Illinois General Assembly - Full Text of HB3138
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Full Text of HB3138  100th General Assembly

HB3138 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3138

 

Introduced , by Rep. Mark Batinick

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 454/1-10
225 ILCS 454/5-10
225 ILCS 454/5-70
225 ILCS 454/5-80
225 ILCS 454/Art. 30 heading
225 ILCS 454/30-5
225 ILCS 454/30-10
225 ILCS 454/30-15
225 ILCS 454/30-20
225 ILCS 454/30-25

    Amends the Real Estate License Act of 2000. Creates an education provider license to provides courses in pre-license, post-license, and continuing education subjects related to real estate transactions. Provides the requirements for an education provider license. Makes conforming changes throughout the Act. Creates an education provider instructor license and makes conforming changes throughout the Act. Effective immediately.


LRB100 08913 SMS 19056 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3138LRB100 08913 SMS 19056 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Real Estate License Act of 2000 is amended
5by changing Sections 1-10, 5-10, 5-70, 5-80, 30-5, 30-10,
630-15, 30-20, and 30-25 and the heading of Article 30 as
7follows:
 
8    (225 ILCS 454/1-10)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 1-10. Definitions. In this Act, unless the context
11otherwise requires:
12    "Act" means the Real Estate License Act of 2000.
13    "Address of record" means the designated address recorded
14by the Department in the applicant's or licensee's application
15file or license file as maintained by the Department's
16licensure maintenance unit. It is the duty of the applicant or
17licensee to inform the Department of any change of address, and
18those changes must be made either through the Department's
19website or by contacting the Department.
20    "Advisory Council" means the Real Estate Education
21Advisory Council created under Section 30-10 of this Act.
22    "Agency" means a relationship in which a broker or
23licensee, whether directly or through an affiliated licensee,

 

 

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1represents a consumer by the consumer's consent, whether
2express or implied, in a real property transaction.
3    "Applicant" means any person, as defined in this Section,
4who applies to the Department for a valid license as a managing
5broker, broker, or leasing agent.
6    "Blind advertisement" means any real estate advertisement
7that does not include the sponsoring broker's business name and
8that is used by any licensee regarding the sale or lease of
9real estate, including his or her own, licensed activities, or
10the hiring of any licensee under this Act. The broker's
11business name in the case of a franchise shall include the
12franchise affiliation as well as the name of the individual
13firm.
14    "Board" means the Real Estate Administration and
15Disciplinary Board of the Department as created by Section
1625-10 of this Act.
17    "Branch office" means a sponsoring broker's office other
18than the sponsoring broker's principal office.
19    "Broker" means an individual, partnership, limited
20liability company, corporation, or registered limited
21liability partnership other than a leasing agent who, whether
22in person or through any media or technology, for another and
23for compensation, or with the intention or expectation of
24receiving compensation, either directly or indirectly:
25        (1) Sells, exchanges, purchases, rents, or leases real
26    estate.

 

 

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1        (2) Offers to sell, exchange, purchase, rent, or lease
2    real estate.
3        (3) Negotiates, offers, attempts, or agrees to
4    negotiate the sale, exchange, purchase, rental, or leasing
5    of real estate.
6        (4) Lists, offers, attempts, or agrees to list real
7    estate for sale, rent, lease, or exchange.
8        (5) Buys, sells, offers to buy or sell, or otherwise
9    deals in options on real estate or improvements thereon.
10        (6) Supervises the collection, offer, attempt, or
11    agreement to collect rent for the use of real estate.
12        (7) Advertises or represents himself or herself as
13    being engaged in the business of buying, selling,
14    exchanging, renting, or leasing real estate.
15        (8) Assists or directs in procuring or referring of
16    leads or prospects, intended to result in the sale,
17    exchange, lease, or rental of real estate.
18        (9) Assists or directs in the negotiation of any
19    transaction intended to result in the sale, exchange,
20    lease, or rental of real estate.
21        (10) Opens real estate to the public for marketing
22    purposes.
23        (11) Sells, rents, leases, or offers for sale or lease
24    real estate at auction.
25        (12) Prepares or provides a broker price opinion or
26    comparative market analysis as those terms are defined in

 

 

HB3138- 4 -LRB100 08913 SMS 19056 b

1    this Act, pursuant to the provisions of Section 10-45 of
2    this Act.
3    "Brokerage agreement" means a written or oral agreement
4between a sponsoring broker and a consumer for licensed
5activities to be provided to a consumer in return for
6compensation or the right to receive compensation from another.
7Brokerage agreements may constitute either a bilateral or a
8unilateral agreement between the broker and the broker's client
9depending upon the content of the brokerage agreement. All
10exclusive brokerage agreements shall be in writing.
11    "Broker price opinion" means an estimate or analysis of the
12probable selling price of a particular interest in real estate,
13which may provide a varying level of detail about the
14property's condition, market, and neighborhood and information
15on comparable sales. The activities of a real estate broker or
16managing broker engaging in the ordinary course of business as
17a broker, as defined in this Section, shall not be considered a
18broker price opinion if no compensation is paid to the broker
19or managing broker, other than compensation based upon the sale
20or rental of real estate.
21    "Client" means a person who is being represented by a
22licensee.
23    "Comparative market analysis" is an analysis or opinion
24regarding pricing, marketing, or financial aspects relating to
25a specified interest or interests in real estate that may be
26based upon an analysis of comparative market data, the

