HB5167 EngrossedLRB102 25439 SPS 34725 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.970 as follows:
 
6    (30 ILCS 105/5.970 new)
7    Sec. 5.970. The Division of Real Estate General Fund.
 
8    (30 ILCS 105/5.557 rep.)
9    (30 ILCS 105/5.558 rep.)
10    (30 ILCS 105/5.742 rep.)
11    Section 10. The State Finance Act is amended by repealing
12Sections 5.557, 5.558, and 5.742.
 
13    Section 15. The Auction License Act is amended by changing
14Sections 10-5, 10-30, 10-50, 20-15, 20-95, 30-13, and 30-30
15and by adding Sections 20-11, 20-15.1, 20-16, and 20-105 as
16follows:
 
17    (225 ILCS 407/10-5)
18    (Section scheduled to be repealed on January 1, 2030)
19    Sec. 10-5. Requirements for auctioneer license;
20application.

 

 

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1    (a) Every person who desires to obtain an auctioneer
2license under this Act shall:
3        (1) apply to the Department on forms provided by the
4    Department accompanied by the required fee;
5        (2) be at least 18 years of age;
6        (3) have attained a high school diploma or
7    successfully completed an equivalent course of study
8    determined by an examination conducted by the Illinois
9    State Board of Education; and
10        (4) pass a written examination authorized by the
11    Department to prove competence, including but not limited
12    to general knowledge of Illinois and federal laws
13    pertaining to personal property contracts, auctions, real
14    property, ethics, and other topics relating to the auction
15    business.
16    (b) The Department shall not require applicants to report
17the following information and shall not consider the following
18criminal history records in connection with an application for
19licensure or registration:
20        (1) juvenile adjudications of delinquent minors as
21    defined in Section 5-105 of the Juvenile Court Act of 1987
22    subject to the restrictions set forth in Section 5-130 of
23    that Act;
24        (2) law enforcement records, court records, and
25    conviction records of an individual who was 17 years old
26    at the time of the offense and before January 1, 2014,

 

 

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1    unless the nature of the offense required the individual
2    to be tried as an adult;
3        (3) records of arrest not followed by a charge or
4    conviction;
5        (4) records of arrest where the charges were dismissed
6    unless related to the practice of the profession; however,
7    applicants shall not be asked to report any arrests, and
8    an arrest not followed by a conviction shall not be the
9    basis of denial and may be used only to assess an
10    applicant's rehabilitation;
11        (5) convictions overturned by a higher court; or
12        (6) convictions or arrests that have been sealed or
13    expunged.
14    (c) An applicant or licensee shall report to the
15Department, in a manner prescribed by the Department, and
16within 30 days after the occurrence if during the term of
17licensure: (i) any conviction of, or plea of guilty, or nolo
18contendere to forgery, embezzlement, obtaining money under
19false pretenses, larceny, extortion, conspiracy to defraud, or
20any similar offense or offenses or any conviction of a felony
21involving moral turpitude; or (ii) the entry of an
22administrative sanction by a government agency in this State
23or any other jurisdiction that has as an essential element
24dishonesty or fraud or involves larceny, embezzlement, or
25obtaining money, property, or credit by false pretenses.
26(Source: P.A. 101-345, eff. 8-9-19.)
 

 

 

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1    (225 ILCS 407/10-30)
2    (Section scheduled to be repealed on January 1, 2030)
3    Sec. 10-30. Expiration, renewal, and continuing education.
4    (a) License expiration dates, renewal periods, renewal
5fees, and procedures for renewal of licenses issued under this
6Act shall be set by rule of the Department. An entity may renew
7its license by paying the required fee and by meeting the
8renewal requirements adopted by the Department under this
9Section.
10    (b) All renewal applicants must provide proof as
11determined by the Department of having met the continuing
12education requirements by the deadline set forth by the
13Department by rule. At a minimum, the rules shall require an
14applicant for renewal licensure as an auctioneer to provide
15proof of the completion of at least 12 hours of continuing
16education during the pre-renewal period established by the
17Department for completion of continuing education from schools
18approved by the Department, as established by rule.
19    (c) The Department, in its discretion, may waive
20enforcement of the continuing education requirements of this
21Section and shall adopt rules defining the standards and
22criteria for such waiver.
23    (d) (Blank).
24    (e) The Department shall not renew a license if the
25licensee has an unpaid fine or fee from a disciplinary matter

 

 

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1or from a non-disciplinary action imposed by the Department
2until the fine or fee is paid to the Department or the licensee
3has entered into a payment plan and is current on the required
4payments.
5    (f) The Department shall not issue a license if the
6applicant has an unpaid fine imposed by the Department for
7unlicensed practice until the fine is paid to the Department
8or the applicant has entered into a payment plan and is current
9on the required payments.
10(Source: P.A. 100-831, eff. 1-1-19.)
 
11    (225 ILCS 407/10-50)
12    (Section scheduled to be repealed on January 1, 2030)
13    Sec. 10-50. Fees; disposition of funds.
14    (a) The Department shall establish by rule a schedule of
15fees for the administration and maintenance of this Act. Such
16fees shall be nonrefundable.
17    (b) Prior to January 1, 2023, all All fees collected under
18this Act shall be deposited into the General Professions
19Dedicated Fund and appropriated to the Department for the
20ordinary and contingent expenses of the Department in the
21administration of this Act. Beginning on January 1, 2023, all
22fees, fines, penalties, or other monies received or collected
23pursuant to this Act shall be deposited in the Division of Real
24Estate General Fund.
25(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
 

 

 

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1    (225 ILCS 407/20-11 new)
2    Sec. 20-11. Confidentiality. All information collected by
3the Department in the course of an examination or
4investigation of a licensee or applicant, including, but not
5limited to, any complaint against a licensee filed with the
6Department and information collected to investigate any such
7complaint, shall be maintained for the confidential use of the
8Department and shall not be disclosed. The Department may not
9disclose the information to anyone other than law enforcement
10officials, other regulatory agencies that have an appropriate
11regulatory interest as determined by the Secretary, or to a
12party presenting a lawful subpoena to the Department.
13Information and documents disclosed to a federal, State,
14county, or local law enforcement agency shall not be disclosed
15by the agency for any purpose to any other agency or person. A
16formal complaint filed against a licensee by the Department or
17any order issued by the Department against a licensee or
18applicant shall be a public record, except as otherwise
19prohibited by law.
 
20    (225 ILCS 407/20-15)
21    (Section scheduled to be repealed on January 1, 2030)
22    Sec. 20-15. Disciplinary actions; grounds. The Department
23may refuse to issue or renew a license, may place on probation
24or administrative supervision, suspend, or revoke any license

 

 

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1or may reprimand or take other disciplinary or
2non-disciplinary action as the Department may deem proper,
3including the imposition of fines not to exceed $10,000 for
4each violation upon anyone licensed under this Act for any of
5the following reasons:
6        (1) False or fraudulent representation or material
7    misstatement in furnishing information to the Department
8    in obtaining or seeking to obtain a license.
9        (2) Violation of any provision of this Act or the
10    rules adopted under this Act.
11        (3) Conviction of or entry of a plea of guilty or nolo
12    contendere, as set forth in subsection (c) of Section
13    10-5, to any crime that is a felony or misdemeanor under
14    the laws of the United States or any state or territory
15    thereof, or entry of an administrative sanction by a
16    government agency in this State or any other jurisdiction
17    that is a misdemeanor, an essential element of which is
18    dishonesty, or any crime that is directly related to the
19    practice of the profession.
20        (3.5) Failing to notify the Department, of any
21    criminal conviction that occurs during the licensee's term
22    of licensure within 30 days after the occurrence, of the
23    information required in subsection (c) of Section 10-5
24    conviction.
25        (4) Being adjudged to be a person under legal
26    disability or subject to involuntary admission or to meet

 

 

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1    the standard for judicial admission as provided in the
2    Mental Health and Developmental Disabilities Code.
3        (5) Discipline of a licensee by another state, the
4    District of Columbia, a territory of the United States, a
5    foreign nation, a governmental agency, or any other entity
6    authorized to impose discipline if at least one of the
7    grounds for that discipline is the same as or the
8    equivalent to one of the grounds for discipline set forth
9    in this Act or for failing to report to the Department,
10    within 30 days, any adverse final action taken against the
11    licensee by any other licensing jurisdiction, government
12    agency, law enforcement agency, or court, or liability for
13    conduct that would constitute grounds for action as set
14    forth in this Act.
15        (6) Engaging in the practice of auctioneering,
16    conducting an auction, or providing an auction service
17    without a license or after the license was expired,
18    revoked, suspended, or terminated or while the license was
19    inoperative.
20        (7) Attempting to subvert or cheat on the auctioneer
21    exam or any continuing education exam, or aiding or
22    abetting another to do the same.
23        (8) Directly or indirectly giving to or receiving from
24    a person, firm, corporation, partnership, or association a
25    fee, commission, rebate, or other form of compensation for
26    professional service not actually or personally rendered,

 

 

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1    except that an auctioneer licensed under this Act may
2    receive a fee from another licensed auctioneer from this
3    State or jurisdiction for the referring of a client or
4    prospect for auction services to the licensed auctioneer.
5        (9) Making any substantial misrepresentation or
6    untruthful advertising.
7        (10) Making any false promises of a character likely
8    to influence, persuade, or induce.
9        (11) Pursuing a continued and flagrant course of
10    misrepresentation or the making of false promises through
11    a licensee, agent, employee, advertising, or otherwise.
12        (12) Any misleading or untruthful advertising, or
13    using any trade name or insignia of membership in any
14    auctioneer association or organization of which the
15    licensee is not a member.
16        (13) Commingling funds of others with the licensee's
17    his or her own funds or failing to keep the funds of others
18    in an escrow or trustee account.
19        (14) Failure to account for, remit, or return any
20    moneys, property, or documents coming into the licensee's
21    his or her possession that belong to others, acquired
22    through the practice of auctioneering, conducting an
23    auction, or providing an auction service within 30 days of
24    the written request from the owner of said moneys,
25    property, or documents.
26        (15) Failure to maintain and deposit into a special

 

 

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1    account, separate and apart from any personal or other
2    business accounts, all moneys belonging to others
3    entrusted to a licensee while acting as an auctioneer,
4    auction firm, or as a temporary custodian of the funds of
5    others.
6        (16) Failure to make available to Department personnel
7    during normal business hours all escrow and trustee
8    records and related documents maintained in connection
9    with the practice of auctioneering, conducting an auction,
10    or providing an auction service within 24 hours after a
11    request from Department personnel.
12        (17) Making or filing false records or reports in the
13    licensee's his or her practice, including but not limited
14    to false records or reports filed with State agencies.
15        (18) Failing to voluntarily furnish copies of all
16    written instruments prepared by the auctioneer and signed
17    by all parties to all parties at the time of execution.
18        (19) Failing to provide information within 30 days in
19    response to a written request made by the Department.
20        (20) Engaging in any act that constitutes a violation
21    of Section 2-102, 3-103, or 3-105 of the Illinois Human
22    Rights Act.
23        (21) (Blank).
24        (22) Engaging in dishonorable, unethical, or
25    unprofessional conduct of a character likely to deceive,
26    defraud, or harm the public.

 

 

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1        (23) Offering or advertising real estate for sale or
2    lease at auction without a valid broker or managing
3    broker's license under the Real Estate License Act of
4    1983, or any successor Act, unless exempt from licensure
5    under the terms of the Real Estate License Act of 2000, or
6    any successor Act, except as provided in Section 5-32 of
7    the Real Estate License Act of 2000.
8        (24) Inability to practice the profession with
9    reasonable judgment, skill, or safety as a result of a
10    physical illness, including, but not limited to,
11    deterioration through the aging process or loss of motor
12    skill, or a mental illness, or disability.
13        (25) A pattern of practice or other behavior that
14    demonstrates incapacity or incompetence to practice under
15    this Act.
16        (26) Being named as a perpetrator in an indicated
17    report by the Department of Children and Family Services
18    under the Abused and Neglected Child Reporting Act and
19    upon proof by clear and convincing evidence that the
20    licensee has caused a child to be an abused child or a
21    neglected child as defined in the Abused and Neglected
22    Child Reporting Act.
23        (27) Inability to practice with reasonable judgment,
24    skill, or safety as a result of habitual or excessive use
25    or addiction to alcohol, narcotics, stimulants, or any
26    other chemical agent or drug.

 

 

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1        (28) Willfully failing to report an instance of
2    suspected child abuse or neglect as required by the Abused
3    and Neglected Child Reporting Act.
4    The entry of an order by a circuit court establishing that
5any person holding a license under this Act is subject to
6involuntary admission or judicial admission, as provided in
7the Mental Health and Developmental Disabilities Code,
8operates as an automatic suspension of that license. That
9person may have his or her license restored only upon the
10determination by a circuit court that the patient is no longer
11subject to involuntary admission or judicial admission and the
12issuance of an order so finding and discharging the patient
13and upon the Board's recommendation to the Department that the
14license be restored. Where circumstances so indicate, the
15Board may recommend to the Department that it require an
16examination prior to restoring a suspended license.
17    If the Department or Board finds an individual unable to
18practice because of the reasons set forth in this Section, the
19Department or Board may require that individual to submit to
20care, counseling, or treatment by physicians approved or
21designated by the Department or Board, as a condition, term,
22or restriction for continued, reinstated, or renewed licensure
23to practice; or, in lieu of care, counseling, or treatment,
24the Department may file, or the Board may recommend to the
25Department to file, a complaint to immediately suspend,
26revoke, or otherwise discipline the license of the individual.

 

 

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1An individual whose license was granted, continued,
2reinstated, renewed, disciplined or supervised subject to such
3terms, conditions, or restrictions, and who fails to comply
4with such terms, conditions, or restrictions, shall be
5referred to the Secretary for a determination as to whether
6the individual shall have his or her license suspended
7immediately, pending a hearing by the Department. If the
8Secretary immediately suspends a person's license under this
9Section, a hearing on that person's license must be convened
10by the Department within 21 days after the suspension and
11completed without appreciable delay. The Department and Board
12shall have the authority to review the subject individual's
13record of treatment and counseling regarding the impairment to
14the extent permitted by applicable federal statutes and
15regulations safeguarding the confidentiality of medical
16records.
17    An individual licensed under this Act and affected under
18this Section shall be afforded an opportunity to demonstrate
19to the Department or Board that he or she can resume practice
20in compliance with acceptable and prevailing standards under
21his or her license.
22    In enforcing this Section, the Department or Board, upon a
23showing of a possible violation, may compel an individual
24licensed to practice under this Act, or who has applied for
25licensure under this Act, to submit to a mental or physical
26examination, or both, as required by and at the expense of the

 

 

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1Department. The Department or Board may order the examining
2physician to present testimony concerning the mental or
3physical examination of the licensee or applicant. No
4information shall be excluded by reason of any common law or
5statutory privilege relating to communications between the
6licensee or applicant and the examining physician. The
7examining physicians shall be specifically designated by the
8Board or Department. The individual to be examined may have,
9at his or her own expense, another physician of his or her
10choice present during all aspects of this examination. Failure
11of an individual to submit to a mental or physical examination
12when directed shall be grounds for suspension of his or her
13license until the individual submits to the examination, if
14the Department finds that, after notice and hearing, the
15refusal to submit to the examination was without reasonable
16cause.
17(Source: P.A. 101-345, eff. 8-9-19.)
 
18    (225 ILCS 407/20-15.1 new)
19    Sec. 20-15.1. Citations.
20    (a) The Department may adopt rules to permit the issuance
21of citations to any licensee for failure to comply with the
22continuing education requirements set forth in this Act or as
23established by rule. The citation shall be issued to the
24licensee and shall contain the licensee's name and address,
25the licensee's license number, the number of required hours of

 

 

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1continuing education that have not been successfully completed
2by the licensee within the renewal period, and the penalty
3imposed, which shall not exceed $2,000. The issuance of any
4such citation shall not excuse the licensee from completing
5all continuing education required for that renewal period.
6    (b) Service of a citation shall be made in person,
7electronically, or by mail to the licensee at the licensee's
8address of record or email address of record, and must clearly
9state that if the cited licensee wishes to dispute the
10citation, they may make a written request, within 30 days
11after the citation is served, for a hearing before the
12Department. If the cited licensee does not request a hearing
13within 30 days after the citation is served, then the citation
14shall become a final, non-disciplinary order, and any fine
15imposed is due and payable within 60 days after that final
16order. If the cited licensee requests a hearing within 30 days
17after the citation is served, the Department shall afford the
18cited licensee a hearing conducted in the same manner as a
19hearing provided for in this Act for any violation of this Act
20and shall determine whether the cited licensee committed the
21violation as charged and whether the fine as levied is
22warranted. If the violation is found, any fine shall
23constitute non-public discipline and be due and payable within
2430 days after the order of the Secretary, which shall
25constitute a final order of the Department. No change in
26license status may be made by the Department until a final

 

 

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1order of the Department has been issued.
2    (c) Payment of a fine that has been assessed pursuant to
3this Section shall not constitute disciplinary action
4reportable on the Department's website or elsewhere unless a
5licensee has previously received 2 or more citations and been
6assessed 2 or more fines.
7    (d) Nothing in this Section shall prohibit or limit the
8Department from taking further action pursuant to this Act and
9rules for additional, repeated, or continuing violations.
 
