100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5256

 

Introduced , by Rep. Mark Batinick

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 407/10-30
225 ILCS 441/5-30
225 ILCS 454/1-10
225 ILCS 454/5-15
225 ILCS 454/5-20
225 ILCS 454/5-50
225 ILCS 454/5-70
225 ILCS 454/5-80
225 ILCS 454/10-15
225 ILCS 454/10-20
225 ILCS 454/20-20
225 ILCS 458/5-45
225 ILCS 458/15-15

    Amends the Auction License Act, the Home Inspector License Act, and the Real Estate Appraiser Licensing Act of 2002. Makes changes to the deadlines for completion of continuing education for renewal of a license. Amends the Real Estate License Act of 2000. In the definitions of "broker" and "person", includes an entity, corporation, foreign or domestic partnership, or other business entity. Makes conforming changes throughout the Act. Makes changes in provisions concerning licensing requirements for ownership. Makes changes to the deadline for completion of continuing education for renewal of a managing broker, broker, leasing agent, or instructor license. Makes other changes. Effective immediately.


LRB100 16043 SMS 31162 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5256LRB100 16043 SMS 31162 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Auction License Act is amended by changing
5Section 10-30 as follows:
 
6    (225 ILCS 407/10-30)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 10-30. Expiration, renewal, and continuing education.
9    (a) License expiration dates, renewal periods, renewal
10fees, and procedures for renewal of licenses issued under this
11Act shall be set by rule of the Department. An entity may renew
12its license by paying the required fee and by meeting the
13renewal requirements adopted by the Department under this
14Section.
15    (b) All renewal applicants must provide proof as determined
16by the Department of having met the continuing education
17requirements by the deadline set forth by the Department by
18rule. At a minimum, the rules shall require an applicant for
19renewal licensure as an auctioneer to provide proof of the
20completion of at least 12 hours of continuing education during
21the pre-renewal period established by the Department for
22completion of continuing education preceding the expiration
23date of the license from schools approved by the Department, as

 

 

HB5256- 2 -LRB100 16043 SMS 31162 b

1established by rule.
2    (c) The Department, in its discretion, may waive
3enforcement of the continuing education requirements of this
4Section and shall adopt rules defining the standards and
5criteria for such waiver.
6    (d) (Blank).
7(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
 
8    Section 10. The Home Inspector License Act is amended by
9changing Section 5-30 as follows:
 
10    (225 ILCS 441/5-30)
11    (Section scheduled to be repealed on January 1, 2022)
12    Sec. 5-30. Continuing education renewal requirements. The
13continuing education requirements for a person to renew a
14license as a home inspector shall be established by rule. The
15Department shall establish a continuing education completion
16deadline for home inspector licensees and require evidence of
17compliance with continuing education requirements in a manner
18established by rule before the renewal of a license.
19(Source: P.A. 92-239, eff. 8-3-01.)
 
20    Section 15. The Real Estate License Act of 2000 is amended
21by changing Sections 1-10, 5-15, 5-20, 5-50, 5-70, 5-80, 10-15,
2210-20, and 20-20 as follows:
 

 

 

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1    (225 ILCS 454/1-10)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 1-10. Definitions. In this Act, unless the context
4otherwise requires:
5    "Act" means the Real Estate License Act of 2000.
6    "Address of record" means the designated address recorded
7by the Department in the applicant's or licensee's application
8file or license file as maintained by the Department's
9licensure maintenance unit. It is the duty of the applicant or
10licensee to inform the Department of any change of address, and
11those changes must be made either through the Department's
12website or by contacting the Department.
13    "Agency" means a relationship in which a broker or
14licensee, whether directly or through an affiliated licensee,
15represents a consumer by the consumer's consent, whether
16express or implied, in a real property transaction.
17    "Applicant" means any person, as defined in this Section,
18who applies to the Department for a valid license as a managing
19broker, broker, or leasing agent.
20    "Blind advertisement" means any real estate advertisement
21that does not include the sponsoring broker's business name and
22that is used by any licensee regarding the sale or lease of
23real estate, including his or her own, licensed activities, or
24the hiring of any licensee under this Act. The broker's
25business name in the case of a franchise shall include the
26franchise affiliation as well as the name of the individual

 

 

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1firm.
2    "Board" means the Real Estate Administration and
3Disciplinary Board of the Department as created by Section
425-10 of this Act.
5    "Branch office" means a sponsoring broker's office other
6than the sponsoring broker's principal office.
7    "Broker" means an individual, entity, corporation, foreign
8or domestic partnership, limited liability company,
9corporation, or registered limited liability partnership, or
10other business entity other than a leasing agent who, whether
11in person or through any media or technology, for another and
12for compensation, or with the intention or expectation of
13receiving compensation, either directly or indirectly:
14        (1) Sells, exchanges, purchases, rents, or leases real
15    estate.
16        (2) Offers to sell, exchange, purchase, rent, or lease
17    real estate.
18        (3) Negotiates, offers, attempts, or agrees to
19    negotiate the sale, exchange, purchase, rental, or leasing
20    of real estate.
21        (4) Lists, offers, attempts, or agrees to list real
22    estate for sale, rent, lease, or exchange.
23        (5) Buys, sells, offers to buy or sell, or otherwise
24    deals in options on real estate or improvements thereon.
25        (6) Supervises the collection, offer, attempt, or
26    agreement to collect rent for the use of real estate.

 

 

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1        (7) Advertises or represents himself or herself as
2    being engaged in the business of buying, selling,
3    exchanging, renting, or leasing real estate.
4        (8) Assists or directs in procuring or referring of
5    leads or prospects, intended to result in the sale,
6    exchange, lease, or rental of real estate.
7        (9) Assists or directs in the negotiation of any
8    transaction intended to result in the sale, exchange,
9    lease, or rental of real estate.
10        (10) Opens real estate to the public for marketing
11    purposes.
12        (11) Sells, rents, leases, or offers for sale or lease
13    real estate at auction.
14        (12) Prepares or provides a broker price opinion or
15    comparative market analysis as those terms are defined in
16    this Act, pursuant to the provisions of Section 10-45 of
17    this Act.
18    "Brokerage agreement" means a written or oral agreement
19between a sponsoring broker and a consumer for licensed
20activities to be provided to a consumer in return for
21compensation or the right to receive compensation from another.
22Brokerage agreements may constitute either a bilateral or a
23unilateral agreement between the broker and the broker's client
24depending upon the content of the brokerage agreement. All
25exclusive brokerage agreements shall be in writing.
26    "Broker price opinion" means an estimate or analysis of the

 

 

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1probable selling price of a particular interest in real estate,
2which may provide a varying level of detail about the
3property's condition, market, and neighborhood and information
4on comparable sales. The activities of a real estate broker or
5managing broker engaging in the ordinary course of business as
6a broker, as defined in this Section, shall not be considered a
7broker price opinion if no compensation is paid to the broker
8or managing broker, other than compensation based upon the sale
9or rental of real estate.
10    "Client" means a person who is being represented by a
11licensee.
12    "Comparative market analysis" is an analysis or opinion
13regarding pricing, marketing, or financial aspects relating to
14a specified interest or interests in real estate that may be
15based upon an analysis of comparative market data, the
16expertise of the real estate broker or managing broker, and
17such other factors as the broker or managing broker may deem
18appropriate in developing or preparing such analysis or
19opinion. The activities of a real estate broker or managing
20broker engaging in the ordinary course of business as a broker,
21as defined in this Section, shall not be considered a
22comparative market analysis if no compensation is paid to the
23broker or managing broker, other than compensation based upon
24the sale or rental of real estate.
25    "Compensation" means the valuable consideration given by
26one person or entity to another person or entity in exchange

 

 