 

 

HB3138- 5 -LRB100 08913 SMS 19056 b

1expertise of the real estate broker or managing broker, and
2such other factors as the broker or managing broker may deem
3appropriate in developing or preparing such analysis or
4opinion. The activities of a real estate broker or managing
5broker engaging in the ordinary course of business as a broker,
6as defined in this Section, shall not be considered a
7comparative market analysis if no compensation is paid to the
8broker or managing broker, other than compensation based upon
9the sale or rental of real estate.
10    "Compensation" means the valuable consideration given by
11one person or entity to another person or entity in exchange
12for the performance of some activity or service. Compensation
13shall include the transfer of valuable consideration,
14including without limitation the following:
15        (1) commissions;
16        (2) referral fees;
17        (3) bonuses;
18        (4) prizes;
19        (5) merchandise;
20        (6) finder fees;
21        (7) performance of services;
22        (8) coupons or gift certificates;
23        (9) discounts;
24        (10) rebates;
25        (11) a chance to win a raffle, drawing, lottery, or
26    similar game of chance not prohibited by any other law or

 

 

HB3138- 6 -LRB100 08913 SMS 19056 b

1    statute;
2        (12) retainer fee; or
3        (13) salary.
4    "Confidential information" means information obtained by a
5licensee from a client during the term of a brokerage agreement
6that (i) was made confidential by the written request or
7written instruction of the client, (ii) deals with the
8negotiating position of the client, or (iii) is information the
9disclosure of which could materially harm the negotiating
10position of the client, unless at any time:
11        (1) the client permits the disclosure of information
12    given by that client by word or conduct;
13        (2) the disclosure is required by law; or
14        (3) the information becomes public from a source other
15    than the licensee.
16    "Confidential information" shall not be considered to
17include material information about the physical condition of
18the property.
19    "Consumer" means a person or entity seeking or receiving
20licensed activities.
21    "Continuing education school" means any person licensed by
22the Department as a school for continuing education in
23accordance with Section 30-15 of this Act.
24    "Coordinator" means the Coordinator of Real Estate created
25in Section 25-15 of this Act.
26    "Credit hour" means 50 minutes of classroom instruction in

 

 

HB3138- 7 -LRB100 08913 SMS 19056 b

1course work that meets the requirements set forth in rules
2adopted by the Department.
3    "Customer" means a consumer who is not being represented by
4the licensee but for whom the licensee is performing
5ministerial acts.
6    "Department" means the Department of Financial and
7Professional Regulation.
8    "Designated agency" means a contractual relationship
9between a sponsoring broker and a client under Section 15-50 of
10this Act in which one or more licensees associated with or
11employed by the broker are designated as agent of the client.
12    "Designated agent" means a sponsored licensee named by a
13sponsoring broker as the legal agent of a client, as provided
14for in Section 15-50 of this Act.
15    "Dual agency" means an agency relationship in which a
16licensee is representing both buyer and seller or both landlord
17and tenant in the same transaction. When the agency
18relationship is a designated agency, the question of whether
19there is a dual agency shall be determined by the agency
20relationships of the designated agent of the parties and not of
21the sponsoring broker.
22    "Education provider" means a school licensed by the
23Department to offer courses in pre-license, post-license, or
24continuing education subjects related to real estate
25transactions, including the subjects upon which an applicant is
26examined in determining fitness to receive a license.

 

 

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1    "Employee" or other derivative of the word "employee", when
2used to refer to, describe, or delineate the relationship
3between a sponsoring broker and a managing broker, broker, or a
4leasing agent, shall be construed to include an independent
5contractor relationship, provided that a written agreement
6exists that clearly establishes and states the relationship.
7All responsibilities of a broker shall remain.
8    "Escrow moneys" means all moneys, promissory notes or any
9other type or manner of legal tender or financial consideration
10deposited with any person for the benefit of the parties to the
11transaction. A transaction exists once an agreement has been
12reached and an accepted real estate contract signed or lease
13agreed to by the parties. Escrow moneys includes without
14limitation earnest moneys and security deposits, except those
15security deposits in which the person holding the security
16deposit is also the sole owner of the property being leased and
17for which the security deposit is being held.
18    "Electronic means of proctoring" means a methodology
19providing assurance that the person taking a test and
20completing the answers to questions is the person seeking
21licensure or credit for continuing education and is doing so
22without the aid of a third party or other device.
23    "Exclusive brokerage agreement" means a written brokerage
24agreement that provides that the sponsoring broker has the sole
25right, through one or more sponsored licensees, to act as the
26exclusive designated agent or representative of the client and

