Rep. Lakesia Collins

Filed: 4/8/2021

 

 


 

 


 
10200HB3714ham002LRB102 03960 SPS 24465 a

1
AMENDMENT TO HOUSE BILL 3714

2    AMENDMENT NO. ______. Amend House Bill 3714 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Regulatory Sunset Act is amended by
5changing Section 4.32 and by adding Section 4.41 as follows:
 
6    (5 ILCS 80/4.32)
7    Sec. 4.32. Acts repealed on January 1, 2022. The following
8Acts are repealed on January 1, 2022:
9    The Boxing and Full-contact Martial Arts Act.
10    The Cemetery Oversight Act.
11    The Collateral Recovery Act.
12    The Community Association Manager Licensing and
13Disciplinary Act.
14    The Crematory Regulation Act.
15    The Detection of Deception Examiners Act.
16    The Home Inspector License Act.

 

 

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1    The Illinois Health Information Exchange and Technology
2Act.
3    The Medical Practice Act of 1987.
4    The Registered Interior Designers Act.
5    The Massage Licensing Act.
6    The Petroleum Equipment Contractors Licensing Act.
7    The Radiation Protection Act of 1990.
8    The Real Estate Appraiser Licensing Act of 2002.
9    The Water Well and Pump Installation Contractor's License
10Act.
11(Source: P.A. 100-920, eff. 8-17-18; 101-316, eff. 8-9-19;
12101-614, eff. 12-20-19; 101-639, eff. 6-12-20.)
 
13    (5 ILCS 80/4.41 new)
14    Sec. 4.41. Act repealed on January 1, 2032. The following
15Act is repealed on January 1, 2032:
16    The Real Estate Appraiser Licensing Act of 2002.
 
17    Section 10. The Real Estate Appraiser Licensing Act of
182002 is amended by changing Sections 1-10, 5-5, 5-10, 5-15,
195-20, 5-20.5, 5-22, 5-25, 5-30, 5-35, 10-5, 10-10, 15-5,
2015-10, 15-15, 15-55, 20-5, 20-10, 25-10, 25-15, 25-16, 25-20,
2125-25, and 30-5 and by adding Sections 1-12, 5-26, 15-10.1,
2215-11, and 25-35 as follows:
 
23    (225 ILCS 458/1-10)

 

 

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1    (Section scheduled to be repealed on January 1, 2022)
2    Sec. 1-10. Definitions. As used in this Act, unless the
3context otherwise requires:
4    "Accredited college or university, junior college, or
5community college" means a college or university, junior
6college, or community college that is approved or accredited
7by the Board of Higher Education, a regional or national
8accreditation association, or by an accrediting agency that is
9recognized by the U.S. Secretary of Education.
10    "Address of record" means the designated street address,
11which may not be a post office box, recorded by the Department
12in the applicant's or licensee's application file or license
13file as maintained by the Department's licensure maintenance
14unit. It is the duty of the applicant or licensee to inform the
15Department of any change of address and those changes must be
16made either through the Department's website or by contacting
17the Department.
18    "Applicant" means person who applies to the Department for
19a license under this Act.
20    "Appraisal" means (noun) the act or process of developing
21an opinion of value; an opinion of value (adjective) of or
22pertaining to appraising and related functions, such as
23appraisal practice or appraisal services.
24    "Appraisal assignment" means a valuation service provided
25pursuant to as a consequence of an agreement between an
26appraiser and a client.

 

 

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1    "Appraisal consulting" means the act or process of
2developing an analysis, recommendation, or opinion to solve a
3problem, where an opinion of value is a component of the
4analysis leading to the assignment results.
5    "Appraisal firm" means an appraisal entity that is 100%
6owned and controlled by a person or persons licensed in
7Illinois as a certified general real estate appraiser or a
8certified residential real estate appraiser. "Appraisal firm"
9does not include an appraisal management company.
10    "Appraisal management company" means any corporation,
11limited liability company, partnership, sole proprietorship,
12subsidiary, unit, or other business entity that directly or
13indirectly: (1) provides appraisal management services to
14creditors or secondary mortgage market participants, including
15affiliates; (2) provides appraisal management services in
16connection with valuing the consumer's principal dwelling as
17security for a consumer credit transaction (including consumer
18credit transactions incorporated into securitizations); and
19(3) within a given year, oversees an appraiser panel of any
20size of State-certified appraisers in Illinois; and (4) any
21appraisal management company that, within a given 12-month
22period year, oversees an appraiser panel of 16 or more
23State-certified appraisers in Illinois or 25 or more
24State-certified or State-licensed appraisers in 2 or more
25jurisdictions shall be subject to the appraisal management
26company national registry fee in addition to the appraiser

 

 

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1panel fee. "Appraisal management company" includes a hybrid
2entity.
3    "Appraisal practice" means valuation services performed by
4an individual acting as an appraiser, including, but not
5limited to, appraisal or , appraisal review, or appraisal
6consulting.
7    "Appraisal report" means any communication, written or
8oral, of an appraisal or appraisal review that is transmitted
9to a client upon completion of an assignment.
10    "Appraisal review" means the act or process of developing
11and communicating an opinion about the quality of another
12appraiser's work that was performed as part of an appraisal,
13appraisal review, or appraisal assignment.
14    "Appraisal Subcommittee" means the Appraisal Subcommittee
15of the Federal Financial Institutions Examination Council as
16established by Title XI.
17    "Appraiser" means a person who performs real estate or
18real property appraisals competently and in a manner that is
19independent, impartial, and objective.
20    "Appraiser panel" means a network, list, or roster of
21licensed or certified appraisers approved by the appraisal
22management company or by the end-user client to perform
23appraisals as independent contractors for the appraisal
24management company. "Appraiser panel" includes both appraisers
25accepted by an appraisal management company for consideration
26for future appraisal assignments and appraisers engaged by an

 

 

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1appraisal management company to perform one or more
2appraisals. For the purposes of determining the size of an
3appraiser panel, only independent contractors of hybrid
4entities shall be counted towards the appraiser panel.
5    "AQB" means the Appraisal Qualifications Board of the
6Appraisal Foundation.
7    "Associate real estate trainee appraiser" means an
8entry-level appraiser who holds a license of this
9classification under this Act with restrictions as to the
10scope of practice in accordance with this Act.
11    "Automated valuation model" means an automated system that
12is used to derive a property value through the use of available
13property records and various analytic methodologies such as
14comparable sales prices, home characteristics, and price
15changes.
16    "Board" means the Real Estate Appraisal Administration and
17Disciplinary Board.
18    "Broker price opinion" means an estimate or analysis of
19the probable selling price of a particular interest in real
20estate, which may provide a varying level of detail about the
21property's condition, market, and neighborhood and information
22on comparable sales. The activities of a real estate broker or
23managing broker engaging in the ordinary course of business as
24a broker, as defined in this Section, shall not be considered a
25broker price opinion if no compensation is paid to the broker
26or managing broker, other than compensation based upon the

 

 

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1sale or rental of real estate.
2    "Classroom hour" means 50 minutes of instruction out of
3each 60 minute segment of coursework.
4    "Client" means the party or parties who engage an
5appraiser by employment or contract in a specific appraisal
6assignment.
7    "Comparative market analysis" is an analysis or opinion
8regarding pricing, marketing, or financial aspects relating to
9a specified interest or interests in real estate that may be
10based upon an analysis of comparative market data, the
11expertise of the real estate broker or managing broker, and
12such other factors as the broker or managing broker may deem
13appropriate in developing or preparing such analysis or
14opinion. The activities of a real estate broker or managing
15broker engaging in the ordinary course of business as a
16broker, as defined in this Section, shall not be considered a
17comparative market analysis if no compensation is paid to the
18broker or managing broker, other than compensation based upon
19the sale or rental of real estate.
20    "Coordinator" means the Coordinator of Real Estate
21Appraisal Coordinator created in Section 25-15 of the Division
22of Professional Regulation of the Department of Financial and
23Professional Regulation.
24    "Department" means the Department of Financial and
25Professional Regulation.
26    "Email address of record" means the designated email

 

 

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1address recorded by the Department in the applicant's
2application file or the licensee's license file maintained by
3the Department.
4    "Evaluation" means a valuation permitted by the appraisal
5regulations of the Federal Financial Institutions Examination
6Council and its federal agencies for transactions that qualify
7for the appraisal threshold exemption, business loan
8exemption, or subsequent transaction exemption.
9    "Federal financial institutions regulatory agencies" means
10the Board of Governors of the Federal Reserve System, the
11Federal Deposit Insurance Corporation, the Office of the
12Comptroller of the Currency, the Consumer Financial Protection
13Bureau, and the National Credit Union Administration.
14    "Federally related transaction" means any real
15estate-related financial transaction in which a federal
16financial institutions regulatory agency engages in, contracts
17for, or regulates and requires the services of an appraiser.
18    "Financial institution" means any bank, savings bank,
19savings and loan association, credit union, mortgage broker,
20mortgage banker, licensee under the Consumer Installment Loan
21Act or the Sales Finance Agency Act, or a corporate fiduciary,
22subsidiary, affiliate, parent company, or holding company of
23any such licensee, or any institution involved in real estate
24financing that is regulated by state or federal law.
25    "Hybrid entity" means an appraisal management company that
26hires an appraiser as an employee to perform an appraisal and

 

 

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1engages an independent contractor to perform an appraisal.
2    "License" means the privilege conferred by the Department
3to a person that has fulfilled all requirements prerequisite
4to any type of licensure under this Act.
5    "Licensee" means any person, as defined in this Section,
6who holds a valid unexpired license.
7    "Multi-state licensing system" means a web-based platform
8that allows an applicant to submit the his or her application
9or license renewal application to the Department online.
10    "Person" means an individual, entity, sole proprietorship,
11corporation, limited liability company, partnership, and joint
12venture, foreign or domestic, except that when the context
13otherwise requires, the term may refer to more than one
14individual or other described entity.
15    "Real estate" means an identified parcel or tract of land,
16including any improvements.
17    "Real estate related financial transaction" means any
18transaction involving:
19        (1) the sale, lease, purchase, investment in, or
20    exchange of real property, including interests in property
21    or the financing thereof;
22        (2) the refinancing of real property or interests in
23    real property; and
24        (3) the use of real property or interest in property
25    as security for a loan or investment, including mortgage
26    backed securities.

