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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Appraisal Management Company Registration Act.
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6 | Section 5. Findings. The General Assembly finds that: It | ||||||
7 | is the intent of the General Assembly that this Act provide for | ||||||
8 | the regulation of those persons or entities engaged as | ||||||
9 | appraisal management companies for the protection of the public | ||||||
10 | and for the maintenance of high standards of professional | ||||||
11 | conduct by those registered as appraisal management companies | ||||||
12 | and to ensure appraisal independence in the determination of | ||||||
13 | real estate valuations. | ||||||
14 | Section 10. Definitions. In this Act: | ||||||
15 | "Address of record" means the designated address recorded | ||||||
16 | by the Department in the applicant's or registrant's | ||||||
17 | application file or registration file maintained by the | ||||||
18 | Department's registration maintenance unit. It is the duty of | ||||||
19 | the applicant or registrant to inform the Department of any | ||||||
20 | change of address, and the changes must be made either through | ||||||
21 | the Department's website or by contacting the Department's | ||||||
22 | registration maintenance unit within a prescribed time period |
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1 | as defined by rule. | ||||||
2 | "Applicant" means a person or entity who applies to the | ||||||
3 | Department for a registration under this Act. | ||||||
4 | "Appraisal" means (noun) the act or process of developing | ||||||
5 | an opinion of value; an opinion of value (adjective) of or | ||||||
6 | pertaining to appraising and related functions. | ||||||
7 | "Appraisal firm" means an appraisal entity that is 100% | ||||||
8 | owned and controlled by a person or persons licensed in | ||||||
9 | Illinois as a certified general real estate appraiser or a | ||||||
10 | certified residential real estate appraiser. An appraisal firm | ||||||
11 | does not include an appraisal management company. | ||||||
12 | "Appraisal management company" means any corporation, | ||||||
13 | limited liability company, partnership, sole proprietorship, | ||||||
14 | subsidiary, unit, or other business entity that directly or | ||||||
15 | indirectly performs the following appraisal management | ||||||
16 | services: (1) administers networks of independent contractors | ||||||
17 | or employee appraisers to perform real estate appraisal | ||||||
18 | assignments for clients; (2) receives requests for real estate | ||||||
19 | appraisal services from clients and, for a fee paid by the | ||||||
20 | client, enters into an agreement with one or more independent | ||||||
21 | appraisers to perform the real estate appraisal services | ||||||
22 | contained in the request; or (3) otherwise serves as a | ||||||
23 | third-party broker of appraisal management services between | ||||||
24 | clients and appraisers. | ||||||
25 | "Appraisal report" means a written appraisal by an | ||||||
26 | appraiser to a client. |
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1 | "Appraisal practice service" means valuation services | ||||||
2 | performed by an individual acting as an appraiser, including, | ||||||
3 | but not limited to, appraisal, appraisal review, or appraisal | ||||||
4 | consulting. | ||||||
5 | "Appraiser" means a person who performs real estate or real | ||||||
6 | property appraisals. | ||||||
7 | "Assignment result" means an appraiser's opinions and | ||||||
8 | conclusions developed specific to an assignment. | ||||||
9 | "Board" means the Real Estate Appraisal Administration and | ||||||
10 | Disciplinary Board. | ||||||
11 | "Client" means the party or parties who engage an appraiser | ||||||
12 | by 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.
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2 | "Coordinator" means the Coordinator of the Appraisal | ||||||
3 | Management Company Registration Unit of the Department or his | ||||||
4 | or her designee. | ||||||
5 | "Department" means the Department of Financial and | ||||||
6 | Professional Regulation. | ||||||
7 | "Entity" means a corporation, a limited liability company, | ||||||
8 | partnership, a sole proprietorship, or other entity providing | ||||||
9 | services or holding itself out to provide services as an | ||||||
10 | appraisal management company or an appraisal management | ||||||
11 | service. | ||||||
12 | "End-user client" means any person who utilizes or engages | ||||||
13 | the services of an appraiser through an appraisal management | ||||||
14 | company. | ||||||
15 | "Financial institution" means any bank, savings bank, | ||||||
16 | savings and loan association, credit union, mortgage broker, | ||||||
17 | mortgage banker, registrant under the Consumer Installment | ||||||
18 | Loan Act or the Sales Finance Agency Act, or a corporate | ||||||
19 | fiduciary, subsidiary, affiliate, parent company, or holding | ||||||
20 | company of any registrant, or any institution involved in real | ||||||
21 | estate financing that is regulated by State or federal law. | ||||||
22 | "Person" means individuals, entities, sole | ||||||
23 | proprietorships, corporations, limited liability companies, | ||||||
24 | and partnerships, foreign or domestic, except that when the | ||||||
25 | context otherwise requires, the term may refer to a single | ||||||
26 | individual or other described entity.
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1 | "Quality control review" means a review of an appraisal | ||||||
2 | report for compliance and completeness, including grammatical, | ||||||
3 | typographical, or other similar errors, unrelated to | ||||||
4 | developing an opinion of value. | ||||||
5 | "Real estate" means an identified parcel or tract of land, | ||||||
6 | including any improvements. | ||||||
7 | "Real estate related financial transaction" means any | ||||||
8 | transaction 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 | ||||||
18 | inherent in the ownership of real estate. | ||||||
19 | "Secretary" means the Secretary of Financial and | ||||||
20 | Professional Regulation. | ||||||
21 | "USPAP" means the Uniform Standards of Professional | ||||||
22 | Appraisal Practice as adopted by the Appraisal Standards Board | ||||||
23 | under Title XI. | ||||||
24 | "Valuation" means any estimate of the value of real | ||||||
25 | property in connection with a creditor's decision to provide | ||||||
26 | credit, including those values developed under a policy of a |
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1 | government sponsored enterprise or by an automated valuation | ||||||
2 | model or other methodology or mechanism. | ||||||
3 | Section 15. Exemptions. Nothing in this Act shall apply to | ||||||
4 | any 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 | ||||||
15 | Dodd-Frank Wall Street Reform and Consumer Protection Act | ||||||
16 | provides that an appraisal management company is a subsidiary | ||||||
17 | owned and controlled by a financial institution regulated by a | ||||||
18 | federal financial institution's regulatory agency and is | ||||||
19 | exempt from State appraisal management company registration | ||||||
20 | requirements, the Department, shall, by rule, provide for the | ||||||
21 | implementation of such an exemption. | ||||||
22 | Section 20. Restrictions and limitations. Beginning | ||||||
23 | January 1, 2012, it is unlawful for a person or entity to act | ||||||