 

 

HB3138- 9 -LRB100 08913 SMS 19056 b

1that meets the requirements of Section 15-75 of this Act.
2    "Inoperative" means a status of licensure where the
3licensee holds a current license under this Act, but the
4licensee is prohibited from engaging in licensed activities
5because the licensee is unsponsored or the license of the
6sponsoring broker with whom the licensee is associated or by
7whom he or she is employed is currently expired, revoked,
8suspended, or otherwise rendered invalid under this Act.
9    "Interactive delivery method" means delivery of a course by
10an instructor through a medium allowing for 2-way communication
11between the instructor and a student in which either can
12initiate or respond to questions.
13    "Leads" means the name or names of a potential buyer,
14seller, lessor, lessee, or client of a licensee.
15    "Leasing Agent" means a person who is employed by a broker
16to engage in licensed activities limited to leasing residential
17real estate who has obtained a license as provided for in
18Section 5-5 of this Act.
19    "License" means the document issued by the Department
20certifying that the person named thereon has fulfilled all
21requirements prerequisite to licensure under this Act.
22    "Licensed activities" means those activities listed in the
23definition of "broker" under this Section.
24    "Licensee" means any person, as defined in this Section,
25who holds a valid unexpired license as a managing broker,
26broker, or leasing agent.

 

 

HB3138- 10 -LRB100 08913 SMS 19056 b

1    "Listing presentation" means a communication between a
2managing broker or broker and a consumer in which the licensee
3is attempting to secure a brokerage agreement with the consumer
4to market the consumer's real estate for sale or lease.
5    "Managing broker" means a broker who has supervisory
6responsibilities for licensees in one or, in the case of a
7multi-office company, more than one office and who has been
8appointed as such by the sponsoring broker.
9    "Medium of advertising" means any method of communication
10intended to influence the general public to use or purchase a
11particular good or service or real estate.
12    "Ministerial acts" means those acts that a licensee may
13perform for a consumer that are informative or clerical in
14nature and do not rise to the level of active representation on
15behalf of a consumer. Examples of these acts include without
16limitation (i) responding to phone inquiries by consumers as to
17the availability and pricing of brokerage services, (ii)
18responding to phone inquiries from a consumer concerning the
19price or location of property, (iii) attending an open house
20and responding to questions about the property from a consumer,
21(iv) setting an appointment to view property, (v) responding to
22questions of consumers walking into a licensee's office
23concerning brokerage services offered or particular
24properties, (vi) accompanying an appraiser, inspector,
25contractor, or similar third party on a visit to a property,
26(vii) describing a property or the property's condition in

 

 

HB3138- 11 -LRB100 08913 SMS 19056 b

1response to a consumer's inquiry, (viii) completing business or
2factual information for a consumer on an offer or contract to
3purchase on behalf of a client, (ix) showing a client through a
4property being sold by an owner on his or her own behalf, or
5(x) referral to another broker or service provider.
6    "Office" means a broker's place of business where the
7general public is invited to transact business and where
8records may be maintained and licenses displayed, whether or
9not it is the broker's principal place of business.
10    "Person" means and includes individuals, entities,
11corporations, limited liability companies, registered limited
12liability partnerships, and partnerships, foreign or domestic,
13except that when the context otherwise requires, the term may
14refer to a single individual or other described entity.
15    "Personal assistant" means a licensed or unlicensed person
16who has been hired for the purpose of aiding or assisting a
17sponsored licensee in the performance of the sponsored
18licensee's job.
19    "Pocket card" means the card issued by the Department to
20signify that the person named on the card is currently licensed
21under this Act.
22    "Pre-license school" means a school licensed by the
23Department offering courses in subjects related to real estate
24transactions, including the subjects upon which an applicant is
25examined in determining fitness to receive a license.
26    "Pre-renewal period" means the period between the date of

 

 

HB3138- 12 -LRB100 08913 SMS 19056 b

1issue of a currently valid license and the license's expiration
2date.
3    "Proctor" means any person, including, but not limited to,
4an instructor, who has a written agreement to administer
5examinations fairly and impartially with a licensed education
6provider pre-license school or a licensed continuing education
7school.
8    "Real estate" means and includes leaseholds as well as any
9other interest or estate in land, whether corporeal,
10incorporeal, freehold, or non-freehold, including timeshare
11interests, and whether the real estate is situated in this
12State or elsewhere.
13    "Regular employee" means a person working an average of 20
14hours per week for a person or entity who would be considered
15as an employee under the Internal Revenue Service eleven main
16tests in three categories being behavioral control, financial
17control and the type of relationship of the parties, formerly
18the twenty factor test.
19    "Secretary" means the Secretary of the Department of
20Financial and Professional Regulation, or a person authorized
21by the Secretary to act in the Secretary's stead.
22    "Sponsoring broker" means the broker who has issued a
23sponsor card to a licensed managing broker, broker, or a
24leasing agent.
25    "Sponsor card" means the temporary permit issued by the
26sponsoring broker certifying that the managing broker, broker,

 

 

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1or leasing agent named thereon is employed by or associated by
2written agreement with the sponsoring broker, as provided for
3in Section 5-40 of this Act.
4(Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15;
599-227, eff. 8-3-15.)
 