 

 

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1    "Real property" means the interests, benefits, and rights
2inherent in the ownership of real estate.
3    "Secretary" means the Secretary of Financial and
4Professional Regulation or the Secretary's designee.
5    "State certified general real estate appraiser" means an
6appraiser who holds a license of this classification under
7this Act and such classification applies to the appraisal of
8all types of real property without restrictions as to the
9scope of practice.
10    "State certified residential real estate appraiser" means
11an appraiser who holds a license of this classification under
12this Act and such classification applies to the appraisal of
13one to 4 units of residential real property without regard to
14transaction value or complexity, but with restrictions as to
15the scope of practice in a federally related transaction in
16accordance with Title XI, the provisions of USPAP, criteria
17established by the AQB, and further defined by rule.
18    "Supervising appraiser" means either (i) an appraiser who
19holds a valid license under this Act as either a State
20certified general real estate appraiser or a State certified
21residential real estate appraiser, who co-signs an appraisal
22report for an associate real estate trainee appraiser or (ii)
23a State certified general real estate appraiser who holds a
24valid license under this Act who co-signs an appraisal report
25for a State certified residential real estate appraiser on
26properties other than one to 4 units of residential real

 

 

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1property without regard to transaction value or complexity.
2    "Title XI" means Title XI of the federal Financial
3Institutions Reform, Recovery and Enforcement Act of 1989.
4    "USPAP" means the Uniform Standards of Professional
5Appraisal Practice as promulgated by the Appraisal Standards
6Board pursuant to Title XI and by rule.
7    "Valuation services" means services pertaining to aspects
8of property value.
9(Source: P.A. 100-604, eff. 7-13-18.)
 
10    (225 ILCS 458/1-12 new)
11    Sec. 1-12. Address of record; email address of record. All
12applicants and licensees shall:
13        (1) provide a valid address and email address to the
14    Department, which shall serve as the address of record and
15    email address of record, respectively, at the time of
16    application for licensure or renewal of a license; and
17        (2) inform the Department of any change of address of
18    record or email address of record within 14 days after
19    such change through the Department's website.
 
20    (225 ILCS 458/5-5)
21    (Section scheduled to be repealed on January 1, 2022)
22    Sec. 5-5. Necessity of license; use of title; exemptions.
23    (a) It is unlawful for a person to (i) act, offer services,
24or advertise services as a State certified general real estate

 

 

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1appraiser, State certified residential real estate appraiser,
2or associate real estate trainee appraiser, (ii) develop a
3real estate appraisal, (iii) practice as a real estate
4appraiser, or (iv) advertise as or hold himself or herself out
5to be a real estate appraiser without a license issued under
6this Act. A person who violates this subsection is guilty of a
7Class A misdemeanor for a first offense and a Class 4 felony
8for any subsequent offense.
9    (a-5) It is unlawful for a person, unless registered as an
10appraisal management company, to solicit clients or enter into
11an appraisal engagement with clients without either a
12certified residential real estate appraiser license or a
13certified general real estate appraiser license issued under
14this Act. A person who violates this subsection is guilty of a
15Class A misdemeanor for a first offense and a Class 4 felony
16for any subsequent offense.
17    (b) It is unlawful for a person, other than a person who
18holds a valid license issued pursuant to this Act as a State
19certified general real estate appraiser, a State certified
20residential real estate appraiser, or an associate real estate
21trainee appraiser to use these titles or any other title,
22designation, or abbreviation likely to create the impression
23that the person is licensed as a real estate appraiser
24pursuant to this Act. A person who violates this subsection is
25guilty of a Class A misdemeanor for a first offense and a Class
264 felony for any subsequent offense.

 

 

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1    (c) This Act does not apply to a person who holds a valid
2license as a real estate broker or managing broker pursuant to
3the Real Estate License Act of 2000 who prepares or provides a
4broker price opinion or comparative market analysis in
5compliance with Section 10-45 of the Real Estate License Act
6of 2000.
7    (d) Nothing in this Act shall preclude a State certified
8general real estate appraiser, a State certified residential
9real estate appraiser, or an associate real estate trainee
10appraiser from rendering appraisals for or on behalf of a
11partnership, association, corporation, firm, or group.
12However, no State appraisal license or certification shall be
13issued under this Act to a partnership, association,
14corporation, firm, or group.
15    (e) This Act does not apply to a county assessor, township
16assessor, multi-township assessor, county supervisor of
17assessments, or any deputy or employee of any county assessor,
18township assessor, multi-township assessor, or county
19supervisor of assessments in performance of who is performing
20his or her respective duties in accordance with the provisions
21of the Property Tax Code.
22    (e-5) For the purposes of this Act, valuation waivers may
23be prepared by a licensed appraiser notwithstanding any other
24provision of this Act, and the following types of valuations
25are not appraisals and may not be represented to be
26appraisals, and a license is not required under this Act to

 

 

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1perform such valuations if the valuations are performed by (1)
2an employee of the Illinois Department of Transportation who
3has completed a minimum of 45 hours of course work in real
4estate appraisal, including the principles principals of real
5estate appraisals, appraisal of partial acquisitions, easement
6valuation, reviewing appraisals in eminent domain, appraisal
7for federal aid highway programs, and appraisal review for
8federal aid highway programs and has at least 2 years'
9experience in a field closely related to real estate; (2) a
10county engineer who is a registered professional engineer
11under the Professional Engineering Practice Act of 1989; (3)
12an employee of a municipality who has (i) completed a minimum
13of 45 hours of coursework in real estate appraisal, including
14the principles principals of real estate appraisals, appraisal
15of partial acquisitions, easement valuation, reviewing
16appraisals in eminent domain, appraisal for federal aid
17highway programs, and appraisal review for federal aid highway
18programs and (ii) has either 2 years' experience in a field
19clearly related to real estate or has completed 20 hours of
20additional coursework that is sufficient for a person to
21complete waiver valuations as approved by the Federal Highway
22Administration; or (4) a municipal engineer who has completed
23coursework that is sufficient for his or her waiver valuations
24to be approved by the Federal Highway Administration and who
25is a registered professional engineer under the Professional
26Engineering Act of 1989, under the following circumstances:

 

 

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1        (A) a valuation waiver in an amount not to exceed
2    $20,000 $10,000 prepared pursuant to the federal Uniform
3    Relocation Assistance and Real Property Acquisition
4    Policies Act of 1970, or prepared pursuant to the federal
5    Uniform Relocation Assistance and Real Property
6    Acquisition for Federal and Federally-Assisted Programs
7    regulations and which is performed by (1) an employee of
8    the Illinois Department of Transportation and co-signed,
9    with a license number affixed, by another employee of the
10    Illinois Department of Transportation who is a registered
11    professional engineer under the Professional Engineering
12    Practice Act of 1989 or (2) an employee of a municipality
13    and co-signed with a license number affixed by a county or
14    municipal engineer who is a registered professional
15    engineer under the Professional Engineering Practice Act
16    of 1989; and
17        (B) a valuation waiver in an amount not to exceed
18    $20,000 $10,000 prepared pursuant to the federal Uniform
19    Relocation Assistance and Real Property Acquisition
20    Policies Act of 1970, or prepared pursuant to the federal
21    Uniform Relocation Assistance and Real Property
22    Acquisition for Federal and Federally-Assisted Programs
23    regulations and which is performed by a county or
24    municipal engineer who is employed by a county or
25    municipality and is a registered professional engineer
26    under the Professional Engineering Practice Act of 1989.

 

 

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1    The valuation shall include In addition to his or her
2    signature, the county or municipal engineer's signature
3    and engineer shall affix his or her license number to the
4    valuation.
5    Nothing in this subsection (e-5) shall be construed to
6allow the State of Illinois, a political subdivision thereof,
7or any public body to acquire real estate by eminent domain in
8any manner other than provided for in the Eminent Domain Act.
9    (f) A State real estate appraisal certification or license
10is not required under this Act for any of the following: (1) A
11person, partnership, association, or corporation that performs
12appraisals of property owned by that person, partnership,
13association, or corporation for the sole use of that person,
14partnership, association, or corporation.
15        (2) A court-appointed commissioner who conducts an
16    appraisal pursuant to a judicially ordered evaluation of
17    property.
18    Any However, any person who is certified or licensed under
19this Act and who performs any of the activities set forth in
20this subsection (f) must comply with the provisions of this
21Act. A person who violates this subsection (f) is guilty of a
22Class A misdemeanor for a first offense and a Class 4 felony
23for any subsequent offense.
24    (g) This Act does not apply to an employee, officer,
25director, or member of a credit or loan committee of a
26financial institution or any other person engaged by a

 

 

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1financial institution when performing an evaluation of real
2property for the sole use of the financial institution in a
3transaction for which the financial institution would not be
4required to use the services of a State licensed or State
5certified appraiser pursuant to federal regulations adopted
6under Title XI of the federal Financial Institutions Reform,
7Recovery, and Enforcement Act of 1989, nor does this Act apply
8to the procurement of an automated valuation model.
9    (h) This Act does not apply to the procurement of an
10automated valuation model.
11    "Automated valuation model" means an automated system that
12is used to derive a property value through the use of publicly
13available property records and various analytic methodologies
14such as comparable sales prices, home characteristics, and
15historical home price appreciations.
16(Source: P.A. 98-444, eff. 8-16-13; 98-933, eff. 1-1-15;
1798-1109, eff. 1-1-15; 99-78, eff. 7-20-15.)
 
18    (225 ILCS 458/5-10)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 5-10. Application for State certified general real
21estate appraiser.
22    (a) Every person who desires to obtain a State certified
23general real estate appraiser license shall:
24        (1) apply to the Department on forms provided by the
25    Department, or through a multi-state licensing system as

 

 

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1    designated by the Secretary, accompanied by the required
2    fee;
3        (2) be at least 18 years of age;
4        (3) (blank);
5        (4) personally take and pass an examination authorized
6    by the Department and endorsed by the AQB;
7        (5) prior to taking the examination, provide evidence
8    to the Department, or through a multi-state licensing
9    system as designated by the Secretary, of successful
10    completion of in Modular Course format, with each module
11    conforming to the Required Core Curriculum established and
12    adopted by the AQB, that he or she has successfully
13    completed the prerequisite classroom hours of instruction
14    in appraising as established by the AQB and by rule;
15    evidence shall be in a Modular Course format with each
16    module conforming to the Required Core Curriculum
17    established and adopted by the AQB; and
18        (6) prior to taking the examination, provide evidence
19    to the Department, or through a multi-state licensing
20    system as designated by the Secretary, of successful
21    completion of that he or she has successfully completed
22    the prerequisite experience and educational requirements
23    in appraising as established by AQB and by rule.
24    (b) Applicants must provide evidence to the Department, or
25through a multi-state licensing system as designated by the
26Secretary, of holding a Bachelor's degree or higher from an

 

 

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1accredited college or university.
2(Source: P.A. 100-604, eff. 7-13-18.)
 
