SB1539 EnrolledLRB097 08574 CEL 48701 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 1. Short title. This Act may be cited as the
5Appraisal Management Company Registration Act.
 
6    Section 5. Findings. The General Assembly finds that: It
7is the intent of the General Assembly that this Act provide for
8the regulation of those persons or entities engaged as
9appraisal management companies for the protection of the public
10and for the maintenance of high standards of professional
11conduct by those registered as appraisal management companies
12and to ensure appraisal independence in the determination of
13real estate valuations.
 
14    Section 10. Definitions. In this Act:
15    "Address of record" means the designated address recorded
16by the Department in the applicant's or registrant's
17application file or registration file maintained by the
18Department's registration maintenance unit. It is the duty of
19the applicant or registrant to inform the Department of any
20change of address, and the changes must be made either through
21the Department's website or by contacting the Department's
22registration maintenance unit within a prescribed time period

 

 

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1as defined by rule.
2    "Applicant" means a person or entity who applies to the
3Department for a registration under this Act.
4    "Appraisal" means (noun) the act or process of developing
5an opinion of value; an opinion of value (adjective) of or
6pertaining to appraising and related functions.
7    "Appraisal firm" means an appraisal entity that is 100%
8owned and controlled by a person or persons licensed in
9Illinois as a certified general real estate appraiser or a
10certified residential real estate appraiser. An appraisal firm
11does not include an appraisal management company.
12    "Appraisal management company" means any corporation,
13limited liability company, partnership, sole proprietorship,
14subsidiary, unit, or other business entity that directly or
15indirectly performs the following appraisal management
16services: (1) administers networks of independent contractors
17or employee appraisers to perform real estate appraisal
18assignments for clients; (2) receives requests for real estate
19appraisal services from clients and, for a fee paid by the
20client, enters into an agreement with one or more independent
21appraisers to perform the real estate appraisal services
22contained in the request; or (3) otherwise serves as a
23third-party broker of appraisal management services between
24clients and appraisers.
25    "Appraisal report" means a written appraisal by an
26appraiser to a client.

 

 

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1    "Appraisal practice service" means valuation services
2performed by an individual acting as an appraiser, including,
3but not limited to, appraisal, appraisal review, or appraisal
4consulting.
5    "Appraiser" means a person who performs real estate or real
6property appraisals.
7    "Assignment result" means an appraiser's opinions and
8conclusions developed specific to an assignment.
9    "Board" means the Real Estate Appraisal Administration and
10Disciplinary Board.
11    "Client" means the party or parties who engage an appraiser
12by employment or contract in a specific appraisal assignment.
13    "Controlling Person" means:
14        (1) an owner, officer, or director of an entity seeking
15    to offer appraisal management services;
16        (2) an individual employed, appointed, or authorized
17    by an appraisal management company who has the authority
18    to:
19            (A) enter into a contractual relationship with a
20        client for the performance of an appraisal management
21        service or appraisal practice service; and
22            (B) enter into an agreement with an appraiser for
23        the performance of a real estate appraisal activity; or
24        (3) an individual who possesses, directly or
25    indirectly, the power to direct or cause the direction of
26    the management or policies of an appraisal management

 

 

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1    company.
2    "Coordinator" means the Coordinator of the Appraisal
3Management Company Registration Unit of the Department or his
4or her designee.
5    "Department" means the Department of Financial and
6Professional Regulation.
7    "Entity" means a corporation, a limited liability company,
8partnership, a sole proprietorship, or other entity providing
9services or holding itself out to provide services as an
10appraisal management company or an appraisal management
11service.
12    "End-user client" means any person who utilizes or engages
13the services of an appraiser through an appraisal management
14company.
15    "Financial institution" means any bank, savings bank,
16savings and loan association, credit union, mortgage broker,
17mortgage banker, registrant under the Consumer Installment
18Loan Act or the Sales Finance Agency Act, or a corporate
19fiduciary, subsidiary, affiliate, parent company, or holding
20company of any registrant, or any institution involved in real
21estate financing that is regulated by State or federal law.
22    "Person" means individuals, entities, sole
23proprietorships, corporations, limited liability companies,
24and partnerships, foreign or domestic, except that when the
25context otherwise requires, the term may refer to a single
26individual or other described entity.

 

 

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1    "Quality control review" means a review of an appraisal
2report for compliance and completeness, including grammatical,
3typographical, or other similar errors, unrelated to
4developing an opinion of value.
5    "Real estate" means an identified parcel or tract of land,
6including any improvements.
7    "Real estate related financial transaction" means any
8transaction involving:
9        (1) the sale, lease, purchase, investment in, or
10    exchange of real property, including interests in property
11    or the financing thereof;
12        (2) the refinancing of real property or interests in
13    real property; and
14        (3) the use of real property or interest in property as
15    security for a loan or investment, including mortgage
16    backed securities.
17    "Real property" means the interests, benefits, and rights
18inherent in the ownership of real estate.
19    "Secretary" means the Secretary of Financial and
20Professional Regulation.
21    "USPAP" means the Uniform Standards of Professional
22Appraisal Practice as adopted by the Appraisal Standards Board
23under Title XI.
24    "Valuation" means any estimate of the value of real
25property in connection with a creditor's decision to provide
26credit, including those values developed under a policy of a

 

 

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

 

 

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1    may not avoid the requirement of registration under this
2    Act by requiring an employee of the appraisal management
3    company who is an appraiser to sign an appraisal that was
4    completed by another appraiser who is part of the appraisal
5    panel of the appraisal management company;
6        (6) any person acting as an agent of the Illinois
7    Department of Transportation in the acquisition or
8    relinquishment of land for transportation issues to the
9    extent of their contract scope; or
10        (7) a design professional entity when the appraisal is
11    not used for mortgage purposes and the end user client is
12    an agency of State government or a unit of local
13    government.
14    In the event that the Final Interim Rule of the federal
15Dodd-Frank Wall Street Reform and Consumer Protection Act
16provides that an appraisal management company is a subsidiary
17owned and controlled by a financial institution regulated by a
18federal financial institution's regulatory agency and is
19exempt from State appraisal management company registration
20requirements, the Department, shall, by rule, provide for the
21implementation of such an exemption.
 
22    Section 20. Restrictions and limitations. Beginning
23January 1, 2012, it is unlawful for a person or entity to act
24or assume to act as an appraisal management company as defined
25in this Act, to engage in the business of appraisal management

 

 

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1service, or to advertise or hold himself or herself out to be a
2registered appraisal management company without first
3obtaining a registration issued by the Department under this
4Act. A person or entity that violates this Section is guilty of
5a Class A misdemeanor for the first offense and a Class 4
6felony for second and subsequent offenses.
7    Persons practicing as an appraisal management company in
8Illinois as of the effective date of this Act may continue to
9practice as provided in this Act until the Department has
10adopted rules implementing this Act. To continue practicing as
11an appraisal management company after the adoption of rules,
12persons shall apply for registration within 180 days after the
13effective date of the rules. If an application is received
14during the 180-day period, the person may continue to practice
15until the Department acts to grant or deny registration. If an
16application is not filed within the 180-day period, the person
17must cease the practice at the conclusion of the 180-day period
18and until the Department acts to grant a registration to the
19person.
 
20    Section 25. Powers and duties of the Department. Subject
21to the provisions of this Act:
22        (1) The Department may ascertain the qualifications
23    and fitness of applicants for registration and pass upon
24    the qualifications of applicants for registration.
25        (2) The Department may conduct hearings on proceedings

 

 

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1    to refuse to issue or renew or to revoke registrations or
2    suspend, place on probation, or reprimand persons or
3    otherwise discipline individuals or entities subject to
4    this Act.
5        (3) The Department may formulate all rules required for
6    the administration of this Act. With the exception of
7    emergency rules, any proposed rules, amendments, second
8    notice materials, and adopted rule or amendment materials
9    or policy statements concerning appraisal management
10    companies shall be presented to the Real Estate Appraisal
11    Administration and Disciplinary Board for review and
12    comment. The recommendations of the Board shall be
13    presented to the Secretary for consideration in making
14    final decisions.
15        (4) The Department may maintain rosters of the names
16    and addresses of all registrants, and all persons whose
17    registrations have been suspended, revoked, or denied
18    renewal for cause within the previous calendar year or
19    otherwise disciplined. These rosters shall be available
20    upon written request and payment of the required fee as
21    established by rule.
 
