HB5868sam001 96TH GENERAL ASSEMBLY

Sen. Terry Link

Filed: 4/15/2010

09600HB5868sam001 LRB096 18123 ASK 39968 a

AMENDMENT TO HOUSE BILL 5868

AMENDMENT NO. ______. Amend House Bill 5868 on page 2, by replacing lines 3 through 14 with the following:

""Appraisal company" means any individual, corporation, partnership, sole proprietorship, limited liability partnership, limited liability company, subsidiary, unit, or other business entity that (i) administers networks of either employee or independent contractor appraisers to perform real estate appraisal services for clients; (ii) recruits, qualifies, verifies the licensing of, and negotiates fees and service level expectations with a network of third-party appraisers; (iii) provides administrative duties like order entry and assignment, tracking and status updates, pre-delivery quality control, and preliminary and hard copy report delivery; (iv) involves ongoing quality control, accounts payable and receivable, market value dispute resolution, warranty administration, and record retention; (v) receives requests for real estate appraisal services from clients and enters into an agreement with one or more independent contractor appraisers to perform the real estate appraisal services contained in the request; or (vi) otherwise serves as a third-party broker of appraisal services between clients and appraisers."; and

by deleting lines 19 through 26 on page 2; and

by deleting lines 1 through 5 on page 3; and

on page 3, by replacing lines 24 and 25 with the following: "appraisals. "Appraiser" does not mean an appraisal company."; and

on page 5, line 19, by replacing "appraiser" with "entity"; and

on page 7, line 12, by deleting "or "turn time""; and

on page 10, line 21, by replacing "to conduct an appraisal business" with "as an appraisal company"; and

on page 10, by replacing line 25 with "corporation, limited liability company, or partnership."; and

on page 12, by replacing lines 5 through 8 with the following:

"(1) the appraisal company is legally conducting an appraisal company business in either its state of domicile or the state in which it has its principal office.

(2) the appraisal company maintains an office in its state of domicile or the state in which it has its principal office; and"; and

on page 13, line 4, by replacing "appraiser or representative" with "appraisal company"; and

on page 15, by replacing lines 13 and 14 with the following:

"(i) This Section shall not apply to appraisal companies that contract, in the aggregate, with independent appraisers"; and

on page 15, by replacing lines 18 through 25 with the following:

"(225 ILCS 458/5-20.3 new)

Sec. 5-20.3. Licensure of appraisal company.

(a) It is unlawful for a person to directly or indirectly engage or attempt to engage in business as an appraisal company, to directly or indirectly engage or attempt to perform appraisal company services, or to advertise or hold itself out as engaging in or conducting business as an appraisal company without first submitting an application to the Department, on forms provided by the Department, and obtaining a license issued by the Secretary under the provisions of this Act.

(b) The license application required by subsection (a) of this Section shall, at a minimum, include the following information:

(1) the name of the entity seeking licensure;

(2) the business address of the entity seeking licensure;

(3) the phone contact information of the entity seeking licensure;

(4) if the entity is not domiciled in this State, the name and contact information for the appraisal company's agent for service of process in this State;

(5) the name, address, and contact information for any individual, corporation, partnership, sole proprietorship, limited liability partnership, limited liability company, subsidiary, unit, or other business entity that owns 10% or more of the appraisal company (controlling person);

(6) the name, address, and contact information for one or more controlling persons;

(7) a certification that the entity has a system and process in place to verify that a person being added to the appraiser panel of the appraisal company holds a license in good standing in this State pursuant to this Act if a license or certification is required to perform appraisals, pursuant to this Act;

(8) a certification that the entity has a system in place to review the work of all appraisers that are performing real estate appraisal services for the appraisal company on a periodic basis to ensure that the real estate appraisal services are being conducted in accordance with USPAP;

(9) a certification that the entity maintains a record of each service request that it receives and the appraiser that performs the real estate appraisal services for the appraisal company;

(10) an irrevocable Uniform Consent to Service of Process, pursuant to subsection (b-7) of Section 5-5 of this Act; and

(11) any other information required by the Secretary.

(c) The application shall be accompanied by a non-refundable fee of $50.00. Such fee shall be deposited in the Appraisal Administration Fund."; and

by deleting lines 1 and 2 on page 16; and

on page 22, immediately below line 8, by inserting the following:

"(h) No appraisal company shall require an appraiser to provide it with the appraiser's digital signature or seal. However, nothing in this Act shall be deemed to prohibit an appraiser from voluntarily providing his or her digital signature or seal to another person on an assignment-by-assignment basis, in accordance with USPAP.

(i) Nothing in this Act shall prohibit an appraisal company from requesting that an appraiser consider additional appropriate data, or consider correcting factual errors.".