3    (225 ILCS 458/5-15)
4    (Section scheduled to be repealed on January 1, 2022)
5    Sec. 5-15. Application for State certified residential
6real estate appraiser. Every person who desires to obtain a
7State certified residential real estate appraiser license
8shall:
9        (1) apply to the Department on forms provided by the
10    Department, or through a multi-state licensing system as
11    designated by the Secretary, accompanied by the required
12    fee;
13        (2) be at least 18 years of age;
14        (3) (blank);
15        (4) personally take and pass an examination authorized
16    by the Department and endorsed by the AQB;
17        (5) prior to taking the examination, provide evidence
18    to the Department, or through a multi-state licensing
19    system as designated by the Secretary, of successful
20    completion of in Modular Course format, with each module
21    conforming to the Required Core Curriculum established and
22    adopted by the AQB, that he or she has successfully
23    completed the prerequisite classroom hours of instruction
24    in appraising as established by the AQB and by rule;
25    evidence shall be in a Modular Course format with each

 

 

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1    module conforming to the Required Core Curriculum
2    established and adopted by the AQB; and
3        (6) prior to taking the examination, provide evidence
4    to the Department, or through a multi-state licensing
5    system as designated by the Secretary, of successful
6    completion of that he or she has successfully completed
7    the prerequisite experience and educational requirements
8    as established by AQB and by rule.
9(Source: P.A. 100-201, eff. 8-18-17; 100-604, eff. 7-13-18.)
 
10    (225 ILCS 458/5-20)
11    (Section scheduled to be repealed on January 1, 2022)
12    Sec. 5-20. Application for associate real estate trainee
13appraiser. Every person who desires to obtain an associate
14real estate trainee appraiser license shall:
15        (1) apply to the Department on forms provided by the
16    Department, or through a multi-state licensing system as
17    designated by the Secretary, accompanied by the required
18    fee;
19        (2) be at least 18 years of age;
20        (3) provide evidence of having attained a high school
21    diploma or completed an equivalent course of study as
22    determined by an examination conducted or accepted by the
23    Illinois State Board of Education;
24        (4) (blank); and
25        (5) provide evidence to the Department, or through a

 

 

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1    multi-state licensing system as designated by the
2    Secretary, of successful completion of that he or she has
3    successfully completed the prerequisite qualifying and any
4    conditional education requirements as established by rule.
5(Source: P.A. 100-604, eff. 7-13-18; 100-832, eff. 1-1-19;
6101-81, eff. 7-12-19.)
 
7    (225 ILCS 458/5-20.5)
8    (Section scheduled to be repealed on January 1, 2022)
9    Sec. 5-20.5. Duration of application. Applicants have 3
10years from the date of application to complete the application
11process. If the process has not been completed within 3 years,
12the application shall expire be denied, the fee shall be
13forfeited, and the applicant must reapply and meet the
14requirements in effect at the time of reapplication.
15(Source: P.A. 96-844, eff. 12-23-09.)
 
16    (225 ILCS 458/5-22)
17    (Section scheduled to be repealed on January 1, 2022)
18    Sec. 5-22. Criminal history records check.
19    (a) An application Each applicant for licensure by
20examination or restoration shall include the applicant's have
21his or her fingerprints submitted to the Department of State
22Police in an electronic format that complies with the form and
23manner for requesting and furnishing criminal history record
24information as prescribed by the Department of State Police.

 

 

10200HB3714ham002- 22 -LRB102 03960 SPS 24465 a

1These fingerprints shall be checked against the Department of
2State Police and Federal Bureau of Investigation criminal
3history record databases now and hereafter filed. The
4Department of State Police shall charge applicants a fee for
5conducting the criminal history records check, which shall be
6deposited into the State Police Services Fund and shall not
7exceed the actual cost of the records check. The Department of
8State Police shall furnish, pursuant to positive
9identification, records of Illinois convictions to the
10Department. The Department may require applicants to pay a
11separate fingerprinting fee, either to the Department or to a
12vendor. The Department may adopt any rules necessary to
13implement this Section.
14    (b) The Secretary may designate a multi-state licensing
15system to perform the functions described in subsection (a).
16The Department may require applicants to pay a separate
17fingerprinting fee, either to the Department or to the
18multi-state licensing system. The Department may adopt any
19rules necessary to implement this subsection.
20    (c) The Department shall not consider the following
21criminal history records in connection with an application for
22licensure:
23        (1) juvenile adjudications of delinquent minors as
24    defined in Section 5-105 of the Juvenile Court Act of 1987
25    subject to the restrictions set forth in Section 5-130 of
26    that Act;

 

 

10200HB3714ham002- 23 -LRB102 03960 SPS 24465 a

1        (2) law enforcement records, court records, and
2    conviction records of an individual who was 17 years old
3    at the time of the offense and before January 1, 2014,
4    unless the nature of the offense required the individual
5    to be tried as an adult;
6        (3) records of arrest not followed by a charge or
7    conviction;
8        (4) records of arrest in which the charges were
9    dismissed unless related to the practice of the
10    profession; however, applicants shall not be asked to
11    report any arrests, and an arrest not followed by a
12    conviction shall not be the basis of a denial and may be
13    used only to assess an applicant's rehabilitation;
14        (5) convictions overturned by a higher court; or
15        (6) convictions or arrests that have been sealed or
16    expunged.
17    (d) If an applicant makes a false statement of material
18fact on the application, the false statement may in itself be
19sufficient grounds to revoke or refuse to issue a license.
20    (e) An applicant or licensee shall report to the
21Department, in a manner prescribed by the Department, upon
22application and within 30 days after the occurrence, if during
23the term of licensure, (i) any conviction of or plea of guilty
24or nolo contendere to forgery, embezzlement, obtaining money
25under false pretenses, larceny, extortion, conspiracy to
26defraud, or any similar offense or offenses or any conviction

 

 

10200HB3714ham002- 24 -LRB102 03960 SPS 24465 a

1of a felony involving moral turpitude, (ii) the entry of an
2administrative sanction by a government agency in this State
3or any other jurisdiction that has as an essential element
4dishonesty or fraud or involves larceny, embezzlement, or
5obtaining money, property, or credit by false pretenses, or
6(iii) a crime that subjects the licensee to compliance with
7the requirements of the Sex Offender Registration Act.
8(Source: P.A. 100-604, eff. 7-13-18.)
 
9    (225 ILCS 458/5-25)
10    (Section scheduled to be repealed on January 1, 2022)
11    Sec. 5-25. Renewal of license.
12    (a) The expiration date and renewal period for a State
13certified general real estate appraiser license or a State
14certified residential real estate appraiser license issued
15under this Act shall be set by rule. Except as otherwise
16provided in subsections (b) and (f) of this Section, the
17holder of a license may renew the license within 90 days
18preceding the expiration date by:
19        (1) completing and submitting to the Department, or
20    through a multi-state licensing system as designated by
21    the Secretary, a renewal application form as provided by
22    the Department;
23        (2) paying the required fees; and
24        (3) providing evidence to the Department, or through a
25    multi-state licensing system as designated by the

 

 

10200HB3714ham002- 25 -LRB102 03960 SPS 24465 a

1    Secretary, of successful completion of the continuing
2    education requirements through courses approved by the
3    Department from education providers licensed by the
4    Department, as established by the AQB and by rule.
5    (b) A State certified general real estate appraiser or
6State certified residential real estate appraiser whose
7license under this Act has expired may renew the license for a
8period of 2 years following the expiration date by complying
9with the requirements of paragraphs (1), (2), and (3) of
10subsection (a) of this Section and paying any late penalties
11established by rule.
12    (c) (Blank).
13    (d) The expiration date and renewal period for an
14associate real estate trainee appraiser license issued under
15this Act shall be set by rule. Except as otherwise provided in
16subsections (e) and (f) of this Section, the holder of an
17associate real estate trainee appraiser license may renew the
18license within 90 days preceding the expiration date by:
19        (1) completing and submitting to the Department, or
20    through a multi-state licensing system as designated by
21    the Secretary, a renewal application form as provided by
22    the Department;
23        (2) paying the required fees; and
24        (3) providing evidence to the Department, or through a
25    multi-state licensing system as designated by the
26    Secretary, of successful completion of the continuing

 

 

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1    education requirements through courses approved by the
2    Department from education providers approved by the
3    Department, as established by rule.
4    (e) Any associate real estate trainee appraiser trainee
5whose license under this Act has expired may renew the license
6for a period of 2 years following the expiration date by
7complying with the requirements of paragraphs (1), (2), and
8(3) of subsection (d) of this Section and paying any late
9penalties as established by rule.
10    (f) Notwithstanding subsections (c) and (e), an appraiser
11whose license under this Act has expired may renew or convert
12the license without paying any lapsed renewal fees or late
13penalties if the license expired while the appraiser was:
14        (1) on active duty with the United States Armed
15    Services;
16        (2) serving as the Coordinator of Real Estate
17    Appraisal or an employee of the Department who was
18    required to surrender the his or her license during the
19    term of employment.
20    Application for renewal must be made within 2 years
21following the termination of the military service or related
22education, training, or employment and shall include an
23affidavit from the licensee of engagement. The licensee shall
24furnish the Department with an affidavit that he or she was so
25engaged.
26    (g) The Department shall provide reasonable care and due

 

 

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1diligence to ensure that each licensee under this Act is
2provided with a renewal application at least 90 days prior to
3the expiration date, but each licensee is responsible to
4timely renewal or conversion of the renew or convert his or her
5license prior to its expiration date is the responsibility of
6the licensee.
7    (h) The Department shall not renew a license if the
8licensee has an unpaid fine from a disciplinary matter or an
9unpaid fee from a non-disciplinary action imposed by the
10Department until the fine or fee is paid to the Department or
11the licensee has entered into a payment plan and is current on
12the required payments.
13    (i) The Department shall not issue a license if the
14applicant has an unpaid fine imposed by the Department for
15unlicensed practice until the fine is paid to the Department
16or the applicant has entered into a payment plan and is current
17on the required payments.
18(Source: P.A. 100-604, eff. 7-13-18; 100-832, eff. 1-1-19;
19101-81, eff. 7-12-19.)
 
20    (225 ILCS 458/5-26 new)
21    Sec. 5-26. Inactive licenses. Any licensee who notifies
22the Department, in writing on forms prescribed by the
23Department, may elect to place the license on an inactive
24status and shall, subject to the rules of the Department, be
25excused from payment of renewal fees until notification in

 

 

10200HB3714ham002- 28 -LRB102 03960 SPS 24465 a

1writing to the Department of the desire to resume active
2status. Any licensee requesting reinstatement from inactive
3status shall pay the current renewal fee, provide proof of
4meeting the continuing education requirements for the period
5of time the license is inactive (not to exceed 2 renewal
6periods), and follow the requirements for reinstatement as
7provided by rule. Any licensee whose license is in an inactive
8status shall not practice in the State of Illinois. The
9Department will update the licensee's record in the National
10Registry to show that the license is inactive.
 