10    (225 ILCS 407/20-16 new)
11    Sec. 20-16. Illegal discrimination. When there has been an
12adjudication in a civil or criminal proceeding that a licensee
13has illegally discriminated while engaged in any activity for
14which a license is required under this Act, the Department,
15upon the recommendation of the Board as to the extent of the
16suspension or revocation, shall suspend or revoke the license
17of that licensee in a timely manner, unless the adjudication
18is in the appeal process. When there has been an order in an
19administrative proceeding finding that a licensee has
20illegally discriminated while engaged in any activity for
21which a license is required under this Act, the Department,
22upon recommendation of the Board as to the nature and extent of
23the discipline, shall take one or more of the disciplinary
24actions provided for in Section 20-15 in a timely manner,
25unless the administrative order is in the appeal process.
 

 

 

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1    (225 ILCS 407/20-95)
2    (Section scheduled to be repealed on January 1, 2030)
3    Sec. 20-95. Returned checks and dishonored credit card
4charges; fine. A person who: (i) delivers a check or other
5payment to the Department that is returned to the Department
6unpaid by the financial institution upon which it is drawn; or
7(ii) presents a credit or debit card for payment that is
8invalid or expired or against which charges by the Department
9are declined or dishonored, shall pay to the Department, in
10addition to the amount already owed to the Department, a fee of
11$50. The Department shall notify the person that the his or her
12check has been returned and that the person shall pay to the
13Department by certified check or money order the amount of the
14returned check plus the $50 fee within 30 calendar days after
15the date of the notification. If, after the expiration of 30
16calendar days of the notification, the person has failed to
17submit the necessary remittance, the Department shall
18automatically terminate the license or deny the application
19without a hearing. If, after termination or denial, the person
20seeks a license, the applicant or licensee he or she shall
21petition the Department for restoration or issuance of the
22license and he or she may be subject to additional discipline
23or fines. The Secretary may waive the fines due under this
24Section in individual cases where the Secretary finds that the
25fines would be unreasonable or unnecessarily burdensome.

 

 

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1(Source: P.A. 95-572, eff. 6-1-08.)
 
2    (225 ILCS 407/20-105 new)
3    Sec. 20-105. No private right of action. Except as
4otherwise expressly provided for in this Act, nothing in this
5Act shall be construed to grant to any person a private right
6of action to enforce the provisions of this Act or the rules
7adopted under this Act.
 
8    (225 ILCS 407/30-13)
9    (Section scheduled to be repealed on January 1, 2030)
10    Sec. 30-13. The Division of Real Estate General
11Professions Dedicated Fund. Prior to January 1, 2023, all All
12of the fees, fines, and penalties collected under this Act
13shall be deposited into the General Professions Dedicated
14Fund. Prior to January 1, 2023, the The monies deposited into
15the General Professions Dedicated Fund shall be used by the
16Department, as appropriated, for the ordinary and contingent
17expenses of the Department. Monies in the General Professions
18Dedicated Fund may be invested and reinvested, with all
19earnings received from investments to be deposited into that
20Fund and used for the same purposes as fees deposited in that
21Fund.
22    Beginning on January 1, 2023, all of the fees, fines, and
23penalties collected under this Act shall be deposited into the
24Division of Real Estate General Fund. The monies deposited

 

 

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1into the Division of Real Estate General Fund shall be used by
2the Department, as appropriated, for the ordinary and
3contingent expenses of the Department. Monies in the Division
4of Real Estate General Fund may be invested and reinvested,
5with all earnings received from investments to be deposited
6into that Fund and used for the same purposes as fees deposited
7in that Fund.
8(Source: P.A. 96-730, eff. 8-25-09.)
 
9    (225 ILCS 407/30-30)
10    (Section scheduled to be repealed on January 1, 2030)
11    Sec. 30-30. Auction Advisory Board.
12    (a) There is hereby created the Auction Advisory Board.
13The Advisory Board shall consist of 7 members and shall be
14appointed by the Secretary. In making the appointments, the
15Secretary shall give due consideration to the recommendations
16by members and organizations of the industry, including but
17not limited to the Illinois State Auctioneers Association.
18Five members of the Advisory Board shall be licensed
19auctioneers, except that for the initial appointments, these
20members may be persons without a license, but who have been
21auctioneers for at least 5 years preceding their appointment
22to the Advisory Board. One member shall be a public member who
23represents the interests of consumers and who is not licensed
24under this Act or the spouse of a person licensed under this
25Act or who has any responsibility for management or formation

 

 

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1of policy of or any financial interest in the auctioneering
2profession or any other connection with the profession. One
3member shall be actively engaged in the real estate industry
4and licensed as a broker or managing broker salesperson. The
5Advisory Board shall annually elect, at its first meeting of
6the fiscal year, one of its members to serve as Chairperson.
7    (b) The members' terms shall be for 4 years and until a
8successor is appointed expire upon completion of the term. No
9member shall be reappointed to the Board for a term that would
10cause the member's his or her cumulative service to the Board
11to exceed 10 years. Appointments to fill vacancies shall be
12made by the Secretary for the unexpired portion of the term. To
13the extent practicable, the Secretary shall appoint members to
14ensure that the various geographic regions of the State are
15properly represented on the Advisory Board.
16    (c) Four Board members shall constitute a quorum. A quorum
17is required for all Board decisions. A vacancy in the
18membership of the Board shall not impair the right of a quorum
19to exercise all of the rights and perform all of the duties of
20the Board.
21    (d) Each member of the Advisory Board may shall receive a
22per diem stipend in an amount to be determined by the
23Secretary. While engaged in the performance of duties, each
24Each member shall be reimbursed for paid his or her necessary
25expenses while engaged in the performance of his or her
26duties.

 

 

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1    (e) Members of the Advisory Board shall be immune from
2suit in an action based upon any disciplinary proceedings or
3other acts performed in good faith as members of the Advisory
4Board.
5    (f) The Advisory Board shall meet as convened by the
6Department.
7    (g) The Advisory Board shall advise the Department on
8matters of licensing and education and make recommendations to
9the Department on those matters and shall hear and make
10recommendations to the Secretary on disciplinary matters that
11require a formal evidentiary hearing.
12    (h) The Secretary shall give due consideration to all
13recommendations of the Advisory Board.
14(Source: P.A. 100-886, eff. 8-14-18.)
 
15    Section 20. The Community Association Manager Licensing
16and Disciplinary Act is amended by changing Sections 10, 25,
1755, 60, and 65 as follows:
 
18    (225 ILCS 427/10)
19    (Section scheduled to be repealed on January 1, 2027)
20    Sec. 10. Definitions. As used in this Act:
21    "Address of record" means the designated street address,
22which may not be a post office box, recorded by the Department
23in the applicant's or licensee's application file or license
24file maintained by the Department.

 

 

HB5167 Engrossed- 22 -LRB102 25439 SPS 34725 b

1    "Advertise" means, but is not limited to, issuing or
2causing to be distributed any card, sign or device to any
3person; or causing, permitting or allowing any sign or marking
4on or in any building, structure, newspaper, magazine or
5directory, or on radio or television; or advertising by any
6other means designed to secure public attention, including,
7but not limited to, print, electronic, social media, and
8digital forums.
9    "Board" means the Community Association Manager Licensing
10and Disciplinary Board.
11    "Community association" means an association in which
12membership is a condition of ownership or shareholder interest
13of a unit in a condominium, cooperative, townhouse, villa, or
14other residential unit which is part of a residential
15development plan and that is authorized to impose an
16assessment, rents, or other costs that may become a lien on the
17unit or lot.
18    "Community association funds" means any assessments, fees,
19fines, or other funds collected by the community association
20manager from the community association, or its members, other
21than the compensation paid to the community association
22manager for performance of community association management
23services.
24    "Community association management firm" means a company,
25corporation, limited liability company, partnership, or other
26entity that engages in community association management

 

 

HB5167 Engrossed- 23 -LRB102 25439 SPS 34725 b

1services.
2    "Community association management services" means those
3services listed in the definition of community association
4manager in this Section.
5    "Community association manager" means an individual who:
6        (1) has an ownership interest in or is employed by a
7    community association management firm, or is directly
8    employed by or provides services as an independent
9    contractor to a community association; and
10        (2) administers for remuneration the financial,
11    administrative, maintenance, or other duties for the
12    community association, including the following services:
13            (A) collecting, controlling or disbursing funds of
14        the community association or having the authority to
15        do so;
16            (B) preparing budgets or other financial documents
17        for the community association;
18            (C) assisting in the conduct of community
19        association meetings;
20            (D) maintaining association records;
21            (E) administering association contracts or
22        procuring goods and services in accordance with the
23        declaration, bylaws, proprietary lease, declaration of
24        covenants, or other governing document of the
25        community association or at the direction of the board
26        of managers; and

 

 

HB5167 Engrossed- 24 -LRB102 25439 SPS 34725 b

1            (F) coordinating financial, administrative,
2        maintenance, or other duties called for in the
3        management contract, including individuals who are
4        direct employees of the community association.
5    "Community association manager" does not mean support
6staff, including, but not limited to bookkeepers,
7administrative assistants, secretaries, property inspectors,
8or customer service representatives.
9    "Department" means the Department of Financial and
10Professional Regulation.
11    "Designated community association manager" means a
12licensed community association manager who: (1) has an
13ownership interest in or is employed by a community
14association management firm to act as a controlling person;
15and (2) is the authorized signatory or has delegated signing
16authority for the firm on community association accounts; and
17(3) supervises, manages, and is responsible for the firm's
18community association manager activities pursuant to Section
1950 of this Act.
20    "Email address of record" means the designated email
21address recorded by the Department in the applicant's
22application file or the licensee's license file, as maintained
23by the Department.
24    "License" means the privilege conferred by the Department
25to a person that has fulfilled all requirements prerequisite
26to any type of licensure under this Act.

 

 

HB5167 Engrossed- 25 -LRB102 25439 SPS 34725 b

1    "Licensee" means any person licensed under this Act a
2community association manager or a community association
3management firm.
4    "Person" means any individual, corporation, partnership,
5limited liability company, or other legal entity.
6    "Secretary" means the Secretary of Financial and
7Professional Regulation or the Secretary's designee.
8(Source: P.A. 102-20, eff. 1-1-22.)
 
9    (225 ILCS 427/25)
10    (Section scheduled to be repealed on January 1, 2027)
11    Sec. 25. Community Association Manager Licensing and
12Disciplinary Board.
13    (a) There is hereby created the Community Association
14Manager Licensing and Disciplinary Board, which shall consist
15of 7 members appointed by the Secretary. All members must be
16residents of the State and must have resided in the State for
17at least 5 years immediately preceding the date of
18appointment. Five members of the Board must be licensees under
19this Act. Two members of the Board shall be owners of, or hold
20a shareholder's interest in, a unit in a community association
21at the time of appointment who are not licensees under this Act
22and have no direct affiliation with the community
23association's community association manager. This Board shall
24act in an advisory capacity to the Department.
25    (b) The term of each member shall be for 4 years and or

 

 

HB5167 Engrossed- 26 -LRB102 25439 SPS 34725 b

1until that member's successor is appointed. No member shall be
2reappointed to the Board for a term that would cause the
3member's cumulative service to the Board to exceed 10 years.
4Appointments to fill vacancies shall be made by the Secretary
5for the unexpired portion of the term. The Secretary shall
6remove from the Board any member whose license has become void
7or has been revoked or suspended and may remove any member of
8the Board for neglect of duty, misconduct, or incompetence. A
9member who is subject to formal disciplinary proceedings shall
10be disqualified from all Board business until the charge is
11resolved. A member also shall be disqualified from any matter
12on which the member cannot act objectively.
13    (c) Four Board members shall constitute a quorum. A quorum
14is required for all Board decisions. A vacancy in the
15membership of the Board shall not impair the right of a quorum
16to exercise all of the rights and perform all of the duties of
17the Board.
18    (d) The Board shall elect annually, at its first meeting
19of the fiscal year, a chairperson and vice chairperson.
20    (e) Each member shall be reimbursed receive reimbursement
21as set by the Governor's Travel Control Board for necessary
22expenses incurred in carrying out the duties as a Board
23member. The Board may receive a per diem stipend in an amount
24to shall be compensated as determined by the Secretary.
25    (f) The Board may recommend policies, procedures, and
26rules relevant to the administration and enforcement of this

 

 

HB5167 Engrossed- 27 -LRB102 25439 SPS 34725 b

1Act.
2    (g) Members of the Board shall be immune from suit in an
3action based upon any disciplinary proceedings or other acts
4performed in good faith as members of the Board.
5(Source: P.A. 102-20, eff. 1-1-22.)
 
6    (225 ILCS 427/55)
7    (Section scheduled to be repealed on January 1, 2027)
8    Sec. 55. Fidelity insurance; segregation of accounts.
9    (a) The designated community association manager or the
10community association management firm that employs the
11designated community association manager shall not have access
12to and disburse community association funds unless each of the
13following conditions occur:
14        (1) There is fidelity insurance in place to insure
15    against loss or theft of community association funds.
16        (2) The fidelity insurance is in the maximum amount of
17    coverage available to protect funds in the custody or
18    control of the designated community association manager or
19    community association management firm providing service to
20    the association.
21        (3) During the term and coverage period of the
22    insurance, the fidelity insurance shall cover:
23            (A) the designated community association manager;
24            (B) the community association management firm;
25            (C) all community association managers;

 

 

HB5167 Engrossed- 28 -LRB102 25439 SPS 34725 b

1            (D) all partners, officers, and employees of the
2        community association management firm; and
3            (E) the community association officers, directors,
4        and employees.
5        (4) The insurance company issuing the fidelity
6    insurance may not cancel or refuse to renew the bond
7    without giving at least 10 days' prior written notice.
8        (5) Unless an agreement between the community
9    association and the designated community association
10    manager or the community association management firm
11    provides to the contrary, a community association may
12    secure and pay for the fidelity insurance required by this
13    Section. The designated community association manager, all
14    other licensees, and the community association management
15    firm must be named as additional insured parties on the
16    community association policy. If the fidelity insurance is
17    not secured and paid for by the association, the community
18    association manager or the community association
19    management firm that secures and pays for the insurance
20    shall provide a current certificate of fidelity insurance
21    to the community association for which it provides
22    community association management services within 10 days
23    of a request for such certificate by the community
24    association for its records.
25    (b) A community association management firm that provides
26community association management services for more than one

 

 

HB5167 Engrossed- 29 -LRB102 25439 SPS 34725 b

1community association shall maintain separate, segregated
2accounts for each community association. The funds shall not,
3in any event, be commingled with the supervising community
4association manager's or community association management
5firm's funds. The funds shall not, in any event, be commingled
6with the funds of the community association manager, the
7community association management firm, or any other community
8association. The maintenance of such accounts shall be
9custodial, and such accounts shall be in the name of the
10respective community association.
11    (c) The designated community association manager or
12community association management firm shall obtain the
13appropriate general liability and errors and omissions
14insurance, as determined by the Department, to cover any
15losses or claims against a community association manager, the
16designated community association manager, or the community
17association management firm. The community association manager
18or the community association management firm shall provide a
19current certificate of general liability and errors and
20omissions insurance to the community association for which it
21provides community association management services within 10
22days of a request for such certificate by the community
23association for its records.
24    (d) The Department shall have authority to promulgate
25additional rules regarding insurance, fidelity insurance and
26all accounts maintained and to be maintained by a community

 

 

HB5167 Engrossed- 30 -LRB102 25439 SPS 34725 b

1association manager, designated community association manager,
2or community association management firm.
3(Source: P.A. 102-20, eff. 1-1-22.)
 
4    (225 ILCS 427/60)
5    (Section scheduled to be repealed on January 1, 2027)
6    Sec. 60. Licenses; renewals; restoration; person in
7military service.
8    (a) The expiration date, fees, and renewal period for each
9license issued under this Act shall be set by rule. The
10Department may promulgate rules requiring continuing education
11and set all necessary requirements for such, including but not
12limited to fees, approved coursework, number of hours, and
13waivers of continuing education.
14    (b) Any licensee who has an expired license may have the
15license restored by applying to the Department and filing
16proof acceptable to the Department of fitness to have the
17expired license restored, by which may include sworn evidence
18certifying to active practice in another jurisdiction
19satisfactory to the Department, complying with any continuing
20education requirements, and paying the required restoration
21fee.
22    (c) Any person whose license expired while (i) in federal
23service on active duty with the Armed Forces of the United
24States or called into service or training with the State
25Militia or (ii) in training or education under the supervision

 

 

HB5167 Engrossed- 31 -LRB102 25439 SPS 34725 b

1of the United States preliminary to induction into the
2military service may have the license renewed or restored
3without paying any lapsed renewal fees if, within 2 years
4after honorable termination of the service, training or
5education, except under condition other than honorable, the
6licensee furnishes the Department with satisfactory evidence
7of engagement and that the service, training, or education has
8been so honorably terminated.
9    (d) A community association manager or community
10association management firm that notifies the Department, in a
11manner prescribed by the Department, may place the license on
12inactive status for a period not to exceed 2 years and shall be
13excused from the payment of renewal fees until the person
14notifies the Department in writing of the intention to resume
15active practice.
16    (e) A community association manager or , community
17association management firm requesting that the license be
18changed from inactive to active status shall be required to
19pay the current renewal fee and shall also demonstrate
20compliance with the continuing education requirements.
21    (f) No licensee with a nonrenewed or inactive license
22status or community association management firm operating
23operation without a designated community association manager
24shall provide community association management services as set
25forth in this Act.
26    (g) Any person violating subsection (f) of this Section

 

 

HB5167 Engrossed- 32 -LRB102 25439 SPS 34725 b

1shall be considered to be practicing without a license and
2will be subject to the disciplinary provisions of this Act.
3    (h) The Department shall not renew a license if the
4licensee has an unpaid fine or fee from a disciplinary matter
5or an unpaid fee from a non-disciplinary action imposed by the
6Department until the fine or fee is paid to the Department or
7the licensee has entered into a payment plan and is current on
8the required payments.
9    (i) The Department shall not issue a license if the
10applicant has an unpaid fine imposed by the Department for
11unlicensed practice until the fine is paid to the Department
12or the applicant has entered into a payment plan and is current
13on the required payments.
14(Source: P.A. 102-20, eff. 1-1-22.)
 