22    Section 30. Coordinator of Appraisal Management Company
23Registration. The Coordinator of Real Estate Appraisal shall
24serve as the Coordinator of Appraisal Management Company
25Registration. The Coordinator shall have the same duties and

 

 

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1responsibilities in regards to appraisal management company
2registration as the Coordinator has in regards to appraisal
3licensure as set forth in the Real Estate Appraiser Licensing
4Act of 2002.
 
5    Section 35. Application for original registration.
6Applications for original registration shall be made to the
7Department on forms prescribed by the Department and
8accompanied by the required fee. All applications shall contain
9the information that, in the judgment of the Department, will
10enable the Department to pass on the qualifications of the
11applicant to be registered to practice as set by rule.
 
12    Section 40. Qualifications for registration.
13    (a) The Department may issue a certification of
14registration to practice under this Act to any applicant who
15applies to the Department on forms provided by the Department,
16pays the required non-refundable fee, and who provides the
17following:
18        (1) the business name of the applicant seeking
19    registration;
20        (2) the business address or addresses and contact
21    information of the applicant seeking registration;
22        (3) if the business applicant is not a corporation that
23    is domiciled in this State, then the name and contact
24    information for the company's agent for service of process

 

 

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

 

 

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1    appraisal management services, will be appropriately
2    trained and familiar with the appraisal process to
3    completely provide appraisal management 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 to
10complete the application process. If the process has not been
11completed in 3 years, the application shall be denied, the fee
12shall be forfeited, and the applicant must reapply and meet the
13requirements in effect at the time of reapplication.
 
14    Section 45. Expiration and renewal of registration. The
15expiration date and renewal period for each registration shall
16be set by rule. A registrant whose registration has expired may
17reinstate his or her registration at any time within 5 years
18after the expiration thereof, by making a renewal application
19and by paying the required fee.
20    Any registrant whose registration has expired for more than
215 years may have it restored by making application to the
22Department, paying the required fee, and filing acceptable
23proof of fitness to have the registration restored as set by
24rule.
 

 

 

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1    Section 50. Bonds of registrants. All registrants shall
2maintain a bond in accordance with this Section. Each bond
3shall be for the recovery of expenses, fines, or fees due to or
4levied by the Department in accordance with this Act. The bond
5shall be payable when the registrant fails to comply with any
6provisions of this Act and shall be in the form of a surety
7bond in the amount of $25,000 as prescribed by the Department
8by rule. The bond shall be payable to the Department and shall
9be issued by an insurance company authorized to do business in
10this State. A copy of the bond, including any and all riders
11and endorsements executed subsequent to the effective date of
12the bond, shall be placed on file with the Department within 10
13days of the execution thereof. The bond may only be used for
14the recovery of expenses or the collection of fines or fees due
15to or levied by the Department and is not to be utilized for
16any other purpose.
 
17    Section 55. Fees.
18    (a) The fees for the administration and enforcement of this
19Act, including, but not limited to, original registration,
20renewal, and restoration fees, shall be set by the Department
21by rule. The fees shall not be refundable.
22    (b) All fees and other moneys collected under this Act
23shall be deposited in the Appraisal Administration Fund.
 
24    Section 60. Returned checks; fines. Any person who

 

 

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1delivers a check or other payment to the Department that is
2returned to the Department unpaid by the financial institution
3upon which it is drawn shall pay to the Department, in addition
4to the amount already owed to the Department, a fine of $50.
5The fines imposed by this Section are in addition to any other
6discipline provided under this Act for unregistered practice or
7practice on a nonrenewed registration. The Department shall
8notify the person that payment of fees and fines shall be paid
9to the Department by certified check or money order within 30
10calendar days of the notification. If, after the expiration of
1130 days after the date of the notification, the person has
12failed to submit the necessary remittance, the Department shall
13automatically terminate the registration or deny the
14application, without hearing. If, after termination or denial,
15the person seeks a registration, he or she shall apply to the
16Department for restoration or issuance of the registration and
17pay all fees and fines due to the Department. The Department
18may establish a fee for the processing of an application for
19restoration of a registration to pay all expenses of processing
20this application. The Secretary may waive the fines due under
21this Section in individual cases where the Secretary finds that
22the fines would be unreasonable or unnecessarily burdensome.
 
23    Section 65. Disciplinary actions.
24    (a) The Department may refuse to issue or renew, or may
25revoke, suspend, place on probation, reprimand, or take other

 

 

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1disciplinary or non-disciplinary action as the Department may
2deem appropriate, including imposing fines not to exceed
3$25,000 for each violation, with regard to any registration for
4any one or combination of the following:
5        (1) Material misstatement in furnishing information to
6    the Department.
7        (2) Violations of this Act, or of the rules adopted
8    under this Act.
9        (3) Conviction of, or entry of a plea of guilty or nolo
10    contendere to any crime that is a felony under the laws of
11    the United States or any state or territory thereof or that
12    is a misdemeanor of which an essential element is
13    dishonesty, or any crime that is directly related to the
14    practice of the profession.
15        (4) Making any misrepresentation for the purpose of
16    obtaining registration or violating any provision of this
17    Act or the rules adopted under this Act pertaining to
18    advertising.
19        (5) Professional incompetence.
20        (6) Gross malpractice.
21        (7) Aiding or assisting another person in violating any
22    provision of this Act or rules adopted under this Act.
23        (8) Failing, within 30 days after requested, to provide
24    information in response to a written request made by the
25    Department.
26        (9) Engaging in dishonorable, unethical, or

 

 

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1    unprofessional conduct of a character likely to deceive,
2    defraud, or harm the public.
3        (10) Discipline by another state, District of
4    Columbia, territory, or foreign nation, if at least one of
5    the grounds for the discipline is the same or substantially
6    equivalent to those set forth in this Section.
7        (11) A finding by the Department that the registrant,
8    after having his or her registration placed on probationary
9    status, has violated the terms of probation.
10        (12) Willfully making or filing false records or
11    reports in his or her practice, including, but not limited
12    to, false records filed with State agencies or departments.
13        (13) Filing false statements for collection of fees for
14    which services are not rendered.
15        (14) Practicing under a false or, except as provided by
16    law, an assumed name.
17        (15) Fraud or misrepresentation in applying for, or
18    procuring, a registration under this Act or in connection
19    with applying for renewal of a registration under this Act.
20        (16) Being adjudicated liable in a civil proceeding for
21    violation of a state or federal fair housing law.
22        (17) Failure to obtain or maintain the bond required
23    under Section 50 of this Act.
24    (b) The Department may refuse to issue or may suspend
25without hearing as provided for in the Civil Administrative
26Code the registration of any person who fails to file a return,

 

 

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1or to pay the tax, penalty or interest shown in a filed return,
2or to pay any final assessment of the tax, penalty, or interest
3as required by any tax Act administered by the Illinois
4Department of Revenue, until such time as the requirements of
5any such tax Act are satisfied.
 
