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Public Act 92-0180
HB2540 Enrolled LRB9201097LBpcA
AN ACT regarding appraisers.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1. GENERAL PROVISIONS
Section 1-1. Short title. This Act may be cited as the
Real Estate Appraiser Licensing Act of 2002.
Section 1-5. Legislative intent. The intent of the
General Assembly in enacting this Act is to evaluate the
competency of persons engaged in the appraisal of real estate
in connection with a federally related transaction and to
license and regulate those persons for the protection of the
public. Additionally, it is the intent of the General
Assembly for this Act to be consistent with the provisions of
Title XI of the federal Financial Institutions Reform,
Recovery and Enforcement Act of 1989.
Section 1-10. Definitions. As used in this Act, unless
the context otherwise requires:
"Applicant" means person who applies to OBRE for a
license under this Act.
"Appraisal" means (noun) the act or process of developing
an opinion of value; an opinion of value (adjective) of or
pertaining to appraising and related functions.
"Appraisal report" means a written appraisal by an
appraiser to a client.
"Appraisal Subcommittee" means the Appraisal Subcommittee
of the Federal Financial Institutions Examination Council as
established by Title XI.
"Appraiser" means a person who performs real estate or
real property appraisals.
"AQB" means the Appraisal Qualifications Board of the
Appraisal Foundation.
"Associate real estate appraiser" means an entry-level
appraiser who holds a license of this classification under
this Act and applies to the appraisal of non-complex property
having a transaction value less than $1,000,000, but with
restrictions as to the scope of practice in accordance with
this Act.
"Board" means the Real Estate Appraisal Board.
"Classroom hour" means 50 minutes of instruction out of
each 60 minute segment of coursework.
"Client" means a person who utilizes the services of an
appraiser or engages an appraiser for an appraisal by
employment or contract.
"Commissioner" means the Commissioner of the Office of
Banks and Real Estate or his or her designee.
"Director" means the Director of the Real Estate
Appraisal Division of OBRE or his or her designee.
"Federal financial institutions regulatory agencies"
means the Board of Governors of the Federal Reserve System,
the Federal Deposit Insurance Corporation, the Office of the
Comptroller of the Currency, the Office of Thrift
Supervision, and the National Credit Union Administration.
"Federally related transaction" means any real
estate-related financial transaction in which a federal
financial institutions regulatory agency, the Department of
Housing and Urban Development, Fannie Mae, Freddie Mae, or
the National Credit Union Administration engages in,
contracts for, or regulates and requires the services of an
appraiser.
"Financial institution" means any bank, savings bank,
savings and loan association, credit union, mortgage broker,
mortgage banker, licensee under the Consumer Installment Loan
Act or the Sales Finance Agency Act, or a corporate
fiduciary, subsidiary, affiliate, parent company, or holding
company of any such licensee, or any institution involved in
real estate financing that is regulated by state or federal
law.
"OBRE" means the Office of Banks and Real Estate.
"Real estate" means an identified parcel or tract of
land, including any improvements.
"Real estate related financial transaction" means any
transaction involving:
(1) the sale, lease, purchase, investment in, or
exchange of real property, including interests in
property or the financing thereof;
(2) the refinancing of real property or interests
in real property; and
(3) the use of real property or interest in
property as security for a loan or investment, including
mortgage backed securities.
"Real property" means the interests, benefits, and rights
inherent in the ownership of real estate.
"State certified general real estate appraiser" means an
appraiser who holds a license of this classification under
this Act and such classification applies to the appraisal of
all types of real property without restrictions as to the
scope of practice.
"State certified residential real estate appraiser" means
an appraiser who holds a license of this classification under
this Act and such classification applies to the appraisal of
one to 4 units of residential real property without regard to
transaction value or complexity, but with restrictions as to
the scope of practice in a federally related transaction in
accordance with Title XI, the provisions of USPAP, criteria
established by the AQB, and further defined by rule.
"State licensed real estate appraiser" means an appraiser
who holds a real estate appraiser license issued pursuant to
a predecessor Act. A real estate appraiser license
authorizes its holder to conduct the appraisal of non-complex
one to 4 units of residential real property having a
transaction value less than $1,000,000 and complex one to 4
residential units of real property having a value less than
$250,000, but with restrictions as to the scope of practice
in accordance with Title XI, criteria established by USPAP,
by the AQB, by this Act, and by rule. No such initial
license shall be issued after the effective date of this Act
or renewed after September 30, 2003 under this Act.
"Title XI" means Title XI of the federal Financial
Institutions Reform, Recovery and Enforcement Act of 1989.
"USPAP" means the Uniform Standards of Professional
Appraisal Practice as promulgated by the Appraisal Standards
Board pursuant to Title XI and by rule.
ARTICLE 5. LICENSING PROVISIONS
Section 5-5. Necessity of license; use of title;
exemptions.
(a) Beginning July 1, 2002, it is unlawful for a person
to act or assume to act as a real estate appraiser, to engage
in the business of real estate appraisal, to develop a real
estate appraisal, to practice as a real estate appraiser, or
to advertise or hold himself or herself out to be a real
estate appraiser in connection with a federally related
transaction without a real estate appraiser license issued
under this Act. A person who violates this subsection is
guilty of a Class A misdemeanor.
(b) Beginning July 1, 2002, it is unlawful for a person,
other than a person who holds a valid license issued pursuant
to this Act as a State certified general real estate
appraiser, a State certified residential real estate
appraiser, an associate real estate appraiser, or as a State
licensed real estate appraiser issued pursuant to a
predecessor Act to use these titles or any other title,
designation, or abbreviation likely to create the impression
that the person is licensed as a real estate appraiser
pursuant to this Act. A person who violates this subsection
is guilty of a Class A misdemeanor.