6    (225 ILCS 454/5-10)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 5-10. Requirements for license as leasing agent.
9    (a) Every applicant for licensure as a leasing agent must
10meet the following qualifications:
11        (1) be at least 18 years of age;
12        (2) be of good moral character;
13        (3) successfully complete a 4-year course of study in a
14    high school or secondary school or an equivalent course of
15    study approved by the Illinois State Board of Education;
16        (4) personally take and pass a written examination
17    authorized by the Department sufficient to demonstrate the
18    applicant's knowledge of the provisions of this Act
19    relating to leasing agents and the applicant's competence
20    to engage in the activities of a licensed leasing agent;
21        (5) provide satisfactory evidence of having completed
22    15 hours of instruction in an approved course of study
23    relating to the leasing of residential real property. The
24    course of study shall, among other topics, cover the
25    provisions of this Act applicable to leasing agents; fair

 

 

HB3138- 14 -LRB100 08913 SMS 19056 b

1    housing issues relating to residential leasing;
2    advertising and marketing issues; leases, applications,
3    and credit reports; owner-tenant relationships and
4    owner-tenant laws; the handling of funds; and
5    environmental issues relating to residential real
6    property;
7        (6) complete any other requirements as set forth by
8    rule; and
9        (7) present a valid application for issuance of an
10    initial license accompanied by a sponsor card and the fees
11    specified by rule.
12    (b) No applicant shall engage in any of the activities
13covered by this Act until a valid sponsor card has been issued
14to such applicant. The sponsor card shall be valid for a
15maximum period of 45 days after the date of issuance unless
16extended for good cause as provided by rule.
17    (c) Successfully completed course work, completed pursuant
18to the requirements of this Section, may be applied to the
19course work requirements to obtain a managing broker's or
20broker's license as provided by rule. The Advisory Council may
21recommend through the Board to the Department and the
22Department may adopt requirements for approved courses, course
23content, and the approval of courses, instructors, and
24education providers schools, as well as education provider
25school and instructor fees. The Department may establish
26continuing education requirements for licensed leasing agents,

 

 

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1by rule, with the advice of the Advisory Council and Board.
2(Source: P.A. 99-227, eff. 8-3-15.)
 
3    (225 ILCS 454/5-70)
4    (Section scheduled to be repealed on January 1, 2020)
5    Sec. 5-70. Continuing education requirement; managing
6broker or broker.
7    (a) The requirements of this Section apply to all managing
8brokers and brokers.
9    (b) Except as otherwise provided in this Section, each
10person who applies for renewal of his or her license as a
11managing broker or broker must successfully complete 6 hours of
12real estate continuing education courses approved by the
13Advisory Council for each year of the pre-renewal period. In
14addition, beginning with the pre-renewal period for managing
15broker licensees that begins after the effective date of this
16Act, those licensees renewing or obtaining a managing broker's
17license must successfully complete a 12-hour broker management
18continuing education course approved by the Department each
19pre-renewal period. The broker management continuing education
20course must be completed in the classroom or by other
21interactive delivery method between the instructor and the
22students. Successful completion of the course shall include
23achieving a passing score as provided by rule on a test
24developed and administered in accordance with rules adopted by
25the Department. No license may be renewed except upon the

 

 

HB3138- 16 -LRB100 08913 SMS 19056 b

1successful completion of the required courses or their
2equivalent or upon a waiver of those requirements for good
3cause shown as determined by the Secretary with the
4recommendation of the Advisory Council. The requirements of
5this Article are applicable to all managing brokers and brokers
6except those managing brokers and brokers who, during the
7pre-renewal period:
8        (1) serve in the armed services of the United States;
9        (2) serve as an elected State or federal official;
10        (3) serve as a full-time employee of the Department; or
11        (4) are admitted to practice law pursuant to Illinois
12    Supreme Court rule.
13    (c) (Blank).
14    (d) A person receiving an initial license during the 90
15days before the renewal date shall not be required to complete
16the continuing education courses provided for in subsection (b)
17of this Section as a condition of initial license renewal.
18    (e) The continuing education requirement for brokers and
19managing brokers shall consist of a core curriculum and an
20elective curriculum, to be established by the Advisory Council.
21In meeting the continuing education requirements of this Act,
22at least 3 hours per year or their equivalent, 6 hours for each
23two-year pre-renewal period, shall be required to be completed
24in the core curriculum. In establishing the core curriculum,
25the Advisory Council shall consider subjects that will educate
26licensees on recent changes in applicable laws and new laws and