24 | or assume to act as an appraisal management company as defined | ||||||
25 | in this Act, to engage in the business of appraisal management |
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1 | service, or to advertise or hold himself or herself out to be a | ||||||
2 | registered appraisal management company without first | ||||||
3 | obtaining a registration issued by the Department under this | ||||||
4 | Act. A person or entity that violates this Section is guilty of | ||||||
5 | a Class A misdemeanor for the first offense and a Class 4 | ||||||
6 | felony for second and subsequent offenses. | ||||||
7 | Persons practicing as an appraisal management company in | ||||||
8 | Illinois as of the effective date of this Act may continue to | ||||||
9 | practice as provided in this Act until the Department has | ||||||
10 | adopted rules implementing this Act. To continue practicing as | ||||||
11 | an appraisal management company after the adoption of rules, | ||||||
12 | persons shall apply for registration within 180 days after the | ||||||
13 | effective date of the rules. If an application is received | ||||||
14 | during the 180-day period, the person may continue to practice | ||||||
15 | until the Department acts to grant or deny registration. If an | ||||||
16 | application is not filed within the 180-day period, the person | ||||||
17 | must cease the practice at the conclusion of the 180-day period | ||||||
18 | and until the Department acts to grant a registration to the | ||||||
19 | person. | ||||||
20 | Section 25. Powers and duties of the Department. Subject | ||||||
21 | to 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 | ||||||
23 | Registration. The Coordinator of Real Estate Appraisal shall | ||||||
24 | serve as the Coordinator of Appraisal Management Company | ||||||
25 | Registration. The Coordinator shall have the same duties and |
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1 | responsibilities in regards to appraisal management company | ||||||
2 | registration as the Coordinator has in regards to appraisal | ||||||
3 | licensure as set forth in the Real Estate Appraiser Licensing | ||||||
4 | Act of 2002. | ||||||
5 | Section 35. Application for original registration. | ||||||
6 | Applications for original registration shall be made to the | ||||||
7 | Department on forms prescribed by the Department and | ||||||
8 | accompanied by the required fee. All applications shall contain | ||||||
9 | the information that, in the judgment of the Department, will | ||||||
10 | enable the Department to pass on the qualifications of the | ||||||
11 | applicant to be registered to practice as set by rule. | ||||||
12 | Section 40. Qualifications for registration. | ||||||
13 | (a) The Department may issue a certification of | ||||||
14 | registration to practice under this Act to any applicant who | ||||||
15 | applies to the Department on forms provided by the Department, | ||||||
16 | pays the required non-refundable fee, and who provides the | ||||||
17 | following: | ||||||
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;
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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 | ||||||
10 | complete the application process. If the process has not been | ||||||
11 | completed in 3 years, the application shall be denied, the fee | ||||||
12 | shall be forfeited, and the applicant must reapply and meet the | ||||||
13 | requirements in effect at the time of reapplication. | ||||||
14 | Section 45. Expiration and renewal of registration. The | ||||||
15 | expiration date and renewal period for each registration shall | ||||||
16 | be set by rule. A registrant whose registration has expired may | ||||||
17 | reinstate his or her registration at any time within 5 years | ||||||
18 | after the expiration thereof, by making a renewal application | ||||||
19 | and by paying the required fee. | ||||||
20 | Any registrant whose registration has expired for more than | ||||||
21 | 5 years may have it restored by making application to the | ||||||
22 | Department, paying the required fee, and filing acceptable | ||||||
23 | proof of fitness to have the registration restored as set by | ||||||
24 | rule. |
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1 | Section 50. Bonds of registrants. All registrants shall | ||||||
2 | maintain a bond in accordance with this Section. Each bond | ||||||
3 | shall be for the recovery of expenses, fines, or fees due to or | ||||||
4 | levied by the Department in accordance with this Act. The bond | ||||||
5 | shall be payable when the registrant fails to comply with any | ||||||
6 | provisions of this Act and shall be in the form of a surety | ||||||
7 | bond in the amount of $25,000 as prescribed by the Department | ||||||
8 | by rule. The bond shall be payable to the Department and shall | ||||||
9 | be issued by an insurance company authorized to do business in | ||||||
10 | this State. A copy of the bond, including any and all riders | ||||||
11 | and endorsements executed subsequent to the effective date of | ||||||
12 | the bond, shall be placed on file with the Department within 10 | ||||||
13 | days of the execution thereof. The bond may only be used for | ||||||
14 | the recovery of expenses or the collection of fines or fees due | ||||||
15 | to or levied by the Department and is not to be utilized for | ||||||
16 | any other purpose. | ||||||
17 | Section 55. Fees. | ||||||
18 | (a) The fees for the administration and enforcement of this | ||||||
19 | Act, including, but not limited to, original registration, | ||||||
20 | renewal, and restoration fees, shall be set by the Department | ||||||
21 | by rule. The fees shall not be refundable. | ||||||
22 | (b) All fees and other moneys collected under this Act | ||||||
23 | shall be deposited in the Appraisal Administration Fund. | ||||||
24 | Section 60. Returned checks; fines. Any person who |
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1 | delivers a check or other payment to the Department that is | ||||||
2 | returned to the Department unpaid by the financial institution | ||||||
3 | upon which it is drawn shall pay to the Department, in addition | ||||||
4 | to the amount already owed to the Department, a fine of $50. | ||||||
5 | The fines imposed by this Section are in addition to any other | ||||||
6 | discipline provided under this Act for unregistered practice or | ||||||
7 | practice on a nonrenewed registration. The Department shall | ||||||
8 | notify the person that payment of fees and fines shall be paid | ||||||
9 | to the Department by certified check or money order within 30 | ||||||
10 | calendar days of the notification. If, after the expiration of | ||||||
11 | 30 days after the date of the notification, the person has | ||||||
12 | failed to submit the necessary remittance, the Department shall | ||||||
13 | automatically terminate the registration or deny the | ||||||
14 | application, without hearing. If, after termination or denial, | ||||||
15 | the person seeks a registration, he or she shall apply to the | ||||||
16 | Department for restoration or issuance of the registration and | ||||||
17 | pay all fees and fines due to the Department. The Department | ||||||
18 | may establish a fee for the processing of an application for | ||||||
19 | restoration of a registration to pay all expenses of processing | ||||||
20 | this application. The Secretary may waive the fines due under | ||||||
21 | this Section in individual cases where the Secretary finds that | ||||||
22 | the fines would be unreasonable or unnecessarily burdensome.