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1for the performance of some activity or service. Compensation
2shall include the transfer of valuable consideration,
3including without limitation the following:
4        (1) commissions;
5        (2) referral fees;
6        (3) bonuses;
7        (4) prizes;
8        (5) merchandise;
9        (6) finder fees;
10        (7) performance of services;
11        (8) coupons or gift certificates;
12        (9) discounts;
13        (10) rebates;
14        (11) a chance to win a raffle, drawing, lottery, or
15    similar game of chance not prohibited by any other law or
16    statute;
17        (12) retainer fee; or
18        (13) salary.
19    "Confidential information" means information obtained by a
20licensee from a client during the term of a brokerage agreement
21that (i) was made confidential by the written request or
22written instruction of the client, (ii) deals with the
23negotiating position of the client, or (iii) is information the
24disclosure of which could materially harm the negotiating
25position of the client, unless at any time:
26        (1) the client permits the disclosure of information

 

 

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1    given by that client by word or conduct;
2        (2) the disclosure is required by law; or
3        (3) the information becomes public from a source other
4    than the licensee.
5    "Confidential information" shall not be considered to
6include material information about the physical condition of
7the property.
8    "Consumer" means a person or entity seeking or receiving
9licensed activities.
10    "Coordinator" means the Coordinator of Real Estate created
11in Section 25-15 of this Act.
12    "Credit hour" means 50 minutes of classroom instruction in
13course work that meets the requirements set forth in rules
14adopted by the Department.
15    "Customer" means a consumer who is not being represented by
16the licensee but for whom the licensee is performing
17ministerial acts.
18    "Department" means the Department of Financial and
19Professional Regulation.
20    "Designated agency" means a contractual relationship
21between a sponsoring broker and a client under Section 15-50 of
22this Act in which one or more licensees associated with or
23employed by the broker are designated as agent of the client.
24    "Designated agent" means a sponsored licensee named by a
25sponsoring broker as the legal agent of a client, as provided
26for in Section 15-50 of this Act.

 

 

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1    "Dual agency" means an agency relationship in which a
2licensee is representing both buyer and seller or both landlord
3and tenant in the same transaction. When the agency
4relationship is a designated agency, the question of whether
5there is a dual agency shall be determined by the agency
6relationships of the designated agent of the parties and not of
7the sponsoring broker.
8    "Education provider" means a school licensed by the
9Department offering courses in pre-license, post-license, or
10continuing education required by this Act.
11    "Employee" or other derivative of the word "employee", when
12used to refer to, describe, or delineate the relationship
13between a sponsoring broker and a managing broker, broker, or a
14leasing agent, shall be construed to include an independent
15contractor relationship, provided that a written agreement
16exists that clearly establishes and states the relationship.
17All responsibilities of a broker shall remain.
18    "Escrow moneys" means all moneys, promissory notes or any
19other type or manner of legal tender or financial consideration
20deposited with any person for the benefit of the parties to the
21transaction. A transaction exists once an agreement has been
22reached and an accepted real estate contract signed or lease
23agreed to by the parties. Escrow moneys includes without
24limitation earnest moneys and security deposits, except those
25security deposits in which the person holding the security
26deposit is also the sole owner of the property being leased and

 

 

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1for which the security deposit is being held.
2    "Electronic means of proctoring" means a methodology
3providing assurance that the person taking a test and
4completing the answers to questions is the person seeking
5licensure or credit for continuing education and is doing so
6without the aid of a third party or other device.
7    "Exclusive brokerage agreement" means a written brokerage
8agreement that provides that the sponsoring broker has the sole
9right, through one or more sponsored licensees, to act as the
10exclusive designated agent or representative of the client and
11that meets the requirements of Section 15-75 of this Act.
12    "Inoperative" means a status of licensure where the
13licensee holds a current license under this Act, but the
14licensee is prohibited from engaging in licensed activities
15because the licensee is unsponsored or the license of the
16sponsoring broker with whom the licensee is associated or by
17whom he or she is employed is currently expired, revoked,
18suspended, or otherwise rendered invalid under this Act.
19    "Interactive delivery method" means delivery of a course by
20an instructor through a medium allowing for 2-way communication
21between the instructor and a student in which either can
22initiate or respond to questions.
23    "Leads" means the name or names of a potential buyer,
24seller, lessor, lessee, or client of a licensee.
25    "Leasing Agent" means a person who is employed by a broker
26to engage in licensed activities limited to leasing residential

 

 

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1real estate who has obtained a license as provided for in
2Section 5-5 of this Act.
3    "License" means the document issued by the Department
4certifying that the person named thereon has fulfilled all
5requirements prerequisite to licensure under this Act.
6    "Licensed activities" means those activities listed in the
7definition of "broker" under this Section.
8    "Licensee" means any person, as defined in this Section,
9who holds a valid unexpired license as a managing broker,
10broker, or leasing agent.
11    "Listing presentation" means a communication between a
12managing broker or broker and a consumer in which the licensee
13is attempting to secure a brokerage agreement with the consumer
14to market the consumer's real estate for sale or lease.
15    "Managing broker" means a broker who has supervisory
16responsibilities for licensees in one or, in the case of a
17multi-office company, more than one office and who has been
18appointed as such by the sponsoring broker.
19    "Medium of advertising" means any method of communication
20intended to influence the general public to use or purchase a
21particular good or service or real estate.
22    "Ministerial acts" means those acts that a licensee may
23perform for a consumer that are informative or clerical in
24nature and do not rise to the level of active representation on
25behalf of a consumer. Examples of these acts include without
26limitation (i) responding to phone inquiries by consumers as to

 

 

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1the availability and pricing of brokerage services, (ii)
2responding to phone inquiries from a consumer concerning the
3price or location of property, (iii) attending an open house
4and responding to questions about the property from a consumer,
5(iv) setting an appointment to view property, (v) responding to
6questions of consumers walking into a licensee's office
7concerning brokerage services offered or particular
8properties, (vi) accompanying an appraiser, inspector,
9contractor, or similar third party on a visit to a property,
10(vii) describing a property or the property's condition in
11response to a consumer's inquiry, (viii) completing business or
12factual information for a consumer on an offer or contract to
13purchase on behalf of a client, (ix) showing a client through a
14property being sold by an owner on his or her own behalf, or
15(x) referral to another broker or service provider.
16    "Office" means a broker's place of business where the
17general public is invited to transact business and where
18records may be maintained and licenses displayed, whether or
19not it is the broker's principal place of business.
20    "Person" means and includes individuals, entities,
21corporations, limited liability companies, registered limited
22liability partnerships, foreign or domestic and partnerships,
23and other business entities, foreign or domestic, except that
24when the context otherwise requires, the term may refer to a
25single individual or other described entity.
26    "Personal assistant" means a licensed or unlicensed person

 

 

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1who has been hired for the purpose of aiding or assisting a
2sponsored licensee in the performance of the sponsored
3licensee's job.
4    "Pocket card" means the card issued by the Department to
5signify that the person named on the card is currently licensed
6under this Act.
7    "Pre-renewal period" means the period between the date of
8issue of a currently valid license and the license's expiration
9date.
10    "Proctor" means any person, including, but not limited to,
11an instructor, who has a written agreement to administer
12examinations fairly and impartially with a licensed education
13provider.
14    "Real estate" means and includes leaseholds as well as any
15other interest or estate in land, whether corporeal,
16incorporeal, freehold, or non-freehold and whether the real
17estate is situated in this State or elsewhere. "Real estate"
18does not include property sold, exchanged, or leased as a
19timeshare or similar vacation item or interest, vacation club
20membership, or other activity formerly regulated under the Real
21Estate Timeshare Act of 1999 (repealed).
22    "Regular employee" means a person working an average of 20
23hours per week for a person or entity who would be considered
24as an employee under the Internal Revenue Service eleven main
25tests in three categories being behavioral control, financial
26control and the type of relationship of the parties, formerly

 

 

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1the twenty factor test.
2    "Secretary" means the Secretary of the Department of
3Financial and Professional Regulation, or a person authorized
4by the Secretary to act in the Secretary's stead.
5    "Sponsoring broker" means the broker who has issued a
6sponsor card to a licensed managing broker, broker, or a
7leasing agent.
8    "Sponsor card" means the temporary permit issued by the
9sponsoring broker certifying that the managing broker, broker,
10or leasing agent named thereon is employed by or associated by
11written agreement with the sponsoring broker, as provided for
12in Section 5-40 of this Act.
13(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18;
14100-534, eff. 9-22-17; revised 10-2-17.)
 