6    Section 70. Injunctive action; cease and desist order.
7    (a) If any person violates the provisions of this Act, the
8Secretary, in the name of the People of the State of Illinois,
9through the Attorney General or the State's Attorney of the
10county in which the violation is alleged to have occurred, may
11petition for an order enjoining the violation or for an order
12enforcing compliance with this Act. Upon the filing of a
13verified petition, the court with appropriate jurisdiction may
14issue a temporary restraining order, without notice or bond,
15and may preliminarily and permanently enjoin the violation. If
16it is established that the person has violated or is violating
17the injunction, the court may punish the offender for contempt
18of court. Proceedings under this Section are in addition to,
19and not in lieu of, all other remedies and penalties provided
20by this Act.
21    (b) Whenever, in the opinion of the Department, a person
22violates any provision of this Act, the Department may issue a
23rule to show cause why an order to cease and desist should not
24be entered against that person. The rule shall clearly set
25forth the grounds relied upon by the Department and shall allow

 

 

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1at least 7 days from the date of the rule to file an answer
2satisfactory to the Department. Failure to answer to the
3satisfaction of the Department shall cause an order to cease
4and desist to be issued.
 
5    Section 75. Investigations; notice and hearing. The
6Department may investigate the actions of any applicant or of
7any person or persons rendering or offering to render any
8services requiring registration under this Act or any person
9holding or claiming to hold a registration as an appraisal
10management company. The Department shall, before revoking,
11suspending, placing on probation, reprimanding, or taking any
12other disciplinary or non-disciplinary action under Section 65
13of this Act, at least 30 days before the date set for the
14hearing, (i) notify the accused in writing of the charges made
15and the time and place for the hearing on the charges, (ii)
16direct him or her to file a written answer to the charges with
17the Department under oath within 20 days after the service on
18him or her of the notice, and (iii) inform the accused that, if
19he or she fails to answer, default will be taken against him or
20her or that his or her registration may be suspended, revoked,
21placed on probationary status, or other disciplinary action
22taken with regard to the registration, including limiting the
23scope, nature, or extent of his or her practice, as the
24Department may consider proper. At the time and place fixed in
25the notice, the Department shall proceed to hear the charges

 

 

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1and the parties or their counsel shall be accorded ample
2opportunity to present any pertinent statements, testimony,
3evidence, and arguments. The Department may continue the
4hearing from time to time. In case the person, after receiving
5the notice, fails to file an answer, his or her registration
6may, in the discretion of the Department, be suspended,
7revoked, placed on probationary status, or the Department may
8take whatever disciplinary action considered proper, including
9limiting the scope, nature, or extent of the person's practice
10or the imposition of a fine, without a hearing, if the act or
11acts charged constitute sufficient grounds for that action
12under this Act. The written notice may be served by personal
13delivery or by certified mail to the address specified by the
14accused in his or her last notification with the Department.
 
15    Section 80. Record of proceedings; transcript. The
16Department, at its expense, shall preserve a record of all
17proceedings at the formal hearing of any case. The notice of
18hearing, complaint, all other documents in the nature of
19pleadings, written motions filed in the proceedings, the
20transcripts of testimony, the report of the hearing officer,
21and orders of the Department shall be in the record of the
22proceeding. The Department shall furnish a transcript of the
23record to any person interested in the hearing upon payment of
24the fee required under Section 2105-115 of the Department of
25Professional Regulation Law.
 

 

 

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1    Section 85. Subpoenas; depositions; oaths. The Department
2has the power to subpoena documents, books, records, or other
3materials and to bring before it any person and to take
4testimony either orally or by deposition, or both, with the
5same fees and mileage and in the same manner as prescribed in
6civil cases in the courts of this State.
7    The Secretary and the designated hearing officer have the
8power to administer oaths to witnesses at any hearing that the
9Department is authorized to conduct, and any other oaths
10authorized in any Act administered by the Department.
 
11    Section 90. Compelling testimony. Any circuit court, upon
12application of the Department or designated hearing officer may
13enter an order requiring the attendance of witnesses and their
14testimony, and the production of documents, papers, files,
15books, and records in connection with any hearing or
16investigation. The court may compel obedience to its order by
17proceedings for contempt.
 
18    Section 95. Findings and recommendations. At the
19conclusion of the hearing, the designated hearing officer shall
20present to the Secretary a written report of his or her
21findings of fact, conclusions of law, and recommendations. The
22report shall contain a finding whether or not the accused
23person violated this Act or its rules or failed to comply with

 

 

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1the conditions required in this Act or its rules. The hearing
2officer shall specify the nature of any violations or failure
3to comply and shall make his or her recommendations to the
4Secretary. In making recommendations for any disciplinary
5actions, the hearing officer may take into consideration all
6facts and circumstances bearing upon the reasonableness of the
7conduct of the accused and the potential for future harm to the
8public, including, but not limited to, previous discipline of
9the accused by the Department, intent, degree of harm to the
10public and likelihood of harm in the future, any restitution
11made by the accused, and whether the incident or incidents
12contained in the complaint appear to be isolated or represent a
13continuing pattern of conduct. In making his or her
14recommendations for discipline, the hearing officer shall
15endeavor to ensure that the severity of the discipline
16recommended is reasonably related to the severity of the
17violation. The report of findings of fact, conclusions of law,
18and recommendation of the hearing officer shall be the basis
19for the Department's order refusing to issue, restore, or renew
20a registration, or otherwise disciplining a registrant. If the
21Secretary disagrees with the recommendations of the hearing
22officer, the Secretary may issue an order in contravention of
23the hearing officer recommendations. The finding is not
24admissible in evidence against the person in a criminal
25prosecution brought for a violation of this Act, but the
26hearing and finding are not a bar to a criminal prosecution

 

 

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1brought for a violation of this Act.
 
2    Section 100. Hearing officer; rehearing. At the conclusion
3of the hearing, a copy of the hearing officer's report shall be
4served upon the applicant or registrant by the Department,
5either personally or as provided in this Act for the service of
6a notice of hearing. Within 20 days after service, the
7applicant or registrant may present to the Department a motion
8in writing for a rehearing, which shall specify the particular
9grounds for rehearing. The Department may respond to the motion
10for rehearing within 20 days after its service on the
11Department. If no motion for rehearing is filed, then upon the
12expiration of the time specified for filing such a motion, or
13if a motion for rehearing is denied, then upon denial, the
14Secretary may enter an order in accordance with recommendations
15of the hearing officer except as provided in Section 105 or 110
16of this Act. If the applicant or registrant orders from the
17reporting service and pays for a transcript of the record
18within the time for filing a motion for rehearing, the 20-day
19period within which a motion may be filed shall commence upon
20the delivery of the transcript to the applicant or registrant.
 
21    Section 105. Secretary; rehearing. Whenever the Secretary
22believes that substantial justice has not been done in the
23revocation, suspension, or refusal to issue, restore, or renew
24a registration, or other discipline of an applicant or

 

 

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1registrant, he or she may order a rehearing by the same or
2other hearing officers.
 
3    Section 110. Appointment of a hearing officer. The
4Secretary has the authority to appoint any attorney licensed to
5practice law in the State to serve as the hearing officer in
6any action for refusal to issue, restore, or renew a
7registration or to discipline a registrant. The hearing officer
8has full authority to conduct the hearing. The hearing officer
9shall report his or her findings of fact, conclusions of law,
10and recommendations to the Secretary. If the Secretary
11disagrees with the recommendation of the hearing officer, the
12Secretary may issue an order in contravention of the
13recommendation.
 
14    Section 115. Order or certified copy; prima facie proof.
15An order or certified copy thereof, over the seal of the
16Department and purporting to be signed by the Secretary, is
17prima facie proof that:
18    (1) the signature is the genuine signature of the
19Secretary; and
20    (2) the Secretary is duly appointed and qualified.
 
21    Section 120. Restoration of suspended or revoked
22registration. At any time after the successful completion of a
23term of suspension or revocation of a registration, the

 

 

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1Department may restore it to the registrant, upon the written
2recommendation of the hearing officer, unless after an
3investigation and a hearing the Secretary determines that
4restoration is not in the public interest.
 
5    Section 125. Surrender of registration. Upon the
6revocation or suspension of a registration, the registrant
7shall immediately surrender his or her registration to the
8Department. If the registrant fails to do so, the Department
9has the right to seize the registration.
 