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23 | Section 65. Disciplinary actions. | ||||||
24 | (a) The Department may refuse to issue or renew, or may | ||||||
25 | revoke, suspend, place on probation, reprimand, or take other |
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1 | disciplinary or non-disciplinary action as the Department may | ||||||
2 | deem appropriate, including imposing fines not to exceed | ||||||
3 | $25,000 for each violation, with regard to any registration for | ||||||
4 | any 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 | ||||||
25 | without hearing as provided for in the Civil Administrative | ||||||
26 | Code the registration of any person who fails to file a return, |
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1 | or to pay the tax, penalty or interest shown in a filed return, | ||||||
2 | or to pay any final assessment of the tax, penalty, or interest | ||||||
3 | as required by any tax Act administered by the Illinois | ||||||
4 | Department of Revenue, until such time as the requirements of | ||||||
5 | any 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 | ||||||
8 | Secretary, in the name of the People of the State of Illinois, | ||||||
9 | through the Attorney General or the State's Attorney of the | ||||||
10 | county in which the violation is alleged to have occurred, may | ||||||
11 | petition for an order enjoining the violation or for an order | ||||||
12 | enforcing compliance with this Act. Upon the filing of a | ||||||
13 | verified petition, the court with appropriate jurisdiction may | ||||||
14 | issue a temporary restraining order, without notice or bond, | ||||||
15 | and may preliminarily and permanently enjoin the violation. If | ||||||
16 | it is established that the person has violated or is violating | ||||||
17 | the injunction, the court may punish the offender for contempt | ||||||
18 | of court. Proceedings under this Section are in addition to, | ||||||
19 | and not in lieu of, all other remedies and penalties provided | ||||||
20 | by this Act. | ||||||
21 | (b) Whenever, in the opinion of the Department, a person | ||||||
22 | violates any provision of this Act, the Department may issue a | ||||||
23 | rule to show cause why an order to cease and desist should not | ||||||
24 | be entered against that person. The rule shall clearly set | ||||||
25 | forth the grounds relied upon by the Department and shall allow |
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1 | at least 7 days from the date of the rule to file an answer | ||||||
2 | satisfactory to the Department. Failure to answer to the | ||||||
3 | satisfaction of the Department shall cause an order to cease | ||||||
4 | and desist to be issued. | ||||||
5 | Section 75. Investigations; notice and hearing. The | ||||||
6 | Department may investigate the actions of any applicant or of | ||||||
7 | any person or persons rendering or offering to render any | ||||||
8 | services requiring registration under this Act or any person | ||||||
9 | holding or claiming to hold a registration as an appraisal | ||||||
10 | management company. The Department shall, before revoking, | ||||||
11 | suspending, placing on probation, reprimanding, or taking any | ||||||
12 | other disciplinary or non-disciplinary action under Section 65 | ||||||
13 | of this Act, at least 30 days before the date set for the | ||||||
14 | hearing, (i) notify the accused in writing of the charges made | ||||||
15 | and the time and place for the hearing on the charges, (ii) | ||||||
16 | direct him or her to file a written answer to the charges with | ||||||
17 | the Department under oath within 20 days after the service on | ||||||
18 | him or her of the notice, and (iii) inform the accused that, if | ||||||
19 | he or she fails to answer, default will be taken against him or | ||||||
20 | her or that his or her registration may be suspended, revoked, | ||||||
21 | placed on probationary status, or other disciplinary action | ||||||
22 | taken with regard to the registration, including limiting the | ||||||
23 | scope, nature, or extent of his or her practice, as the | ||||||
24 | Department may consider proper. At the time and place fixed in | ||||||
25 | the notice, the Department shall proceed to hear the charges |
| |||||||
| |||||||
1 | and the parties or their counsel shall be accorded ample | ||||||
2 | opportunity to present any pertinent statements, testimony, | ||||||
3 | evidence, and arguments. The Department may continue the | ||||||
4 | hearing from time to time. In case the person, after receiving | ||||||
5 | the notice, fails to file an answer, his or her registration | ||||||
6 | may, in the discretion of the Department, be suspended, | ||||||
7 | revoked, placed on probationary status, or the Department may | ||||||
8 | take whatever disciplinary action considered proper, including | ||||||
9 | limiting the scope, nature, or extent of the person's practice | ||||||
10 | or the imposition of a fine, without a hearing, if the act or | ||||||
11 | acts charged constitute sufficient grounds for that action | ||||||
12 | under this Act. The written notice may be served by personal | ||||||
13 | delivery or by certified mail to the address specified by the | ||||||
14 | accused in his or her last notification with the Department. | ||||||
15 | Section 80. Record of proceedings; transcript. The | ||||||
16 | Department, at its expense, shall preserve a record of all | ||||||
17 | proceedings at the formal hearing of any case. The notice of | ||||||
18 | hearing, complaint, all other documents in the nature of | ||||||
19 | pleadings, written motions filed in the proceedings, the | ||||||
20 | transcripts of testimony, the report of the hearing officer, | ||||||
21 | and orders of the Department shall be in the record of the | ||||||
22 | proceeding. The Department shall furnish a transcript of the | ||||||
23 | record to any person interested in the hearing upon payment of | ||||||
24 | the fee required under Section 2105-115 of the Department of | ||||||
25 | Professional Regulation Law. |
| |||||||
| |||||||
1 | Section 85. Subpoenas; depositions; oaths. The Department | ||||||
2 | has the power to subpoena documents, books, records, or other | ||||||
3 | materials and to bring before it any person and to take | ||||||
4 | testimony either orally or by deposition, or both, with the | ||||||
5 | same fees and mileage and in the same manner as prescribed in | ||||||
6 | civil cases in the courts of this State. | ||||||
7 | The Secretary and the designated hearing officer have the | ||||||
8 | power to administer oaths to witnesses at any hearing that the | ||||||
9 | Department is authorized to conduct, and any other oaths | ||||||
10 | authorized in any Act administered by the Department. | ||||||
11 | Section 90. Compelling testimony. Any circuit court, upon | ||||||
12 | application of the Department or designated hearing officer may | ||||||
13 | enter an order requiring the attendance of witnesses and their | ||||||
14 | testimony, and the production of documents, papers, files, | ||||||
15 | books, and records in connection with any hearing or | ||||||
16 | investigation. The court may compel obedience to its order by | ||||||
17 | proceedings for contempt. | ||||||
18 | Section 95. Findings and recommendations. At the | ||||||
19 | conclusion of the hearing, the designated hearing officer shall | ||||||
20 | present to the Secretary a written report of his or her | ||||||
21 | findings of fact, conclusions of law, and recommendations. The | ||||||
22 | report shall contain a finding whether or not the accused | ||||||
23 | person violated this Act or its rules or failed to comply with |
| |||||||
| |||||||
1 | the conditions required in this Act or its rules. The hearing | ||||||
2 | officer shall specify the nature of any violations or failure | ||||||
3 | to comply and shall make his or her recommendations to the | ||||||
4 | Secretary. In making recommendations for any disciplinary | ||||||
5 | actions, the hearing officer may take into consideration all | ||||||
6 | facts and circumstances bearing upon the reasonableness of the | ||||||
7 | conduct of the accused and the potential for future harm to the | ||||||
8 | public, including, but not limited to, previous discipline of | ||||||
9 | the accused by the Department, intent, degree of harm to the | ||||||
10 | public and likelihood of harm in the future, any restitution | ||||||
11 | made by the accused, and whether the incident or incidents | ||||||
12 | contained in the complaint appear to be isolated or represent a | ||||||
13 | continuing pattern of conduct. In making his or her | ||||||
14 | recommendations for discipline, the hearing officer shall | ||||||
15 | endeavor to ensure that the severity of the discipline | ||||||
16 | recommended is reasonably related to the severity of the | ||||||
17 | violation.