 

 

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1refresh the licensee on areas of the license law and the
2Department policy that the Advisory Council deems appropriate,
3and any other areas that the Advisory Council deems timely and
4applicable in order to prevent violations of this Act and to
5protect the public. In establishing the elective curriculum,
6the Advisory Council shall consider subjects that cover the
7various aspects of the practice of real estate that are covered
8under the scope of this Act. However, the elective curriculum
9shall not include any offerings referred to in Section 5-85 of
10this Act.
11    (f) The subject areas of continuing education courses
12approved by the Advisory Council may include without limitation
13the following:
14        (1) license law and escrow;
15        (2) antitrust;
16        (3) fair housing;
17        (4) agency;
18        (5) appraisal;
19        (6) property management;
20        (7) residential brokerage;
21        (8) farm property management;
22        (9) rights and duties of sellers, buyers, and brokers;
23        (10) commercial brokerage and leasing; and
24        (11) real estate financing.
25    (g) In lieu of credit for those courses listed in
26subsection (f) of this Section, credit may be earned for

 

 

HB3138- 18 -LRB100 08913 SMS 19056 b

1serving as a licensed instructor in an approved course of
2continuing education. The amount of credit earned for teaching
3a course shall be the amount of continuing education credit for
4which the course is approved for licensees taking the course.
5    (h) Credit hours may be earned for self-study programs
6approved by the Advisory Council.
7    (i) A managing broker or broker may earn credit for a
8specific continuing education course only once during the
9prerenewal period.
10    (j) No more than 6 hours of continuing education credit may
11be taken in one calendar day.
12    (k) To promote the offering of a uniform and consistent
13course content, the Department may provide for the development
14of a single broker management course to be offered by all
15continuing education providers who choose to offer the broker
16management continuing education course. The Department may
17contract for the development of the 12-hour broker management
18continuing education course with an outside vendor or
19consultant and, if the course is developed in this manner, the
20Department or the outside consultant shall license the use of
21that course to all approved continuing education providers who
22wish to provide the course.
23    (l) Except as specifically provided in this Act, continuing
24education credit hours may not be earned for completion of pre
25or post-license courses. The approved 30-hour post-license
26course for broker licensees shall satisfy the continuing

 

 

HB3138- 19 -LRB100 08913 SMS 19056 b

1education requirement for the pre-renewal period in which the
2course is taken. The approved 45-hour brokerage administration
3and management course shall satisfy the 12-hour broker
4management continuing education requirement for the
5pre-renewal period in which the course is taken.
6(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15;
799-728, eff. 1-1-17.)
 
8    (225 ILCS 454/5-80)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 5-80. Evidence of compliance with continuing
11education requirements.
12    (a) Each renewal applicant shall certify, on his or her
13renewal application, full compliance with continuing education
14requirements set forth in Section 5-70. The continuing
15education provider school shall retain and submit to the
16Department after the completion of each course evidence of
17those successfully completing the course as provided by rule.
18    (b) The Department may require additional evidence
19demonstrating compliance with the continuing education
20requirements. The renewal applicant shall retain and produce
21the evidence of compliance upon request of the Department.
22(Source: P.A. 96-856, eff. 12-31-09.)
 
23    (225 ILCS 454/Art. 30 heading)
24
ARTICLE 30. EDUCATION PROVIDERS SCHOOLS AND INSTRUCTORS

 

 

 

HB3138- 20 -LRB100 08913 SMS 19056 b

1    (225 ILCS 454/30-5)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 30-5. Licensing of education providers pre-license
4schools, school branches, and instructors.
5    (a) No person shall operate an education provider entity
6without possessing a valid and active license issued by the
7Department. Only education providers in possession of a valid
8education provider license may provide real estate
9pre-license, post-license, or continuing education courses
10that will satisfy the requirements of this Act. Every person
11that desires to obtain an education provider license shall make
12application to the Department in writing on forms prescribed by
13the Department and pay the fee prescribed by rule. In addition
14to any other information required to be contained in the
15application as prescribed by rule, every application for an
16original or renewed license shall include the applicant's
17Social Security number.
18    (b) The criteria for an education provider license shall
19include the following:
20        (1) A sound financial base for establishing,
21    promoting, and delivering the necessary courses. Budget
22    planning for the school's courses should be clearly
23    projected.
24        (2) A sufficient number of qualified, licensed
25    instructors as provided by rule.

