State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ House Amendment 002 ][ Senate Amendment 001 ]

90_HB2688eng

      225 ILCS 410/3-7          from Ch. 111, par. 1703-7
          Amends  the  Barber,  Cosmetology,  Esthetics,  and  Nail
      Technology Act of 1985  to  make  a  technical  change  to  a
      Section concerning cosmetology licensure, renewal, continuing
      education, and military service.
                                                     LRB9009844LDpk
HB2688 Engrossed                               LRB9009844LDpk
 1        AN ACT concerning the regulation of professions.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4                   ARTICLE 1.  GENERAL PROVISIONS
 5        Section 1-1.  Short title;  Act  supersedes  Real  Estate
 6    License Act of 1983. This Act shall be known and may be cited
 7    as  the  Real  Estate  License  Act  of  1999,  and  it shall
 8    supersede the Real Estate License Act  of  1983  repealed  by
 9    this Act.
10        Section  1-5.   Legislative  intent.  The  intent  of the
11    General Assembly in enacting this statute is to evaluate  the
12    competency of persons engaged in the real estate business and
13    to regulate this business for the protection of the public.
14        Section  1-10.   Definitions.  In  this  Act,  unless the
15    context otherwise requires:
16        "Act" means the Real Estate License Act of 1999.
17        "Advisory  Council"  means  the  Real  Estate   Education
18    Advisory Council created under Section 30-10 of this Act.
19        "Agency"  means  a  relationship  in  which a real estate
20    broker or licensee, whether directly or through an affiliated
21    licensee, represents a consumer by  the  consumer's  consent,
22    whether express or implied, in a real property transaction.
23        "Applicant" means any person, as defined in this Section,
24    who  applies  to  OBRE  for  a valid license as a real estate
25    broker, real estate salesperson, or leasing agent.
26        "Blind advertisement" means any real estate advertisement
27    that does not include the sponsoring broker's  business  name
28    and  that is used by any licensee regarding the sale or lease
29    of  real  estate,  including  his  or   her   own,   licensed
HB2688 Engrossed            -2-                LRB9009844LDpk
 1    activities,  or  the  hiring  of any licensee under this Act.
 2    The broker's business name in the case of a  franchise  shall
 3    include  the franchise affiliation as well as the name of the
 4    individual firm.
 5        "Board"  means  the  Real   Estate   Administration   and
 6    Disciplinary Board of OBRE.
 7        "Branch  office" means a sponsoring broker's office other
 8    than the sponsoring broker's principal office.
 9        "Broker"  means  an  individual,   partnership,   limited
10    liability   company,   corporation,   or  registered  limited
11    liability partnership other than a real estate salesperson or
12    leasing agent who for another  and  for  compensation  either
13    directly or indirectly:
14             (1)  Sells,  exchanges,  purchases, rents, or leases
15        real estate.
16             (2)  Offers to sell, exchange,  purchase,  rent,  or
17        lease real estate.
18             (3)  Negotiates,  offers,  attempts,  or  agrees  to
19        negotiate   the  sale,  exchange,  purchase,  rental,  or
20        leasing of real estate.
21             (4)  Lists, offers, attempts, or agrees to list real
22        estate for sale, lease, or exchange.
23             (5)  Buys,  sells,  offers  to  buy  or   sell,   or
24        otherwise deals in options on real estate or improvements
25        thereon.
26             (6)  Collects,   offers,   attempts,  or  agrees  to
27        collect rent for the use of real estate.
28             (7)  Advertises or represents himself or herself  as
29        being   engaged  in  the  business  of  buying,  selling,
30        exchanging, renting, or leasing real estate.
31             (8)  Assists or directs in procuring or referring of
32        prospects, intended to  result  in  the  sale,  exchange,
33        lease, or rental of real estate.
34             (9)  Assists  or  directs  in the negotiation of any
HB2688 Engrossed            -3-                LRB9009844LDpk
 1        transaction intended to result  in  the  sale,  exchange,
 2        lease, or rental of real estate.
 3             (10)  Opens  real estate to the public for marketing
 4        purposes.
 5        "Brokerage agreement" means a written or  oral  agreement
 6    between  a  sponsoring  broker  and  a  consumer for licensed
 7    activities to  be  provided  to  a  consumer  in  return  for
 8    compensation  or  the  right  to  receive  compensation  from
 9    another.     Brokerage    agreements   constitute   bilateral
10    agreements between a broker and the broker's client.
11        "Client" means a person who is  being  represented  by  a
12    licensee.
13        "Commissioner"  means  the Commissioner of Banks and Real
14    Estate or a person authorized by the Commissioner, the Office
15    of Banks and Real Estate Act, or  this  Act  to  act  in  the
16    Commissioner's stead.
17        "Compensation"  means the valuable consideration given by
18    one person or entity to another person or entity in  exchange
19    for   the   performance   of   some   activity   or  service.
20    Compensation  shall  include   the   transfer   of   valuable
21    consideration, including without limitation the following:
22             (1)  commissions;
23             (2)  referral fees;
24             (3)  bonuses;
25             (4)  prizes;
26             (5)  merchandise;
27             (6)  finder fees;
28             (7)  performance of services;
29             (8)  coupons or gift certificates;
30             (9)  discounts;
31             (10)  rebates;
32             (11)  a chance to win a raffle, drawing, lottery, or
33        similar game of chance not prohibited by any other law or
34        statute;
HB2688 Engrossed            -4-                LRB9009844LDpk
 1             (12)  retainer fee; or
 2             (13)  salary.
 3        "Confidential  information" means information obtained by
 4    a licensee from a client  during  the  term  of  a  brokerage
 5    agreement  that  (i)  was  made  confidential  by the written
 6    request or written instruction of the client, (ii) deals with
 7    the  negotiating  position  of  the  client,  or   (iii)   is
 8    information the disclosure of which could materially harm the
 9    negotiating position of the client, unless at any time:
10             (1)  the    client   permits   the   disclosure   of
11        information given by that client by word or conduct;
12             (2)  the disclosure is required by law; or
13             (3)  the information becomes public  from  a  source
14        other than the licensee.
15        "Confidential  information"  shall  not  be considered to
16    include material information about the physical condition  of
17    the property.
18        "Consumer"  means a person or entity seeking or receiving
19    licensed activities.
20        "Continuing education school" means any  person  licensed
21    by  OBRE  as  a school for continuing education in accordance
22    with Section 30-15 of this Act.
23        "Credit hour" means 50 minutes of  classroom  instruction
24    in course work that meets the requirements set forth in rules
25    adopted by OBRE.
26        "Customer"  means a consumer who is not being represented
27    by the licensee but  for  whom  the  licensee  is  performing
28    ministerial acts.
29        "Designated  agency"  means  a  contractual  relationship
30    between  a sponsoring broker and a client under Section 15-50
31    of this Act in which one or more licensees associated with or
32    employed by the broker are designated as agent of the client.
33        "Designated agent" means a sponsored licensee named by  a
34    sponsoring broker as the legal agent of a client, as provided
HB2688 Engrossed            -5-                LRB9009844LDpk
 1    for in Section 15-50 of this Act.
 2        "Director"   means   the  Director  of  the  Real  Estate
 3    Division, OBRE.
 4        "Dual agency" means an agency  relationship  in  which  a
 5    licensee  is  representing  both  buyer  and  seller  or both
 6    landlord and tenant in the same transaction.  When the agency
 7    relationship is a designated agency, the question of  whether
 8    there  is  a  dual  agency  shall be determined by the agency
 9    relationships of the designated agent of the parties and  not
10    of the sponsoring broker.
11        "Employee"  or  other  derivative of the word "employee",
12    when  used  to  refer  to,   describe,   or   delineate   the
13    relationship  between  a real estate broker and a real estate
14    salesperson, another real estate broker, or a leasing  agent,
15    shall  be  construed  to  include  an  independent contractor
16    relationship, provided that a written agreement  exists  that
17    clearly   establishes   and  states  the  relationship.   All
18    responsibilities of a broker shall remain.
19        "Escrow moneys" means all moneys, promissory notes or any
20    other  type  or  manner  of   legal   tender   or   financial
21    consideration  deposited  with  any person for the benefit of
22    the parties to the transaction.  A transaction exists once an
23    agreement has  been  reached  and  an  accepted  real  estate
24    contract  signed  or  lease agreed to by the parties.  Escrow
25    moneys  includes  without  limitation  earnest   moneys   and
26    security  deposits,  except  those security deposits in which
27    the person holding the security  deposit  is  also  the  sole
28    owner of the property being leased and for which the security
29    deposit is being held.
30        "Inoperative"  means  a  status  of  licensure  where the
31    licensee holds a current license  under  this  Act,  but  the
32    licensee  is  prohibited from engaging in licensed activities
33    because the licensee is unsponsored or  the  license  of  the
34    sponsoring  broker with whom the licensee is associated or by
HB2688 Engrossed            -6-                LRB9009844LDpk
 1    whom he or she is employed  is  currently  expired,  revoked,
 2    suspended, or otherwise rendered invalid under this Act.
 3        "Leasing  Agent" means a person who is employed by a real
 4    estate broker to engage in  licensed  activities  limited  to
 5    leasing residential real estate who has obtained a license as
 6    provided for in Section 5-5 of this Act.
 7        "License"  means  the  document issued by OBRE certifying
 8    that the person named thereon has fulfilled all  requirements
 9    prerequisite to licensure under this Act.
10        "Licensed  activities"  means  those activities listed in
11    the definition of "broker" under this Section.
12        "Licensee" means any person, as defined in this  Section,
13    who  holds a valid unexpired license as a real estate broker,
14    real estate salesperson, or leasing agent.
15        "Listing presentation" means a  communication  between  a
16    real estate broker or salesperson and a consumer in which the
17    licensee  is  attempting to secure a brokerage agreement with
18    the consumer to market the consumer's real estate for sale or
19    lease.
20        "Managing broker" means  a  broker  who  has  supervisory
21    responsibilities  for  licensees  in one or, in the case of a
22    multi-office company, more than one office and who  has  been
23    appointed as such by the sponsoring broker of the real estate
24    firm.
25        "Medium of advertising" means any method of communication
26    intended to influence the general public to use or purchase a
27    particular good or service or real estate.
28        "Ministerial  acts"  means those acts that a licensee may
29    perform for a consumer that are informative  or  clerical  in
30    nature  and do not rise to the level of active representation
31    on behalf of a consumer.   Examples  of  these  acts  include
32    without  limitation  (i)  responding  to  phone  inquiries by
33    consumers as to the availability  and  pricing  of  brokerage
34    services,  (ii) responding to phone inquiries from a consumer
HB2688 Engrossed            -7-                LRB9009844LDpk
 1    concerning the price or location of property, (iii) attending
 2    an open house and responding to questions about the  property
 3    from   a  consumer,  (iv)  setting  an  appointment  to  view
 4    property, (v) responding to questions  of  consumers  walking
 5    into   a  licensee's  office  concerning  brokerage  services
 6    offered  or  particular  properties,  (vi)  accompanying   an
 7    appraiser, inspector, contractor, or similar third party on a
 8    visit  to  a  property,  (vii)  describing  a property or the
 9    property's condition in response  to  a  consumer's  inquiry,
10    (viii)  completing  business  or  factual  information  for a
11    consumer on an offer or contract to purchase on behalf  of  a
12    client,  (ix)  showing a client through a property being sold
13    by an owner on his or her own  behalf,  or  (x)  referral  to
14    another broker or service provider.
15        "OBRE" means the Office of Banks and Real Estate.
16        "Office"  means  a real estate broker's place of business
17    where the general public is invited to transact business  and
18    where  records  may  be  maintained  and  licenses displayed,
19    whether  or  not  it  is  the  broker's  principal  place  of
20    business.
21        "Person"  means  and  includes   individuals,   entities,
22    corporations, limited liability companies, registered limited
23    liability   partnerships,   and   partnerships,   foreign  or
24    domestic, except that when the  context  otherwise  requires,
25    the  term may refer to a single individual or other described
26    entity.
27        "Personal  assistant"  means  a  licensed  or  unlicensed
28    person who has been  hired  for  the  purpose  of  aiding  or
29    assisting  a  sponsored  licensee of the sponsoring broker of
30    the personal assistant in the performance  of  the  sponsored
31    licensee's job.
32        "Pocket  card"  means  the card issued by OBRE to signify
33    that the person named on the card is currently licensed under
34    this Act.
HB2688 Engrossed            -8-                LRB9009844LDpk
 1        "Pre-license school" means  a  school  licensed  by  OBRE
 2    offering   courses   in   subjects  related  to  real  estate
 3    transactions, including the subjects upon which an  applicant
 4    is examined in determining fitness to receive a license.
 5        "Pre-renewal period" means the period between the date of
 6    issue  of  a  currently    valid  license  and  the license's
 7    expiration date.
 8        "Real estate" means and includes leaseholds  as  well  as
 9    any  other  interest  or  estate  in land, whether corporeal,
10    incorporeal, freehold, or non-freehold and whether  the  real
11    estate is situated in this State or elsewhere.
12          "Real  Estate Administration and Disciplinary Board" or
13    "Board" means the Real Estate Administration and Disciplinary
14    Board created by Section 25-10 of this Act.
15        "Salesperson" means any individual,  other  than  a  real
16    estate  broker  or  leasing  agent, who is employed by a real
17    estate broker or is associated by written  agreement  with  a
18    real   estate   broker   as  an  independent  contractor  and
19    participates in any activity described in the  definition  of
20    "broker" under this Section.
21        "Sponsoring  broker"  means  the  broker who has issued a
22    sponsor card to  a  licensed  salesperson,  another  licensed
23    broker, or a leasing agent.
24        "Sponsor  card"  means the temporary permit issued by the
25    sponsoring real estate broker certifying that the real estate
26    broker, real  estate  salesperson,  or  leasing  agent  named
27    thereon  is  employed  by  or associated by written agreement
28    with the sponsoring real estate broker, as  provided  for  in
29    Section 5-40 of this Act.
30                 ARTICLE 5. LICENSING AND EDUCATION
31        Section 5-5.  Leasing agent license.
32        (a)  The  purpose  of  this  Section  is to provide for a
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 1    limited scope license to enable persons who wish to engage in
 2    activities  limited  to  the  leasing  of  residential   real
 3    property  for which a license is required under this Act, and
 4    only those activities, to do  so  by  obtaining  the  license
 5    provided for under this Section.
 6        (b)  Notwithstanding  the  other  provisions of this Act,
 7    there is hereby created a leasing agent  license  that  shall
 8    enable  the  licensee  to  engage only in residential leasing
 9    activities for which a license is required  under  this  Act.
10    Such activities include without limitation leasing or renting
11    residential  real  property,  collecting  rent for the use of
12    residential  real  estate,  or   attempting,   offering,   or
13    negotiating  to  lease,  rent, or collect rent for the use of
14    residential real property.  Nothing in this Section shall  be
15    construed  to  require  a  licensed  real  estate  broker  or
16    salesperson  to  obtain  a  leasing agent license in order to
17    perform leasing activities for which a  license  is  required
18    under this Act. Licensed leasing agents must be sponsored and
19    employed by a sponsoring broker.
20        (c)  OBRE,  by  rule, with the advice of the Board, shall
21    provide for the licensing of leasing  agents,  including  the
22    issuance, renewal, and administration of licenses.
23        (d)  Notwithstanding  any other provisions of this Act to
24    the contrary, a person  may  engage  in  residential  leasing
25    activities  for  which  a license is required under this Act,
26    for a period of 120 consecutive days without being  licensed,
27    so  long  as  the person is acting under the supervision of a
28    licensed real estate broker and the broker has notified  OBRE
29    that  the  person  is  pursuing licensure under this Section.
30    During the 120 day period all requirements of  Sections  5-10
31    and  5-65  of  this Act with respect to education, successful
32    completion of an examination, and the payment of all required
33    fees must be satisfied.  OBRE may adopt rules to ensure  that
34    the  provisions  of this subsection are not  used in a manner
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 1    that  enables  an  unlicensed   person   to   repeatedly   or
 2    continually  engage  in  activities  for  which  a license is
 3    required under this Act.
 4        Section 5-10.  Application  for  leasing  agent  license.
 5    Every  person  who  desires to obtain a leasing agent license
 6    shall apply to OBRE in writing on forms provided by OBRE.  In
 7    addition to any other information required to be contained in
 8    the application, every application for an original or renewed
 9    leasing agent license shall include  the  applicant's  Social
10    Security  number.   All  application  or  license  fees  must
11    accompany  the  application.  Each applicant must be at least
12    18 years of age, must be of good moral character, shall  have
13    successfully  completed  a  4-year  course of study in a high
14    school or secondary school or an equivalent course  of  study
15    approved  by the Illinois State Board of Education, and shall
16    successfully complete a  written  examination  authorized  by
17    OBRE  sufficient  to demonstrate the applicant's knowledge of
18    the provisions of this Act relating to leasing agents and the
19    applicant's competence to  engage  in  the  activities  of  a
20    licensed   leasing   agent.    Applicants  must  successfully
21    complete 15 hours of instruction in  an  approved  course  of
22    study  relating  to the leasing of residential real property.
23    The  course  of  study  shall,  among  other  topics,   cover
24    environmental  issues  relating to residential real property.
25    Successfully completed course work, completed pursuant to the
26    requirements of this Section, may be applied  to  the  course
27    work  requirements  to  obtain  a  real  estate  broker's  or
28    salesperson's license as  provided  by  rule.   The  Advisory
29    Council  shall  recommend  through the Board to OBRE and OBRE
30    shall  adopt  requirements  for  approved   courses,   course
31    content,  and  the  approval  of  courses,  instructors,  and
32    schools,  as  well  as  school and instructor fees.  OBRE may
33    establish  continuing  education  requirements  for  licensed
HB2688 Engrossed            -11-               LRB9009844LDpk
 1    leasing agents, by rule, with  the  advice  of  the  Advisory
 2    Council and Board.
 3        Section  5-15.   Necessity  of  broker,  salesperson,  or
 4    leasing    agent   license   or   sponsor   card;   ownership
 5    restrictions.
 6        (a)  It is unlawful for any person, corporation,  limited
 7    liability  company, registered limited liability partnership,
 8    or partnership to act as a real estate  broker,  real  estate
 9    salesperson,  or  leasing  agent or to advertise or assume to
10    act as such broker, salesperson, or leasing agent  without  a
11    properly  issued  sponsor card or a license issued under this
12    Act by  OBRE,  either  directly  or  through  its  authorized
13    designee.
14        (b)  No  corporation shall be granted a license or engage
15    in the business or capacity, either directly  or  indirectly,
16    of  a  real  estate  broker,  unless  every  officer  of  the
17    corporation  who  actively  participates  in  the real estate
18    activities of the corporation  holds  a  license  as  a  real
19    estate  broker  and  unless  every  employee  who  acts  as a
20    salesperson, or leasing agent for  the  corporation  holds  a
21    license  as  a  real  estate  broker, salesperson, or leasing
22    agent.
23        (c)  No partnership shall be granted a license or  engage
24    in  the business or serve in the capacity, either directly or
25    indirectly, of a real estate  broker,  unless  every  general
26    partner  in  the partnership holds a license as a real estate
27    broker and unless every employee who acts as a salesperson or
28    leasing agent for the partnership holds a license as  a  real
29    estate broker, salesperson, or leasing agent.  In the case of
30    a  registered  limited  liability  partnership  (LLP),  every
31    partner  in  the  LLP  must  hold  a license as a real estate
32    broker and every  employee  who  acts  as  a  salesperson  or
33    leasing  agent  must  hold a license as a real estate broker,
HB2688 Engrossed            -12-               LRB9009844LDpk
 1    salesperson, or leasing agent.
 2        (d)  No limited liability  company  shall  be  granted  a
 3    license  or  engage in the business or serve in the capacity,
 4    either directly or indirectly, of a real estate broker unless
 5    every manager  in  the  limited  liability  company  holds  a
 6    license  as  a real estate broker and unless every member and
 7    employee who acts as a salesperson or leasing agent  for  the
 8    limited  liability  company  holds a license as a real estate
 9    broker, salesperson, or leasing agent.
10        (e)  No  partnership,  limited  liability   company,   or
11    corporation shall be licensed to conduct a brokerage business
12    where an individual salesperson or leasing agent, or group of
13    salespersons   or   leasing   agents,  owns  or  directly  or
14    indirectly controls more than 49% of the shares of  stock  or
15    other   ownership   in  the  partnership,  limited  liability
16    company, or corporation.
17        Section 5-20.  Exemptions from  broker,  salesperson,  or
18    leasing   agent  license  requirement.  The  requirement  for
19    holding a license under this Article 5 shall not apply to:
20        (1)  Any person or entity that owns at least 51%  of  the
21    real  estate  being  sold,  leased,  exchanged  or  otherwise
22    transferred.   This  exemption  shall extend to the full-time
23    employees of any entity exempt under this Section who do  not
24    engage  in licensed activities described in the definition of
25    "broker" under Section 1-10 of this Act  in  connection  with
26    real  estate  not  so  owned  by  that entity.  However, this
27    exemption shall not apply to the employees of any affiliated,
28    related, or subsidiary entity that is not wholly owned by the
29    exempt entity nor to the  employees  of  a  general  partner,
30    partner,  or managing member of an entity unless that general
31    partner, partner, or managing member  owns  at  least  a  51%
32    interest in the exempt entity.
33        (2)  An attorney in fact acting under a duly executed and
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 1    recorded  power  of  attorney  to convey real estate from the
 2    owner or lessor or the services rendered by  an  attorney  at
 3    law  in the performance of the attorney's duty as an attorney
 4    at law.
 5        (3)  Any  person   acting   as   receiver,   trustee   in
 6    bankruptcy,  administrator,  executor,  or  guardian or while
 7    acting under a court order or under the authority of  a  will
 8    or testamentary trust.
 9        (4)  Any  person  acting  as  a  resident manager for the
10    owner or any employee acting as the resident  manager  for  a
11    broker  managing  an apartment building, duplex, or apartment
12    complex, when the resident manager resides on  the  premises,
13    the  premises  is  his  or  her  primary  residence,  and the
14    resident manager is engaged in the leasing of the property of
15    which he or she is the resident manager.
16        (5)  Any officer or employee of a federal agency  in  the
17    conduct of official duties.
18        (6)  Any  officer  or employee of the State government or
19    any political subdivision thereof performing official duties.
20        (7)  Any multiple listing service  or  other  information
21    exchange  that is engaged in the collection and dissemination
22    of information concerning real  estate  available  for  sale,
23    purchase,  lease,  or  exchange  along  with  which  no other
24    licensed activities are provided.
25        (8)  Railroads and other public  utilities  regulated  by
26    the State of Illinois, or the officers or full time employees
27    thereof, unless the performance of any licensed activities is
28    in  connection  with  the  sale,  purchase,  lease,  or other
29    disposition of real estate or investment therein not  needing
30    the approval of the appropriate State regulatory authority.
31        (9)  Any  medium  of advertising in the routine course of
32    selling or publishing advertising along with which  no  other
33    licensed activities are provided.
34        (10)  Any  resident lessee of a residential dwelling unit
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 1    who refers for compensation to  the  owner  of  the  dwelling
 2    unit,  or  to  the  owner's  agent,  prospective  lessees  of
 3    dwelling  units  in  the  same  building  or  complex  as the
 4    resident lessee's unit, but only if the resident  lessee  (i)
 5    refers  no  more  than  3 prospective lessees in any 12-month
 6    period, (ii) receives compensation of no more than $1,000  or
 7    the equivalent of one month's rent, whichever is less, in any
 8    12-month  period,  and  (iii) limits his or her activities to
 9    referring prospective lessees to the owner,  or  the  owner's
10    agent,  and  does  not  show a residential dwelling unit to a
11    prospective lessee, discuss terms or conditions of leasing  a
12    dwelling   unit  with  a  prospective  lessee,  or  otherwise
13    participate in the negotiation of the leasing of  a  dwelling
14    unit.
15        Section  5-25.  Application for and issuance of broker or
16    salesperson license.
17        (a)  Every person who desires to obtain a  license  shall
18    make  application  to OBRE in writing upon forms prepared and
19    furnished by OBRE.  In  addition  to  any  other  information
20    required   to   be   contained   in  the  application,  every
21    application for an original or renewed license shall  include
22    the applicant's Social Security number.  Each applicant shall
23    be  at least 21 years of age, be of good moral character, and
24    have successfully completed a 4-year course  of  study  in  a
25    high  school  or  secondary  school  approved by the Illinois
26    State Board of Education or an equivalent course of study  as
27    determined  by an examination conducted by the Illinois State
28    Board of Education and shall be verified under  oath  by  the
29    applicant.   The  minimum age of 21 years shall be waived for
30    any person seeking a license as a real estate salesperson who
31    has attained the age of 18 and can provide  evidence  of  the
32    successful   completion   of   at   least   4   semesters  of
33    post-secondary school study as a  full-time  student  or  the
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 1    equivalent,  with major emphasis on real estate courses, in a
 2    school approved by OBRE.
 3        (b)  When an applicant has had his or her license revoked
 4    on a prior occasion or when an applicant  is  found  to  have
 5    committed any of the practices enumerated in Section 20-20 of
 6    this  Act or when an applicant has been convicted of forgery,
 7    embezzlement, obtaining money under false pretenses, larceny,
 8    extortion,  conspiracy  to  defraud,  or  any  other  similar
 9    offense or  offenses  or  has  been  convicted  of  a  felony
10    involving   moral   turpitude   in  any  court  of  competent
11    jurisdiction  in  this  or  any  other  state,  district,  or
12    territory of the United States or of a foreign  country,  the
13    Board   may   consider  the  prior  revocation,  conduct,  or
14    conviction in its  determination  of  the  applicant's  moral
15    character  and  whether to grant the applicant a license.  In
16    its  consideration  of  the  prior  revocation,  conduct,  or
17    conviction, the Board shall take into account the  nature  of
18    the  conduct,  any  aggravating or extenuating circumstances,
19    the  time  elapsed  since   the   revocation,   conduct,   or
20    conviction,  the  rehabilitation  or restitution performed by
21    the applicant, and any other factors  that  the  Board  deems
22    relevant.    When  an applicant has made a false statement of
23    material fact on his or her application, the false  statement
24    may  in  itself  be sufficient grounds to revoke or refuse to
25    issue a license.
26        (c)  Every valid application for issuance of  an  initial
27    license  shall  be accompanied by a sponsor card and the fees
28    specified by rule.
29        (d)  No applicant shall engage in any of  the  activities
30    covered  by  this  Act  until  a  valid sponsor card has been
31    issued to such applicant.  The sponsor card  shall  be  valid
32    for  a  maximum  period  of 45 days from the date of issuance
33    unless extended for good cause as provided by rule.
34        (e)  OBRE shall issue to each applicant entitled  thereto
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 1    a  license  in  such  form and size as shall be prescribed by
 2    OBRE.  The procedure  for  terminating  a  license  shall  be
 3    printed  on  the  reverse  side of the license.  Each license
 4    shall bear the name of the person so qualified, shall specify
 5    whether the person  is  qualified  to  act  in  a  broker  or
 6    salesperson   capacity,   and   shall   contain   such  other
 7    information as shall be recommended by the Board and approved
 8    by OBRE.  Each person licensed under this Act  shall  display
 9    his  or  her  license  conspicuously  in  his or her place of
10    business.
11        Section  5-30.  Education  requirements  to   obtain   an
12    original broker or salesperson license.
13        (a)  All   applicants  for  a  broker's  license,  except
14    applicants who meet the criteria set forth in subsection  (c)
15    of  this  Section  shall   (i)  give satisfactory evidence of
16    having completed at least 120 classroom hours,  45  of  which
17    shall  be  those  hours  required  to  obtain a salesperson's
18    license plus 15 hours in brokerage administration courses, in
19    real estate courses approved by the Advisory Council or  (ii)
20    for  applicants  who  currently  hold  a  valid  real  estate
21    salesperson's  license,  give satisfactory evidence of having
22    completed at least 75  hours  in  real  estate  courses,  not
23    including   the   courses  that  are  required  to  obtain  a
24    salesperson's license, approved by the Advisory Council.