11    (225 ILCS 458/5-30)
12    (Section scheduled to be repealed on January 1, 2022)
13    Sec. 5-30. Endorsement. The Department may issue an
14appraiser license, without the required examination, to an
15applicant licensed by another state, territory, possession of
16the United States, or the District of Columbia, if (i) the
17licensing requirements of that licensing authority are, on the
18date of licensure, substantially equal to the requirements set
19forth under this Act or to a person who, at the time of the his
20or her application, possessed individual qualifications that
21were substantially equivalent to the requirements of this Act
22or (ii) the applicant provides the Department with evidence of
23good standing from the Appraisal Subcommittee National
24Registry report and a criminal history records check in
25accordance with Section 5-22. An applicant under this Section

 

 

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1shall pay all of the required fees.
2(Source: P.A. 98-1109, eff. 1-1-15.)
 
3    (225 ILCS 458/5-35)
4    (Section scheduled to be repealed on January 1, 2022)
5    Sec. 5-35. Qualifying education requirements. (a) The
6prerequisite classroom hours necessary for a person to be
7approved to sit for the examination for licensure as a State
8certified general real estate appraiser or a State certified
9residential real estate appraiser shall be in accordance with
10AQB criteria and established by rule.
11    (b) The prerequisite classroom hours necessary for a
12person to sit for the examination for licensure as an
13associate real estate trainee appraiser shall be established
14by rule.
15(Source: P.A. 98-1109, eff. 1-1-15.)
 
16    (225 ILCS 458/10-5)
17    (Section scheduled to be repealed on January 1, 2022)
18    Sec. 10-5. Scope of practice.
19    (a) This Act does not limit a State certified general real
20estate appraiser's appraiser in his or her scope of practice
21in a federally related transaction. A State certified general
22real estate appraiser may independently provide appraisal
23services, review, or consult related consulting relating to
24any type of property for which there is related he or she has

 

 

10200HB3714ham002- 30 -LRB102 03960 SPS 24465 a

1experience or competency by the appraiser is competent. All
2such appraisal practice must be made in accordance with the
3provisions of USPAP, criteria established by the AQB, and
4rules adopted pursuant to this Act.
5    (b) A State certified residential real estate appraiser is
6limited in his or her scope of practice to the provisions of
7USPAP, criteria established by the AQB, and the rules adopted
8pursuant to this Act.
9    (c) A State certified residential real estate appraiser
10must have a State certified general real estate appraiser who
11holds a valid license under this Act co-sign all appraisal
12reports on properties other than one to 4 units of residential
13real property without regard to transaction value or
14complexity.
15    (d) An associate real estate trainee appraiser is limited
16in his or her scope of practice in all transactions in
17accordance with the provisions of USPAP, this Act, and the
18rules adopted pursuant to this Act. In addition, an associate
19real estate trainee appraiser shall be required to have a
20State certified general real estate appraiser or State
21certified residential real estate appraiser who holds a valid
22license under this Act to co-sign all appraisal reports. A
23supervising appraiser may not supervise more than 3 associate
24real estate trainee appraisers at one time. Associate real
25estate trainee appraisers shall not be limited in the number
26of concurrent supervising appraisers. A chronological

 

 

10200HB3714ham002- 31 -LRB102 03960 SPS 24465 a

1appraisal log on an approved log form shall be maintained by
2the associate real estate trainee appraiser and shall be made
3available to the Department upon request.
4(Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15.)
 
5    (225 ILCS 458/10-10)
6    (Section scheduled to be repealed on January 1, 2022)
7    Sec. 10-10. Standards of practice. All persons licensed
8under this Act must comply with standards of professional
9appraisal practice adopted by the Department. The Department
10must adopt, as part of its rules, the Uniform Standards of
11Professional Appraisal Practice (USPAP) as published from time
12to time by the Appraisal Standards Board of the Appraisal
13Foundation. The Department shall consider federal laws and
14regulations regarding the licensure of real estate appraisers
15prior to adopting its rules for the administration of this
16Act. When an appraisal obtained through an appraisal
17management company is used for loan purposes, the borrower or
18loan applicant shall be provided with a written disclosure of
19the total compensation to the appraiser or appraisal firm
20within the body certification of the appraisal report and it
21shall not be redacted or otherwise obscured.
22(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
23    (225 ILCS 458/15-5)
24    (Section scheduled to be repealed on January 1, 2022)

 

 

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1    Sec. 15-5. Unlicensed practice; civil penalty; injunctive
2relief; unlawful influence.
3    (a) A person who violates Section 5-5 of this Act shall, in
4addition to any other penalty provided by law, pay a civil
5penalty to the Department in an amount not to exceed $25,000
6for each violation as determined by the Secretary. The civil
7penalty shall be assessed by the Secretary after a hearing in
8accordance with the provisions of this Act regarding the
9provision of a hearing for the discipline of a license.
10    (b) The Department has the authority to investigate any
11activity that may violate this Act.
12    (c) A civil penalty imposed pursuant to subsection (a)
13shall be paid within 60 days after the effective date of the
14order imposing the civil penalty. The order shall constitute a
15judgment and may be filed and executed in the same manner as
16any judgment from any court of record. Any civil penalty
17collected under this Act shall be made payable to the
18Department of Financial and Professional Regulation and
19deposited into the Appraisal Administration Fund. In addition
20to or in lieu of the imposition of a civil penalty, the
21Department may report a violation of this Act or the failure or
22refusal to comply with an order of the Department to the
23Attorney General or to the appropriate State's Attorney.
24    (d) Practicing as an appraiser without holding an active a
25valid license as required under this Act is declared to be
26adverse to the public welfare, to constitute a public

 

 

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1nuisance, and to cause irreparable harm to the public welfare.
2The Secretary, the Attorney General, or the State's Attorney
3of any county in the State may maintain an action for
4injunctive relief in any circuit court to enjoin any person
5from engaging in such practice.
6    Upon the filing of a verified petition in a circuit court,
7the court, if satisfied by affidavit or otherwise that a
8person has been engaged in the practice of real estate
9appraisal without an active a valid license, may enter a
10temporary restraining order without notice or bond enjoining
11the defendant from further practice. The showing of
12non-licensure, by affidavit or otherwise, is sufficient for
13the issuance of a temporary injunction. If it is established
14that the defendant has been or is engaged in unlawful
15practice, the court may enter an order or judgment perpetually
16enjoining the defendant from further unlawful practice. In all
17proceedings under this Section, the court, in its discretion,
18may apportion the costs among the parties interested in the
19action, including the cost of filing the complaint, service of
20process, witness fees and expenses, court reporter charges,
21and reasonable attorneys' fees. These injunction proceedings
22shall be in addition to, and not in lieu of, all penalties and
23other remedies provided in this Act.
24    (e) No person shall influence or attempt to influence
25through coercion, extortion, or bribery the independent
26judgment of an appraiser licensed or certified under this Act

 

 

10200HB3714ham002- 34 -LRB102 03960 SPS 24465 a

1in the development, reporting, result, or review of a real
2estate appraisal. A person who violates this subsection (e) is
3guilty of a Class A misdemeanor for the first offense and a
4Class 4 felony for any subsequent offense.
5(Source: P.A. 96-844, eff. 12-23-09.)
 
6    (225 ILCS 458/15-10)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 15-10. Grounds for disciplinary action.
9    (a) The Department may suspend, revoke, refuse to issue,
10renew, or restore a license and may reprimand place on
11probation or administrative supervision, or take any
12disciplinary or non-disciplinary action, including imposing
13conditions limiting the scope, nature, or extent of the real
14estate appraisal practice of a licensee or reducing the
15appraisal rank of a licensee, and may impose an administrative
16fine not to exceed $25,000 for each violation upon a licensee
17for any one or combination of the following:
18        (1) Procuring or attempting to procure a license by
19    knowingly making a false statement, submitting false
20    information, engaging in any form of fraud or
21    misrepresentation, or refusing to provide complete
22    information in response to a question in an application
23    for licensure.
24        (2) Failing to meet the minimum qualifications for
25    licensure as an appraiser established by this Act.

 

 

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1        (3) Paying money, other than for the fees provided for
2    by this Act, or anything of value to a member or employee
3    of the Board or the Department to procure licensure under
4    this Act.
5        (4) Conviction of, or by plea of guilty or nolo
6    contendere, as enumerated in subsection (e) of Section
7    5-22 finding of guilt, jury verdict, or entry of judgment
8    or by sentencing of any crime, including, but not limited
9    to, convictions, preceding sentences of supervision,
10    conditional discharge, or first offender probation, under
11    the laws of any jurisdiction of the United States: (i)
12    that is a felony, ; or (ii) that is a misdemeanor, or
13    administrative sanction or (ii) that is a crime that
14    subjects the licensee to compliance with the requirements
15    of the Sex Offender Registration Act an essential element
16    of which is dishonesty, or that is directly related to the
17    practice of the profession.
18        (5) Committing an act or omission involving
19    dishonesty, fraud, or misrepresentation with the intent to
20    substantially benefit the licensee or another person or
21    with intent to substantially injure another person as
22    defined by rule.
23        (6) Violating a provision or standard for the
24    development or communication of real estate appraisals as
25    provided in Section 10-10 of this Act or as defined by
26    rule.

 

 

10200HB3714ham002- 36 -LRB102 03960 SPS 24465 a

1        (7) Failing or refusing without good cause to exercise
2    reasonable diligence in developing, reporting, or
3    communicating an appraisal, as defined by this Act or by
4    rule.
5        (8) Violating a provision of this Act or the rules
6    adopted pursuant to this Act.
7        (9) Having been disciplined by another state, the
8    District of Columbia, a territory, a foreign nation, a
9    governmental agency, or any other entity authorized to
10    impose discipline if at least one of the grounds for that
11    discipline is the same as or the equivalent of one of the
12    grounds for which a licensee may be disciplined under this
13    Act.
14        (10) Engaging in dishonorable, unethical, or
15    unprofessional conduct of a character likely to deceive,
16    defraud, or harm the public.
17        (11) Accepting an appraisal assignment when the
18    employment itself is contingent upon the appraiser
19    reporting a predetermined estimate, analysis, or opinion
20    or when the fee to be paid is contingent upon the opinion,
21    conclusion, or valuation reached or upon the consequences
22    resulting from the appraisal assignment.
23        (12) Developing valuation conclusions based on the
24    race, color, religion, sex, national origin, ancestry,
25    age, marital status, family status, physical or mental
26    disability, sexual orientation, pregnancy, order of

 

 

10200HB3714ham002- 37 -LRB102 03960 SPS 24465 a

1    protection status, military status, or unfavorable
2    military discharge, as defined under the Illinois Human
3    Rights Act, of the prospective or present owners or
4    occupants of the area or property under appraisal.
5        (13) Violating the confidential nature of government
6    records to which the licensee gained access through
7    employment or engagement as an appraiser by a government
8    agency.
9        (14) Being adjudicated liable in a civil proceeding on
10    grounds of fraud, misrepresentation, or deceit. In a
11    disciplinary proceeding based upon a finding of civil
12    liability, the appraiser shall be afforded an opportunity
13    to present mitigating and extenuating circumstances, but
14    may not collaterally attack the civil adjudication.
15        (15) Being adjudicated liable in a civil proceeding
16    for violation of a state or federal fair housing law.
17        (16) Engaging in misleading or untruthful advertising
18    or using a trade name or insignia of membership in a real
19    estate appraisal or real estate organization of which the
20    licensee is not a member.
21        (17) Failing to fully cooperate with a Department
22    investigation by knowingly making a false statement,
23    submitting false or misleading information, or refusing to
24    provide complete information in response to written
25    interrogatories or a written request for documentation
26    within 30 days of the request.