15    (225 ILCS 427/65)
16    (Section scheduled to be repealed on January 1, 2027)
17    Sec. 65. Fees; Division of Real Estate General Community
18Association Manager Licensing and Disciplinary Fund.
19    (a) The fees for the administration and enforcement of
20this Act, including, but not limited to, initial licensure,
21renewal, and restoration, shall be set by rule of the
22Department. The fees shall be nonrefundable.
23    (b) In addition to the application fee, applicants for the
24examination are required to pay, either to the Department or
25the designated testing service, a fee covering the cost of

 

 

HB5167 Engrossed- 33 -LRB102 25439 SPS 34725 b

1determining an applicant's eligibility and providing the
2examination. Failure to appear for the examination on the
3scheduled date, at the time and place specified, after the
4applicant's application and fee for examination have been
5received and acknowledged by the Department or the designated
6testing service, shall result in the forfeiture of the fee.
7    (c) Prior to January 1, 2023, all All fees, fines,
8penalties, or other monies received or collected pursuant to
9this Act shall be deposited in the Community Association
10Manager Licensing and Disciplinary Fund. Beginning on January
111, 2023, all fees, fines, penalties, or other monies received
12or collected pursuant to this Act shall be deposited in the
13Division of Real Estate General Fund.
14    (d) Moneys in the Community Association Manager Licensing
15and Disciplinary Fund and the Division of Real Estate General
16Fund may be transferred to the Professions Indirect Cost Fund,
17as authorized under Section 2105-300 of the Department of
18Professional Regulation Law of the Civil Administrative Code
19of Illinois.
20    (e) Notwithstanding any other provision of law, in
21addition to any other transfers that may be provided by law, on
22January 1, 2023, or as soon thereafter as practical, the State
23Comptroller shall direct and the State Treasurer shall
24transfer the remaining balance from the Community Association
25Manager Licensing and Disciplinary Fund into the Division of
26Real Estate General Fund. Upon completion of the transfer, the

 

 

HB5167 Engrossed- 34 -LRB102 25439 SPS 34725 b

1Community Association Manager Licensing and Disciplinary Fund
2is dissolved, and any future deposits due to that Fund and any
3outstanding obligations or liabilities of that Fund pass to
4the Division of Real Estate General Fund.
5(Source: P.A. 102-20, eff. 1-1-22.)
 
6    Section 25. The Home Inspector License Act is amended by
7changing Sections 1-10, 5-16, 5-17, 15-5, and 25-5 and by
8adding Section 15-11 as follows:
 
9    (225 ILCS 441/1-10)
10    (Section scheduled to be repealed on January 1, 2027)
11    Sec. 1-10. Definitions. As used in this Act, unless the
12context otherwise requires:
13    "Address of record" means the designated street address,
14which may not be a post office box, recorded by the Department
15in the applicant's or licensee's application file or license
16file as maintained by the Department.
17    "Applicant" means a person who applies to the Department
18for a license under this Act.
19    "Client" means a person who engages or seeks to engage the
20services of a home inspector for an inspection assignment.
21    "Department" means the Department of Financial and
22Professional Regulation.
23    "Email address of record" means the designated email
24address recorded by the Department in the applicant's

 

 

HB5167 Engrossed- 35 -LRB102 25439 SPS 34725 b

1application file or the licensee's license file, as maintained
2by the Department.
3    "Home inspection" means the examination and evaluation of
4the exterior and interior components of residential real
5property, which includes the inspection of any 2 or more of the
6following components of residential real property in
7connection with or to facilitate the sale, lease, or other
8conveyance of, or the proposed sale, lease or other conveyance
9of, residential real property:
10        (1) heating, ventilation, and air conditioning system;
11        (2) plumbing system;
12        (3) electrical system;
13        (4) structural composition;
14        (5) foundation;
15        (6) roof;
16        (7) masonry structure; or
17        (8) any other residential real property component as
18    established by rule.
19    "Home inspector" means a person or entity who, for another
20and for compensation either direct or indirect, performs home
21inspections.
22    "Home inspection report" or "inspection report" means a
23written evaluation prepared and issued by a home inspector
24upon completion of a home inspection, which meets the
25standards of practice as established by the Department.
26    "Inspection assignment" means an engagement for which a

 

 

HB5167 Engrossed- 36 -LRB102 25439 SPS 34725 b

1home inspector is employed or retained to conduct a home
2inspection and prepare a home inspection report.
3    "License" means the privilege conferred by the Department
4to a person who has fulfilled all requirements prerequisite to
5any type of licensure under this Act.
6    "Licensee" means any person licensed under this Act a home
7inspector, home inspector entity, or home inspector education
8provider.
9    "Person" means individuals, entities, corporations,
10limited liability companies, registered limited liability
11partnerships, and partnerships, foreign or domestic, except
12that when the context otherwise requires, the term may refer
13to a single individual or other described entity.
14    "Residential real property" means real property that is
15used or intended to be used as a residence by one or more
16individuals.
17    "Secretary" means the Secretary of Financial and
18Professional Regulation or the Secretary's designee.
19    "Standards of practice" means recognized standards to be
20used in a home inspection, as determined by the Department and
21established by rule.
22(Source: P.A. 102-20, eff. 1-1-22.)
 
23    (225 ILCS 441/5-16)
24    (Section scheduled to be repealed on January 1, 2027)
25    Sec. 5-16. Renewal of license.

 

 

HB5167 Engrossed- 37 -LRB102 25439 SPS 34725 b

1    (a) The expiration date and renewal period for a home
2inspector license issued under this Act shall be set by rule.
3Except as otherwise provided in subsections (b) and (c) of
4this Section, the holder of a license may renew the license
5within 90 days preceding the expiration date by:
6        (1) completing and submitting to the Department a
7    renewal application in a manner prescribed by the
8    Department;
9        (2) paying the required fees; and
10        (3) providing evidence of successful completion of the
11    continuing education requirements through courses approved
12    by the Department given by education providers licensed by
13    the Department, as established by rule.
14    (b) A home inspector whose license under this Act has
15expired may renew the license for a period of 2 years following
16the expiration date by complying with the requirements of
17subparagraphs (1), (2), and (3) of subsection (a) of this
18Section and paying any late penalties established by rule.
19    (c) Notwithstanding subsection (b), a home inspector whose
20license under this Act has expired may renew the license
21without paying any lapsed renewal fees or late penalties if
22(i) the license expired while the home inspector was on active
23duty with the United States Armed Services, (ii) application
24for renewal is made within 2 years following the termination
25of the military service or related education, training, or
26employment, and (iii) the applicant furnishes to the

 

 

HB5167 Engrossed- 38 -LRB102 25439 SPS 34725 b

1Department an affidavit that the applicant was so engaged.
2    (d) The Department shall provide reasonable care and due
3diligence to ensure that each licensee under this Act is
4provided a renewal application at least 90 days prior to the
5expiration date, but it is the responsibility of each licensee
6to renew the license prior to its expiration date.
7    (e) The Department shall not renew a license if the
8licensee has an unpaid fine or fee from a disciplinary matter
9or from a non-disciplinary action imposed by the Department
10until the fine or fee is paid to the Department or the licensee
11has entered into a payment plan and is current on the required
12payments.
13    (f) 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. 102-20, eff. 1-1-22.)
 
19    (225 ILCS 441/5-17)
20    (Section scheduled to be repealed on January 1, 2027)
21    Sec. 5-17. Renewal of home inspector license; entity.
22    (a) The expiration date and renewal period for a home
23inspector license for an entity that is not a natural person
24shall be set by rule. The holder of a license may renew the
25license within 90 days preceding the expiration date by

 

 

HB5167 Engrossed- 39 -LRB102 25439 SPS 34725 b

1completing and submitting to the Department a renewal
2application in a manner prescribed by the Department and
3paying the required fees.
4    (b) An entity that is not a natural person whose license
5under this Act has expired may renew the license for a period
6of 2 years following the expiration date by complying with the
7requirements of subsection (a) of this Section and paying any
8late penalties established by rule.
9    (c) The Department shall not renew a license if the
10licensee has an unpaid fine or fee from a disciplinary matter
11or from a non-disciplinary action imposed by the Department
12until the fine or fee is paid to the Department or the licensee
13has entered into a payment plan and is current on the required
14payments.
15    (d) The Department shall not issue a license if the
16applicant has an unpaid fine imposed by the Department for
17unlicensed practice until the fine is paid to the Department
18or the applicant has entered into a payment plan and is current
19on the required payments.
20(Source: P.A. 102-20, eff. 1-1-22.)
 
21    (225 ILCS 441/15-5)
22    (Section scheduled to be repealed on January 1, 2027)
23    Sec. 15-5. Unlicensed practice; civil penalty.
24    (a) Any person who practices, offers to practice, attempts
25to practice, or holds oneself himself or herself out to

 

 

HB5167 Engrossed- 40 -LRB102 25439 SPS 34725 b

1practice home inspection or as a home inspector without being
2licensed under this Act shall, in addition to any other
3penalty provided by law, pay a civil penalty to the Department
4in an amount not to exceed $25,000 for each violation of this
5Act as determined by the Department. The civil penalty shall
6be assessed by the Department after a hearing is held in
7accordance with the provisions of this Act.
8    (b) The Department has the authority and power to
9investigate any unlicensed activity.
10    (c) A civil penalty shall be paid within 60 days after the
11effective date of the order imposing the civil penalty. The
12Department may petition the circuit court for a judgment to
13enforce the collection of the penalty. Prior to January 1,
142023, any Any civil penalties collected under this Act shall
15be made payable to the Department and deposited into the Home
16Inspector Administration Fund. Beginning on January 1, 2023,
17any civil penalties collected under this Act shall be made
18payable to the Department and deposited into the Division of
19Real Estate General Fund.
20(Source: P.A. 97-226, eff. 7-28-11.)
 
21    (225 ILCS 441/15-11 new)
22    Sec. 15-11. Illegal discrimination. When there has been an
23adjudication in a civil or criminal proceeding that a licensee
24has illegally discriminated while engaged in any activity for
25which a license is required under this Act, the Department,

 

 

HB5167 Engrossed- 41 -LRB102 25439 SPS 34725 b

1upon the recommendation of the Board as to the extent of the
2suspension or revocation, shall suspend or revoke the license
3of that licensee in a timely manner, unless the adjudication
4is in the appeal process. When there has been an order in an
5administrative proceeding finding that a licensee has
6illegally discriminated while engaged in any activity for
7which a license is required under this Act, the Department,
8upon recommendation of the Board as to the nature and extent of
9the discipline, shall take one or more of the disciplinary
10actions provided for in Section 15-10 of this Act in a timely
11manner, unless the administrative order is in the appeal
12process.
 
13    (225 ILCS 441/25-5)
14    (Section scheduled to be repealed on January 1, 2027)
15    Sec. 25-5. Division of Real Estate General Home Inspector
16Administration Fund; surcharge.
17    (a) The Home Inspector Administration Fund is created as a
18special fund in the State Treasury. Prior to January 1, 2023,
19all All fees, fines, and penalties received by the Department
20under this Act shall be deposited into the Home Inspector
21Administration Fund. All earnings attributable to investment
22of funds in the Home Inspector Administration Fund shall be
23credited to the Home Inspector Administration Fund. Subject to
24appropriation, the moneys in the Home Inspector Administration
25Fund shall be appropriated to the Department for the expenses

 

 

HB5167 Engrossed- 42 -LRB102 25439 SPS 34725 b

1incurred by the Department in the administration of this Act.
2    (a-5) The Division of Real Estate General Fund is created
3as a special fund in the State Treasury. Beginning on January
41, 2023, all fees, fines, and penalties received by the
5Department under this Act shall be deposited into the Division
6of Real Estate General Fund. All earnings attributable to
7investment of funds in the Division of Real Estate General
8Fund shall be credited to the Division of Real Estate General
9Fund. Subject to appropriation, the moneys in the Division of
10Real Estate General Fund shall be appropriated to the
11Department for the expenses incurred by the Department in the
12administration of this Act.
13    (b) (Blank).
14    (c) (Blank).
15    (c-5) Moneys in the Home Inspection Administration Fund
16and the Division of Real Estate General Fund may be
17transferred to the Professions Indirect Cost Fund, as
18authorized under Section 2105-300 of the Department of
19Professional Regulation Law of the Civil Administrative Code
20of Illinois.
21    (d) Upon the completion of any audit of the Department, as
22prescribed by the Illinois State Auditing Act, that includes
23an audit of the Home Inspector Administration Fund or the
24Division of Real Estate General Fund, the Department shall
25make the audit report open to inspection by any interested
26person.

 

 

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1    (e) Notwithstanding any other provision of law, in
2addition to any other transfers that may be provided by law, on
3January 1, 2023, or as soon thereafter as practical, the State
4Comptroller shall direct and the State Treasurer shall
5transfer the remaining balance from the Home Inspector
6Administration Fund into the Division of Real Estate General
7Fund. Upon completion of the transfer, the Home Inspector
8Administration Fund is dissolved, and any future deposits due
9to that Fund and any outstanding obligations or liabilities of
10that Fund pass to the Division of Real Estate General Fund.
11(Source: P.A. 97-226, eff. 7-28-11.)
 
12    Section 30. The Real Estate License Act of 2000 is amended
13by changing Sections 1-10, 5-10, 5-25, 5-45, 5-50, 5-70,
1415-35, 15-45, 20-20, 20-20.1, 20-69, 20-75, 20-110, 25-10,
1530-15, and 30-25 and by adding Section 25-38 as follows:
 
16    (225 ILCS 454/1-10)
17    (Section scheduled to be repealed on January 1, 2030)
18    Sec. 1-10. Definitions. In this Act, unless the context
19otherwise requires:
20    "Act" means the Real Estate License Act of 2000.
21    "Address of record" means the designated address recorded
22by the Department in the applicant's or licensee's application
23file or license file as maintained by the Department.
24    "Agency" means a relationship in which a broker or

 

 

HB5167 Engrossed- 44 -LRB102 25439 SPS 34725 b

1licensee, whether directly or through an affiliated licensee,
2represents a consumer by the consumer's consent, whether
3express or implied, in a real property transaction.
4    "Applicant" means any person, as defined in this Section,
5who applies to the Department for a valid license as a managing
6broker, broker, or residential leasing agent.
7    "Blind advertisement" means any real estate advertisement
8that is used by a licensee regarding the sale or lease of real
9estate, licensed activities, or the hiring of any licensee
10under this Act that does not include the sponsoring broker's
11complete business name or, in the case of electronic
12advertisements, does not provide a direct link to a display
13with all the required disclosures. The broker's business name
14in the case of a franchise shall include the franchise
15affiliation as well as the name of the individual firm.
16    "Board" means the Real Estate Administration and
17Disciplinary Board of the Department as created by Section
1825-10 of this Act.
19    "Broker" means an individual, entity, corporation, foreign
20or domestic partnership, limited liability company, registered
21limited liability partnership, or other business entity other
22than a residential leasing agent who, whether in person or
23through any media or technology, for another and for
24compensation, or with the intention or expectation of
25receiving compensation, either directly or indirectly:
26        (1) Sells, exchanges, purchases, rents, or leases real

 

 

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1    estate.
2        (2) Offers to sell, exchange, purchase, rent, or lease
3    real estate.
4        (3) Negotiates, offers, attempts, or agrees to
5    negotiate the sale, exchange, purchase, rental, or leasing
6    of real estate.
7        (4) Lists, offers, attempts, or agrees to list real
8    estate for sale, rent, lease, or exchange.
9        (5) Whether for another or themselves, engages in a
10    pattern of business of buying, selling, offering to buy or
11    sell, marketing for sale, exchanging, or otherwise dealing
12    in contracts, including assignable contracts for the
13    purchase or sale of, or options on real estate or
14    improvements thereon. For purposes of this definition, an
15    individual or entity will be found to have engaged in a
16    pattern of business if the individual or entity by itself
17    or with any combination of other individuals or entities,
18    whether as partners or common owners in another entity,
19    has engaged in one or more of these practices on 2 or more
20    occasions in any 12-month period.
21        (6) Supervises the collection, offer, attempt, or
22    agreement to collect rent for the use of real estate.
23        (7) Advertises or represents oneself himself or
24    herself as being engaged in the business of buying,
25    selling, exchanging, renting, or leasing real estate.
26        (8) Assists or directs in procuring or referring of

 

 

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

 

 

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1on comparable sales. The activities of a real estate broker or
2managing broker engaging in the ordinary course of business as
3a broker, as defined in this Section, shall not be considered a
4broker price opinion if no compensation is paid to the broker
5or managing broker, other than compensation based upon the
6sale or rental of real estate. A broker price opinion shall not
7be considered an appraisal within the meaning of the Real
8Estate Appraiser Licensing Act of 2002, any amendment to that
9Act, or any successor Act.
10    "Client" means a person who is being represented by a
11licensee.
12    "Comparative market analysis" means an analysis or opinion
13regarding pricing, marketing, or financial aspects relating to
14a specified interest or interests in real estate that may be
15based upon an analysis of comparative market data, the
16expertise of the real estate broker or managing broker, and
17such other factors as the broker or managing broker may deem
18appropriate in developing or preparing such analysis or
19opinion. The activities of a real estate broker or managing
20broker engaging in the ordinary course of business as a
21broker, as defined in this Section, shall not be considered a
22comparative market analysis if no compensation is paid to the
23broker or managing broker, other than compensation based upon
24the sale or rental of real estate. A comparative market
25analysis shall not be considered an appraisal within the
26meaning of the Real Estate Appraiser Licensing Act of 2002,

 

 

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

 

 

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

 

 

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1sponsoring broker as the legal agent of a client, as provided
2for in Section 15-50 of this Act.
3    "Designated managing broker" means a managing broker who
4has supervisory responsibilities for licensees in one or, in
5the case of a multi-office company, more than one office and
6who has been appointed as such by the sponsoring broker
7registered with the Department.
8    "Director" means the Director of Real Estate within the
9Department of Financial and Professional Regulation.
10    "Dual agency" means an agency relationship in which a
11licensee is representing both buyer and seller or both
12landlord and tenant in the same transaction. When the agency
13relationship is a designated agency, the question of whether
14there is a dual agency shall be determined by the agency
15relationships of the designated agent of the parties and not
16of the sponsoring broker.
17    "Education provider" means a school licensed by the
18Department offering courses in pre-license, post-license, or
19continuing education required by this Act.
20    "Employee" or other derivative of the word "employee",
21when used to refer to, describe, or delineate the relationship
22between a sponsoring broker and a managing broker, broker, or
23a residential leasing agent, shall be construed to include an
24independent contractor relationship, provided that a written
25agreement exists that clearly establishes and states the
26relationship.