25        (b)  All applicants for a salesperson's  license,  except
26    applicants  who meet the criteria set forth in subsection (c)
27    of this Section shall give satisfactory  evidence  that  they
28    have  completed  at  least  45  hours  of instruction in real
29    estate courses approved by the Advisory Council.
30        (c)  The requirements specified in  subsections  (a)  and
31    (b) of this Section do not apply to applicants who:
32             (1)  are  currently  admitted to practice law by the
33        Supreme Court of Illinois and  are  currently  in  active
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 1        standing; or
 2             (2)  show  evidence  of  receiving  a  baccalaureate
 3        degree including courses involving real estate or related
 4        material  from  a  college  or university approved by the
 5        Advisory Council.
 6        (d)  A minimum of 15 of the required hours of pre-license
 7    education shall be in the areas of Article 15  of  this  Act,
 8    disclosure  and  environmental issues, or any other currently
 9    topical areas that are determined by the Advisory Council.
10        Section 5-35.  Examination; broker or salesperson.
11        (a)  Every person who makes application for  an  original
12    license  as a broker or salesperson shall personally take and
13    pass a written examination authorized by OBRE and answer  any
14    questions  that  may  be required to determine the good moral
15    character of the applicant and the applicant's competency  to
16    transact  the  business of broker or salesperson, as the case
17    may be, in such a manner as to safeguard the interests of the
18    public.  In determining this competency, OBRE  shall  require
19    proof  that  the  applicant  has a good understanding and the
20    knowledge  to  conduct  real  estate  brokerage  and  of  the
21    provisions of this Act.  The examination shall be prepared by
22    an independent testing service designated by OBRE, subject to
23    the  approval  of  the  examinations  by  the   Board.    The
24    designated  independent  testing  service  shall  conduct the
25    examinations at such times and places as OBRE shall  approve.
26    In  addition,  every  person  who desires to take the written
27    examination shall make application to do so to OBRE or to the
28    designated independent testing service in writing upon  forms
29    approved by OBRE.  An applicant shall be eligible to take the
30    examination  only after successfully completing the education
31    requirements, set forth in Section  5-30  of  this  Act,  and
32    attaining  the  minimum  age  specified  in  this  Act.  Each
33    applicant shall be required to establish compliance with  the
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 1    eligibility  requirements in the manner provided by the rules
 2    promulgated for the administration of this Act.
 3        (b)  If a person who has received a passing score on  the
 4    written  examination  described in this Section fails to file
 5    an application and meet all requirements for a license  under
 6    this  Act  within one year after receiving a passing score on
 7    the examination, credit for the examination shall  terminate.
 8    The   person  thereafter  may  make  a  new  application  for
 9    examination.
10        (c)  If an applicant has failed an examination  3  times,
11    the  applicant must repeat the pre-license education required
12    to sit  for  the  examination.   For  the  purposes  of  this
13    Section,  the  fourth attempt shall be the same as the first.
14    Approved education, as prescribed by this Act  for  licensure
15    as  a  salesperson  or  broker,  shall  be valid for a period
16    ending on the later of 2 years after the date of satisfactory
17    completion of the education or 2 years after  the  expiration
18    of the individual's license.
19        Section  5-40.   Sponsor  card;  termination indicated by
20    license endorsement; association with new broker.
21        (a)  The  sponsoring  broker  shall  prepare  upon  forms
22    provided by OBRE and deliver to each licensee employed by  or
23    associated   with   the  sponsoring  broker  a  sponsor  card
24    certifying that the person whose name appears thereon  is  in
25    fact  employed  by  or associated with the sponsoring broker.
26    The sponsoring broker shall send a duplicate of each  sponsor
27    card,  along  with  a valid license or other authorization as
28    provided by rule and the appropriate fee, to OBRE  within  24
29    hours  of issuance of the sponsor card.  It is a violation of
30    this Act for any broker  to  issue  a  sponsor  card  to  any
31    licensee  or  applicant  unless  the  licensee  or  applicant
32    presents  in  hand  a valid license or other authorization as
33    provided by rule.
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 1        (b)  When a licensee terminates his or her employment  or
 2    association  with  a  sponsoring  broker or the employment is
 3    terminated by  the  sponsoring  broker,  the  licensee  shall
 4    obtain from the sponsoring broker his or her license endorsed
 5    by  the  sponsoring  broker  indicating the termination.  The
 6    sponsoring broker shall surrender  to  OBRE  a  copy  of  the
 7    license  of  the licensee within 2 days of the termination or
 8    shall notify OBRE in writing of the termination  and  explain
 9    why a copy of the license is not surrendered.  Failure of the
10    sponsoring  broker to surrender the license shall subject the
11    sponsoring broker to discipline under Section 20-20  of  this
12    Act.    The  license of any licensee whose association with a
13    sponsoring broker is terminated  shall  automatically  become
14    inoperative  immediately  upon  the  termination  unless  the
15    licensee  accepts employment or becomes associated with a new
16    sponsoring broker pursuant to subsection (c) of this Section.
17        (c)  When a licensee accepts  employment  or  association
18    with a new sponsoring broker, the new sponsoring broker shall
19    send  to  OBRE  a  duplicate  sponsor  card,  along  with the
20    licensee's endorsed license or an affidavit of  the  licensee
21    of why the endorsed license is not surrendered, and shall pay
22    the   appropriate   fee   prescribed   by   rule   to   cover
23    administrative  expenses  attendant  to  the  changes  in the
24    registration of the licensee.
25        Section 5-45.  Offices.
26        (a)  If a  sponsoring  broker  maintains  more  than  one
27    office  within  the  State, the sponsoring broker shall apply
28    for a branch office license for each office  other  than  the
29    sponsoring  broker's principal place of business.  The branch
30    office license  shall  be  displayed  conspicuously  in  each
31    branch  office.   The name of each branch office shall be the
32    same as that of the sponsoring broker's principal  office  or
33    shall clearly delineate the branch office's relationship with
HB2688 Engrossed            -20-               LRB9009844LDpk
 1    the principal office.
 2        (b)  The  sponsoring  broker shall name a managing broker
 3    for each branch office and the  sponsoring  broker  shall  be
 4    responsible  for  supervising  all  managing  brokers.    The
 5    sponsoring broker shall notify OBRE in writing of the name of
 6    all  managing  brokers of the sponsoring broker.  Any changes
 7    in managing brokers shall be  reported  to  OBRE  in  writing
 8    within 15 days of the change.  Failure to do so shall subject
 9    the  sponsoring  broker  to discipline under Section 20-20 of
10    this Act.
11        (c)  The sponsoring broker shall immediately notify  OBRE
12    in  writing of any opening, closing, or change in location of
13    any principal or branch office.
14        (d)  Except as provided in this Section, each  sponsoring
15    broker shall maintain a definite office, or place of business
16    within   this  State  for  the  transaction  of  real  estate
17    business, shall conspicuously display an identification  sign
18    on  the  outside  of  his  or her office of adequate size and
19    visibility,  and  shall  conspicuously  display  his  or  her
20    license in his or her office or place of  business  and  also
21    the  licenses  of  all persons associated with or employed by
22    the sponsoring broker who primarily work  at  that  location.
23    The  office  or place of business shall not be located in any
24    retail or  financial  business  establishment  unless  it  is
25    separated  from the other business by a separate and distinct
26    area within the establishment.  A broker who is  licensed  in
27    this  State  by  examination or pursuant to the provisions of
28    Section 5-60 of this Act shall not be required to maintain  a
29    definite  office  or place of business in this State provided
30    all of the following conditions are met:
31             (1)  the broker maintains an active broker's license
32        in the broker's state of domicile;
33             (2)  the broker maintains an office in the  broker's
34        state of domicile; and
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 1             (3)  the   broker   has   filed  with  OBRE  written
 2        statements appointing the  Commissioner  to  act  as  the
 3        broker's  agent  upon whom all judicial and other process
 4        or legal notices directed to the licensee may  be  served
 5        and  agreeing  to  abide by all of the provisions of this
 6        Act with respect to his or  her  real  estate  activities
 7        within  the  State  of  Illinois  and  submitting  to the
 8        jurisdiction of OBRE.
 9        The statements under  subdivision  (3)  of  this  Section
10    shall  be  in form and substance the same as those statements
11    required under Section 5-60 of this Act and shall operate  to
12    the same extent.
13        (e)  Upon  the  loss  of  a  managing  broker  who is not
14    replaced by the sponsoring broker or  in  the  event  of  the
15    death  or adjudicated disability of the sole proprietor of an
16    office, a written  request  for  authorization  allowing  the
17    continued  operation  of  the office may be submitted to OBRE
18    within 15 days  of  the  loss.   OBRE  may  issue  a  written
19    authorization allowing the continued operation, provided that
20    a licensed broker, or in the case of the death or adjudicated
21    disability  of  a  sole proprietor, the representative of the
22    estate, assumes responsibility, in writing, for the operation
23    of  the  office  and  agrees  to  personally  supervise   the
24    operation of the office.  No such written authorization shall
25    be  valid  for  more than 60 days unless extended by OBRE for
26    good cause shown and upon written request by  the  broker  or
27    representative.
28        Section  5-50.   Expiration  date  and  renewal period of
29    broker, salesperson, or  leasing  agent  license;  sponsoring
30    broker; register of licensees; pocket card.
31        (a)  The  expiration  date  and  renewal  period for each
32    license issued under this Act shall be set by  rule.   Except
33    as otherwise provided in Section 5-55 of this Act, the holder
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 1    of  a  license may renew the license within 90 days preceding
 2    the expiration date thereof by paying the fees  specified  by
 3    rule.   Upon written request from the sponsoring broker, OBRE
 4    shall  prepare and mail to the sponsoring broker a listing of
 5    licensees under this Act who, according  to  the  records  of
 6    OBRE,   are   sponsored   by  that  broker.   Every  licensee
 7    associated with or employed by  a  broker  whose  license  is
 8    revoked,   suspended,   terminated,   or   expired  shall  be
 9    considered as inoperative until such time as  the  sponsoring
10    broker's  license  is  reinstated or renewed, or the licensee
11    changes employment as set forth in subsection (c) of  Section
12    5-40 of this Act.
13        (b)  OBRE  shall establish and maintain a register of all
14    persons currently licensed by the State and shall  issue  and
15    prescribe  a form of pocket card.  Upon payment by a licensee
16    of the appropriate fee as prescribed by rule  for  engagement
17    in the activity for which the licensee is qualified and holds
18    a  license  for the current period, OBRE shall issue a pocket
19    card to the licensee.  The pocket card shall be  verification
20    that  the  required  fee for the current period has been paid
21    and shall indicate that the person named thereon is  licensed
22    for  the  current renewal period as a broker, salesperson, or
23    leasing agent as the case may  be.   The  pocket  card  shall
24    further  indicate that the person named thereon is authorized
25    by OBRE to engage in the licensed  activity  appropriate  for
26    his  or  her  status (broker, salesperson, or leasing agent).
27    Each licensee shall carry on his or her  person  his  or  her
28    pocket  card or, if such pocket card has not yet been issued,
29    a properly issued sponsor card when engaging in any  licensed
30    activity and shall display the same on demand.
31        Section  5-55.   Expiration  and  renewal  of  broker  or
32    salesperson license.
33        (a)  Any  broker  or salesperson whose license under this
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 1    Act has expired shall be eligible to renew the license for  a
 2    period of 2 years following the expiration date, provided the
 3    broker or salesperson pays the fees as prescribed by rule.  A
 4    broker or salesperson whose license has been expired for more
 5    than 2 years shall be required to meet the requirements for a
 6    new license.
 7        (b)  Notwithstanding  any other provisions of this Act to
 8    the contrary, any broker or salesperson whose  license  under
 9    this Act has expired is eligible to renew the license without
10    paying any lapsed renewal fees or reinstatement fee, provided
11    that the license expired while the broker or salesperson was:
12             (1)  on  active  duty  with  the United States Army,
13        United States Navy, United States  Marine  Corps,  United
14        States Air Force, United States Coast Guard, or the State
15        Militia called into the service or training of the United
16        States;
17             (2)  engaged  in  training  or  education  under the
18        supervision of the United States prior to induction  into
19        military service; or
20             (3)  serving  as  the Director of Real Estate in the
21        State of Illinois or as an employee of OBRE.
22        A broker or salesperson shall  be  eligible  to  renew  a
23    license  under the provisions of this Section for a period of
24    2 years following the termination of the service,  education,
25    or  training, provided that the termination was by other than
26    dishonorable  discharge  and  provided  that   the   licensee
27    furnishes  OBRE  an  affidavit  specifying that the broker or
28    salesperson  has  been  so  engaged  and  that  the  service,
29    education, or training has been so terminated.
30        Section  5-60.   Broker  licensed   in   another   state;
31    nonresident  salesperson;  reciprocal  agreements;  agent for
32    service of process.
33        (a)  A broker's license may be issued by OBRE to a broker
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 1    licensed under the  laws  of  another  state  of  the  United
 2    States, under the following conditions:
 3             (1)  the  broker  holds a broker's license in his or
 4        her state of domicile;
 5             (2)  the standards for that state for licensing as a
 6        broker are substantially equivalent to  or  greater  than
 7        the minimum standards in the State of Illinois;
 8             (3)  the  broker  has  been actively practicing as a
 9        broker in the broker's state of domicile for a period  of
10        not  less  than 2 years, immediately prior to the date of
11        application;
12             (4)  the broker  furnishes  OBRE  with  a  statement
13        under seal of the proper licensing authority of the state
14        in  which  the broker is licensed showing that the broker
15        has an active broker's license, that  the  broker  is  in
16        good standing, and that no complaints are pending against
17        the broker in that state; and
18             (5)  the  broker completes a course of education and
19        passes a test on Illinois specific real estate  brokerage
20        laws.
21        (b)  A  nonresident salesperson employed by or associated
22    with a nonresident broker holding a broker's license in  this
23    State  pursuant  to  this  Section  may, in the discretion of
24    OBRE, be issued a nonresident salesperson's license under the
25    nonresident broker provided all of the  following  conditions
26    are met:
27             (1)  the  salesperson maintains an active license in
28        the state in which he or she is domiciled;
29             (2)  the salesperson is domiciled in the same  state
30        as the broker with whom he or she is associated; and
31             (3)  the salesperson completes a course of education
32        and  passes  a  test  on  Illinois  specific  real estate
33        brokerage laws.
34        The nonresident  broker  with  whom  the  salesperson  is
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 1    associated  shall  comply with the provisions of this Act and
 2    issue the salesperson a sponsor card upon the  form  provided
 3    by OBRE.
 4        (c)  As  a  condition  precedent  to  the  issuance  of a
 5    license to a nonresident broker or salesperson, the broker or
 6    salesperson shall agree  in  writing  to  abide  by  all  the
 7    provisions of this Act with respect to his or her real estate
 8    activities  within  the  State  of Illinois and submit to the
 9    jurisdiction of OBRE as provided in this Act.  The  agreement
10    shall  be  filed  with  OBRE and shall remain in force for so
11    long as the nonresident broker or salesperson is licensed  by
12    this  State  and thereafter with respect to acts or omissions
13    committed while licensed as a broker or salesperson  in  this
14    State.
15        (d)  Prior   to  the  issuance  of  any  license  to  any
16    nonresident, verification of active licensure issued for  the
17    conduct  of  such  business  in any other state must be filed
18    with OBRE by the nonresident, and the same fees must be  paid
19    as  provided  in  this Act for the obtaining of a broker's or
20    salesperson's license in this State.
21        (e)  Licenses   previously   granted   under   reciprocal
22    agreements shall remain in force, unless suspended,  revoked,
23    or terminated by OBRE for any reason provided for suspension,
24    revocation,  or termination of a resident licensee's license.
25    Licenses granted under reciprocal agreements may  be  renewed
26    in the same manner as a resident's license.
27        (f)  Prior  to the issuance of a license to a nonresident
28    broker or salesperson, the broker or salesperson  shall  file
29    with   OBRE  a  designation  in  writing  that  appoints  the
30    Commissioner to act  as  his  or  her  agent  upon  whom  all
31    judicial  and  other process or legal notices directed to the
32    broker or salesperson may be served.  Service upon the  agent
33    so  designated  shall  be equivalent to personal service upon
34    the licensee.  Copies of the appointment,  certified  by  the
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 1    Commissioner, shall be deemed sufficient evidence thereof and
 2    shall  be admitted in evidence with the same force and effect
 3    as the original thereof might be admitted.   In  the  written
 4    designation,  the  broker or salesperson shall agree that any
 5    lawful process against the licensee that is served  upon  the
 6    agent  shall  be  of  the same legal force and validity as if
 7    served  upon  the  licensee  and  that  the  authority  shall
 8    continue  in  force  so  long  as   any   liability   remains
 9    outstanding  in  this State.  Upon the receipt of any process
10    or notice, the Commissioner shall forthwith mail  a  copy  of
11    the same by certified mail to the last known business address
12    of the licensee.
13        (g)  Any  person  holding  a  valid  license  under  this
14    Section  shall  be  eligible to obtain a resident broker's or
15    salesperson's license without examination should that  person
16    change  their  state  of domicile to Illinois and that person
17    otherwise meets the qualifications or  licensure  under  this
18    Act.
19        Section  5-65.  Fees. OBRE shall provide by rule for fees
20    to  be  paid  by  applicants  and  licensees  to  cover   the
21    reasonable  costs  of OBRE in administering and enforcing the
22    provisions of this Act.  OBRE may also provide  by  rule  for
23    general fees to cover the reasonable expenses of carrying out
24    other functions and responsibilities under this Act.
25        Section  5-70.   Continuing education requirement; broker
26    or salesperson.
27        (a)  Each person who applies for renewal of  his  or  her
28    license  as  a  real estate broker or real estate salesperson
29    must successfully complete real estate  continuing  education
30    courses  approved  by  the  Advisory Council at the rate of 6
31    hours per year or its equivalent.  No license may be  renewed
32    except upon the successful completion of the required courses
HB2688 Engrossed            -27-               LRB9009844LDpk
 1    or  their  equivalent  or upon a waiver of those requirements
 2    for good cause shown as determined by the  Commissioner  with
 3    the  recommendation of the Advisory Council. The requirements
 4    of  this  Article  are  applicable   to   all   brokers   and
 5    salespersons  except  those  brokers  and  salespersons  who,
 6    during the pre-renewal period:
 7             (1)  serve  in  the  armed  services  of  the United
 8        States;
 9             (2)  serve as an elected State or federal official;
10             (3)  serve as a full-time employee of OBRE; or
11             (4)  are  admitted  to  practice  law  pursuant   to
12        Illinois Supreme Court rule.
13        (b)  A  person who is issued an initial license as a real
14    estate salesperson less than one year prior to the expiration
15    date of that  license  shall  not  be  required  to  complete
16    continuing  education  as  a condition of license renewal.  A
17    person who is issued an initial  license  as  a  real  estate
18    broker  less  than  one  year prior to the expiration date of
19    that license and who has not been licensed as a  real  estate
20    salesperson  during  the  pre-renewal  period  shall  not  be
21    required  to  complete continuing education as a condition of
22    license renewal.
23        (c)  The    continuing    education    requirement    for
24    salespersons and brokers shall consist of a  core  curriculum
25    and an elective curriculum, to be established by the Advisory
26    Council.  In meeting the continuing education requirements of
27    this Act, at least 3 hours per year or their equivalent shall
28    be  required  to  be  completed  in  the  core curriculum. In
29    establishing the core curriculum, the Advisory Council  shall
30    consider  subjects  that  will  educate  licensees  on recent
31    changes in applicable laws  and  new  laws  and  refresh  the
32    licensee on areas of the license law and OBRE policy that the
33    Advisory  Council deems appropriate, and any other areas that
34    the Advisory Council deems timely and applicable in order  to
HB2688 Engrossed            -28-               LRB9009844LDpk
 1    prevent  violations of this Act and to protect the public. In
 2    establishing the elective curriculum,  the  Advisory  Council
 3    shall consider subjects that cover the various aspects of the
 4    practice  of  real estate that are covered under the scope of
 5    this Act.  However, the elective curriculum shall not include
 6    any offerings referred to in Section 5-85 of this Act.
 7        (d)  The subject areas of  continuing  education  courses
 8    approved   by   the  Advisory  Council  may  include  without
 9    limitation the following:
10             (1)  license law and escrow;
11             (2)  anti-trust;
12             (3)  fair housing;
13             (4)  agency;
14             (5)  appraisal;
15             (6)  property management;
16             (7)  residential brokerage;
17             (8)  farm property management;
18             (9)  rights  and  duties  of  sellers,  buyers,  and
19        brokers;
20             (10)  commercial brokerage and leasing; and
21             (11)  real estate financing.
22        (e)  In lieu  of  credit  for  those  courses  listed  in
23    subsection  (d)  of  this  Section,  credit may be earned for
24    serving as a licensed instructor in  an  approved  course  of
25    continuing  education.   The  amount  of  credit  earned  for
26    teaching a course shall be the amount of continuing education
27    credit  for which the course is approved for licensees taking
28    the course.
29        (f)  Credit hours may be earned for  self-study  programs
30    approved by the Advisory Council.
31        (g)  A  broker  or  salesperson  may  earn  credit  for a
32    specific continuing education course  only  once  during  the
33    prerenewal period.
34        (h)  No  more than 6 hours of continuing education credit
HB2688 Engrossed            -29-               LRB9009844LDpk
 1    may be earned in one calendar day.
 2        Section 5-75.  Out-of-state continuing education  credit.
 3    If  a renewal applicant has earned continuing education hours
 4    in another state or territory for which he or she is claiming
 5    credit toward  full  compliance  in  Illinois,  the  Advisory
 6    Council  shall  review,  approve,  or  disapprove those hours
 7    based upon whether the course is one that would  be  approved
 8    under  Section 5-70 of this Act, whether the course meets the
 9    basic requirements for continuing education under  this  Act,
10    and any other criteria that is provided by statute or rule.
11        Section  5-80.   Evidence  of  compliance with continuing
12    education requirements.
13        (a)  Each renewal applicant shall certify, on his or  her
14    renewal   application,   full   compliance   with  continuing
15    education  requirements  set  forth  in  Section  5-70.   The
16    continuing education school shall retain and submit  to  OBRE
17    after  the  completion  of  each  course  evidence  of  those
18    successfully completing the course as provided by rule.
19        (b)  OBRE  may  require additional evidence demonstrating
20    compliance with the continuing education  requirements.   The
21    renewal  applicant  shall  retain and produce the evidence of
22    compliance upon request of OBRE.
23        Section 5-85.  Offerings not meeting continuing education
24    requirements.  The  following  offerings  do  not  meet   the
25    continuing education requirements:
26             (1)  Examination  preparation  offerings,  except as
27        provided in Section 5-70 of this Act.
28             (2)  Offerings in  mechanical  office  and  business
29        skills such as typing, speed reading, memory improvement,
30        advertising, or psychology of sales.
31             (3)  Sales  promotion  or  other  meetings  held  in
HB2688 Engrossed            -30-               LRB9009844LDpk
 1        conjunction  with the general business of the attendee or
 2        his or her employer.
 3             (4)  Meetings that are a  normal  part  of  in-house
 4        staff or employee training.
 5        The  offerings  listed  in  this Section do not limit the
 6    Advisory Council's authority to disapprove  any  course  that
 7    fails  to  meet  the  standards  of  this  Article 5 or rules
 8    adopted by OBRE.
 9          ARTICLE 10.  COMPENSATION AND BUSINESS PRACTICES
10        Section 10-5.  Payment of compensation.
11        (a)  No licensee shall pay  compensation  directly  to  a
12    licensee  sponsored  by another broker for the performance of
13    licensed activities.  No licensee sponsored by a  broker  may
14    pay  compensation  to  any  licensee  other  than  his or her
15    sponsoring broker for the performance of licensed  activities
16    unless the licensee paying the compensation is a principal to
17    the  transaction.    However, a non-sponsoring broker may pay
18    compensation directly to a licensee sponsored by another or a
19    person who is not sponsored by a broker if the  payments  are
20    made  pursuant  to  terms of an employment agreement that was
21    previously in place between a licensee and the non-sponsoring
22    broker, and the payments are for licensed activity  performed
23    by   that  person  while  previously  sponsored  by  the  now
24    non-sponsoring broker.
25        (b)  No licensee  sponsored  by  a  broker  shall  accept
26    compensation for the performance of activities under this Act
27    except  from  the  broker  by whom the licensee is sponsored,
28    except as provided in this Section.
29        (c)  Any person that is a licensed personal assistant for
30    another licensee may  only  be  compensated  in  his  or  her
31    capacity as a personal assistant by the sponsoring broker for
32    that licensed personal assistant.
HB2688 Engrossed            -31-               LRB9009844LDpk
 1        (d)  One  sponsoring broker may pay compensation directly
 2    to another sponsoring broker for the performance of  licensed
 3    activities.
 4        Section 10-10.  Disclosure of compensation.
 5        (a)  A  licensee must disclose to a client the sponsoring
 6    broker's compensation and policy with regard  to  cooperating
 7    with brokers who represent other parties in a transaction.
 8        (b)  A  licensee must disclose to a client all sources of
 9    compensation related  to  the  transaction  received  by  the
10    licensee from a third party.
11        (c)  If  in  any  one  transaction  a  sponsoring  broker
12    receives  compensation  from  both  the  buyer  and seller or
13    lessee and lessor of real estate, the sponsoring broker shall
14    disclose  in  writing  to  a  client  the   fact   that   the
15    compensation is being paid by both buyer and seller or lessee
16    and lessor.
17        (d)  Nothing  in  the  Act shall prohibit the cooperation
18    with or a payment of compensation to a person  not  domiciled
19    in  this State who is licensed as a real estate broker in his
20    or her state of domicile.
21        Section 10-15.  No compensation to persons  in  violation
22    of Act; compensation to unlicensed persons; consumer.
23        (a)  No compensation may be paid to any unlicensed person
24    in  exchange for the person performing licensed activities in
25    violation of this Act.
26        (b)  No action or suit shall be instituted, nor  recovery
27    therein  be  had,  in  any court of this State by any person,
28    partnership,  registered   limited   liability   partnership,
29    limited  liability  company,  or corporation for compensation
30    for  any  act  done  or  service  performed,  the  doing   or
31    performing  of  which is prohibited by this Act to other than
32    licensed brokers, salespersons, or leasing agents unless  the
HB2688 Engrossed            -32-               LRB9009844LDpk
 1    person,    partnership,    registered    limited    liability
 2    partnership,  limited  liability  company, or corporation was
 3    duly licensed hereunder as a broker, salesperson, or  leasing
 4    agent  under  this Act at the time that any such act was done
 5    or service performed that would  give  rise  to  a  cause  of
 6    action for compensation.
 7        (c)  A licensee may offer compensation, including prizes,
 8    merchandise,   services,   rebates,   discounts,   or   other
 9    consideration  to  an  unlicensed  person who is a party to a
10    contract to buy or sell real  estate  or  is  a  party  to  a
11    contract  for  the lease of real estate, so long as the offer
12    complies  with  the  provisions  of   subdivision   (26)   of
13    subsection (h) of Section 20-20 of this Act.
14        (d)  A  licensee  may  offer cash, gifts, prizes, awards,
15    coupons, merchandise, rebates or chances to  win  a  game  of
16    chance,  if  not prohibited by any other law or statute, to a
17    consumer as  an  inducement  to  that  consumer  to  use  the
18    services of the licensee even if the licensee and consumer do
19    not  ultimately  enter  into  a broker-client relationship so
20    long as the offer complies with the provisions of subdivision
21    (26) of subsection (h) of Section 20-20 of this Act.
22        Section 10-20.  Sponsoring broker; employment agreement.
23        (a)  A licensee may perform activities as a licensee only
24    for his or her sponsoring broker.  A licensee must have  only
25    one sponsoring broker at any one time.
26        (b)  Every   broker  who  employs  licensees  or  has  an
27    independent contractor relationship  with  a  licensee  shall
28    have  a written employment agreement with each such licensee.
29    The broker having this written employment agreement with  the
30    licensee must be that licensee's sponsoring broker.