10    Section 130. Summary suspension of a registration. The
11Secretary may summarily suspend the registration of any
12registrant under this Act without a hearing, simultaneously
13with the institution of proceedings for a hearing provided for
14in Section 75 of this Act, if the Secretary finds that evidence
15in the Secretary's possession indicates that the continuation
16of practice by the registrant would constitute an imminent
17danger to the public. In the event that the Secretary summarily
18suspends the registration of a registrant under this Section
19without a hearing, a hearing must be commenced within 30 days
20after the suspension has occurred and concluded as
21expeditiously as practical.
 
22    Section 135. Administrative review; venue.
23    (a) All final administrative decisions of the Department

 

 

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1are subject to judicial review under the Administrative Review
2Law and its rules. The term "administrative decision" is
3defined as in Section 3-101 of the Code of Civil Procedure.
4    (b) Proceedings for judicial review shall be commenced in
5the circuit court of the county in which the party applying for
6review resides, but if the party is not a resident of Illinois,
7the venue shall be in Sangamon County.
 
8    Section 140. Certifications of record; costs. The
9Department shall not be required to certify any record to the
10court, to file an answer in court, or to otherwise appear in
11any court in a judicial review proceeding unless and until the
12Department has received from the plaintiff payment of the costs
13of furnishing and certifying the record, which costs shall be
14determined by the Department. Failure on the part of the
15plaintiff to file the receipt in court is grounds for dismissal
16of the action.
 
17    Section 145. Violations. Any person who is found to have
18violated any provision of this Act is guilty of a Class A
19misdemeanor. On conviction of a second or subsequent offense,
20the violator is guilty of a Class 4 felony.
 
21    Section 150. Civil penalties.
22    (a) In addition to any other penalty provided by law, any
23person who violates this Act shall forfeit and pay a civil

 

 

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1penalty to the Department in an amount not to exceed $25,000
2for each violation as determined by the Department. The civil
3penalty shall be assessed by the Department in accordance with
4the provisions of this Act.
5    (b) The Department has the authority and power to
6investigate any and all unregistered activity.
7    (c) The civil penalty shall be paid within 60 days after
8the effective date of the order imposing the civil penalty. The
9order shall constitute a judgment and may be filed and
10execution had thereon in the same manner as any judgment from
11any court of record.
12    (d) All moneys collected under this Section shall be
13deposited into the Appraisal Administration Fund.
 
14    Section 155. Consent order. At any point in the
15proceedings as provided in this Act, both parties may agree to
16a negotiated consent order. The consent order shall be final
17upon signature of the Secretary.
 
18    Section 160. Business practice provisions; standards of
19practice.
20    (a) The Department may adopt by rule the Uniform Standards
21of Professional Appraisal Practice as published from time to
22time by the Appraisal Standards Board of the Appraisal
23Foundation. Appraisal management companies shall not interfere
24with adherence to the Uniform Standards of Professional

 

 

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1Appraisal Practice or the Real Estate Appraiser Act of 2002 or
2a subsequent Act by individuals licensed under the respective
3Acts.
4    (b) All payment policies from registrants under this Act to
5appraisers shall be written and definitive in nature.
6    (c) In the event of a value dispute or a requested
7reconsideration of value, the appraisal management company
8shall deliver all information that supports an increase or
9decrease in value to the appraiser. This information may
10include, but is not limited to, additional comparable sales.
11    (d) Each entity registered under this Act shall designate a
12controlling person who is responsible to assure that the
13company operates in compliance with this Act. The company shall
14file a form provided by the Department indicating the company's
15designation of the controlling person and such individual's
16acceptance of the responsibility. A registrant shall notify the
17Department of any change in its controlling person within 30
18days. Any registrant who does not comply with this subsection
19(d) shall have its registration suspended under the provisions
20set forth in this Act until the registrant complies with this
21Section. Any individual registrant who operates as a sole
22proprietorship shall be considered a designated controlling
23person for the purposes of this Act.
24    (e) Appraisal management companies or employees of an
25appraisal management company involved in a real estate
26transaction who have a reasonable basis to believe that an

 

 

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1appraiser involved in the preparation of an appraisal for the
2real estate transaction has failed to comply with the Uniform
3Standards of Professional Appraisal Practice, has violated
4this Act or its rules, or has otherwise engaged in unethical
5conduct shall report the matter to the Department. Any
6registrant, employee, or individual acting on behalf of a
7registrant, acting in good faith, and not in a willful and
8wanton manner, in complying with this Act by reporting the
9conduct to the Department shall not, as a result of such
10actions, be subject to criminal prosecution or civil damages.
11    (f) Appraisal management companies are required to be in
12compliance with the appraisal independence standards
13established under Section 129E of the federal Truth in Lending
14Act, including the requirement that fee appraisers be
15compensated at a customary and reasonable rate when the
16appraisal management company is providing services for a
17consumer credit transaction secured by the principal dwelling
18of a consumer. To the extent permitted by federal law or
19regulation, the Department shall formulate rules pertaining to
20customary and reasonable rates of compensation for fee
21appraisers. The appraisal management company must certify to
22the Department that it has policies and procedures in place to
23be in compliance under the Final Interim Rule of the federal
24Dodd-Frank Wall Street Reform and Consumer Protection Act.
25    (g) No appraisal management company procuring or
26facilitating an appraisal may have a direct or indirect

 

 

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1interest, financial or otherwise, in the real estate or the
2transaction that is the subject of the appraisal, as defined by
3the federal Dodd-Frank Wall Street Reform and Consumer
4Protection Act, any amendments thereto, or successor acts or
5other applicable provisions of federal law or regulations.
 
6    Section 165. Prohibited activities.
7    (a) No person or entity acting in the capacity of an
8appraisal management company shall improperly influence or
9attempt to improperly influence the development, reporting,
10result, or review of any appraisal by engaging, without
11limitation, in any of the following:
12        (1) Withholding or threatening to withhold timely
13    payment for a completed appraisal, except where addressed
14    in a mutually agreed upon contract.
15        (2) Withholding or threatening to withhold, either
16    expressed or by implication, future business from, or
17    demoting, or terminating, or threatening to demote or
18    terminate an Illinois licensed or certified appraiser.
19        (3) Expressly or impliedly promising future business,
20    promotions, or increased compensation for an independent
21    appraiser.
22        (4) Conditioning an assignment for an appraisal
23    service or the payment of an appraisal fee or salary or
24    bonus on the opinion, conclusion, or valuation to be
25    reached in an appraisal report.

 

 

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1        (5) Requesting that an appraiser provide an estimated,
2    predetermined, or desired valuation in an appraisal report
3    or provide estimated values or sales at any time prior to
4    the appraiser's completion of an appraisal report.
5        (6) Allowing or directing the removal of an appraiser
6    from an appraisal panel without prior written notice to the
7    appraiser.
8        (7) Requiring an appraiser to sign a non-compete clause
9    when not an employee of the entity.
10        (8) Requiring an appraiser to sign any sort of
11    indemnification agreement that would require the appraiser
12    to defend and hold harmless the appraisal management
13    company or any of its agents, employees, or independent
14    contractors for any liability, damage, losses, or claims
15    arising out of the services performed by the appraisal
16    management company or its agents, employees, or
17    independent contractors and not the services performed by
18    the appraiser.
19        (9) Prohibiting or attempting to prohibit the
20    appraiser from including or referencing the appraisal fee,
21    the appraisal management company name or identity, or the
22    client's or lender's name or identity within the body of
23    the appraisal report.
24        (10) Require an appraiser to collect a fee from the
25    borrower or occupant of the property to be appraised.
26        (11) Knowingly withholding any end-user client

 

 

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1    guidelines, policies, requirements, standards, assignment
2    conditions, and special instructions from an appraiser
3    prior to the acceptance of an appraisal assignment.
4    (b) A person or entity may not structure an appraisal
5assignment or a contract with an independent appraiser for the
6purpose of evading the provisions of this Act.
7    (c) No registrant or other person or entity may alter,
8modify, or otherwise change a completed appraisal report
9submitted by an independent appraiser, including without
10limitation, by doing either of the following:
11        (1) permanently or temporarily removing the
12    appraiser's signature or seal; or
13        (2) adding information to, or removing information
14    from, the appraisal report with an intent to change the
15    value conclusion or the condition of the property.
16    (d) No appraisal management company may require an
17appraiser to provide it with the appraiser's digital signature
18or seal. However, nothing in this Act shall be deemed to
19prohibit an appraiser from voluntarily providing his or her
20digital signature or seal to another person on an
21assignment-by-assignment basis, in accordance with USPAP.
22    (e) Nothing in this Act shall prohibit an appraisal
23management company from requesting that an appraiser:
24        (1) consider additional appropriate property
25    information, including the consideration of additional
26    comparable properties to make or support an appraisal;

 

 

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1        (2) provide further detail, substantiation, or
2    explanation for the appraiser's value conclusion; or
3        (3) correct factual errors in the appraisal report.
 