(c) The licensing requirements of this Act do not
require a real estate broker or salesperson who holds a valid
license pursuant to the Real Estate License Act of 2000, to
be licensed as a real estate appraiser under this Act, unless
the broker or salesperson is providing or attempting to
provide an appraisal report, as defined in Section 1-10 of
this Act, in connection with a federally-related transaction.
For the purposes of this subsection, "brokerage service"
means the activity of offering, negotiating, buying, listing,
selling, or leasing real estate or procuring or referring
prospects intended to result in the listing, sale, purchase,
lease, or exchange of real estate for another and for
compensation.
Section 5-10. Application for State certified general
real estate appraiser. Every person who desires to obtain a
State certified general real estate appraiser license shall:
(1) apply to OBRE on forms provided by OBRE accompanied
by the required fee;
(2) be at least 18 years of age;
(3) provide evidence of having attained a high school
diploma or completed an equivalent course of study as
determined by an examination conducted or accepted by the
Illinois State Board of Education;
(4) personally take and pass an examination authorized
by OBRE and endorsed by the AQB;
(5) prior to taking the examination, provide evidence to
OBRE that he or she has successfully completed the
prerequisite classroom hours of instruction in appraising as
established by the AQB and by rule; and
(6) prior to taking the examination, provide evidence
to OBRE that he or she has successfully completed the
prerequisite experience requirements in appraising as
established by AQB and by rule.
Section 5-15. Application for State certified
residential real estate appraiser. Every person who desires
to obtain a State certified residential real estate appraiser
license shall:
(1) apply to OBRE on forms provided by OBRE accompanied
by the required fee;
(2) be at least 18 years of age;
(3) provide evidence of having attained a high school
diploma or completed an equivalent course of study as
determined by an examination conducted or accepted by the
Illinois State Board of Education;
(4) personally take and pass an examination authorized
by OBRE and endorsed by the AQB;
(5) prior to taking the examination, provide evidence to
OBRE that he or she has successfully completed the
prerequisite classroom hours of instruction in appraising as
established by the AQB and by rule; and
(6) prior to taking the examination, provide evidence to
OBRE that he or she has successfully completed the
prerequisite experience requirements as established by AQB
and by rule.
Section 5-20. Application for associate real estate
appraiser.
(a) Every person who desires to obtain an associate real
estate appraiser license shall:
(1) apply to OBRE on forms provided by OBRE
accompanied by the required fee;
(2) be at least 18 years of age;
(3) provide evidence of having attained a high
school diploma or completed an equivalent course of study
as determined by an examination conducted or accepted by
the Illinois State Board of Education;
(4) personally take and pass an examination
authorized by OBRE and endorsed by the AQB; and
(5) prior to taking the examination, provide
evidence to OBRE that he or she has successfully
completed the prerequisite classroom hours of instruction
in appraising as established by rule.
(b) A person who holds a valid license as a licensed
real estate appraiser, issued pursuant to a predecessor Act,
may convert that license to an associate real estate
appraiser license by making application to OBRE on forms
provided by OBRE accompanied by the required fee.
Section 5-25. Renewal of license.
(a) The expiration date and renewal period for a State
certified general real estate appraiser license or a State
certified residential real estate appraiser license issued
under this Act shall be set by rule. Except as otherwise
provided in subsections (b) and (f) of this Section, the
holder of a license may renew the license within 90 days
preceding the expiration date by:
(1) completing and submitting to OBRE a renewal
application form as provided by OBRE;
(2) paying the required fees; and
(3) providing evidence of successful completion of
the continuing education requirements through courses
approved by OBRE from education providers licensed by
OBRE, as established by the AQB and by rule.
(b) A State certified general real estate appraiser or
State certified residential real estate appraiser whose
license under this Act has expired may renew the license for
a period of 2 years following the expiration date by
complying with the requirements of paragraphs (1), (2), and
(3) of subsection (a) of this Section and paying any late
penalties established by rule.
(c) A State licensed real estate appraiser's license
issued pursuant to a predecessor Act shall continue in effect
until the earlier of its expiration date or September 30,
2003. The holder of such a license may not renew the license
for any period after September 30, 2003, but may convert the
license to an associate real estate appraiser license under
this Act until September 30, 2003 pursuant to subsection (b)
of Section 5-20 of this Act.
(d) The expiration date and renewal period for an
associate real estate appraiser license issued under this Act
shall be set by rule. Except as otherwise provided in
subsections (e) and (f) of this Section, the holder of an
associate real estate appraiser license may renew the license
within 90 days preceding the expiration date by:
(1) completing and submitting to OBRE a renewal
application form as provided by OBRE;
(2) paying the required fees; and
(3) providing evidence of successful completion of
the continuing education requirements through courses
approved by OBRE from education providers approved by
OBRE, as established by rule.
(e) Any associate real estate appraiser whose license
under this Act has expired may renew the license for a period
of 2 years following the expiration date by complying with
the requirements of paragraphs (1), (2), and (3) of
subsection (d) of this Section and paying any late penalties
as established by rule.
(f) Notwithstanding subsections (c) and (e), an
appraiser whose license under this Act has expired may renew
or convert the license without paying any lapsed renewal fees
or late penalties if the license expired while the appraiser
was:
(1) on active duty with the United States Armed
Services;
(2) serving as the Director of Real Estate
Appraisal or an employee of OBRE who was required to
surrender his or her license during the term of
employment.
Application for renewal must be made within 2 years
following the termination of the military service or related
education, training, or employment. The licensee shall
furnish OBRE with an affidavit that he or she was so engaged.
(g) OBRE shall provide reasonable care and due diligence
to ensure that each licensee under this Act is provided with
a renewal application at least 90 days prior to the
expiration date, but each licensee is responsible to timely
renew or convert his or her license prior to its expiration
date.
Section 5-30. Reciprocity; consent to jurisdiction.