31        (c)  Every   sponsoring   broker   must  have  a  written
32    employment agreement with each licensee the broker  sponsors.
33    The  agreement  shall  address  the employment or independent
HB2688 Engrossed            -33-               LRB9009844LDpk
 1    contractor relationship terms, including  without  limitation
 2    supervision, duties, compensation, and termination.
 3        (d)  Every   sponsoring   broker   must  have  a  written
 4    employment agreement with each  licensed  personal  assistant
 5    who  assists  a  licensee sponsored by the sponsoring broker.
 6    This requirement applies to all licensed personal  assistants
 7    whether  or  not  they  perform  licensed activities in their
 8    capacity as a personal assistant. The agreement shall address
 9    the employment or independent contractor relationship  terms,
10    including    without    limitation    supervision,    duties,
11    compensation, and termination.
12        (e)  Notwithstanding  the  fact  that a sponsoring broker
13    has an employment agreement with  a  licensee,  a  sponsoring
14    broker  may pay compensation directly to a corporation solely
15    owned by that licensee that has been formed for  the  purpose
16    of   receiving  compensation  earned  by  the  licensee.    A
17    corporation formed for the  purpose  herein  stated  in  this
18    subsection  (e)  shall  not  be required to be licensed under
19    this Act so long as the person who is the sole shareholder of
20    the corporation is licensed.
21        Section 10-25.  Expiration  of  brokerage  agreement.  No
22    licensee  shall  obtain  any written brokerage agreement that
23    does not provide for automatic expiration within  a  definite
24    period  of  time.   No  notice  of  termination  at the final
25    expiration thereof shall be required.  Any written  brokerage
26    agreement not containing a provision for automatic expiration
27    shall  be void.  When the license of any sponsoring broker is
28    suspended or  revoked,   any  brokerage  agreement  with  the
29    sponsoring   broker  shall  be  deemed  to  expire  upon  the
30    effective date of the suspension or revocation.
31        Section 10-30.  Advertising.
32        (a)  No  advertising  shall  be  fraudulent,   deceptive,
HB2688 Engrossed            -34-               LRB9009844LDpk
 1    inherently   misleading,   or  proven  to  be  misleading  in
 2    practice.  It shall be considered  misleading  or  untruthful
 3    if, when taken as a whole, there is a distinct and reasonable
 4    possibility that it will be misunderstood or will deceive the
 5    ordinary   purchaser,   seller,  lessee,  lessor,  or  owner.
 6    Advertising  shall  contain  all  information  necessary   to
 7    communicate  the  information contained therein to the public
 8    in a direct and readily comprehensible manner.
 9        (b)  No blind advertisements may be used by any  licensee
10    except as provided for in this Section.
11        (c)  A  licensee  shall  disclose,  in  writing,  to  all
12    parties  in a transaction his or her status as a licensee and
13    any and all interest the licensee has or may have in the real
14    estate constituting the subject matter thereof,  directly  or
15    indirectly, according to the following guidelines:
16             (1)  On    broker    yard   signs   or   in   broker
17        advertisements, no disclosure of ownership is  necessary.
18        However, the ownership shall be indicated on any property
19        data  form  and  disclosed  to  persons responding to any
20        advertisement or any sign.  The term  "broker  owned"  or
21        "agent owned" is sufficient disclosure.
22             (2)  A  sponsored or inoperative licensee selling or
23        leasing  property,  owned  solely  by  the  sponsored  or
24        inoperative   licensee,   without   utilizing   brokerage
25        services  of  their  sponsoring  broker  or   any   other
26        licensee, may advertise "By Owner".  For purposes of this
27        Section,  property  is  "solely  owned" by a sponsored or
28        inoperative  licensee  if  he  or  she  (i)  has  a  100%
29        ownership interest alone, (ii) has ownership as  a  joint
30        tenant  or  tenant by the entirety, or (iii) holds a 100%
31        beneficial  interest  in  a  land  trust.   Sponsored  or
32        inoperative licensees selling or leasing "By Owner" shall
33        comply with the following if advertising by owner:
34                  (A)  On "By Owner" yard signs, the sponsored or
HB2688 Engrossed            -35-               LRB9009844LDpk
 1             inoperative licensee shall indicate  "broker  owned"
 2             or "agent owned."  "By Owner" advertisements used in
 3             any  medium  of  advertising  shall include the term
 4             "broker owned" or "agent owned."
 5                  (B)  If a  sponsored  or  inoperative  licensee
 6             runs  advertisements,  for the purpose of purchasing
 7             or leasing real estate, he or she shall disclose  in
 8             the advertisements his or her status as a licensee.
 9                  (C)  A  sponsored or inoperative licensee shall
10             not  use  the  sponsoring  broker's  name   or   the
11             sponsoring  broker's company name in connection with
12             the sale, lease, or advertisement  of  the  property
13             nor  utilize  the  sponsoring  broker's or company's
14             name  in  connection  with  the  sale,   lease,   or
15             advertising  of  the  property in a manner likely to
16             create confusion among the public as to  whether  or
17             not  the services of a real estate company are being
18             utilized or whether or not a real estate company has
19             an ownership interest in the property.
20        (d)  A sponsored licensee may not advertise under his  or
21    her  own  name.    Advertising  shall  be  under  the  direct
22    supervision  of  the sponsoring or managing broker and in the
23    sponsoring broker's business name, which in  the  case  of  a
24    franchise  shall include the franchise affiliation as well as
25    the name of the individual firm.   This  provision  does  not
26    apply under the following circumstances:
27             (1)  When   a   licensee  enters  into  a  brokerage
28        agreement relating to his or her own real estate, or real
29        estate in which he or she has an ownership interest, with
30        another licensed broker; or
31             (2)  When a licensee is selling or  leasing  his  or
32        her  own real estate or buying or leasing real estate for
33        himself  or  herself,  after  providing  the  appropriate
34        written disclosure of his or her  ownership  interest  as
HB2688 Engrossed            -36-               LRB9009844LDpk
 1        required  in  paragraph  (2)  of  subsection  (c) of this
 2        Section.
 3        (e)  No licensee shall list his or  her  name  under  the
 4    heading  or title "Real Estate" in the telephone directory or
 5    otherwise advertise in his or her own  name  to  the  general
 6    public through any medium of advertising as being in the real
 7    estate   business  without  listing  his  or  her  sponsoring
 8    broker's business name.
 9        (f)  The sponsoring broker's business name and  the  name
10    of  the licensee must appear in all advertisements, including
11    business cards.  Nothing in this Act shall  be  construed  to
12    require  specific print size as between the broker's business
13    name and the name of the licensee.
14                  ARTICLE 15.  AGENCY RELATIONSHIPS
15        Section 15-5.  Legislative intent.
16        (a)  The General Assembly finds that application  of  the
17    common  law  of agency to the relationships among real estate
18    brokers  and  salespersons  and  consumers  of  real   estate
19    brokerage  services  has  resulted  in  misunderstandings and
20    consequences that have been contrary to the best interests of
21    the public.  The General Assembly further finds that the real
22    estate brokerage industry has a significant impact  upon  the
23    economy  of  the State of Illinois and that it is in the best
24    interest  of  the  public  to  provide  codification  of  the
25    relationships between real estate  brokers  and  salespersons
26    and  consumers  of real estate brokerage services in order to
27    prevent detrimental misunderstandings and  misinterpretations
28    of  the  relationships by consumers, real estate brokers, and
29    salespersons and thus promote and provide  stability  in  the
30    real estate market.  This Article 15 is enacted to govern the
31    relationships  between  consumers  of  real  estate brokerage
32    services and real estate  brokers  and  salespersons  to  the
HB2688 Engrossed            -37-               LRB9009844LDpk
 1    extent  not  governed by individual written agreements.  This
 2    Article 15  applies  to  the  exclusion  of  the  common  law
 3    concepts  of principal and agent and to the fiduciary duties,
 4    which have been applied to real estate brokers, salespersons,
 5    and real estate brokerage services.
 6        (b)  The General Assembly further finds that this Article
 7    15  is  not  intended  to  prescribe  or  affect  contractual
 8    relationships between real estate brokers  and  the  broker's
 9    affiliated licensees.
10        (c)  This  Article  15  may  serve as a basis for private
11    rights of action and defenses by sellers, buyers,  landlords,
12    tenants,  real  estate brokers, and real estate salespersons.
13    The private rights of action, however, do not extend  to  the
14    provisions of any other Articles of this Act.
15        Section   15-10.   Relationships  between  licensees  and
16    consumers. Licensees shall be considered to  be  representing
17    the  consumer they are working with as a designated agent for
18    the consumer unless:
19             (1)  there  is  a  written  agreement  between   the
20        sponsoring  broker  and the consumer providing that there
21        is a different relationship; or
22             (2)  the licensee  is  performing  only  ministerial
23        acts on behalf of the consumer.
24        Section 15-15.  Duties of licensees representing clients.
25        (a)  A licensee representing a client shall:
26             (1)  Perform  the  terms  of the brokerage agreement
27        between a broker and the client.
28             (2)  Promote the best interest of the client by:
29                  (A)  Seeking a transaction  at  the  price  and
30             terms  stated  in  the  brokerage  agreement or at a
31             price and terms otherwise acceptable to the client.
32                  (B)  Timely presenting all offers to  and  from
HB2688 Engrossed            -38-               LRB9009844LDpk
 1             the client, unless the client has waived this duty.
 2                  (C)  Disclosing  to  the  client material facts
 3             concerning the transaction of which the licensee has
 4             actual  knowledge,  unless   that   information   is
 5             confidential  information.   Material  facts  do not
 6             include physical  conditions,  fact  situations,  or
 7             occurrences  located  on real estate that is not the
 8             subject of the transaction.
 9                  (D)  Timely  accounting  for  all   money   and
10             property received in which the client has, may have,
11             or should have had an interest.
12                  (E)  Obeying  specific directions of the client
13             that  are  not  otherwise  contrary  to   applicable
14             statutes, ordinances, or rules.
15                  (F)  Acting   in   a   manner  consistent  with
16             promoting the client's best interests as opposed  to
17             a licensee's or any other person's self-interest.
18             (3)  Exercise  reasonable  skill  and  care  in  the
19        performance of brokerage services.
20             (4)  Keep  confidential all confidential information
21        received from the client.
22             (5)  Comply with all requirements of  this  Act  and
23        all   applicable   statutes  and  regulations,  including
24        without  limitation  fair  housing   and   civil   rights
25        statutes.
26        (b)  A  licensee  representing a client does not breach a
27    duty or obligation  to  the  client  by  showing  alternative
28    properties  to  prospective  buyers  or tenants or by showing
29    properties  in  which  the  client  is  interested  to  other
30    prospective buyers or tenants.
31        (c)  A licensee representing a  buyer  or  tenant  client
32    will not be presumed to have breached a duty or obligation to
33    that  client  by  working on the basis that the licensee will
34    receive a higher fee or compensation based on higher  selling
HB2688 Engrossed            -39-               LRB9009844LDpk
 1    price or lease cost.
 2        (d)  A  licensee  shall  not  be  liable  to a client for
 3    providing false  information  to  the  client  if  the  false
 4    information was provided to the licensee by a customer unless
 5    the  licensee  knew  or should have known the information was
 6    false.
 7        (e)  Nothing  in  the  Section  shall  be  construed   as
 8    changing  a  licensee's duty under common law as to negligent
 9    or fraudulent misrepresentation of material information.
10        Section  15-20.   Failure  to  disclose  information  not
11    affecting physical condition. No cause of action shall  arise
12    against  a  licensee  for  the  failure  to  disclose that an
13    occupant  of  that  property   was   afflicted   with   Human
14    Immunodeficiency  Virus  (HIV) or any other medical condition
15    or that the property was the site of  an  act  or  occurrence
16    that  had no effect on the physical condition of the property
17    or its environment or the structures located thereon.
18        Section 15-25.  Licensee's relationship with customers.
19        (a)  Licensees shall treat  all  customers  honestly  and
20    shall   not   negligently   or   knowingly  give  them  false
21    information.  A licensee engaged by  a  seller  client  shall
22    timely  disclose  to customers who are prospective buyers all
23    latent material adverse  facts  pertaining  to  the  physical
24    condition  of  the  property  that  are actually known by the
25    licensee and that could not be  discovered  by  a  reasonably
26    diligent  inspection  of  the  property  by  the customer.  A
27    licensee shall not be liable  to  a  customer  for  providing
28    false  information  to  the customer if the false information
29    was provided to the licensee by the licensee's client and the
30    licensee did not have actual knowledge that  the  information
31    was  false.   No cause of action shall arise on behalf of any
32    person  against  a  licensee  for  revealing  information  in
HB2688 Engrossed            -40-               LRB9009844LDpk
 1    compliance with this Section.
 2        (b)  A licensee representing a client in  a  real  estate
 3    transaction   may   provide   assistance  to  a  customer  by
 4    performing ministerial acts.   Performing  those  ministerial
 5    acts  shall  not  be construed in a manner that would violate
 6    the brokerage agreement with the client, and performing those
 7    ministerial acts for the customer shall not be construed in a
 8    manner as to form a brokerage agreement with the customer.
 9        Section 15-30.  Duties  after  termination  of  brokerage
10    agreement.  Except  as may be provided in a written agreement
11    between the broker  and  the  client,  neither  a  sponsoring
12    broker nor any licensee affiliated with the sponsoring broker
13    owes  any  further  duties  to  the client after termination,
14    expiration, or completion of  performance  of  the  brokerage
15    agreement, except:
16             (1)  to account for all moneys and property relating
17        to the transaction; and
18             (2)  to    keep    confidential   all   confidential
19        information received during the course of  the  brokerage
20        agreement.
21        Section 15-35.  Agency relationship disclosure.
22        (a)  A  consumer  shall  be  advised  of the following no
23    later than entering  into  a  brokerage  agreement  with  the
24    sponsoring broker:
25             (1)  That  a  designated agency relationship exists,
26        unless there is written agreement between the  sponsoring
27        broker   and  the  consumer  providing  for  a  different
28        brokerage relationship.
29             (2)  The name or names  of  his  or  her  designated
30        agent or agents in writing.
31             (3)  The sponsoring broker's compensation and policy
32        with  regard  to  cooperating  with brokers who represent
HB2688 Engrossed            -41-               LRB9009844LDpk
 1        other parties in a transaction.
 2        (b)  A licensee shall disclose in writing to  a  customer
 3    that  the licensee is not acting as the agent of the customer
 4    at a time intended  to  prevent  disclosure  of  confidential
 5    information  from  a  customer to a licensee, but in no event
 6    later than the preparation of an offer to purchase  or  lease
 7    real  property.   This  subsection  (b)  does  not  apply  to
 8    residential  lease or rental transactions unless the lease or
 9    rental agreement includes an option to purchase real estate.
10        Section 15-40.  Compensation does not  determine  agency.
11    Compensation  does  not  determine  agency relationship.  The
12    payment or promise of payment of compensation to  a  licensee
13    is  not  determinative  of whether an agency relationship has
14    been created between any licensee and a consumer.
15        Section 15-45.  Dual agency.
16        (a)  A licensee may act as a dual  agent  only  with  the
17    informed  written  consent  of all clients.  Informed written
18    consent shall be presumed to have been given  by  any  client
19    who signs a document that includes the following:
20             "The undersigned (insert name(s)), ("Licensee"), may
21        undertake  a  dual  representation  (represent  both  the
22        seller  or landlord and the buyer or tenant) for the sale
23        or lease of property.  The undersigned  acknowledge  they
24        were   informed  of  the  possibility  of  this  type  of
25        representation.  Before signing this document please read
26        the following: Representing more  than  one  party  to  a
27        transaction  presents  a  conflict of interest since both
28        clients may rely upon Licensee's advice and the  client's
29        respective  interests  may  be  adverse  to  each  other.
30        Licensee will undertake this representation only with the
31        written  consent  of  ALL clients in the transaction. Any
32        agreement between the clients  as  to  a  final  contract
HB2688 Engrossed            -42-               LRB9009844LDpk
 1        price and other terms is a result of negotiations between
 2        the  clients  acting  in  their own best interests and on
 3        their own behalf.   You  acknowledge  that  Licensee  has
 4        explained   the   implications  of  dual  representation,
 5        including the risks involved,  and  understand  that  you
 6        have  been  advised  to seek independent advice from your
 7        advisors or attorneys before  signing  any  documents  in
 8        this transaction.
 9                 WHAT A LICENSEE CAN DO FOR CLIENTS
10                     WHEN ACTING AS A DUAL AGENT
11        1.  Treat all clients honestly.
12        2.  Provide  information  about the property to the buyer
13        or tenant.
14        3.  Disclose all latent material defects in the  property
15        that are known to the Licensee.
16        4.  Disclose  financial  qualification  of  the  buyer or
17        tenant to the seller or landlord.
18        5.  Explain real estate terms.
19        6.  Help the buyer or  tenant  to  arrange  for  property
20        inspections.
21        7.  Explain closing costs and procedures.
22        8.  Help the buyer compare financing alternatives.
23        9.  Provide  information about comparable properties that
24        have sold so both clients may make educated decisions  on
25        what price to accept or offer.
26            WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
27                       ACTING AS A DUAL AGENT
28        1.  Confidential information that Licensee may know about
29        a client, without that client's permission.
30        2.  The price the seller or landlord will take other than
31        the  listing  price  without  permission of the seller or
32        landlord.
33        3.  The price the buyer  or  tenant  is  willing  to  pay
34        without permission of the buyer or tenant.
HB2688 Engrossed            -43-               LRB9009844LDpk
 1        4.  A  recommended or suggested price the buyer or tenant
 2        should offer.
 3        5.  A  recommended  or  suggested  price  the  seller  or
 4        landlord should counter with or accept.
 5             If  either  client  is   uncomfortable   with   this
 6        disclosure  and  dual representation, please let Licensee
 7        know. You are not required to sign this  document  unless
 8        you  want to allow Licensee to proceed as a Dual Agent in
 9        this transaction. By signing below, you acknowledge  that
10        you  have  read  and understand this form and voluntarily
11        consent to Licensee acting as a Dual Agent (that  is,  to
12        represent  BOTH  the  seller or landlord and the buyer or
13        tenant) should that become necessary.".
14        (b)  The dual agency  disclosure  form  provided  for  in
15    subsection  (a)  of  this  Section  must  be  presented  by a
16    licensee, who offers dual representation, to  the  client  at
17    the  time  the brokerage agreement is entered into and may be
18    signed by the client at that time or at any time  before  the
19    licensee acts as a dual agent as to the client.
20        (c)  A  licensee  acting  in  a dual agency capacity in a
21    transaction must  obtain  a  written  confirmation  from  the
22    licensee's  clients  of their consent for the licensee to act
23    as a dual agent in the transaction. This confirmation  should
24    be  obtained  at the time the clients are executing any offer
25    or contract to purchase or lease in a  transaction  in  which
26    the  licensee  is  acting as a dual agent.  This confirmation
27    may be included in another document, such as  a  contract  to
28    purchase,  in  which  case  the client must not only sign the
29    document but also initial the  confirmation  of  dual  agency
30    provision.   That  confirmation must state, at a minimum, the
31    following:
32             "The undersigned confirm that they  have  previously
33        consented  to (insert name(s)), ("Licensee"), acting as a
34        Dual Agent  in  providing  brokerage  services  on  their
HB2688 Engrossed            -44-               LRB9009844LDpk
 1        behalf  and  specifically consent to Licensee acting as a
 2        Dual Agent in regard to the transaction  referred  to  in
 3        this document.".
 4        (d)  No  cause  of  action  shall  arise on behalf of any
 5    person against a dual agent for making disclosures allowed or
 6    required by  this  Article,  and  the  dual  agent  does  not
 7    terminate  any  agency  relationship by making the allowed or
 8    required disclosures.
 9        (e)  In the case of dual  agency,  each  client  and  the
10    licensee  possess  only  actual  knowledge  and  information.
11    There  shall  be  no  imputation  of knowledge or information
12    among  or  between  clients,  brokers,  or  their  affiliated
13    licensees.
14        (f)  In any transaction, a licensee may without liability
15    withdraw from representing a client who has not consented  to
16    a  disclosed dual agency.  The withdrawal shall not prejudice
17    the ability of the licensee  to  continue  to  represent  the
18    other  client  in  the transaction or limit the licensee from
19    representing  the  client  in  other  transactions.   When  a
20    withdrawal as contemplated in this subsection (f) occurs, the
21    licensee shall not receive a referral  fee  for  referring  a
22    client  to another licensee unless written disclosure is made
23    to both the withdrawing client and the client that  continues
24    to be represented by the licensee.
25        Section 15-50.  Designated agency.
26        (a)  A  sponsoring broker entering into an agreement with
27    any person for the listing of property or for the purpose  of
28    representing  any  person in the buying, selling, exchanging,
29    renting, or leasing of real estate may specifically designate
30    those licensees employed by or affiliated with the sponsoring
31    broker who will be acting as legal agents of that  person  to
32    the   exclusion   of  all  other  licensees  employed  by  or
33    affiliated with the sponsoring broker.  A  sponsoring  broker
HB2688 Engrossed            -45-               LRB9009844LDpk
 1    entering  into  an  agreement  under  the  provisions of this
 2    Section shall not be considered to be acting  for  more  than
 3    one  party  in  a  transaction  if the licensees specifically
 4    designated as legal agents of a person are  not  representing
 5    more than one party in a transaction.
 6        (b)  A sponsoring broker designating affiliated licensees
 7    to act as agents of clients shall take ordinary and necessary
 8    care  to  protect  confidential  information  disclosed  by a
 9    client to his or her designated agent.
10        (c)  A designated  agent  may  disclose  to  his  or  her
11    sponsoring  broker  or  persons  specified  by the sponsoring
12    broker confidential information of a client for  the  purpose
13    of seeking advice or assistance for the benefit of the client
14    in   regard   to   a   possible  transaction.    Confidential
15    information shall not be disclosed by the  sponsoring  broker
16    or  other  specified  representative of the sponsoring broker
17    unless  otherwise  required  by  this  Act  or  requested  or
18    permitted  by  the  client  who  originally   disclosed   the
19    confidential information.
20        Section  15-55.  No subagency. A broker is not considered
21    to be a subagent of a client  of  another  broker  solely  by
22    reason of membership or other affiliation by the brokers in a
23    multiple listing service or other similar information source,
24    and  an offer of subagency may not be made through a multiple
25    listing service or other similar information source.
26        Section 15-60.  Vicarious liability. A consumer shall not
27    be vicariously liable for the acts or omissions of a licensee
28    in providing licensed activities for  or  on  behalf  of  the
29    consumer.
30        Section 15-65.  Regulatory enforcement. Nothing contained
31    in  this  Article  limits OBRE in its regulation of licensees
HB2688 Engrossed            -46-               LRB9009844LDpk
 1    under other Articles of this Act and  the  substantive  rules
 2    adopted  by  OBRE.   OBRE,  with  the advice of the Board, is
 3    authorized to promulgate any rules that may be necessary  for
 4    the implementation and enforcement of this Article 15.
 5        Section 15-70.  Actions for damages.
 6        (a)  In  any  action  brought  under this Article 15, the
 7    court may, in its discretion, award only actual  damages  and
 8    court costs or grant injunctive relief, when appropriate.
 9        (b)  Any  action  under  this Article 15 shall be forever
10    barred unless commenced within  one  year  after  the  person
11    bringing  the  action knew or should reasonably have known of
12    such act or omission.   In  no  event  shall  the  action  be
13    brought  more than 4 years after the date on which the act or
14    omission occurred.  If  the  person  entitled  to  bring  the
15    action  is  under the age of 18 or under legal disability the
16    period of limitations  shall  not  begin  to  run  until  the
17    disability is removed.
18                 ARTICLE 20. DISCIPLINARY PROVISIONS
19        Section 20-5.  Index of decisions. OBRE shall maintain an
20    index  of formal decisions regarding the issuance, refusal to
21    issue, renewal, refusal to renew, revocation, and  suspension
22    of  licenses  and  probationary  or other disciplinary action
23    taken under this Act on or after July 1, 1999.  The decisions
24    shall be indexed according to the Sections  of  statutes  and
25    the  administrative rules, if any, that are the basis for the
26    decision.  The index shall be available to the public  during
27    regular business hours.
28        Section 20-10.  Unlicensed practice; civil penalty.
29        (a)  Any   person  who  practices,  offers  to  practice,
30    attempts to practice, or holds oneself out to practice  as  a
HB2688 Engrossed            -47-               LRB9009844LDpk
 1    real estate broker, real estate salesperson, or leasing agent
 2    without  being  licensed under this Act shall, in addition to
 3    any other penalty provided by law, pay a civil fine  to  OBRE
 4    in  an  amount  not  to  exceed  $25,000  for each offense as
 5    determined by OBRE.  The civil fine shall be assessed by OBRE
 6    after a hearing is held in accordance with the provisions set
 7    forth in this Act regarding the provision of  a  hearing  for
 8    the discipline of a license.
 9        (b)  OBRE  has the authority and power to investigate any
10    and all unlicensed activity.
11        (c)  The civil fine shall be paid within  60  days  after
12    the effective date of the order imposing the civil fine.  The
13    order  shall  constitute  a  judgement  and  may be filed and
14    execution had thereon in the same manner from  any  court  of
15    record.
16        Section  20-15.   Violations.  The commission of a single
17    act prohibited  by  this  Act  or  prohibited  by  the  rules
18    promulgated  under  this Act or a violation of a disciplinary
19    order issued under this Act constitutes a violation  of  this
20    Act.
21        Section  20-20.   Disciplinary  actions; causes. OBRE may
22    refuse to issue or renew a license, may place  on  probation,
23    suspend, or revoke any license, or may censure, reprimand, or
24    otherwise  discipline  or  impose  a civil fine not to exceed
25    $25,000 upon any  licensee  hereunder  for  any  one  or  any
26    combination of the following causes:
27        (a)  When  the  applicant  or  licensee  has, by false or
28    fraudulent representation, obtained or  sought  to  obtain  a
29    license.
30        (b)  When the applicant or licensee has been convicted of
31    any  crime,  an  essential  element of which is dishonesty or
32    fraud or larceny, embezzlement, or obtaining money, property,
HB2688 Engrossed            -48-               LRB9009844LDpk
 1    or credit by false pretenses or  by  means  of  a  confidence
 2    game,  has been convicted in this or another state of a crime
 3    that is a felony under the laws of this State,  or  has  been
 4    convicted of a felony in a federal court.
 5        (c)  When  the applicant or licensee has been adjudged to
 6    be a person under legal disability or subject to  involuntary
 7    admission  or  to meet the standard for judicial admission as
 8    provided in the Mental Health and Developmental  Disabilities
 9    Code.
10        (d)  When  the  licensee  performs or attempts to perform
11    any act  as  a  broker  or  salesperson  in  a  retail  sales
12    establishment  from  an  office,  desk,  or space that is not
13    separated from the main retail business  by  a  separate  and
14    distinct area within the establishment.
15        (e)  Discipline  of  a  licensee  by  another  state, the
16    District of  Columbia,  a  territory,  a  foreign  nation,  a
17    governmental agency, or any other entity authorized to impose
18    discipline if at least one of the grounds for that discipline
19    is  the  same  as or the equivalent of one of the grounds for
20    discipline set forth in this Act,  in  which  case  the  only
21    issue  will be whether one of the grounds for that discipline
22    is  the  same  or  equivalent  to  one  of  the  grounds  for
23    discipline under this Act.
24        (f)  When the applicant or licensee has engaged  in  real
25    estate  activity  without  a  license or after the licensee's
26    license was expired or while the license was inoperative.
27        (g)  When the applicant or licensee attempts  to  subvert
28    or  cheat  on  the  Real  Estate  License  Exam or continuing
29    education exam or aids and abets an applicant to  subvert  or
30    cheat on the Real Estate License Exam or continuing education
31    exam administered pursuant to this Act.
32        (h)  When  the  licensee  in  performing,  attempting  to
33    perform,  or  pretending  to  perform  any  act  as a broker,
34    salesperson,  or  leasing  agent  or  when  the  licensee  in
HB2688 Engrossed            -49-               LRB9009844LDpk
 1    handling his or her  own  property,  whether  held  by  deed,
 2    option, or otherwise, is found guilty of:
 3             (1)  Making  any  substantial  misrepresentation  or
 4        untruthful advertising.