4    Section 170. Confidentiality. All information collected by
5the Department in the course of an examination or investigation
6of a licensee or applicant, including, but not limited to, any
7complaint against a licensee filed with the Department and
8information collected to investigate any such complaint, shall
9be maintained for the confidential use of the Department and
10shall not be disclosed. The Department may not disclose the
11information to anyone other than law enforcement officials,
12other regulatory agencies that have an appropriate regulatory
13interest as determined by the Secretary, or to a party
14presenting a lawful subpoena to the Department. Information and
15documents disclosed to a federal, State, county, or local law
16enforcement agency shall not be disclosed by the agency for any
17purpose to any other agency or person. A formal complaint filed
18against a licensee by the Department or any order issued by the
19Department against a licensee or applicant shall be a public
20record, except as otherwise prohibited by law.
 
21    Section 175. Illinois Administrative Procedure Act;
22application. The Illinois Administrative Procedure Act is
23expressly adopted and incorporated in this Act as if all of the
24provisions of that Act were included in this Act, except that

 

 

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1the provision of paragraph (d) of Section 10-65 of the Illinois
2Administrative Procedure Act, which provides that at hearings
3the registrant has the right to show compliance with all lawful
4requirements for retention or continuation or renewal of the
5registration, is specifically excluded. For the purpose of this
6Act, the notice required under Section 10-25 of the Illinois
7Administrative Procedure Act is considered sufficient when
8mailed to the last known address of a party.
 
9    Section 180. Home rule. The regulation and registration of
10practice as an appraisal management company are exclusive
11powers and functions of the State. A home rule unit may not
12regulate the practice or require the registration as an
13appraisal management company. This Section is a denial and
14limitation of home rule powers and functions under subsection
15(h) of Section 6 of Article VII of the Illinois Constitution.
 
16    Section 905. The Regulatory Sunset Act is amended by
17changing Section 4.22 and by adding Section 4.32 as follows:
 
18    (5 ILCS 80/4.22)
19    Sec. 4.22. Acts repealed on January 1, 2012. The following
20Acts are repealed on January 1, 2012:
21    The Detection of Deception Examiners Act.
22    The Home Inspector License Act.
23    The Interior Design Title Act.

 

 

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1    The Massage Licensing Act.
2    The Petroleum Equipment Contractors Licensing Act.
3    The Professional Boxing Act.
4    The Real Estate Appraiser Licensing Act of 2002.
5    The Water Well and Pump Installation Contractor's License
6Act.
7(Source: P.A. 95-331, eff. 8-21-07.)
 
8    (5 ILCS 80/4.32 new)
9    Sec. 4.32. Act repealed on January 1, 2022. The following
10Act is repealed on January 1, 2022:
11    The Real Estate Appraiser Licensing Act of 2002.
 
12    Section 910. The Real Estate Appraiser Licensing Act of
132002 is amended by changing Sections 1-10, 5-5, 5-55, 10-5,
1410-10, 10-20, 15-10, 15-30, and 25-15 and by adding Sections
1510-17 and 15-65 as follows:
 
16    (225 ILCS 458/1-10)
17    (Section scheduled to be repealed on January 1, 2012)
18    Sec. 1-10. Definitions. As used in this Act, unless the
19context otherwise requires:
20    "Accredited college or university, junior college, or
21community college" means a college or university, junior
22college, or community college that is approved or accredited by
23the Board of Higher Education, a regional or national

 

 

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1accreditation association, or by an accrediting agency that is
2recognized by the U.S. Secretary of Education.
3    "Address of record" means the designated address recorded
4by the Department in the applicant's or licensee's application
5file or license file as maintained by the Department's
6licensure maintenance unit. It is the duty of the applicant or
7licensee to inform the Department of any change of address and
8those changes must be made either through the Department's
9website or by contacting the Department.
10    "Applicant" means person who applies to the Department for
11a license under this Act.
12    "Appraisal" means (noun) the act or process of developing
13an opinion of value; an opinion of value (adjective) of or
14pertaining to appraising and related functions, such as
15appraisal practice or appraisal services.
16    "Appraisal assignment" means a valuation service provided
17as a consequence of an agreement between an appraiser and a
18client.
19    "Appraisal consulting" means the act or process of
20developing an analysis, recommendation, or opinion to solve a
21problem, where an opinion of value is a component of the
22analysis leading to the assignment results.
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 performs the following appraisal management
6services: (1) administers networks of independent contractors
7or employee appraisers to perform real estate appraisal
8assignments for clients; (2) receives requests for real estate
9appraisal services from clients and, for a fee paid by the
10client, enters into an agreement with one or more independent
11appraisers to perform the real estate appraisal services
12contained in the request; or (3) otherwise serves as a
13third-party broker of appraisal management services between
14clients and appraisers. "Appraisal management company" does
15not include an appraisal firm.
16    "Appraisal practice" means valuation services performed by
17an individual acting as an appraiser, including, but not
18limited to, appraisal, appraisal review, or appraisal
19consulting.
20    "Appraisal report" means any communication, written or
21oral, of an appraisal, appraisal review, or appraisal
22consulting service that is transmitted to a client upon
23completion of an assignment.
24    "Appraisal review" means the act or process of developing
25and communicating an opinion about the quality of another
26appraiser's work that was performed as part of an appraisal,

 

 

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1appraisal review, or appraisal assignment.
2    "Appraisal Subcommittee" means the Appraisal Subcommittee
3of the Federal Financial Institutions Examination Council as
4established by Title XI.
5    "Appraiser" means a person who performs real estate or real
6property appraisals.
7    "AQB" means the Appraisal Qualifications Board of the
8Appraisal Foundation.
9    "Associate real estate trainee appraiser" means an
10entry-level appraiser who holds a license of this
11classification under this Act with restrictions as to the scope
12of practice in accordance with this Act.
13    "Board" means the Real Estate Appraisal Administration and
14Disciplinary Board.
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 appraiser
18by employment or contract in a specific appraisal assignment.
19    "Coordinator" means the Coordinator of Real Estate
20Appraisal of the Division of Professional Regulation of the
21Department of Financial and Professional Regulation.
22    "Department" means the Department of Financial and
23Professional Regulation.
24    "Federal financial institutions regulatory agencies" means
25the Board of Governors of the Federal Reserve System, the
26Federal Deposit Insurance Corporation, the Office of the

 

 