The report of findings of fact, conclusions of law, | ||||||
18 | and recommendation of the hearing officer shall be the basis | ||||||
19 | for the Department's order refusing to issue, restore, or renew | ||||||
20 | a registration, or otherwise disciplining a registrant. If the | ||||||
21 | Secretary disagrees with the recommendations of the hearing | ||||||
22 | officer, the Secretary may issue an order in contravention of | ||||||
23 | the hearing officer recommendations. The finding is not | ||||||
24 | admissible in evidence against the person in a criminal | ||||||
25 | prosecution brought for a violation of this Act, but the | ||||||
26 | hearing and finding are not a bar to a criminal prosecution |
| |||||||
| |||||||
1 | brought for a violation of this Act.
| ||||||
2 | Section 100. Hearing officer; rehearing. At the conclusion | ||||||
3 | of the hearing, a copy of the hearing officer's report shall be | ||||||
4 | served upon the applicant or registrant by the Department, | ||||||
5 | either personally or as provided in this Act for the service of | ||||||
6 | a notice of hearing. Within 20 days after service, the | ||||||
7 | applicant or registrant may present to the Department a motion | ||||||
8 | in writing for a rehearing, which shall specify the particular | ||||||
9 | grounds for rehearing. The Department may respond to the motion | ||||||
10 | for rehearing within 20 days after its service on the | ||||||
11 | Department. If no motion for rehearing is filed, then upon the | ||||||
12 | expiration of the time specified for filing such a motion, or | ||||||
13 | if a motion for rehearing is denied, then upon denial, the | ||||||
14 | Secretary may enter an order in accordance with recommendations | ||||||
15 | of the hearing officer except as provided in Section 105 or 110 | ||||||
16 | of this Act. If the applicant or registrant orders from the | ||||||
17 | reporting service and pays for a transcript of the record | ||||||
18 | within the time for filing a motion for rehearing, the 20-day | ||||||
19 | period within which a motion may be filed shall commence upon | ||||||
20 | the delivery of the transcript to the applicant or registrant. | ||||||
21 | Section 105. Secretary; rehearing. Whenever the Secretary | ||||||
22 | believes that substantial justice has not been done in the | ||||||
23 | revocation, suspension, or refusal to issue, restore, or renew | ||||||
24 | a registration, or other discipline of an applicant or |
| |||||||
| |||||||
1 | registrant, he or she may order a rehearing by the same or | ||||||
2 | other hearing officers. | ||||||
3 | Section 110. Appointment of a hearing officer. The | ||||||
4 | Secretary has the authority to appoint any attorney licensed to | ||||||
5 | practice law in the State to serve as the hearing officer in | ||||||
6 | any action for refusal to issue, restore, or renew a | ||||||
7 | registration or to discipline a registrant. The hearing officer | ||||||
8 | has full authority to conduct the hearing. The hearing officer | ||||||
9 | shall report his or her findings of fact, conclusions of law, | ||||||
10 | and recommendations to the Secretary. If the Secretary | ||||||
11 | disagrees with the recommendation of the hearing officer, the | ||||||
12 | Secretary may issue an order in contravention of the | ||||||
13 | recommendation. | ||||||
14 | Section 115. Order or certified copy; prima facie proof. | ||||||
15 | An order or certified copy thereof, over the seal of the | ||||||
16 | Department and purporting to be signed by the Secretary, is | ||||||
17 | prima facie proof that: | ||||||
18 | (1) the signature is the genuine signature of the | ||||||
19 | Secretary; and | ||||||
20 | (2) the Secretary is duly appointed and qualified. | ||||||
21 | Section 120. Restoration of suspended or revoked | ||||||
22 | registration. At any time after the successful completion of a | ||||||
23 | term of suspension or revocation of a registration, the |
| |||||||
| |||||||
1 | Department may restore it to the registrant, upon the written | ||||||
2 | recommendation of the hearing officer, unless after an | ||||||
3 | investigation and a hearing the Secretary determines that | ||||||
4 | restoration is not in the public interest. | ||||||
5 | Section 125. Surrender of registration. Upon the | ||||||
6 | revocation or suspension of a registration, the registrant | ||||||
7 | shall immediately surrender his or her registration to the | ||||||
8 | Department. If the registrant fails to do so, the Department | ||||||
9 | has the right to seize the registration. | ||||||
10 | Section 130. Summary suspension of a registration. The | ||||||
11 | Secretary may summarily suspend the registration of any | ||||||
12 | registrant under this Act without a hearing, simultaneously | ||||||
13 | with the institution of proceedings for a hearing provided for | ||||||
14 | in Section 75 of this Act, if the Secretary finds that evidence | ||||||
15 | in the Secretary's possession indicates that the continuation | ||||||
16 | of practice by the registrant would constitute an imminent | ||||||
17 | danger to the public. In the event that the Secretary summarily | ||||||
18 | suspends the registration of a registrant under this Section | ||||||
19 | without a hearing, a hearing must be commenced within 30 days | ||||||
20 | after the suspension has occurred and concluded as | ||||||
21 | expeditiously as practical.
| ||||||
22 | Section 135. Administrative review; venue. | ||||||
23 | (a) All final administrative decisions of the Department |
| |||||||
| |||||||
1 | are subject to judicial review under the Administrative Review | ||||||
2 | Law and its rules. The term "administrative decision" is | ||||||
3 | defined as in Section 3-101 of the Code of Civil Procedure. | ||||||
4 | (b) Proceedings for judicial review shall be commenced in | ||||||
5 | the circuit court of the county in which the party applying for | ||||||
6 | review resides, but if the party is not a resident of Illinois, | ||||||
7 | the venue shall be in Sangamon County.
| ||||||
8 | Section 140. Certifications of record; costs. The | ||||||
9 | Department shall not be required to certify any record to the | ||||||
10 | court, to file an answer in court, or to otherwise appear in | ||||||
11 | any court in a judicial review proceeding unless and until the | ||||||
12 | Department has received from the plaintiff payment of the costs | ||||||
13 | of furnishing and certifying the record, which costs shall be | ||||||
14 | determined by the Department. Failure on the part of the | ||||||
15 | plaintiff to file the receipt in court is grounds for dismissal | ||||||
16 | of the action. | ||||||
17 | Section 145. Violations. Any person who is found to have | ||||||
18 | violated any provision of this Act is guilty of a Class A | ||||||
19 | misdemeanor. On conviction of a second or subsequent offense, | ||||||
20 | the 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 | ||||||
23 | person who violates this Act shall forfeit and pay a civil |
| |||||||
| |||||||
1 | penalty to the Department in an amount not to exceed $25,000 | ||||||
2 | for each violation as determined by the Department. The civil | ||||||
3 | penalty shall be assessed by the Department in accordance with | ||||||
4 | the provisions of this Act.