 

 

HB3138- 21 -LRB100 08913 SMS 19056 b

1        (3) Adequate support personnel to assist with
2    administrative matters and technical assistance.
3        (4) Maintenance and availability of records of
4    participation for licensees.
5        (5) The ability to provide each participant who
6    successfully completes an approved program with a
7    certificate of completion signed by the administrator of
8    the licensed education provider on forms provided by the
9    Department.
10        (6) The education provider must have a written policy
11    dealing with procedures for the management of grievances
12    and fee refunds.
13        (7) The education provider shall maintain lesson plans
14    and examinations for each course.
15        (8) The education provider shall require a 70% passing
16    grade for successful completion of any continuing
17    education course.
18        (9) The education provider shall identify and use
19    instructors who will teach in a planned program. Suggested
20    criteria for instructor selections include:
21            (A) appropriate credentials;
22            (B) competence as a teacher;
23            (C) knowledge of content area; and
24            (D) qualification by experience.
25        (10) The education provider shall provide a proctor or
26    an electronic means of proctoring for each examination. The

 

 

HB3138- 22 -LRB100 08913 SMS 19056 b

1    education provider shall be responsible for the conduct of
2    the proctor. The duties and responsibilities of a proctor
3    shall be established by rule.
4        (11) The education provider must provide for closed
5    book examinations for each course unless the Advisory
6    Council excuses this requirement based on the complexity of
7    the course material.
8    (c) Advertising and promotion of education activities must
9be carried out in a responsible fashion, clearly showing the
10educational objectives of the activity, the nature of the
11audience that may benefit from the activity, the cost of the
12activity to the participant and the items covered by the cost,
13the amount of credit that can be earned, and the credentials of
14the faculty.
15    (d) The Department may or, upon request of the Advisory
16Council, shall, after notice, cause an education provider to
17attend an informal conference before the Advisory Council for
18failure to comply with any requirement for licensure or for
19failure to comply with any provision of this Act or the rules
20for the administration of this Act. The Advisory Council shall
21make a recommendation to the Board as a result of its findings
22at the conclusion of any such informal conference.
23    (e) All education providers shall maintain the minimum
24criteria and pay the required fee in order to retain their
25education provider license.
26    (f) The Department is authorized to adopt any

 

 

HB3138- 23 -LRB100 08913 SMS 19056 b

1administrative rule that may be necessary for the
2implementation and enforcement of this Section.
3    (a) No person shall operate a pre-license school or school
4branch without possessing a valid pre-license school or school
5branch license issued by the Department. No person shall act as
6a pre-license instructor at a pre-license school or school
7branch without possessing a valid pre-license instructor
8license issued by the Department. Every person who desires to
9obtain a pre-license school, school branch, or pre-license
10instructor license shall make application to the Department in
11writing in form and substance satisfactory to the Department
12and pay the required fees prescribed by rule. In addition to
13any other information required to be contained in the
14application, every application for an original license shall
15include the applicant's Social Security number, which shall be
16retained in the agency's records pertaining to the license. As
17soon as practical, the Department shall assign a customer's
18identification number to each applicant for a license.
19    Every application for a renewal or restored license shall
20require the applicant's customer identification number.
21    The Department shall issue a pre-license school, school
22branch, or pre-license instructor license to applicants who
23meet qualification criteria established by rule. The
24Department may refuse to issue, suspend, revoke, or otherwise
25discipline a pre-license school, school branch, or pre-license
26instructor license or may withdraw approval of a course offered

 

 

HB3138- 24 -LRB100 08913 SMS 19056 b

1by a pre-license school for good cause. Disciplinary
2proceedings shall be conducted by the Board in the same manner
3as other disciplinary proceedings under this Act.
4    (b) All pre-license instructors must teach at least one
5course within the period of licensure or take an instructor
6training program approved by the Department in lieu thereof. A
7pre-license instructor may teach at more than one licensed
8pre-license school.
9    (c) The term of license for pre-license schools, branches,
10and instructors shall be 2 years as established by rule.
11    (d) The Department or the Advisory Council may, after
12notice, cause a pre-license school to attend an informal
13conference before the Advisory Council for failure to comply
14with any requirement for licensure or for failure to comply
15with any provision of this Act or the rules for the
16administration of this Act. The Advisory Council shall make a
17recommendation to the Board as a result of its findings at the
18conclusion of any such informal conference.
19    (e) For purposes of this Section, the term "pre-license"
20shall also include the 30-hour post-license course required to
21be taken to retain a broker's license.
22(Source: P.A. 96-856, eff. 12-31-09; 97-400, eff. 1-1-12.)
 
23    (225 ILCS 454/30-10)
24    (Section scheduled to be repealed on January 1, 2020)
25    Sec. 30-10. Advisory Council; powers and duties. There is

 

 

HB3138- 25 -LRB100 08913 SMS 19056 b

1created within the Department an Advisory Council to be
2comprised of 5 members appointed by the Governor. The members'
3terms shall be 4 years or until their successor is appointed
4and the expiration of their terms shall be staggered. No member
5shall be reappointed to the Advisory Council for a term that
6would cause his or her service on the Advisory Council to be
7longer than 12 years in a lifetime. Two of the members shall be
8licensees who are current members of the Board, one member
9shall be a representative of an Illinois real estate trade
10organization who is not a member of the Board, one member shall
11be a representative of a licensed education provider
12pre-license school or continuing education school, and one
13member shall be a representative of an institution of higher
14education that offers pre-license and continuing education
15courses. The Real Estate Coordinator shall serve as the
16chairman of the Advisory Council, ex officio, without vote.
17Three Advisory Council members shall constitute a quorum. A
18quorum is required for all Advisory Council decisions. The
19Advisory Council shall recommend criteria for the licensing and
20renewal of education providers, and pre-license schools,
21pre-license instructors, continuing education schools, and
22continuing education instructors; review applications for
23these licenses to determine if the applicants meet the
24qualifications for licensure established in this Act and by
25rule; approve education provider pre-license school and
26continuing education curricula; and make recommendations to