15    (225 ILCS 454/5-15)
16    (Section scheduled to be repealed on January 1, 2020)
17    Sec. 5-15. Necessity of managing broker, broker, or leasing
18agent license or sponsor card; ownership restrictions.
19    (a) It is unlawful for any person, corporation, limited
20liability company, registered limited liability partnership,
21or partnership to act as a managing broker, broker, or leasing
22agent or to advertise or assume to act as such managing broker,
23broker or leasing agent without a properly issued sponsor card
24or a license issued under this Act by the Department, either
25directly or through its authorized designee.

 

 

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1    (b) No corporation shall be granted a license or engage in
2the business or capacity, either directly or indirectly, of a
3broker, unless every officer of the corporation who actively
4participates in the real estate activities of the corporation
5holds a license as a managing broker or broker and unless every
6employee who acts as a managing broker, broker, or leasing
7agent for the corporation holds a license as a managing broker,
8broker, or leasing agent. All nonparticipating owners or
9officers shall submit an affidavit of nonparticipation as may
10be required by the Department.
11    (c) No partnership shall be granted a license or engage in
12the business or serve in the capacity, either directly or
13indirectly, of a broker, unless every general partner in the
14partnership who actively participates in the real estate
15activities of the partnership holds a license as a managing
16broker or broker and unless every employee who acts as a
17managing broker, broker, or leasing agent for the partnership
18holds a license as a managing broker, broker, or leasing agent.
19All nonparticipating partners shall submit an affidavit of
20nonparticipation as may be required by the Department. In the
21case of a registered limited liability partnership (LLP), every
22partner in the LLP that actively participates in the real
23estate activities of the limited liability partnership must
24hold a license as a managing broker or broker and every
25employee who acts as a managing broker, broker, or leasing
26agent must hold a license as a managing broker, broker, or

 

 

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1leasing agent. All nonparticipating limited liability partners
2shall submit an affidavit of nonparticipation as may be
3required by the Department.
4    (d) No limited liability company shall be granted a license
5or engage in the business or serve in the capacity, either
6directly or indirectly, of a broker unless every member or
7manager in the limited liability company that actively
8participates in the real estate activities of the limited
9liability company or every member in a member managed limited
10liability company holds a license as a managing broker or
11broker and unless every other member and employee who acts as a
12managing broker, broker, or leasing agent for the limited
13liability company holds a license as a managing broker, broker,
14or leasing agent. All nonparticipating members or managers
15shall submit an affidavit of nonparticipation as may be
16required by the Department.
17    (e) (Blank). No partnership, limited liability company, or
18corporation shall be licensed to conduct a brokerage business
19where an individual leasing agent, or group of leasing agents,
20owns or directly or indirectly controls more than 49% of the
21shares of stock or other ownership in the partnership, limited
22liability company, or corporation.
23    (f) No person shall be granted a license if an owner,
24officer, director, partner, limited liability partner, member,
25manager, or any other participating or nonparticipating
26individual has been denied a real estate license or is

 

 

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1otherwise barred from real estate practice because of a
2suspension or revocation.
3(Source: P.A. 99-227, eff. 8-3-15.)
 
4    (225 ILCS 454/5-20)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 5-20. Exemptions from managing broker, broker, or
7leasing agent license requirement. The requirement for holding
8a license under this Article 5 shall not apply to:
9        (1) Any person, partnership, or corporation that as
10    owner or lessor performs any of the acts described in the
11    definition of "broker" under Section 1-10 of this Act with
12    reference to property owned or leased by it, or to the
13    regular employees thereof with respect to the property so
14    owned or leased, where such acts are performed in the
15    regular course of or as an incident to the management,
16    sale, or other disposition of such property and the
17    investment therein, provided that such regular employees
18    do not perform any of the acts described in the definition
19    of "broker" under Section 1-10 of this Act in connection
20    with a vocation of selling or leasing any real estate or
21    the improvements thereon not so owned or leased.
22        (2) An attorney in fact acting under a duly executed
23    and recorded power of attorney to convey real estate from
24    the owner or lessor or the services rendered by an attorney
25    at law in the performance of the attorney's duty as an

 

 

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1    attorney at law.
2        (3) Any person acting as receiver, trustee in
3    bankruptcy, administrator, executor, or guardian or while
4    acting under a court order or under the authority of a will
5    or testamentary trust.
6        (4) Any person acting as a resident manager for the
7    owner or any employee acting as the resident manager for a
8    broker managing an apartment building, duplex, or
9    apartment complex, when the resident manager resides on the
10    premises, the premises is his or her primary residence, and
11    the resident manager is engaged in the leasing of the
12    property of which he or she is the resident manager.
13        (5) Any officer or employee of a federal agency in the
14    conduct of official duties.
15        (6) Any officer or employee of the State government or
16    any political subdivision thereof performing official
17    duties.
18        (7) Any multiple listing service or other similar
19    information exchange that is engaged in the collection and
20    dissemination of information concerning real estate
21    available for sale, purchase, lease, or exchange for the
22    purpose of providing licensees with a system by which
23    licensees may cooperatively share information along with
24    which no other licensed activities, as defined in Section
25    1-10 of this Act, are provided.
26        (8) Railroads and other public utilities regulated by

 

 

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1    the State of Illinois, or the officers or full time
2    employees thereof, unless the performance of any licensed
3    activities is in connection with the sale, purchase, lease,
4    or other disposition of real estate or investment therein
5    not needing the approval of the appropriate State
6    regulatory authority.
7        (9) Any medium of advertising in the routine course of
8    selling or publishing advertising along with which no other
9    licensed activities, as defined in Section 1-10 of this
10    Act, are provided.
11        (10) Any resident lessee of a residential dwelling unit
12    who refers for compensation to the owner of the dwelling
13    unit, or to the owner's agent, prospective lessees of
14    dwelling units in the same building or complex as the
15    resident lessee's unit, but only if the resident lessee (i)
16    refers no more than 3 prospective lessees in any 12-month
17    period, (ii) receives compensation of no more than $1,500
18    or the equivalent of one month's rent, whichever is less,
19    in any 12-month period, and (iii) limits his or her
20    activities to referring prospective lessees to the owner,
21    or the owner's agent, and does not show a residential
22    dwelling unit to a prospective lessee, discuss terms or
23    conditions of leasing a dwelling unit with a prospective
24    lessee, or otherwise participate in the negotiation of the
25    leasing of a dwelling unit.
26        (11) The purchase, sale, or transfer of a timeshare or

 

 