| ||||||
5 | (b) The Department has the authority and power to | ||||||
6 | investigate any and all unregistered activity. | ||||||
7 | (c) The civil penalty shall be paid within 60 days after | ||||||
8 | the effective date of the order imposing the civil penalty. The | ||||||
9 | order shall constitute a judgment and may be filed and | ||||||
10 | execution had thereon in the same manner as any judgment from | ||||||
11 | any court of record. | ||||||
12 | (d) All moneys collected under this Section shall be | ||||||
13 | deposited into the Appraisal Administration Fund. | ||||||
14 | Section 155. Consent order. At any point in the | ||||||
15 | proceedings as provided in this Act, both parties may agree to | ||||||
16 | a negotiated consent order. The consent order shall be final | ||||||
17 | upon signature of the Secretary. | ||||||
18 | Section 160. Business practice provisions; standards of | ||||||
19 | practice. | ||||||
20 | (a) The Department may adopt by rule the Uniform Standards | ||||||
21 | of Professional Appraisal Practice as published from time to | ||||||
22 | time by the Appraisal Standards Board of the Appraisal | ||||||
23 | Foundation. Appraisal management companies shall not interfere | ||||||
24 | with adherence to the Uniform Standards of Professional |
| |||||||
| |||||||
1 | Appraisal Practice or the Real Estate Appraiser Act of 2002 or | ||||||
2 | a subsequent Act by individuals licensed under the respective | ||||||
3 | Acts. | ||||||
4 | (b) All payment policies from registrants under this Act to | ||||||
5 | appraisers shall be written and definitive in nature.
| ||||||
6 | (c) In the event of a value dispute or a requested | ||||||
7 | reconsideration of value, the appraisal management company | ||||||
8 | shall deliver all information that supports an increase or | ||||||
9 | decrease in value to the appraiser. This information may | ||||||
10 | include, but is not limited to, additional comparable sales. | ||||||
11 | (d) Each entity registered under this Act shall designate a | ||||||
12 | controlling person who is responsible to assure that the | ||||||
13 | company operates in compliance with this Act. The company shall | ||||||
14 | file a form provided by the Department indicating the company's | ||||||
15 | designation of the controlling person and such individual's | ||||||
16 | acceptance of the responsibility. A registrant shall notify the | ||||||
17 | Department of any change in its controlling person within 30 | ||||||
18 | days. Any registrant who does not comply with this subsection | ||||||
19 | (d) shall have its registration suspended under the provisions | ||||||
20 | set forth in this Act until the registrant complies with this | ||||||
21 | Section. Any individual registrant who operates as a sole | ||||||
22 | proprietorship shall be considered a designated controlling | ||||||
23 | person for the purposes of this Act. | ||||||
24 | (e)
Appraisal management companies or employees of an | ||||||
25 | appraisal management company involved in a real estate | ||||||
26 | transaction who have a reasonable basis to believe that an |
| |||||||
| |||||||
1 | appraiser involved in the preparation of an appraisal for the | ||||||
2 | real estate transaction has failed to comply with the Uniform | ||||||
3 | Standards of Professional Appraisal Practice, has violated | ||||||
4 | this Act or its rules, or has otherwise engaged in unethical | ||||||
5 | conduct shall report the matter to the Department. Any | ||||||
6 | registrant, employee, or individual acting on behalf of a | ||||||
7 | registrant, acting in good faith, and not in a willful and | ||||||
8 | wanton manner, in complying with this Act by reporting the | ||||||
9 | conduct to the Department shall not, as a result of such | ||||||
10 | actions, be subject to criminal prosecution or civil damages. | ||||||
11 | (f) Appraisal management companies are required to be in | ||||||
12 | compliance with the appraisal independence standards | ||||||
13 | established under Section 129E of the federal Truth in Lending | ||||||
14 | Act, including the requirement that fee appraisers be | ||||||
15 | compensated at a customary and reasonable rate when the | ||||||
16 | appraisal management company is providing services for a | ||||||
17 | consumer credit transaction secured by the principal dwelling | ||||||
18 | of a consumer. To the extent permitted by federal law or | ||||||
19 | regulation, the
Department shall formulate rules pertaining to | ||||||
20 | customary and reasonable rates of
compensation for fee | ||||||
21 | appraisers. The appraisal management company must certify
to | ||||||
22 | the Department that it has policies and procedures in place to | ||||||
23 | be in compliance
under the Final Interim Rule of the federal | ||||||
24 | Dodd-Frank Wall Street Reform and Consumer Protection Act.
| ||||||
25 | (g) No appraisal management company procuring or | ||||||
26 | facilitating an appraisal may have a direct or indirect |
| |||||||
| |||||||
1 | interest, financial or otherwise, in the real estate or the | ||||||
2 | transaction that is the subject of the appraisal, as defined by | ||||||
3 | the federal Dodd-Frank Wall Street Reform and Consumer | ||||||
4 | Protection Act, any amendments thereto, or successor acts or | ||||||
5 | other applicable provisions of federal law or regulations. | ||||||
6 | Section 165. Prohibited activities. | ||||||
7 | (a) No person or entity acting in the capacity of an | ||||||
8 | appraisal management company shall improperly influence or | ||||||
9 | attempt to improperly influence the development, reporting, | ||||||
10 | result, or review of any appraisal by engaging, without | ||||||
11 | limitation, 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. |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 | ||||||
5 | assignment or a contract with an independent appraiser for the | ||||||
6 | purpose of evading the provisions of this Act.
| ||||||
7 | (c) No registrant or other person or entity may alter, | ||||||
8 | modify, or otherwise change a completed appraisal report | ||||||
9 | submitted by an independent appraiser, including without | ||||||
10 | limitation, 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 | ||||||
17 | appraiser to provide it with the appraiser's digital signature | ||||||
18 | or seal. However, nothing in this Act shall be deemed to | ||||||
19 | prohibit an appraiser from voluntarily providing his or her | ||||||
20 | digital signature or seal to another person on an | ||||||
21 | assignment-by-assignment basis, in accordance with USPAP. | ||||||
22 | (e) Nothing in this Act shall prohibit an appraisal | ||||||
23 | management 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; |
| |||||||
| |||||||
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 | ||||||
5 | the Department in the course of an examination or investigation | ||||||
6 | of a licensee or applicant, including, but not limited to, any | ||||||
7 | complaint against a licensee filed with the Department and | ||||||
8 | information collected to investigate any such complaint, shall | ||||||
9 | be maintained for the confidential use of the Department and | ||||||
10 | shall not be disclosed. The Department may not disclose the | ||||||
11 | information to anyone other than law enforcement officials, | ||||||
12 | other regulatory agencies that have an appropriate regulatory | ||||||
13 | interest as determined by the Secretary, or to a party | ||||||
14 | presenting a lawful subpoena to the Department. Information and | ||||||
15 | documents disclosed to a federal, State, county, or local law | ||||||
16 | enforcement agency shall not be disclosed by the agency for any | ||||||
17 | purpose to any other agency or person. A formal complaint filed | ||||||
18 | against a licensee by the Department or any order issued by the | ||||||
19 | Department against a licensee or applicant shall be a public | ||||||
20 | record, except as otherwise prohibited by law. | ||||||
21 | Section 175. Illinois Administrative Procedure Act; | ||||||
22 | application. The Illinois Administrative Procedure Act is | ||||||
23 | expressly adopted and incorporated in this Act as if all of the | ||||||
24 | provisions of that Act were included in this Act, except that |
| |||||||
| |||||||
1 | the provision of paragraph (d) of Section 10-65 of the Illinois | ||||||
2 | Administrative Procedure Act, which provides that at hearings | ||||||
3 | the registrant has the right to show compliance with all lawful | ||||||
4 | requirements for retention or continuation or renewal of the | ||||||
5 | registration, is specifically excluded. For the purpose of this | ||||||
6 | Act, the notice required under Section 10-25 of the Illinois | ||||||
7 | Administrative Procedure Act is considered sufficient when | ||||||
8 | mailed to the last known address of a party. | ||||||
9 | Section 180. Home rule. The regulation and registration of | ||||||
10 | practice as an appraisal management company are exclusive | ||||||
11 | powers and functions of the State. A home rule unit may not | ||||||
12 | regulate the practice or require the registration as an | ||||||
13 | appraisal management company. This Section is a denial and | ||||||
14 | limitation 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 | ||||||
17 | changing 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
| ||||||
20 | Acts 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.