 5             (2)  Making any false promises of a character likely
 6        to influence, persuade, or induce.
 7             (3)  Pursuing  a  continued  and  flagrant course of
 8        misrepresentation or the making of false promises through
 9        licensees, employees, agents, advertising, or otherwise.
10             (4)  Any misleading or  untruthful  advertising,  or
11        using  any  trade  name  or insignia of membership in any
12        real estate organization of which the licensee is  not  a
13        member.
14             (5)  Acting for more than one party in a transaction
15        without  providing written notice to all parties for whom
16        the licensee acts.
17             (6)  Representing  or  attempting  to  represent   a
18        broker other than the sponsoring broker.
19             (7)  Failure  to  account for or to remit any moneys
20        or documents coming  into  his  or  her  possession  that
21        belong to others.
22             (8)  Failure  to  maintain  and deposit in a special
23        account, separate  and  apart  from  personal  and  other
24        business  accounts, all escrow moneys belonging to others
25        entrusted to a licensee while acting  as  a  real  estate
26        broker, escrow agent, or temporary custodian of the funds
27        of  others  or  failure  to maintain all escrow moneys on
28        deposit  in  the  account  until  the  transactions   are
29        consummated  or terminated, except to the extent that the
30        moneys, or any part thereof, shall be disbursed prior  to
31        the  consummation  or  termination in accordance with (i)
32        the  written  direction  of   the   principals   to   the
33        transaction  or  their  duly  authorized  agents  or (ii)
34        directions  providing  for  the  release,   payment,   or
HB2688 Engrossed            -50-               LRB9009844LDpk
 1        distribution  of  escrow  moneys contained in any written
 2        contract signed by the principals to the  transaction  or
 3        their  duly  authorized  agents.   The  account  shall be
 4        noninterest bearing, unless the character of the  deposit
 5        is  such  that  payment  of interest thereon is otherwise
 6        required  by  law  or  unless  the  principals   to   the
 7        transaction  specifically  require,  in writing, that the
 8        deposit be placed in an interest bearing account.
 9             (9)  Failure to make available to  the  real  estate
10        enforcement  personnel  of  OBRE  during  normal business
11        hours all escrow records and related documents maintained
12        in connection with the practice of real estate.
13             (10)  Failing to furnish copies upon request of  all
14        documents  relating  to  a real estate transaction to all
15        parties executing them.
16             (11)  Failure  of  a  sponsoring  broker  to  timely
17        provide information, sponsor  cards,  or  termination  of
18        licenses to OBRE.
19             (12)  Having     demonstrated     unworthiness    or
20        incompetency to act as a broker or  salesperson  in  such
21        manner as to endanger the interest of the public.
22             (13)  Commingling  the  money  or property of others
23        with his or her own.
24             (14)  Employing any person on a purely temporary  or
25        single deal basis as a means of evading the law regarding
26        payment   of   commission   to   nonlicensees   on   some
27        contemplated transactions.
28             (15)  Permitting  the use of his or her license as a
29        broker to enable a salesperson or  unlicensed  person  to
30        operate   a   real   estate   business   without   actual
31        participation therein and control thereof by the broker.
32             (16)  Any  other  conduct,  whether of the same or a
33        different character from that specified in this  Section,
34        that constitutes dishonest dealing.
HB2688 Engrossed            -51-               LRB9009844LDpk
 1             (17)  Displaying  a "for rent" or "for sale" sign on
 2        any property without the written consent of an  owner  or
 3        his  or  her  duly authorized agent or advertising by any
 4        means that any property is for sale or for  rent  without
 5        the written consent of the owner or his or her authorized
 6        agent.
 7             (18)  Failing  to  provide  information requested by
 8        OBRE, within 30 days of the request, either as the result
 9        of a formal or informal complaint to OBRE or as a  result
10        of a random audit conducted by OBRE, which would indicate
11        a violation of this Act.
12             (19)  Advertising by means of a blind advertisement,
13        except  as  otherwise  permitted in Section 10-30 of this
14        Act.
15             (20)  Offering guaranteed sales plans, as defined in
16        clause (A) of this subdivision (20), except to the extent
17        hereinafter set forth:
18                  (A)  A "guaranteed  sales  plan"  is  any  real
19             estate  purchase  or  sales  plan whereby a licensee
20             enters into a conditional or  unconditional  written
21             contract  with  a  seller  by  the  terms of which a
22             licensee agrees to purchase a property of the seller
23             within a specified period  of  time  at  a  specific
24             price  in  the  event  the  property  is not sold in
25             accordance with the  terms  of  a  listing  contract
26             between  the  sponsoring broker and the seller or on
27             other terms acceptable to the seller.
28                  (B)  A licensee  offering  a  guaranteed  sales
29             plan shall provide the details and conditions of the
30             plan  in  writing  to  the party to whom the plan is
31             offered.
32                  (C)  A licensee  offering  a  guaranteed  sales
33             plan  shall provide to the party to whom the plan is
34             offered evidence of sufficient  financial  resources
HB2688 Engrossed            -52-               LRB9009844LDpk
 1             to  satisfy the commitment to purchase undertaken by
 2             the broker in the plan.
 3                  (D)  Any licensee offering a  guaranteed  sales
 4             plan  shall  undertake to market the property of the
 5             seller subject to the plan in  the  same  manner  in
 6             which  the  broker  would market any other property,
 7             unless  the  agreement  with  the  seller   provides
 8             otherwise.
 9                  (E)  Any  licensee  who  fails  to perform on a
10             guaranteed sales plan in strict accordance with  its
11             terms shall be subject to all the penalties provided
12             in this Act for violations thereof and, in addition,
13             shall  be  subject  to  a  civil fine payable to the
14             party injured by the default in an amount of  up  to
15             $25,000.
16             (21)  Influencing or attempting to influence, by any
17        words or acts, a prospective seller, purchaser, occupant,
18        landlord,  or  tenant  of real estate, in connection with
19        viewing, buying, or leasing real estate, so as to promote
20        or tend to promote  the  continuance  or  maintenance  of
21        racially  and  religiously segregated housing or so as to
22        retard,  obstruct,  or  discourage  racially   integrated
23        housing  on  or  in  any  street, block, neighborhood, or
24        community.
25             (22)  Engaging  in  any  act  that   constitutes   a
26        violation  of  any provision of Article 3 of the Illinois
27        Human Rights Act, whether or not  a  complaint  has  been
28        filed with or adjudicated by the Human Rights Commission.
29             (23)  Inducing  any  party  to a contract of sale or
30        lease or brokerage agreement to  break  the  contract  of
31        sale  or  lease or brokerage agreement for the purpose of
32        substituting, in lieu thereof, a new contract for sale or
33        lease or brokerage agreement with a third party.
34             (24)  Negotiating a sale, exchange, or lease of real
HB2688 Engrossed            -53-               LRB9009844LDpk
 1        estate directly with any person  if  the  licensee  knows
 2        that   the  person  has  a  written  exclusive  brokerage
 3        agreement  with  another  broker,   unless   specifically
 4        authorized by that broker.
 5             (25)  When a licensee is also an attorney, acting as
 6        the  attorney  for  either the buyer or the seller in the
 7        same transaction in which the licensee is acting  or  has
 8        acted as a broker or salesperson.
 9             (26)  Advertising   or   offering   merchandise   or
10        services   as  free  if  any  conditions  or  obligations
11        necessary for receiving the merchandise or  services  are
12        not  disclosed in the same advertisement or offer.  These
13        conditions or obligations include without limitation  the
14        requirement  that  the  recipient  attend  a  promotional
15        activity  or  visit  a real estate site.  As used in this
16        subdivision (26), "free" includes terms such as  "award",
17        "prize", "no charge," "free of charge," "without charge",
18        and  similar  words  or  phrases  that  reasonably lead a
19        person to believe that he or she may receive or has  been
20        selected  to  receive  something  of  value,  without any
21        conditions or obligations on the part of the recipient.
22             (27)  Disregarding or violating any provision of the
23        Land Sales Registration Act of 1989,  the  Illinois  Real
24        Estate Time-Share Act, or the published rules promulgated
25        by OBRE to enforce those Acts.
26             (28)  Violating  the  terms  of a disciplinary order
27        issued by OBRE.
28             (29)  Paying compensation in violation of Article 10
29        of this Act.
30             (30)  Requiring a party to a transaction who is  not
31        a  client of the licensee to allow the licensee to retain
32        a portion  of  the  escrow  moneys  for  payment  of  the
33        licensee's  commission  or  expenses  as  a condition for
34        release of the escrow moneys to that party.
HB2688 Engrossed            -54-               LRB9009844LDpk
 1             (31)  Disregarding or  violating  any  provision  of
 2        this  Act  or  the published rules promulgated by OBRE to
 3        enforce this Act or aiding or  abetting  any  individual,
 4        partnership,  registered  limited  liability partnership,
 5        limited liability company, or corporation in disregarding
 6        any  provision  of  this  Act  or  the  published   rules
 7        promulgated by OBRE to enforce this Act.
 8        Section  20-25.   Returned  checks;  fees. Any person who
 9    delivers a check or other payment to OBRE that is returned to
10    OBRE unpaid by the financial institution  upon  which  it  is
11    drawn  shall  pay  to OBRE, in addition to the amount already
12    owed to OBRE, a fee of $50.  The fees imposed by this Section
13    are in addition to any other discipline provided  under  this
14    Act  for  unlicensed  practice  or  practice  on a nonrenewed
15    license. OBRE shall notify the person that  payment  of  fees
16    and  fines  shall be paid to OBRE by certified check or money
17    order within 30 calendar days of the notification.  If, after
18    the expiration of 30 days from the date of the  notification,
19    the  person  has  failed  to submit the necessary remittance,
20    OBRE shall automatically terminate the license  or  deny  the
21    application,  without  hearing.   If,  after  termination  or
22    denial,  the person seeks a license, he or she shall apply to
23    OBRE for restoration or issuance of the license and  pay  all
24    fees  and fines due to OBRE. OBRE may establish a fee for the
25    processing of an application for restoration of a license  to
26    pay   all  expenses  of  processing  this  application.   The
27    Commissioner may waive the fees due  under  this  Section  in
28    individual  cases  where the Commissioner finds that the fees
29    would be unreasonable or unnecessarily burdensome.
30        Section 20-30.  Standards of practice of leasing  agents;
31    disciplinary procedures. OBRE may by rule, with the advice of
32    the  Board, prescribe standards of practice to be followed by
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 1    licensed leasing agents.  Standards of practice shall include
 2    without limitation acts or omissions that leasing agents  are
 3    prohibited  from  engaging  in,  disciplinary procedures, and
 4    penalties for violating provisions of this Act.  Disciplinary
 5    procedures shall conform  with  disciplinary  procedures  for
 6    licensed  real  estate  brokers and salespersons.  Complaints
 7    shall be heard as provided for in this Act.
 8        Section 20-35.  Violations of tax Acts. OBRE  may  refuse
 9    to  issue  or  renew or may suspend the license of any person
10    who fails to file a return, pay the tax, penalty, or interest
11    shown in a filed return, or pay any final assessment of  tax,
12    penalty, or interest, as required by any tax Act administered
13    by  the  Department  of  Revenue,  until  such  time  as  the
14    requirements of any such tax Act are satisfied.
15        Section  20-40.  Disciplinary action for educational loan
16    defaults. OBRE shall deny a license or renewal authorized  by
17    this Act to a person who has defaulted on an educational loan
18    or scholarship provided or guaranteed by the Illinois Student
19    Assistance  Commission  or  any  governmental  agency of this
20    State; however, OBRE may issue a license or  renewal  if  the
21    person  has  established  a  satisfactory repayment record as
22    determined by the Illinois Student Assistance  Commission  or
23    other   appropriate   governmental   agency  of  this  State.
24    Additionally, a license issued by OBRE may  be  suspended  or
25    revoked  if  the  Commissioner,  after  the opportunity for a
26    hearing under this  Article,  finds  that  the  licensee  has
27    failed to make satisfactory repayment to the Illinois Student
28    Assistance Commission for a delinquent or defaulted loan.
29        Section  20-45.  Nonpayment of child support. In cases in
30    which the Department of Public Aid has previously  determined
31    that  a licensee or a potential licensee is more than 30 days
HB2688 Engrossed            -56-               LRB9009844LDpk
 1    delinquent  in  the  payment  of  child   support   and   has
 2    subsequently  certified  the  delinquency  to  OBRE, OBRE may
 3    refuse to issue or  renew  or  may  revoke  or  suspend  that
 4    person's  license  or  may  take  other  disciplinary  action
 5    against  that  person  based solely upon the certification of
 6    delinquency  made  by   the   Department   of   Public   Aid.
 7    Redetermination  of  the  delinquency  by  OBRE  shall not be
 8    required.  In cases regarding the renewal of a license,  OBRE
 9    shall  not  renew any license if the Department of Public Aid
10    has certified the licensee to be more than 30 days delinquent
11    in the payment of  child  support  unless  the  licensee  has
12    arranged  for  payment  of  past  and  current  child support
13    obligations in a manner satisfactory  to  the  Department  of
14    Public  Aid.   OBRE  may  impose conditions, restrictions, or
15    disciplinary action upon that renewal.
16        Section 20-50.  Illegal discrimination.  When  there  has
17    been an adjudication in a civil or criminal proceeding that a
18    licensee  has  illegally  discriminated  while engaged in any
19    activity for which a license  is  required  under  this  Act,
20    OBRE,  upon  the recommendation of the Board as to the extent
21    of the suspension or revocation, shall suspend or revoke  the
22    license  of  that  licensee  in  a  timely manner, unless the
23    adjudication is in the appeal process. When there has been an
24    order in an administrative proceeding finding that a licensee
25    has illegally discriminated while engaged in any activity for
26    which a license  is  required  under  this  Act,  OBRE,  upon
27    recommendation  of  the  Board as to the nature and extent of
28    the discipline, shall take one or more  of  the  disciplinary
29    actions provided for in Section 20-20 of this Act in a timely
30    manner,  unless  the  administrative  order  is in the appeal
31    process.
32        Section 20-55.  Illinois  Administrative  Procedure  Act.
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 1    The Illinois Administrative Procedure Act is hereby expressly
 2    adopted  and  incorporated herein as if all of the provisions
 3    of that Act were  included  in  this  Act,  except  that  the
 4    provision  of subsection (d) of Section 10-65 of the Illinois
 5    Administrative Procedure Act that provides that  at  hearings
 6    the licensee has the right to show compliance with all lawful
 7    requirements  for  retention, continuation, or renewal of the
 8    license is specifically excluded.  For the purposes  of  this
 9    Act,  the  notice  required under the Illinois Administrative
10    Procedure Act is deemed sufficient when mailed  to  the  last
11    known address of a party.
12        Section    20-60.     Hearing;   investigation;   notice;
13    disciplinary consent order.
14        (a)  OBRE may conduct hearings through  the  Board  or  a
15    duly  appointed  hearing  officer  on proceedings to suspend,
16    revoke, or to refuse to issue or renew  licenses  of  persons
17    applying  for  licensure  or  licensed  under  this Act or to
18    censure, reprimand, or impose a  civil  fine  not  to  exceed
19    $25,000  upon any licensee hereunder and may revoke, suspend,
20    or refuse to  issue  or  renew  these  licenses  or  censure,
21    reprimand,  or impose a civil fine not to exceed $25,000 upon
22    any licensee hereunder.
23        (b)  Upon the motion of either OBRE or the Board or  upon
24    the  verified  complaint  in  writing  of any persons setting
25    forth facts that  if  proven  would  constitute  grounds  for
26    suspension  or revocation under this Act, OBRE, the Board, or
27    its subcommittee shall cause to be investigated  the  actions
28    of  any  person  so accused who holds a license or is holding
29    himself or herself out to be  a  licensee.   This  person  is
30    hereinafter called the accused.
31        (c)  Prior   to   initiating   any   formal  disciplinary
32    proceedings  resulting  from   an   investigation   conducted
33    pursuant to subsection (b) of this Section, that matter shall
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 1    be  reviewed  by  a  subcommittee  of  the Board according to
 2    procedures established by rule. The subcommittee shall make a
 3    recommendation to the full Board as to the  validity  of  the
 4    complaint  and  may recommend that the Board not proceed with
 5    formal  disciplinary  proceedings   if   the   complaint   is
 6    determined to be frivolous or without merit.
 7        (d)  Except as provided for in Section 20-65 of this Act,
 8    OBRE   shall,   before   suspending,   revoking,  placing  on
 9    probationary status, or taking any other disciplinary  action
10    as OBRE may deem proper with regard to any license:
11             (1)  notify  the accused in writing at least 30 days
12        prior to the date set for the hearing of any charges made
13        and the time and place for the hearing of the charges  to
14        be heard before the Board under oath; and
15             (2)  inform the accused that upon failure to file an
16        answer  and  request a hearing before the date originally
17        set for the hearing, default will be  taken  against  the
18        accused and his or her license may be suspended, revoked,
19        or  placed  on probationary status, or other disciplinary
20        action, including limiting the scope, nature,  or  extent
21        of  the  accused's practice, as OBRE may deem proper, may
22        be taken with regard thereto.
23        In  case  the  person  fails  to  file  an  answer  after
24    receiving notice, his or her license may, in  the  discretion
25    of  OBRE,  be  suspended,  revoked, or placed on probationary
26    status, or OBRE may take whatever disciplinary action  deemed
27    proper,  including  limiting  the scope, nature, or extent of
28    the person's practice or the imposition of a fine, without  a
29    hearing,  if  the  act  or acts charged constitute sufficient
30    grounds for such action under this Act.
31        (e)  At the time and place fixed in the notice, the Board
32    shall proceed to hearing of the charges and both the  accused
33    person   and   the   complainant   shall  be  accorded  ample
34    opportunity  to  present  in  person  or  by   counsel   such
HB2688 Engrossed            -59-               LRB9009844LDpk
 1    statements,  testimony,  evidence  and  argument  as  may  be
 2    pertinent  to  the  charges  or  to any defense thereto.  The
 3    Board or its hearing officer may continue a hearing date upon
 4    its own motion or upon an accused's motion for one period not
 5    to exceed 30 days.  The Board  or  its  hearing  officer  may
 6    grant  further continuances for periods not to exceed 30 days
 7    only upon good cause being shown by the  moving  party.   The
 8    non-moving  party  shall  have the opportunity to object to a
 9    continuance on the record at a hearing  upon  the  motion  to
10    continue.  All  motions  for  continuances  and any denial or
11    grant thereof shall be in  writing.   All  motions  shall  be
12    submitted  not  later  than  48  hours  before  the scheduled
13    hearing unless made upon an emergency basis.  In  determining
14    whether  good  cause for a continuance is shown, the Board or
15    its hearing officer shall consider such factors as the volume
16    of cases pending, the nature and complexity of  legal  issues
17    raised,  the  diligence  of the party making the request, the
18    availability of party's legal  representative  or  witnesses,
19    and the number of previous requests for continuance.
20        (f)  Any   unlawful  act  or  violation  of  any  of  the
21    provisions of  this  Act  upon  the  part  of  any  licensees
22    employed  by  a  real  estate broker or associated by written
23    agreement with the real estate broker, or unlicensed employee
24    of a licensed broker, shall not be cause for  the  revocation
25    of  the  license  of  any  such broker, partial or otherwise,
26    unless it appears to the satisfaction of OBRE that the broker
27    had knowledge thereof.
28        (g)  OBRE or the Board has power to subpoena any  persons
29    or documents for the purpose of investigation or hearing with
30    the  same  fees  and  mileage  and  in  the  same  manner  as
31    prescribed  by  law  for judicial procedure in civil cases in
32    courts of this State. The  Commissioner,  the  Director,  any
33    member of the Board, a certified court reporter, or a hearing
34    officer   shall  each  have  power  to  administer  oaths  to
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 1    witnesses at any hearing which OBRE is authorized under  this
 2    Act to conduct.
 3        (h)  Any  circuit  court  or  any judge thereof, upon the
 4    application of the accused person, complainant, OBRE, or  the
 5    Board,  may,  by  order  entered,  require  the attendance of
 6    witnesses and the production of  relevant  books  and  papers
 7    before  the  Board in any hearing relative to the application
 8    for or  refusal,  recall,  suspension,  or  revocation  of  a
 9    license,  and  the court or judge may compel obedience to the
10    court's or the judge's order by proceedings for contempt.
11        (i)  OBRE, at its expense, shall preserve a record of all
12    proceedings at the formal hearing of any case  involving  the
13    refusal  to  issue  or  the  revocation, suspension, or other
14    discipline of a licensee.  The notice of  hearing,  complaint
15    and  all  other  documents  in  the  nature  of pleadings and
16    written motions filed in the proceedings, the  transcript  of
17    testimony,  the  report  of the Board, and the orders of OBRE
18    shall be the record of the proceeding.  At  all  hearings  or
19    pre-hearing  conferences,  OBRE  and  the  accused  shall  be
20    entitled  to have a court reporter in attendance for purposes
21    of transcribing the proceeding or pre-hearing  conference  at
22    the  expense  of  the  party  requesting the court reporter's
23    attendance. A copy of the  transcribed  proceeding  shall  be
24    available  to  the  other party for the cost of a copy of the
25    transcript.
26        (j)  The Board shall  present  to  the  Commissioner  its
27    written  report  of its findings and recommendations.  A copy
28    of the report  shall  be  served  upon  the  accused,  either
29    personally  or  by certified mail as provided in this Act for
30    the service of  the  citation.   Within  20  days  after  the
31    service, the accused may present to the Commissioner a motion
32    in  writing for a rehearing that shall specify the particular
33    grounds therefor.  If the accused shall order and pay  for  a
34    transcript  of  the  record as provided in this Act, the time
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 1    elapsing thereafter and before the transcript  is  ready  for
 2    delivery  to  the accused shall not be counted as part of the
 3    20  days.  Whenever  the  Commissioner  is   satisfied   that
 4    substantial  justice  has not been done, the Commissioner may
 5    order a rehearing by the Board  or  other  special  committee
 6    appointed by the Commissioner or may remand the matter to the
 7    Board  for  their  reconsideration of the matter based on the
 8    pleadings and  evidence  presented  to  the  Board.   In  all
 9    instances,  under this Act, in which the Board has rendered a
10    recommendation  to  the  Commissioner  with  respect   to   a
11    particular  licensee or applicant, the Commissioner shall, in
12    the event that he or  she  disagrees  with  or  takes  action
13    contrary  to  the  recommendation of the Board, file with the
14    Board and the Secretary of State his specific written reasons
15    of disagreement with the Board.  The reasons shall  be  filed
16    within   60   days  of  the  Board's  recommendation  to  the
17    Commissioner and  prior  to  any  contrary  action.   At  the
18    expiration  of  the  time specified for filing a motion for a
19    rehearing, the Commissioner shall have the right to take  the
20    action  recommended  by  the  Board.   Upon the suspension or
21    revocation of a license, the licensee shall  be  required  to
22    surrender  his  or  her  license to OBRE, and upon failure or
23    refusal to do so, OBRE shall have  the  right  to  seize  the
24    license.
25        (k)  At  any  time  after the suspension or revocation of
26    any license, OBRE may  restore  it  to  the  accused  without
27    examination, upon the written recommendation of the Board.
28        (l)  An  order of revocation or suspension or a certified
29    copy thereof, over the seal of  OBRE  and  purporting  to  be
30    signed by the Commissioner, shall be prima facie proof that:
31             (1)  The  signature  is the genuine signature of the
32        Commissioner.
33             (2)  The  Commissioner   is   duly   appointed   and
34        qualified.
HB2688 Engrossed            -62-               LRB9009844LDpk
 1             (3)  The   Board   and   the   members  thereof  are
 2        qualified.
 3    Such proof may be rebutted.
 4        (m)  Notwithstanding  any   provisions   concerning   the
 5    conduct  of  hearings  and  recommendations  for disciplinary
 6    actions,  OBRE  as  directed  by  the  Commissioner  has  the
 7    authority  to  negotiate  agreements   with   licensees   and
 8    applicants  resulting  in disciplinary consent orders.  These
 9    consent orders may provide for any of the forms of discipline
10    provided in this Act.  These  consent  orders  shall  provide
11    that  they  were not entered into as a result of any coercion
12    by OBRE.  Any such consent order  shall  be  filed  with  the
13    Commissioner   along  with  the  Board's  recommendation  and
14    accepted or rejected by the Commissioner within  60  days  of
15    the Board's recommendation.
16        Section  20-65.   Temporary  suspension. The Commissioner
17    may temporarily suspend the license of a licensee  without  a
18    hearing,  simultaneously  with the institution of proceedings
19    for a hearing provided for in Section 20-60 of this  Act,  if
20    the  Commissioner  finds that the evidence indicates that the
21    public interest, safety,  or  welfare  imperatively  requires
22    emergency   action.   In  the  event  that  the  Commissioner
23    temporarily suspends the license without a hearing before the
24    Board, a hearing shall be  held  within  30  days  after  the
25    suspension  has  occurred.  The suspended licensee may seek a
26    continuance of the hearing during which the suspension  shall
27    remain  in effect.  The proceeding shall be concluded without
28    appreciable delay.
29        Section 20-70.  Restoration of  license.    At  any  time
30    after  the  suspension, revocation, placement on probationary
31    status, or other disciplinary action  taken  under  this  Act
32    with  reference  to any license, OBRE may restore the license
HB2688 Engrossed            -63-               LRB9009844LDpk
 1    to  the  licensee  without  examination,  upon  the   written
 2    recommendation of the Board.
 3        Section  20-75.  Administrative Review Law; certification
 4    fee; summary report of final disciplinary actions. All  final
 5    administrative decisions of OBRE shall be subject to judicial
 6    review  pursuant  to  the  provisions  of  the Administrative
 7    Review Law and the rules adopted pursuant thereto.  The  term
 8    "administrative  decision" is defined in Section 3-101 of the
 9    Administrative Review Law. OBRE  shall  not  be  required  to
10    certify  any  record  or  file any answer or otherwise appear
11    unless the party  filing  the  complaint  pays  to  OBRE  the
12    certification  fee provided for by rule representing costs of
13    the certification.  Failure on the part of the  plaintiff  to
14    make  such  a  deposit  shall be grounds for dismissal of the
15    action. OBRE shall prepare from time to time, but in no event
16    less often than once every other month, a summary  report  of
17    final  disciplinary  actions taken since the previous summary
18    report.  The summary report shall contain a brief description
19    of the action that brought about the discipline and the final
20    disciplinary action taken.  The summary report shall be  made
21    available upon request.
22        Section   20-80.    Penalties;   injunction.  Any  person
23    violating any provision of this Act  other  than  subdivision
24    (4) of subsection (h) of Section 20-20 and other than Section
25    5-15  or  any  person  failing to account for or to remit any
26    moneys coming into his  or  her  possession  that  belong  to
27    others  or  commingling the money or other property of his or
28    her principal with his or her own, upon  conviction  for  the
29    first  offense,  is guilty of a Class C misdemeanor, and if a
30    limited  liability  company,  registered  limited   liability
31    partnership,  or corporation, is guilty of a business offense
32    and shall be fined not to exceed $2,000. Upon conviction of a
HB2688 Engrossed            -64-               LRB9009844LDpk
 1    second or subsequent offense the violator, if an  individual,
 2    is  guilty  of  a  Class  A  misdemeanor,  and  if  a limited
 3    liability company, registered limited liability  partnership,
 4    or  corporation, is guilty of a business offense and shall be
 5    fined not less than $2,000 nor more than $5,000. Any  person,
 6    limited   liability  company,  registered  limited  liability
 7    partnership,  or  corporation  violating  any  provision   of
 8    Section  5-15  of  this  Act,  upon  conviction for the first
 9    offense,  if  an  individual,  is  guilty  of   a   Class   A
10    misdemeanor,  and  if a limited liability company, registered
11    limited liability partnership, or corporation, is guilty of a
12    business offense and shall be fined not  to  exceed  $10,000.