 

 

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1        (18) Failing to include within the certificate of
2    appraisal for all written appraisal reports the
3    appraiser's license number and licensure title. All
4    appraisers providing significant contribution to the
5    development and reporting of an appraisal must be
6    disclosed in the appraisal report. It is a violation of
7    this Act for an appraiser to sign a report, transmittal
8    letter, or appraisal certification knowing that a person
9    providing a significant contribution to the report has not
10    been disclosed in the appraisal report.
11        (19) Violating the terms of a disciplinary order or
12    consent to administrative supervision order.
13        (20) Habitual or excessive use or addiction to
14    alcohol, narcotics, stimulants, or any other chemical
15    agent or drug that results in a licensee's inability to
16    practice with reasonable judgment, skill, or safety.
17        (21) A physical or mental illness or disability which
18    results in the inability to practice under this Act with
19    reasonable judgment, skill, or safety.
20        (22) Gross negligence in developing an appraisal or in
21    communicating an appraisal or failing to observe one or
22    more of the Uniform Standards of Professional Appraisal
23    Practice.
24        (23) A pattern of practice or other behavior that
25    demonstrates incapacity or incompetence to practice under
26    this Act.

 

 

10200HB3714ham002- 39 -LRB102 03960 SPS 24465 a

1        (24) Using or attempting to use the seal, certificate,
2    or license of another as one's his or her own; falsely
3    impersonating any duly licensed appraiser; using or
4    attempting to use an inactive, expired, suspended, or
5    revoked license; or aiding or abetting any of the
6    foregoing.
7        (25) Solicitation of professional services by using
8    false, misleading, or deceptive advertising.
9        (26) Making a material misstatement in furnishing
10    information to the Department.
11        (27) Failure to furnish information to the Department
12    upon written request.
13    (b) The Department may reprimand suspend, revoke, or
14refuse to issue or renew an education provider's license, may
15reprimand, place on probation, or otherwise discipline an
16education provider and may suspend or revoke the course
17approval of any course offered by an education provider and
18may impose an administrative fine not to exceed $25,000 upon
19an education provider, for any of the following:
20        (1) Procuring or attempting to procure licensure by
21    knowingly making a false statement, submitting false
22    information, engaging in any form of fraud or
23    misrepresentation, or refusing to provide complete
24    information in response to a question in an application
25    for licensure.
26        (2) Failing to comply with the covenants certified to

 

 

10200HB3714ham002- 40 -LRB102 03960 SPS 24465 a

1    on the application for licensure as an education provider.
2        (3) Committing an act or omission involving
3    dishonesty, fraud, or misrepresentation or allowing any
4    such act or omission by any employee or contractor under
5    the control of the provider.
6        (4) Engaging in misleading or untruthful advertising.
7        (5) Failing to retain competent instructors in
8    accordance with rules adopted under this Act.
9        (6) Failing to meet the topic or time requirements for
10    course approval as the provider of a qualifying curriculum
11    course or a continuing education course.
12        (7) Failing to administer an approved course using the
13    course materials, syllabus, and examinations submitted as
14    the basis of the course approval.
15        (8) Failing to provide an appropriate classroom
16    environment for presentation of courses, with
17    consideration for student comfort, acoustics, lighting,
18    seating, workspace, and visual aid material.
19        (9) Failing to maintain student records in compliance
20    with the rules adopted under this Act.
21        (10) Failing to provide a certificate, transcript, or
22    other student record to the Department or to a student as
23    may be required by rule.
24        (11) Failing to fully cooperate with an investigation
25    by the Department by knowingly making a false statement,
26    submitting false or misleading information, or refusing to

 

 

10200HB3714ham002- 41 -LRB102 03960 SPS 24465 a

1    provide complete information in response to written
2    interrogatories or a written request for documentation
3    within 30 days of the request.
4    (c) In appropriate cases, the Department may resolve a
5complaint against a licensee through the issuance of a Consent
6to Administrative Supervision order. A licensee subject to a
7Consent to Administrative Supervision order shall be
8considered by the Department as an active licensee in good
9standing. This order shall not be reported or considered by
10the Department to be a discipline of the licensee. The records
11regarding an investigation and a Consent to Administrative
12Supervision order shall be considered confidential and shall
13not be released by the Department except as mandated by law. A
14complainant shall be notified if the his or her complaint has
15been resolved by a Consent to Administrative Supervision
16order.
17(Source: P.A. 97-602, eff. 8-26-11; 97-877, eff. 8-2-12;
1898-1109, eff. 1-1-15.)
 
19    (225 ILCS 458/15-10.1 new)
20    Sec. 15-10.1. Citations.
21    (a) The Department may adopt rules to permit the issuance
22of citations to any licensee for failure to comply with the
23continuing education requirements set forth in this Act or as
24established by rule. The citation shall be issued to the
25licensee. For associate real estate trainee appraisers, a copy

 

 

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1shall also be sent to the licensee's supervising appraiser of
2record. The citation shall contain the licensee's name, the
3licensee's address, the licensee's license number, the number
4of required hours of continuing education that have not been
5successfully completed by the licensee within the renewal
6period, and the penalty imposed, which shall not exceed
7$2,000. The issuance of a citation shall not excuse the
8licensee from completing all continuing education required for
9that renewal period.
10    (b) Service of a citation shall be made in person,
11electronically, or by mail to the licensee at the licensee's
12address of record or email address of record. Service of a
13citation must clearly state that if the cited licensee wishes
14to dispute the citation, the cited licensee may make a written
15request, within 30 days after the citation is served, for a
16hearing before the Department. If the cited licensee does not
17request a hearing within 30 days after the citation is served,
18then the citation shall become a final, non-disciplinary
19order, and any fine imposed is due and payable within 60 days
20after that final order. If the cited licensee requests a
21hearing within 30 days after the citation is served, the
22Department shall afford the cited licensee a hearing conducted
23in the same manner as a hearing provided for in this Act for
24any violation of this Act and shall determine whether the
25cited licensee committed the violation as charged and whether
26the fine as levied is warranted. If the violation is found, any

 

 

10200HB3714ham002- 43 -LRB102 03960 SPS 24465 a

1fine shall constitute non-public discipline and be due and
2payable within 30 days after the order of the Secretary, which
3shall constitute a final order of the Department. No change in
4license status may be made by the Department until a final
5order of the Department has been issued.
6    (c) Payment of a fine that has been assessed pursuant to
7this Section shall not constitute disciplinary action
8reportable on the Department's website or elsewhere unless a
9licensee has previously received 2 or more citations and been
10assessed 2 or more fines.
11    (d) Nothing in this Section shall prohibit or limit the
12Department from taking further action pursuant to this Act and
13rules for additional, repeated, or continuing violations.
 
14    (225 ILCS 458/15-11 new)
15    Sec. 15-11. Illegal discrimination. When there has been
16an adjudication in a civil or criminal proceeding that a
17licensee has illegally discriminated while engaged in any
18activity for which a license is required under this Act, the
19Department, upon the recommendation of the Board as to the
20extent of the suspension or revocation, shall suspend or
21revoke the license of that licensee in a timely manner, unless
22the adjudication is in the appeal process. When there has been
23an order in an administrative proceeding finding that a
24licensee has illegally discriminated while engaged in any
25activity for which a license is required under this Act, the

 

 

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1Department, upon recommendation of the Board as to the nature
2and extent of the discipline, shall take one or more of the
3disciplinary actions provided for in Section 15-10 in a timely
4manner, unless the administrative order is in the appeal
5process.
 
6    (225 ILCS 458/15-15)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 15-15. Investigation; notice; hearing.
9    (a) Upon the motion of the Department or the Board or upon
10a complaint in writing of a person setting forth facts that, if
11proven, would constitute grounds for suspension, revocation,
12or other disciplinary action against a licensee or applicant
13for licensure, the Department shall investigate the actions of
14the licensee or applicant. If, upon investigation, the
15Department believes that there may be cause for suspension,
16revocation, or other disciplinary action, the Department shall
17use the services of a State certified general real estate
18appraiser, a State certified residential real estate
19appraiser, or the Real Estate Coordinator to assist in
20determining whether grounds for disciplinary action exist
21prior to commencing formal disciplinary proceedings.
22    (b) Formal disciplinary proceedings shall commence upon
23the issuance of a written complaint describing the charges
24that are the basis of the disciplinary action and delivery of
25the detailed complaint to the address of record of the

 

 

10200HB3714ham002- 45 -LRB102 03960 SPS 24465 a

1licensee or applicant. For an associate real estate trainee
2appraiser, a copy shall also be sent to the licensee's
3supervising appraiser of record. The Department shall notify
4the licensee or applicant to file a verified written answer
5within 20 days after the service of the notice and complaint.
6The notification shall inform the licensee or applicant of the
7his or her right to be heard in person or by legal counsel;
8that the hearing will be afforded not sooner than 20 30 days
9after service of the complaint; that failure to file an answer
10will result in a default being entered against the licensee or
11applicant; that the license may be suspended, revoked, or
12placed on probationary status; and that other disciplinary
13action may be taken pursuant to this Act, including limiting
14the scope, nature, or extent of the licensee's practice. If
15the licensee or applicant fails to file an answer after
16service of notice, the respective his or her license may, at
17the discretion of the Department, be suspended, revoked, or
18placed on probationary status and the Department may take
19whatever disciplinary action it deems proper, including
20limiting the scope, nature, or extent of the person's
21practice, without a hearing.
22    (c) At the time and place fixed in the notice, the Board
23shall conduct hearing of the charges, providing both the
24accused person and the complainant ample opportunity to
25present in person or by counsel such statements, testimony,
26evidence, and argument as may be pertinent to the charges or to

 

 