|
| |||||||
| |||||||
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 | ||||||
6 | Act.
| ||||||
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 | ||||||
10 | Act 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 | ||||||
13 | 2002 is amended by changing Sections 1-10, 5-5, 5-55, 10-5, | ||||||
14 | 10-10, 10-20, 15-10, 15-30, and 25-15 and by adding Sections | ||||||
15 | 10-17 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 | ||||||
19 | context
otherwise requires:
| ||||||
20 | "Accredited college or university, junior college, or | ||||||
21 | community college" means a college or university, junior | ||||||
22 | college, or community college that is approved or accredited by | ||||||
23 | the Board of Higher Education, a regional or national |
| |||||||
| |||||||
1 | accreditation association, or by an accrediting agency that is | ||||||
2 | recognized by the U.S. Secretary of Education.
| ||||||
3 | "Address of record" means the designated address recorded | ||||||
4 | by the Department in the applicant's or licensee's application | ||||||
5 | file or license file as maintained by the Department's | ||||||
6 | licensure maintenance unit. It is the duty of the applicant or | ||||||
7 | licensee to inform the Department of any change of address and | ||||||
8 | those changes must be made either through the Department's | ||||||
9 | website or by contacting the Department. | ||||||
10 | "Applicant" means person who applies to the Department
for | ||||||
11 | a license under this Act.
| ||||||
12 | "Appraisal" means
(noun) the act or process of developing | ||||||
13 | an opinion
of value; an
opinion of value (adjective) of or | ||||||
14 | pertaining to appraising
and related functions, such as | ||||||
15 | appraisal practice or appraisal services. | ||||||
16 | "Appraisal assignment" means a valuation service provided | ||||||
17 | as a consequence of an agreement between an appraiser and a | ||||||
18 | client. | ||||||
19 | "Appraisal consulting" means the act or process of | ||||||
20 | developing an analysis, recommendation, or opinion to solve a | ||||||
21 | problem, where an opinion of value is a component of the | ||||||
22 | analysis leading to the assignment results. | ||||||
23 | "Appraisal firm" means an appraisal entity that is 100% | ||||||
24 | owned and controlled by a person or persons licensed in | ||||||
25 | Illinois as a certified general real estate appraiser or a | ||||||
26 | certified residential real estate appraiser. "Appraisal firm" |
| |||||||
| |||||||
1 | does not include an appraisal management company. | ||||||
2 | "Appraisal management company" means any corporation, | ||||||
3 | limited liability company, partnership, sole proprietorship, | ||||||
4 | subsidiary, unit, or other business entity that directly or | ||||||
5 | indirectly performs the following appraisal management | ||||||
6 | services: (1) administers networks of independent contractors | ||||||
7 | or employee appraisers to perform real estate appraisal | ||||||
8 | assignments for clients; (2) receives requests for real estate | ||||||
9 | appraisal services from clients and, for a fee paid by the | ||||||
10 | client, enters into an agreement with one or more independent | ||||||
11 | appraisers to perform the real estate appraisal services | ||||||
12 | contained in the request; or (3) otherwise serves as a | ||||||
13 | third-party broker of appraisal management services between | ||||||
14 | clients and appraisers. "Appraisal management company" does | ||||||
15 | not include an appraisal firm. | ||||||
16 | "Appraisal practice" means valuation services performed by | ||||||
17 | an individual acting as an appraiser, including, but not | ||||||
18 | limited to, appraisal, appraisal review, or appraisal | ||||||
19 | consulting.
| ||||||
20 | "Appraisal report" means any communication, written or | ||||||
21 | oral, of an appraisal, appraisal review, or appraisal | ||||||
22 | consulting service that is transmitted to a client upon | ||||||
23 | completion of an assignment.
| ||||||
24 | "Appraisal review" means the act or process of developing | ||||||
25 | and communicating an opinion about the quality of another | ||||||
26 | appraiser's work that was performed as part of an appraisal, |
| |||||||
| |||||||
1 | appraisal review, or appraisal assignment.
| ||||||
2 | "Appraisal Subcommittee" means the Appraisal Subcommittee | ||||||
3 | of the Federal
Financial Institutions
Examination Council as | ||||||
4 | established by Title XI.
| ||||||
5 | "Appraiser" means a person who performs
real estate or real | ||||||
6 | property
appraisals.
| ||||||
7 | "AQB" means the Appraisal Qualifications Board of the | ||||||
8 | Appraisal Foundation.
| ||||||
9 | "Associate real estate trainee appraiser" means an | ||||||
10 | entry-level appraiser who holds
a license of this | ||||||
11 | classification under this Act with restrictions as to the scope | ||||||
12 | of practice
in
accordance with this Act.
| ||||||
13 | "Board" means the Real Estate Appraisal Administration and | ||||||
14 | Disciplinary Board.
| ||||||
15 | "Classroom hour" means 50 minutes of instruction out of | ||||||
16 | each 60 minute
segment of coursework.
| ||||||
17 | "Client" means the party or parties who engage an appraiser | ||||||
18 | by employment or contract in a specific appraisal assignment.
| ||||||
19 | "Coordinator" means the Coordinator of Real Estate | ||||||
20 | Appraisal of the Division of Professional Regulation of the | ||||||
21 | Department of Financial and Professional Regulation.
| ||||||
22 | "Department" means the Department of Financial and | ||||||
23 | Professional Regulation.
| ||||||
24 | "Federal financial institutions regulatory agencies" means | ||||||
25 | the Board of
Governors of the Federal Reserve
System, the | ||||||
26 | Federal Deposit Insurance Corporation, the Office of the
|
| |||||||
| |||||||
1 | Comptroller of the Currency, the
Office of Thrift Supervision, | ||||||
2 | and the National Credit Union Administration.