 

 

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1    "Escrow moneys" means all moneys, promissory notes or any
2other type or manner of legal tender or financial
3consideration deposited with any person for the benefit of the
4parties to the transaction. A transaction exists once an
5agreement has been reached and an accepted real estate
6contract signed or lease agreed to by the parties. Escrow
7moneys includes without limitation earnest moneys and security
8deposits, except those security deposits in which the person
9holding the security deposit is also the sole owner of the
10property being leased and for which the security deposit is
11being held.
12    "Electronic means of proctoring" means a methodology
13providing assurance that the person taking a test and
14completing the answers to questions is the person seeking
15licensure or credit for continuing education and is doing so
16without the aid of a third party or other device.
17    "Exclusive brokerage agreement" means a written brokerage
18agreement that provides that the sponsoring broker has the
19sole right, through one or more sponsored licensees, to act as
20the exclusive agent or representative of the client and that
21meets the requirements of Section 15-75 of this Act.
22    "Inactive" means a status of licensure where the licensee
23holds a current license under this Act, but the licensee is
24prohibited from engaging in licensed activities because the
25licensee is unsponsored or the license of the sponsoring
26broker with whom the licensee is associated or by whom the

 

 

HB5167 Engrossed- 52 -LRB102 25439 SPS 34725 b

1licensee he or she is employed is currently expired, revoked,
2suspended, or otherwise rendered invalid under this Act. The
3license of any business entity that is not in good standing
4with the Illinois Secretary of State, or is not authorized to
5conduct business in Illinois, shall immediately become
6inactive and that entity shall be prohibited from engaging in
7any licensed activities.
8    "Leads" means the name or names of a potential buyer,
9seller, lessor, lessee, or client of a licensee.
10    "License" means the privilege conferred by the Department
11to a person that has fulfilled all requirements prerequisite
12to any type of licensure under this Act.
13    "Licensed activities" means those activities listed in the
14definition of "broker" under this Section.
15    "Licensee" means any person licensed under this Act , as
16defined in this Section, who holds a valid unexpired license
17as a managing broker, broker, or residential leasing agent.
18    "Listing presentation" means any communication, written or
19oral and by any means or media, between a managing broker or
20broker and a consumer in which the licensee is attempting to
21secure a brokerage agreement with the consumer to market the
22consumer's real estate for sale or lease.
23    "Managing broker" means a licensee who may be authorized
24to assume responsibilities as a designated managing broker for
25licensees in one or, in the case of a multi-office company,
26more than one office, upon appointment by the sponsoring

 

 

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1broker and registration with the Department. A managing broker
2may act as one's his or her own sponsor.
3    "Medium of advertising" means any method of communication
4intended to influence the general public to use or purchase a
5particular good or service or real estate, including, but not
6limited to, print, electronic, social media, and digital
7forums.
8    "Office" means a broker's place of business where the
9general public is invited to transact business and where
10records may be maintained and licenses readily available
11displayed, whether or not it is the broker's principal place
12of business.
13    "Person" means and includes individuals, entities,
14corporations, limited liability companies, registered limited
15liability partnerships, foreign and domestic partnerships, and
16other business entities, except that when the context
17otherwise requires, the term may refer to a single individual
18or other described entity.
19    "Proctor" means any person, including, but not limited to,
20an instructor, who has a written agreement to administer
21examinations fairly and impartially with a licensed education
22provider.
23    "Real estate" means and includes leaseholds as well as any
24other interest or estate in land, whether corporeal,
25incorporeal, freehold, or non-freehold and whether the real
26estate is situated in this State or elsewhere. "Real estate"

 

 

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1does not include property sold, exchanged, or leased as a
2timeshare or similar vacation item or interest, vacation club
3membership, or other activity formerly regulated under the
4Real Estate Timeshare Act of 1999 (repealed).
5    "Regular employee" means a person working an average of 20
6hours per week for a person or entity who would be considered
7as an employee under the Internal Revenue Service rules for
8classifying workers.
9    "Renewal period" means the period beginning 90 days prior
10to the expiration date of a license.
11    "Residential leasing agent" means a person who is employed
12by a broker to engage in licensed activities limited to
13leasing residential real estate who has obtained a license as
14provided for in Section 5-5 of this Act.
15    "Secretary" means the Secretary of the Department of
16Financial and Professional Regulation, or a person authorized
17by the Secretary to act in the Secretary's stead.
18    "Sponsoring broker" means the broker who certifies to the
19Department his, her, or its sponsorship of a licensed managing
20broker, broker, or a residential leasing agent.
21    "Sponsorship" means that a sponsoring broker has certified
22to the Department that a managing broker, broker, or
23residential leasing agent named thereon is employed by or
24associated by written agreement with the sponsoring broker and
25the Department has registered the sponsorship, as provided for
26in Section 5-40 of this Act.

 

 

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1    "Team" means any 2 or more licensees who work together to
2provide real estate brokerage services, represent themselves
3to the public as being part of a team or group, are identified
4by a team name that is different than their sponsoring
5broker's name, and together are supervised by the same
6managing broker and sponsored by the same sponsoring broker.
7"Team" does not mean a separately organized, incorporated, or
8legal entity.
9(Source: P.A. 100-188, eff. 1-1-18; 100-534, eff. 9-22-17;
10100-831, eff. 1-1-19; 100-863, eff. 8-14-18; 101-357, eff.
118-9-19.)
 
12    (225 ILCS 454/5-10)
13    (Section scheduled to be repealed on January 1, 2030)
14    Sec. 5-10. Requirements for license as a residential
15leasing agent; continuing education.
16    (a) Every applicant for licensure as a residential leasing
17agent must meet the following qualifications:
18        (1) be at least 18 years of age;
19        (2) be of good moral character;
20        (3) successfully complete a 4-year course of study in
21    a high school or secondary school or an equivalent course
22    of study approved by the state in which the school is
23    located, or possess a high school equivalency certificate,
24    which shall be verified under oath by the applicant;
25        (4) personally take and pass a written examination

 

 

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1    authorized by the Department sufficient to demonstrate the
2    applicant's knowledge of the provisions of this Act
3    relating to residential leasing agents and the applicant's
4    competence to engage in the activities of a licensed
5    residential leasing agent;
6        (5) provide satisfactory evidence of having completed
7    15 hours of instruction in an approved course of study
8    relating to the leasing of residential real property. The
9    Board may recommend to the Department the number of hours
10    each topic of study shall require. The course of study
11    shall, among other topics, cover the provisions of this
12    Act applicable to residential leasing agents; fair housing
13    and human rights issues relating to residential leasing;
14    advertising and marketing issues; leases, applications,
15    and credit and criminal background reports; owner-tenant
16    relationships and owner-tenant laws; the handling of
17    funds; and environmental issues relating to residential
18    real property;
19        (6) complete any other requirements as set forth by
20    rule; and
21        (7) present a valid application for issuance of an
22    initial license accompanied by fees specified by rule.
23    (b) No applicant shall engage in any of the activities
24covered by this Act without a valid license and until a valid
25sponsorship has been registered with the Department.
26    (c) Successfully completed course work, completed pursuant

 

 

HB5167 Engrossed- 57 -LRB102 25439 SPS 34725 b

1to the requirements of this Section, may be applied to the
2course work requirements to obtain a managing broker's or
3broker's license as provided by rule. The Board may recommend
4to the Department and the Department may adopt requirements
5for approved courses, course content, and the approval of
6courses, instructors, and education providers, as well as
7education provider and instructor fees. The Department may
8establish continuing education requirements for residential
9licensed leasing agents, by rule, consistent with the language
10and intent of this Act, with the advice of the Board.
11    (d) The continuing education requirement for residential
12leasing agents shall consist of a single core curriculum to be
13prescribed by the Department as recommended by the Board.
14Leasing agents shall be required to complete no less than 8
15hours of continuing education in the core curriculum during
16the current term of the license for each 2-year renewal
17period. The curriculum shall, at a minimum, consist of a
18single course or courses on the subjects of fair housing and
19human rights issues related to residential leasing,
20advertising and marketing issues, leases, applications, credit
21reports, and criminal history, the handling of funds,
22owner-tenant relationships and owner-tenant laws, and
23environmental issues relating to residential real estate.
24(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)
 
25    (225 ILCS 454/5-25)

 

 

HB5167 Engrossed- 58 -LRB102 25439 SPS 34725 b

1    (Section scheduled to be repealed on January 1, 2030)
2    Sec. 5-25. Good moral character.
3    (a) When an applicant has had a his or her license revoked
4on a prior occasion or when an applicant is found to have
5committed any of the practices enumerated in Section 20-20 of
6this Act or when an applicant has been convicted of or enters a
7plea of guilty or nolo contendere to forgery, embezzlement,
8obtaining money under false pretenses, larceny, extortion,
9conspiracy to defraud, or any other similar offense or
10offenses or has been convicted of a felony involving moral
11turpitude in any court of competent jurisdiction in this or
12any other state, district, or territory of the United States
13or of a foreign country, the Board may consider the prior
14revocation, conduct, or conviction in its determination of the
15applicant's moral character and whether to grant the applicant
16a license.
17    (b) In its consideration of the prior revocation, conduct,
18or conviction, the Board shall take into account the nature of
19the conduct, any aggravating or extenuating circumstances, the
20time elapsed since the revocation, conduct, or conviction, the
21rehabilitation or restitution performed by the applicant,
22mitigating factors, and any other factors that the Board deems
23relevant, including, but not limited to:
24        (1) the lack of direct relation of the offense for
25    which the applicant was previously convicted to the
26    duties, functions, and responsibilities of the position

 

 

HB5167 Engrossed- 59 -LRB102 25439 SPS 34725 b

1    for which a license is sought;
2        (2) unless otherwise specified, whether 5 years since
3    a felony conviction or 3 years since release from
4    confinement for the conviction, whichever is later, have
5    passed without a subsequent conviction;
6        (3) if the applicant was previously licensed or
7    employed in this State or other states or jurisdictions,
8    the lack of prior misconduct arising from or related to
9    the licensed position or position of employment;
10        (4) the age of the person at the time of the criminal
11    offense;
12        (5) if, due to the applicant's criminal conviction
13    history, the applicant would be explicitly prohibited by
14    federal rules or regulations from working in the position
15    for which a license is sought;
16        (6) successful completion of sentence and, for
17    applicants serving a term of parole or probation, a
18    progress report provided by the applicant's probation or
19    parole officer that documents the applicant's compliance
20    with conditions of supervision;
21        (7) evidence of the applicant's present fitness and
22    professional character;
23        (8) evidence of rehabilitation or rehabilitative
24    effort during or after incarceration, or during or after a
25    term of supervision, including, but not limited to, a
26    certificate of good conduct under Section 5-5.5-25 of the

 

 

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1    Unified Code of Corrections or a certificate of relief
2    from disabilities under Section 5-5.5-10 of the Unified
3    Code of Corrections; and
4        (9) any other mitigating factors that contribute to
5    the person's potential and current ability to perform the
6    job duties.
7    (c) The Department shall not require applicants to report
8the following information and shall not consider the following
9criminal history records in connection with an application for
10licensure or registration:
11        (1) juvenile adjudications of delinquent minors as
12    defined in Section 5-105 of the Juvenile Court Act of 1987
13    subject to the restrictions set forth in Section 5-130 of
14    that Act;
15        (2) law enforcement records, court records, and
16    conviction records of an individual who was 17 years old
17    at the time of the offense and before January 1, 2014,
18    unless the nature of the offense required the individual
19    to be tried as an adult;
20        (3) records of arrests not followed by a charge or
21    conviction;
22        (4) records of arrests where the charges were
23    dismissed unless related to the practice of the
24    profession; however, applicants shall not be asked to
25    report any arrests, and an arrest not followed by a
26    conviction shall not be the basis of a denial and may be

 

 

HB5167 Engrossed- 61 -LRB102 25439 SPS 34725 b

1    used only to assess an applicant's rehabilitation;
2        (5) convictions overturned by a higher court; or
3        (6) convictions or arrests that have been sealed or
4    expunged.
5    (d) If an applicant makes a false statement of material
6fact on the his or her application, the false statement may in
7itself be sufficient grounds to revoke or refuse to issue a
8license.
9    (e) A licensee shall report to the Department, in a manner
10prescribed by the Department and within 30 days after the
11occurrence of: (1) any conviction of or adopted by rule, any
12plea of guilty, or nolo contendere to forgery, embezzlement,
13obtaining money under false pretenses, larceny, extortion,
14conspiracy to defraud, or any similar offense or offenses or
15any conviction of a felony involving moral turpitude; (2) the
16entry of an administrative sanction by a government agency in
17this State or any other jurisdiction that has as an essential
18element dishonesty or fraud or involves larceny, embezzlement,
19or obtaining money, property, or credit by false pretenses; or
20(3) any crime that subjects the licensee to compliance with
21the requirements of the Sex Offender Registration Act that
22occurs during the licensee's term of licensure.
23(Source: P.A. 101-357, eff. 8-9-19.)
 
24    (225 ILCS 454/5-45)
25    (Section scheduled to be repealed on January 1, 2030)

 

 

HB5167 Engrossed- 62 -LRB102 25439 SPS 34725 b

1    Sec. 5-45. Offices.
2    (a) If a sponsoring broker maintains more than one office
3within the State, the sponsoring broker shall notify the
4Department in a manner prescribed by the Department for each
5office other than the sponsoring broker's principal place of
6business. The brokerage license shall be displayed
7conspicuously in each office. The name of each branch office
8shall be the same as that of the sponsoring broker's principal
9office or shall clearly delineate the office's relationship
10with the principal office.
11    (b) The sponsoring broker shall name a designated managing
12broker for each office and the sponsoring broker shall be
13responsible for supervising all designated managing brokers.
14The sponsoring broker shall notify the Department in a manner
15prescribed by the Department of the name of all designated
16managing brokers of the sponsoring broker and the office or
17offices they manage. Any changes in designated managing
18brokers shall be reported to the Department in a manner
19prescribed by the Department within 15 days of the change.
20Failure to do so shall subject the sponsoring broker to
21discipline under Section 20-20 of this Act.
22    (c) The sponsoring broker shall, within 24 hours, notify
23the Department in a manner prescribed by the Department of any
24opening, closing, or change in location of any office.
25    (d) Except as provided in this Section, each sponsoring
26broker shall maintain an office, or place of business within

 

 

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1this State for the transaction of real estate business, shall
2conspicuously display an identification sign on the outside of
3the his or her physical office of adequate size and
4visibility. Any record required by this Act to be created or
5maintained shall be, in the case of a physical record,
6securely stored and accessible for inspection by the
7Department at the sponsoring broker's principal office and, in
8the case of an electronic record, securely stored in the
9format in which it was originally generated, sent, or received
10and accessible for inspection by the Department by secure
11electronic access to the record. Any record relating to a
12transaction of a special account shall be maintained for a
13minimum of 5 years, and any electronic record shall be backed
14up at least monthly. The office or place of business shall not
15be located in any retail or financial business establishment
16unless it is clearly separated from the other business and is
17situated within a distinct area within the establishment.
18    (e) A broker who is licensed in this State by examination
19or pursuant to the provisions of Section 5-60 of this Act shall
20not be required to maintain a definite office or place of
21business in this State provided all of the following
22conditions are met:
23        (1) the broker maintains an active broker's license in
24    the broker's state of domicile;
25        (2) the broker maintains an office in the broker's
26    state of domicile; and

 

 

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1        (3) the broker has filed with the Department written
2    statements appointing the Secretary to act as the broker's
3    agent upon whom all judicial and other process or legal
4    notices directed to the licensee may be served and
5    agreeing to abide by all of the provisions of this Act with
6    respect to the broker's his or her real estate activities
7    within the State of Illinois and submitting to the
8    jurisdiction of the Department.
9    The statements under subdivision (3) of this Section shall
10be in form and substance the same as those statements required
11under Section 5-60 of this Act and shall operate to the same
12extent.
13    (f) The Department may adopt rules to permit and regulate
14the operation of virtual offices that do not have a fixed
15location.
16(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)
 