10200HB3714ham002- 46 -LRB102 03960 SPS 24465 a

1a defense thereto.
2    (d) The Board shall present to the Secretary a written
3report of its findings of fact and recommendations. A copy of
4the report shall be served upon the licensee or applicant,
5either personally, or by certified mail, or, at the discretion
6of the Department, by electronic means. For associate real
7estate trainee appraisers, a copy shall also be sent to the
8licensee's supervising appraiser of record. Within 20 days
9after the service, the licensee or applicant may present the
10Secretary with a motion in writing for either a rehearing, a
11proposed finding of fact, a conclusion of law, or an
12alternative sanction, and shall specify the particular grounds
13for the request. If the accused orders a transcript of the
14record as provided in this Act, the time elapsing thereafter
15and before the transcript is ready for delivery to the accused
16shall not be counted as part of the 20 days. If the Secretary
17is not satisfied that substantial justice has been done, the
18Secretary may order a rehearing by the Board or other special
19committee appointed by the Secretary, may remand the matter to
20the Board for its reconsideration of the matter based on the
21pleadings and evidence presented to the Board, or may enter a
22final order in contravention of the Board's recommendation.
23Notwithstanding a licensee's or applicant's failure to file a
24motion for rehearing, the Secretary shall have the right to
25take any of the actions specified in this subsection (d). Upon
26the suspension or revocation of a license, the licensee shall

 

 

10200HB3714ham002- 47 -LRB102 03960 SPS 24465 a

1be required to surrender the respective his or her license to
2the Department, and upon failure or refusal to do so, the
3Department shall have the right to seize the license.
4    (e) The Department has the power to issue subpoenas and
5subpoenas duces tecum to bring before it any person in this
6State, to take testimony, or to require production of any
7records relevant to an inquiry or hearing by the Board in the
8same manner as prescribed by law in judicial proceedings in
9the courts of this State. In a case of refusal of a witness to
10attend, testify, or to produce books or papers concerning a
11matter upon which the witness he or she might be lawfully
12examined, the circuit court of the county where the hearing is
13held, upon application of the Department or any party to the
14proceeding, may compel obedience by proceedings as for
15contempt.
16    (f) Any license that is suspended indefinitely or revoked
17may not be restored for a minimum period of 3 2 years, or as
18otherwise ordered by the Secretary.
19    (g) In addition to the provisions of this Section
20concerning the conduct of hearings and the recommendations for
21discipline, the Department has the authority to negotiate
22disciplinary and non-disciplinary settlement agreements
23concerning any license issued under this Act. All such
24agreements shall be recorded as Consent Orders or Consent to
25Administrative Supervision Orders.
26    (h) The Secretary shall have the authority to appoint an

 

 

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1attorney duly licensed to practice law in the State of
2Illinois to serve as the hearing officer in any action to
3suspend, revoke, or otherwise discipline any license issued by
4the Department. The Hearing Officer shall have full authority
5to conduct the hearing.
6    (i) The Department, at its expense, shall preserve a
7record of all formal hearings of any contested case involving
8the discipline of a license. At all hearings or pre-hearing
9conferences, the Department and the licensee shall be entitled
10to have the proceedings transcribed by a certified shorthand
11reporter. A copy of the transcribed proceedings shall be made
12available to the licensee by the certified shorthand reporter
13upon payment of the prevailing contract copy rate.
14(Source: P.A. 100-831, eff. 1-1-19.)
 
15    (225 ILCS 458/15-55)
16    (Section scheduled to be repealed on January 1, 2022)
17    Sec. 15-55. Checks, credit card charges, or orders to
18Department dishonored because of insufficient funds. Any
19person who:
20        (1) delivers a check or other payment to the
21    Department that is returned to the Department unpaid by
22    the financial institution upon which it was drawn; or
23        (2) presents a credit card or debit card for payment
24    that is invalid or expired or against which charges by the
25    Department are declined or dishonored;

 

 

10200HB3714ham002- 49 -LRB102 03960 SPS 24465 a

1shall pay to the Department, in addition to the amount already
2owed to the Department, a fine of $50. The fines imposed by
3this Section are in addition to any other discipline provided
4under this Act for unlicensed practice or practice on a
5non-renewed license. The Department shall notify the applicant
6or licensee that payment of fees and fines shall be paid to the
7Department by certified check or money order within 30
8calendar days after the notification. If, after the expiration
9of 30 days from the date of the notification, the person has
10failed to submit the necessary remittance, the Department
11shall automatically terminate the license or deny the
12application, without hearing. After If, after termination or
13denial, the person seeking seeks a license, he or she must
14apply to the Department for restoration or issuance of the
15license and pay all fees and fines due to the Department. The
16Department may establish a fee for the processing of an
17application for restoration of a license to pay all of the
18expenses of processing the application. The Secretary may
19waive the fines due under this Section in individual cases
20where the Secretary finds that the penalties or fines would be
21unreasonable or unnecessarily burdensome.
22(Source: P.A. 96-844, eff. 12-23-09.)
 
23    (225 ILCS 458/20-5)
24    (Section scheduled to be repealed on January 1, 2022)
25    Sec. 20-5. Education providers.

 

 

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1    (a) No person shall operate an education provider entity
2without possessing an active license issued by the Department.
3Only Beginning July 1, 2002, only education providers licensed
4or otherwise approved by the Department may provide the
5qualifying and continuing education courses required for
6licensure under this Act. Every person that desires to obtain
7an education provider license shall make application to the
8Department in a manner prescribed by the Department and pay
9the fee prescribed by rule.
10    (b) A person or entity seeking to be licensed as an
11education provider under this Act shall provide satisfactory
12evidence of the following:
13        (1) a sound financial base for establishing,
14    promoting, and delivering the necessary courses;
15        (2) (blank); a sufficient number of qualified
16    instructors;
17        (3) (blank); adequate support personnel to assist with
18    administrative matters and technical assistance;
19        (4) (blank); a written policy dealing with procedures
20    for management of grievances and fee refunds;
21        (5) a qualified administrator, who is responsible for
22    the administration of the education provider, courses, and
23    the actions of the instructors; and
24        (6) any other requirements as provided by rule; and .
25        (7) proof of good standing with the Secretary of State
26    and authority to conduct businesses in this State.

 

 

10200HB3714ham002- 51 -LRB102 03960 SPS 24465 a

1    (c) All applicants for an education provider's license
2shall make initial application to the Department on forms
3provided by the Department, or through a multi-state licensing
4system as designated by the Secretary, and pay the appropriate
5fee as provided by rule. The term, expiration date, and
6renewal of an education provider's license shall be
7established by rule.
8    (d) An education provider shall provide each successful
9course participant with a certificate of completion signed by
10the school administrator. The format and content of the
11certificate shall be specified by rule.
12    (e) All education providers shall provide to the
13Department a monthly roster of all successful course
14participants as provided by rule.
15(Source: P.A. 100-604, eff. 7-13-18.)
 
16    (225 ILCS 458/20-10)
17    (Section scheduled to be repealed on January 1, 2022)
18    Sec. 20-10. Course approval.
19    (a) Only courses offered by licensed education providers
20and approved by the Department, courses approved by the AQB,
21or courses approved by jurisdictions monitored regulated by
22the Appraisal Subcommittee shall be used to meet the
23requirements of this Act and rules.
24    (b) An education provider licensed under this Act may
25submit courses to the Department, or through a multi-state

 

 

10200HB3714ham002- 52 -LRB102 03960 SPS 24465 a

1licensing system as designated by the Secretary, for approval.
2The criteria, requirements, and fees for courses shall be
3established by rule in accordance with this Act and the
4criteria established by the AQB.
5    (c) For each course approved, the Department shall issue a
6license to the education provider. The term, expiration date,
7and renewal of a course approval shall be established by rule.
8    (d) An education provider must use an instructor for each
9course approved by the Department who (i) holds a valid real
10estate appraisal license in good standing as a State certified
11general real estate appraiser or a State certified residential
12real estate appraiser in Illinois or any other jurisdiction
13monitored by the Appraisal Subcommittee, (ii) holds a valid
14teaching certificate issued by the State of Illinois, or (iii)
15is a faculty member in good standing with an accredited
16college or university or community college, or (iv) satisfies
17requirements established by rule is an approved appraisal
18instructor from an appraisal organization that is a member of
19the Appraisal Foundation.
20(Source: P.A. 100-604, eff. 7-13-18.)
 
21    (225 ILCS 458/25-10)
22    (Section scheduled to be repealed on January 1, 2022)
23    Sec. 25-10. Real Estate Appraisal Administration and
24Disciplinary Board; appointment.
25    (a) There is hereby created the Real Estate Appraisal

 

 

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1Administration and Disciplinary Board. The Board shall be
2composed of the Coordinator and 10 persons appointed by the
3Governor, plus the Coordinator of the Real Estate Appraisal
4Division. Members shall be appointed to the Board subject to
5the following conditions:
6        (1) All appointed members shall have been residents
7    and citizens of this State for at least 5 years prior to
8    the date of appointment.
9        (2) The appointed membership of the Board should
10    reasonably reflect the geographic distribution of the
11    population of the State.
12        (3) Four appointed members shall have been actively
13    engaged and currently licensed as State certified general
14    real estate appraisers for a period of not less than 5
15    years.
16        (4) Three Two appointed members shall have been
17    actively engaged and currently licensed as State certified
18    residential real estate appraisers for a period of not
19    less than 5 years.
20        (5) One Two appointed member members shall hold a
21    valid license as a real estate broker for at least 3 10
22    years prior to the date of the appointment and , one of whom
23    shall hold either a valid State certified general real
24    estate appraiser license or a valid State certified
25    residential appraiser license issued under this Act or a
26    predecessor Act for a period of at least 5 years prior to

 

 

10200HB3714ham002- 54 -LRB102 03960 SPS 24465 a

1    the appointment and one of whom shall hold a valid State
2    certified residential real estate appraiser license issued
3    under this Act or a predecessor Act for a period of at
4    least 5 years prior to the appointment.
5        (6) One appointed member shall be a representative of
6    a financial institution, as evidenced by proof of his or
7    her employment with a financial institution.
8        (7) One appointed member shall represent the interests
9    of the general public. This member or the member's his or
10    her spouse shall not be licensed under this Act nor be
11    employed by or have any financial interest in an appraisal
12    business, appraisal management company, real estate
13    brokerage business, or a financial institution.
14    In making appointments as provided in paragraphs (3) and
15(4) of this subsection, the Governor shall give due
16consideration to recommendations by members and organizations
17representing the profession.
18    In making the appointments as provided in paragraph (5) of
19this subsection, the Governor shall give due consideration to
20the recommendations by members and organizations representing
21the real estate industry.
22    In making the appointment as provided in paragraph (6) of
23this subsection, the Governor shall give due consideration to
24the recommendations by members and organizations representing
25financial institutions.
26    (b) The members' terms shall be for 4 years or until a

 

 