13    Upon  conviction  of  a  second  or  subsequent  offense  the
14    violator,  if  an  individual, is guilty of a Class 4 felony,
15    and  if  a  limited  liability  company,  registered  limited
16    liability  partnership,  or  corporation,  is  guilty  of   a
17    business offense and shall be fined not less than $10,000 nor
18    more  than  $25,000. Any officer or agent of a corporation or
19    member or agent of a partnership, limited liability  company,
20    or   registered   limited  liability  partnership  who  shall
21    personally participate in or be an accessory to any violation
22    of this Act by the corporation,  limited  liability  company,
23    registered  limited  liability  partnership,  or  partnership
24    shall  be  subject  to  the  penalties  herein prescribed for
25    individuals, and the State's Attorney of the county where the
26    offense is committed shall prosecute  all  persons  violating
27    the  provisions of this Act upon proper complaint being made.
28    All fines and penalties shall be deposited in the Real Estate
29    Recovery Fund in the State Treasury. OBRE shall have the duty
30    and the right on  behalf  of  the  People  of  the  State  of
31    Illinois  to  originate  injunction  proceedings  against any
32    person acting or purporting to act as a  licensee  without  a
33    license  issued  under the provisions of this Act. OBRE shall
34    also have the duty and the right on behalf of the  People  of
HB2688 Engrossed            -65-               LRB9009844LDpk
 1    the  State  of  Illinois  to originate injunction proceedings
 2    against any licensee to enjoin  acts  by  the  licensee  that
 3    constitute violations of this Act.
 4        Section  20-85.  Recovery from Real Estate Recovery Fund.
 5    OBRE shall maintain a Real Estate Recovery  Fund  from  which
 6    any  person aggrieved by an act, representation, transaction,
 7    or conduct of a licensee or unlicensed employee of a licensee
 8    that is in violation of this Act  or  the  rules  promulgated
 9    pursuant   thereto,  constitutes  embezzlement  of  money  or
10    property, or results in money or  property  being  unlawfully
11    obtained  from  any  person  by  false  pretenses,  artifice,
12    trickery,   or   forgery   or   by   reason   of  any  fraud,
13    misrepresentation, discrimination, or deceit  by  or  on  the
14    part  of  any  such  licensee or the unlicensed employee of a
15    licensee and that results in a loss of actual cash money,  as
16    opposed to losses in market value, may recover. The aggrieved
17    person  may  recover,  by  order  of the circuit court of the
18    county where the violation occurred, an amount  of  not  more
19    than  $10,000 from the Fund for damages sustained by the act,
20    representation, transaction, or conduct, together with  costs
21    of  suit and attorney's fees incurred in connection therewith
22    of not to exceed 15% of the amount of  the  recovery  ordered
23    paid   from   the  Fund.   However,  no  licensed  broker  or
24    salesperson may recover from the Fund unless the court  finds
25    that  the  person  suffered a loss resulting from intentional
26    misconduct.  The court order shall not  include  interest  on
27    the  judgment. The maximum liability against the Fund arising
28    out of any one act shall be as provided in this Section,  and
29    the judgment order shall spread the award equitably among all
30    co-owners or otherwise aggrieved persons, if any. The maximum
31    liability  against  the Fund arising out of the activities of
32    any one licensee or one unlicensed employee  of  a  licensee,
33    since  January  1,  1974,  shall  be $50,000. Nothing in this
HB2688 Engrossed            -66-               LRB9009844LDpk
 1    Section shall be construed to  authorize  recovery  from  the
 2    Fund  unless the loss of the aggrieved person results from an
 3    act  or  omission  of  a  licensed  broker,  salesperson,  or
 4    unlicensed employee who  was  at  the  time  of  the  act  or
 5    omission  acting in such capacity or was apparently acting in
 6    such capacity and unless the aggrieved person has obtained  a
 7    valid  judgment  as provided in Section 20-90 of this Act. No
 8    person aggrieved by an act,  representation,  or  transaction
 9    that  is  in violation of the Illinois Real Estate Time-Share
10    Act or the Land Sales Registration Act of  1989  may  recover
11    from the Fund.
12        Section  20-90.   Collection  from  Real  Estate Recovery
13    Fund; procedure.
14        (a)  No action for a judgment that  subsequently  results
15    in an order for collection from the Real Estate Recovery Fund
16    shall  be  started later than 2 years after the date on which
17    the aggrieved person knew, or through the use  of  reasonable
18    diligence  should have known, of the acts or omissions giving
19    rise to a right of recovery from  the  Real  Estate  Recovery
20    Fund.
21        (b)  When  any  aggrieved  person  commences action for a
22    judgment that may result in collection from the  Real  Estate
23    Recovery  Fund,  the  aggrieved  person  must name as parties
24    defendant to that action any and all individual  real  estate
25    brokers,  real  estate  salespersons,  or their employees who
26    allegedly committed or are responsible for acts or  omissions
27    giving  rise  to  a  right  of  recovery from the Real Estate
28    Recovery Fund.  Failure to name  as  parties  defendant  such
29    individual  brokers,  salespersons,  or their employees shall
30    preclude recovery from the Real Estate Recovery Fund  of  any
31    portion  of  any  judgment  received  in such an action.  The
32    aggrieved party may also name as additional parties defendant
33    any corporations, limited liability companies,  partnerships,
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 1    registered  limited  liability partnership, or other business
 2    associations that may be responsible for acts giving rise  to
 3    a right of recovery from the Real Estate Recovery Fund.
 4        (c)  When  any  aggrieved  person  commences action for a
 5    judgment that may result in collection from the  Real  Estate
 6    Recovery  Fund,  the  aggrieved  person  must  notify OBRE in
 7    writing to this effect within 7 days of the  commencement  of
 8    the  action.    Failure  to  so  notify  OBRE  shall preclude
 9    recovery from the Real Estate Recovery Fund of any portion of
10    any judgment received in such  an  action.   After  receiving
11    notice  of  the  commencement  of  such  an action, OBRE upon
12    timely application shall be permitted to intervene as a party
13    defendant to that action.
14        (d)  When any aggrieved person  commences  action  for  a
15    judgment  that  may result in collection from the Real Estate
16    Recovery Fund, and the aggrieved person is unable  to  obtain
17    legal  and  proper  service  upon  the  defendant  under  the
18    provisions  of  Illinois law concerning service of process in
19    civil actions, the aggrieved person may  petition  the  court
20    where the action to obtain judgment was begun for an order to
21    allow  service  of legal process on the Commissioner. Service
22    of process on the Commissioner shall be  taken  and  held  in
23    that  court  to be as valid and binding as if due service had
24    been made upon the defendant. In case any  process  mentioned
25    in   this  Section  is  served  upon  the  Commissioner,  the
26    Commissioner shall forward a copy of the process by certified
27    mail to the licensee's last address on record with OBRE.  Any
28    judgment   obtained   after   service   of   process  on  the
29    Commissioner under this Act shall apply to and be enforceable
30    against  the  Real  Estate  Recovery  Fund  only.  OBRE   may
31    intervene in and defend any such action.
32        (e)  When  an  aggrieved  party  commences  action  for a
33    judgment that may result in collection from the  Real  Estate
34    Recovery  Fund,  and  the  court  before which that action is
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 1    commenced enters judgment by default  against  the  defendant
 2    and  in  favor  of  the aggrieved party, the court shall upon
 3    motion of OBRE set aside that  judgment  by  default.   After
 4    such  a  judgment  by  default has been set aside, OBRE shall
 5    appear as party defendant to that action, and thereafter  the
 6    court shall require proof of the allegations in the pleadings
 7    upon which relief is sought.
 8        (f)  The  aggrieved  person  shall give written notice to
 9    OBRE within 30 days of the entry of  any  judgment  that  may
10    result  in collection from the Real Estate Recovery Fund. The
11    aggrieved person shall provide  OBRE  within  20  days  prior
12    written  notice  of  all  supplementary  proceedings so as to
13    allow OBRE to participate in all efforts to  collect  on  the
14    judgment.
15        (g)  When  any aggrieved person recovers a valid judgment
16    in any court of competent jurisdiction against  any  licensee
17    or  an unlicensed employee of any broker, upon the grounds of
18    fraud,  misrepresentation,  discrimination,  or  deceit,  the
19    aggrieved  person  may,   upon   the   termination   of   all
20    proceedings,  including review and appeals in connection with
21    the judgment, file a verified claim in the court in which the
22    judgment was entered and, upon 30  days'  written  notice  to
23    OBRE,  and  to  the  person  against  whom  the  judgment was
24    obtained, may apply to  the  court  for  an  order  directing
25    payment  out  of  the Real Estate Recovery Fund of the amount
26    unpaid upon the  judgment,  not  including  interest  on  the
27    judgment,  and  subject  to the limitations stated in Section
28    20-85 of this Act.  The aggrieved person must set out in that
29    verified claim and at an evidentiary hearing to  be  held  by
30    the  court  upon the application the aggrieved party shall be
31    required to show that the aggrieved person:
32             (1)  Is not a spouse of the debtor or  the  personal
33        representative of such spouse.
34             (2)  Has  complied with all the requirements of this
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 1        Section.
 2             (3)  Has obtained  a  judgment  stating  the  amount
 3        thereof  and  the  amount  owing  thereon,  not including
 4        interest thereon, at the date of the application.
 5             (4)  Has made all reasonable searches and  inquiries
 6        to  ascertain whether the judgment debtor is possessed of
 7        real or personal property or other assets, liable  to  be
 8        sold or applied in satisfaction of the judgment.
 9             (5)  By  such  search  has discovered no personal or
10        real property or  other  assets  liable  to  be  sold  or
11        applied,  or  has  discovered certain of them, describing
12        them as owned by the judgment debtor and liable to be  so
13        applied   and   has   taken   all  necessary  action  and
14        proceedings for the realization thereof, and  the  amount
15        thereby   realized   was   insufficient  to  satisfy  the
16        judgment, stating the amount so realized and the  balance
17        remaining  due  on  the judgment after application of the
18        amount realized.
19             (6)  Has diligently pursued all remedies against all
20        the judgment debtors and all other persons liable to  the
21        aggrieved person in the transaction for which recovery is
22        sought from the Real Estate Recovery Fund.
23        The  aggrieved person shall also be required to prove the
24    amount of attorney's fees sought  to  be  recovered  and  the
25    reasonableness  of  those  fees  up  to  the  maximum allowed
26    pursuant to Section 20-85 of this Act.
27        (h)  The court shall  make  an  order  directed  to  OBRE
28    requiring  payment  from  the  Real  Estate  Recovery Fund of
29    whatever sum it finds to be payable upon the claim,  pursuant
30    to  and  in  accordance  with  the  limitations  contained in
31    Section 20-85 of this Act, if the court  is  satisfied,  upon
32    the hearing, of the truth of all matters required to be shown
33    by  the aggrieved person under subsection (g) of this Section
34    and that the aggrieved person has fully pursued and exhausted
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 1    all remedies available for recovering the amount  awarded  by
 2    the judgment of the court.
 3        (i)  Should  OBRE  pay from the Real Estate Recovery Fund
 4    any amount in settlement of a claim or toward satisfaction of
 5    a judgment against a licensed broker  or  salesperson  or  an
 6    unlicensed employee of a broker, the licensee's license shall
 7    be  automatically  terminated  upon  the  issuance of a court
 8    order authorizing payment from the Real Estate Recovery Fund.
 9    No petition for restoration of a license shall be heard until
10    repayment has been made in full, plus interest  at  the  rate
11    prescribed  in  Section 12-109 of the Code of Civil Procedure
12    of the amount paid from the  Real  Estate  Recovery  Fund  on
13    their  account. A discharge in bankruptcy shall not relieve a
14    person from the penalties and disabilities provided  in  this
15    subsection (i).
16        (j)  If,  at  any  time,  the money deposited in the Real
17    Estate Recovery Fund is  insufficient  to  satisfy  any  duly
18    authorized   claim  or  portion  thereof,  OBRE  shall,  when
19    sufficient money  has  been  deposited  in  the  Real  Estate
20    Recovery   Fund,  satisfy  such  unpaid  claims  or  portions
21    thereof, in the order that such claims  or  portions  thereof
22    were  originally filed, plus accumulated interest at the rate
23    prescribed in Section 12-109 of the Code of Civil Procedure.
24        Section 20-95.   Power  of  OBRE  to  defend.  When  OBRE
25    receives  any  process,  notice,  order,  or  other  document
26    provided  for or required under Section 20-90 of this Act, it
27    may enter an appearance, file an answer, appear at the  court
28    hearing,  defend the action, or take whatever other action it
29    deems appropriate on behalf and in the name of the  defendant
30    and take recourse through any appropriate method of review on
31    behalf of and in the name of the defendant.
32        Section   20-100.   Subrogation  of  OBRE  to  rights  of
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 1    judgment creditor. When, upon the order of  the  court,  OBRE
 2    has  paid  from  the Real Estate Recovery Fund any sum to the
 3    judgment creditor, OBRE shall be subrogated  to  all  of  the
 4    rights  of  the  judgment  creditor and the judgment creditor
 5    shall assign all rights, title, and interest in the  judgment
 6    to  OBRE  and any amount and interest so recovered by OBRE on
 7    the judgment shall be deposited in the Real  Estate  Recovery
 8    Fund.
 9        Section  20-105.  Waiver of rights for failure to comply.
10    The failure of an aggrieved person to comply  with  this  Act
11    relating  to the Real Estate Recovery Fund shall constitute a
12    waiver of any rights under Sections 20-85 and 20-90  of  this
13    Act.
14        Section   20-110.    Disciplinary  actions  of  OBRE  not
15    limited. Nothing contained in Sections 20-80  through  20-100
16    of this Act limits the authority of OBRE to take disciplinary
17    action  against  any  licensee for a violation of this Act or
18    the rules of OBRE, nor shall the repayment  in  full  of  all
19    obligations  to the Real Estate Recovery Fund by any licensee
20    nullify or  modify  the  effect  of  any  other  disciplinary
21    proceeding brought pursuant to this Act.
22        Section  20-115.   Time limit on action. No action may be
23    taken by OBRE against any person for violation of  the  terms
24    of  this  Act  or  its  rules  unless the action is commenced
25    within 5 years after the occurrence of the alleged violation.
26        Section 20-120.  Action to enjoin. Engaging  in  business
27    as  a  licensee  by  any  person  in violation of this Act is
28    declared to be harmful to the public  welfare  and  to  be  a
29    public  nuisance.   An  action to enjoin any person from such
30    unlawful activity may be maintained in the name of the People
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 1    of the State of Illinois by  the  Attorney  General,  by  the
 2    State's  Attorney  of  the  county  in  which  the  action is
 3    brought, by OBRE, or by any resident  citizen.   This  remedy
 4    shall be in addition to other remedies provided for violation
 5    of this Act.
 6        Section  20-125.   No  private right of action. Except as
 7    otherwise expressly provided for in this Act, nothing in this
 8    Act shall be construed to grant to any person a private right
 9    of action for damages or to enforce the  provisions  of  this
10    Act or the rules issued under this Act.
11               ARTICLE 25.  ADMINISTRATION OF LICENSES
12        Section  25-5.   OBRE;  powers  and  duties.  OBRE  shall
13    exercise  the  powers  and  duties  prescribed  by  the Civil
14    Administrative Code of Illinois  for  the  administration  of
15    licensing  acts  and  shall  exercise  such  other powers and
16    duties as are prescribed by this Act.  OBRE may contract with
17    third  parties  for  services  necessary   for   the   proper
18    administration of this Act.
19        Section    25-10.    Real   Estate   Administration   and
20    Disciplinary Board; duties. There is created the Real  Estate
21    Administration  and  Disciplinary  Board.  The Board shall be
22    composed of 9 persons  appointed  by  the  Governor.  Members
23    shall  be  appointed  to  the  Board subject to the following
24    conditions:
25             (1)  All  members  shall  have  been  residents  and
26        citizens of this State for at least 6 years prior to  the
27        date of appointment.
28             (2)  Six members shall have been actively engaged as
29        brokers or salespersons or both for at least the 10 years
30        prior to the appointment.
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 1             (3)  Three  members  of  the  Board  shall be public
 2        members who represent consumer interests.
 3        None of these members shall be a person who  is  licensed
 4    under  this  Act,  the spouse of a person licensed under this
 5    Act, or a person who has an  ownership  interest  in  a  real
 6    estate  brokerage  business.  The  members'  terms shall be 4
 7    years and the expiration of their terms shall  be  staggered.
 8    Appointments  to  fill  vacancies  shall be for the unexpired
 9    portion  of  the  term.  A  member  may  be  reappointed  for
10    successive terms but no member shall serve more than 8  years
11    in  his or her lifetime. Persons holding office as members of
12    the Board immediately prior to July 1, 1999  under  the  Real
13    Estate  License  Act of 1983 shall continue as members of the
14    Board until the expiration of the term for  which  they  were
15    appointed  and  until  their  successors  are  appointed  and
16    qualified.  The  membership  of  the  Board should reasonably
17    reflect  the  geographic   distribution   of   the   licensee
18    population  in  this  State.  In making the appointments, the
19    Governor shall give due consideration to the  recommendations
20    by  members and organizations of the profession. The Governor
21    may terminate the appointment of any member for cause that in
22    the  opinion  of  the  Governor  reasonably   justifies   the
23    termination.  Cause  for  termination  shall  include without
24    limitation  misconduct,  incapacity,  neglect  of  duty,   or
25    missing  4  board meetings during any one calendar year. Each
26    member of the Board shall receive a per diem  stipend  in  an
27    amount  to  be  determined  by the Commissioner.  Each member
28    shall be paid his or her necessary expenses while engaged  in
29    the  performance of his or her duties.  Such compensation and
30    expenses shall  be  paid  out  of  the  Real  Estate  License
31    Administration  Fund.  The  Commissioner  shall  consider the
32    recommendations of the Board on questions involving standards
33    of  professional  conduct,  discipline,  and  examination  of
34    candidates  under  this  Act.  OBRE,  after   notifying   and
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 1    considering  the  recommendations  of  the Board, if any, may
 2    issue rules, consistent with the provisions of this Act,  for
 3    the  administration and enforcement thereof and may prescribe
 4    forms that shall be used in connection therewith. None of the
 5    functions, powers, or duties enumerated in Sections 20-20 and
 6    30-5 and subsections (a) and (j) of Section 20-60 of this Act
 7    shall be exercised by OBRE except upon the action and  report
 8    in writing of the Board.
 9        Section   25-13.    Rules.   OBRE,  after  notifying  and
10    considering the recommendations of the Board, if  any,  shall
11    adopt,  promulgate, and issue any rules that may be necessary
12    for the implementation and enforcement of this Act.
13        Section 25-15.  Director of Real  Estate;  duties.  There
14    shall  be in OBRE a Director of Real Estate, appointed by the
15    Commissioner, who  shall  hold  a  currently  valid  broker's
16    license,  which  shall  be  surrendered  to  OBRE  during the
17    appointment. The Director of Real Estate shall report to  the
18    Commissioner and shall do the following:
19             (1)  act  as  Chairperson  of the Board, ex-officio,
20        without vote;
21             (2)  be  the  direct  liaison  between   OBRE,   the
22        profession,    and    real   estate   organizations   and
23        associations;
24             (3)  prepare  and   circulate   to   licensees   any
25        educational  and  informational  material that OBRE deems
26        necessary  for  providing  guidance  or   assistance   to
27        licensees;
28             (4)  appoint  any  necessary committees to assist in
29        the performance of the functions and duties of OBRE under
30        this Act; and
31             (5)  subject to the administrative approval  of  the
32        Commissioner,  supervise  all  real  estate activities of
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 1        OBRE.
 2        In  designating  the  Director  of   Real   Estate,   the
 3    Commissioner  shall give due consideration to recommendations
 4    by members and organizations of the profession.
 5        Section 25-20.  Staff. OBRE shall employ sufficient staff
 6    to carry out the provisions of this Act.
 7        Section 25-25.  Real Estate Research and Education  Fund.
 8    A  special  fund  to be known as the Real Estate Research and
 9    Education Fund is created and shall be held in trust  in  the
10    State  Treasury.   Annually,  on  September  15th,  the State
11    Treasurer shall cause a transfer  of  $125,000  to  the  Real
12    Estate  Research  and  Education  Fund  from  the Real Estate
13    License Administration Fund.  The Real  Estate  Research  and
14    Education   Fund   shall  be  administered  by  OBRE.   Money
15    deposited in the Real Estate Research and Education Fund  may
16    be  used  for research and education at state institutions of
17    higher education or other organizations for research and  the
18    advancement  of education in the real estate industry. Of the
19    $125,000 annually transferred into the Real  Estate  Research
20    and   Education  Fund,  $15,000  shall  be  used  to  fund  a
21    scholarship program for persons of minority racial origin who
22    wish to pursue a course of study in the field of real estate.
23    For the purposes of this Section, "course of study"  means  a
24    course  or  courses  that are part of a program of courses in
25    the field of real estate designed to further an  individual's
26    knowledge  or  expertise  in  the field of real estate. These
27    courses shall  include  without  limitation  courses  that  a
28    salesperson  licensed under this Act must complete to qualify
29    for a real  estate  broker's  license,  courses  required  to
30    obtain  the  Graduate Realtors Institute designation, and any
31    other courses or programs  offered  by  accredited  colleges,
32    universities,  or  other  institutions of higher education in
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 1    Illinois.  The scholarship program shall be  administered  by
 2    OBRE  or its designee. Moneys in the Real Estate Research and
 3    Education Fund may be invested and  reinvested  in  the  same
 4    manner  as  funds  in  the  Real Estate Recovery Fund and all
 5    earnings,  interest,  and  dividends   received   from   such
 6    investments  shall  be  deposited in the Real Estate Research
 7    and Education Fund and may be used for the same  purposes  as
 8    moneys  transferred to the Real Estate Research and Education
 9    Fund.
10        Section 25-30.  Real Estate License Administration  Fund;
11    audit.  A special fund to be known as the Real Estate License
12    Administration Fund is created in the  State  Treasury.   All
13    fees  received  by  OBRE under this Act shall be deposited in
14    the Real Estate  License  Administration  Fund.   The  moneys
15    deposited  in  the  Real  Estate  License Administration Fund
16    shall be appropriated to OBRE for expenses of  OBRE  and  the
17    Board   in  the  administration  of  this  Act  and  for  the
18    administration of any  Act  administered  by  OBRE  providing
19    revenue  to  this  Fund.  Moneys  in  the Real Estate License
20    Administration Fund may be invested  and  reinvested  in  the
21    same  manner  as funds in the Real Estate Recovery Fund.  All
22    earnings received from such investment shall be deposited  in
23    the  Real  Estate License Administration Fund and may be used
24    for the same purposes as fees deposited in  the  Real  Estate
25    License Administration Fund. Upon the completion of any audit
26    of  OBRE,  as  prescribed by the Illinois State Auditing Act,
27    which  includes  an  audit  of  the   Real   Estate   License
28    Administration  Fund,  OBRE  shall  make  the  audit  open to
29    inspection by any interested person.
30        Section 25-35.  Real Estate Recovery Fund. A special fund
31    to be known as the Real Estate Recovery Fund  is  created  in
32    the  State  Treasury.   The sums received by OBRE pursuant to
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 1    the provisions of Sections 20-20, 20-30,  and  20-80  through
 2    20-100 of this Act shall be deposited into the State Treasury
 3    and  held in the Real Estate Recovery Fund.  The money in the
 4    Real Estate Recovery Fund shall be used by  OBRE  exclusively
 5    for  carrying  out the purposes established by this Act.  If,
 6    at any  time,  the  balance  remaining  in  the  Real  Estate
 7    Recovery  Fund  is  less  than  $750,000, the State Treasurer
 8    shall cause a transfer of moneys to the Real Estate  Recovery
 9    Fund  from  the Real Estate License Administration Fund in an
10    amount necessary to establish a balance of  $800,000  in  the
11    Real  Estate  Recovery Fund.  These funds may be invested and
12    reinvested in the same manner as authorized for pension funds
13    in Article 14 of the Illinois Pension Code.    All  earnings,
14    interest,  and dividends received from investment of funds in
15    the Real Estate Recovery Fund shall  be  deposited  into  the
16    Real Estate License Administration Fund and shall be used for
17    the  same  purposes  as  other  moneys  deposited in the Real
18    Estate License Administration Fund.
19        Section 25-40.  Exclusive  State  powers  and  functions;
20    municipal  powers.  It is declared to be the public policy of
21    this State, pursuant to paragraphs (h) and (i) of  Section  6
22    of Article VII of the Illinois Constitution of 1970, that any
23    power  or  function  set forth in this Act to be exercised by
24    the State is an exclusive  State  power  or  function.   Such
25    power or function shall not be exercised concurrently, either
26    directly  or  indirectly,  by  any  unit of local government,
27    including home rule units, except as  otherwise  provided  in
28    this  Act.  Nothing  in  this  Section  shall be construed to
29    affect or impair the validity of  Section  11-11.1-1  of  the
30    Illinois  Municipal  Code,  as  amended,  or  to  deny to the
31    corporate authorities of any municipality the powers  granted
32    in   the   Illinois   Municipal   Code  to  enact  ordinances
33    prescribing fair housing practices; defining  unfair  housing
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 1    practices;  establishing  Fair  Housing  or  Human  Relations
 2    Commissions   and   standards  for  the  operation  of  these
 3    commissions in the administration  and  enforcement  of  such
 4    ordinances;  prohibiting discrimination based on race, color,
 5    creed,  ancestry,  national  origin  or  physical  or  mental
 6    handicap  in  the  listing,   sale,   assignment,   exchange,
 7    transfer,  lease,  rental,  or financing of real property for
 8    the  purpose  of  the  residential  occupancy  thereof;   and
 9    prescribing penalties for violations of such ordinances.
10                ARTICLE 30.  SCHOOLS AND INSTRUCTORS
11        Section  30-5.   Licensing of pre-license schools, school
12    branches, and instructors.
13        (a)  No person shall  operate  a  pre-license  school  or
14    school  branch  without possessing a valid pre-license school
15    or school branch license issued by OBRE.  No person shall act
16    as a pre-license instructor at a pre-license school or school
17    branch without  possessing  a  valid  pre-license  instructor
18    license issued by OBRE.  Every person who desires to obtain a
19    pre-license  school, school branch, or pre-license instructor
20    license shall make application to OBRE in writing in form and
21    substance satisfactory to OBRE  and  pay  the  required  fees
22    prescribed  by  rule.   In  addition to any other information
23    required  to  be  contained   in   the   application,   every
24    application  for an original or renewed license shall include
25    the applicant's Social Security number.  OBRE shall  issue  a
26    pre-license  school, school branch, or pre-license instructor
27    license  to  applicants  who  meet   qualification   criteria
28    established  by  rule.   OBRE  may  refuse to issue, suspend,
29    revoke, or otherwise discipline a pre-license school,  school
30    branch,  or  pre-license  instructor  license or may withdraw
31    approval of a course offered by a pre-license school for good
32    cause.  Disciplinary proceedings shall be  conducted  by  the
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 1    Board  in  the  same manner as other disciplinary proceedings
 2    under this Act.
 3        (b)  Pre-license schools must allow students to retake  a
 4    course  exam  that  the student fails at least once within 30
 5    days of notice of failure.
 6        (c)  All pre-license instructors must teach at least  one
 7    course  within  the period of licensure or take an instructor
 8    training  program  approved  by  OBRE  in  lieu  thereof.   A
 9    pre-license instructor may teach at more  than  one  licensed
10    pre-license school.
11        (d)  The   term   of  license  for  pre-license  schools,
12    branches, and instructors shall be 2 years as established  by
13    rule.
14        (e)  OBRE  or  the  Advisory  Council  may, after notice,
15    cause a pre-license school to attend an  informal  conference
16    before  the  Advisory  Council for failure to comply with any
17    requirement for licensure or for failure to comply  with  any
18    provision  of this Act or the rules for the administration of
19    this Act.  The Advisory Council shall make  a  recommendation
20    to the Board as a result of its findings at the conclusion of
21    any such informal conference.
