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92nd General Assembly

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Public Act 92-0239

HB1805 Enrolled                                LRB9205853LBmg

    AN ACT in relation to home inspectors.

    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
Home Inspector License Act.

    Section 1-5.  Legislative  intent.   The  intent  of  the
General  Assembly  in  enacting  this  Act is to evaluate the
competency of persons, including any entity, engaged  in  the
home  inspection  business  and to regulate and license those
persons engaged in this business for the  protection  of  the
public.

    Section  1-10.  Definitions.  As used in this Act, unless
the context otherwise requires:
    "Applicant" means a person who  applies  to  OBRE  for  a
license under this Act.
    "Board" means the Home Inspector Advisory Board.
    "Client"  means  a  person who engages or seeks to engage
the  services  of  a  home  inspector   for   an   inspection
assignment.
    "Commissioner"  means  the  Commissioner of the Office of
Banks and Real Estate or his or her designee.
    "Home inspection" means the examination and evaluation of
the exterior and  interior  components  of  residential  real
property,  which  includes the inspection of any 2 or more of
the following components  of  residential  real  property  in
connection  with  or  to facilitate the sale, lease, or other
conveyance  of,  or  the  proposed  sale,  lease   or   other
conveyance of, residential real property:
         (1)   heating,  ventilation,  and  air  conditioning
    system;
         (2)  plumbing system;
         (3)  electrical system;
         (4)  structural composition;
         (5)  foundation;
         (6)  roof;
         (7)  masonry structure; or
         (8)  any other residential real  property  component
    as established by rule.
    "Home  inspector" means a person who, for another and for
compensation  either  direct  or  indirect,   performs   home
inspections.
    "Home  inspection  report" or "inspection report" means a
written evaluation prepared and issued by  a  home  inspector
upon  completion  of  a  home  inspection,  which  meets  the
standards of practice as established by OBRE.
    "Inspection  assignment"  means an engagement for which a
home inspector is employed or  retained  to  conduct  a  home
inspection and prepare a home inspection report.
    "OBRE" means the Office of Banks and Real Estate.
    "Person"   means   individuals,  entities,  corporations,
limited liability  companies,  registered  limited  liability
partnerships,  and  partnerships, foreign or domestic, except
that when the context otherwise requires, the term may  refer
to a single individual or other described entity.
    "Residential  real  property" means real property that is
used or intended to be used as a residence  by  one  or  more
individuals.
    "Standards  of  practice"  means recognized standards and
codes to be used in a home inspection, as determined by  OBRE
and established by rule.

              ARTICLE 5.  LICENSING PROVISIONS
    Section   5-5.  Necessity   of  license;  use  of  title;
exemptions.
    (a)  Beginning January 1, 2003, it is  unlawful  for  any
person,  including  any  entity, to act or assume to act as a
home inspector, to engage in the business of home inspection,
to develop a home inspection report, to practice  as  a  home
inspector,  or  to  advertise  or  hold  himself, herself, or
itself out to be a home inspector without  a  home  inspector
license  issued  under  this Act.  A person who violates this
subsection is guilty of a Class A misdemeanor.
    (b)  Beginning January 1, 2003, it is  unlawful  for  any
person,  other than a person who holds a valid home inspector
license issued pursuant to this Act, to use the  title  "home
inspector"  or  any other title, designation, or abbreviation
likely to create the impression that the person  is  licensed
as  a  home  inspector  pursuant  to  this Act.  A person who
violates this subsection is guilty of a Class A misdemeanor.
    (c)  The licensing requirements of this  Article  do  not
apply to:
         (1)  any   person   who   is   employed  as  a  code
    enforcement official by the State of Illinois or any unit
    of local government, while acting  within  the  scope  of
    that government employment;
         (2)  any  person  licensed  by the State of Illinois
    while acting within the scope of his or her license; or
         (3)  any person engaged by the owner  or  lessor  of
    residential  real property for the purpose of preparing a
    bid or estimate as to the work  necessary  or  the  costs
    associated   with   performing  home  construction,  home
    remodeling, or home repair work on the  residential  real
    property,  provided  such person does not hold himself or
    herself out, or advertise himself or  herself,  as  being
    engaged in business as a home inspector.
    Section  5-10.  Application  for  Home Inspector license.
Every natural person who desires to obtain a  home  inspector
license shall:
         (1)  apply   to  OBRE  on  forms  provided  by  OBRE
    accompanied by the required fee;
         (2)  be at least 21 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 by the Illinois
    State Board of Education;
         (4)  personally   take   and   pass  an  examination
    authorized by OBRE; 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 home inspection, as established by rule.