17    (225 ILCS 454/5-50)
18    (Section scheduled to be repealed on January 1, 2030)
19    Sec. 5-50. Expiration and renewal of managing broker,
20broker, or residential leasing agent license; sponsoring
21broker; register of licensees.
22    (a) The expiration date and renewal period for each
23license issued under this Act shall be set by rule. Except as
24otherwise provided in this Section, the holder of a license
25may renew the license within 90 days preceding the expiration

 

 

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1date thereof by completing the continuing education required
2by this Act and paying the fees specified by rule.
3    (b) An individual whose first license is that of a broker
4received on or after the effective date of this amendatory Act
5of the 101st General Assembly, must provide evidence of having
6completed 45 hours of post-license education presented in a
7classroom or a live, interactive webinar, or online distance
8education course, and which shall require passage of a final
9examination.
10    The Board may recommend, and the Department shall approve,
1145 hours of post-license education, consisting of three
1215-hour post-license courses, one each that covers applied
13brokerage principles, risk management/discipline, and
14transactional issues. Each of the courses shall require its
15own 50-question final examination, which shall be administered
16by the education provider that delivers the course.
17    Individuals whose first license is that of a broker
18received on or after the effective date of this amendatory Act
19of the 101st General Assembly, must complete all three 15-hour
20courses and successfully pass a course final examination for
21each course prior to the date of the next broker renewal
22deadline, except for those individuals who receive their first
23license within the 180 days preceding the next broker renewal
24deadline, who must complete all three 15-hour courses and
25successfully pass a course final examination for each course
26prior to the second broker renewal deadline that follows the

 

 

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1receipt of their license.
2    (c) Any managing broker, broker, or residential leasing
3agent whose license under this Act has expired shall be
4eligible to renew the license during the 2-year period
5following the expiration date, provided the managing broker,
6broker, or residential leasing agent pays the fees as
7prescribed by rule and completes continuing education and
8other requirements provided for by the Act or by rule. A
9managing broker, broker, or residential leasing agent whose
10license has been expired for more than 2 years but less than 5
11years may have it restored by (i) applying to the Department,
12(ii) paying the required fee, (iii) completing the continuing
13education requirements for the most recent term of licensure
14pre-renewal period that ended prior to the date of the
15application for reinstatement, and (iv) filing acceptable
16proof of fitness to have the his or her license restored, as
17set by rule. A managing broker, broker, or residential leasing
18agent whose license has been expired for more than 5 years
19shall be required to meet the requirements for a new license.
20    (d) Notwithstanding any other provisions of this Act to
21the contrary, any managing broker, broker, or residential
22leasing agent whose license expired while the licensee he or
23she was (i) on active duty with the Armed Forces of the United
24States or called into service or training by the state
25militia, (ii) engaged in training or education under the
26supervision of the United States preliminary to induction into

 

 

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1military service, or (iii) serving as the Coordinator of Real
2Estate in the State of Illinois or as an employee of the
3Department may have the his or her license renewed, reinstated
4or restored without paying any lapsed renewal fees if within 2
5years after the termination of the service, training or
6education by furnishing the Department with satisfactory
7evidence of service, training, or education and it has been
8terminated under honorable conditions.
9    (e) Each licensee shall carry on one's his or her person
10the his or her license or an electronic version thereof.
11    (f) The Department shall provide to the sponsoring broker
12a notice of renewal for all sponsored licensees by mailing the
13notice to the sponsoring broker's address of record, or, at
14the Department's discretion, emailing the notice to the
15sponsoring broker's email address of record.
16    (g) Upon request from the sponsoring broker, the
17Department shall make available to the sponsoring broker, by
18electronic means at the discretion of the Department, a
19listing of licensees under this Act who, according to the
20records of the Department, are sponsored by that broker. Every
21licensee associated with or employed by a broker whose license
22is revoked, suspended, or expired shall be considered inactive
23until such time as the sponsoring broker's license is
24reinstated or renewed, or a new valid sponsorship is
25registered with the Department the licensee changes employment
26as set forth in subsection (b) (c) of Section 5-40 of this Act.

 

 

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1    (h) The Department shall not renew a license if the
2licensee has an unpaid fine or fee from a disciplinary matter
3from a non-disciplinary action imposed by the Department until
4the fine or fee is paid to the Department or the licensee has
5entered into a payment plan and is current on the required
6payments.
7    (i) The Department shall not issue a license if the
8applicant has an unpaid fine imposed by the Department for
9unlicensed practice until the fine is paid to the Department
10or the applicant has entered into a payment plan and is current
11on the required payments.
12(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)
 
13    (225 ILCS 454/5-70)
14    (Section scheduled to be repealed on January 1, 2030)
15    Sec. 5-70. Continuing education requirement; managing
16broker or broker.
17    (a) The requirements of this Section apply to all managing
18brokers and brokers.
19    (b) Except as otherwise provided in this Section, each
20person who applies for renewal of a his or her license as a
21managing broker or broker must successfully complete 12 hours
22of real estate continuing education courses recommended by the
23Board and approved by the Department during the current term
24of the license. In addition, those licensees renewing or
25obtaining a managing broker's license must successfully

 

 

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1complete a 12-hour broker management continuing education
2course approved by the Department during the current term of
3the license. The broker management continuing education course
4must be completed in the classroom or through a live,
5interactive webinar or online distance education format. No
6license may be renewed except upon the successful completion
7of the required courses or their equivalent or upon a waiver of
8those requirements for good cause shown as determined by the
9Secretary upon the recommendation of the Board. The
10requirements of this Article are applicable to all managing
11brokers and brokers except those managing brokers and brokers
12who, during the current term of licensure renewal period:
13        (1) serve in the armed services of the United States;
14        (2) serve as an elected State or federal official;
15        (3) serve as a full-time employee of the Department;
16    or
17        (4) are admitted to practice law pursuant to Illinois
18    Supreme Court rule.
19    (c) (Blank).
20    (d) A person receiving an initial license during the 90
21days before the renewal date shall not be required to complete
22the continuing education courses provided for in subsection
23(b) of this Section as a condition of initial license renewal.
24    (e) The continuing education requirement for brokers and
25managing brokers shall consist of a single core curriculum and
26an elective curriculum, to be recommended by the Board and

 

 

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1approved by the Department in accordance with this subsection.
2The core curriculum shall not be further divided into
3subcategories or divisions of instruction. The core curriculum
4shall consist of 4 hours during the current term of the license
5on subjects that may include, but are not limited to,
6advertising, agency, disclosures, escrow, fair housing,
7residential leasing agent management, and license law. The
8amount of time allotted to each of these subjects shall be
9recommended by the Board and determined by the Department. The
10Department, upon the recommendation of the Board, shall review
11the core curriculum every 4 years, at a minimum, and shall
12revise the curriculum if necessary. However, the core
13curriculum's total hourly requirement shall only be subject to
14change by amendment of this subsection, and any change to the
15core curriculum shall not be effective for a period of 6 months
16after such change is made by the Department. The Department
17shall provide notice to all approved education providers of
18any changes to the core curriculum. When determining whether
19revisions of the core curriculum's subjects or specific time
20requirements are necessary, the Board shall consider recent
21changes in applicable laws, new laws, and areas of the license
22law and the Department policy that the Board deems
23appropriate, and any other subject areas the Board deems
24timely and applicable in order to prevent violations of this
25Act and to protect the public. In establishing a
26recommendation to the Department regarding the elective

 

 

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1curriculum, the Board shall consider subjects that cover the
2various aspects of the practice of real estate that are
3covered under the scope of this Act.
4    (f) The subject areas of continuing education courses
5recommended by the Board and approved by the Department shall
6be meant to protect the professionalism of the industry, the
7consumer, and the public and prevent violations of this Act
8and may include without limitation the following:
9        (1) license law and escrow;
10        (2) antitrust;
11        (3) fair housing;
12        (4) agency;
13        (5) appraisal;
14        (6) property management;
15        (7) residential brokerage;
16        (8) farm property management;
17        (9) transaction management rights and duties of
18    parties in a transaction;
19        (10) commercial brokerage and leasing;
20        (11) real estate financing;
21        (12) disclosures;
22        (13) residential leasing agent management;
23        (14) advertising;
24        (15) broker supervision and designated managing broker
25    responsibility;
26        (16) professional conduct; and

 

 

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1        (17) use of technology.
2    (g) In lieu of credit for those courses listed in
3subsection (f) of this Section, credit may be earned for
4serving as a licensed instructor in an approved course of
5continuing education. The amount of credit earned for teaching
6a course shall be the amount of continuing education credit
7for which the course is approved for licensees taking the
8course.
9    (h) Credit hours may be earned for self-study programs
10approved by the Department.
11    (i) A managing broker or broker may earn credit for a
12specific continuing education course only once during the
13current term of the license.
14    (j) No more than 12 hours of continuing education credit
15may be taken in one calendar day.
16    (k) To promote the offering of a uniform and consistent
17course content, the Department may provide for the development
18of a single broker management course to be offered by all
19education providers who choose to offer the broker management
20continuing education course. The Department may contract for
21the development of the 12-hour broker management continuing
22education course with an outside vendor or consultant and, if
23the course is developed in this manner, the Department or the
24outside consultant shall license the use of that course to all
25approved education providers who wish to provide the course.
26    (l) Except as specifically provided in this Act,

 

 

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1continuing education credit hours may not be earned for
2completion of pre-license or post-license courses. The courses
3comprising the approved 45-hour post-license curriculum for
4broker licensees shall satisfy the continuing education
5requirement for the initial broker license term period in
6which the courses are taken. The approved 45-hour managing
7broker pre-license brokerage administration and management
8course shall satisfy the 12-hour broker management continuing
9education requirement for the initial managing broker license
10term in which the course is taken.
11(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)
 
12    (225 ILCS 454/15-35)
13    (Section scheduled to be repealed on January 1, 2030)
14    Sec. 15-35. Agency relationship disclosure.
15    (a) A licensee acting as a designated agent shall advise a
16consumer in writing, no later than beginning to work as a
17designated agent on behalf of the consumer, of the following:
18        (1) That a designated agency relationship exists,
19    unless there is written agreement between the sponsoring
20    broker and the consumer providing for a different agency
21    relationship; and
22        (2) The name or names of the his or her designated
23    agent or agents on the written disclosure, which can be
24    included in a brokerage agreement or be a separate
25    document, a copy of which is retained by the sponsoring

 

 

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1    broker real estate brokerage firm for the licensee.
2    (b) The licensee representing the consumer shall discuss
3with the consumer the sponsoring broker's compensation and
4policy with regard to cooperating with brokers who represent
5other parties in a transaction.
6    (c) A licensee shall disclose in writing to a customer
7that the licensee is not acting as the agent of the customer at
8a time intended to prevent disclosure of confidential
9information from a customer to a licensee, but in no event
10later than the preparation of an offer to purchase or lease
11real property.
12(Source: P.A. 101-357, eff. 8-9-19.)
 
13    (225 ILCS 454/15-45)
14    (Section scheduled to be repealed on January 1, 2030)
15    Sec. 15-45. Dual agency.
16    (a) An individual licensee may act as a dual agent or a
17sponsoring broker may permit one or more of its sponsored
18licensees to act as dual agents in the same transaction only
19with the informed written consent of all clients. Informed
20written consent shall be presumed to have been given by any
21client who signs a document that includes the following:
22        "The undersigned (insert name(s)), ("Licensee"), may
23    undertake a dual representation (represent both the seller
24    or landlord and the buyer or tenant) for the sale or lease
25    of property. The undersigned acknowledge they were

 

 

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1    informed of the possibility of this type of
2    representation. Before signing this document please read
3    the following: Representing more than one party to a
4    transaction presents a conflict of interest since both
5    clients may rely upon Licensee's advice and the client's
6    respective interests may be adverse to each other.
7    Licensee will undertake this representation only with the
8    written consent of ALL clients in the transaction. Any
9    agreement between the clients as to a final contract price
10    and other terms is a result of negotiations between the
11    clients acting in their own best interests and on their
12    own behalf. You acknowledge that Licensee has explained
13    the implications of dual representation, including the
14    risks involved, and understand that you have been advised
15    to seek independent advice from your advisors or attorneys
16    before signing any documents in this transaction.
17
WHAT A LICENSEE CAN DO FOR CLIENTS
18
WHEN ACTING AS A DUAL AGENT
19    1. Treat all clients honestly.
20    2. Provide information about the property to the buyer or
21    tenant.
22    3. Disclose all latent material defects in the property
23    that are known to the Licensee.
24    4. Disclose financial qualification of the buyer or tenant
25    to the seller or landlord.
26    5. Explain real estate terms.

 

 

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1    6. Help the buyer or tenant to arrange for property
2    inspections.
3    7. Explain closing costs and procedures.
4    8. Help the buyer compare financing alternatives.
5    9. Provide information about comparable properties that
6    have sold so both clients may make educated decisions on
7    what price to accept or offer.
8
WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN
9
ACTING AS A DUAL AGENT
10    1. Confidential information that Licensee may know about a
11    client, without that client's permission.
12    2. The price or terms the seller or landlord will take
13    other than the listing price without permission of the
14    seller or landlord.
15    3. The price or terms the buyer or tenant is willing to pay
16    without permission of the buyer or tenant.
17    4. A recommended or suggested price or terms the buyer or
18    tenant should offer.
19    5. A recommended or suggested price or terms the seller or
20    landlord should counter with or accept.
21        If either client is uncomfortable with this disclosure
22    and dual representation, please let Licensee know. You are
23    not required to sign this document unless you want to
24    allow Licensee to proceed as a Dual Agent in this
25    transaction. By signing below, you acknowledge that you
26    have read and understand this form and voluntarily consent

 

 

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1    to Licensee acting as a Dual Agent (that is, to represent
2    BOTH the seller or landlord and the buyer or tenant)
3    should that become necessary."
4    (b) The dual agency disclosure form provided for in
5subsection (a) of this Section must be presented by a
6licensee, who offers dual representation, to the client at the
7time the brokerage agreement is entered into and may be signed
8by the client at that time or at any time before the licensee
9acts as a dual agent as to the client.
10    (c) A licensee acting in a dual agency capacity in a
11transaction must obtain a written confirmation from the
12licensee's clients of their prior consent for the licensee to
13act as a dual agent in the transaction. This confirmation
14should be obtained at the time the clients are executing any
15offer or contract to purchase or lease in a transaction in
16which the licensee is acting as a dual agent. This
17confirmation may be included in another document, such as a
18contract to purchase, in which case the client must not only
19sign the document but also initial the confirmation of dual
20agency provision. That confirmation must state, at a minimum,
21the following:
22        "The undersigned confirm that they have previously
23    consented to (insert name(s)), ("Licensee"), acting as a
24    Dual Agent in providing brokerage services on their behalf
25    and specifically consent to Licensee acting as a Dual
26    Agent in regard to the transaction referred to in this

 

 

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1    document."
2    (d) No cause of action shall arise on behalf of any person
3against a dual agent for making disclosures allowed or
4required by this Article, and the dual agent does not
5terminate any agency relationship by making the allowed or
6required disclosures.
7    (e) In the case of dual agency, each client and the
8licensee possess only actual knowledge and information. There
9shall be no imputation of knowledge or information among or
10between clients, brokers, or their affiliated licensees.
11    (f) In any transaction, a licensee may without liability
12withdraw from representing a client who has not consented to a
13disclosed dual agency. The withdrawal shall not prejudice the
14ability of the licensee to continue to represent the other
15client in the transaction or limit the licensee from
16representing the client in other transactions. When a
17withdrawal as contemplated in this subsection (f) occurs, the
18licensee shall not receive a referral fee for referring a
19client to another licensee unless written disclosure is made
20to both the withdrawing client and the client that continues
21to be represented by the licensee.
22    (g) A licensee shall not serve as a dual agent in any
23transaction when the licensee, or an entity in which the
24licensee has or will have any ownership interest, is a party to
25the transaction.
26(Source: P.A. 101-357, eff. 8-9-19.)
 

 

 

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1    (225 ILCS 454/20-20)
2    (Section scheduled to be repealed on January 1, 2030)
3    Sec. 20-20. Nature of and grounds for discipline.
4    (a) The Department may refuse to issue or renew a license,
5may place on probation, suspend, or revoke any license,
6reprimand, or take any other disciplinary or non-disciplinary
7action as the Department may deem proper and impose a fine not
8to exceed $25,000 upon any licensee or applicant under this
9Act or any person who holds oneself himself or herself out as
10an applicant or licensee or against a licensee in handling
11one's his or her own property, whether held by deed, option, or
12otherwise, for any one or any combination of the following
13causes:
14        (1) Fraud or misrepresentation in applying for, or
15    procuring, a license under this Act or in connection with
16    applying for renewal of a license under this Act.
17        (2) The licensee's conviction of or plea of guilty or
18    plea of nolo contendere, as set forth in subsection (e) of
19    Section 5-25, to: (A) a felony or misdemeanor in this
20    State or any other jurisdiction; or (B) the entry of an
21    administrative sanction by a government agency in this
22    State or any other jurisdiction; or (C) any crime that
23    subjects the licensee to compliance with the requirements
24    of the Sex Offender Registration Act. Action taken under
25    this paragraph (2) for a misdemeanor or an administrative

 

 

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

 

 

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

 

 

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

 

 

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1        absence of notice of the filing of any claim in a court
2        of competent jurisdiction; and (iii) if 6 months have
3        elapsed after the receipt of a written demand for the
4        escrow moneys from one of the principals to the
5        transaction or the principal's duly authorized agent.
6    The account shall be noninterest bearing, unless the
7    character of the deposit is such that payment of interest
8    thereon is otherwise required by law or unless the
9    principals to the transaction specifically require, in
10    writing, that the deposit be placed in an interest-bearing
11    account.
12        (18) Failure to make available to the Department all
13    escrow records and related documents maintained in
14    connection with the practice of real estate within 24
15    hours of a request for those documents by Department
16    personnel.
17        (19) Failing to furnish copies upon request of
18    documents relating to a real estate transaction to a party
19    who has executed that document.
20        (20) Failure of a sponsoring broker or licensee to
21    timely provide sponsorship or termination of sponsorship
22    information to the Department.
23        (21) Engaging in dishonorable, unethical, or
24    unprofessional conduct of a character likely to deceive,
25    defraud, or harm the public, including, but not limited
26    to, conduct set forth in rules adopted by the Department.