HB5256- 20 -LRB100 16043 SMS 31162 b

1    similar vacation item or interest, vacation club
2    membership, or other activity formerly regulated under the
3    Real Estate Timeshare Act of 1999 (repealed).
4        (12) (Blank).
5        (13) Any person who is licensed without examination
6    under Section 10-25 (now repealed) of the Auction License
7    Act is exempt from holding a managing broker's or broker's
8    license under this Act for the limited purpose of selling
9    or leasing real estate at auction, so long as:
10            (A) that person has made application for said
11        exemption by July 1, 2000;
12            (B) that person verifies to the Department that he
13        or she has sold real estate at auction for a period of
14        5 years prior to licensure as an auctioneer;
15            (C) the person has had no lapse in his or her
16        license as an auctioneer; and
17            (D) the license issued under the Auction License
18        Act has not been disciplined for violation of those
19        provisions of Article 20 of the Auction License Act
20        dealing with or related to the sale or lease of real
21        estate at auction.
22        (14) A person who holds a valid license under the
23    Auction License Act and a valid real estate auction
24    certification and conducts auctions for the sale of real
25    estate under Section 5-32 of this Act.
26        (15) A hotel operator who is registered with the

 

 

HB5256- 21 -LRB100 16043 SMS 31162 b

1    Illinois Department of Revenue and pays taxes under the
2    Hotel Operators' Occupation Tax Act and rents a room or
3    rooms in a hotel as defined in the Hotel Operators'
4    Occupation Tax Act for a period of not more than 30
5    consecutive days and not more than 60 days in a calendar
6    year.
7(Source: P.A. 99-227, eff. 8-3-15; 100-534, eff. 9-22-17.)
 
8    (225 ILCS 454/5-50)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 5-50. Expiration and renewal of managing broker,
11broker, or leasing agent license; sponsoring broker; register
12of licensees; pocket card.
13    (a) The expiration date and renewal period for each license
14issued under this Act shall be set by rule. Except as otherwise
15provided in this Section, the holder of a license may renew the
16license within 90 days preceding the expiration date thereof by
17completing the continuing education required by this Act during
18the period established by the Department and paying the fees
19specified by rule.
20    (b) An individual whose first license is that of a broker
21received on or after the effective date of this amendatory Act
22of the 100th General Assembly, must provide evidence of having
23completed 30 hours of post-license education in courses
24recommended by the Board and approved by the Department, 15
25hours of which must consist of situational and case studies

 

 

HB5256- 22 -LRB100 16043 SMS 31162 b

1presented in a classroom or a live, interactive webinar, online
2distance education course, or home study course. Credit for
3courses taken through a home study course shall require passage
4of an examination approved by the Department prior to the first
5renewal of their broker's license.
6    (c) Any managing broker, broker, or leasing agent whose
7license under this Act has expired shall be eligible to renew
8the license during the 2-year period following the expiration
9date, provided the managing broker, broker, or leasing agent
10pays the fees as prescribed by rule and completes continuing
11education and other requirements provided for by the Act or by
12rule. Beginning on May 1, 2012, a managing broker licensee,
13broker, or leasing agent whose license has been expired for
14more than 2 years but less than 5 years may have it restored by
15(i) applying to the Department, (ii) paying the required fee,
16(iii) completing the continuing education requirements for the
17most recent pre-renewal period that ended prior to the date of
18the application for reinstatement, and (iv) filing acceptable
19proof of fitness to have his or her license restored, as set by
20rule. A managing broker, broker, or leasing agent whose license
21has been expired for more than 5 years shall be required to
22meet the requirements for a new license.
23    (d) Notwithstanding any other provisions of this Act to the
24contrary, any managing broker, broker, or leasing agent whose
25license expired while he or she was (i) on active duty with the
26Armed Forces of the United States or called into service or

 

 

HB5256- 23 -LRB100 16043 SMS 31162 b

1training by the state militia, (ii) engaged in training or
2education under the supervision of the United States
3preliminary to induction into military service, or (iii)
4serving as the Coordinator of Real Estate in the State of
5Illinois or as an employee of the Department may have his or
6her license renewed, reinstated or restored without paying any
7lapsed renewal fees if within 2 years after the termination of
8the service, training or education by furnishing the Department
9with satisfactory evidence of service, training, or education
10and it has been terminated under honorable conditions.
11    (e) The Department shall establish and maintain a register
12of all persons currently licensed by the State and shall issue
13and prescribe a form of pocket card. Upon payment by a licensee
14of the appropriate fee as prescribed by rule for engagement in
15the activity for which the licensee is qualified and holds a
16license for the current period, the Department shall issue a
17pocket card to the licensee. The pocket card shall be
18verification that the required fee for the current period has
19been paid and shall indicate that the person named thereon is
20licensed for the current renewal period as a managing broker,
21broker, or leasing agent as the case may be. The pocket card
22shall further indicate that the person named thereon is
23authorized by the Department to engage in the licensed activity
24appropriate for his or her status (managing broker, broker, or
25leasing agent). Each licensee shall carry on his or her person
26his or her pocket card or, if such pocket card has not yet been

 

 

HB5256- 24 -LRB100 16043 SMS 31162 b

1issued, a properly issued sponsor card when engaging in any
2licensed activity and shall display the same on demand.
3    (f) The Department shall provide to the sponsoring broker a
4notice of renewal for all sponsored licensees by mailing the
5notice to the sponsoring broker's address of record, or, at the
6Department's discretion, by an electronic means as provided for
7by rule.
8    (g) Upon request from the sponsoring broker, the Department
9shall make available to the sponsoring broker, either by mail
10or by an electronic means at the discretion of the Department,
11a listing of licensees under this Act who, according to the
12records of the Department, are sponsored by that broker. Every
13licensee associated with or employed by a broker whose license
14is revoked, suspended, terminated, or expired shall be
15considered as inoperative until such time as the sponsoring
16broker's license is reinstated or renewed, or the licensee
17changes employment as set forth in subsection (c) of Section
185-40 of this Act.
19(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18.)
 
20    (225 ILCS 454/5-70)
21    (Section scheduled to be repealed on January 1, 2020)
22    Sec. 5-70. Continuing education requirement; managing
23broker or broker.
24    (a) The requirements of this Section apply to all managing
25brokers and brokers.

 

 

HB5256- 25 -LRB100 16043 SMS 31162 b

1    (b) Except as otherwise provided in this Section, each
2person who applies for renewal of his or her license as a
3managing broker or broker must successfully complete 6 hours of
4real estate continuing education courses recommended by the
5Board and approved by the Department for each year of the
6pre-renewal period. The courses shall be completed during the
7period established by the Department by rule. In addition,
8beginning with the pre-renewal period for managing broker
9licensees that begins after the effective date of this Act,
10those licensees renewing or obtaining a managing broker's
11license must successfully complete a 12-hour broker management
12continuing education course approved by the Department each
13pre-renewal period. The broker management continuing education
14course must be completed in the classroom or by other
15interactive delivery method between the instructor and the
16students and during the period established by the Department by
17rule. Successful completion of the course shall include
18achieving a passing score as provided by rule on a test
19developed and administered in accordance with rules adopted by
20the Department. No license may be renewed except upon the
21successful completion of the required courses or their
22equivalent or upon a waiver of those requirements for good
23cause shown as determined by the Secretary with the
24recommendation of the Board. The requirements of this Article
25are applicable to all managing brokers and brokers except those
26managing brokers and brokers who, during the pre-renewal

 

 

HB5256- 26 -LRB100 16043 SMS 31162 b

1period:
2        (1) serve in the armed services of the United States;
3        (2) serve as an elected State or federal official;
4        (3) serve as a full-time employee of the Department; or
5        (4) are admitted to practice law pursuant to Illinois
6    Supreme Court rule.
7    (c) (Blank).
8    (d) A person receiving an initial license during the 90
9days before the renewal date shall not be required to complete
10the continuing education courses provided for in subsection (b)
11of this Section as a condition of initial license renewal.
12    (e) The continuing education requirement for brokers and
13managing brokers shall consist of a single core curriculum and
14an elective curriculum, to be recommended by the Board and
15approved by the Department in accordance with this subsection.
16The core curriculum shall not be further divided into
17subcategories or divisions of instruction. The core curriculum
18shall consist of 4 hours per 2-year pre-renewal period on
19subjects that may include, but are not limited to, advertising,
20agency, disclosures, escrow, fair housing, leasing agent
21management, and license law. The amount of time allotted to
22each of these subjects shall be recommended by the Board and
23determined by the Department. The Department, upon the
24recommendation of the Board, shall review the core curriculum
25every 4 years, at a minimum, and shall revise the curriculum if
26necessary. However, the core curriculum's total hourly