    Section 5-12.  Application for  home  inspector  license;
entity.   Every  entity  that  is  not  a natural person that
desires to obtain a home inspector  license  shall  apply  to
OBRE  on  forms  provided  by  OBRE  and  accompanied  by the
required fee.

    Section 5-15.  Practice prior to this Act.  A person  who
has  actively  and  lawfully practiced as a home inspector in
the State of Illinois prior to the effective date of this Act
may take  the  examination  required  by  subsection  (4)  of
Section   5-10  without  having  successfully  completed  the
classroom hours required  under  subsection  (5)  of  Section
5-10, provided that he or she:
         (1)  is a resident of the State of Illinois;
         (2)  makes  application to OBRE on forms provided by
    OBRE within 6 months after the  effective  date  of  this
    Act;
         (3)  verifies that he or she has practiced as a home
    inspector  for  a period of at least 2 years prior to the
    effective date of this Act; and
         (4)  verifies that he or she has conducted a minimum
    of  200  home  inspections  that   meet   the   standards
    established  by  rule  within  the  2  years prior to the
    effective date of this Act.

    Section 5-16.  Renewal of license.
    (a)  The expiration date and renewal period  for  a  home
inspector license issued under this Act shall be set by rule.
Except  as  otherwise  provided in subsections (b) and (c) 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 given by education providers licensed by
    OBRE, as established by rule.
    (b)  A home inspector 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 subparagraphs (1), (2), and (3) of subsection
(a) of this Section and paying any late penalties established
by rule.
    (c)  Notwithstanding  subsection  (b),  a  home inspector
whose license under  this  Act  has  expired  may  renew  the
license  without  paying  any  lapsed  renewal  fees  or late
penalties if (i) the license expired while the home inspector
was on active duty with the  United  States  Armed  Services,
(ii) application for renewal is made within 2 years following
the termination of the military service or related education,
training, or employment, and (iii) the applicant furnishes to
OBRE an affidavit that he or she was so engaged.
    (d)  OBRE shall provide reasonable care and due diligence
to  ensure  that  each  licensee under this Act is provided a
renewal application at least 90 days prior to the  expiration
date,  but it is the responsibility of each licensee to renew
his or her license prior to its expiration date.

    Section 5-17.  Renewal of home inspector license; entity.
    (a)  The expiration date and renewal period  for  a  home
inspector  license for an entity that is not a natural person
shall be set by rule.  The holder of a license may renew  the
license  within  90  days  preceding  the  expiration date by
completing and submitting to OBRE a renewal application  form
as provided by OBRE and paying the required fees.
    (b)  An entity that is not a natural person 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 subsection (a) of this Section and paying
any late penalties established by rule.

    Section 5-20.  Reciprocity; consent to jurisdiction.
    (a)  A nonresident  who  holds  a  valid  home  inspector
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  applicant's  licensing
    authority;
         (3)  the  applicant   completes   and   submits   an
    application provided by OBRE; and
         (4)  the applicant pays all applicable fees required
    under this Act.
    (b)  A  nonresident  applicant  shall file an irrevocable
consent form  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 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 is directed.