 

 

HB3138- 26 -LRB100 08913 SMS 19056 b

1the Board regarding rules to be adopted for the conduct of
2education providers schools and instructors and the
3administration of the education provisions of this Act.
4(Source: P.A. 96-856, eff. 12-31-09.)
 
5    (225 ILCS 454/30-15)
6    (Section scheduled to be repealed on January 1, 2020)
7    Sec. 30-15. Approval Licensing of continuing education
8schools; approval of courses.
9    (a) (Blank). Only continuing education schools in
10possession of a valid continuing education school license may
11provide real estate continuing education courses that will
12satisfy the requirements of this Act. Pre-license schools
13licensed to offer pre-license education courses for brokers,
14managing brokers, or leasing agents shall qualify for a
15continuing education school license upon completion of an
16application and the submission of the required fee. Every
17entity that desires to obtain a continuing education school
18license shall make application to the Department in writing in
19forms prescribed by the Department and pay the fee prescribed
20by rule. In addition to any other information required to be
21contained in the application, every application for an original
22or renewed license shall include the applicant's Social
23Security number.
24    (b) (Blank). The criteria for a continuing education
25license shall include the following:

 

 

HB3138- 27 -LRB100 08913 SMS 19056 b

1        (1) A sound financial base for establishing,
2    promoting, and delivering the necessary courses. Budget
3    planning for the School's courses should be clearly
4    projected.
5        (2) A sufficient number of qualified, licensed
6    instructors as provided by rule.
7        (3) Adequate support personnel to assist with
8    administrative matters and technical assistance.
9        (4) Maintenance and availability of records of
10    participation for licensees.
11        (5) The ability to provide each participant who
12    successfully completes an approved program with a
13    certificate of completion signed by the administrator of a
14    licensed continuing education school on forms provided by
15    the Department.
16        (6) The continuing education school must have a written
17    policy dealing with procedures for the management of
18    grievances and fee refunds.
19        (7) The continuing education school shall maintain
20    lesson plans and examinations for each course.
21        (8) The continuing education school shall require a 70%
22    passing grade for successful completion of any continuing
23    education course.
24        (9) The continuing education school shall identify and
25    use instructors who will teach in a planned program.
26    Suggested criteria for instructor selections include:

 

 

HB3138- 28 -LRB100 08913 SMS 19056 b

1            (A) appropriate credentials;
2            (B) competence as a teacher;
3            (C) knowledge of content area; and
4            (D) qualification by experience.
5        (10) The continuing education school shall provide a
6    proctor or an electronic means of proctoring for each
7    examination. The continuing education school shall be
8    responsible for the conduct of the proctor. The duties and
9    responsibilities of a proctor shall be established by rule.
10        (11) The continuing education school must provide for
11    closed book examinations for each course unless the
12    Advisory Council excuses this requirement based on the
13    complexity of the course material.
14    (c) (Blank). Advertising and promotion of continuing
15education activities must be carried out in a responsible
16fashion, clearly showing the educational objectives of the
17activity, the nature of the audience that may benefit from the
18activity, the cost of the activity to the participant and the
19items covered by the cost, the amount of credit that can be
20earned, and the credentials of the faculty.
21    (d) (Blank). The Department may or upon request of the
22Advisory Council shall, after notice, cause a continuing
23education school to attend an informal conference before the
24Advisory Council for failure to comply with any requirement for
25licensure or for failure to comply with any provision of this
26Act or the rules for the administration of this Act. The

 

 

HB3138- 29 -LRB100 08913 SMS 19056 b

1Advisory Council shall make a recommendation to the Board as a
2result of its findings at the conclusion of any such informal
3conference.
4    (e) (Blank). All continuing education schools shall
5maintain these minimum criteria and pay the required fee in
6order to retain their continuing education school license.
7    (f) All education providers continuing education schools
8shall submit, at the time of initial application and with each
9license renewal, a list of courses with course materials to be
10offered by the education provider continuing education school.
11The Department, however, shall establish a mechanism whereby
12the education provider continuing education schools may apply
13for and obtain approval for pre-license, post-license, or
14continuing education courses that are submitted after the time
15of initial application or renewal. The Department shall provide
16to each education provider continuing education school a
17certificate for each approved pre-license, post-license, or
18continuing education course. All pre-license, post-license, or
19continuing education courses shall be valid for the period
20coinciding with the term of license of the education provider
21continuing education school. All education providers
22continuing education schools shall provide a copy of the
23certificate of the pre-license, post-license, or continuing
24education course within the course materials given to each
25student or shall display a copy of the certificate of the
26pre-license, post-license, or continuing education course in a

