office or student as may
be required by rule.
(11) Failure to fully cooperate with an Office
investigation by knowingly making a false statement,
submitting false information, or refusing to provide
complete information in response to a question or other
requests by the Office.
(c) Notwithstanding the provisions of this Act
concerning the conduct of hearings and recommendations for
disciplinary actions, a conference panel of the Board may
recommend to the Office of Banks and Real Estate who shall
have the authority to negotiate settlement agreements with
State Licensed Real Estate Appraisers, State Certified
General Real Estate Appraisers, State Certified Residential
Real Estate Appraisers, and appraiser education licensees or
applicants, resulting in disciplinary Consent Orders. Consent
Orders may provide for any of the forms of discipline
provided in this Act. Consent Orders shall provide that they
were not entered into as a result of any coercion by the
Office of Banks and Real Estate, the Director of Real Estate
Appraisal Administration, or the Board. A Consent Order shall
be filed with the Commissioner along with the Board's
recommendation and accepted or rejected by the Commissioner
in a timely manner.
(d) Notwithstanding the provisions of this Act
concerning the conduct of hearings and recommendations for
disciplinary actions, a conference panel of the Board may
recommend to the Office of Banks and Real Estate who on the
Board shall have the authority to negotiate settlement
agreements with State Licensed Real Estate Appraisers, State
Certified General Real Estate Appraisers, State Certified
Residential Real Estate Appraisers, appraiser education
licensees or applicants, resulting in disciplinary Consent to
Administrative Supervision Orders. Consent to Administrative
Supervision Orders may be offered with conditions that may
include but shall not be limited to the respondent's
attendance and successful completion of appraisal courses,
payment of part or all of the investigation and prosecution
costs associated with the complaint and replacement of
appraiser rank with a lower rank. Consent to Administrative
Supervision Orders shall provide that they were not entered
into as a result of coercion by the Office of Banks and Real
Estate, the Director of Real Estate Appraisal Administration,
or the Board. Consent to Administrative Supervision Order
shall be filed with the Commissioner along with the Board's
recommendation and accepted or rejected by the Commissioner
in a timely manner. A licensee subject to a Consent to
Administrative Supervision Order shall be considered by the
Office as an active appraiser in good standing and the
records regarding an investigation and a Consent to
Administrative Supervision Order are confidential and shall
not be released by the Office except as mandated by law.
However, the complainant shall be notified that his or her
complaint has been resolved by administrative supervision of
the respondent.
(e) Civil penalties and costs collected under this
Section are to be deposited into the Appraisal Administration
Fund.
(f) Civil penalties imposed by the Office of Banks and
Real Estate shall be enforceable in the Circuit Court. The
Office may petition the Court for a judgment to enforce
collection of the penalty. Any civil penalties collected by
the Court shall be made payable to the Office of Banks and
Real Estate for deposit into the Appraisal Administration
Fund. In addition to or in lieu of the imposition of a civil
penalty, the Office may report a violation of this Act or the
failure or refusal to comply with an order of the Office to
the Attorney General and the appropriate State's Attorney.
(Source: P.A. 90-571, eff. 7-1-98.)
(225 ILCS 457/95)
Sec. 95. Unlicensed practice; civil penalty.
(a) A person who practices, offers to practice, attempts
to practice, or holds himself or herself out to practice as a
State Licensed Real Estate Appraiser, State Certified
Residential Real Estate Appraiser, or State Certified General
Real Estate Appraiser without being licensed under this Act
shall, in addition to any other penalty provided by law, pay
a civil penalty to the Office of Banks and Real Estate in an
amount not to exceed $5,000 for each offense as determined by
the Office of Banks and Real Estate. The civil penalty shall
be assessed by the Office of Banks and Real Estate after a
hearing is held in accordance with the provisions set forth
in this Act regarding the provision of a hearing for the
discipline of a licensee.
(b) The Office of Banks and Real Estate has the
authority and power to investigate any and all unlicensed
appraiser activity concerning federally related transactions.
(c) Civil penalties imposed by the Office of Banks and
Real Estate shall be enforceable in the Circuit Court. The
Office may shall petition the Court for a judgment an order
to enforce collection of the penalty and, if the Court finds
it has jurisdiction over the person against whom the penalty
was imposed, the Court shall issue the appropriate order.
Any civil penalties collected by the Court shall be made
payable to the Office of Banks and Real Estate for deposit
into the Appraisal Administration Fund forwarded to the State
Treasurer. In addition to or in lieu of the imposition of a
civil penalty, the Office may report a violation of this Act
or and the failure or refusal to comply with an the order of
the Office to the Attorney General and the appropriate
State's Attorney.
(Source: P.A. 90-571, eff. 7-1-98.)
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