 

 

HB5256- 27 -LRB100 16043 SMS 31162 b

1requirement shall only be subject to change by amendment of
2this subsection, and any change to the core curriculum shall
3not be effective for a period of 6 months after such change is
4made by the Department. The Department shall provide notice to
5all approved education providers of any changes to the core
6curriculum. When determining whether revisions of the core
7curriculum's subjects or specific time requirements are
8necessary, the Board shall consider recent changes in
9applicable laws, new laws, and areas of the license law and the
10Department policy that the Board deems appropriate, and any
11other subject areas the Board deems timely and applicable in
12order to prevent violations of this Act and to protect the
13public. In establishing a recommendation to the Department
14regarding the elective curriculum, the Board shall consider
15subjects that cover the various aspects of the practice of real
16estate that are covered under the scope of this Act.
17    (f) The subject areas of continuing education courses
18recommended by the Board and approved by the Department shall
19be meant to protect the professionalism of the industry, the
20consumer, and the public and prevent violations of this Act and
21may include without limitation the following:
22        (1) license law and escrow;
23        (2) antitrust;
24        (3) fair housing;
25        (4) agency;
26        (5) appraisal;

 

 

HB5256- 28 -LRB100 16043 SMS 31162 b

1        (6) property management;
2        (7) residential brokerage;
3        (8) farm property management;
4        (9) rights and duties of sellers, buyers, and brokers;
5        (10) commercial brokerage and leasing;
6        (11) real estate financing;
7        (12) disclosures;
8        (13) leasing agent management; and
9        (14) advertising.
10    (g) In lieu of credit for those courses listed in
11subsection (f) of this Section, credit may be earned for
12serving as a licensed instructor in an approved course of
13continuing education. The amount of credit earned for teaching
14a course shall be the amount of continuing education credit for
15which the course is approved for licensees taking the course.
16    (h) Credit hours may be earned for self-study programs
17approved by the Department.
18    (i) A managing broker or broker may earn credit for a
19specific continuing education course only once during the
20pre-renewal period.
21    (j) No more than 6 hours of continuing education credit may
22be taken in one calendar day.
23    (k) To promote the offering of a uniform and consistent
24course content, the Department may provide for the development
25of a single broker management course to be offered by all
26education providers who choose to offer the broker management

 

 

HB5256- 29 -LRB100 16043 SMS 31162 b

1continuing education course. The Department may contract for
2the development of the 12-hour broker management continuing
3education course with an outside vendor or consultant and, if
4the course is developed in this manner, the Department or the
5outside consultant shall license the use of that course to all
6approved education providers who wish to provide the course.
7    (l) Except as specifically provided in this Act, continuing
8education credit hours may not be earned for completion of pre
9or post-license courses. The approved 30-hour post-license
10course for broker licensees shall satisfy the continuing
11education requirement for the pre-renewal period in which the
12course is taken. The approved 45-hour brokerage administration
13and management course shall satisfy the 12-hour broker
14management continuing education requirement for the
15pre-renewal period in which the course is taken.
16(Source: P.A. 99-227, eff. 8-3-15; 99-728, eff. 1-1-17;
17100-188, eff. 1-1-18.)
 
18    (225 ILCS 454/5-80)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 5-80. Evidence of compliance with continuing
21education requirements.
22    (a) Each renewal applicant shall certify, on his or her
23renewal application, full compliance with continuing education
24requirements set forth in Section 5-70. The education provider
25shall retain and submit to the Department after the completion

 

 

HB5256- 30 -LRB100 16043 SMS 31162 b

1of each course evidence of those successfully completing the
2course as provided by rule.
3    (b) The Department may require additional evidence
4demonstrating compliance with the continuing education
5requirements. The renewal applicant shall retain and produce
6the evidence of compliance upon request of the Department.
7    (c) Notwithstanding any other provision to the contrary,
8the Department shall establish a continuing education
9completion deadline for leasing agents, brokers, managing
10brokers, and instructors and require evidence of compliance
11with the continuing education requirements before the renewal
12of a license.
13(Source: P.A. 100-188, eff. 1-1-18.)
 
14    (225 ILCS 454/10-15)
15    (Section scheduled to be repealed on January 1, 2020)
16    Sec. 10-15. No compensation to persons in violation of Act;
17compensation to unlicensed persons; consumer.
18    (a) No compensation may be paid to any unlicensed person in
19exchange for the person performing licensed activities in
20violation of this Act.
21    (b) No action or suit shall be instituted, nor recovery
22therein be had, in any court of this State by any person,
23partnership, registered limited liability partnership, limited
24liability company, or corporation for compensation for any act
25done or service performed, the doing or performing of which is

 

 

HB5256- 31 -LRB100 16043 SMS 31162 b

1prohibited by this Act to other than licensed managing brokers,
2brokers, or leasing agents unless the person, partnership,
3registered limited liability partnership, limited liability
4company, or corporation was duly licensed hereunder as a
5managing broker, broker, or leasing agent under this Act at the
6time that any such act was done or service performed that would
7give rise to a cause of action for compensation.
8    (c) A licensee may offer compensation, including prizes,
9merchandise, services, rebates, discounts, or other
10consideration to an unlicensed person who is a party to a
11contract to buy or sell real estate or is a party to a contract
12for the lease of real estate, so long as the offer complies
13with the provisions of subdivision (35) of subsection (a) of
14Section 20-20 of this Act.
15    (d) A licensee may offer cash, gifts, prizes, awards,
16coupons, merchandise, rebates or chances to win a game of
17chance, if not prohibited by any other law or statute, to a
18consumer as an inducement to that consumer to use the services
19of the licensee even if the licensee and consumer do not
20ultimately enter into a broker-client relationship so long as
21the offer complies with the provisions of subdivision (35) of
22subsection (a) of Section 20-20 of this Act.
23(Source: P.A. 99-227, eff. 8-3-15.)
 
24    (225 ILCS 454/10-20)
25    (Section scheduled to be repealed on January 1, 2020)

 

 

HB5256- 32 -LRB100 16043 SMS 31162 b

1    Sec. 10-20. Sponsoring broker; employment agreement.
2    (a) A licensee may perform activities as a licensee only
3for his or her sponsoring broker. A licensee must have only one
4sponsoring broker at any one time.
5    (b) Every broker who employs licensees or has an
6independent contractor relationship with a licensee shall have
7a written employment agreement with each such licensee. The
8broker having this written employment agreement with the
9licensee must be that licensee's sponsoring broker.
10    (c) Every sponsoring broker must have a written employment
11agreement with each licensee the broker sponsors. The agreement
12shall address the employment or independent contractor
13relationship terms, including without limitation supervision,
14duties, compensation, and termination.
15    (d) Every sponsoring broker must have a written employment
16agreement with each licensed personal assistant who assists a
17licensee sponsored by the sponsoring broker. This requirement
18applies to all licensed personal assistants whether or not they
19perform licensed activities in their capacity as a personal
20assistant. The agreement shall address the employment or
21independent contractor relationship terms, including without
22limitation supervision, duties, compensation, and termination.
23    (e) Notwithstanding the fact that a sponsoring broker has
24an employment agreement with a licensee, a sponsoring broker
25may pay compensation directly to a business entity corporation
26solely owned by that licensee that has been formed for the

 

 

HB5256- 33 -LRB100 16043 SMS 31162 b

1purpose of receiving compensation earned by the licensee. A
2business entity corporation formed for the purpose herein
3stated in this subsection (e) shall not be required to be
4licensed under this Act so long as the person that who is the
5sole owner shareholder of the business entity corporation is
6licensed.
7(Source: P.A. 91-245, eff. 12-31-99.)
 