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1Comptroller of the Currency, the Office of Thrift Supervision,
2and the National Credit Union Administration.
3    "Federally related transaction" means any real
4estate-related financial transaction in which a federal
5financial institutions regulatory agency, the Department of
6Housing and Urban Development, Fannie Mae, Freddie Mae, or the
7National Credit Union Administration engages in, contracts
8for, or regulates and requires the services of an appraiser.
9    "Financial institution" means any bank, savings bank,
10savings and loan association, credit union, mortgage broker,
11mortgage banker, licensee under the Consumer Installment Loan
12Act or the Sales Finance Agency Act, or a corporate fiduciary,
13subsidiary, affiliate, parent company, or holding company of
14any such licensee, or any institution involved in real estate
15financing that is regulated by state or federal law.
16    "Modular Course" means the Appraisal Qualifying Course
17Design conforming to the Sub Topics Course Outline contained in
18the AQB Criteria 2008.
19    "Person" means an individual, entity, sole proprietorship,
20corporation, limited liability company, partnership, and joint
21venture, foreign or domestic, except that when the context
22otherwise requires, the term may refer to more than one
23individual or other described entity.
24    "Real estate" means an identified parcel or tract of land,
25including any improvements.
26    "Real estate related financial transaction" means any

 

 

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

 

 

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1    "Supervising appraiser" means either (i) an appraiser who
2holds a valid license under this Act as either a State
3certified general real estate appraiser or a State certified
4residential real estate appraiser, who co-signs an appraisal
5report for an associate real estate trainee appraiser or (ii) a
6State certified general real estate appraiser who holds a valid
7license under this Act who co-signs an appraisal report for a
8State certified residential real estate appraiser on
9properties other than one to 4 units of residential real
10property without regard to transaction value or complexity.
11    "Title XI" means Title XI of the federal Financial
12Institutions Reform, Recovery and Enforcement Act of 1989.
13    "USPAP" means the Uniform Standards of Professional
14Appraisal Practice as promulgated by the Appraisal Standards
15Board pursuant to Title XI and by rule.
16    "Valuation services" means services pertaining to aspects
17of property value.
18(Source: P.A. 96-844, eff. 12-23-09.)
 
19    (225 ILCS 458/5-5)
20    (Section scheduled to be repealed on January 1, 2012)
21    Sec. 5-5. Necessity of license; use of title; exemptions.
22    (a) It is unlawful for a person to (i) act, offer services,
23or advertise services as a State certified general real estate
24appraiser, State certified residential real estate appraiser,
25or associate real estate trainee appraiser, (ii) develop a real

 

 

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1estate appraisal, (iii) practice as a real estate appraiser, or
2(iv) advertise or hold himself or herself out to be a real
3estate appraiser, or (v) solicit clients or enter into an
4appraisal engagement with clients without a license issued
5under this Act. A person who violates this subsection is guilty
6of a Class A misdemeanor for a first offense and a Class 4
7felony for any subsequent offense.
8    (a-5) It is unlawful for a person, unless registered as an
9appraisal management company, to solicit clients or enter into
10an appraisal engagement with clients without either a certified
11residential real estate appraiser license or a certified
12general real estate appraiser license issued under this Act. A
13person who violates this subsection is guilty of a Class A
14misdemeanor for a first offense and a Class 4 felony for any
15subsequent offense.
16    (b) It is unlawful for a person, other than a person who
17holds a valid license issued pursuant to this Act as a State
18certified general real estate appraiser, a State certified
19residential real estate appraiser, or an associate real estate
20trainee appraiser to use these titles or any other title,
21designation, or abbreviation likely to create the impression
22that the person is licensed as a real estate appraiser pursuant
23to this Act. A person who violates this subsection is guilty of
24a Class A misdemeanor for a first offense and a Class 4 felony
25for any subsequent offense.
26    (c) The licensing requirements of this Act do not require a

 

 

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1person who holds a valid license pursuant to the Real Estate
2License Act of 2000, to be licensed as a real estate appraiser
3under this Act, unless that person is providing or attempting
4to provide an appraisal report, as defined in Section 1-10 of
5this Act, in connection with a federally-related transaction.
6Nothing in this Act shall prohibit a person who holds a valid
7license under the Real Estate License Act of 2000 from
8performing a comparative market analysis or broker price
9opinion for compensation, provided that the person does not
10hold himself out as being a licensed real estate appraiser.
11    (d) Nothing in this Act shall preclude a State certified
12general real estate appraiser, a State certified residential
13real estate appraiser, or an associate real estate trainee
14appraiser from rendering appraisals for or on behalf of a
15partnership, association, corporation, firm, or group.
16However, no State appraisal license or certification shall be
17issued under this Act to a partnership, association,
18corporation, firm, or group.
19    (e) This Act does not apply to a county assessor, township
20assessor, multi-township assessor, county supervisor of
21assessments, or any deputy or employee of any county assessor,
22township assessor, multi-township assessor, or county
23supervisor of assessments who is performing his or her
24respective duties in accordance with the provisions of the
25Property Tax Code.
26    (e-5) For the purposes of this Act, the following types of

 

 

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1valuations are not appraisals and may not be represented to be
2appraisals, and a license is not required under this Act to
3perform such valuations if the valuations are performed by an
4employee of the Illinois Department of Transportation or an
5employee of a county:
6        (1) a valuation waiver in an amount not to exceed
7    $10,000 prepared pursuant to the federal Uniform
8    Relocation Assistance and Real Property Acquisition
9    Policies Act of 1970, as amended; or
10        (2) a valuation waiver in an amount not to exceed
11    $10,000 prepared pursuant to the federal Uniform
12    Relocation Assistance and Real Property Acquisition for
13    Federal and Federally-Assisted Programs regulations.
14    Nothing in this subsection (e-5) shall be construed to
15allow the State of Illinois, a political subdivision thereof,
16or any public body to acquire real estate by eminent domain in
17any manner other than provided for in the Eminent Domain Act.
18    (f) A State real estate appraisal certification or license
19is not required under this Act for any of the following:
20        (1) A person, partnership, association, or corporation
21    that performs appraisals of property owned by that person,
22    partnership, association, or corporation for the sole use
23    of that person, partnership, association, or corporation.
24        (2) A court-appointed commissioner who conducts an
25    appraisal pursuant to a judicially ordered evaluation of
26    property.

 

 

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1However, any person who is certified or licensed under this Act
2and who performs any of the activities set forth in this
3subsection (f) must comply with the provisions of this Act. A
4person who violates this subsection (f) is guilty of a Class A
5misdemeanor for a first offense and a Class 4 felony for any
6subsequent offense.
7    (g) This Act does not apply to an employee, officer,
8director, or member of a credit or loan committee of a
9financial institution or any other person engaged by a
10financial institution when performing an evaluation of real
11property for the sole use of the financial institution in a
12transaction for which the financial institution would not be
13required to use the services of a State licensed or State
14certified appraiser pursuant to federal regulations adopted
15under Title XI of the federal Financial Institutions Reform,
16Recovery, and Enforcement Act of 1989, nor does this Act apply
17to the procurement of an automated valuation model.
18    "Automated valuation model" means an automated system that
19is used to derive a property value through the use of publicly
20available property records and various analytic methodologies
21such as comparable sales prices, home characteristics, and
22historical home price appreciations.
23(Source: P.A. 96-844, eff. 12-23-09.)
 
24    (225 ILCS 458/5-55)
25    (Section scheduled to be repealed on January 1, 2012)

 

 

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1    Sec. 5-55. Fees. The Department shall establish rules for
2fees to be paid by applicants and licensees to cover the
3reasonable costs of the Department in administering and
4enforcing the provisions of this Act. The Department, with the
5advice of the Board, may also establish rules for general fees
6to cover the reasonable expenses of carrying out other
7functions and responsibilities under this Act.
8(Source: P.A. 96-844, eff. 12-23-09.)
 
9    (225 ILCS 458/10-5)
10    (Section scheduled to be repealed on January 1, 2012)
11    Sec. 10-5. Scope of practice.
12    (a) This Act does not limit a State certified general real
13estate appraiser in his or her scope of practice in a federally
14related transaction. A certified general real estate appraiser
15may independently provide appraisal services, review, or
16consulting relating to any type of property for which he or she
17has experience or is competent. All such appraisal practice
18must be made in accordance with the provisions of USPAP,
19criteria established by the AQB, and rules adopted pursuant to
20this Act.
21    (b) A State certified residential real estate appraiser is
22limited in his or her scope of practice to in a federally
23related transaction as provided by Title XI, the provisions of
24USPAP, criteria established by the AQB, and the rules adopted
25pursuant to this Act.