10200HB3714ham002- 55 -LRB102 03960 SPS 24465 a

1successor is appointed and expire upon completion of the term.
2No member shall be reappointed to the Board for a term that
3would cause the member's his or her cumulative service to the
4Board to exceed 10 years. Appointments to fill vacancies shall
5be for the unexpired portion of the term.
6    (c) The Governor may terminate the appointment of a member
7for cause that, in the opinion of the Governor, reasonably
8justifies the termination. Cause for termination may include,
9without limitation, misconduct, incapacity, neglect of duty,
10or missing 4 Board meetings during any one fiscal calendar
11year.
12    (d) A majority of the Board members shall constitute a
13quorum. A vacancy in the membership of the Board shall not
14impair the right of a quorum to exercise all of the rights and
15perform all of the duties of the Board.
16    (e) The Board shall meet at least monthly quarterly and
17may be convened by the Chairperson, Vice-Chairperson, or 3
18members of the Board upon 10 days written notice.
19    (f) The Board shall, annually at the first meeting of the
20fiscal year, elect a Chairperson and Vice-Chairperson from its
21members. The Chairperson shall preside over the meetings and
22shall coordinate with the Coordinator in developing and
23distributing an agenda for each meeting. In the absence of the
24Chairperson, the Vice-Chairperson shall preside over the
25meeting.
26    (g) The Coordinator of the Real Estate Appraisal Division

 

 

10200HB3714ham002- 56 -LRB102 03960 SPS 24465 a

1shall serve as a member of the Board without vote.
2    (h) The Board shall advise and make recommendations to the
3Department on the education and experience qualifications of
4any applicant for initial licensure as a State certified
5general real estate appraiser or a State certified residential
6real estate appraiser. The Department shall not make any
7decisions concerning education or experience qualifications of
8an applicant for initial licensure as a State certified
9general real estate appraiser or a State certified residential
10real estate appraiser without having first received the advice
11and recommendation of the Board and shall give due
12consideration to all such advice and recommendations; however,
13if the Board does not render advice or make a recommendation
14within a reasonable amount of time, then the Department may
15render a decision.
16    (i) Except as provided in Section 15-17 of this Act, the
17Board shall hear and make recommendations to the Secretary on
18disciplinary matters that require a formal evidentiary
19hearing. The Secretary shall give due consideration to the
20recommendations of the Board involving discipline and
21questions involving standards of professional conduct of
22licensees.
23    (j) The Department shall seek and the Board shall provide
24recommendations to the Department consistent with the
25provisions of this Act and for the administration and
26enforcement of all rules adopted pursuant to this Act. The

 

 

10200HB3714ham002- 57 -LRB102 03960 SPS 24465 a

1Department shall give due consideration to such
2recommendations prior to adopting rules.
3    (k) The Department shall seek and the Board shall provide
4recommendations to the Department on the approval of all
5courses submitted to the Department pursuant to this Act and
6the rules adopted pursuant to this Act. The Department shall
7not approve any courses without having first received the
8recommendation of the Board and shall give due consideration
9to such recommendations prior to approving and licensing
10courses; however, if the Board does not make a recommendation
11within a reasonable amount of time, then the Department may
12approve courses.
13    (l) Each voting member of the Board shall receive a per
14diem stipend in an amount to be determined by the Secretary.
15While engaged in the performance of duties, each Each member
16shall be paid the his or her necessary expenses while engaged
17in the performance of his or her duties.
18    (m) Members of the Board shall be immune from suit in an
19action based upon any disciplinary proceedings or other acts
20performed in good faith as members of the Board.
21    (n) If the Department disagrees with any advice or
22recommendation provided by the Board under this Section to the
23Secretary or the Department, then notice of such disagreement
24must be provided to the Board by the Department.
25    (o) (Blank). Upon resolution adopted at any Board meeting,
26the exercise of any Board function, power, or duty enumerated

 

 

10200HB3714ham002- 58 -LRB102 03960 SPS 24465 a

1in this Section or in subsection (d) of Section 15-10 of this
2Act may be suspended. The exercise of any suspended function,
3power, or duty of the Board may be reinstated by a resolution
4adopted at a subsequent Board meeting. Any resolution adopted
5pursuant to this Section shall take effect immediately.
6(Source: P.A. 100-886, eff. 8-14-18.)
 
7    (225 ILCS 458/25-15)
8    (Section scheduled to be repealed on January 1, 2022)
9    Sec. 25-15. Coordinator of Real Estate Appraisal
10Coordinator; appointment; duties. The Secretary shall appoint,
11subject to the Personnel Code, a Coordinator of Real Estate
12Appraisal. In appointing the Coordinator, the Secretary shall
13give due consideration to recommendations made by members,
14organizations, and associations of the real estate appraisal
15industry. The On or after January 1, 2010, the Coordinator
16must hold a current, valid State certified general real estate
17appraiser license for a period of at least 5 years prior to
18appointment. The Coordinator shall not practice during the
19term of the his or her appointment. The Coordinator must take
20the 30-hour National Instructors Course on Uniform Standards
21of Professional Appraisal Practice. The Coordinator shall be
22credited with all fees that came due during the Coordinator's
23his or her employment. The Coordinator shall:
24        (1) serve as a member of the Real Estate Appraisal
25    Administration and Disciplinary Board without vote;

 

 

10200HB3714ham002- 59 -LRB102 03960 SPS 24465 a

1        (2) be the direct liaison between the Department, the
2    profession, and the real estate appraisal industry
3    organizations and associations;
4        (3) prepare and circulate to licensees such
5    educational and informational material as the Department
6    deems necessary for providing guidance or assistance to
7    licensees;
8        (4) appoint necessary committees to assist in the
9    performance of the functions and duties of the Department
10    under this Act;
11        (5) (blank); and
12        (6) be authorized to investigate and determine the
13    facts of a complaint; the coordinator may interview
14    witnesses, the complainant, and any licensees involved in
15    the alleged matter and make a recommendation as to the
16    findings of fact.
17(Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15.)
 
18    (225 ILCS 458/25-16)
19    (Section scheduled to be repealed on January 1, 2022)
20    Sec. 25-16. Staff. The Department shall employ a minimum
21of one investigator with an active certified appraiser license
22per 2,000 licensees in order to have sufficient staff to
23perform the Department's obligations under this Act.
24(Source: P.A. 100-832, eff. 1-1-19.)
 

 

 

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1    (225 ILCS 458/25-20)
2    (Section scheduled to be repealed on January 1, 2022)
3    Sec. 25-20. Department; powers and duties. The Department
4of Financial and Professional Regulation shall exercise the
5powers and duties prescribed by the Civil Administrative Code
6of Illinois for the administration of licensing Acts and shall
7exercise such other powers and duties as are prescribed by
8this Act for the administration of this Act. The Department
9may contract with third parties for services necessary for the
10proper administration of this Act, including without
11limitation, investigators with the proper knowledge, training,
12and skills to properly investigate complaints against real
13estate appraisers.
14    The Department shall maintain and update a registry of the
15names and addresses of all licensees and a listing of
16disciplinary orders issued pursuant to this Act and shall
17transmit the registry, along with any national registry fees
18that may be required, to the entity specified by, and in a
19manner consistent with, Title XI of the federal Financial
20Institutions Reform, Recovery and Enforcement Act of 1989.
21(Source: P.A. 96-844, eff. 12-23-09.)
 
22    (225 ILCS 458/25-25)
23    (Section scheduled to be repealed on January 1, 2022)
24    Sec. 25-25. Rules. The Department, after notifying and
25considering any recommendations of the Board, if any, shall

 

 

10200HB3714ham002- 61 -LRB102 03960 SPS 24465 a

1adopt rules that may be necessary for administration,
2implementation, and enforcement of the Act.
3(Source: P.A. 96-844, eff. 12-23-09.)
 
4    (225 ILCS 458/25-35 new)
5    Sec. 25-35. No private right of action. Except as
6otherwise expressly provided for in this Act, nothing in this
7Act shall be construed to grant to any person a private right
8of action to enforce the provisions of this Act or the rules
9adopted under this Act.
 
10    (225 ILCS 458/30-5)
11    (Section scheduled to be repealed on January 1, 2022)
12    Sec. 30-5. Savings provisions.
13    (a) This Act is intended to replace the Real Estate
14Appraiser Licensing Act in all respects.
15    (b) Beginning July 1, 2002, the rights, powers, and duties
16exercised by the Office of Banks and Real Estate under the Real
17Estate Appraiser Licensing Act shall continue to be vested in,
18to be the obligation of, and to be exercised by the Division of
19Real Estate of the Department of Financial and Professional
20Regulation Office of Banks and Real Estate under the
21provisions of this Act.
22    (c) This Act does not affect any act done, ratified, or
23cancelled, any right occurring or established, or any action
24or proceeding commenced in an administrative, civil, or

 

 

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1criminal cause before July 1, 2002 by the Office of Banks and
2Real Estate under the Real Estate Appraiser Licensing Act.
3Those actions or proceedings may be prosecuted and continued
4by the Division of Real Estate of the Department of Financial
5and Professional Regulation Office of Banks and Real Estate
6under this Act.
7    (d) This Act does not affect any license, certificate,
8permit, or other form of licensure issued by the Office of
9Banks and Real Estate under the Real Estate Appraiser
10Licensing Act, except as provided is subsection (c) of Section
115-25. All such licenses, certificates, permits, or other form
12of licensure shall continue to be valid under the terms and
13conditions of this Act.
14    (e) The rules adopted by the Office of Banks and Real
15Estate relating to the Real Estate Appraiser Licensing Act,
16unless inconsistent with the provisions of this Act, are not
17affected by this Act, and on July 1, 2002, those rules become
18rules under this Act. The Office of Banks and Real Estate
19shall, as soon as practicable, adopt new or amended rules
20consistent with the provisions of this Act.
21    (f) This Act does not affect any discipline, suspension,
22or termination that has occurred under the Real Estate
23Appraiser Licensing Act or other predecessor Act. Any action
24for discipline, suspension, or termination instituted under
25the Real Estate Appraiser Licensing Act shall be continued
26under this Act.

 

 

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1(Source: P.A. 92-180, eff. 7-1-02.)
 
2    (225 ILCS 458/10-17 rep.)
3    (225 ILCS 458/30-10 rep.)
4    Section 15. The Real Estate Appraiser Licensing Act of
52002 is amended by repealing Sections 10-17 and 30-10.
 
6    Section 20. The Appraisal Management Company Registration
7Act is amended by changing Sections 10 and 15 as follows:
 
8    (225 ILCS 459/10)
9    Sec. 10. Definitions. In this Act:
10    "Address of record" means the principal address recorded
11by the Department in the applicant's or registrant's
12application file or registration file maintained by the
13Department's registration maintenance unit.
14    "Applicant" means a person or entity who applies to the
15Department for a registration under this Act.
16    "Appraisal" means (noun) the act or process of developing
17an opinion of value; an opinion of value (adjective) of or
18pertaining to appraising and related functions.
19    "Appraisal firm" means an appraisal entity that is 100%
20owned and controlled by a person or persons licensed in
21Illinois as a certified general real estate appraiser or a
22certified residential real estate appraiser. An appraisal firm
23does not include an appraisal management company.