(a) A nonresident who holds a valid appraiser license
issued to him or her by the proper licensing authority of a
state, territory, possession of the United States, or the
District of Columbia that has licensing requirements equal to
or substantially equivalent to the requirements of the State
of Illinois and otherwise meets the requirements for
licensure may obtain a license without examination, provided
that:
(1) OBRE has entered into a valid reciprocal
agreement with the proper licensing authority of the
state, territory, or possession of the United States, or
the District of Columbia;
(2) the applicant provides OBRE with a certificate
of good standing from the licensing authority of the
applicant's place of residence or by an Appraisal
Subcommittee registry history report;
(3) the applicant completes and submits an
application as provided by OBRE and the applicant pays
all applicable fees required under this Act.
(b) A nonresident applicant shall file an irrevocable
consent with OBRE authorizing that actions may be commenced
against the applicant or nonresident licensee in a court of
competent jurisdiction in the State of Illinois by the
service of summons, process, or other pleading authorized by
law upon the Commissioner. The consent shall stipulate and
agree that service of the summons, process, or pleading upon
the Commissioner shall be taken and held in all courts to be
valid and binding as if actual service had been made upon the
nonresident licensee in Illinois. If a summons, process, or
other pleading is served upon the Commissioner, it shall be
by duplicate copies, one of which shall be retained by OBRE
and the other of which shall be immediately forwarded by
certified or registered mail to the last known address of the
nonresident licensee against whom the summons, process, or
other pleading may be directed.
Section 5-35. Pre-license education requirements.
(a) The prerequisite classroom hours necessary for a
person to be approved to sit for the examination for
licensure as a State certified general real estate appraiser
or a State certified residential real estate appraiser shall
be in accordance with AQB criteria and established by rule.
(b) The prerequisite classroom hours necessary for a
person to sit for the examination for licensure as an
associate real estate appraiser shall be established by rule.
Section 5-40. Pre-license experience requirements. The
prerequisite experience necessary for a person to be approved
to sit for the examination for licensure as a State certified
general real estate appraiser or a State certified
residential real estate appraiser shall be in accordance with
AQB criteria and established by rule.
Section 5-45. Continuing education renewal requirements.
(a) The continuing education requirements for a person
to renew a license as a State certified general real estate
appraiser or a State certified residential real estate
appraiser shall be in accordance with AQB criteria and
established by rule.
(b) The continuing education requirements for a person
to renew a license as an associate real estate appraiser
shall be established by rule.
Section 5-50. Temporary practice permits. A nonresident
appraiser who holds a valid appraiser license in another
state, territory, possession of the United States, or the
District of Columbia may be granted a temporary practice
permit to practice as an appraiser in the State of Illinois
upon making an application and paying the applicable fees
pursuant to Appraisal Subcommittee policy statements and as
established by rule.
Section 5-55. Fees. OBRE shall establish rules for fees
to be paid by applicants and licensees to cover the
reasonable costs of OBRE in administering and enforcing the
provisions of this Act. OBRE may also establish rules for
general fees to cover the reasonable expenses of carrying out
other functions and responsibilities under this Act.
ARTICLE 10. BUSINESS PRACTICE PROVISIONS
Section 10-5. Scope of practice.
(a) This Act does not limit a State certified general
real estate appraiser in his or her scope of practice in a
federally related transaction. A certified general real
estate appraiser may independently provide appraisal
services, review, or consulting relating to any type of
property for which he or she has experience and is competent.
All such appraisal practice must be made in accordance with
the provisions of USPAP, criteria established by the AQB, and
rules adopted pursuant to this Act.
(b) A State certified residential real estate appraiser
is limited in his or her scope of practice in a federally
related transaction as provided by Title XI, the provisions
of USPAP, criteria established by the AQB, and the rules
adopted pursuant to this Act.
(c) A State licensed real estate appraiser is limited in
his or her scope of practice in a federally related
transaction as provided by Title XI, the provisions of USPAP,
criteria established by the AQB, and the rules adopted
pursuant to this Act. No State licensed real estate
appraiser license shall be issued on or after September 30,
2003 under this Act.
(d) An associate real estate appraiser is limited in his
or her scope of practice in all transactions in accordance
with USPAP, this Act, and the rules adopted pursuant to this
Act. In addition, an associate real estate appraiser shall
be required to have a State certified general real estate
appraiser or State certified residential real estate
appraiser who holds a valid license under this Act to co-sign
all appraisal reports.
Section 10-10. Standards of practice. All persons
licensed under this Act must comply with standards of
professional appraisal practice adopted by OBRE. OBRE must
adopt, as part of its rules, the Uniform Standards of
Professional Appraisal Practice as published from time to
time by the Appraisal Standards Board of the Appraisal
Foundation. OBRE shall consider federal laws and regulations
regarding the licensure of real estate appraisers prior to
adopting its rules for the administration of this Act.
Section 10-15. Identifying client. In addition to any
other requirements for disclosure of a client on an appraisal
report, a licensee under this Act shall also identify on the
appraisal report the individual by name who ordered or
originated the appraisal assignment.
Section 10-20. Retention of records. A person licensed
under this Act shall retain the original copy of all written
contracts engaging his or her services as an appraiser and
all appraisal reports, including any supporting data used to
develop the appraisal report, for a period of 5 years or 2
years after the final disposition of any judicial proceeding
in which testimony was given, whichever is longer. In
addition, a person licensed under this Act shall retain
contracts, logs, and appraisal reports used in meeting
pre-license experience requirements for a period of 5 years.
ARTICLE 15. DISCIPLINARY PROVISIONS
Section 15-5. Unlicensed practice; civil penalty;
injunctive relief.
(a) A person who violates Section 5-5 of this Act shall,
in addition to any other penalty provided by law, pay a civil
penalty to OBRE in an amount not to exceed $10,000 for each
violation as determined by the Commissioner. The civil
penalty shall be assessed by the Commissioner after a hearing
in accordance with the provisions of this Act.
(b) OBRE has the authority to investigate any activity
that may violate this Act.