 

 

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1    (c) A State certified residential real estate appraiser
2must have a State certified general real estate appraiser who
3holds a valid license under this Act co-sign all appraisal
4reports on properties other than one to 4 units of residential
5real property without regard to transaction value or
6complexity.
7    (d) An associate real estate trainee appraiser is limited
8in his or her scope of practice in all transactions in
9accordance with the provisions of USPAP, this Act, and the
10rules adopted pursuant to this Act. In addition, an associate
11real estate trainee appraiser shall be required to have a State
12certified general real estate appraiser or State certified
13residential real estate appraiser who holds a valid license
14under this Act to co-sign all appraisal reports. The associate
15real estate trainee appraiser licensee may not have more than 3
16supervising appraisers, and a supervising appraiser may not
17supervise more than 3 associate real estate trainee appraisers
18at one time. A chronological appraisal log on an approved log
19form shall be maintained by the associate real estate trainee
20appraiser and shall be made available to the Department upon
21request.
22(Source: P.A. 96-844, eff. 12-23-09.)
 
23    (225 ILCS 458/10-10)
24    (Section scheduled to be repealed on January 1, 2012)
25    Sec. 10-10. Standards of practice. All persons licensed

 

 

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1under this Act must comply with standards of professional
2appraisal practice adopted by the Department. The Department
3must adopt, as part of its rules, the Uniform Standards of
4Professional Appraisal Practice (USPAP) as published from time
5to time by the Appraisal Standards Board of the Appraisal
6Foundation. The Department shall consider federal laws and
7regulations regarding the licensure of real estate appraisers
8prior to adopting its rules for the administration of this Act.
9When an appraisal obtained through an appraisal management
10company is used for loan purposes, the borrower or loan
11applicant shall be provided with a written disclosure of the
12total compensation to the appraiser or appraisal firm within
13the certification of the appraisal report and it shall not be
14redacted or otherwise obscured.
15(Source: P.A. 96-844, eff. 12-23-09.)
 
16    (225 ILCS 458/10-17 new)
17    Sec. 10-17. Survey. Within 12 months after the effective
18date of this amendatory Act of the 97th General Assembly, the
19Department or its designee shall conduct a survey of fees for
20appraisal services for single-family residences, two-family
21residences, three-family residences, and four-family
22residences. The fee survey shall exclude assignments ordered by
23known appraisal management companies and complex assignments.
24The Department may conduct additional surveys as necessitated
25by rules adopted pursuant to the federal Dodd-Frank Wall Street

 

 

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1Reform and Consumer Protection Act. The Department may assess
2an additional fee at the time of licensure or renewal to cover
3the expenses of carrying out this Section.
 
4    (225 ILCS 458/10-20)
5    (Section scheduled to be repealed on January 1, 2012)
6    Sec. 10-20. Retention of records. A person licensed under
7this Act shall retain records as required by the most recent
8version of the USPAP and as further defined by rule the
9original copy of all written contracts engaging his or her
10services as an appraiser and all appraisal reports, including
11any supporting data used to develop the appraisal report, for a
12period of 5 years or 2 years after the final disposition of any
13judicial proceeding in which testimony was given, whichever is
14longer. In addition, a person licensed under this Act shall
15retain contracts, logs, and appraisal reports used in meeting
16pre-license experience requirements for a period of 5 years and
17shall be made available to the Department upon request.
18(Source: P.A. 96-844, eff. 12-23-09.)
 
19    (225 ILCS 458/15-10)
20    (Section scheduled to be repealed on January 1, 2012)
21    Sec. 15-10. Grounds for disciplinary action.
22    (a) The Department may suspend, revoke, refuse to issue,
23renew, or restore a license and may reprimand place on
24probation or administrative supervision, or take any

 

 

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1disciplinary or non-disciplinary action, including imposing
2conditions limiting the scope, nature, or extent of the real
3estate appraisal practice of a licensee or reducing the
4appraisal rank of a licensee, and may impose an administrative
5fine not to exceed $25,000 for each violation upon a licensee
6for any one or combination of the following:
7        (1) Procuring or attempting to procure a license by
8    knowingly making a false statement, submitting false
9    information, engaging in any form of fraud or
10    misrepresentation, or refusing to provide complete
11    information in response to a question in an application for
12    licensure.
13        (2) Failing to meet the minimum qualifications for
14    licensure as an appraiser established by this Act.
15        (3) Paying money, other than for the fees provided for
16    by this Act, or anything of value to a member or employee
17    of the Board or the Department to procure licensure under
18    this Act.
19        (4) Conviction by plea of guilty or nolo contendere,
20    finding of guilt, jury verdict, or entry of judgment or by
21    sentencing of any crime, including, but not limited to,
22    convictions, preceding sentences of supervision,
23    conditional discharge, or first offender probation, under
24    the laws of any jurisdiction of the United States: (i) that
25    is a felony; or (ii) that is a misdemeanor, an essential
26    element of which is dishonesty, or that is directly related

 

 

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1    to the practice of the profession. Conviction of or entry
2    of a plea of guilty or nolo contendere to any crime that is
3    a felony under the laws of the United States or any state
4    or territory thereof or a misdemeanor of which an essential
5    element is dishonesty or that is directly related to the
6    practice of the profession.
7        (5) Committing an act or omission involving
8    dishonesty, fraud, or misrepresentation with the intent to
9    substantially benefit the licensee or another person or
10    with intent to substantially injure another person as
11    defined by rule.
12        (6) Violating a provision or standard for the
13    development or communication of real estate appraisals as
14    provided in Section 10-10 of this Act or as defined by
15    rule.
16        (7) Failing or refusing without good cause to exercise
17    reasonable diligence in developing, reporting, or
18    communicating an appraisal, as defined by this Act or by
19    rule.
20        (8) Violating a provision of this Act or the rules
21    adopted pursuant to this Act.
22        (9) Having been disciplined by another state, the
23    District of Columbia, a territory, a foreign nation, a
24    governmental agency, or any other entity authorized to
25    impose discipline if at least one of the grounds for that
26    discipline is the same as or the equivalent of one of the

 

 

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1    grounds for which a licensee may be disciplined under this
2    Act.
3        (10) Engaging in dishonorable, unethical, or
4    unprofessional conduct of a character likely to deceive,
5    defraud, or harm the public.
6        (11) Accepting an appraisal assignment when the
7    employment itself is contingent upon the appraiser
8    reporting a predetermined estimate, analysis, or opinion
9    or when the fee to be paid is contingent upon the opinion,
10    conclusion, or valuation reached or upon the consequences
11    resulting from the appraisal assignment.
12        (12) Developing valuation conclusions based on the
13    race, color, religion, sex, national origin, ancestry,
14    age, marital status, family status, physical or mental
15    handicap, or unfavorable military discharge, as defined
16    under the Illinois Human Rights Act, of the prospective or
17    present owners or occupants of the area or property under
18    appraisal.
19        (13) Violating the confidential nature of government
20    records to which the licensee gained access through
21    employment or engagement as an appraiser by a government
22    agency.
23        (14) Being adjudicated liable in a civil proceeding on
24    grounds of fraud, misrepresentation, or deceit. In a
25    disciplinary proceeding based upon a finding of civil
26    liability, the appraiser shall be afforded an opportunity

 

 

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1    to present mitigating and extenuating circumstances, but
2    may not collaterally attack the civil adjudication.
3        (15) Being adjudicated liable in a civil proceeding for
4    violation of a state or federal fair housing law.
5        (16) Engaging in misleading or untruthful advertising
6    or using a trade name or insignia of membership in a real
7    estate appraisal or real estate organization of which the
8    licensee is not a member.
9        (17) Failing to fully cooperate with a Department
10    investigation by knowingly making a false statement,
11    submitting false or misleading information, or refusing to
12    provide complete information in response to written
13    interrogatories or a written request for documentation
14    within 30 days of the request.
15        (18) Failing to include within the certificate of
16    appraisal for all written appraisal reports the
17    appraiser's license number and licensure title. All
18    appraisers providing significant contribution to the
19    development and reporting of an appraisal must be disclosed
20    in the appraisal report. It is a violation of this Act for
21    an appraiser to sign a report, transmittal letter, or
22    appraisal certification knowing that a person providing a
23    significant contribution to the report has not been
24    disclosed in the appraisal report.
25        (19) Violating the terms of a disciplinary order or
26    consent to administrative supervision order.