22        Section  30-10.   Advisory  Council;  powers  and duties.
23    There is created  within  OBRE  an  Advisory  Council  to  be
24    comprised  of  7 members appointed by the Governor for 4-year
25    staggered terms.  No member shall serve more than 8 years  in
26    a  lifetime.  Three of the members shall be licensees who are
27    current  members  of  the  Board,  one  member  shall  be   a
28    representative  of an Illinois real estate trade organization
29    who is not a member of the  Board,  one  member  shall  be  a
30    representative of a licensed pre-license school or continuing
31    education school, and one member shall be a representative of
32    an  institution  of  higher education that offers pre-license
33    and continuing education courses.  The Director  shall  serve
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 1    as  the chairman of the Advisory Council, ex officio, without
 2    vote. The Advisory Council shall recommend criteria  for  the
 3    licensing  of  pre-license  schools, pre-license instructors,
 4    continuing  education  schools,  and   continuing   education
 5    instructors;   review  applications  for  these  licenses  to
 6    determine if  the  applicants  meet  the  qualifications  for
 7    licensure  established  in  this  Act  and  by  rule; approve
 8    pre-license school and continuing  education  curricula;  and
 9    make  recommendations  to  the  Board  regarding  rules to be
10    adopted for the administration of the education provisions of
11    this Act.
12        Section  30-15.   Licensing   of   continuing   education
13    schools; approval of courses.
14        (a)  Only continuing education schools in possession of a
15    valid  continuing  education  school license may provide real
16    estate continuing education courses  that  will  satisfy  the
17    requirements  of  this  Act.  Pre-license schools licensed to
18    offer pre-license  education  courses  for  salespersons  and
19    brokers  shall  qualify  for  a  continuing  education school
20    license upon completion of an application and the  submission
21    of  the  required fee.  Every entity that desires to obtain a
22    continuing education school license shall make application to
23    OBRE in writing in forms prescribed by OBRE and pay  the  fee
24    prescribed  by  rule.   In  addition to any other information
25    required  to  be  contained   in   the   application,   every
26    application  for an original or renewed license shall include
27    the applicant's Social Security number.
28        (b)  The criteria  for  a  continuing  education  license
29    shall include the following:
30             (1)  A   sound   financial  base  for  establishing,
31        promoting, and delivering the necessary courses.   Budget
32        planning  for  the  School's  courses  should  be clearly
33        projected.
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 1             (2)  A  sufficient  number  of  qualified,  licensed
 2        instructors as provided by rule.
 3             (3)  Adequate  support  personnel  to  assist   with
 4        administrative matters and technical assistance.
 5             (4)  Maintenance  and  availability  of  records  of
 6        participation for licensees.
 7             (5)  The  ability  to  provide  each participant who
 8        successfully  completes  an  approved  program   with   a
 9        certificate  of completion signed by the administrator of
10        a licensed continuing education school on forms  provided
11        by OBRE.
12             (6)  The  continuing  education  school  must have a
13        written policy dealing with procedures for the management
14        of grievances and fee refunds.
15             (7)  The continuing education school shall  maintain
16        lesson plans and examinations for each course.
17             (8)  The continuing education school shall require a
18        70%  passing  grade  for  successful  completion  of  any
19        continuing education course.
20             (9)  The  continuing education school shall identify
21        and use instructors who will teach in a planned  program.
22        Suggested criteria for instructor selections include:
23                  (A)  appropriate credentials;
24                  (B)  competence as a teacher;
25                  (C)  knowledge of content area; and
26                  (D)  qualification by experience.
27        (c)  Advertising  and  promotion  of continuing education
28    activities must be carried  out  in  a  responsible  fashion,
29    clearly  showing  the educational objectives of the activity,
30    the  nature  of  the  audience  that  may  benefit  from  the
31    activity, the cost of the activity to the participant and the
32    items covered by the cost, the amount of credit that  can  be
33    earned, and the credentials of the faculty.
34        (d)  OBRE  may  or  upon  request of the Advisory Council
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 1    shall, after notice, cause a continuing education  school  to
 2    attend an informal conference before the Advisory Council for
 3    failure  to  comply with any requirement for licensure or for
 4    failure to comply with any provision of this Act or the rules
 5    for the administration of this  Act.   The  Advisory  Council
 6    shall  make  a recommendation to the Board as a result of its
 7    findings at the conclusion of any such informal conference.
 8        (e)  All  continuing  education  schools  shall  maintain
 9    these minimum criteria and pay the required fee in  order  to
10    retain their continuing education school license.
11        (f)  All  continuing  education  schools shall submit, at
12    the  time  of  initial  application  and  with  each  license
13    renewal, a list  of  courses  with  course  materials  to  be
14    offered  by  the continuing education school.  OBRE, however,
15    shall establish  a  mechanism  whereby  continuing  education
16    schools  may  apply  for  and  obtain approval for continuing
17    education courses  that  are  submitted  after  the  time  of
18    initial  application  or renewal.  OBRE shall provide to each
19    continuing education school a certificate for  each  approved
20    continuing   education   course.   All  continuing  education
21    courses shall be valid for the  period  coinciding  with  the
22    term  of  license  of  the  continuing education school.  All
23    continuing education schools shall  provide  a  copy  of  the
24    certificate  of  the  continuing  education course within the
25    course materials given to each student  or  shall  display  a
26    copy of the certificate of the continuing education course in
27    a conspicuous place at the location of the class.
28        (g)  Each  continuing  education  school shall provide to
29    OBRE a monthly report in a format determined  by  OBRE,  with
30    information  concerning  students  who successfully completed
31    all approved continuing  education  courses  offered  by  the
32    continuing education school for the prior month.
33        (h)  OBRE,   upon  the  recommendation  of  the  Advisory
34    Council,  may  temporarily  suspend  a  licensed   continuing
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 1    education  school's  approved  courses  without  hearing  and
 2    refuse to accept successful completion of or participation in
 3    any  of  these  continuing  education  courses for continuing
 4    education credit from that school upon the  failure  of  that
 5    continuing  education school to comply with the provisions of
 6    this Act or the rules for the  administration  of  this  Act,
 7    until  such  time  as OBRE receives satisfactory assurance of
 8    compliance.   OBRE  shall  notify  the  continuing  education
 9    school of the noncompliance  and  may  initiate  disciplinary
10    proceedings  pursuant  to this Act. OBRE may refuse to issue,
11    suspend, revoke, or otherwise discipline  the  license  of  a
12    continuing  education  school  or  may withdraw approval of a
13    continuing education course  for  good  cause.    Failure  to
14    comply  with  the  requirements  of this Section or any other
15    requirements established by rule shall be deemed to  be  good
16    cause.   Disciplinary  proceedings  shall be conducted by the
17    Board in the same manner as  other  disciplinary  proceedings
18    under this Act.
19        Section  30-20.   Fees  for  continuing  education school
20    license; renewal; term. All  applications  for  a  continuing
21    education   school   license   shall   be  accompanied  by  a
22    nonrefundable application fee in  an  amount  established  by
23    rule.   Application  and renewal fees shall be established by
24    rule but shall  not  be  less  than  $2,000  per  year.   All
25    continuing  education  schools  shall be required to submit a
26    renewal application, the required fee as established by rule,
27    and a listing of the courses to be offered during the year to
28    renew their continuing education school licenses.   The  term
29    for  a  continuing  education school license shall be 2 years
30    and as established by rule. The  fees  collected  under  this
31    Article  30  shall  be  deposited  in the Real Estate License
32    Administration Fund and shall be used to defray the  cost  of
33    administration  of  the  program and per diem of the Advisory
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 1    Council as determined by the Commissioner.
 2        Section  30-25.   Licensing   of   continuing   education
 3    instructors.
 4        (a)  Only persons approved by the Advisory Council and in
 5    possession of a valid continuing education instructor license
 6    issued by OBRE may instruct continuing education courses.
 7        (b)  Every  person  who  desires  to  obtain a continuing
 8    education instructor license shall make application  to  OBRE
 9    in  writing on forms prescribed by the Office, accompanied by
10    the fee  prescribed  by  rule.   In  addition  to  any  other
11    information  required  to  be  contained  in the application,
12    every application for an original or  renewed  license  shall
13    include  the  applicant's Social Security number.  OBRE shall
14    issue a continuing education instructor license to applicants
15    who meet qualification criteria established by  this  Act  or
16    rule.
17        (c)  OBRE  may  refuse  to  issue,  suspend,  revoke,  or
18    otherwise  discipline  a  continuing education instructor for
19    good cause.  Disciplinary proceedings shall be  conducted  by
20    the   Board   in   the  same  manner  as  other  disciplinary
21    proceedings under this Act.  The term  of  a  license  for  a
22    continuing  education  instructor  shall  be  2  years and as
23    established by rule.  All  Continuing  Education  Instructors
24    must teach at least one course within the period of licensure
25    or  take  an  instructor training program approved by OBRE in
26    lieu thereof.
27        Section 30-30.  Recommendation  of  rules.  The  Advisory
28    Council  shall  recommend to the Board rules that provide for
29    the administration of this Article  30.   These  rules  shall
30    include without limitation the following provisions:
31             (1)  The  rules  shall  define  what  constitutes  a
32        school  or  a  school  branch  offering  work in subjects
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 1        relating to real estate transactions that  shall  include
 2        the  subjects  upon  which  an  applicant  is examined in
 3        determining fitness to  receive  a  license.   The  rules
 4        shall  provide  for  the  establishment  of a uniform and
 5        reasonable standard of instruction and maintenance to  be
 6        observed by these schools.
 7             (2)  The  rules  shall establish minimum criteria to
 8        qualify for and  maintain  a  license  as  a  pre-license
 9        school,   pre-license   school   instructor,   continuing
10        education school, and continuing education instructor.
11             (3)  The  rules shall provide for acts and omissions
12        for  which  the  license   of   a   pre-license   school,
13        pre-license   school   instructor,  continuing  education
14        school,  or  continuing  education  instructor   may   be
15        disciplined under this Act.
16             (4)  The  rules  shall provide for the term, date of
17        expiration, and  renewal  process  for  the  licenses  of
18        pre-license   schools,  pre-license  school  instructors,
19        continuing education schools,  and  continuing  education
20        school instructors.
21                    ARTICLE 35.  TRANSITION RULES
22        Section 35-5.  Savings provisions.
23        (a)  This  Act  is  intended  to  replace the Real Estate
24    License Act of 1983 in all respects.
25        (b)  Beginning July 1,  1999,  the  rights,  powers,  and
26    duties exercised by the Office of Banks and Real Estate under
27    the  Real  Estate  License  Act  of 1983 shall continue to be
28    vested in, be the obligation of, and shall  be  exercised  by
29    the  Office  of Banks and Real Estate under the provisions of
30    this Act.
31        (c)  This Act does not affect any act done, ratified,  or
32    cancelled,  or  any  right  occurring  or established, or any
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 1    action or proceeding had or commenced in  an  administrative,
 2    civil,  or  criminal cause before July 1, 1999, by the Office
 3    of Banks and Real Estate under the Real Estate License Act of
 4    1983, and those actions or proceedings may be prosecuted  and
 5    continued  by  the Office of Banks and Real Estate under this
 6    Act.
 7        (d)  This Act does not affect any  license,  certificate,
 8    permit, or other form of licensure or authorization issued by
 9    the  Office  of  Banks  and Real Estate under the Real Estate
10    License Act of 1983, and  all  such  licenses,  certificates,
11    permits,  or  other  form of licensure or authorization shall
12    continue to be valid under the terms and conditions  of  this
13    Act.
14        (e)  The  rules  adopted  by the Office of Banks and Real
15    Estate relating to the  Real  Estate  License  Act  of  1983,
16    unless  inconsistent with the provisions of this Act, are not
17    affected by this Act, and on July 1, 1999 those rules  become
18    the  rules  under  this  Act.   The  Office of Banks and Real
19    Estate shall, as soon as practicable, adopt  new  or  amended
20    rules consistent with the provisions of this Act.
21        (f)  This Act does not affect any discipline, suspension,
22    or  termination  taken  under  the Real Estate License Act of
23    1983 and that discipline, suspension, or termination shall be
24    continued under this Act.
25        (g)  This Act does  not  affect  any  appointments,  term
26    limitations,  years  served,  or  other  matters  relating to
27    individuals serving on any board or council  under  the  Real
28    Estate  License  Act  of  1983,  and these appointments, term
29    limitations,  years  served,  and  other  matters  shall   be
30    continued under this Act.
31        Section  35-10.   Money in Funds.  Transfer of moneys and
32    appropriations moneys held in or appropriations to  the  Real
33    Estate  License  Administration  Fund,  Real  Estate Recovery
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 1    Fund, or Real Estate Research  and  Education  Fund  for  the
 2    purpose  of  administering  and  enforcing  the  Real  Estate
 3    License Act of 1983 shall be transferred to and held in those
 4    same funds for the purpose of administering and enforcing the
 5    provisions of this Act.
 6                 ARTICLE 905.  AMENDATORY PROVISIONS
 7        Section  905-5.   The  Regulatory  Agency  Sunset  Act is
 8    amended by changing Section 4.10 and adding Section  4.19  as
 9    follows:
10        (5 ILCS 80/4.10) (from Ch. 127, par. 1904.10)
11        Sec.  4.10.  The following Acts are repealed December 31,
12    1999:
13        The Fire Equipment Distributor  and  Employee  Regulation
14    Act.
15        The Professional Engineering Practice Act of 1989.
16        The Structural Engineering Licensing Act of 1989.
17        The Illinois Architecture Practice Act of 1989.
18        The Illinois Landscape Architecture Act of 1989.
19        The Illinois Professional Land Surveyor Act of 1989.
20        The Land Sales Registration Act of 1989.
21        The Real Estate License Act of 1983.
22    (Source: P.A. 86-667; 86-702; 86-711; 86-925; 86-932; 86-987;
23    86-1007; 86-1028.)
24        (5 ILCS 80/4.19 new)
25        Sec.  4.19.   Act  repealed  on  January  1,  2009.   The
26    following Act is repealed on January 1, 2009:
27        The Real Estate License Act of 1999.
28        Section   905-10.    The  Civil  Administrative  Code  of
29    Illinois is amended by changing Section 60 as follows:
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 1        (20 ILCS 2105/60) (from Ch. 127, par. 60)
 2        Sec.  60.  Powers  and   duties.    The   Department   of
 3    Professional Regulation shall have, subject to the provisions
 4    of this Act, the following powers and duties:
 5        1.  To authorize examinations in English to ascertain the
 6    qualifications  and  fitness  of  applicants  to exercise the
 7    profession, trade, or occupation for which the examination is
 8    held.
 9        2.  To prescribe rules and regulations  for  a  fair  and
10    wholly  impartial  method  of  examination  of  candidates to
11    exercise the respective professions, trades, or occupations.
12        3.  To pass upon the  qualifications  of  applicants  for
13    licenses,   certificates,   and   authorities,   whether   by
14    examination, by reciprocity, or by endorsement.
15        4.  To  prescribe rules and regulations defining, for the
16    respective professions, trades, and occupations,  what  shall
17    constitute a school, college, or university, or department of
18    a  university,  or  other institutions, reputable and in good
19    standing and to determine the reputability and good  standing
20    of  a  school,  college,  or  university,  or department of a
21    university, or  other  institution,  reputable  and  in  good
22    standing  by  reference  to  a compliance with such rules and
23    regulations:  provided,   that   no   school,   college,   or
24    university,   or   department   of   a  university  or  other
25    institution that refuses admittance to applicants  solely  on
26    account  of race, color, creed, sex, or national origin shall
27    be considered reputable and in good standing.
28        5.  To  conduct  hearings  on  proceedings   to   revoke,
29    suspend,  refuse  to  renew, place on probationary status, or
30    take other disciplinary action as may be  authorized  in  any
31    licensing  Act  administered by the Department with regard to
32    licenses, certificates, or authorities of persons  exercising
33    the  respective  professions,  trades, or occupations, and to
34    revoke, suspend,  refuse  to  renew,  place  on  probationary
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 1    status,   or   take  other  disciplinary  action  as  may  be
 2    authorized  in  any  licensing  Act   administered   by   the
 3    Department  with  regard  to  such licenses, certificates, or
 4    authorities.   The   Department   shall   issue   a   monthly
 5    disciplinary  report.   The Department shall deny any license
 6    or renewal authorized by this  Act  to  any  person  who  has
 7    defaulted  on  an educational loan or scholarship provided by
 8    or guaranteed by the Illinois Student  Assistance  Commission
 9    or  any  governmental  agency  of  this  State;  however, the
10    Department  may  issue  a   license   or   renewal   if   the
11    aforementioned   persons   have  established  a  satisfactory
12    repayment  record  as  determined  by  the  Illinois  Student
13    Assistance  Commission  or  other  appropriate   governmental
14    agency  of this State.  Additionally, beginning June 1, 1996,
15    any license issued by the  Department  may  be  suspended  or
16    revoked  if  the  Department,  after  the  opportunity  for a
17    hearing under the appropriate licensing Act, finds  that  the
18    licensee  has  failed  to  make satisfactory repayment to the
19    Illinois Student Assistance Commission for  a  delinquent  or
20    defaulted   loan.   For   the   purposes   of  this  Section,
21    "satisfactory repayment record" shall be defined by rule. The
22    Department shall refuse to issue or renew a  license  to,  or
23    shall  suspend  or revoke a license of, any person who, after
24    receiving notice, fails to comply with a subpoena or  warrant
25    relating   to   a  paternity  or  child  support  proceeding.
26    However, the Department may issue a license or  renewal  upon
27    compliance with the subpoena or warrant.
28        The  Department,  without  further  process  or hearings,
29    shall  revoke,  suspend,  or  deny  any  license  or  renewal
30    authorized by this Act to a person who is  certified  by  the
31    Illinois  Department of Public Aid as being more than 30 days
32    delinquent in complying  with  a  child  support  order;  the
33    Department  may,  however,  issue a license or renewal if the
34    person has established a  satisfactory  repayment  record  as
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 1    determined  by  the  Illinois  Department of Public Aid.  The
 2    Department may implement this paragraph as  added  by  Public
 3    Act  89-6  through  the  use of emergency rules in accordance
 4    with Section 5-45 of the  Illinois  Administrative  Procedure
 5    Act.   For  purposes of the Illinois Administrative Procedure
 6    Act, the adoption of rules to implement this paragraph  shall
 7    be  considered  an  emergency  and  necessary  for the public
 8    interest, safety, and welfare.
 9        6.  To transfer jurisdiction  of  any  realty  under  the
10    control  of  the  Department  to  any other Department of the
11    State Government, or to acquire or accept Federal lands, when
12    such transfer, acquisition or acceptance is  advantageous  to
13    the State and is approved in writing by the Governor.
14        7.  To   formulate   rules  and  regulations  as  may  be
15    necessary for the enforcement of any act administered by  the
16    Department.
17        8.  To  exchange  with  the Illinois Department of Public
18    Aid information that may be necessary for the enforcement  of
19    child  support orders entered pursuant to the Illinois Public
20    Aid Code, the Illinois Marriage and Dissolution  of  Marriage
21    Act,  the Non-Support of Spouse and Children Act, the Revised
22    Uniform Reciprocal Enforcement of Support  Act,  the  Uniform
23    Interstate  Family Support Act, or the Illinois Parentage Act
24    of 1984. Notwithstanding any provisions in this Code  to  the
25    contrary, the Department of Professional Regulation shall not
26    be  liable  under  any federal or State law to any person for
27    any disclosure of information to the Illinois  Department  of
28    Public  Aid  under  this  paragraph 8 or for any other action
29    taken in good faith to comply with the requirements  of  this
30    paragraph 8.
31        9.   To perform such other duties as may be prescribed by
32    law.
33        The  Department  may,  when  a  fee  is  payable  to  the
34    Department for a wall certificate of registration provided by
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 1    the  Department  of Central Management Services, require that
 2    portion of the payment for printing and distribution costs be
 3    made directly or through the Department, to the Department of
 4    Central Management Services for  deposit  in  the  Paper  and
 5    Printing  Revolving Fund, the remainder shall be deposited in
 6    the General Revenue Fund.
 7        For the purpose of securing and preparing  evidence,  and
 8    for  the  purchase  of  controlled  substances,  professional
 9    services, and equipment necessary for enforcement activities,
10    recoupment   of  investigative  costs  and  other  activities
11    directed at suppressing the misuse and  abuse  of  controlled
12    substances,  including those activities set forth in Sections
13    504 and 508 of the Illinois Controlled  Substances  Act,  the
14    Director  and agents appointed and authorized by the Director
15    may  expend  such  sums  from  the  Professional   Regulation
16    Evidence  Fund  as  the  Director  deems  necessary  from the
17    amounts appropriated for that purpose and such  sums  may  be
18    advanced  to the agent when the Director deems such procedure
19    to be in the  public  interest.  Sums  for  the  purchase  of
20    controlled  substances,  professional services, and equipment
21    necessary for enforcement activities and other activities  as
22    set  forth in this Section shall be advanced to the agent who
23    is to make such purchase  from  the  Professional  Regulation
24    Evidence  Fund  on  vouchers  signed  by  the  Director.  The
25    Director and such agents are authorized to  maintain  one  or
26    more  commercial  checking  accounts  with  any State banking
27    corporation or corporations organized under or subject to the
28    Illinois Banking Act for the deposit and withdrawal of moneys
29    to be used for  the  purposes  set  forth  in  this  Section;
30    provided,  that  no  check  may be written nor any withdrawal
31    made from any such account except upon the written signatures
32    of 2 persons designated by the Director to write such  checks
33    and  make  such  withdrawals.  Vouchers for such expenditures
34    must be signed by the  Director  and  all  such  expenditures
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 1    shall  be  audited  by  the  Director  and the audit shall be
 2    submitted to the Department of  Central  Management  Services
 3    for approval.
 4        Whenever  the Department is authorized or required by law
 5    to  consider  some  aspect   of   criminal   history   record
 6    information  for  the  purpose  of carrying out its statutory
 7    powers and responsibilities, then, upon request  and  payment
 8    of fees in conformance with the requirements of subsection 22
 9    of  Section 55a of the Civil Administrative Code of Illinois,
10    the Department of State  Police  is  authorized  to  furnish,
11    pursuant   to   positive   identification,  such  information
12    contained in State files  as  is  necessary  to  fulfill  the
13    request.
14        The  provisions  of  this Section do not apply to private
15    business and vocational schools as defined by  Section  1  of
16    the Private Business and Vocational Schools Act.
17        Beginning  July  1,  1995, this Section does not apply to
18    those professions, trades, and occupations licensed under the
19    Real Estate License Act of 1999 1983 nor does it apply to any
20    permits, certificates, or other authorizations to do business
21    provided for in the Land Sales Registration Act  of  1989  or
22    the Illinois Real Estate Time-Share Act.
23    (Source:  P.A. 89-6, eff. 3-6-95; 89-23, eff. 7-1-95; 89-237,
24    eff. 8-4-95; 89-411, eff. 6-1-96; 89-626, eff. 8-9-96; 90-18,
25    eff. 7-1-97.)
26        Section  905-15.  The Residential Mortgage License Act of
27    1987 is amended by changing Section 1-4 as follows:
28        (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
29        Sec. 1-4.  Definitions.
30        (a)  "Residential real  property"  or  "residential  real
31    estate"  shall  mean  real  property  located  in  this State
32    improved by a one-to-four family dwelling used  or  occupied,
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 1    wholly  or  partly,  as  the home or residence of one or more
 2    persons  and  may  refer,  subject  to  regulations  of   the
 3    Commissioner,  to  unimproved  real property upon which those
 4    kinds dwellings are to be constructed.
 5        (b)  "Making a residential mortgage loan" or  "funding  a
 6    residential  mortgage  loan"  shall  mean for compensation or
 7    gain, either  directly  or  indirectly,  advancing  funds  or
 8    making  a commitment to advance funds to a loan applicant for
 9    a residential mortgage loan.
10        (c)  "Soliciting, processing, placing, or  negotiating  a
11    residential  mortgage  loan"  shall  mean for compensation or
12    gain, either directly or indirectly, accepting or offering to
13    accept  an  application  for  a  residential  mortgage  loan,
14    assisting or offering to  assist  in  the  processing  of  an
15    application  for  a  residential mortgage loan on behalf of a
16    borrower, or negotiating or offering to negotiate  the  terms
17    or conditions of a residential mortgage loan with a lender on
18    behalf  of  a  borrower  including,  but  not limited to, the
19    submission of credit packages for the  approval  of  lenders,
20    the   preparation   of   residential  mortgage  loan  closing
21    documents, including a closing in the name of a broker.
22        (d)  "Exempt entity" shall mean the following:
23             (1) (i)  Any banking organization or foreign banking
24        corporation licensed  by  the  Illinois  Commissioner  of
25        Banks and Real Estate or the United States Comptroller of
26        the Currency to transact business in this State; (ii) any
27        national  bank,  federally  chartered  savings  and  loan
28        association,  federal savings bank, federal credit union;
29        (iii) any  pension  trust,  bank  trust,  or  bank  trust
30        company;  (iv)  any savings and loan association, savings
31        bank, or credit union organized under the laws of this or
32        any other state; (v) any  Illinois  Consumer  Installment
33        Loan  Act licensee; (vi) any insurance company authorized
34        to transact business in  this  State;  (vii)  any  entity
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 1        engaged solely in commercial mortgage lending; (viii) any
 2        service  corporation of a savings and loan association or
 3        savings bank organized under the laws of  this  State  or
 4        the  service corporation of a federally chartered savings
 5        and loan association or savings bank having its principal
 6        place of business in this State,  other  than  a  service
 7        corporation licensed or entitled to reciprocity under the
 8        Real  Estate  License Act of 1999 1983; or (ix) any first
 9        tier subsidiary of a bank, the charter of which is issued
10        under  the  Illinois  Banking   Act   by   the   Illinois
11        Commissioner  of Banks and Real Estate, or the first tier
12        subsidiary of a  bank  chartered  by  the  United  States
13        Comptroller  of  the  Currency and that has its principal
14        place of business in this State, provided that the  first
15        tier  subsidiary  is  regularly  examined by the Illinois
16        Commissioner of Banks and Real Estate or the  Comptroller
17        of  the Currency, or a consumer compliance examination is
18        regularly conducted by the Federal Reserve Board.
19             (2)  Any  person  or  entity  making  or   acquiring
20        residential  mortgage loans with his or her own funds for
21        his  or  her  own  investment  without  intent  to  make,
22        acquire, or resell  more  than  10  residential  mortgage
23        loans in any one calendar year.
24             (3)  Any  person employed by a licensee to assist in
25        the performance of the activities regulated by  this  Act
26        who is compensated in any manner by only one licensee.
27             (4)  Any person licensed pursuant to the Real Estate
28        License  Act of 1999 1983, who engages only in the taking
29        of applications and credit and appraisal  information  to
30        forward  to a licensee or an exempt entity under this Act
31        and who is compensated by either a licensee or an  exempt
32        entity  under  this Act, but is not compensated by either
33        the buyer (applicant) or the seller.
34             (5)  Any individual,  corporation,  partnership,  or
HB2688 Engrossed            -95-               LRB9009844LDpk
 1        other   entity  that  originates,  services,  or  brokers
 2        residential  mortgage  loans,  as  these  activities  are
 3        defined in  this  Act,  and  who  or  which  receives  no
 4        compensation   for   those  activities,  subject  to  the
 5        Commissioner's regulations with regard to the nature  and
 6        amount of compensation.
 7             (6)  A  person who prepares supporting documentation
 8        for a residential mortgage loan application  taken  by  a
 9        licensee  and performs  ministerial functions pursuant to
10        specific  instructions  of  the  licensee   who   neither
11        requires  nor permits the preparer to exercise his or her
12        discretion or judgment; provided that  this  activity  is
13        engaged  in  pursuant  to  a  binding,  written agreement
14        between the licensee and the preparer that:
15                  (A)  holds the licensee fully  accountable  for
16             the preparer's action; and
17                  (B)  otherwise  meets  the requirements of this
18             Section  and  this  Act,  does  not  undermine   the
19             purposes  of  this  Act,  and  is  approved  by  the
20             Commissioner.
21        (e)  "Licensee"  or "residential mortgage licensee" shall
22    mean a person, partnership, association, corporation, or  any
23    other entity who or which is licensed pursuant to this Act to
24    engage in the activities regulated by this Act.