(c) A civil penalty imposed pursuant to subsection (a)
shall be paid within 60 days after the effective date of the
order imposing the civil penalty. OBRE may petition the
circuit court for a judgment to enforce the collection of the
penalty. Any civil penalty collected under this Act shall be
made payable to the Office of Banks and Real Estate and
deposited into the Appraisal Administration Fund. In
addition to or in lieu of the imposition of a civil penalty,
OBRE may report a violation of this Act or the failure or
refusal to comply with an order of OBRE to the Attorney
General or to the appropriate State's Attorney.
(d) Practicing as an appraiser without holding a valid
license as required under this Act is declared to be adverse
to the public welfare, to constitute a public nuisance, and
to cause irreparable harm to the public welfare. The
Commissioner, the Attorney General, or the State's Attorney
of any county in the State may maintain an action for
injunctive relief in any circuit court to enjoin any person
from engaging in such practice.
Upon the filing of a verified petition in a circuit
court, the court, if satisfied by affidavit or otherwise that
a person has been engaged in the practice of real estate
appraisal without a valid license, may enter a temporary
restraining order without notice or bond enjoining the
defendant from further practice. The showing of
non-licensure, by affidavit or otherwise, is sufficient for
the issuance of a temporary injunction. If it is
established that the defendant has been or is engaged in
unlawful practice, the court may enter an order or judgment
perpetually enjoining the defendant from further unlawful
practice. In all proceedings under this Section, the court,
in its discretion, may apportion the costs among the parties
interested in the action, including the cost of filing the
complaint, service of process, witness fees and expenses,
court reporter charges, and reasonable attorneys' fees. These
injunction proceedings shall be in addition to, and not in
lieu of, all penalties and other remedies provided in this
Act.
Section 15-10. Grounds for disciplinary action.
(a) The Office of Banks and Real Estate may suspend,
revoke, refuse to issue or renew a license and may reprimand
place on probation or administrative supervision, or
otherwise discipline a licensee, including imposing
conditions limiting the scope, nature, or extent of the real
estate appraisal practice of a licensee or reducing the
appraisal rank of a licensee, and may impose a civil penalty
not to exceed $10,000 upon a licensee for one or any
combination of the following:
(1) Procuring or attempting to procure a license by
knowingly making a false statement, submitting false
information, engaging in any form of fraud or
misrepresentation, or refusing to provide complete
information in response to a question in an application
for licensure.
(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) Being convicted of any crime, an essential
element of which is dishonesty, fraud, theft, or
embezzlement, or obtaining money, property, or credit by
false pretenses, or any other crime that is reasonably
related to the practice of real estate appraisal or a
conviction in any state or federal court of any felony.
(5) Committing 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 as
defined by rule.
(6) Violating a provision or standard for the
development or communication of real estate appraisals as
provided in Section 10-10 of this Act or as defined by
rule.
(7) Failing or refusing without good cause to
exercise reasonable diligence in developing, reporting,
or communicating an appraisal, as defined by this Act or
by rule.
(8) Violating a provision of this Act or the rules
adopted pursuant to this Act.
(9) Having been disciplined by another state, the
District of Columbia, a territory, a foreign nation, a
governmental agency, or any other entity authorized to
impose discipline if at least one of the grounds for that
discipline is the same as or the equivalent of one of the
grounds for which a licensee may be disciplined under
this Act.
(10) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud, or harm the public.
(11) Accepting an appraisal assignment 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.
(12) Developing valuation conclusions based on the
race, color, religion, sex, national origin, ancestry,
age, marital status, family 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.
(13) Violating the confidential nature of
government records to which the licensee gained access
through employment or engagement as an appraiser by a
government agency.
(14) Being adjudicated liable 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.
(15) Being adjudicated liable in a civil proceeding
for violation of a state or federal fair housing law.
(16) Engaging in misleading or untruthful
advertising or using a trade name or insignia of
membership in a real estate appraisal or real estate
organization of which the licensee is not a member.
(17) Failing to fully cooperate with an OBRE
investigation by knowingly making a false statement,
submitting false or misleading information, or refusing
to provide complete information in response to written
interrogatories or a written request for documentation
within 30 days of the request.
(18) Failing to include within the certificate of
appraisal for all written appraisal reports the
appraiser's license number and licensure title. 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 a significant contribution to the report has
not been disclosed in the appraisal report.
(b) The Office of Banks and Real Estate may reprimand
suspend, revoke, or refuse to issue or renew an education
provider's license, may reprimand, place on probation, or
otherwise discipline an education provider and may suspend or
revoke the course approval of any course offered by an
education provider and may impose a civil penalty not to
exceed $10,000 upon an education provider, for any of the
following:
(1) Procuring or attempting to procure licensure by
knowingly making a false statement, submitting false
information, engaging in any form of fraud or
misrepresentation, or refusing to provide complete
information in response to a question in an application
for licensure.
(2) Failing to comply with the covenants certified
to on the application for licensure as an education
provider.
(3) Committing an act or omission involving
dishonesty, fraud, or misrepresentation or allowing any
such act or omission by any employee or contractor under
the control 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 the provider of a pre-license
curriculum course or a continuing education course.
(7) Failing to administer an approved course using
the course materials, syllabus, and examinations
submitted as the basis of the course approval.
(8) Failing to provide an appropriate classroom
environment for presentation of courses, with
consideration for student comfort, acoustics, lighting,
seating, workspace, and visual aid material.
(9) Failing to maintain student records in
compliance with the rules adopted under this Act.
(10) Failing to provide a certificate, transcript,
or other student record to OBRE or to a student as may be
required by rule.
(11) Failing to fully cooperate with an OBRE
investigation by knowingly making a false statement,
submitting false or misleading information, or refusing
to provide complete information in response to written
interrogatories or a written request for documentation
within 30 days of the request.
(c) In appropriate cases, OBRE may resolve a complaint
against a licensee through the issuance of a Consent to
Administrative Supervision order. A licensee subject to a
Consent to Administrative Supervision order shall be
considered by OBRE as an active licensee in good standing.