 

 

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1        (20) Habitual or excessive use or addiction to alcohol,
2    narcotics, stimulants, or any other chemical agent or drug
3    that results in a licensee's inability to practice with
4    reasonable judgment, skill, or safety.
5        (21) A physical or mental illness or disability which
6    results in the inability to practice under this Act with
7    reasonable judgment, skill, or safety.
8        (22) Gross negligence in developing an appraisal or in
9    communicating an appraisal or failing to observe one or
10    more of the Uniform Standards of Professional Appraisal
11    Practice.
12        (23) A pattern of practice or other behavior that
13    demonstrates incapacity or incompetence to practice under
14    this Act.
15        (24) Using or attempting to use the seal, certificate,
16    or license of another as his or her own; falsely
17    impersonating any duly licensed appraiser; using or
18    attempting to use an inactive, expired, suspended, or
19    revoked license; or aiding or abetting any of the
20    foregoing.
21        (25) Solicitation of professional services by using
22    false, misleading, or deceptive advertising.
23        (26) Making a material misstatement in furnishing
24    information to the Department.
25        (27) Failure to furnish information to the Department
26    upon written request.

 

 

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1    (b) The Department may reprimand suspend, revoke, or refuse
2to issue or renew an education provider's license, may
3reprimand, place on probation, or otherwise discipline an
4education provider and may suspend or revoke the course
5approval of any course offered by an education provider and may
6impose an administrative fine not to exceed $25,000 upon an
7education provider, for any of the following:
8        (1) Procuring or attempting to procure licensure by
9    knowingly making a false statement, submitting false
10    information, engaging in any form of fraud or
11    misrepresentation, or refusing to provide complete
12    information in response to a question in an application for
13    licensure.
14        (2) Failing to comply with the covenants certified to
15    on the application for licensure as an education provider.
16        (3) Committing an act or omission involving
17    dishonesty, fraud, or misrepresentation or allowing any
18    such act or omission by any employee or contractor under
19    the control of the provider.
20        (4) Engaging in misleading or untruthful advertising.
21        (5) Failing to retain competent instructors in
22    accordance with rules adopted under this Act.
23        (6) Failing to meet the topic or time requirements for
24    course approval as the provider of a pre-license curriculum
25    course or a continuing education course.
26        (7) Failing to administer an approved course using the

 

 

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1    course materials, syllabus, and examinations submitted as
2    the basis of the course approval.
3        (8) Failing to provide an appropriate classroom
4    environment for presentation of courses, with
5    consideration for student comfort, acoustics, lighting,
6    seating, workspace, and visual aid material.
7        (9) Failing to maintain student records in compliance
8    with the rules adopted under this Act.
9        (10) Failing to provide a certificate, transcript, or
10    other student record to the Department or to a student as
11    may be required by rule.
12        (11) Failing to fully cooperate with an investigation
13    by the Department by knowingly making a false statement,
14    submitting false or misleading information, or refusing to
15    provide complete information in response to written
16    interrogatories or a written request for documentation
17    within 30 days of the request.
18    (c) In appropriate cases, the Department may resolve a
19complaint against a licensee through the issuance of a Consent
20to Administrative Supervision order. A licensee subject to a
21Consent to Administrative Supervision order shall be
22considered by the Department as an active licensee in good
23standing. This order shall not be reported or considered by the
24Department to be a discipline of the licensee. The records
25regarding an investigation and a Consent to Administrative
26Supervision order shall be considered confidential and shall

 

 

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1not be released by the Department except as mandated by law. A
2complainant shall be notified if his or her complaint has been
3resolved by a Consent to Administrative Supervision order.
4(Source: P.A. 96-844, eff. 12-23-09.)
 
5    (225 ILCS 458/15-30)
6    (Section scheduled to be repealed on January 1, 2012)
7    Sec. 15-30. Statute of limitations. No action may be taken
8under this Act against a person licensed under this Act unless
9the action is commenced within 5 years after the occurrence of
10the alleged violation or within at least 2 years after final
11disposition of any judicial proceeding, including any appeals,
12in which the appraiser provided testimony related to the
13assignment, whichever period expires last. A continuing
14violation is deemed to have occurred on the date when the
15circumstances last existed that gave rise to the alleged
16continuing violation.
17(Source: P.A. 96-844, eff. 12-23-09.)
 
18    (225 ILCS 458/15-65 new)
19    Sec. 15-65. Confidentiality. All information collected by
20the Department in the course of an examination or investigation
21of a licensee or applicant, including, but not limited to, any
22complaint against a licensee filed with the Department and
23information collected to investigate any such complaint, shall
24be maintained for the confidential use of the Department and

 

 

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1shall not be disclosed. The Department may not disclose the
2information to anyone other than law enforcement officials,
3other regulatory agencies that have an appropriate regulatory
4interest as determined by the Secretary, or to a party
5presenting a lawful subpoena to the Department. Information and
6documents disclosed to a federal, State, county, or local law
7enforcement agency shall not be disclosed by the agency for any
8purpose to any other agency or person. A formal complaint filed
9against a licensee by the Department or any order issued by the
10Department against a licensee or applicant shall be a public
11record, except as otherwise prohibited by law.
 
12    (225 ILCS 458/25-15)
13    (Section scheduled to be repealed on January 1, 2012)
14    Sec. 25-15. Coordinator of Real Estate Appraisal;
15appointment; duties. The Secretary shall appoint, subject to
16the Personnel Code, a Coordinator of Real Estate Appraisal. In
17appointing the Coordinator, the Secretary shall give due
18consideration to recommendations made by members,
19organizations, and associations of the real estate appraisal
20industry. On or after January 1, 2010, the Coordinator must
21hold a current, valid State certified general real estate
22appraiser license or a State certified residential real estate
23appraiser license, which shall be surrendered to the Department
24during the term of his or her appointment. The Coordinator must
25take the 30-hour National Instructors Course on Uniform

 

 

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1Standards of Professional Appraisal Practice. The
2Coordinator's license shall be returned in the same status as
3it was on the date of surrender, credited with all fees that
4came due during his or her employment. The Coordinator shall:
5        (1) serve as a member of the Real Estate Appraisal
6    Administration and Disciplinary Board without vote;
7        (2) be the direct liaison between the Department, the
8    profession, and the real estate appraisal industry
9    organizations and associations;
10        (3) prepare and circulate to licensees such
11    educational and informational material as the Department
12    deems necessary for providing guidance or assistance to
13    licensees;
14        (4) appoint necessary committees to assist in the
15    performance of the functions and duties of the Department
16    under this Act; and
17        (5) (blank); and .
18        (6) be authorized to investigate and determine the
19    facts of a complaint; the coordinator may interview
20    witnesses, the complainant, and any licensees involved in
21    the alleged matter and make a recommendation as to the
22    findings of fact.
23(Source: P.A. 96-844, eff. 12-23-09.)
 
24    (225 ILCS 458/5-21 rep.)
25    Section 915. The Real Estate Appraiser Licensing Act of

 

 

SB1539 Enrolled- 59 -LRB097 08574 CEL 48701 b

12002 is amended by repealing Section 5-21.
 
2    Section 999. Effective date. This Act takes effect upon
3becoming law.