25        (f)  "Mortgage loan" "residential mortgage loan" or "home
26    mortgage loan" shall mean a loan to or for the benefit of any
27    natural  person  made  primarily  for  personal,  family,  or
28    household  use,  primarily  secured  by  either a mortgage on
29    residential real property or certificates of stock  or  other
30    evidence  of  ownership  interests  in and proprietary leases
31    from,  corporations,  partnerships,  or   limited   liability
32    companies  formed for the purpose of cooperative ownership of
33    residential real property, all located in Illinois.
34        (g)  "Lender"  shall  mean   any   person,   partnership,
HB2688 Engrossed            -96-               LRB9009844LDpk
 1    association,  corporation,  or  any  other  entity who either
 2    lends or invests money in residential mortgage loans.
 3        (h)  "Ultimate equitable owner" shall mean a person  who,
 4    directly   or  indirectly,  owns  or  controls  an  ownership
 5    interest  in  a  corporation,  foreign   corporation,   alien
 6    business  organization,  trust, or any other form of business
 7    organization  regardless  of  whether  the  person  owns   or
 8    controls  the  ownership interest through one or more persons
 9    or  one  or  more  proxies,  powers  of  attorney,  nominees,
10    corporations, associations, partnerships, trusts, joint stock
11    companies, or other entities or devices, or  any  combination
12    thereof.
13        (i)  "Residential  mortgage  financing transaction" shall
14    mean the negotiation, acquisition, sale, or  arrangement  for
15    or  the  offer to negotiate, acquire, sell, or arrange for, a
16    residential  mortgage  loan  or  residential  mortgage   loan
17    commitment.
18        (j)  "Personal  residence  address"  shall  mean a street
19    address and shall not include a post office box number.
20        (k)  "Residential mortgage loan commitment" shall mean  a
21    contract for residential mortgage loan financing.
22        (l)  "Party   to   a   residential   mortgage   financing
23    transaction" shall mean a borrower, lender, or loan broker in
24    a residential mortgage financing transaction.
25        (m)  "Payments"  shall  mean payment of all or any of the
26    following: principal, interest and escrow reserves for taxes,
27    insurance and other related reserves, and  reimbursement  for
28    lender advances.
29        (n)  "Commissioner"  shall mean the Commissioner of Banks
30    and Real Estate or a person authorized by  the  Commissioner,
31    the  Office  of Banks and Real Estate Act, or this Act to act
32    in the Commissioner's stead.
33        (o)  "Loan   brokering",   "brokering",   or   "brokerage
34    service" shall mean the act of helping to obtain from another
HB2688 Engrossed            -97-               LRB9009844LDpk
 1    entity, for a borrower, a loan secured  by  residential  real
 2    estate  situated  in  Illinois  or  assisting  a  borrower in
 3    obtaining a loan secured by residential real estate  situated
 4    in  Illinois in return for consideration to be paid by either
 5    the borrower or the lender including,  but  not  limited  to,
 6    contracting for the delivery of residential mortgage loans to
 7    a  third party lender and soliciting, processing, placing, or
 8    negotiating residential mortgage loans.
 9        (p)  "Loan broker"  or  "broker"  shall  mean  a  person,
10    partnership,  association,  corporation, or limited liability
11    company,   other   than    those    persons,    partnerships,
12    associations,  corporations,  or  limited liability companies
13    exempted from licensing pursuant to Section  1-4,  subsection
14    (d),  of  this  Act, who performs the activities described in
15    subsections (c) and (o) of this Section.
16        (q)  "Servicing" shall mean the collection or  remittance
17    for  or  the  right or obligation to collect or remit for any
18    lender,  noteowner,  noteholder,  or  for  a  licensee's  own
19    account, of payments, interests, principal, and  trust  items
20    such  as hazard insurance and taxes on a residential mortgage
21    loan in accordance with the terms of the residential mortgage
22    loan; and includes loan payment follow-up,  delinquency  loan
23    follow-up,   loan  analysis  and  any  notifications  to  the
24    borrower that are necessary to enable the  borrower  to  keep
25    the loan current and in good standing.
26        (r)  "Full service office" shall mean office and staff in
27    Illinois    reasonably   adequate   to   handle   efficiently
28    communications, questions, and other matters relating to  any
29    application  for,  or  an  existing  home mortgage secured by
30    residential real estate situated in Illinois with respect  to
31    which   the   licensee  is  brokering,  funding  originating,
32    purchasing, or servicing.  The management  and  operation  of
33    each  full  service  office  must  include observance of good
34    business practices such as adequate, organized, and  accurate
HB2688 Engrossed            -98-               LRB9009844LDpk
 1    books  and  records;  ample  phone  lines, hours of business,
 2    staff training and supervision, and provision for a mechanism
 3    to resolve consumer inquiries, complaints, and problems.  The
 4    Commissioner shall issue regulations  with  regard  to  these
 5    requirements  and  shall  include an evaluation of compliance
 6    with this Section in his or her periodic examination of  each
 7    licensee.
 8        (s)  "Purchasing" shall mean the purchase of conventional
 9    or  government-insured  mortgage loans secured by residential
10    real estate situated in Illinois from either  the  lender  or
11    from the secondary market.
12        (t)  "Borrower" shall mean the person or persons who seek
13    the services of a loan broker, originator, or lender.
14        (u)  "Originating"  shall mean the issuing of commitments
15    for and funding of residential mortgage loans.
16        (v)  "Loan brokerage  agreement"  shall  mean  a  written
17    agreement  in  which  a  broker  or  loan broker agrees to do
18    either of the following:
19             (1)  obtain a  residential  mortgage  loan  for  the
20        borrower   or   assist   the   borrower  in  obtaining  a
21        residential mortgage loan; or
22             (2)  consider making a residential mortgage loan  to
23        the borrower.
24        (w)  "Advertisement"    shall   mean   the   attempt   by
25    publication,  dissemination,  or   circulation   to   induce,
26    directly   or   indirectly,   any  person  to  enter  into  a
27    residential mortgage loan agreement or  residential  mortgage
28    loan  brokerage  agreement  relative to a mortgage secured by
29    residential real estate situated in Illinois.
30        (x)  "Residential  Mortgage   Board"   shall   mean   the
31    Residential  Mortgage  Board  created  in Section 1-5 of this
32    Act.
33        (y)  "Government-insured mortgage loan"  shall  mean  any
34    mortgage loan made on the security of residential real estate
HB2688 Engrossed            -99-               LRB9009844LDpk
 1    insured by the Department of Housing and Urban Development or
 2    Farmers  Home  Loan  Administration,  or  guaranteed  by  the
 3    Veterans Administration.
 4        (z)  "Annual  audit"  shall mean a certified audit of the
 5    licensee's books and records and systems of internal  control
 6    performed by a certified public accountant in accordance with
 7    generally   accepted   accounting  principles  and  generally
 8    accepted auditing standards.
 9        (aa)  "Financial institution" shall mean  a  savings  and
10    loan  association,  savings  bank,  credit  union,  or a bank
11    organized under the laws of Illinois or a  savings  and  loan
12    association,  savings  bank, credit union or a bank organized
13    under the laws of the  United  States  and  headquartered  in
14    Illinois.
15        (bb)  "Escrow agent" shall mean a third party, individual
16    or  entity  charged with the fiduciary obligation for holding
17    escrow funds on a residential  mortgage  loan  pending  final
18    payout  of  those  funds  in accordance with the terms of the
19    residential mortgage loan.
20        (cc)  "Net worth" shall have the meaning ascribed thereto
21    in Section 3-5 of this Act.
22        (dd)  "Affiliate" shall mean:
23             (1)  any  entity  that  directly  controls   or   is
24        controlled  by the licensee and any other company that is
25        directly affecting activities regulated by this Act  that
26        is controlled by the company that controls the licensee;
27             (2)  any entity:
28                  (A)  that    is    controlled,    directly   or
29             indirectly, by a trust or otherwise, by or  for  the
30             benefit   of   shareholders   who   beneficially  or
31             otherwise control, directly or indirectly, by  trust
32             or  otherwise,  the  licensee  or  any  company that
33             controls the licensee; or
34                  (B)  a majority of the directors or trustees of
HB2688 Engrossed            -100-              LRB9009844LDpk
 1             which constitute a majority of the  persons  holding
 2             any  such  office  with  the licensee or any company
 3             that controls the licensee;
 4             (3)  any company, including a real estate investment
 5        trust, that is sponsored and  advised  on  a  contractual
 6        basis  by  the licensee or any subsidiary or affiliate of
 7        the licensee.
 8        The Commissioner may define by rule  and  regulation  any
 9    terms   used   in  this  Act  for  the  efficient  and  clear
10    administration of this Act.
11        (ee)  "First  tier  subsidiary"  shall  be   defined   by
12    regulation  incorporating  the comparable definitions used by
13    the Office  of  the  Comptroller  of  the  Currency  and  the
14    Illinois Commissioner of Banks and Real Estate.
15        (ff)  "Gross   delinquency   rate"   means  the  quotient
16    determined by dividing (1) the  sum  of  (i)  the  number  of
17    government-insured   residential  mortgage  loans  funded  or
18    purchased by a licensee in the preceding calendar  year  that
19    are   delinquent   and   (ii)   the  number  of  conventional
20    residential  mortgage  loans  funded  or  purchased  by   the
21    licensee  in  the preceding calendar year that are delinquent
22    by (2) the  sum  of  (i)  the  number  of  government-insured
23    residential   mortgage  loans  funded  or  purchased  by  the
24    licensee in the preceding calendar year and (ii)  the  number
25    of   conventional   residential   mortgage  loans  funded  or
26    purchased by the licensee in the preceding calendar year.
27        (gg)  "Delinquency rate factor" means the factor  set  by
28    rule  of  the  Commissioner that is multiplied by the average
29    gross delinquency rate of licensees, determined annually  for
30    the  immediately  preceding calendar year, for the purpose of
31    determining  which  licensees  shall  be  examined   by   the
32    Commissioner  pursuant  to  subsection  (b) of Section 4-8 of
33    this Act.
34    (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.)
HB2688 Engrossed            -101-              LRB9009844LDpk
 1        Section  905-20.  The Title Insurance Act is  amended  by
 2    changing Section 3 as follows:
 3        (215 ILCS 155/3) (from Ch. 73, par. 1403)
 4        Sec.  3.   As  used  in  this  Act, the words and phrases
 5    following  shall  have  the  following  meanings  unless  the
 6    context requires otherwise:
 7        (1)  "Business of guaranteeing or insuring titles to real
 8    estate"  means  the  making  as  insurer  or  guarantor,   or
 9    proposing to make as insurer or guarantor, of any contract or
10    policy  of  title  insurance; the transacting or proposing to
11    transact, any phase of  title  insurance,  including,  as  an
12    insurer  or  guarantor,  examination  of title, solicitation,
13    negotiation preliminary to the execution  of  a  contract  of
14    title  insurance,  and  execution  of  a  contract  of  title
15    insurance, insuring and transacting matters subsequent to the
16    execution  of  the contract and arising out of it, other than
17    reinsurance; the performance of any  service  in  conjunction
18    with  the  issuance  of  any  contract  or  policy  of  title
19    insurance,  including  but not limited to the handling of any
20    escrow, settlement  or  closing,  if  conducted  by  a  title
21    insurance  company or title insurance agent; or the doing, or
22    proposing to do, any business in substance equivalent to  any
23    of the foregoing in a manner designed to evade the provisions
24    of this Act.
25        (2)  "Title insurance company" means any domestic company
26    organized  under  the  laws  of this State for the purpose of
27    conducting the business of guaranteeing or insuring titles to
28    real estate and any title insurance company  organized  under
29    the  laws  of  another  State,  the  District  of Columbia or
30    foreign government and authorized to transact the business of
31    guaranteeing or insuring titles to real estate in this State.
32        (3)  "Title  insurance  agent"  means  a  person,   firm,
33    partnership,  association,  corporation or other legal entity
HB2688 Engrossed            -102-              LRB9009844LDpk
 1    registered by a title insurance  company  and  authorized  by
 2    such company to determine insurability of title in accordance
 3    with generally acceptable underwriting rules and standards in
 4    reliance  on  either  the  public records or a search package
 5    prepared from a title  plant,  or  both,  and  authorized  in
 6    addition to do any of the following:  act as an escrow agent,
 7    solicit   title  insurance,  collect  premiums,  issue  title
 8    reports, binders or commitments to insure and policies in its
 9    behalf, provided, however, the term "title  insurance  agent"
10    shall  not  include  officers  and  salaried employees of any
11    title insurance company.
12        (4)  "Producer of title business" is  any  person,  firm,
13    partnership,  association,  corporation or other legal entity
14    engaged in this State in the trade, business,  occupation  or
15    profession  of  (i)  buying  or  selling  interests  in  real
16    property,  (ii)  making  loans  secured  by interests in real
17    property, or (iii) acting  as  broker,  agent,  attorney,  or
18    representative  of  natural  persons  or other legal entities
19    that buy or sell interests in  real  property  or  that  lend
20    money with such interests as security.
21        (5)  "Associate"  is  any firm, association, partnership,
22    corporation or other legal entity  organized  for  profit  in
23    which a producer of title business is a director, officer, or
24    partner thereof, or owner of a financial interest, as defined
25    herein,  in  such  entity; any legal entity that controls, is
26    controlled by, or is under common control with a producer  of
27    title  business;  and any natural person or legal entity with
28    whom  a  producer  of  title  business  has  any   agreement,
29    arrangement,  or  understanding  or  pursues  any  course  of
30    conduct  the  purpose  of which is to evade the provisions of
31    this Act.
32        (6)  "Financial  interest"  is  any  ownership  interest,
33    legal or beneficial,  except  ownership  of  publicly  traded
34    stock.
HB2688 Engrossed            -103-              LRB9009844LDpk
 1        (7)  "Refer"  means to place or cause to be placed, or to
 2    exercise any power or influence over  the  placing  of  title
 3    business, whether or not the consent or approval of any other
 4    person is sought or obtained with respect to the referral.
 5        (8)  "Escrow  Agent" means any title insurance company or
 6    any title  insurance  agent  acting  on  behalf  of  a  title
 7    insurance company which receives deposits, in trust, of funds
 8    or documents, or both, for the purpose of effecting the sale,
 9    transfer, encumbrance or lease of real property to be held by
10    such  escrow  agent  until title to the real property that is
11    the subject of the escrow is in a prescribed condition.
12        (9)  "Independent  Escrowee"  means  any  firm,   person,
13    partnership,  association, corporation or other legal entity,
14    other than a title insurance company  or  a  title  insurance
15    agent,  which  receives  deposits,  in  trust,  of  funds  or
16    documents,  or  both,  for the purpose of effecting the sale,
17    transfer, encumbrance or lease of real property to be held by
18    such escrowee until title to the real property  that  is  the
19    subject  of the escrow is in a prescribed condition.  Federal
20    and State chartered banks,  savings  and  loan  associations,
21    credit  unions,  mortgage  bankers,  banks or trust companies
22    authorized  to  do  business  under  the  Illinois  Corporate
23    Fiduciary Act, licensees under the Consumer Installment  Loan
24    Act, real estate brokers licensed pursuant to the Real Estate
25    License  Act  of 1999 1983, as such Acts are now or hereafter
26    amended,  and  licensed  attorneys  when   engaged   in   the
27    attorney-client  relationship  are  exempt  from  the  escrow
28    provisions of this Act.
29        (10)  "Single risk" means the insured amount of any title
30    insurance policy, except that where 2 or more title insurance
31    policies are issued simultaneously covering different estates
32    in the same real property, "single risk" means the sum of the
33    insured  amounts  of  all such title insurance policies.  Any
34    title insurance policy insuring a mortgage interest, a  claim
HB2688 Engrossed            -104-              LRB9009844LDpk
 1    payment  under  which  reduces the insured amount of a fee or
 2    leasehold  title  insurance  policy,  shall  be  excluded  in
 3    computing the amount of a single risk to the extent that  the
 4    insured  amount  of  the mortgage title insurance policy does
 5    not exceed the insured amount of the fee or  leasehold  title
 6    insurance policy.
 7        (11)  "Department"  means  the  Department  of  Financial
 8    Institutions.
 9        (12)  "Director"   means   the   Director   of  Financial
10    Institutions.
11    (Source: P.A. 86-239.)
12        Section 905-21.  The  Environmental  Health  Practitioner
13    Licensing Act is amended by changing Section 21 as follows:
14        (225 ILCS 37/21)
15        Sec. 21.  Grandfather provision.
16        (a)  A person who, on June 30, the effective date of this
17    amendatory  Act of 1995, was certified by his or her employer
18    as  serving  as  a   sanitarian   or   environmental   health
19    practitioner  in  environmental health practice in this State
20    may be issued a license upon the filing of an application and
21    within 12 months, by paying the required fees, and by passing
22    the examination.
23        (b)  The Department may, upon application and payment  of
24    the  required  fee  within  12  months,  issue a license to a
25    person who  holds  a  current  license  as  a  sanitarian  or
26    environmental  health  practitioner  issued  by  the Illinois
27    Environmental Health Association  or  National  Environmental
28    Health Association.
29    (Source: P.A. 89-61, eff. 6-30-95.)
30        Section  905-22.  The Illinois Professional Land Surveyor
31    Act of 1989 is amended by changing Section 20 as follows:
HB2688 Engrossed            -105-              LRB9009844LDpk
 1        (225 ILCS 330/20) (from Ch. 111, par. 3270)
 2        Sec. 20.  Endorsement.  Upon payment of the required fee,
 3    an applicant who is a  Professional  Land  Surveyor,  a  Land
 4    Surveyor-in-Training,  or registered or licensed or otherwise
 5    legally recognized as a  Land  Surveyor  under  the  laws  of
 6    another  state  or  territory  of  the  United  States may be
 7    granted a license as an Illinois Professional  Land  Surveyor
 8    by  the  Department  with  approval  of  the  Board  upon the
 9    following conditions:
10        (a)  That  the  applicant  meets  the  requirements   for
11    licensing  in  this  State,  and  that  the  requirements for
12    licensing or other legal recognition of Land Surveyors in the
13    particular state or territory were, at the date  of  issuance
14    of the license or certificate, equivalent to the requirements
15    then  in  effect  in  the  State  of  Illinois;  however, the
16    applicant shall be exempt from the requirements of  item  (5)
17    of  subsection (a) of Section 12 of this Act if he or she (1)
18    applied for a license under this Section between September 1,
19    1996 and October 31, 1996 and (2) has 10  or  more  years  of
20    supervised experience as a land surveyor; and
21        (b)  That   the   applicant   passes   a   jurisdictional
22    examination  to  determine  the  applicant's knowledge of the
23    surveying tasks unique to the State of Illinois and the  laws
24    pertaining thereto.
25    (Source: P.A. 86-987.)
26        Section  905-23.  The Barber, Cosmetology, Esthetics, and
27    Nail Technology Act of 1985 is amended  by  changing  Section
28    3C-4 as follows:
29        (225 ILCS 410/3C-4) (from Ch. 111, par. 1703C-4)
30        Sec.     3C-4.  Pre-existing    practitioners;    license
31    requirements for nail technicians.
32        (a)  Until  December  31,  1995,  an  applicant  who  was
HB2688 Engrossed            -106-              LRB9009844LDpk
 1    practicing nail technology prior to  the  effective  date  of
 2    this  amendatory  Act  of 1991 shall be issued a license as a
 3    nail technician if the applicant meets all of  the  following
 4    requirements:
 5             (1)  Completes  and  submits  to  the Department the
 6        necessary forms furnished by the Department along with an
 7        application fee of $20.
 8             (2)  Is at least 16 years of age.
 9             (3)  Has graduated from an eighth  grade  elementary
10        school or its equivalent.
11             (4)  Has  one  year of full-time (40 hours per week)
12        practical experience or 2 years of  part-time  (not  less
13        than  20  hours  per week) practical experience as a nail
14        technician prior to the effective date of this amendatory
15        Act of  1991,  or  has  200  hours  of  certifiable  nail
16        technology   education   in   a   cosmetology  school  or
17        vocational  technical  school.    The   nail   technology
18        education  must  have  been  obtained prior to January 1,
19        1994.
20             (5)  Submits a  written  affidavit  stating  a  nail
21        technician's  practical  work  experience  executed by an
22        employer, co-worker, or client; or a copy  of  a  current
23        business  license, where applicable. For purposes of this
24        item (5), work in sales shall not be considered practical
25        work experience.
26        (b)  A  person  who  applies  for  licensure  under  this
27    Section between January 1, 1999 1997  and  January  31,  1999
28    1997,  who  has been practicing nail technology for a minimum
29    of 6 years in this State, shall  be  issued  a  license  upon
30    proof  of  such experience and meeting all other requirements
31    for licensure under this Section.
32    (Source: P.A. 89-125, eff. 7-7-95; 89-706, eff. 1-31-97.)
33        Section 905-24.  The Private  Detective,  Private  Alarm,
HB2688 Engrossed            -107-              LRB9009844LDpk
 1    Private  Security,  and  Locksmith  Act of 1993 is amended by
 2    changing Sections 75 and 77 as follows:
 3        (225 ILCS 446/75)
 4        Sec.  75.  Qualifications  for   licensure   and   agency
 5    certification.
 6        (a)  Private Detective.  A person is qualified to receive
 7    a  license  as  a private detective if he or she meets all of
 8    the following requirements:
 9             (1)  Is at least 21 years of age.
10             (2)  Has not been convicted in any  jurisdiction  of
11        any  felony  or  at  least 10 years have expired from the
12        time of discharge from any sentence imposed for a felony.
13             (3)  Is of good moral character.  Good character  is
14        a  continuing  requirement  of  licensure.  Conviction of
15        crimes not listed in paragraph (2) of subsection  (a)  of
16        this  Section may be used in determining moral character,
17        but does not operate as an absolute bar to licensure.
18             (4)  Has not been declared by any court of competent
19        jurisdiction to be incompetent by  reason  of  mental  or
20        physical  defect  or  disease  unless  a  court has since
21        declared him or her to be competent.
22             (5)  Is not suffering from habitual  drunkenness  or
23        from narcotic addiction or dependence.
24             (6)  Has  a minimum of 3 years experience out of the
25        5 years immediately  preceding  his  or  her  application
26        working full-time for a licensed private detective agency
27        as  a  registered  private  detective  employee or with 3
28        years experience out of the 5 years immediately preceding
29        his  or  her  application   employed   as   a   full-time
30        investigator  in a law enforcement agency of a federal or
31        State political subdivision, approved by  the  Board  and
32        the  Department;  or  an  applicant  who  has  obtained a
33        baccalaureate degree in police science or a related field
HB2688 Engrossed            -108-              LRB9009844LDpk
 1        or a  business  degree  from  an  accredited  college  or
 2        university  shall  be  given  credit for 2 of the 3 years
 3        experience required under this Section.  An applicant who
 4        has obtained an associate degree in police science  or  a
 5        related  field  or in business from an accredited college
 6        or university shall be given credit  for  one  of  the  3
 7        years experience required under this Section.
 8             (7)  Has  not  been dishonorably discharged from the
 9        armed services of the United States.
10             (8)  Has   successfully   passed   an    examination
11        authorized  by  the  Department.  The  examination  shall
12        include  subjects  reasonably  related  to the activities
13        licensed so as to  provide  for  the  protection  of  the
14        health and safety of the public.
15             (9)  Has  not violated Section 15, 20, or 25 of this
16        Act, but this requirement does not operate as an absolute
17        bar to licensure.
18        It is the  responsibility  of  the  applicant  to  obtain
19    liability   insurance   in   an   amount  and  coverage  type
20    appropriate  as  determined  by  rule  for  the   applicant's
21    individual   business  circumstances.   The  applicant  shall
22    provide evidence of insurance to the Department before  being
23    issued a license.  This insurance requirement is a continuing
24    requirement  for  licensure.    Failure to maintain insurance
25    shall  result  in  cancellation  of  the   license   by   the
26    Department.
27        (b)  Private  security contractor.  A person is qualified
28    to receive a license as a private security contractor  if  he
29    or she meets all of the following requirements:
30             (1)  Is at least 21 years of age.
31             (2)  Has  not  been convicted in any jurisdiction of
32        any felony or at least 10 years  have  expired  from  the
33        time of discharge from any sentence imposed for a felony.
34             (3)  Is   of   good  moral  character.   Good  moral
HB2688 Engrossed            -109-              LRB9009844LDpk
 1        character  is  a  continuing  requirement  of  licensure.
 2        Convictions of crimes not  listed  in  paragraph  (2)  of
 3        subsection (b) of this Section may be used in determining
 4        moral character, but do not operate as an absolute bar to
 5        licensure.
 6             (4)  Has not been declared by any court of competent
 7        jurisdiction  to  be  incompetent  by reason of mental or
 8        physical defect or  disease  unless  a  court  has  since
 9        declared him or her to be competent.
10             (5)  Is  not  suffering from habitual drunkenness or
11        from narcotic addiction or dependence.
12             (6)  Has a minimum of 3 years experience out of  the
13        5 years immediately preceding his or her application as a
14        full-time manager or administrator for a licensed private
15        security  contractor agency or a manager or administrator
16        of a proprietary security force of  30  or  more  persons
17        registered   with   the   Department,  or  with  3  years
18        experience out of the 5 years immediately  preceding  his
19        or  her  application  as  a full-time supervisor in a law
20        enforcement  agency  of  a  federal  or  State  political
21        subdivision, approved by the Board and the Department; or
22        an applicant who has obtained a baccalaureate  degree  in
23        police  science  or  a related field or a business degree
24        from an accredited college or university shall  be  given
25        credit  for  2  of  the 3 years experience required under
26        this Section.  An applicant who has obtained an associate
27        degree in  police  science  or  a  related  field  or  in
28        business  from  an accredited college or university shall
29        be given  credit  for  one  of  the  3  years  experience
30        required under this Section.
31             (7)  Has  not  been dishonorably discharged from the
32        armed services of the United States.
33             (8)  Has   successfully   passed   an    examination
34        authorized  by  the  Department.  The  examination  shall
HB2688 Engrossed            -110-              LRB9009844LDpk
 1        include  subjects  reasonably  related  to the activities
 2        licensed so as to  provide  for  the  protection  of  the
 3        health and safety of the public.
 4             (9)  Has  not violated Section 15, 20, or 25 of this
 5        Act, but this requirement does not operate as an absolute
 6        bar to licensure.
 7             (10)  It is the responsibility of the  applicant  to
 8        obtain  liability  insurance  in amount and coverage type
 9        appropriate as determined by  rule  for  the  applicant's
10        individual  business  circumstances.  The applicant shall
11        provide evidence of insurance to  the  Department  before
12        being  issued a license.  This insurance requirement is a
13        continuing  requirement  for   licensure.    Failure   to
14        maintain  insurance  shall  result in cancellation of the
15        license by the Department.
16        (c)  Private alarm contractor.  A person is qualified  to
17    receive  a license as a private alarm contractor if he or she
18    meets all of the following requirements:
19             (1)  Is at least 21 years of age.
20             (2)  Has not been convicted in any  jurisdiction  of
21        any  felony  or  at  least 10 years have expired from the
22        time of discharge from any sentence imposed for a felony.
23             (3)  Is  of  good  moral  character.    Good   moral
24        character  is  a  continuing  requirement  of  licensure.
25        Convictions  of  crimes  not  listed  in paragraph (2) of
26        subsection (c) of this Section may be used in determining
27        moral character, but do not operate as an absolute bar to
28        licensure.
29             (4)  Has not been declared by any court of competent
30        jurisdiction to be incompetent by  reason  of  mental  or
31        physical  defect  or  disease  unless  a  court has since
32        declared him or her to be competent.
33             (5)  Is not suffering from habitual  drunkenness  or
34        from narcotic addiction or dependence.
HB2688 Engrossed            -111-              LRB9009844LDpk
 1             (6)  Has  not  been dishonorably discharged from the
 2        armed services of the United States.