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

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

    Section 5-45.  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.  Standards  of  practice.    All   persons
licensed  under  this  Act  must  comply  with  standards  of
professional  home inspection adopted by OBRE and established
by rule.  OBRE shall consider nationally recognized standards
and codes prior to adopting the rules for  the  standards  of
practice.

    Section  10-10.  Retention of records.  A person licensed
under this Act shall retain the original or a true and  exact
copy of all written contracts engaging his or her services as
a  home  inspector and all home inspection reports, including
any supporting data  used  to  develop  the  home  inspection
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.

            ARTICLE 15.  DISCIPLINARY PROVISIONS

    Section  15-5.  Unlicensed   practice;   civil   penalty;
injunctive relief.
    (a)  Any  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 or the rules adopted under this
Act.
    (c)  A civil penalty shall be paid within 60  days  after
the  effective  date of the order imposing the civil penalty.
The OBRE may petition the circuit court  for  a  judgment  to
enforce  the  collection of the penalty.  Any civil penalties
collected under this Act shall be made payable to the  Office
of  Banks  and  Real  Estate  and  deposited  into  the  Home
Inspector  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 the
appropriate State's Attorney.
    (d)  Practicing as a home  inspector  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 the name of the People of the
State of Illinois 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 home inspections
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.  A copy of the verified complaint shall be served
upon the defendant and the proceeding shall be  conducted  as
in  other civil cases except as modified by this Section.  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, or 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 home
inspection practice 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,   making    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 a home inspector established by this Act.
         (3)  Paying money, other than for the fees  provided
    for  by this Act, or anything of value to a member of the
    Board or an employee of the  Office  of  Banks  and  Real
    Estate to procure licensure under this Act.
         (4)  Being  convicted  of  a  felony in any state or
    federal court; of any  crime,  an  essential  element  of
    which  is  dishonesty,  fraud, theft, or embezzlement; of
    obtaining money, property, or credit by false  pretenses;
    or  of  any other crime that is reasonably related to the
    practice of home inspection.
         (5)  Committing  an   act  or   omission   involving
    dishonesty,  fraud,  or misrepresentation with the intent
    to substantially benefit the licensee or  another  person
    or  with  the  intent  to  substantially  injure  another
    person.
         (6)  Violating  a  provision  or  standard  for  the
    development  or  communication  of  home  inspections  as
    provided in Section 10-5 of this Act or as defined in the
    rules.
         (7)  Failing  or  refusing  without  good  cause  to
    exercise   reasonable   diligence   in  the  development,
    reporting, or communication of a home inspection  report,
    as defined by this Act or the rules.
         (8)  Violating a provision of this Act or the rules.
         (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  inspection  assignment when the
    employment itself is contingent upon the  home  inspector
    reporting  a  predetermined  analysis or opinion, or when
    the fee to be  paid  is  contingent  upon  the  analysis,
    opinion,  or  conclusion reached or upon the consequences
    resulting from the home inspection assignment.
         (12)  Developing   home   inspection   opinions   or
    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 home inspection.
         (13)  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  home  inspector  shall  be  afforded  an
    opportunity   to   present   mitigating  and  extenuating
    circumstances, but may not collaterally attack the  civil
    adjudication.
         (14)  Being adjudicated liable 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 home inspection organization of which the
    licensee is not a member.
         (16)  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.
         (17)  Failing to include within the home  inspection
    report  the  home inspector's license number and the date
    of  expiration  of  the  license.   All  home  inspectors
    providing significant contribution to the development and
    reporting of a home inspection must be disclosed  in  the
    home inspection report. It is a violation of this Act for
    a home inspector to sign a home inspection report knowing
    that a person providing a significant contribution to the
    report  has  not  been  disclosed  in the home inspection
    report.
         (18)  Advising a client as  to  whether  the  client
    should  or  should  not engage in a transaction regarding
    the residential real property that is the subject of  the
    home inspection.
         (19)  Performing  a home inspection in a manner that
    damages or alters the residential real property  that  is
    the subject of the home inspection without the consent of
    the owner.
         (20)  Performing  a  home  inspection  when the home
    inspector is providing or may also provide other services
    in connection  with  the  residential  real  property  or
    transaction,  or  has an interest in the residential real
    property, without providing prior written notice  of  the
    potential  or  actual  conflict  and  obtaining the prior
    consent of the client as provided by rule.
    (b)  The Office of Banks and  Real  Estate  may  suspend,
revoke,  or  refuse to issue or renew an education provider's
license, may reprimand,  place  on  probation,  or  otherwise
discipline an education provider licensee, and may suspend or
revoke  the  course  approval  of  any  course  offered by an
education provider, for any of the following:
         (1)  Procuring or attempting to procure licensure by
    knowingly making  a  false  statement,  submitting  false
    information,    making    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 education 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 as 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.  The complainant
shall be notified that his or her complaint has been resolved
by a Consent to Administrative Supervision order.