8    (225 ILCS 454/20-20)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 20-20. Grounds for discipline.
11    (a) The Department may refuse to issue or renew a license,
12may place on probation, suspend, or revoke any license,
13reprimand, or take any other disciplinary or non-disciplinary
14action as the Department may deem proper and impose a fine not
15to exceed $25,000 upon any licensee or applicant under this Act
16or any person who holds himself or herself out as an applicant
17or licensee or against a licensee in handling his or her own
18property, whether held by deed, option, or otherwise, for any
19one or any combination of the following causes:
20        (1) Fraud or misrepresentation in applying for, or
21    procuring, a license under this Act or in connection with
22    applying for renewal of a license under this Act.
23        (2) The conviction of or plea of guilty or plea of nolo
24    contendere to a felony or misdemeanor in this State or any
25    other jurisdiction; or the entry of an administrative

 

 

HB5256- 34 -LRB100 16043 SMS 31162 b

1    sanction by a government agency in this State or any other
2    jurisdiction. Action taken under this paragraph (2) for a
3    misdemeanor or an administrative sanction is limited to a
4    misdemeanor or administrative sanction that has as an
5    essential element dishonesty or fraud or involves larceny,
6    embezzlement, or obtaining money, property, or credit by
7    false pretenses or by means of a confidence game.
8        (3) Inability to practice the profession with
9    reasonable judgment, skill, or safety as a result of a
10    physical illness, including, but not limited to,
11    deterioration through the aging process or loss of motor
12    skill, or a mental illness or disability.
13        (4) Practice under this Act as a licensee in a retail
14    sales establishment from an office, desk, or space that is
15    not separated from the main retail business by a separate
16    and distinct area within the establishment.
17        (5) Having been disciplined by another state, the
18    District of Columbia, a territory, a foreign nation, or a
19    governmental agency authorized to impose discipline if at
20    least one of the grounds for that discipline is the same as
21    or the equivalent of one of the grounds for which a
22    licensee may be disciplined under this Act. A certified
23    copy of the record of the action by the other state or
24    jurisdiction shall be prima facie evidence thereof.
25        (6) Engaging in the practice of real estate brokerage
26    without a license or after the licensee's license or

 

 

HB5256- 35 -LRB100 16043 SMS 31162 b

1    temporary permit was expired or while the license was
2    inoperative.
3        (7) Cheating on or attempting to subvert the Real
4    Estate License Exam or continuing education exam.
5        (8) Aiding or abetting an applicant to subvert or cheat
6    on the Real Estate License Exam or continuing education
7    exam administered pursuant to this Act.
8        (9) Advertising that is inaccurate, misleading, or
9    contrary to the provisions of the Act.
10        (10) Making any substantial misrepresentation or
11    untruthful advertising.
12        (11) Making any false promises of a character likely to
13    influence, persuade, or induce.
14        (12) Pursuing a continued and flagrant course of
15    misrepresentation or the making of false promises through
16    licensees, employees, agents, advertising, or otherwise.
17        (13) Any misleading or untruthful advertising, or
18    using any trade name or insignia of membership in any real
19    estate organization of which the licensee is not a member.
20        (14) Acting for more than one party in a transaction
21    without providing written notice to all parties for whom
22    the licensee acts.
23        (15) Representing or attempting to represent a broker
24    other than the sponsoring broker.
25        (16) Failure to account for or to remit any moneys or
26    documents coming into his or her possession that belong to

 

 

HB5256- 36 -LRB100 16043 SMS 31162 b

1    others.
2        (17) Failure to maintain and deposit in a special
3    account, separate and apart from personal and other
4    business accounts, all escrow moneys belonging to others
5    entrusted to a licensee while acting as a broker, escrow
6    agent, or temporary custodian of the funds of others or
7    failure to maintain all escrow moneys on deposit in the
8    account until the transactions are consummated or
9    terminated, except to the extent that the moneys, or any
10    part thereof, shall be:
11            (A) disbursed prior to the consummation or
12        termination (i) in accordance with the written
13        direction of the principals to the transaction or their
14        duly authorized agents, (ii) in accordance with
15        directions providing for the release, payment, or
16        distribution of escrow moneys contained in any written
17        contract signed by the principals to the transaction or
18        their duly authorized agents, or (iii) pursuant to an
19        order of a court of competent jurisdiction; or
20            (B) deemed abandoned and transferred to the Office
21        of the State Treasurer to be handled as unclaimed
22        property pursuant to the Revised Uniform Unclaimed
23        Property Act. Escrow moneys may be deemed abandoned
24        under this subparagraph (B) only: (i) in the absence of
25        disbursement under subparagraph (A); (ii) in the
26        absence of notice of the filing of any claim in a court

 

 

HB5256- 37 -LRB100 16043 SMS 31162 b

1        of competent jurisdiction; and (iii) if 6 months have
2        elapsed after the receipt of a written demand for the
3        escrow moneys from one of the principals to the
4        transaction or the principal's duly authorized agent.
5    The account shall be noninterest bearing, unless the
6    character of the deposit is such that payment of interest
7    thereon is otherwise required by law or unless the
8    principals to the transaction specifically require, in
9    writing, that the deposit be placed in an interest bearing
10    account.
11        (18) Failure to make available to the Department all
12    escrow records and related documents maintained in
13    connection with the practice of real estate within 24 hours
14    of a request for those documents by Department personnel.
15        (19) Failing to furnish copies upon request of
16    documents relating to a real estate transaction to a party
17    who has executed that document.
18        (20) Failure of a sponsoring broker to timely provide
19    information, sponsor cards, or termination of licenses to
20    the Department.
21        (21) Engaging in dishonorable, unethical, or
22    unprofessional conduct of a character likely to deceive,
23    defraud, or harm the public.
24        (22) Commingling the money or property of others with
25    his or her own money or property.
26        (23) Employing any person on a purely temporary or

 

 

HB5256- 38 -LRB100 16043 SMS 31162 b

1    single deal basis as a means of evading the law regarding
2    payment of commission to nonlicensees on some contemplated
3    transactions.
4        (24) Permitting the use of his or her license as a
5    broker to enable a leasing agent or unlicensed person to
6    operate a real estate business without actual
7    participation therein and control thereof by the broker.
8        (25) Any other conduct, whether of the same or a
9    different character from that specified in this Section,
10    that constitutes dishonest dealing.
11        (26) Displaying a "for rent" or "for sale" sign on any
12    property without the written consent of an owner or his or
13    her duly authorized agent or advertising by any means that
14    any property is for sale or for rent without the written
15    consent of the owner or his or her authorized agent.
16        (27) Failing to provide information requested by the
17    Department, or otherwise respond to that request, within 30
18    days of the request.
19        (28) Advertising by means of a blind advertisement,
20    except as otherwise permitted in Section 10-30 of this Act.
21        (29) Offering guaranteed sales plans, as defined in
22    clause (A) of this subdivision (29), except to the extent
23    hereinafter set forth:
24            (A) A "guaranteed sales plan" is any real estate
25        purchase or sales plan whereby a licensee enters into a
26        conditional or unconditional written contract with a

 

 