 3             (7)  Has a minimum of 3 years experience out of  the
 4        5  years immediately preceding application as a full time
 5        manager or administrator for  an  agency  licensed  as  a
 6        private  alarm  contractor  agency, or for an entity that
 7        designs, sells, installs,  services,  or  monitors  alarm
 8        systems  which  in  the  judgment  of the Board satisfies
 9        standards of alarm industry competence. An individual who
10        has received a 4 year degree in electrical engineering or
11        a related field from a  program  approved  by  the  Board
12        shall  be  given  credit  for 2 years of experience under
13        this  item  (7).   An  individual  who  has  successfully
14        completed a national certification  program  approved  by
15        the   Board  shall  be  given  credit  for  one  year  of
16        experience under this item (7).
17             (8)  Has   successfully   passed   an    examination
18        authorized  by  the  Department.    The examination shall
19        include subjects reasonably  related  to  the  activities
20        licensed  so  as  to  provide  for  the protection of the
21        health and safety of the public.
22             (9)  Has not violated Section 15, 20, or 25 of  this
23        Act, but this requirement does not operate as an absolute
24        bar to licensure.
25             (10)  It  is  the responsibility of the applicant to
26        obtain liability insurance in an amount and coverage type
27        appropriate as determined by  rule  for  the  applicant's
28        individual  business  circumstances.  The applicant shall
29        provide evidence of insurance to  the  Department  before
30        being  issued a license.  This insurance requirement is a
31        continuing  requirement  for  licensure.     Failure   to
32        maintain  insurance  shall  result in cancellation of the
33        license by the Department.
34        Alternatively, a person is qualified to receive a license
HB2688 Engrossed            -112-              LRB9009844LDpk
 1    as  a  private   alarm   contractor   without   meeting   the
 2    requirements  of  items (7), (8), and (9) of this subsection,
 3    if he or she:
 4             (i)  applies for a license between September 1, 1998
 5        and September 15, 1998, in writing, on forms supplied  by
 6        the Department;
 7             (ii)  provides  proof  to  the Department that he or
 8        she was engaged in the alarm contracting business  on  or
 9        before January 1, 1984;
10             (iii)  submits  the photographs, fingerprints, proof
11        of insurance, and current license  fee  required  by  the
12        Department; and
13             (iv)  has not violated Section 25 of this Act.
14        (d)  Locksmith.   A  person  is  qualified  to  receive a
15    license as a  locksmith  if  he  or  she  meets  all  of  the
16    following requirements:
17             (1)  Is at least 18 years of age.
18             (2)  Has  not violated any provisions of Section 120
19        of this Act.
20             (3)  Has not been convicted in any  jurisdiction  of
21        any  felony  or  at  least 10 years have expired from the
22        time of discharge from any sentence imposed for a felony.
23             (4)  Is  of  good  moral  character.    Good   moral
24        character  is  a  continuing  requirement  of  licensure.
25        Convictions  of  crimes  not  listed  in paragraph (3) of
26        subsection (d) of this Section may be used in determining
27        moral character, but do not operate as an absolute bar to
28        licensure.
29             (5)  Has not been declared by any court of competent
30        jurisdiction to be incompetent by  reason  of  mental  or
31        physical  defect  or  disease  unless  a  court has since
32        declared him or her to be competent.
33             (6)  Is not suffering from habitual  drunkenness  or
34        from narcotic addiction or dependence.
HB2688 Engrossed            -113-              LRB9009844LDpk
 1             (7)  Has  not  been dishonorably discharged from the
 2        armed services of the United States.
 3             (8)  Has passed an  examination  authorized  by  the
 4        Department in the theory and practice of the profession.
 5             (9)  Has   submitted  to  the  Department  proof  of
 6        insurance  sufficient  for  the   individual's   business
 7        circumstances.   The  Department,  with  input  from  the
 8        Board,   shall   promulgate   rules   specifying  minimum
 9        insurance requirements.  This insurance requirement is  a
10        continuing   requirement   for   licensure.   Failure  to
11        maintain insurance shall result in  the  cancellation  of
12        the license by the Department.  A locksmith employed by a
13        licensed  locksmith  agency  or  employed  by  a  private
14        concern  may  provide  proof that his or her actions as a
15        locksmith are covered by the  insurance  of  his  or  her
16        employer.
17        (e)  Private  detective  agency.   Upon  payment  of  the
18    required  fee  and  proof  that the applicant has a full-time
19    Illinois licensed private detective in  charge,  which  is  a
20    continuing   requirement   for   agency   certification,  the
21    Department shall issue, without examination, a certificate as
22    a private detective agency to any of the following:
23             (1)  An individual who  submits  an  application  in
24        writing  and  who  is  a licensed private detective under
25        this Act.
26             (2)  A  firm  or   association   that   submits   an
27        application in writing and all of the members of the firm
28        or association are licensed private detectives under this
29        Act.
30             (3)  A  duly  incorporated or registered corporation
31        allowed to do business in Illinois that is authorized  by
32        its  articles  of incorporation to engage in the business
33        of conducting a detective agency, provided at  least  one
34        officer  or  executive  employee is licensed as a private
HB2688 Engrossed            -114-              LRB9009844LDpk
 1        detective under this Act and all unlicensed officers  and
 2        directors  of  the  corporation  are  determined  by  the
 3        Department to be persons of good moral character.
 4        No  private  detective  may  be  the private detective in
 5    charge for more than one agency except for an individual who,
 6    on the effective date of this Act, is currently and  actively
 7    a licensee for more than one agency.  Upon written request by
 8    a  representative  of an agency within 10 days after the loss
 9    of a licensee in charge of an agency because of the death  of
10    that individual or because of an unanticipated termination of
11    the employment of that individual, the Department shall issue
12    a  temporary  permit  allowing  the continuing operation of a
13    previously licensed agency.  No  temporary  permit  shall  be
14    valid  for  more than 90 days.  An extension of an additional
15    90 days may be granted by the Department for good cause shown
16    upon written request by the representative of the agency.  No
17    more than 2 extensions may be granted  to  any  agency.    No
18    temporary  permit  shall  be  issued  for  the  loss  of  the
19    detective  in  charge  because  of disciplinary action by the
20    Department.
21        (f)  Private alarm contractor agency.   Upon  receipt  of
22    the required fee and proof that the applicant has a full-time
23    Illinois  licensed  private alarm contractor in charge, which
24    is a continuing requirement  for  agency  certification,  the
25    Department shall issue, without examination, a certificate as
26    a private alarm contractor agency to any of the following:
27             (1)  An  individual  who  submits  an application in
28        writing and who is a licensed  private  alarm  contractor
29        under this Act.
30             (2)  A   firm   or   association   that  submits  an
31        application in writing that all of  the  members  of  the
32        firm   or   association   are   licensed   private  alarm
33        contractors under this Act.
34             (3)  A duly incorporated or  registered  corporation
HB2688 Engrossed            -115-              LRB9009844LDpk
 1        allowed  to do business in Illinois that is authorized by
 2        its articles of incorporation to engage in  the  business
 3        of conducting a private alarm contractor agency, provided
 4        at least one officer or executive employee is licensed as
 5        a  private  alarm  contractor  under  this  Act  and  all
 6        unlicensed  officers and directors of the corporation are
 7        determined by the Department to be persons of good  moral
 8        character.
 9        No  private  alarm  contractor  may  be the private alarm
10    contractor in charge for more than one agency except for  any
11    individual  who,  on  the  effective  date  of  this  Act, is
12    currently and actively a licensee for more than  one  agency.
13    Upon  written request by a representative of an agency within
14    10 days after the loss of a licensed private alarm contractor
15    in  charge  of  an  agency  because  of  the  death  of  that
16    individual or because of the unanticipated termination of the
17    employment of that individual, the Department shall  issue  a
18    temporary  permit  allowing  the  continuing  operation  of a
19    previously licensed agency.  No  temporary  permit  shall  be
20    valid  for  more than 90 days.  An extension of an additional
21    90 days may be granted by the Department for good cause shown
22    and upon written request by the representative of the agency.
23    No more than 2 extensions may be granted to any  agency.   No
24    temporary permit shall be issued for the loss of the licensee
25    in charge because of disciplinary action by the Department.
26        (g)  Private security contractor agency.  Upon receipt of
27    the required fee and proof that the applicant has a full-time
28    Illinois  licensed  private  security  contractor  in charge,
29    which is continuing requirement for agency certification, the
30    Department shall issue, without examination, a certificate as
31    a private security contractor agency to any of the following:
32             (1)  An individual who  submits  an  application  in
33        writing and who is a licensed private security contractor
34        under this Act.
HB2688 Engrossed            -116-              LRB9009844LDpk
 1             (2)  A   firm   or   association   that  submits  an
 2        application in  writing  that  all  of  the  members  are
 3        licensed private security contractors under this Act.
 4             (3)  A  duly  incorporated or registered corporation
 5        allowed to do business in Illinois that is authorized  by
 6        its  articles  of incorporation to engage in the business
 7        of  conducting  a  private  security  contractor  agency,
 8        provided at least one officer or  executive  employee  is
 9        licensed  as a private security contractor under this Act
10        and  all  unlicensed  officers  and  directors   of   the
11        corporation  are  determined  by  the  Department  to  be
12        persons of good moral character.
13        No   private  security  contractor  may  be  the  private
14    security contractor in charge for more than one agency except
15    for any individual who, on the effective date of this Act, is
16    currently and actively a licensee for more than  one  agency.
17    Upon written request by a representative of the agency within
18    10  days  after the loss of a licensee in charge of an agency
19    because of the death of that individual  or  because  of  the
20    unanticipated   termination   of   the   employment  of  that
21    individual, the Department shall  issue  a  temporary  permit
22    allowing  the  continuing  operation of a previously licensed
23    agency.  No temporary permit shall be valid for more than  90
24    days.   An  extension of an additional 90 days may be granted
25    upon written request by the representative of the agency.  No
26    more than 2 extensions may be  granted  to  any  agency.   No
27    temporary permit shall be issued for the loss of the licensee
28    in charge because of disciplinary action by the Department.
29        (h)  Licensed  locksmith  agency.   Upon  receipt  of the
30    required fee and proof that  the  applicant  is  an  Illinois
31    licensed  locksmith  who shall assume full responsibility for
32    the operation of the agency and the directed actions  of  the
33    agency's  employees,  which  is  a continuing requirement for
34    agency  licensure,  the  Department  shall   issue,   without
HB2688 Engrossed            -117-              LRB9009844LDpk
 1    examination,  a  certificate  as a Locksmith Agency to any of
 2    the following:
 3             (1)  An individual who  submits  an  application  in
 4        writing and who is a licensed locksmith under this Act.
 5             (2)  A   firm   or   association   that  submits  an
 6        application in writing and  certifies  that  all  of  the
 7        members   of   the   firm  or  association  are  licensed
 8        locksmiths under this Act.
 9             (3)  A duly incorporated or  registered  corporation
10        or  limited  liability  company allowed to do business in
11        Illinois  that  is  authorized   by   its   articles   of
12        incorporation  or  organization to engage in the business
13        of conducting a locksmith agency, provided that at  least
14        one officer or executive employee of a corporation or one
15        member  of  a  limited liability company is licensed as a
16        locksmith under this Act, and provided that person agrees
17        in writing on a form  acceptable  to  the  Department  to
18        assume  full  responsibility  for  the  operation  of the
19        agency  and  the  directed  actions   of   the   agency's
20        employees,  and  further  provided  that  all  unlicensed
21        officers  and  directors of the corporation or members of
22        the limited  liability  company  are  determined  by  the
23        Department to be persons of good moral character.
24        An   individual  licensed  locksmith  operating  under  a
25    business name other than the licensed  locksmith's  own  name
26    shall not be required to obtain a locksmith agency license if
27    that licensed locksmith does not employ any persons to engage
28    in the practice of locksmithing.
29        An  applicant  for  licensure as a locksmith agency shall
30    submit to the Department proof of  insurance  sufficient  for
31    the  agency's  business  circumstances.  The Department shall
32    promulgate rules specifying minimum  insurance  requirements.
33    This  insurance  requirement  is a continuing requirement for
34    licensure.
HB2688 Engrossed            -118-              LRB9009844LDpk
 1        No licensed  locksmith  may  be  the  licensed  locksmith
 2    responsible  for the operation of more than one agency except
 3    for any individual who submits proof to the Department  that,
 4    on  the  effective date of this amendatory Act of 1995, he or
 5    she is actively responsible for the operations of  more  than
 6    one  agency.   A  licensed  private  alarm  contractor who is
 7    responsible for the operation of  a  licensed  private  alarm
 8    contractor agency and who is a licensed locksmith may also be
 9    the  licensed  locksmith  responsible  for the operation of a
10    locksmith agency.
11        Upon written request by a  representative  of  an  agency
12    within  10  days  after  the  loss  of a responsible licensed
13    locksmith  of  an  agency,  because  of  the  death  of  that
14    individual or because of the unanticipated termination of the
15    employment of that individual, the Department shall  issue  a
16    temporary  permit  allowing  the  continuing  operation  of a
17    previously licensed locksmith agency.   No  temporary  permit
18    shall  be  valid  for more than 90 days.  An extension for an
19    additional 90 days may be granted by the Department for  good
20    cause  shown  and upon written request by a representative of
21    the agency.  No more than 2 extensions may be granted to  any
22    agency.   No  temporary  permit shall be issued to any agency
23    due to the loss  of  the  responsible  locksmith  because  of
24    disciplinary action by the Department.
25        (i)  Any licensed agency that operates a branch office as
26    defined in this Act shall apply for a branch office license.
27    (Source:  P.A.  89-85,  eff.  1-1-96;  89-366,  eff.  1-1-96;
28    89-626, eff. 8-9-96; 90-436, eff. 1-1-98.)
29        (225 ILCS 446/77)
30        Sec.  77.  Necessity for licensure of locksmith agencies;
31    grandfather provision.
32        (a)  On  or  after  January  1,  1997,  no  person  shall
33    practice as a locksmith and no business entity shall  operate
HB2688 Engrossed            -119-              LRB9009844LDpk
 1    as   a  locksmith  agency  without  first  applying  for  and
 2    obtaining a license for that purpose from the Department.
 3        (b)  Applications must be  accompanied  by  the  required
 4    fee.
 5        (c)  In lieu of the examination given to other applicants
 6    for  licensure,  the  Director  may  issue  a  license  to an
 7    individual who presents proof to the Director that he or  she
 8    was  actively  engaged  as  a  locksmith  or as a supervisor,
 9    manager, or administrator of a locksmith business for 3 years
10    out of the 5 years immediately preceding January 1, 1996  and
11    meets all other requirements of this Act.
12        (d)  The  application  for  a license without examination
13    shall be made to  the  Director  within  2  years  after  the
14    effective date of this amendatory Act of 1995.
15        (e)  A  person  who  applies  for  licensure  under  this
16    Section  between  September  1,  1998  and September 30, 1998
17    shall be exempt from subsection (d) of this Section and shall
18    be  issued  a  license  upon  proof  of  meeting  all   other
19    requirements for licensure under this Section.
20    (Source: P.A. 89-366, eff. 1-1-96.)
21        Section  905-25.  The Illinois Highway Code is amended by
22    changing Section 5-907 as follows:
23        (605 ILCS 5/5-907) (from Ch. 121, par. 5-907)
24        Sec. 5-907. Advisory Committee. A road improvement impact
25    fee  advisory committee shall be created by the unit of local
26    government intending to impose  impact  fees.   The  Advisory
27    Committee  shall  consist of not less than 10 members and not
28    more than 20 members.  Not less than 40% of  the  members  of
29    the  committee  shall  be representatives of the real estate,
30    development,  and   building   industries   and   the   labor
31    communities and may not be employees or officials of the unit
32    of local government.
HB2688 Engrossed            -120-              LRB9009844LDpk
 1        The  members  of the Advisory Committee shall be selected
 2    as follows:
 3             (1)  The representatives of  real  estate  shall  be
 4        licensed  under  the Real Estate License Act of 1999 1983
 5        and shall be designated by the President of the  Illinois
 6        Association  of  Realtors  from  a  local  Board from the
 7        service area or areas of the unit of local government.
 8             (2)  The representatives of the development industry
 9        shall  be   designated   by   the   Regional   Developers
10        Association.
11             (3)  The  representatives  of  the building industry
12        shall be designated representatives of the Regional  Home
13        Builders  representing  the  unit  of  local government's
14        geographic area as appointed from time to  time  by  that
15        Association's president.
16             (4)  The  labor  representatives  shall be chosen by
17        either the Central Labor  Council  or  the  Building  and
18        Construction  Trades  Council  having jurisdiction within
19        the unit of local government.
20        If the unit of local government is a county, at least 30%
21    of  the  members  serving   on   the   commission   must   be
22    representatives of the municipalities within the county.  The
23    municipal  representatives  shall be selected by a convention
24    of  mayors  in  the  county,  who  shall  elect  from   their
25    membership municipal representatives to serve on the Advisory
26    Committee.   The  members  representing  the  county shall be
27    appointed by the chief executive officer of the county.
28        If the unit of local government is  a  municipality,  the
29    non-public  representatives  shall  be appointed by the chief
30    executive officer of the municipality.
31        If the unit of local government has a planning or  zoning
32    commission, the unit of local government may elect to use its
33    planning  or  zoning  commission  to  serve  as  the Advisory
34    Committee, provided that not less than 40% of  the  committee
HB2688 Engrossed            -121-              LRB9009844LDpk
 1    members   include   representatives   of   the  real  estate,
 2    development,  and   building   industries   and   the   labor
 3    communities who are not employees or officials of the unit of
 4    local  government.   A  unit  of local government may appoint
 5    additional  members  to  serve  on  the  planning  or  zoning
 6    commission as ad hoc voting members whenever the planning  or
 7    zoning   commission  functions  as  the  Advisory  Committee;
 8    provided that  no  less  than  40%  of  the  members  include
 9    representatives of the real estate, development, and building
10    industries and the labor communities.
11    (Source: P.A. 86-97.)
12        Section  905-30.  The Illinois Real Estate Time-Share Act
13    is amended by changing Sections 19, 33, and 34 as follows:
14        (765 ILCS 100/19) (from Ch. 30, par. 719)
15        Sec.  19.   (a)  Any  person acting as a sales agent of a
16    time-share estate  of  real  property  without  having  first
17    complied  with the Real Estate License Act of 1999 1983 shall
18    be guilty of a Class A misdemeanor.
19        Upon conviction of a second offense the violator shall be
20    guilty of a Class A misdemeanor.
21        Upon conviction of a  third  or  subsequent  offense  the
22    violator  shall  be  guilty  of a Class 4 felony and shall be
23    fined not less than $15,000 nor more than $50,000.
24        (b)  In addition to any other remedies, the Commissioner,
25    through  the  Attorney  General,  is  authorized  to  file  a
26    complaint and apply to any circuit court wherein such alleged
27    acts are occurring, and such circuit court may  upon  hearing
28    and for cause shown, grant a temporary restraining order or a
29    preliminary    or   permanent   injunction,   without   bond,
30    restraining any person from violating this Act whether or not
31    there exists other judicial remedies.
32        (c)  The Commissioner by and through the Attorney General
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 1    may file a complaint for violation of this Act.
 2        (d)  The penalties and  remedies  provided  by  this  Act
 3    shall not be exclusive, but shall be in addition to all other
 4    penalties or remedies provided by law.
 5    (Source: P.A. 89-508, eff. 7-3-96.)
 6        (765 ILCS 100/33) (from Ch. 30, par. 733)
 7        Sec.  33.  If a time-share program involves the offering,
 8    sale, exchange or lease of  real  property,  then  any  sales
 9    agent,  involved in the transaction must comply with the Real
10    Estate License Act of 1999 1983.
11    (Source: P.A. 84-821.)
12        (765 ILCS 100/34) (from Ch. 30, par. 734)
13        Sec.  34.   All  fees  in  the  Real  Estate   Time-Share
14    Registration  Fund  on  the effective date of this amendatory
15    Act of 1986 shall be transferred by the  State  Treasurer  to
16    the  Real  Estate License Administration Fund, established in
17    Section 17 of the Real Estate License Act of 1999 1983.   All
18    fees  received  under this Act on or after that date shall be
19    deposited into the Real Estate License Administration Fund.
20    (Source: P.A. 89-508, eff. 7-3-96.)
21        Section  905-35.  The Commercial Real Estate Broker  Lien
22    Act is amended by changing Section 5 as follows:
23        (770 ILCS 15/5) (from Ch. 82, par. 655)
24        Sec. 5.  Definitions.  As used in this Act:
25        "Commercial real estate" means any real estate located in
26    Illinois  other  than  (i)  real  estate  containing one to 6
27    residential units, (ii) real estate on which no buildings  or
28    structures  are  located,  or (iii) real estate classified as
29    farmland for assessment purposes under the Property Tax Code.
30    Commercial  real  estate  shall  not  include  single  family
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 1    residential units such as condominiums, townhouses, or  homes
 2    in  a subdivision when sold, leased, or otherwise conveyed on
 3    a unit by unit basis even though these units may be part of a
 4    larger building or parcel of real estate containing more than
 5    6 residential units.
 6        "Real estate", "broker", and "employee" are defined as in
 7    the Real Estate License Act of 1999 1983.
 8        "Interest  in  commercial  real  estate"  shall  include,
 9    without limitation, any interest in a land trust  as  defined
10    in Section 15-1205 of the Code of Civil Procedure.
11    (Source: P.A. 87-779; 88-354; 88-670, eff. 12-2-94.)
12        Section   905-40.   The  Illinois Business Brokers Act of
13    1995 is amended by changing Section 10-80 as follows:
14        (815 ILCS 307/10-80)
15        Sec. 10-80. Persons exempt from  registration  and  other
16    duties under law;  burden of proof thereof.
17        (a)  The   following   persons   are   exempt   from  the
18    requirements of this Act:
19             (1)  Any attorney who is  licensed  to  practice  in
20        this  State,  while  engaged  in  the practice of law and
21        whose  service  in  relation  to  the   business   broker
22        transaction is incidental to the attorney's practice.
23             (2)  Any  person licensed as a real estate broker or
24        salesperson under the Illinois Real Estate License Act of
25        1999 1983 who is primarily engaged in business activities
26        for which a license is required under that Act  and  who,
27        on an incidental basis, acts as a business broker.
28             (3)  Any  dealer, salesperson, or investment adviser
29        registered pursuant to the  Illinois  Securities  Law  of
30        1953  or  any  investment  adviser representative, or any
31        person who  is  regularly  engaged  in  the  business  of
32        offering  or selling securities in a transaction exempted
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 1        under subsection C, H, M, R, Q, or S of Section 4 of  the
 2        Illinois  Securities  Law  of  1953  or  subsection  G of
 3        Section 4 of the Illinois Securities Law of 1953 provided
 4        that  such  person  is  registered  pursuant  to  federal
 5        securities law.
 6             (4)  An associated person described  in  subdivision
 7        (h)(2) of Section 15 of the Federal 1934 Act.
 8             (5)  An  investment  adviser  registered pursuant to
 9        Section 203 of the Federal 1940 Investment Advisors Act.
10             (6)  A person described in  subdivision  (a)(11)  of
11        Section 202 of the Federal 1940 Investment Advisors Act.
12             (7)  Any  person  who is selling a business owned or
13        operated (in whole or  in part) by that person in  a  one
14        time transaction.
15        (b)  This Act shall not be deemed to apply in any manner,
16    directly  or  indirectly,  to:  (i)  a State bank or national
17    bank, as those terms are defined in the Illinois Banking Act,
18    or any subsidiary of a State bank or national  bank;  (ii)  a
19    bank holding company, as that term is defined in the Illinois
20    Bank Holding Company Act of 1957, or any subsidiary of a bank
21    holding company; (iii) a foreign banking corporation, as that
22    term  is  defined  in  the Foreign Banking Office Act, or any
23    subsidiary  of  a  foreign  banking   corporation;   (iv)   a
24    representative   office,  as  that  term  is  defined  in the
25    Foreign Bank  Representative  Office  Act;  (v)  a  corporate
26    fiduciary, as that term is defined in the Corporate Fiduciary
27    Act,  or  any  subsidiary  of  a  corporate fiduciary; (vi) a
28    savings bank organized under  the  Savings  Bank  Act,  or  a
29    federal  savings  bank  organized  under  federal law, or any
30    subsidiary of a savings bank or federal savings bank; (vii) a
31    savings bank holding company organized under the Savings Bank
32    Act, or any subsidiary of a  savings  bank  holding  company;
33    (viii)  an association or federal association, as those terms
34    are defined in the Illinois Savings and Loan Act of 1985,  or
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 1    any subsidiary of an association or federal association; (ix)
 2    a  foreign  savings  and  loan association or foreign savings
 3    bank subject to the Illinois Savings and Loan Act of 1985, or
 4    any subsidiary of a foreign savings and loan  association  or
 5    foreign  savings  bank; or (x) a savings and loan association
 6    holding company, as that term  is  defined  in  the  Illinois
 7    Savings  and Loan Act of 1985, or any subsidiary of a savings
 8    and loan association holding company.
 9        (b-1)  Persons registered under  the  Illinois  Franchise
10    Disclosure  Act of 1987 (and their employees) are exempt from
11    the requirements of this Act  as  to:  offers  and  sales  in
12    connection  with  franchising activities; or assisting any of
13    their franchisees in the offer or sale of a franchise by  any
14    such  franchisee  for the franchisee's own account regardless
15    of whether the sale is effected by or through the  registered
16    persons.
17        (b-2)  Any   certified   public  accountant  licensed  to
18    practice in Illinois, while engaged  in  the  practice  as  a
19    certified  public accountant and whose service in relation to
20    the business broker transaction is incidental to his  or  her
21    practice, is exempt from the requirements of this Act.
22        (b-3)  Any   publisher,   or  regular  employee  of  such
23    publisher, of a bona fide   newspaper  or  news  magazine  of
24    regular  and established paid circulation who, in the routine
25    course of selling advertising, advertises businesses for sale
26    and in which no other related services are provided is exempt
27    from the requirements of this Act.
28        (c)  The  burden   of   proof   of   any   exemption   or
29    classification  provided  in  this  Act shall be on the party
30    claiming the exemption or classification.
31    (Source: P.A. 89-209,  eff.  1-1-96;  89-665,  eff.  8-14-96;
32    90-70, eff. 7-8-97.)
33        Section   905-45.   The  Telephone  Solicitations  Act is
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 1    amended by changing Section 10 as follows:
 2        (815 ILCS 413/10)
 3        (Text of Section before amendment by P.A. 90-541)
 4        Sec. 10.  Jurisdiction.  No person shall solicit the sale
 5    of goods in this State except in accordance with this Act.
 6    (Source: P.A. 88-288.)
 7        (Text of Section after amendment by P.A. 90-541)
 8        Sec. 10.  Jurisdiction.  No person shall solicit the sale
 9    of goods or services in this State except in accordance  with
10    this  Act.  The  provisions  of  this  Act shall not apply to
11    telecommunications carriers as defined in Article XIII of the
12    Public Utilities Act or to  any bank, trust company,  savings
13    and  loan  association,  credit  union,  licensee  under  the
14    Consumer  Installment  Loan  Act,  licensed insurer, licensee
15    under the Real Estate  License  Act  of  1999  1983,  or  any
16    affiliate,   subsidiary,  employee,  or  agent  of  any  such
17    entities.
18    (Source: P.A. 90-541, eff. 6-1-98.)
19                       ARTICLE 990.  REPEALER
20        (225 ILCS 455/Act rep.)
21        Section 990-90.  The Real Estate License Act of  1983  is
22    repealed.
23                    ARTICLE 995.  NONACCELERATION
24        Section  995-95.   No  acceleration or delay.  Where this
25    Act makes changes in a statute that is  represented  in  this
26    Act  by  text  that  is  not  yet or no longer in effect (for
27    example, a Section represented by multiple versions), the use
28    of that text does not accelerate or delay the  taking  effect
29    of  (i)  the  changes  made  by  this  Act or (ii) provisions
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 1    derived from any other Public Act.
 2                    ARTICLE 999.  EFFECTIVE DATE
 3        Section 999-99.  Effective date.  This Act  takes  effect
 4    July 1, 1999.

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