| ||||||
3 | "Federally related transaction" means any real | ||||||
4 | estate-related financial
transaction in which a federal
| ||||||
5 | financial institutions regulatory agency, the Department of | ||||||
6 | Housing
and Urban Development, Fannie Mae, Freddie Mae, or the | ||||||
7 | National
Credit Union Administration
engages in, contracts | ||||||
8 | for, or
regulates and requires the services
of an appraiser.
| ||||||
9 | "Financial institution" means any bank, savings bank, | ||||||
10 | savings and loan
association, credit union,
mortgage broker, | ||||||
11 | mortgage banker, licensee under the Consumer Installment Loan
| ||||||
12 | Act or the Sales
Finance Agency Act, or a corporate fiduciary, | ||||||
13 | subsidiary, affiliate, parent
company, or holding company
of | ||||||
14 | any such licensee, or any institution involved in real estate | ||||||
15 | financing that
is regulated by state or
federal law.
| ||||||
16 | "Modular Course" means the Appraisal Qualifying Course | ||||||
17 | Design conforming to the Sub Topics Course Outline contained in | ||||||
18 | the AQB Criteria 2008.
| ||||||
19 | "Person" means an individual, entity, sole proprietorship, | ||||||
20 | corporation, limited liability company, partnership, and joint | ||||||
21 | venture, foreign or domestic, except that when the context | ||||||
22 | otherwise requires, the term may refer to more than one | ||||||
23 | individual or other described entity. | ||||||
24 | "Real estate" means an identified parcel or tract of land, | ||||||
25 | including any
improvements.
| ||||||
26 | "Real estate related financial transaction" means any |
| |||||||
| |||||||
1 | transaction 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 | ||||||
11 | inherent in the
ownership of real estate.
| ||||||
12 | "Secretary" means the Secretary of Financial and | ||||||
13 | Professional Regulation.
| ||||||
14 | "State certified general real estate
appraiser" means an | ||||||
15 | appraiser who holds a
license of this classification under this | ||||||
16 | Act
and such classification applies to
the appraisal of all | ||||||
17 | types of real property without restrictions as to
the scope of | ||||||
18 | practice.
| ||||||
19 | "State certified residential real estate
appraiser" means | ||||||
20 | an appraiser who
holds a
license of this classification
under | ||||||
21 | this Act
and such classification applies to
the appraisal of
| ||||||
22 | one to 4 units of
residential real property without regard to | ||||||
23 | transaction value or complexity,
but with restrictions as to | ||||||
24 | the
scope of practice
in a federally related transaction in | ||||||
25 | accordance with Title
XI, the provisions of USPAP,
criteria | ||||||
26 | established by the AQB, and further defined by rule.
|
| |||||||
| |||||||
1 | "Supervising appraiser" means either (i) an appraiser who | ||||||
2 | holds a valid license under this Act as either a State | ||||||
3 | certified general real estate appraiser or a State certified | ||||||
4 | residential real estate appraiser, who co-signs an appraisal | ||||||
5 | report for an associate real estate trainee appraiser or (ii) a | ||||||
6 | State certified general real estate appraiser who holds a valid | ||||||
7 | license under this Act who co-signs an appraisal report for a | ||||||
8 | State certified residential real estate appraiser on | ||||||
9 | properties other than one to 4 units of residential real | ||||||
10 | property without regard to transaction value or complexity.
| ||||||
11 | "Title XI" means Title XI of the federal Financial | ||||||
12 | Institutions Reform,
Recovery and
Enforcement Act of 1989.
| ||||||
13 | "USPAP" means the Uniform Standards of Professional | ||||||
14 | Appraisal Practice as
promulgated by the
Appraisal Standards | ||||||
15 | Board pursuant to Title XI and by rule.
| ||||||
16 | "Valuation services" means services pertaining to aspects | ||||||
17 | of 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, | ||||||
23 | or advertise services
as a State certified general real estate
| ||||||
24 | appraiser, State certified residential real estate appraiser, | ||||||
25 | or associate real estate trainee appraiser, (ii)
develop a real |
| |||||||
| |||||||
1 | estate appraisal,
(iii)
practice as a real estate
appraiser, or | ||||||
2 | (iv)
advertise or hold himself or herself out to be a real | ||||||
3 | estate
appraiser , or (v) solicit clients or enter into an | ||||||
4 | appraisal engagement with clients
without a license issued | ||||||
5 | under this Act. A person who
violates this subsection is
guilty | ||||||
6 | of a Class A misdemeanor for a first offense and a Class 4 | ||||||
7 | felony for any subsequent offense.
| ||||||
8 | (a-5) It is unlawful for a person, unless registered as an | ||||||
9 | appraisal management company, to solicit clients or enter into | ||||||
10 | an appraisal engagement with clients without either a certified | ||||||
11 | residential real estate appraiser license or a certified | ||||||
12 | general real estate appraiser license issued under this Act. A | ||||||
13 | person who violates this subsection is guilty of a Class A | ||||||
14 | misdemeanor for a first offense and a Class 4 felony for any | ||||||
15 | subsequent offense. | ||||||
16 | (b) It
is unlawful for a person, other than a
person who | ||||||
17 | holds a valid license issued pursuant to this
Act as a State | ||||||
18 | certified general real estate appraiser, a
State
certified
| ||||||
19 | residential real estate appraiser,
or an associate real estate | ||||||
20 | trainee appraiser to use these titles or any other title, | ||||||
21 | designation, or
abbreviation likely to create the
impression | ||||||
22 | that the person is licensed as a real estate appraiser pursuant | ||||||
23 | to
this Act. A person who
violates this subsection is guilty of | ||||||
24 | a Class A misdemeanor for a first offense and a Class 4 felony | ||||||
25 | for any subsequent offense.
| ||||||
26 | (c)
The licensing requirements of this Act
do not
require a |
| |||||||
| |||||||
1 | person who holds a
valid license pursuant to the Real Estate | ||||||
2 | License Act of 2000, to be licensed
as a real estate appraiser
| ||||||
3 | under this Act,
unless that person is
providing
or attempting | ||||||
4 | to provide an appraisal report, as defined in Section
1-10 of | ||||||
5 | this Act, in connection with a federally-related transaction. | ||||||
6 | Nothing in this Act shall prohibit a person who holds a valid | ||||||
7 | license under the Real Estate License Act of 2000 from | ||||||
8 | performing a comparative market analysis or broker price | ||||||
9 | opinion for compensation, provided that the person does not | ||||||
10 | hold himself out as being a licensed real estate appraiser. | ||||||
11 | (d) Nothing in this Act shall preclude a State certified | ||||||
12 | general real estate appraiser, a State certified residential | ||||||
13 | real estate appraiser, or an associate real estate trainee | ||||||
14 | appraiser from rendering appraisals for or on behalf of a | ||||||
15 | partnership, association, corporation, firm, or group. | ||||||
16 | However, no State appraisal license or certification shall be | ||||||
17 | issued under this Act to a partnership, association, | ||||||
18 | corporation, firm, or group.