This order shall not be reported or considered by OBRE to be
a discipline of the licensee. The records regarding an
investigation and a Consent to Administrative Supervision
order shall be considered confidential and shall not be
released by OBRE except as mandated by law. A complainant
shall be notified if his or her complaint has been resolved
by a Consent to Administrative Supervision order.
Section 15-15. Investigation; notice; hearing.
(a) Upon the motion of the Office of Banks and Real
Estate or the Board or upon a complaint in writing of a
person setting forth facts that, if proven, would constitute
grounds for suspension, revocation, or other disciplinary
action against a licensee or applicant for licensure, the
Office of Banks and Real Estate shall investigate the actions
of the licensee or applicant.
(b) Formal disciplinary proceedings shall commence upon
the issuance of a written complaint describing the charges
that are the basis of the disciplinary action and delivery of
the detailed complaint to the address of record of the
licensee or applicant. OBRE shall notify the licensee or
applicant to file a verified written answer within 20 days
after the service of the notice and complaint. The
notification shall inform the licensee or applicant of his or
her right to be heard in person or by legal counsel; that the
hearing will be afforded not sooner than 30 days after
receipt of the answer to the specific charges; that failure
to file an answer will result in a default being entered
against the licensee or applicant; that the license may be
suspended, revoked, or placed on probationary status; and
that other disciplinary action may be taken pursuant to this
Act, including limiting the scope, nature, or extent of the
licensee's practice. If the licensee or applicant fails to
file an answer after service of notice, his or her license
may, at the discretion of the Office of Banks and Real
Estate, be suspended, revoked, or placed on probationary
status and the Office of Banks and Real Estate may take
whatever disciplinary action it deems proper, including
limiting the scope, nature, or extent of the person's
practice, without a hearing.
(c) At the time and place fixed in the notice, the Board
shall conduct hearing of the charges, providing both the
accused person and the complainant ample opportunity to
present in person or by counsel such statements, testimony,
evidence, and argument as may be pertinent to the charges or
to a defense thereto.
(d) The Board shall present to the Commissioner a
written report of its findings and recommendations. A copy
of the report shall be served upon the licensee or applicant,
either personally or by certified mail. Within 20 days after
the service, the licensee or applicant may present the
Commissioner with a motion in writing for either a rehearing,
a proposed finding of fact, a conclusion of law, or an
alternative sanction, and shall specify the particular
grounds for the request. If the accused orders a transcript
of the record as provided in this Act, the time elapsing
thereafter and before the transcript is ready for delivery to
the accused shall not be counted as part of the 20 days. If
the Commissioner is not satisfied that substantial justice
has been done, the Commissioner may order a rehearing by the
Board or other special committee appointed by the
Commissioner, may remand the matter to the Board for its
reconsideration of the matter based on the pleadings and
evidence presented to the Board, or may enter a final order
in contravention of the Board's recommendation. In all
instances under this Act in which the Board has rendered a
recommendation to the Commissioner with respect to a
particular licensee or applicant, the Commissioner, if he or
she disagrees with the recommendation of the Board, shall
file with the Board and provide to the licensee or applicant
a copy of the Commissioner's specific written reasons for
disagreement with the Board. The reasons shall be filed
within 60 days of the Board's recommendation to the
Commissioner and prior to any contrary action. At the
expiration of the time specified for filing a motion for a
rehearing, the Commissioner shall have the right to take any
of the actions specified in this subsection (d). Upon the
suspension or revocation of a license, the licensee shall be
required to surrender his or her license to OBRE, and upon
failure or refusal to do so, OBRE shall have the right to
seize the license.
(e) The Office of Banks and Real Estate has the power to
issue subpoenas and subpoenas duces tecum to bring before it
any person in this State, to take testimony, or to require
production of any records relevant to an inquiry or hearing
by the Board in the same manner as prescribed by law in
judicial proceedings in the courts of this State. In a case
of refusal of a witness to attend, testify, or to produce
books or papers concerning a matter upon which he or she
might be lawfully examined, the circuit court of the county
where the hearing is held, upon application of the Office of
Banks and Real Estate or any party to the proceeding, may
compel obedience by proceedings as for contempt.
(f) Any license that is suspended indefinitely or
revoked may not be restored for a minimum period of 2 years,
or as otherwise ordered by the Commissioner.
(g) In addition to the provisions of this Section
concerning the conduct of hearings and the recommendations
for discipline, OBRE has the authority to negotiate
disciplinary and non-disciplinary settlement agreements
concerning any license issued under this Act. All such
agreements shall be recorded as Consent Orders or Consent to
Administrative Supervision Orders.
(h) The Commissioner shall have the authority to appoint
an attorney duly licensed to practice law in the State of
Illinois to serve as the hearing officer in any action to
suspend, revoke, or otherwise discipline any license issued
by the Office of Banks and Real Estate. The Hearing Officer
shall have full authority to conduct the hearing.
(i) OBRE, at its expense, shall preserve a record of all
formal hearings of any contested case involving the
discipline of a license. At all hearings or pre-hearing
conferences, OBRE and the licensee shall be entitled to have
the proceedings transcribed by a certified shorthand
reporter. A copy of the transcribed proceedings shall be
made available to the licensee by the certified shorthand
reporter upon payment of the prevailing contract copy rate.
Section 15-20. Administrative Review Law; certification
fees; Administrative Procedure Act.
(a) All final administrative decisions of the
Commissioner under this Act are subject to judicial review
pursuant to the provisions of the Administrative Review Law
and the rules adopted pursuant thereto. The term
"administrative decision" has the meaning ascribed to it in
Section 3-101 of the Administrative Review Law.
(b) OBRE shall not be required to certify any record,
file any answer or otherwise appear unless the party filing
the administrative review complaint pays the certification
fee to OBRE as provided by rule. Failure on the part of the
plaintiff to make such a deposit shall be grounds for
dismissal of the action.