HB5256- 39 -LRB100 16043 SMS 31162 b

1        seller, prior to entering into a brokerage agreement
2        with the seller, by the terms of which a licensee
3        agrees to purchase a property of the seller within a
4        specified period of time at a specific price in the
5        event the property is not sold in accordance with the
6        terms of a brokerage agreement to be entered into
7        between the sponsoring broker and the seller.
8            (B) A licensee offering a guaranteed sales plan
9        shall provide the details and conditions of the plan in
10        writing to the party to whom the plan is offered.
11            (C) A licensee offering a guaranteed sales plan
12        shall provide to the party to whom the plan is offered
13        evidence of sufficient financial resources to satisfy
14        the commitment to purchase undertaken by the broker in
15        the plan.
16            (D) Any licensee offering a guaranteed sales plan
17        shall undertake to market the property of the seller
18        subject to the plan in the same manner in which the
19        broker would market any other property, unless the
20        agreement with the seller provides otherwise.
21            (E) The licensee cannot purchase seller's property
22        until the brokerage agreement has ended according to
23        its terms or is otherwise terminated.
24            (F) Any licensee who fails to perform on a
25        guaranteed sales plan in strict accordance with its
26        terms shall be subject to all the penalties provided in

 

 

HB5256- 40 -LRB100 16043 SMS 31162 b

1        this Act for violations thereof and, in addition, shall
2        be subject to a civil fine payable to the party injured
3        by the default in an amount of up to $25,000.
4        (30) Influencing or attempting to influence, by any
5    words or acts, a prospective seller, purchaser, occupant,
6    landlord, or tenant of real estate, in connection with
7    viewing, buying, or leasing real estate, so as to promote
8    or tend to promote the continuance or maintenance of
9    racially and religiously segregated housing or so as to
10    retard, obstruct, or discourage racially integrated
11    housing on or in any street, block, neighborhood, or
12    community.
13        (31) Engaging in any act that constitutes a violation
14    of any provision of Article 3 of the Illinois Human Rights
15    Act, whether or not a complaint has been filed with or
16    adjudicated by the Human Rights Commission.
17        (32) Inducing any party to a contract of sale or lease
18    or brokerage agreement to break the contract of sale or
19    lease or brokerage agreement for the purpose of
20    substituting, in lieu thereof, a new contract for sale or
21    lease or brokerage agreement with a third party.
22        (33) Negotiating a sale, exchange, or lease of real
23    estate directly with any person if the licensee knows that
24    the person has an exclusive brokerage agreement with
25    another broker, unless specifically authorized by that
26    broker.

 

 

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1        (34) When a licensee is also an attorney, acting as the
2    attorney for either the buyer or the seller in the same
3    transaction in which the licensee is acting or has acted as
4    a managing broker or broker.
5        (35) Advertising or offering merchandise or services
6    as free if any conditions or obligations necessary for
7    receiving the merchandise or services are not disclosed in
8    the same advertisement or offer. These conditions or
9    obligations include without limitation the requirement
10    that the recipient attend a promotional activity or visit a
11    real estate site. As used in this subdivision (35), "free"
12    includes terms such as "award", "prize", "no charge", "free
13    of charge", "without charge", and similar words or phrases
14    that reasonably lead a person to believe that he or she may
15    receive or has been selected to receive something of value,
16    without any conditions or obligations on the part of the
17    recipient.
18        (36) (Blank).
19        (37) Violating the terms of a disciplinary order issued
20    by the Department.
21        (38) Paying or failing to disclose compensation in
22    violation of Article 10 of this Act.
23        (39) Requiring a party to a transaction who is not a
24    client of the licensee to allow the licensee to retain a
25    portion of the escrow moneys for payment of the licensee's
26    commission or expenses as a condition for release of the

 

 

HB5256- 42 -LRB100 16043 SMS 31162 b

1    escrow moneys to that party.
2        (40) Disregarding or violating any provision of this
3    Act or the published rules adopted promulgated by the
4    Department to enforce this Act or aiding or abetting any
5    individual, foreign or domestic partnership, registered
6    limited liability partnership, limited liability company,
7    or corporation, or other business entity in disregarding
8    any provision of this Act or the published rules adopted
9    promulgated by the Department to enforce this Act.
10        (41) Failing to provide the minimum services required
11    by Section 15-75 of this Act when acting under an exclusive
12    brokerage agreement.
13        (42) Habitual or excessive use or addiction to alcohol,
14    narcotics, stimulants, or any other chemical agent or drug
15    that results in a managing broker, broker, or leasing
16    agent's inability to practice with reasonable skill or
17    safety.
18        (43) Enabling, aiding, or abetting an auctioneer, as
19    defined in the Auction License Act, to conduct a real
20    estate auction in a manner that is in violation of this
21    Act.
22        (44) Permitting any leasing agent or temporary leasing
23    agent permit holder to engage in activities that require a
24    broker's or managing broker's license.
25    (b) The Department may refuse to issue or renew or may
26suspend the license of any person who fails to file a return,

 

 

HB5256- 43 -LRB100 16043 SMS 31162 b

1pay the tax, penalty or interest shown in a filed return, or
2pay any final assessment of tax, penalty, or interest, as
3required by any tax Act administered by the Department of
4Revenue, until such time as the requirements of that tax Act
5are satisfied in accordance with subsection (g) of Section
62105-15 of the Civil Administrative Code of Illinois.
7    (c) The Department shall deny a license or renewal
8authorized by this Act to a person who has defaulted on an
9educational loan or scholarship provided or guaranteed by the
10Illinois Student Assistance Commission or any governmental
11agency of this State in accordance with item (5) of subsection
12(a) of Section 2105-15 of the Civil Administrative Code of
13Illinois.
14    (d) In cases where the Department of Healthcare and Family
15Services (formerly Department of Public Aid) has previously
16determined that a licensee or a potential licensee is more than
1730 days delinquent in the payment of child support and has
18subsequently certified the delinquency to the Department may
19refuse to issue or renew or may revoke or suspend that person's
20license or may take other disciplinary action against that
21person based solely upon the certification of delinquency made
22by the Department of Healthcare and Family Services in
23accordance with item (5) of subsection (a) of Section 2105-15
24of the Civil Administrative Code of Illinois.
25    (e) In enforcing this Section, the Department or Board upon
26a showing of a possible violation may compel an individual

 

 

HB5256- 44 -LRB100 16043 SMS 31162 b

1licensed to practice under this Act, or who has applied for
2licensure under this Act, to submit to a mental or physical
3examination, or both, as required by and at the expense of the
4Department. The Department or Board may order the examining
5physician to present testimony concerning the mental or
6physical examination of the licensee or applicant. No
7information shall be excluded by reason of any common law or
8statutory privilege relating to communications between the
9licensee or applicant and the examining physician. The
10examining physicians shall be specifically designated by the
11Board or Department. The individual to be examined may have, at
12his or her own expense, another physician of his or her choice
13present during all aspects of this examination. Failure of an
14individual to submit to a mental or physical examination, when
15directed, shall be grounds for suspension of his or her license
16until the individual submits to the examination if the
17Department finds, after notice and hearing, that the refusal to
18submit to the examination was without reasonable cause.
19    If the Department or Board finds an individual unable to
20practice because of the reasons set forth in this Section, the
21Department or Board may require that individual to submit to
22care, counseling, or treatment by physicians approved or
23designated by the Department or Board, as a condition, term, or
24restriction for continued, reinstated, or renewed licensure to
25practice; or, in lieu of care, counseling, or treatment, the
26Department may file, or the Board may recommend to the

 

 

HB5256- 45 -LRB100 16043 SMS 31162 b

1Department to file, a complaint to immediately suspend, revoke,
2or otherwise discipline the license of the individual. An
3individual whose license was granted, continued, reinstated,
4renewed, disciplined or supervised subject to such terms,
5conditions, or restrictions, and who fails to comply with such
6terms, conditions, or restrictions, shall be referred to the
7Secretary for a determination as to whether the individual
8shall have his or her license suspended immediately, pending a
9hearing by the Department.
10    In instances in which the Secretary immediately suspends a
11person's license under this Section, a hearing on that person's
12license must be convened by the Department within 30 days after
13the suspension and completed without appreciable delay. The
14Department and Board shall have the authority to review the
15subject individual's record of treatment and counseling
16regarding the impairment to the extent permitted by applicable
17federal statutes and regulations safeguarding the
18confidentiality of medical records.
19    An individual licensed under this Act and affected under
20this Section shall be afforded an opportunity to demonstrate to
21the Department or Board that he or she can resume practice in
22compliance with acceptable and prevailing standards under the
23provisions of his or her license.
24(Source: P.A. 99-227, eff. 8-3-15; 100-22, eff. 1-1-18;
25100-188, eff. 1-1-18; 100-534, eff. 9-22-17; revised 10-2-17.)
 