    Section  15-15.  Investigation; notice; hearing.
    (a)  Upon the request 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 so accused.
    (b)  Formal  disciplinary proceedings shall commence upon
the issuance of a written  complaint  detailing  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 that he
or she has a 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;  and that the
license may be suspended, revoked, or placed on  probationary
status and 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 receiving 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  a  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 arguments as may be pertinent to the charges or
to any 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 shall order and pay
for 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
their  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
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
paragraph.  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 of court.
    (f)  Any  license  that  is  suspended  indefinitely   or
revoked  may not be restored for a minimum period of 2 years.
After the 2 year period, OBRE may restore the license without
examination, upon the written recommendation of the Board.

    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 Procedure Act is hereby expressly
adopted  and incorporated herein.  In the event of a conflict
between this Act and the Administrative Procedure  Act,  this
Act shall control.

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

    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 its members 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.  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    fee;
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  fee  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 fee 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 a home inspector, 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 provider.
    (a)  Beginning  January 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  school  administrator,   who   is
    responsible   for   the  administration  of  the  school,
    courses, and the actions of the instructors; and
         (6)  any other requirements 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  that are approved by OBRE and offered
by licensed education providers 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.
    (c)  For  each  course  approved,  OBRE  shall  issue   a
certificate  of  course  approval  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.  Home   Inspector   Administration  Fund;
surcharge.
    (a)  The Home Inspector 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 Home Inspector  Administration  Fund.  All  earnings
attributable  to  investment  of  funds in the Home Inspector
Administration Fund shall be credited to the  Home  Inspector
Administration  Fund. Subject to appropriation, the moneys in
the Home Inspector Administration Fund shall be  appropriated
to  OBRE  for  the expenses incurred by OBRE and the Board in
the administration of this Act.
    (b)  The State  Comptroller  and  State  Treasurer  shall
transfer $150,000 from the Real Estate License Administration
Fund  to  the  Home  Inspector Administration Fund on July 1,
2002.
    The State Treasurer shall transfer $50,000 from the  Home
Inspector  Administration  Fund  to  the  Real Estate License
Administration Fund on July 1, 2003, July 1, 2004,  and  July
1, 2005; except that if there is a sufficient fund balance in
the  Home Inspector Administration Fund, the Commissioner may
recommend  the  acceleration  of  any  of   these   repayment
transfers  to  the State Comptroller and State Treasurer, who
may,  in  their  discretion,  accelerate  the  transfers   in
accordance with the Commissioner's recommendation.
    (c)  Until  a  total  of $150,000 has been transferred to
the Real Estate License Administration  Fund  from  the  Home
Inspector  Administration  Fund  under  subsection  (b), each
initial applicant for a license under this Act shall  pay  to
OBRE  a  surcharge  of  $150  in addition to the license fees
otherwise required under this Act.
    (d)  Upon  the  completion  of  any  audit  of  OBRE,  as
prescribed by the Illinois State Auditing Act, that  includes
an  audit  of  the  Home  Inspector Administration Fund, OBRE
shall make  the  audit  report  open  to  inspection  by  any
interested person.
    Section 25-10.  Home Inspector Advisory Board.