(c) The Administrative Procedures Act is hereby
expressly adopted and incorporated herein. In the event of a
conflict between this Act and the Administrative Procedures
Act, this Act shall control.
Section 15-30. Statute of limitations. No action may be
taken under this Act against a person licensed under this Act
unless the action is commenced within 5 years after the
occurrence of the alleged violation. A continuing violation
is deemed to have occurred on the date when the circumstances
last existed that gave rise to the alleged continuing
violation.
Section 15-35. Signature of the Commissioner. An order
of revocation or suspension or a certified copy of the order,
bearing the seal of OBRE and purporting to be signed by the
Commissioner, shall be prima facie proof that:
(1) the signature is the genuine signature of the
Commissioner;
(2) the Commissioner is duly appointed and
qualified; and
(3) the Board and the members thereof are
qualified.
This proof may be rebutted.
Section 15-40. Violation of tax Acts. OBRE may refuse
to issue or renew or may suspend the license of any person
who fails to file a return, pay the tax, penalty, or interest
shown in a filed return, or pay any final assessment of tax,
penalty, or interest, as required by any tax Act administered
by the Department of Revenue, until such time as the
requirements of that tax Act are satisfied.
Section 15-45. Disciplinary action for educational loan
defaults. OBRE shall deny a license or renewal authorized by
this Act to a person who has defaulted on an educational loan
or scholarship provided or guaranteed by the Illinois Student
Assistance Commission or any governmental agency of this
State; however, OBRE may issue a license or renewal if the
person has established a satisfactory repayment record as
determined by the Illinois Student Assistance Commission or
other appropriate governmental agency of this State.
Additionally, a license issued by OBRE may be suspended or
revoked if the Commissioner, after the opportunity for a
hearing under this Act, finds that the licensee has failed to
make satisfactory repayment to the Illinois Student
Assistance Commission for a delinquent or defaulted loan.
Section 15-50. Nonpayment of child support. In cases
where the Department of Public Aid has previously determined
that a licensee or a potential licensee is more than 30 days
delinquent in the payment of child support and has
subsequently certified the delinquency to OBRE, OBRE may
refuse to issue or renew or may revoke or suspend that
person's license or may take other disciplinary action
against that person based solely upon the certification of
delinquency made by the Department of Public Aid.
Redetermination of the delinquency by OBRE shall not be
required. In cases regarding the renewal of a license, OBRE
shall not renew any license if the Department of Public Aid
has certified the licensee to be more than 30 days delinquent
in the payment of child support, unless the licensee has
arranged for payment of past and current child support
obligations in a manner satisfactory to the Department of
Public Aid. OBRE may impose conditions, restrictions, or
disciplinary action upon that renewal.
Section 15-55. Returned checks; penalty; termination. A
person who delivers a check or other payment to OBRE that is
returned to OBRE unpaid by the financial institution upon
which it was drawn shall pay to OBRE, in addition to the
amount already owed, a penalty of $50. OBRE shall notify the
person, by certified mail return receipt requested, that his
or her check or payment was returned and that the person
shall pay to OBRE by certified check or money order the
amount of the returned check plus a $50 penalty within 30
calendar days after the date of the notification. If, after
the expiration of 30 calendar days of the notification, the
person has failed to remit the necessary funds and penalty,
OBRE shall automatically terminate the license or deny the
application without hearing. If the returned check or other
payment was for issuance of a license under this Act and that
person practices as an appraiser, that person may be subject
to discipline for unlicensed practice as provided in this
Act. If, after termination or denial, the person seeks a
license, he or she shall petition OBRE for restoration and he
or she may be subject to additional discipline or fines. The
Commissioner may waive the penalties or fines due under this
Section in individual cases where the Commissioner finds that
the penalties or fines would be unreasonable or unnecessarily
burdensome.
Section 15-60. Cease and desist orders. OBRE may issue
cease and desist orders to persons who engage in activities
prohibited by this Act. Any person in violation of a cease
and desist order issued by OBRE is subject to all of the
penalties provided by law.
ARTICLE 20. EDUCATION PROVISIONS
Section 20-5. Education providers.
(a) Beginning July 1, 2002, only education providers
licensed by OBRE may provide the pre-license and continuing
education courses required for licensure under this Act.
(b) A person or entity seeking to be licensed as an
education provider under this Act shall provide satisfactory
evidence of the following:
(1) a sound financial base for establishing,
promoting, and delivering the necessary courses;
(2) a sufficient number of qualified instructors;
(3) adequate support personnel to assist with
administrative matters and technical assistance;
(4) a written policy dealing with procedures for
management of grievances and fee refunds;
(5) a qualified administrator, who is responsible
for the administration of the education provider,
courses, and the actions of the instructors; and
(6) any other requirements as provided by rule.
(c) All applicants for an education provider's license
shall make initial application to OBRE on forms provided by
OBRE and pay the appropriate fee as provided by rule. The
term, expiration date, and renewal of an education provider's
license shall be established by rule.
(d) An education provider shall provide each successful
course participant with a certificate of completion signed by
the school administrator. The format and content of the
certificate shall be specified by rule.
(e) All education providers shall provide to OBRE a
monthly roster of all successful course participants as
provided by rule.
Section 20-10. Course approval.
(a) Only courses offered by licensed education providers
and approved by OBRE shall be used to meet the requirements
of this Act and rules.
(b) An education provider licensed under this Act may
submit courses to OBRE for approval. The criteria,
requirements, and fees for courses shall be established by
rule in accordance with this Act, Title XI, and the criteria
established by the AQB.
(c) For each course approved, OBRE shall issue a license
to the education provider. The term, expiration date, and
renewal of a course approval shall be established by rule.
ARTICLE 25. ADMINISTRATIVE PROVISIONS
Section 25-5. Appraisal Administration Fund; surcharge.