 

 

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1        (22) Commingling the money or property of others with
2    the licensee's his or her own money or property.
3        (23) Employing any person on a purely temporary or
4    single deal basis as a means of evading the law regarding
5    payment of commission to nonlicensees on some contemplated
6    transactions.
7        (24) Permitting the use of one's his or her license as
8    a broker to enable a residential leasing agent or
9    unlicensed person to operate a real estate business
10    without actual participation therein and control thereof
11    by the broker.
12        (25) Any other conduct, whether of the same or a
13    different character from that specified in this Section,
14    that constitutes dishonest dealing.
15        (26) Displaying a "for rent" or "for sale" sign on any
16    property without the written consent of an owner or the
17    owner's his or her duly authorized agent or advertising by
18    any means that any property is for sale or for rent without
19    the written consent of the owner or the owner's his or her
20    authorized agent.
21        (27) Failing to provide information requested by the
22    Department, or otherwise respond to that request, within
23    30 days of the request.
24        (28) Advertising by means of a blind advertisement,
25    except as otherwise permitted in Section 10-30 of this
26    Act.

 

 

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1        (29) A licensee under this Act or an unlicensed
2    individual offering guaranteed sales plans, as defined in
3    Section 10-50, except to the extent set forth in Section
4    10-50.
5        (30) Influencing or attempting to influence, by any
6    words or acts, a prospective seller, purchaser, occupant,
7    landlord, or tenant of real estate, in connection with
8    viewing, buying, or leasing real estate, so as to promote
9    or tend to promote the continuance or maintenance of
10    racially and religiously segregated housing or so as to
11    retard, obstruct, or discourage racially integrated
12    housing on or in any street, block, neighborhood, or
13    community.
14        (31) Engaging in any act that constitutes a violation
15    of any provision of Article 3 of the Illinois Human Rights
16    Act, whether or not a complaint has been filed with or
17    adjudicated by the Human Rights Commission.
18        (32) Inducing any party to a contract of sale or lease
19    or brokerage agreement to break the contract of sale or
20    lease or brokerage agreement for the purpose of
21    substituting, in lieu thereof, a new contract for sale or
22    lease or brokerage agreement with a third party.
23        (33) Negotiating a sale, exchange, or lease of real
24    estate directly with any person if the licensee knows that
25    the person has an exclusive brokerage agreement with
26    another broker, unless specifically authorized by that

 

 

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

 

 

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

 

 

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1        (45) Failing to notify the Department, of any criminal
2    conviction that occurs during the licensee's term of
3    licensure within 30 days after the occurrence, of the
4    information required in subsection (e) of Section 5-25
5    conviction.
6        (46) A designated managing broker's failure to provide
7    an appropriate written company policy or failure to
8    perform any of the duties set forth in Section 10-55.
9    (b) The Department may refuse to issue or renew or may
10suspend the license of any person who fails to file a return,
11pay the tax, penalty or interest shown in a filed return, or
12pay any final assessment of tax, penalty, or interest, as
13required by any tax Act administered by the Department of
14Revenue, until such time as the requirements of that tax Act
15are satisfied in accordance with subsection (g) of Section
162105-15 of the Department of Professional Regulation Law of
17the Civil Administrative Code of Illinois.
18    (c) (Blank).
19    (d) In cases where the Department of Healthcare and Family
20Services (formerly Department of Public Aid) has previously
21determined that a licensee or a potential licensee is more
22than 30 days delinquent in the payment of child support and has
23subsequently certified the delinquency to the Department may
24refuse to issue or renew or may revoke or suspend that person's
25license or may take other disciplinary action against that
26person based solely upon the certification of delinquency made

 

 

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1by the Department of Healthcare and Family Services in
2accordance with item (5) of subsection (a) of Section 2105-15
3of the Department of Professional Regulation Law of the Civil
4Administrative Code of Illinois.
5    (e) (Blank). In enforcing this Section, the Department or
6Board upon a showing of a possible violation may compel an
7individual licensed to practice under this Act, or who has
8applied for licensure under this Act, to submit to a mental or
9physical examination, or both, as required by and at the
10expense of the Department. The Department or Board may order
11the examining physician to present testimony concerning the
12mental or physical examination of the licensee or applicant.
13No information shall be excluded by reason of any common law or
14statutory privilege relating to communications between the
15licensee or applicant and the examining physician. The
16examining physicians shall be specifically designated by the
17Board or Department. The individual to be examined may have,
18at his or her own expense, another physician of his or her
19choice present during all aspects of this examination. Failure
20of an individual to submit to a mental or physical
21examination, when directed, shall be grounds for suspension of
22his or her license until the individual submits to the
23examination if the Department finds, after notice and hearing,
24that the refusal to submit to the examination was without
25reasonable cause.
26    If the Department or Board finds an individual unable to

 

 

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1practice because of the reasons set forth in this Section, the
2Department or Board may require that individual to submit to
3care, counseling, or treatment by physicians approved or
4designated by the Department or Board, as a condition, term,
5or restriction for continued, reinstated, or renewed licensure
6to practice; or, in lieu of care, counseling, or treatment,
7the Department may file, or the Board may recommend to the
8Department to file, a complaint to immediately suspend,
9revoke, or otherwise discipline the license of the individual.
10An individual whose license was granted, continued,
11reinstated, renewed, disciplined or supervised subject to such
12terms, conditions, or restrictions, and who fails to comply
13with such terms, conditions, or restrictions, shall be
14referred to the Secretary for a determination as to whether
15the individual shall have his or her license suspended
16immediately, pending a hearing by the Department.
17    In instances in which the Secretary immediately suspends a
18person's license under this Section, a hearing on that
19person's license must be convened by the Department within 30
20days after the suspension and completed without appreciable
21delay. The Department and Board shall have the authority to
22review the subject individual's record of treatment and
23counseling regarding the impairment to the extent permitted by
24applicable federal statutes and regulations safeguarding the
25confidentiality of medical records.
26    An individual licensed under this Act and affected under

 

 

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1this Section shall be afforded an opportunity to demonstrate
2to the Department or Board that he or she can resume practice
3in compliance with acceptable and prevailing standards under
4the provisions of his or her license.
5(Source: P.A. 100-22, eff. 1-1-18; 100-188, eff. 1-1-18;
6100-534, eff. 9-22-17; 100-831, eff. 1-1-19; 100-863, eff.
78-14-18; 100-872, eff. 8-14-18; 101-81, eff. 7-12-19; 101-357,
8eff. 8-9-19.)
 
9    (225 ILCS 454/20-20.1)
10    (Section scheduled to be repealed on January 1, 2030)
11    Sec. 20-20.1. Citations.
12    (a) The Department may adopt rules to permit the issuance
13of citations to any licensee for failure to comply with the
14continuing education requirements set forth in this Act or as
15adopted by rule. The citation shall be issued to the licensee,
16and a copy shall be sent to the licensee's his or her
17designated managing broker and sponsoring broker. The citation
18shall contain the licensee's name and address, the licensee's
19license number, the number of required hours of continuing
20education that have not been successfully completed by the
21licensee's licensee within the renewal deadline period, and
22the penalty imposed, which shall not exceed $2,000. The
23issuance of any such citation shall not excuse the licensee
24from completing all continuing education required for that
25term of licensure renewal period.

 

 

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1    (b) Service of a citation shall be made by in person,
2electronically, or by mail to the licensee at the licensee's
3address of record or email address of record, and must clearly
4state that if the cited licensee wishes to dispute the
5citation, the cited licensee he or she may make a written
6request, within 30 days after the citation is served, for a
7hearing before the Department. If the cited licensee does not
8request a hearing within 30 days after the citation is served,
9then the citation shall become a final, non-disciplinary
10order, and any fine imposed is due and payable within 60 days
11after that final order. If the cited licensee requests a
12hearing within 30 days after the citation is served, the
13Department shall afford the cited licensee a hearing conducted
14in the same manner as a hearing provided for in this Act for
15any violation of this Act and shall determine whether the
16cited licensee committed the violation as charged and whether
17the fine as levied is warranted. If the violation is found, any
18fine shall constitute non-public discipline and be due and
19payable within 30 days after the order of the Secretary, which
20shall constitute a final order of the Department. No change in
21license status may be made by the Department until such time as
22a final order of the Department has been issued.
23    (c) Payment of a fine that has been assessed pursuant to
24this Section shall not constitute disciplinary action
25reportable on the Department's website or elsewhere unless a
26licensee has previously received 2 or more citations and has

 

 

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1been assessed paid 2 or more fines.
2    (d) Nothing in this Section shall prohibit or limit the
3Department from taking further action pursuant to this Act and
4rules for additional, repeated, or continuing violations.
5(Source: P.A. 101-357, eff. 8-9-19.)
 
6    (225 ILCS 454/20-69)
7    (Section scheduled to be repealed on January 1, 2030)
8    Sec. 20-69. Restoration of a suspended or revoked license.
9At any time after the successful completion of a term of
10suspension or revocation of an individual's a license, the
11Department may restore it to the licensee, upon the written
12recommendation of the Board, unless after an investigation and
13a hearing the Board determines that restoration is not in the
14public interest.
15(Source: P.A. 96-856, eff. 12-31-09.)
 
16    (225 ILCS 454/20-75)
17    (Section scheduled to be repealed on January 1, 2030)
18    Sec. 20-75. Administrative Review venue.
19    (a) All final administrative decisions of the Department
20are subject to judicial review under the Administrative Review
21Law and its rules. The term "administrative decision" is
22defined in Section 3-101 of the Code of Civil Procedure.
23    (b) Proceedings for judicial review shall be commenced in
24the circuit court of the court in which the party applying for

 

 

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1review resides, but if the party is not a resident of Illinois,
2the venue shall be in Sangamon County or Cook County.
3(Source: P.A. 101-357, eff. 8-9-19.)
 
4    (225 ILCS 454/20-110)
5    (Section scheduled to be repealed on January 1, 2030)
6    Sec. 20-110. Disciplinary actions of the Department not
7limited. Nothing contained in Sections 20-82 20-80 through
820-100 of this Act limits the authority of the Department to
9take disciplinary action against any licensee for a violation
10of this Act or the rules of the Department, nor shall the
11repayment in full of all obligations to the Real Estate
12Recovery Fund by any licensee nullify or modify the effect of
13any other disciplinary proceeding brought pursuant to this
14Act.
15(Source: P.A. 96-856, eff. 12-31-09.)
 
16    (225 ILCS 454/25-10)
17    (Section scheduled to be repealed on January 1, 2030)
18    Sec. 25-10. Real Estate Administration and Disciplinary
19Board; duties. There is created the Real Estate Administration
20and Disciplinary Board. The Board shall be composed of 15
21persons appointed by the Governor. Members shall be appointed
22to the Board subject to the following conditions:
23        (1) All members shall have been residents and citizens
24    of this State for at least 6 years prior to the date of

 

 

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1    appointment.
2        (2) Twelve members shall have been actively engaged as
3    managing brokers or brokers or both for at least the 10
4    years prior to the appointment, 2 of whom must possess an
5    active pre-license instructor license.
6        (3) Three members of the Board shall be public members
7    who represent consumer interests.
8    None of these members shall be (i) a person who is licensed
9under this Act or a similar Act of another jurisdiction, (ii)
10the spouse or immediate family member of a licensee, or (iii) a
11person who has an ownership interest in a real estate
12brokerage business, or (iv) a person the Department determines
13to have any other connection with a real estate brokerage
14business or a licensee.
15    The members' terms shall be for 4 years and until a
16successor is appointed expire upon completion of the term. No
17member shall be reappointed to the Board for a term that would
18cause the member's his or her cumulative service to the Board
19to exceed 10 years. Appointments to fill vacancies shall be
20for the unexpired portion of the term. Those members of the
21Board that satisfy the requirements of paragraph (2) shall be
22chosen in a manner such that no area of the State shall be
23unreasonably represented. In making the appointments, the
24Governor shall give due consideration to the recommendations
25by members and organizations of the profession. The Governor
26may terminate the appointment of any member for cause that in

 

 

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1the opinion of the Governor reasonably justifies the
2termination. Cause for termination shall include without
3limitation misconduct, incapacity, neglect of duty, or missing
44 board meetings during any one fiscal calendar year. Each
5member of the Board may receive a per diem stipend in an amount
6to be determined by the Secretary. While engaged in the
7performance of duties, each Each member shall be reimbursed
8for paid his or her necessary expenses while engaged in the
9performance of his or her duties. Such compensation and
10expenses shall be paid out of the Real Estate License
11Administration Fund. The Secretary shall consider the
12recommendations of the Board on questions involving standards
13of professional conduct, discipline, education, and policies
14and procedures under this Act. With regard to this subject
15matter, the Secretary may establish temporary or permanent
16committees of the Board and may consider the recommendations
17of the Board on matters that include, but are not limited to,
18criteria for the licensing and renewal of education providers,
19pre-license and continuing education instructors, pre-license
20and continuing education curricula, standards of educational
21criteria, and qualifications for licensure and renewal of
22professions, courses, and instructors. The Department, after
23notifying and considering the recommendations of the Board, if
24any, may issue rules, consistent with the provisions of this
25Act, for the administration and enforcement thereof and may
26prescribe forms that shall be used in connection therewith.

 

 

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1Eight Board members shall constitute a quorum. A quorum is
2required for all Board decisions. A vacancy in the membership
3of the Board shall not impair the right of a quorum to exercise
4all of the rights and perform all of the duties of the Board.
5    The Board shall elect annually, at its first meeting of
6the fiscal year, a vice chairperson who shall preside, with
7voting privileges, at meetings when the chairperson is not
8present. Members of the Board shall be immune from suit in an
9action based upon any disciplinary proceedings or other acts
10performed in good faith as members of the Board.
11(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18;
12100-886, eff. 8-14-18.)
 
13    (225 ILCS 454/25-38 new)
14    Sec. 25-38. Real Estate Audit Fund. Notwithstanding any
15other provision of law, in addition to any other transfers
16that may be provided by law, on January 1, 2023, or as soon
17thereafter as practical, the State Comptroller shall direct
18and the State Treasurer shall transfer the remaining balance
19from the Real Estate Audit Fund into the Real Estate License
20Administration Fund. Upon completion of the transfer, the Real
21Estate Audit Fund is dissolved, and any future deposits due to
22that Fund and any outstanding obligations or liabilities of
23that Fund pass to the Real Estate License Administration Fund.
24This Section is repealed on July 1, 2023.
 

 

 

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1    (225 ILCS 454/30-15)
2    (Section scheduled to be repealed on January 1, 2030)
3    Sec. 30-15. Licensing of education providers; approval of
4courses.
5    (a) (Blank).
6    (b) (Blank).
7    (c) (Blank).
8    (d) (Blank).
9    (e) (Blank).
10    (f) All education providers shall submit, at the time of
11initial application and with each license renewal, a list of
12courses with course materials that comply with the course
13requirements in this Act to be offered by the education
14provider. The Department may establish an online mechanism by
15which education providers may submit for approval by the
16Department upon the recommendation of the Board or its
17designee pre-license, post-license, or continuing education
18courses that are submitted after the time of the education
19provider's initial license application or renewal. The
20Department shall provide to each education provider a
21certificate for each approved pre-license, post-license, or
22continuing education course. All pre-license, post-license, or
23continuing education courses shall be valid for the period
24coinciding with the term of license of the education provider.
25However, in no case shall a course continue to be valid if it
26does not, at all times, meet all of the requirements of the

 

 

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1core curriculum established by this Act and the Board, as
2modified from time to time in accordance with this Act. All
3education providers shall provide a copy of the certificate of
4the pre-license, post-license, or continuing education course
5within the course materials given to each student or shall
6display a copy of the certificate of the pre-license,
7post-license, or continuing education course in a conspicuous
8place at the location of the class.
9    (g) Each education provider shall provide to the
10Department a report in a frequency and format determined by
11the Department, with information concerning students who
12successfully completed all approved pre-license, post-license,
13or continuing education courses offered by the education
14provider.
15    (h) The Department, upon the recommendation of the Board,
16may temporarily suspend a licensed education provider's
17approved courses without hearing and refuse to accept
18successful completion of or participation in any of these
19pre-license, post-license, or continuing education courses for
20education credit from that education provider upon the failure
21of that education provider to comply with the provisions of
22this Act or the rules for the administration of this Act, until
23such time as the Department receives satisfactory assurance of
24compliance. The Department shall notify the education provider
25of the noncompliance and may initiate disciplinary proceedings
26pursuant to this Act. The Department may refuse to issue,

 

 

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1suspend, revoke, or otherwise discipline the license of an
2education provider or may withdraw approval of a pre-license,
3post-license, or continuing education course for good cause.
4Failure to comply with the requirements of this Section or any
5other requirements established by rule shall be deemed to be
6good cause. Disciplinary proceedings shall be conducted by the
7Board in the same manner as other disciplinary proceedings
8under this Act.
9    (i) Pre-license, post-license, and continuing education
10courses, whether submitted for approval at the time of an
11education provider's initial application for licensure or
12otherwise, must meet the following minimum course
13requirements:
14        (1) Continuing education courses No continuing
15    education course shall be required to be at least one hour
16    taught in increments longer than 2 hours in duration. For
17    ; however, for each one hour of course time in each course,
18    there shall be a minimum of 50 minutes of instruction.
19        (2) All core curriculum courses shall be provided only
20    in the classroom or through a live, interactive webinar or
21    online distance education format.
22        (3) Courses provided through a live, interactive
23    webinar shall require all participants to demonstrate
24    their attendance in and attention to the course by
25    answering or responding to at least one polling question
26    per 50 minutes of course instruction.