    (a)  There  is hereby created the Home Inspector Advisory
Board.  The Board shall  be  composed  of  7  voting  members
appointed by the Commissioner, plus the liaison under Section
25-15,  who shall serve ex officio and without vote.  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)  Five  appointed  members  shall   be   actively
    engaged and currently licensed as home inspectors, except
    that  the  initial  appointees  may  be persons without a
    license who have been actively engaged as home inspectors
    for a period of 5 years immediately before the  effective
    date  of this Act.  Failure of an initial appointee under
    this item (3) to obtain a  license  by  January  1,  2003
    shall constitute resignation from the Board.
         (4)  One appointed member shall hold a valid license
    as  a  real  estate  broker  and shall have been actively
    engaged as a real estate broker for a period of not  less
    than 5 years.
         (5)  One   appointed   member  shall  represent  the
    interests of the general public.   This  member  and  the
    member's spouse shall not be licensed under this Act, nor
    be employed by nor have any interest in a home inspection
    business or a real estate brokerage business.
    In  making  appointments  to  the Board, the Commissioner
shall give due consideration to  recommendations  by  members
and  organizations  representing the home inspection and real
estate industries.
    (b)  The term for members of the Board shall be 4  years,
except   for   the   initial   appointees.   Of  the  initial
appointees, 4 members shall be  appointed  for  terms  ending
January  1,  2007  and 3 members shall be appointed for terms
ending January 1, 2006.  No member shall serve more  than  10
years in a lifetime.
    (c)  The  Commissioner  may  terminate the appointment of
any  member  for  cause  that,  in   the   opinion   of   the
Commissioner, 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 voting 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 or 3 members of the Board upon 10
days' written notice.
    (g)  The  liaison  appointed pursuant to Section 25-15 of
this Act shall serve,  ex  officio,  as  Chairperson  of  the
Board, without vote.
    (h)  The  Board shall advise OBRE on matters of licensing
and education and shall make recommendations to OBRE on those
matters.   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 about the standards of  professional
conduct of licensees.
    (j)  The   Board   may   make   recommendations  to  OBRE
concerning the consistency of the rules with  the  provisions
of  this  Act  and  the administration and enforcement of the
rules.   OBRE   shall   give   due   consideration   to   the
recommendations of the Board prior to promulgating rules.
    (k)  The  Board shall make recommendations to OBRE on the
approval of courses submitted to OBRE pursuant  to  this  Act
and   rules.   OBRE  shall  give  due  consideration  to  the
recommendations of the Board prior to approving courses.
    (l)  Each voting member of the Board shall receive a  per
diem   stipend   in   an  amount  to  be  determined  by  the
Commissioner.  Each voting 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.  Liaison; duties.  The Commissioner  shall
appoint an employee of OBRE to:
         (1)  serve as a liaison to and as Chairperson of the
    Home Inspector Advisory Board, without vote;
         (2)  be   the   direct  liaison  between  OBRE,  the
    profession,  home  inspectors,   and   related   industry
    organizations and associations; and
         (3)  prepare   and   circulate   to  licensees  such
    educational and  informational  material  as  OBRE  deems
    necessary   for   providing  guidance  or  assistance  to
    licensees.

    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 home inspectors.

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

             ARTICLE 950.  AMENDATORY PROVISIONS

    Section  950-5.  The  Regulatory Sunset Act is amended by
adding Section 4.22 as follows:

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

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

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

                ARTICLE 999.  EFFECTIVE DATE

    Section 999-99.  Effective date.  This Act  takes  effect
upon becoming law.
    Passed in the General Assembly May 10, 2001.
    Approved August 03, 2001.

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