The Appraisal Administration Fund is created as a special
fund in the State Treasury. All fees, fines, and penalties
received by OBRE under this Act shall be deposited into the
Appraisal Administration Fund. All earnings attributable to
investment of funds in the Appraisal Administration Fund
shall be credited to the Appraisal Administration Fund.
Subject to appropriation, the moneys in the Appraisal
Administration Fund shall be paid to OBRE for the expenses
incurred by OBRE and the Board in the administration of this
Act.
Upon the completion of any audit of OBRE, as prescribed
by the Illinois State Auditing Act, which shall include an
audit of the Appraisal Administration Fund, OBRE shall make
the audit report open to inspection by any interested person.
Section 25-10. Real Estate Appraisal Board; appointment.
(a) There is hereby created the Real Estate Appraisal
Board. The Board shall be composed of 10 persons appointed
by the Governor, plus the Director of the Real Estate
Appraisal Division. Members shall be appointed to the Board
subject to the following conditions:
(1) All appointed members shall have been residents
and citizens of this State for at least 5 years prior to
the date of appointment.
(2) The appointed membership of the Board should
reasonably reflect the geographic distribution of the
population of the State.
(3) Four appointed members shall have been actively
engaged and currently licensed as State certified general
real estate appraisers for a period of not less than 5
years.
(4) Two appointed members shall have been actively
engaged and currently licensed as State certified
residential real estate appraisers for a period of not
less than 5 years.
(5) Two appointed members shall hold a valid
license as a real estate broker for at least 10 years
prior to the date of the appointment and shall hold a
valid appraiser license issued under this Act or a
predecessor Act for a period of at least 5 years prior to
the appointment.
(6) One appointed member shall be a representative
of a financial institution, as evidenced by his or her
employment with a financial institution.
(7) One appointed member shall represent the
interests of the general public. This member or his or
her spouse shall not be licensed under this Act nor be
employed by or have any interest in an appraisal
business, real estate brokerage business, or a financial
institution.
In making appointments as provided in paragraphs (3) and
(4) of this subsection, the Governor shall give due
consideration to recommendations by members and organizations
representing the real estate appraisal industry.
In making the appointments as provided in paragraph (5)
of this subsection, the Governor shall give due consideration
to the recommendations by members and organizations
representing the real estate industry.
In making the appointment as provided in paragraph (6) of
this subsection, the Governor shall give due consideration to
the recommendations by members and organizations representing
financial institutions.
(b) The term for members of the Board shall be 4 years,
except for the initial appointees. Of the initial
appointments, 4 members shall be appointed for terms ending
June 30, 2006, 3 members shall be appointed for terms ending
June 30, 2005, and 3 members shall be appointed for terms
ending June 30, 2004. No member shall serve more than 10
years in a lifetime. Those persons serving on the Board
pursuant to the Real Estate Appraiser Licensing Act shall
become members of the new Board on July 1, 2002 and shall
serve until the Governor has made the new appointments
pursuant to this Act.
(c) The Governor may terminate the appointment of a
member for cause that, in the opinion of the Governor,
reasonably justifies the termination. Cause for termination
may include, without limitation, misconduct, incapacity,
neglect of duty, or missing 4 Board meetings during any one
calendar year.
(d) A majority of the Board members currently appointed
shall constitute a quorum. A vacancy in the membership of
the Board shall not impair the right of a quorum to exercise
all of the rights and perform all of the duties of the Board.
(e) The Board shall meet at least quarterly and may be
convened by the Chairperson, Co-Chairperson, or 3 members of
the Board upon 10 days written notice.
(f) The Board shall, annually at the first meeting of
the fiscal year, elect a Chairperson and Vice-Chairperson
from its members. The Chairperson shall preside over the
meetings and shall coordinate with the Director in developing
and distributing an agenda for each meeting. In the absence
of the Chairperson, the Co-Chairperson shall preside over the
meeting.
(g) The Director of the Real Estate Appraisal Division
shall serve as a member of the Board without vote.
(h) The Board shall advise and make recommendations to
OBRE on matters of licensing and education. OBRE shall give
due consideration to all recommendations presented by the
Board.
(i) The Board shall hear and make recommendations to the
Commissioner on disciplinary matters that require a formal
evidentiary hearing. The Commissioner shall give due
consideration to the recommendations of the Board involving
discipline and questions involving standards of professional
conduct of licensees.
(j) The Board may make recommendations to OBRE
consistent with the provisions of this Act and for the
administration and enforcement of the rules adopted pursuant
to this Act. OBRE shall give due consideration to the
recommendations of the Board prior to adopting rules.
(k) The Board shall make recommendations to OBRE on the
approval of courses submitted to OBRE pursuant to this Act
and the rules adopted pursuant to this Act. OBRE shall give
due consideration to the recommendations of the Board prior
to approving and licensing courses.
(l) Each voting member of the Board shall receive a per
diem stipend in an amount to be determined by the
Commissioner. Each member shall be paid his or her necessary
expenses while engaged in the performance of his or her
duties.
(m) Members of the Board shall be immune from suit in an
action based upon any disciplinary proceedings or other acts
performed in good faith as members of the Board.
Section 25-15. Director of the Real Estate Appraisal
Division; appointment; duties. The Commissioner shall
appoint a Director of the Real Estate Appraisal Division for
a term of 4 years. The Director shall hold a valid State
certified general real estate appraiser or State certified
residential real estate appraiser license, which shall be
surrendered to OBRE during the term of his or her
appointment. The Director of the Real Estate Appraisal
Division shall:
(1) serve as a member of the Real Estate Appraisal
Board without vote;
(2) be the direct liaison between OBRE, the
profession, and the real estate appraisal industry
organizations and associations;
(3) prepare and circulate to licensees such
educational and informational material as OBRE deems
necessary for providing guidance or assistance to
licensees;
(4) appoint necessary committees to assist in the
performance of the functions and duties of OBRE under
this Act; and
(5) subject to the administrative approval of the
Commissioner, supervise the Real Estate Appraisal
Division.