 

 

HB5256- 46 -LRB100 16043 SMS 31162 b

1    Section 20. The Real Estate Appraiser Licensing Act of 2002
2is amended by changing Sections 5-45 and 15-15 as follows:
 
3    (225 ILCS 458/5-45)
4    (Section scheduled to be repealed on January 1, 2022)
5    Sec. 5-45. Continuing education renewal requirements.
6    (a) The continuing education requirements for a person to
7renew a license as a State certified general real estate
8appraiser or a State certified residential real estate
9appraiser shall be established by rule.
10    (b) The continuing education requirements for a person to
11renew a license as an associate real estate trainee appraiser
12shall be established by rule.
13    (c) Notwithstanding any other provision to the contrary,
14the Department shall establish a continuing education
15completion deadline for appraisal licensees and require
16evidence of compliance with the continuing education
17requirements before the renewal of a license.
18(Source: P.A. 96-844, eff. 12-23-09.)
 
19    (225 ILCS 458/15-15)
20    (Section scheduled to be repealed on January 1, 2022)
21    Sec. 15-15. Investigation; notice; hearing.
22    (a) Upon the motion of the Department or the Board or upon
23a complaint in writing of a person setting forth facts that, if
24proven, would constitute grounds for suspension, revocation,

 

 

HB5256- 47 -LRB100 16043 SMS 31162 b

1or other disciplinary action against a licensee or applicant
2for licensure, the Department shall investigate the actions of
3the licensee or applicant. If, upon investigation, the
4Department believes that there may be cause for suspension,
5revocation, or other disciplinary action, the Department shall
6use the services of a State certified general real estate
7appraiser, a State certified residential real estate
8appraiser, or the Real Estate Coordinator to assist in
9determining whether grounds for disciplinary action exist
10prior to commencing formal disciplinary proceedings.
11    (b) Formal disciplinary proceedings shall commence upon
12the issuance of a written complaint describing the charges that
13are the basis of the disciplinary action and delivery of the
14detailed complaint to the address of record of the licensee or
15applicant. The Department shall notify the licensee or
16applicant to file a verified written answer within 20 days
17after the service of the notice and complaint. The notification
18shall inform the licensee or applicant of his or her right to
19be heard in person or by legal counsel; that the hearing will
20be afforded not sooner than 30 days after service of the
21complaint; that failure to file an answer will result in a
22default being entered against the licensee or applicant; that
23the license may be suspended, revoked, or placed on
24probationary status; and that other disciplinary action may be
25taken pursuant to this Act, including limiting the scope,
26nature, or extent of the licensee's practice. If the licensee

 

 

HB5256- 48 -LRB100 16043 SMS 31162 b

1or applicant fails to file an answer after service of notice,
2his or her license may, at the discretion of the Department, be
3suspended, revoked, or placed on probationary status and the
4Department may take whatever disciplinary action it deems
5proper, including limiting the scope, nature, or extent of the
6person's practice, without a hearing.
7    (c) At the time and place fixed in the notice, the Board
8shall conduct hearing of the charges, providing both the
9accused person and the complainant ample opportunity to present
10in person or by counsel such statements, testimony, evidence,
11and argument as may be pertinent to the charges or to a defense
12thereto.
13    (d) The Board shall present to the Secretary a written
14report of its findings and recommendations. A copy of the
15report shall be served upon the licensee or applicant, either
16personally or by certified mail. Within 20 days after the
17service, the licensee or applicant may present the Secretary
18with a motion in writing for either a rehearing, a proposed
19finding of fact, a conclusion of law, or an alternative
20sanction, and shall specify the particular grounds for the
21request. If the accused orders a transcript of the record as
22provided in this Act, the time elapsing thereafter and before
23the transcript is ready for delivery to the accused shall not
24be counted as part of the 20 days. If the Secretary is not
25satisfied that substantial justice has been done, the Secretary
26may order a rehearing by the Board or other special committee

 

 

HB5256- 49 -LRB100 16043 SMS 31162 b

1appointed by the Secretary, may remand the matter to the Board
2for its reconsideration of the matter based on the pleadings
3and evidence presented to the Board, or may enter a final order
4in contravention of the Board's recommendation. In all
5instances under this Act in which the Board has rendered a
6recommendation to the Secretary with respect to a particular
7licensee or applicant, the Secretary, if he or she disagrees
8with the recommendation of the Board, shall file with the Board
9and provide to the licensee or applicant a copy of the
10Secretary's specific written reasons for disagreement with the
11Board. The reasons shall be filed within 60 days of the Board's
12recommendation to the Secretary and prior to any contrary
13action. Notwithstanding a licensee's or applicant's failure to
14file a motion for rehearing, the Secretary shall have the right
15to take any of the actions specified in this subsection (d).
16Upon the suspension or revocation of a license, the licensee
17shall be required to surrender his or her license to the
18Department, and upon failure or refusal to do so, the
19Department shall have the right to seize the license.
20    (e) The Department has the power to issue subpoenas and
21subpoenas duces tecum to bring before it any person in this
22State, to take testimony, or to require production of any
23records relevant to an inquiry or hearing by the Board in the
24same manner as prescribed by law in judicial proceedings in the
25courts of this State. In a case of refusal of a witness to
26attend, testify, or to produce books or papers concerning a

 

 

HB5256- 50 -LRB100 16043 SMS 31162 b

1matter upon which he or she might be lawfully examined, the
2circuit court of the county where the hearing is held, upon
3application of the Department or any party to the proceeding,
4may compel obedience by proceedings as for contempt.
5    (f) Any license that is suspended indefinitely or revoked
6may not be restored for a minimum period of 2 years, or as
7otherwise ordered by the Secretary.
8    (g) In addition to the provisions of this Section
9concerning the conduct of hearings and the recommendations for
10discipline, the Department has the authority to negotiate
11disciplinary and non-disciplinary settlement agreements
12concerning any license issued under this Act. All such
13agreements shall be recorded as Consent Orders or Consent to
14Administrative Supervision Orders.
15    (h) The Secretary shall have the authority to appoint an
16attorney duly licensed to practice law in the State of Illinois
17to serve as the hearing officer in any action to suspend,
18revoke, or otherwise discipline any license issued by the
19Department. The Hearing Officer shall have full authority to
20conduct the hearing.
21    (i) The Department, at its expense, shall preserve a record
22of all formal hearings of any contested case involving the
23discipline of a license. At all hearings or pre-hearing
24conferences, the Department and the licensee shall be entitled
25to have the proceedings transcribed by a certified shorthand
26reporter. A copy of the transcribed proceedings shall be made

 

 

HB5256- 51 -LRB100 16043 SMS 31162 b

1available to the licensee by the certified shorthand reporter
2upon payment of the prevailing contract copy rate.
3(Source: P.A. 96-844, eff. 12-23-09.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.