 

 

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1        (4) All participants in courses provided in an online
2    distance education format shall demonstrate proficiency
3    with the subject matter of the course through verifiable
4    responses to questions included in the course content.
5        (5) Credit for courses completed in a classroom or
6    through a live, interactive webinar or online distance
7    education format shall not require an examination.
8        (6) Credit for courses provided through
9    correspondence, or by home study, shall require the
10    passage of an in-person, proctored examination.
11    (j) The Department is authorized to engage a third party
12as the Board's designee to perform the functions specifically
13provided for in subsection (f) of this Section, namely that of
14administering the online system for receipt, review, and
15approval or denial of new courses.
16    (k) The Department may adopt any administrative rule
17consistent with the language and intent of this Act that may be
18necessary for the implementation and enforcement of this
19Section.
20(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)
 
21    (225 ILCS 454/30-25)
22    (Section scheduled to be repealed on January 1, 2030)
23    Sec. 30-25. Licensing of education provider instructors.
24    (a) No person shall act as either a pre-license or
25continuing education instructor without possessing a valid

 

 

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1pre-license or continuing education instructor license and
2satisfying any other qualification criteria adopted by the
3Department by rule.
4    (a-5) Each person with a valid pre-license instructor
5license may teach pre-license, post-license, continuing
6education core curriculum, continuing education elective
7curriculum, or broker management education courses if they
8meet specific criteria adopted by the Department by rule.
9Those persons who have not met the criteria or who only possess
10a valid continuing education instructor license shall only
11teach continuing education elective curriculum courses. Any
12person with a valid continuing education instructor license
13who wishes to teach continuing education core curriculum or
14broker management continuing education courses must obtain a
15valid pre-license instructor license.
16    (b) Every person who desires to obtain an education
17provider instructor's license shall attend and successfully
18complete a one-day instructor development workshop, as
19approved by the Department. However, pre-license instructors
20who have complied with subsection (b) of this Section 30-25
21shall not be required to complete the instructor workshop in
22order to teach continuing education elective curriculum
23courses.
24    (b-5) The term of licensure for a pre-license or
25continuing education instructor shall be 2 years, with renewal
26dates adopted by rule. Every person who desires to obtain a

 

 

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1pre-license or continuing education instructor license shall
2make application to the Department in a manner prescribed by
3the Department, accompanied by the fee adopted by rule. In
4addition to any other information required to be contained in
5the application, every application for an original license
6shall include the applicant's Social Security number, which
7shall be retained in the agency's records pertaining to the
8license. As soon as practical, the Department shall assign a
9customer's identification number to each applicant for a
10license.
11    Every application for a renewal or restored license shall
12require the applicant's customer identification number.
13    The Department shall issue a pre-license or continuing
14education instructor license to applicants who meet
15qualification criteria established by this Act or rule.
16    (c) The Department may refuse to issue, suspend, revoke,
17or otherwise discipline a pre-license or continuing education
18instructor for good cause. Disciplinary proceedings shall be
19conducted by the Board in the same manner as other
20disciplinary proceedings under this Act. All pre-license
21instructors must teach at least one pre-license or continuing
22education core curriculum course within the period of
23licensure as a requirement for renewal of the instructor's
24license. All continuing education instructors must teach at
25least one course within the period of licensure or take an
26instructor training program approved by the Department in lieu

 

 

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1thereof as a requirement for renewal of the instructor's
2license.
3    (d) Each course transcript submitted by an education
4provider to the Department shall include the name and license
5number of the pre-license or continuing education instructor
6for the course.
7    (e) Licensed education provider instructors may teach for
8more than one licensed education provider.
9    (f) The Department may adopt any administrative rule
10consistent with the language and intent of this Act that may be
11necessary for the implementation and enforcement of this
12Section.
13(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)
 
14    (225 ILCS 454/20-21 rep.)
15    Section 35. The Real Estate License Act of 2000 is amended
16by repealing Section 20-21.
 
17    (225 ILCS 456/Act rep.)
18    Section 40. The Real Estate Regulation Transfer Act is
19repealed.
 
20    Section 45. The Real Estate Appraiser Licensing Act of
212002 is amended by changing Sections 1-10, 5-25, 15-15, and
2225-10 as follows:
 

 

 

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1    (225 ILCS 458/1-10)
2    (Section scheduled to be repealed on January 1, 2027)
3    Sec. 1-10. Definitions. As used in this Act, unless the
4context otherwise requires:
5    "Accredited college or university, junior college, or
6community college" means a college or university, junior
7college, or community college that is approved or accredited
8by the Board of Higher Education, a regional or national
9accreditation association, or by an accrediting agency that is
10recognized by the U.S. Secretary of Education.
11    "Address of record" means the designated street address,
12which may not be a post office box, recorded by the Department
13in the applicant's or licensee's application file or license
14file as maintained by the Department.
15    "Applicant" means a person who applies to the Department
16for a license under this Act.
17    "Appraisal" means (noun) the act or process of developing
18an opinion of value; an opinion of value (adjective) of or
19pertaining to appraising and related functions, such as
20appraisal practice or appraisal services.
21    "Appraisal assignment" means a valuation service provided
22pursuant to an agreement between an appraiser and a client.
23    "Appraisal firm" means an appraisal entity that is 100%
24owned and controlled by a person or persons licensed in
25Illinois as a certified general real estate appraiser or a
26certified residential real estate appraiser. "Appraisal firm"

 

 

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1does not include an appraisal management company.
2    "Appraisal management company" means any corporation,
3limited liability company, partnership, sole proprietorship,
4subsidiary, unit, or other business entity that directly or
5indirectly: (1) provides appraisal management services to
6creditors or secondary mortgage market participants, including
7affiliates; (2) provides appraisal management services in
8connection with valuing the consumer's principal dwelling as
9security for a consumer credit transaction (including consumer
10credit transactions incorporated into securitizations); and
11(3) any appraisal management company that, within a given
1212-month period, oversees an appraiser panel of 16 or more
13State-certified appraisers in Illinois or 25 or more
14State-certified or State-licensed appraisers in 2 or more
15jurisdictions. "Appraisal management company" includes a
16hybrid entity.
17    "Appraisal practice" means valuation services performed by
18an individual acting as an appraiser, including, but not
19limited to, appraisal or appraisal review.
20    "Appraisal report" means any communication, written or
21oral, of an appraisal or appraisal review that is transmitted
22to a client upon completion of an assignment.
23    "Appraisal review" means the act or process of developing
24and communicating an opinion about the quality of another
25appraiser's work that was performed as part of an appraisal,
26appraisal review, or appraisal assignment.

 

 

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1    "Appraisal Subcommittee" means the Appraisal Subcommittee
2of the Federal Financial Institutions Examination Council as
3established by Title XI.
4    "Appraiser" means a person who performs real estate or
5real property appraisals competently and in a manner that is
6independent, impartial, and objective.
7    "Appraiser panel" means a network, list, or roster of
8licensed or certified appraisers approved by the appraisal
9management company or by the end-user client to perform
10appraisals as independent contractors for the appraisal
11management company. "Appraiser panel" includes both appraisers
12accepted by an appraisal management company for consideration
13for future appraisal assignments and appraisers engaged by an
14appraisal management company to perform one or more
15appraisals. For the purposes of determining the size of an
16appraiser panel, only independent contractors of hybrid
17entities shall be counted towards the appraiser panel.
18    "AQB" means the Appraisal Qualifications Board of the
19Appraisal Foundation.
20    "Associate real estate trainee appraiser" means an
21entry-level appraiser who holds a license of this
22classification under this Act with restrictions as to the
23scope of practice in accordance with this Act.
24    "Automated valuation model" means an automated system that
25is used to derive a property value through the use of available
26property records and various analytic methodologies such as

 

 

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1comparable sales prices, home characteristics, and price
2changes.
3    "Board" means the Real Estate Appraisal Administration and
4Disciplinary Board.
5    "Broker price opinion" means an estimate or analysis of
6the probable selling price of a particular interest in real
7estate, which may provide a varying level of detail about the
8property's condition, market, and neighborhood and information
9on comparable sales. The activities of a real estate broker or
10managing broker engaging in the ordinary course of business as
11a broker, as defined in this Section, shall not be considered a
12broker price opinion if no compensation is paid to the broker
13or managing broker, other than compensation based upon the
14sale or rental of real estate.
15    "Classroom hour" means 50 minutes of instruction out of
16each 60-minute segment of coursework.
17    "Client" means the party or parties who engage an
18appraiser by employment or contract in a specific appraisal
19assignment.
20    "Comparative market analysis" is an analysis or opinion
21regarding pricing, marketing, or financial aspects relating to
22a specified interest or interests in real estate that may be
23based upon an analysis of comparative market data, the
24expertise of the real estate broker or managing broker, and
25such other factors as the broker or managing broker may deem
26appropriate in developing or preparing such analysis or

 

 

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1opinion. The activities of a real estate broker or managing
2broker engaging in the ordinary course of business as a
3broker, as defined in this Section, shall not be considered a
4comparative market analysis if no compensation is paid to the
5broker or managing broker, other than compensation based upon
6the sale or rental of real estate.
7    "Coordinator" means the Real Estate Appraisal Coordinator
8created in Section 25-15.
9    "Department" means the Department of Financial and
10Professional Regulation.
11    "Email address of record" means the designated email
12address recorded by the Department in the applicant's
13application file or the licensee's license file maintained by
14the Department.
15    "Evaluation" means a valuation permitted by the appraisal
16regulations of the Federal Financial Institutions Examination
17Council and its federal agencies for transactions that qualify
18for the appraisal threshold exemption, business loan
19exemption, or subsequent transaction exemption.
20    "Federal financial institutions regulatory agencies" means
21the Board of Governors of the Federal Reserve System, the
22Federal Deposit Insurance Corporation, the Office of the
23Comptroller of the Currency, the Consumer Financial Protection
24Bureau, and the National Credit Union Administration.
25    "Federally related transaction" means any real
26estate-related financial transaction in which a federal

 

 

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1financial institutions regulatory agency engages in, contracts
2for, or regulates and requires the services of an appraiser.
3    "Financial institution" means any bank, savings bank,
4savings and loan association, credit union, mortgage broker,
5mortgage banker, licensee under the Consumer Installment Loan
6Act or the Sales Finance Agency Act, or a corporate fiduciary,
7subsidiary, affiliate, parent company, or holding company of
8any such licensee, or any institution involved in real estate
9financing that is regulated by state or federal law.
10    "Hybrid entity" means an appraisal management company that
11hires an appraiser as an employee to perform an appraisal and
12engages an independent contractor to perform an appraisal.
13    "License" means the privilege conferred by the Department
14to a person that has fulfilled all requirements prerequisite
15to any type of licensure under this Act.
16    "Licensee" means any person licensed under this Act , as
17defined in this Section, who holds a valid unexpired license.
18    "Multi-state licensing system" means a web-based platform
19that allows an applicant to submit the application or license
20renewal application to the Department online.
21    "Person" means an individual, entity, sole proprietorship,
22corporation, limited liability company, partnership, and joint
23venture, foreign or domestic, except that when the context
24otherwise requires, the term may refer to more than one
25individual or other described entity.
26    "Real estate" means an identified parcel or tract of land,

 

 

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1including any improvements.
2    "Real estate related financial transaction" means any
3transaction involving:
4        (1) the sale, lease, purchase, investment in, or
5    exchange of real property, including interests in property
6    or the financing thereof;
7        (2) the refinancing of real property or interests in
8    real property; and
9        (3) the use of real property or interest in property
10    as security for a loan or investment, including mortgage
11    backed securities.
12    "Real property" means the interests, benefits, and rights
13inherent in the ownership of real estate.
14    "Secretary" means the Secretary of Financial and
15Professional Regulation or the Secretary's designee.
16    "State certified general real estate appraiser" means an
17appraiser who holds a license of this classification under
18this Act and such classification applies to the appraisal of
19all types of real property without restrictions as to the
20scope of practice.
21    "State certified residential real estate appraiser" means
22an appraiser who holds a license of this classification under
23this Act and such classification applies to the appraisal of
24one to 4 units of residential real property without regard to
25transaction value or complexity, but with restrictions as to
26the scope of practice in a federally related transaction in

 

 

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1accordance with Title XI, the provisions of USPAP, criteria
2established by the AQB, and further defined by rule.
3    "Supervising appraiser" means either (i) an appraiser who
4holds a valid license under this Act as either a State
5certified general real estate appraiser or a State certified
6residential real estate appraiser, who co-signs an appraisal
7report for an associate real estate trainee appraiser or (ii)
8a State certified general real estate appraiser who holds a
9valid license under this Act who co-signs an appraisal report
10for a State certified residential real estate appraiser on
11properties other than one to 4 units of residential real
12property without regard to transaction value or complexity.
13    "Title XI" means Title XI of the federal Financial
14Institutions Reform, Recovery, and Enforcement Act of 1989.
15    "USPAP" means the Uniform Standards of Professional
16Appraisal Practice as promulgated by the Appraisal Standards
17Board pursuant to Title XI and by rule.
18    "Valuation services" means services pertaining to aspects
19of property value.
20(Source: P.A. 102-20, eff. 1-1-22; 102-687, eff. 12-17-21.)
 
21    (225 ILCS 458/5-25)
22    (Section scheduled to be repealed on January 1, 2027)
23    Sec. 5-25. Renewal of license.
24    (a) The expiration date and renewal period for a State
25certified general real estate appraiser license or a State

 

 

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

 

 

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1this Act shall be set by rule. Except as otherwise provided in
2subsections (e) and (f) of this Section, the holder of an
3associate real estate trainee appraiser license may renew the
4license within 90 days preceding the expiration date by:
5        (1) completing and submitting to the Department, or
6    through a multi-state licensing system as designated by
7    the Secretary, a renewal application form as provided by
8    the Department;
9        (2) paying the required fees; and
10        (3) providing evidence to the Department, or through a
11    multi-state licensing system as designated by the
12    Secretary, of successful completion of the continuing
13    education requirements through courses approved by the
14    Department from education providers approved by the
15    Department, as established by rule.
16    (e) Any associate real estate trainee appraiser whose
17license under this Act has expired may renew the license for a
18period of 2 years following the expiration date by complying
19with the requirements of paragraphs (1), (2), and (3) of
20subsection (d) of this Section and paying any late penalties
21as established by rule.
22    (f) Notwithstanding subsections (c) and (e), an appraiser
23whose license under this Act has expired may renew or convert
24the license without paying any lapsed renewal fees or late
25penalties if the license expired while the appraiser was:
26        (1) on active duty with the United States Armed

 

 

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1    Services;
2        (2) serving as the Coordinator or an employee of the
3    Department who was required to surrender the license
4    during the term of employment.
5    Application for renewal must be made within 2 years
6following the termination of the military service or related
7education, training, or employment and shall include an
8affidavit from the licensee of engagement.
9    (g) The Department shall provide reasonable care and due
10diligence to ensure that each licensee under this Act is
11provided with a renewal application at least 90 days prior to
12the expiration date, but timely renewal or conversion of the
13license prior to its expiration date is the responsibility of
14the licensee.
15    (h) The Department shall not renew a license if the
16licensee has an unpaid fine or fee from a disciplinary matter
17or an unpaid fee from a non-disciplinary action imposed by the
18Department until the fine or fee is paid to the Department or
19the licensee has entered into a payment plan and is current on
20the required payments.
21    (i) The Department shall not issue a license if the
22applicant has an unpaid fine imposed by the Department for
23unlicensed practice until the fine is paid to the Department
24or the applicant has entered into a payment plan and is current
25on the required payments.
26(Source: P.A. 101-81, eff. 7-12-19; 102-20, eff. 1-1-22.)
 

 

 

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1    (225 ILCS 458/15-15)
2    (Section scheduled to be repealed on January 1, 2027)
3    Sec. 15-15. Investigation; notice; hearing.
4    (a) Upon the motion of the Department or the Board or upon
5a complaint in writing of a person setting forth facts that, if
6proven, would constitute grounds for suspension, revocation,
7or other disciplinary action against a licensee or applicant
8for licensure, the Department shall investigate the actions of
9the licensee or applicant. If, upon investigation, the
10Department believes that there may be cause for suspension,
11revocation, or other disciplinary action, the Department shall
12use the services of a State certified general real estate
13appraiser, a State certified residential real estate
14appraiser, or the Real Estate Coordinator to assist in
15determining whether grounds for disciplinary action exist
16prior to commencing formal disciplinary proceedings.
17    (b) Formal disciplinary proceedings shall commence upon
18the issuance of a written complaint describing the charges
19that are the basis of the disciplinary action and delivery of
20the detailed complaint to the address of record of the
21licensee or applicant. For an associate real estate trainee
22appraiser, a copy shall also be sent to the licensee's
23supervising appraiser of record. The Department shall notify
24the licensee or applicant to file a verified written answer
25within 20 days after the service of the notice and complaint.