In appointing the Director of the Real Estate Appraisal
Division, the Commissioner shall give due consideration to
members, organizations, and associations of the real estate
appraisal industry.
Section 25-20. OBRE; powers and duties. The Office of
Banks and Real Estate shall exercise the powers and duties
prescribed by the Civil Administrative Code of Illinois for
the administration of licensing Acts and shall exercise such
other powers and duties as are prescribed by this Act for the
administration of this Act. OBRE may contract with third
parties for services necessary for the proper administration
of this Act, including without limitation, investigators with
the proper knowledge, training, and skills to properly
investigate complaints against real estate appraisers.
OBRE shall maintain and update a registry of the names
and addresses of all licensees and a listing of disciplinary
orders issued pursuant to this Act and shall transmit the
registry, along with any national registry fees that may be
required, to the entity specified by, and in a manner
consistent with, Title XI of the federal Financial
Institutions Reform, Recovery and Enforcement Act of 1989.
Section 25-25. Rules. OBRE, after considering any
recommendations of the Board, shall adopt rules that may be
necessary for administration, implementation, and enforcement
of the Act.
Section 25-30. Exclusive State powers and functions;
municipal powers. It is declared to be the public policy of
this State, pursuant to paragraph (h) of Section 6 of Article
VII of the Illinois Constitution of 1970, that any power or
function set forth in this Act to be exercised by the State
is an exclusive State power or function. Such power and
function shall not be exercised concurrently, either directly
or indirectly, by any unit of local government, including
home rule units, except as otherwise provided in this Act.
ARTICLE 30. TRANSITION PROVISIONS
Section 30-5. Savings provisions.
(a) This Act is intended to replace the Real Estate
Appraiser Licensing Act in all respects.
(b) Beginning July 1, 2002, the rights, powers, and
duties exercised by the Office of Banks and Real Estate under
the Real Estate Appraiser Licensing Act shall continue to be
vested in, to be the obligation of, and to be exercised by
the Office of Banks and Real Estate under the provisions of
this Act.
(c) This Act does not affect any act done, ratified, or
cancelled, any right occurring or established, or any action
or proceeding commenced in an administrative, civil, or
criminal cause before July 1, 2002 by the Office of Banks and
Real Estate under the Real Estate Appraiser Licensing Act.
Those actions or proceedings may be prosecuted and continued
by the Office of Banks and Real Estate under this Act.
(d) This Act does not affect any license, certificate,
permit, or other form of licensure issued by the Office of
Banks and Real Estate under the Real Estate Appraiser
Licensing Act, except as provided is subsection (c) of
Section 5-25. All such licenses, certificates, permits, or
other form of licensure shall continue to be valid under the
terms and conditions of this Act.
(e) The rules adopted by the Office of Banks and Real
Estate relating to the Real Estate Appraiser Licensing Act,
unless inconsistent with the provisions of this Act, are not
affected by this Act, and on July 1, 2002, those rules become
rules under this Act. The Office of Banks and Real Estate
shall, as soon as practicable, adopt new or amended rules
consistent with the provisions of this Act.
(f) This Act does not affect any discipline, suspension,
or termination that has occurred under the Real Estate
Appraiser Licensing Act or other predecessor Act. Any action
for discipline, suspension, or termination instituted under
the Real Estate Appraiser Licensing Act shall be continued
under this Act.
Section 30-10. Appraisal Administration Fund.
(a) The Appraisal Administrative Fund, created under the
Real Estate License Act of 1983 and continued under Section
40 of the Real Estate Appraiser Licensing Act, is continued
under this Act. All fees collected under this Act shall be
deposited into the Appraisal Administration Fund, created in
the State Treasury under the Real Estate License Act of 1983.
(b) Appropriations to OBRE from the Appraisal
Administration Fund for the purpose of administering the Real
Estate Appraiser Licensing Act may be used by OBRE for the
purpose of administering and enforcing the provisions of this
Act.
ARTICLE 950. AMENDATORY PROVISIONS
Section 950-5. The Regulatory Sunset Act is amended by
changing Section 4.18 and adding Section 4.22 as follows:
(5 ILCS 80/4.18)
Sec. 4.18. Acts repealed January 1, 2008. The following
Acts are repealed on January 1, 2008:
The Acupuncture Practice Act.
The Clinical Social Work and Social Work Practice Act.
The Home Medical Equipment and Services Provider License
Act.
The Nursing and Advanced Practice Nursing Act.
The Illinois Petroleum Education and Marketing Act.
The Illinois Speech-Language Pathology and Audiology
Practice Act.
The Marriage and Family Therapy Licensing Act.
The Nursing Home Administrators Licensing and
Disciplinary Act.
The Pharmacy Practice Act of 1987.
The Physician Assistant Practice Act of 1987.
The Podiatric Medical Practice Act of 1987.
The Real Estate Appraiser Licensing Act.
(Source: P.A. 90-61, eff. 12-30-97; 90-69, eff. 7-8-97;
90-76, eff. 7-8-97; 90-150, eff. 12-30-97; 90-248, eff.
1-1-98; 90-532, eff. 11-14-97; 90-571, eff. 7-1-98;
incorporates 90-614, eff. 7-10-98; 90-655, eff 7-30-98;
91-357, eff. 7-29-99.)
(5 ILCS 80/4.22 new)
Sec. 4.22. Act repealed on January 1, 2012. The
following Act is repealed on January 1, 2012:
The Real Estate Appraisers Licensing Act of 2002.
(225 ILCS 457/Act rep.)
Section 950-15. The Real Estate Appraiser Licensing Act
is repealed on July 1, 2002.
ARTICLE 999. EFFECTIVE DATE
Section 999-99. Effective date. This Act takes effect
July 1, 2002.
Passed in the General Assembly May 03, 2001.
Approved July 27, 2001.
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