 

 

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1    "Appraisal management company" means any corporation,
2limited liability company, partnership, sole proprietorship,
3subsidiary, unit, or other business entity that directly or
4indirectly: (1) provides appraisal management services to
5creditors or secondary mortgage market participants, including
6affiliates; (2) provides appraisal management services in
7connection with valuing the consumer's principal dwelling as
8security for a consumer credit transaction (including consumer
9credit transactions incorporated into securitizations); and
10(3) within a given year, oversees an appraiser panel of any
11size of State-certified appraisers in Illinois; and (4) any
12appraisal management company that, within a given 12-month
13period year, oversees an appraiser panel of 16 or more
14State-certified appraisers in Illinois or 25 or more
15State-certified or State-licensed appraisers in 2 or more
16jurisdictions shall be subject to the appraisal management
17company national registry fee in addition to the appraiser
18panel fee. "Appraisal management company" includes a hybrid
19entity.
20    "Appraisal management company national registry fee" means
21the fee implemented pursuant to Title XI of the federal
22Financial Institutions Reform, Recovery and Enforcement Act of
231989 for an appraiser management company's national registry.
24    "Appraisal management services" means one or more of the
25following:
26        (1) recruiting, selecting, and retaining appraisers;

 

 

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1        (2) contracting with State-certified or State-licensed
2    appraisers to perform appraisal assignments;
3        (3) managing the process of having an appraisal
4    performed, including providing administrative services
5    such as receiving appraisal orders and appraisal reports;
6    submitting completed appraisal reports to creditors and
7    secondary market participants; collecting compensation
8    from creditors, underwriters, or secondary market
9    participants for services provided; or paying appraisers
10    for services performed; or
11        (4) reviewing and verifying the work of appraisers.
12    "Appraiser panel" means a network, list, or roster of
13licensed or certified appraisers approved by the appraisal
14management company or by the end-user client to perform
15appraisals as independent contractors for the appraisal
16management company. "Appraiser panel" includes both appraisers
17accepted by an appraisal management company for consideration
18for future appraisal assignments and appraisers engaged by an
19appraisal management company to perform one or more
20appraisals. For the purposes of determining the size of an
21appraiser panel, only independent contractors of hybrid
22entities shall be counted towards the appraiser panel.
23    "Appraiser panel fee" means the amount collected from a
24registrant that, where applicable, includes an appraisal
25management company's national registry fee.
26    "Appraisal report" means a written appraisal by an

 

 

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1appraiser to a client.
2    "Appraisal practice service" means valuation services
3performed by an individual acting as an appraiser, including,
4but not limited to, appraisal or appraisal review.
5    "Appraisal subcommittee" means the appraisal subcommittee
6of the Federal Financial Institutions Examination Council as
7established by Title XI.
8    "Appraiser" means a person who performs real estate or
9real property appraisals.
10    "Assignment result" means an appraiser's opinions and
11conclusions developed specific to an assignment.
12    "Audit" includes, but is not limited to, an annual or
13special audit, visit, or review necessary under this Act or
14required by the Secretary or the Secretary's authorized
15representative in carrying out the duties and responsibilities
16under this Act.
17    "Client" means the party or parties who engage an
18appraiser by employment or contract in a specific appraisal
19assignment.
20    "Controlling Person" means:
21        (1) an owner, officer, or director of an entity
22    seeking to offer appraisal management services;
23        (2) an individual employed, appointed, or authorized
24    by an appraisal management company who has the authority
25    to:
26            (A) enter into a contractual relationship with a

 

 

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1        client for the performance of an appraisal management
2        service or appraisal practice service; and
3            (B) enter into an agreement with an appraiser for
4        the performance of a real estate appraisal activity;
5        (3) an individual who possesses, directly or
6    indirectly, the power to direct or cause the direction of
7    the management or policies of an appraisal management
8    company; or
9        (4) an individual who will act as the sole compliance
10    officer with regard to this Act and any rules adopted
11    under this Act.
12    "Coordinator" means the Coordinator of the Appraisal
13Management Company Registration Unit of the Department or his
14or her designee.
15    "Covered transaction" means a consumer credit transaction
16secured by a consumer's principal dwelling.
17    "Department" means the Department of Financial and
18Professional Regulation.
19    "Email address of record" means the designated email
20address recorded by the Department in the applicant's
21application file or the registrant's registration file
22maintained by the Department's registration maintenance unit.
23    "Entity" means a corporation, a limited liability company,
24partnership, a sole proprietorship, or other entity providing
25services or holding itself out to provide services as an
26appraisal management company or an appraisal management

 

 

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1service.
2    "End-user client" means any person who utilizes or engages
3the services of an appraiser through an appraisal management
4company.
5    "Federally regulated appraisal management company" means
6an appraisal management company that is owned and controlled
7by an insured depository institution, as defined in 12 U.S.C.
81813, or an insured credit union, as defined in 12 U.S.C. 1752,
9and regulated by the Office of the Comptroller of the
10Currency, the Federal Reserve Board, the National Credit Union
11Association, or the Federal Deposit Insurance Corporation.
12    "Financial institution" means any bank, savings bank,
13savings and loan association, credit union, mortgage broker,
14mortgage banker, registrant under the Consumer Installment
15Loan Act or the Sales Finance Agency Act, or a corporate
16fiduciary, subsidiary, affiliate, parent company, or holding
17company of any registrant, or any institution involved in real
18estate financing that is regulated by State or federal law.
19    "Foreign appraisal management company" means any appraisal
20management company organized under the laws of any other state
21of the United States, the District of Columbia, or any other
22jurisdiction of the United States.
23    "Hybrid entity" means an appraisal management company that
24hires an appraiser as an employee to perform an appraisal and
25engages an independent contractor to perform an appraisal.
26    "Multi-state licensing system" means a web-based platform

 

 

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1that allows an applicant to submit the his or her application
2or registration renewal to the Department online.
3    "Person" means individuals, entities, sole
4proprietorships, corporations, limited liability companies,
5and alien, foreign, or domestic partnerships, except that when
6the context otherwise requires, the term may refer to a single
7individual or other described entity.
8    "Principal dwelling" means a residential structure that
9contains one to 4 units, whether or not that structure is
10attached to real property. "Principal dwelling" includes an
11individual condominium unit, cooperative unit, manufactured
12home, mobile home, and trailer, if it is used as a residence.
13    "Principal office" means the actual, physical business
14address, which shall not be a post office box or a virtual
15business address, of a registrant, at which (i) the Department
16may contact the registrant and (ii) records required under
17this Act are maintained.
18    "Qualified to transact business in this State" means being
19in compliance with the requirements of the Business
20Corporation Act of 1983.
21    "Quality control review" means a review of an appraisal
22report for compliance and completeness, including grammatical,
23typographical, or other similar errors, unrelated to
24developing an opinion of value.
25    "Real estate" means an identified parcel or tract of land,
26including any improvements.

 

 

10200HB3714ham002- 70 -LRB102 03960 SPS 24465 a

1    "Real estate related financial transaction" means any
2transaction involving:
3        (1) the sale, lease, purchase, investment in, or
4    exchange of real property, including interests in property
5    or the financing thereof;
6        (2) the refinancing of real property or interests in
7    real property; and
8        (3) the use of real property or interest in property
9    as security for a loan or investment, including mortgage
10    backed securities.
11    "Real property" means the interests, benefits, and rights
12inherent in the ownership of real estate.
13    "Secretary" means the Secretary of Financial and
14Professional Regulation.
15    "USPAP" means the Uniform Standards of Professional
16Appraisal Practice as adopted by the Appraisal Standards Board
17under Title XI.
18    "Valuation" means any estimate of the value of real
19property in connection with a creditor's decision to provide
20credit, including those values developed under a policy of a
21government sponsored enterprise or by an automated valuation
22model or other methodology or mechanism.
23    "Written notice" means a communication transmitted by mail
24or by electronic means that can be verified between an
25appraisal management company and a licensed or certified real
26estate appraiser.

 

 

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1(Source: P.A. 100-604, eff. 7-13-18.)
 
2    (225 ILCS 459/15)
3    Sec. 15. Exemptions.
4    (a) Nothing in this Act shall apply to any of the
5following:
6        (1) an agency of the federal, State, county, or
7    municipal government or an officer or employee of a
8    government agency, or person, described in this Section
9    when acting within the scope of employment of the officer
10    or employee;
11        (2) a corporate relocation company when the appraisal
12    is not used for mortgage purposes and the end user client
13    is an employer company;
14        (3) any person licensed in this State under any other
15    Act while engaged in the activities or practice for which
16    he or she is licensed;
17        (4) any person licensed to practice law in this State
18    who is working with or on behalf of a client of that person
19    in connection with one or more appraisals for that client;
20        (5) an appraiser that enters into an agreement,
21    whether written or otherwise, with another appraiser for
22    the performance of an appraisal, and upon the completion
23    of the appraisal, the report of the appraiser performing
24    the appraisal is signed by both the appraiser who
25    completed the appraisal and the appraiser who requested

 

 

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1    the completion of the appraisal, except that an appraisal
2    management company may not avoid the requirement of
3    registration under this Act by requiring an employee of
4    the appraisal management company who is an appraiser to
5    sign an appraisal that was completed by another appraiser
6    who is part of the appraisal panel of the appraisal
7    management company;
8        (6) any person acting as an agent of the Illinois
9    Department of Transportation in the acquisition or
10    relinquishment of land for transportation issues to the
11    extent of their contract scope;
12        (7) a design professional entity when the appraisal is
13    not used for mortgage purposes and the end user client is
14    an agency of State government or a unit of local
15    government;
16        (8) an appraiser firm whose ownership is appropriately
17    certified under the Real Estate Appraiser Licensing Act of
18    2002; or
19        (9) an appraisal management company solely engaged in
20    non-residential appraisal management services; or .
21        (10) a department or division of an entity that
22    provides appraisal management services only to that
23    entity.
24    (b) A federally regulated appraisal management company
25shall register with the Department for the sole purpose of
26collecting required information for, and to pay all fees

 

 

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1associated with, the State of Illinois' obligation to register
2the federally regulated appraisal management company with the
3Appraisal Management Companies National Registry, but the
4federally regulated appraisal management company is otherwise
5exempt from all other provisions in this Act.
6    (c) In the event that the Final Interim Rule of the federal
7Dodd-Frank Wall Street Reform and Consumer Protection Act
8provides that an appraisal management company is a subsidiary
9owned and controlled by a financial institution regulated by a
10federal financial institution's regulatory agency and is
11exempt from State appraisal management company registration
12requirements, the Department, shall, by rule, provide for the
13implementation of such an exemption.
14(Source: P.A. 100-604, eff. 7-13-18.)
 
15    Section 99. Effective date. This Act takes effect January
161, 2022, except that Section 5 and this Section take effect
17immediately.".