 

 

HB3138- 30 -LRB100 08913 SMS 19056 b

1conspicuous place at the location of the class.
2    (g) Each education provider continuing education school
3shall provide to the Department a monthly report in a format
4determined by the Department, with information concerning
5students who successfully completed all approved pre-license,
6post-license, or continuing education courses offered by the
7education provider continuing education school for the prior
8month.
9    (h) The Department, upon the recommendation of the Advisory
10Council, may temporarily suspend a licensed education
11provider's continuing education school's approved courses
12without hearing and refuse to accept successful completion of
13or participation in any of these pre-license, post-license, or
14continuing education courses for continuing education credit
15from that education provider school upon the failure of that
16education provider continuing education school to comply with
17the provisions of this Act or the rules for the administration
18of this Act, until such time as the Department receives
19satisfactory assurance of compliance. The Department shall
20notify the education provider continuing education school of
21the noncompliance and may initiate disciplinary proceedings
22pursuant to this Act. The Department may refuse to issue,
23suspend, revoke, or otherwise discipline the license of an
24education provider a continuing education school or may
25withdraw approval of a pre-license, post-license, or
26continuing education course for good cause. Failure to comply

 

 

HB3138- 31 -LRB100 08913 SMS 19056 b

1with the requirements of this Section or any other requirements
2established by rule shall be deemed to be good cause.
3Disciplinary proceedings shall be conducted by the Board in the
4same manner as other disciplinary proceedings under this Act.
5    (i) The Department is authorized to adopt any
6administrative rule that may be necessary for the
7implementation and enforcement of this Section.
8(Source: P.A. 99-227, eff. 8-3-15.)
 
9    (225 ILCS 454/30-20)
10    (Section scheduled to be repealed on January 1, 2020)
11    Sec. 30-20. Fees for education provider continuing
12education school license; renewal; term. All applications for
13an education provider a continuing education school license
14shall be accompanied by a nonrefundable application fee in an
15amount established by rule. All education providers continuing
16education schools shall be required to submit a renewal
17application, the required fee as established by rule, and a
18listing of the courses to be offered during the year in order
19to renew their education provider continuing education school
20licenses. The term for an education provider a continuing
21education school license shall be 2 years and as established by
22rule. The fees collected under this Article 30 shall be
23deposited in the Real Estate License Administration Fund and
24shall be used to defray the cost of administration of the
25program and per diem of the Advisory Council as determined by

 

 

HB3138- 32 -LRB100 08913 SMS 19056 b

1the Secretary.
2(Source: P.A. 96-856, eff. 12-31-09.)
 
3    (225 ILCS 454/30-25)
4    (Section scheduled to be repealed on January 1, 2020)
5    Sec. 30-25. Licensing of education provider continuing
6education instructors.
7    (a) No such person shall act as an education provider a
8continuing education instructor at a continuing education
9school or branch without possessing a valid education provider
10continuing education instructor license and satisfying any
11other qualification criteria established by the Department by
12rule.
13    (b) After the effective date of this Act, every person who
14desires to obtain an education provider instructor a continuing
15education instructor's license shall attend and successfully
16complete a one-day instructor development workshop, as
17approved by the Department. The term of licensure for an
18education provider a continuing education instructor shall be 2
19years and as established by rule. Every person who desires to
20obtain an educator provider a continuing education instructor
21license shall make application to the Department in writing on
22forms prescribed by the Department Office, accompanied by the
23fee prescribed by rule. In addition to any other information
24required to be contained in the application, every application
25for an original license shall include the applicant's Social

 

 

HB3138- 33 -LRB100 08913 SMS 19056 b

1Security number, which shall be retained in the agency's
2records pertaining to the license. As soon as practical, the
3Department shall assign a customer's identification number to
4each applicant for a license.
5    Every application for a renewal or restored license shall
6require the applicant's customer identification number.
7    The Department shall issue an education provider a
8continuing education instructor license to applicants who meet
9qualification criteria established by this Act or rule.
10    (c) The Department may refuse to issue, suspend, revoke, or
11otherwise discipline an education provider a continuing
12education instructor for good cause. Disciplinary proceedings
13shall be conducted by the Board in the same manner as other
14disciplinary proceedings under this Act. All continuing
15education provider instructors must teach at least one course
16within the period of licensure or take an instructor training
17program approved by the Department in lieu thereof.
18    (d) An education provider instructor may teach at more than
19one licensed education provider.
20    (e) The Department is authorized to adopt any
21administrative rule that may be necessary for the
22implementation and enforcement of this Section.
23(Source: P.A. 96-856, eff. 12-31-09; 97-400, eff. 1-1-12.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.