 

 

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

 

 

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1trainee appraisers, a copy shall also be sent to the
2licensee's supervising appraiser of record. Within 20 days
3after the service, the licensee or applicant may present the
4Secretary with a motion in writing for a rehearing and shall
5specify the particular grounds for the request. If the accused
6orders a transcript of the record as provided in this Act, the
7time elapsing thereafter and before the transcript is ready
8for delivery to the accused shall not be counted as part of the
920 days. If the Secretary is not satisfied that substantial
10justice has been done, the Secretary may order a rehearing by
11the Board or other special committee appointed by the
12Secretary, may remand the matter to the Board for its
13reconsideration of the matter based on the pleadings and
14evidence presented to the Board, or may enter a final order in
15contravention of the Board's recommendation. Notwithstanding a
16licensee's or applicant's failure to file a motion for
17rehearing, the Secretary shall have the right to take any of
18the actions specified in this subsection (d). Upon the
19suspension or revocation of a license, the licensee shall be
20required to surrender the respective license to the
21Department, and upon failure or refusal to do so, the
22Department shall have the right to seize the license.
23    (e) The Department has the power to issue subpoenas and
24subpoenas duces tecum to bring before it any person in this
25State, to take testimony, or to require production of any
26records relevant to an inquiry or hearing by the Board in the

 

 

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

 

 

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1to have the proceedings transcribed by a certified shorthand
2reporter. A copy of the transcribed proceedings shall be made
3available to the licensee by the certified shorthand reporter
4upon payment of the prevailing contract copy rate.
5(Source: P.A. 102-20, eff. 1-1-22.)
 
6    (225 ILCS 458/25-10)
7    (Section scheduled to be repealed on January 1, 2027)
8    Sec. 25-10. Real Estate Appraisal Administration and
9Disciplinary Board; appointment.
10    (a) There is hereby created the Real Estate Appraisal
11Administration and Disciplinary Board. The Board shall be
12composed of the Coordinator and 10 persons appointed by the
13Governor. Members shall be appointed to the Board subject to
14the following conditions:
15        (1) All appointed members shall have been residents
16    and citizens of this State for at least 5 years prior to
17    the date of appointment.
18        (2) The appointed membership of the Board should
19    reasonably reflect the geographic distribution of the
20    population of the State.
21        (3) Four appointed members shall have been actively
22    engaged and currently licensed as State certified general
23    real estate appraisers for a period of not less than 5
24    years.
25        (4) Three appointed members shall have been actively

 

 

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

 

 

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1the real estate industry.
2    In making the appointment as provided in paragraph (6) of
3this subsection, the Governor shall give due consideration to
4the recommendations by members and organizations representing
5financial institutions.
6    (b) The members' terms shall be for 4 years or until a
7successor is appointed. No member shall be reappointed to the
8Board for a term that would cause the member's cumulative
9service to the Board to exceed 10 years. Appointments to fill
10vacancies shall be for the unexpired portion of the term.
11    (c) The Governor may terminate the appointment of a member
12for cause that, in the opinion of the Governor, reasonably
13justifies the termination. Cause for termination may include,
14without limitation, misconduct, incapacity, neglect of duty,
15or missing 4 Board meetings during any one fiscal year.
16    (d) A majority of the Board members shall constitute a
17quorum. A vacancy in the membership of the Board shall not
18impair the right of a quorum to exercise all of the rights and
19perform all of the duties of the Board.
20    (e) The Board shall meet at least monthly and may be
21convened by the Chairperson, Vice-Chairperson, or 3 members of
22the Board upon 10 days written notice.
23    (f) The Board shall, annually at the first meeting of the
24fiscal year, elect a Chairperson and Vice-Chairperson from its
25members. The Chairperson shall preside over the meetings and
26shall coordinate with the Coordinator in developing and

 

 

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

 

 

HB5167 Engrossed- 124 -LRB102 25439 SPS 34725 b

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

 

 

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1must be provided to the Board by the Department.
2    (o) (Blank).
3(Source: P.A. 102-20, eff. 1-1-22.)
 
4    Section 50. The Appraisal Management Company Registration
5Act is amended by changing Sections 40, 47, and 67 as follows:
 
6    (225 ILCS 459/40)
7    Sec. 40. Qualifications for registration.
8    (a) The Department may issue a certification of
9registration to practice under this Act to any applicant who
10is qualified to do business in this State and applies to the
11Department on forms provided by the Department, or through a
12multi-state licensing system as designated by the Secretary,
13pays the required non-refundable fees, is qualified to
14transact business in this State, and provides the following:
15        (1) the business name of the applicant seeking
16    registration;
17        (2) the business address or addresses and contact
18    information of the applicant seeking registration;
19        (3) if the business applicant is not a corporation
20    that is domiciled in this State, then the name and contact
21    information for the company's agent for service of process
22    in this State;
23        (4) the name, address, and contact information for any
24    individual or any corporation, partnership, limited

 

 

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1    liability company, association, or other business
2    applicant that owns 10% or more of the appraisal
3    management company along with a completed criminal history
4    records background check as required in Section 68;
5        (5) the name, address, and contact information for a
6    designated controlling person;
7        (6) a certification that the applicant will utilize
8    Illinois licensed appraisers to provide appraisal services
9    within the State of Illinois;
10        (7) a certification that the applicant has a system in
11    place utilizing a licensed Illinois appraiser to review
12    the work of all employed and independent appraisers that
13    are performing real estate appraisal services in Illinois
14    for the appraisal management company on a periodic basis,
15    except for a quality control review, to verify that the
16    real estate appraisal assignments are being conducted in
17    accordance with USPAP;
18        (8) a certification that the applicant maintains a
19    detailed record of each service request that it receives
20    and the independent appraiser that performs the real
21    estate appraisal services for the appraisal management
22    company;
23        (9) a certification that the employees of the
24    appraisal management company working on behalf of the
25    appraisal management company directly involved in
26    providing appraisal management services, will be

 

 

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1    appropriately trained and familiar with the appraisal
2    process to completely provide appraisal management
3    services;
4        (10) an irrevocable Uniform Consent to Service of
5    Process, under rule; and
6        (11) a certification that the applicant shall comply
7    with all other requirements of this Act and rules
8    established for the implementation of this Act.
9    (b) Applicants have 3 years from the date of application
10to complete the application process. If the process has not
11been completed in 3 years, the application shall be denied,
12the fee shall be forfeited, and the applicant must reapply and
13meet the requirements in effect at the time of reapplication.
14(Source: P.A. 100-604, eff. 7-13-18.)
 
15    (225 ILCS 459/47)
16    Sec. 47. Report Annual report; investigation; costs. Each
17registrant shall provide annually file a report with the
18Secretary for the calendar year period from January 1 through
19December 31, giving relevant information as the Secretary may
20reasonably require concerning, and for the purpose of
21examination for compliance with federal and State regulations,
22the business and operations during the preceding fiscal year
23period of each registered appraisal management company
24conducted by the registrant within the State. The Secretary
25may, at any time, examine the books and records of an appraisal

 

 

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1management company operating in the State and require the
2appraisal management company to submit reports, information
3and documents. The report shall be made under oath and shall be
4in the form prescribed by rule. The Secretary may, at any time,
5investigate a registrant and every person, partnership,
6association, limited liability company, corporation, or other
7business entity who or which is engaged in the business of
8operating an appraisal management company. For that purpose,
9the Secretary shall have free access to the offices and places
10of business and to records of all persons, firms,
11partnerships, associations, limited liability companies and
12members thereof, and corporations and to the officers and
13directors thereof that relate to the appraisal management
14company. The investigation may be conducted in conjunction
15with representatives of other State agencies or agencies of
16another state or of the United States as determined by the
17Secretary. The Secretary may require by subpoena the
18attendance of and examine under oath all persons whose
19testimony the Secretary he or she may require relative to the
20appraisal management company, and, in those cases, the
21Secretary, or a designee of the Secretary representative whom
22he or she may designate, may administer oaths to all persons
23called as witnesses, and the Secretary, or a representative of
24the Secretary, may conduct an audit, and there shall be paid to
25the Secretary for each audit a fee, to be established by rule,
26for each day or part thereof for each representative

 

 

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1designated and required to conduct the audit.
2(Source: P.A. 100-604, eff. 7-13-18.)
 
3    (225 ILCS 459/67)
4    Sec. 67. Good moral character. If an applicant,
5registrant, controlling person, or any person with an
6ownership interest in of the applicant or registrant, has had
7a license or registration revoked on a prior occasion, has
8been found to have committed any of the practices enumerated
9in Section 65, has been convicted of or entered a plea of
10guilty or nolo contendere to forgery, embezzlement, obtaining
11money under false pretenses, larceny, extortion, conspiracy to
12defraud, or a similar offense or offenses, or has been
13convicted of a felony involving moral turpitude in a court of
14competent jurisdiction in this State or any other state,
15district, or territory of the United States or of a foreign
16country, the Department may consider the prior revocation,
17conduct, or conviction in its determination of the applicant's
18moral character of the applicant, registrant, controlling
19person, or person with ownership interest and whether to grant
20the applicant's registration or renewal. In its consideration
21of the prior revocation, conduct, or conviction, the
22Department shall take into account the nature of the conduct,
23any aggravating or extenuating circumstances, the time elapsed
24since the revocation, conduct, or conviction, the
25rehabilitation or restitution performed by the applicant, and

 

 

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1any other factors that the Department deems relevant. When an
2applicant, registrant, controlling person, or person with
3ownership interest has made a false statement of material fact
4on any his or her application, the false statement may in
5itself be sufficient grounds to revoke or refuse to issue or
6renew a registration.
7(Source: P.A. 100-604, eff. 7-13-18.)
 
8    (225 ILCS 459/68 rep.)
9    Section 55. The Appraisal Management Company Registration
10Act is amended by repealing Section 68.
 
11    Section 60. The Professional Limited Liability Company Act
12is amended by changing Section 13 as follows:
 
13    (805 ILCS 185/13)
14    Sec. 13. Nature of business.
15    (a) A professional limited liability company may be formed
16to provide a professional service or services licensed by the
17Department except:
18        (1) the practice of dentistry unless all the members
19    and managers are licensed as dentists under the Illinois
20    Dental Practice Act;
21        (2) the practice of medicine unless all the managers,
22    if any, are licensed to practice medicine under the
23    Medical Practice Act of 1987 and each member is either:

 

 

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1            (A) licensed to practice medicine under the
2        Medical Practice Act of 1987;
3            (B) a registered medical corporation or
4        corporations organized pursuant to the Medical
5        Corporation Act;
6            (C) a professional corporation organized pursuant
7        to the Professional Service Corporation Act of
8        physicians licensed to practice under the Medical
9        Practice Act of 1987;
10            (D) a hospital or hospital affiliate as defined in
11        Section 10.8 of the Hospital Licensing Act; or
12            (E) a professional limited liability company that
13        satisfies the requirements of subparagraph (A), (B),
14        (C), or (D);
15        (3) the practice of real estate unless all the members
16    and managers, if any, that actively participate in the
17    real estate activities of the professional limited
18    liability company or every member in a member-managed
19    company are licensed to practice as a managing broker or
20    broker pursuant to the Real Estate License Act of 2000.
21    All nonparticipating members or managers shall submit
22    affidavits of nonparticipation as required by the
23    Department and the Real Estate License Act of 2000;
24        (4) the practice of clinical psychology unless all the
25    managers and members are licensed to practice as a
26    clinical psychologist under the Clinical Psychologist

 

 

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1    Licensing Act;
2        (5) the practice of social work unless all the
3    managers and members are licensed to practice as a
4    clinical social worker or social worker under the Clinical
5    Social Work and Social Work Practice Act;
6        (6) the practice of marriage and family therapy unless
7    all the managers and members are licensed to practice as a
8    marriage and family therapist under the Marriage and
9    Family Therapy Licensing Act;
10        (7) the practice of professional counseling unless all
11    the managers and members are licensed to practice as a
12    clinical professional counselor or a professional
13    counselor under the Professional Counselor and Clinical
14    Professional Counselor Licensing and Practice Act;
15        (8) the practice of sex offender evaluation and
16    treatment unless all the managers and members are licensed
17    to practice as a sex offender evaluator or sex offender
18    treatment provider under the Sex Offender Evaluation and
19    Treatment Provider Act; or
20        (9) the practice of veterinary medicine unless all the
21    managers and members are licensed to practice as a
22    veterinarian under the Veterinary Medicine and Surgery
23    Practice Act of 2004.
24    (b) Notwithstanding any provision of this Section, any of
25the following professional services may be combined and
26offered within a single professional limited liability company

 

 

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1provided that each professional service is offered only by
2persons licensed to provide that professional service and all
3managers and members are licensed in at least one of the
4professional services offered by the professional limited
5liability company:
6        (1) the practice of medicine by physicians licensed
7    under the Medical Practice Act of 1987, the practice of
8    podiatry by podiatric physicians licensed under the
9    Podiatric Medical Practice Act of 1987, the practice of
10    dentistry by dentists licensed under the Illinois Dental
11    Practice Act, and the practice of optometry by
12    optometrists licensed under the Illinois Optometric
13    Practice Act of 1987; or
14        (2) the practice of clinical psychology by clinical
15    psychologists licensed under the Clinical Psychologist
16    Licensing Act, the practice of social work by clinical
17    social workers or social workers licensed under the
18    Clinical Social Work and Social Work Practice Act, the
19    practice of marriage and family counseling by marriage and
20    family therapists licensed under the Marriage and Family
21    Therapy Licensing Act, the practice of professional
22    counseling by professional counselors and clinical
23    professional counselors licensed under the Professional
24    Counselor and Clinical Professional Counselor Licensing
25    and Practice Act, and the practice of sex offender
26    evaluation and treatment by sex offender evaluators and

 

 

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1    sex offender treatment providers licensed under the Sex
2    Offender Evaluation and Treatment Provider Act; .
3        (3) the practice of architecture by persons licensed
4    under the Illinois Architecture Practice Act of 1989, the
5    practice of professional engineering by persons licensed
6    under the Professional Engineering Practice Act of 1989,
7    the practice of structural engineering by persons licensed
8    under the Structural Engineering Practice Act of 1989, and
9    the practice of land surveying by persons licensed under
10    the Illinois Professional Land Surveyor Act of 1989; or
11        (4) the practice of acupuncture by persons licensed
12    under the Acupuncture Practice Act, the practice of
13    massage by persons licensed under the Massage Licensing
14    Act, the practice of naprapathy by persons licensed under
15    the Naprapathic Practice Act, the practice of occupational
16    therapy by persons licensed under the Illinois
17    Occupational Therapy Practice Act, the practice of
18    physical therapy by persons licensed under the Illinois
19    Physical Therapy Act, and the practice of speech-language
20    pathology by persons licensed under the Illinois
21    Speech-Language Pathology and Audiology Practice Act.
22(Source: P.A. 100-894, eff. 8-14-18.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law, except that Section 10 takes effect on July 1,
252023.

 

 

HB5167 Engrossed- 135 -LRB102 25439 SPS 34725 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/5.970 new
4    30 ILCS 105/5.557 rep.
5    30 ILCS 105/5.558 rep.
6    30 ILCS 105/5.742 rep.
7    225 ILCS 407/10-5
8    225 ILCS 407/10-30
9    225 ILCS 407/10-50
10    225 ILCS 407/20-11 new
11    225 ILCS 407/20-15
12    225 ILCS 407/20-15.1 new
13    225 ILCS 407/20-16 new
14    225 ILCS 407/20-95
15    225 ILCS 407/20-105 new
16    225 ILCS 407/30-13
17    225 ILCS 407/30-30
18    225 ILCS 427/10
19    225 ILCS 427/25
20    225 ILCS 427/55
21    225 ILCS 427/60
22    225 ILCS 427/65
23    225 ILCS 441/1-10
24    225 ILCS 441/5-16
25    225 ILCS 441/5-17

 

 

HB5167 Engrossed- 136 -LRB102 25439 SPS 34725 b

1    225 ILCS 441/15-5
2    225 ILCS 441/15-11 new
3    225 ILCS 441/25-5
4    225 ILCS 454/1-10
5    225 ILCS 454/5-10
6    225 ILCS 454/5-25
7    225 ILCS 454/5-45
8    225 ILCS 454/5-50
9    225 ILCS 454/5-70
10    225 ILCS 454/15-35
11    225 ILCS 454/15-45
12    225 ILCS 454/20-20
13    225 ILCS 454/20-20.1
14    225 ILCS 454/20-69
15    225 ILCS 454/20-75
16    225 ILCS 454/20-110
17    225 ILCS 454/25-10
18    225 ILCS 454/25-38 new
19    225 ILCS 454/30-15
20    225 ILCS 454/30-25
21    225 ILCS 454/20-21 rep.
22    225 ILCS 456/Act rep.
23    225 ILCS 458/1-10
24    225 ILCS 458/5-25
25    225 ILCS 458/25-10
26    225 ILCS 459/40

 

 

HB5167 Engrossed- 137 -LRB102 25439 SPS 34725 b

1    225 ILCS 459/47
2    225 ILCS 459/67
3    225 ILCS 459/68 rep.
4    805 ILCS 185/13