| ||||||
19 | (e) This Act does not apply to a county assessor, township | ||||||
20 | assessor, multi-township assessor, county supervisor of | ||||||
21 | assessments, or any deputy or employee of any county assessor, | ||||||
22 | township assessor, multi-township assessor, or county | ||||||
23 | supervisor of assessments who is performing his or her | ||||||
24 | respective duties in accordance with the provisions of the | ||||||
25 | Property Tax Code.
| ||||||
26 | (e-5) For the purposes of this Act, the following types of |
| |||||||
| |||||||
1 | valuations are not appraisals and may not be represented to be | ||||||
2 | appraisals, and a license is not required under this Act to
| ||||||
3 | perform such valuations if the valuations are performed by an | ||||||
4 | employee of the Illinois Department of Transportation or an | ||||||
5 | employee 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 | ||||||
15 | allow the State of Illinois, a political subdivision thereof, | ||||||
16 | or any public body to acquire real estate by eminent domain in | ||||||
17 | any manner
other than provided for in the Eminent Domain Act. | ||||||
18 | (f) A State real estate appraisal certification or license | ||||||
19 | is 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. |
| |||||||
| |||||||
1 | However, any person who is certified or licensed under this Act | ||||||
2 | and who performs any of the activities set forth in this | ||||||
3 | subsection (f) must comply with the provisions of this Act. A | ||||||
4 | person who violates this subsection (f) is guilty of a Class A | ||||||
5 | misdemeanor for a first offense and a Class 4 felony for any | ||||||
6 | subsequent offense. | ||||||
7 | (g) This Act does not apply to an employee, officer, | ||||||
8 | director, or member of a credit or loan committee of a | ||||||
9 | financial institution or any other person engaged by a | ||||||
10 | financial institution when performing an evaluation of real | ||||||
11 | property for the sole use of the financial institution in a | ||||||
12 | transaction for which the financial institution would not be | ||||||
13 | required to use the services of a State licensed or State | ||||||
14 | certified appraiser pursuant to federal regulations adopted | ||||||
15 | under Title XI of the federal Financial Institutions Reform, | ||||||
16 | Recovery, and Enforcement Act of 1989, nor does this Act apply | ||||||
17 | to the procurement of an automated valuation model. | ||||||
18 | "Automated valuation model" means an automated system that | ||||||
19 | is used to derive a property value through the use of publicly | ||||||
20 | available property records and various analytic methodologies | ||||||
21 | such as comparable sales prices, home characteristics, and | ||||||
22 | historical 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)
|
| |||||||
| |||||||
1 | Sec. 5-55. Fees. The Department
shall establish rules for | ||||||
2 | fees to be paid by applicants and licensees to
cover the | ||||||
3 | reasonable costs
of the Department
in administering and | ||||||
4 | enforcing the provisions of this Act. The Department , with the | ||||||
5 | advice of the Board,
may
also establish rules for
general fees | ||||||
6 | to cover the reasonable expenses of carrying out other | ||||||
7 | functions
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 | ||||||
13 | estate appraiser
in his or
her scope of practice in
a federally | ||||||
14 | related transaction. A certified general real estate appraiser
| ||||||
15 | may independently provide
appraisal
services, review, or | ||||||
16 | consulting
relating to any type of property for which he or she | ||||||
17 | has experience or
is
competent. All such appraisal
practice | ||||||
18 | must be made in accordance with the provisions of USPAP, | ||||||
19 | criteria
established by the AQB, and rules adopted pursuant to | ||||||
20 | this Act.
| ||||||
21 | (b) A State certified residential real estate appraiser is | ||||||
22 | limited in his or
her scope of practice
to in a
federally | ||||||
23 | related transaction as provided by Title XI,
the provisions of | ||||||
24 | USPAP, criteria established by the AQB, and the
rules adopted | ||||||
25 | pursuant to this Act.
|
| |||||||
| |||||||
1 | (c) A State certified residential real estate appraiser | ||||||
2 | must have a State certified general real estate appraiser who | ||||||
3 | holds a valid license under this Act co-sign all appraisal | ||||||
4 | reports on properties other than one to 4 units of residential | ||||||
5 | real property without regard to transaction value or | ||||||
6 | complexity.
| ||||||
7 | (d) An associate real estate trainee appraiser is limited | ||||||
8 | in his or her scope of
practice in all transactions in | ||||||
9 | accordance with the provisions of
USPAP, this
Act, and the | ||||||
10 | rules adopted pursuant to this Act. In addition,
an associate | ||||||
11 | real estate trainee appraiser shall be required to have
a State | ||||||
12 | certified
general real estate
appraiser or State certified | ||||||
13 | residential real estate appraiser who holds a
valid license | ||||||
14 | under this Act
to co-sign all appraisal reports. The associate | ||||||
15 | real estate trainee appraiser licensee may not have more than 3 | ||||||
16 | supervising appraisers, and a supervising appraiser may not | ||||||
17 | supervise more than 3 associate real estate trainee appraisers | ||||||
18 | at one time. A chronological appraisal log on an approved log | ||||||
19 | form shall be maintained by the associate real estate trainee | ||||||
20 | appraiser and shall be made available to the Department upon | ||||||
21 | request.
| ||||||
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 |
| |||||||
| |||||||
1 | under this Act
must comply with standards
of professional | ||||||
2 | appraisal practice adopted by the Department. The Department
| ||||||
3 | must adopt, as part
of
its rules, the Uniform
Standards of | ||||||
4 | Professional Appraisal Practice (USPAP) as published from time | ||||||
5 | to time by
the Appraisal Standards
Board of the Appraisal | ||||||
6 | Foundation. The Department
shall consider federal laws and
| ||||||
7 | regulations regarding the
licensure of real estate appraisers | ||||||
8 | prior to adopting its rules for the
administration of this Act. | ||||||
9 | When an appraisal obtained through an appraisal management | ||||||
10 | company is used for loan purposes, the borrower or loan | ||||||
11 | applicant shall be provided with a written disclosure of the | ||||||
12 | total compensation to the appraiser or appraisal firm within | ||||||
13 | the certification of the appraisal report and it shall not be | ||||||
14 | redacted 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 | ||||||
18 | date of this amendatory Act of the 97th General Assembly, the | ||||||
19 | Department or its designee shall conduct a survey of fees for | ||||||
20 | appraisal services for single-family residences, two-family | ||||||
21 | residences, three-family residences, and four-family | ||||||
22 | residences. The fee survey shall exclude assignments ordered by | ||||||
23 | known appraisal management companies and complex assignments. | ||||||
24 | The Department may conduct additional surveys as necessitated | ||||||
25 | by rules adopted pursuant to the federal Dodd-Frank Wall Street |
| |||||||
| |||||||
1 | Reform and Consumer Protection Act. The Department may assess | ||||||
2 | an additional fee at the time of licensure or renewal to cover | ||||||
3 | the 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 | ||||||
7 | this Act shall
retain records as required by the most recent | ||||||
8 | version of the USPAP and as further defined by rule the | ||||||
9 | original
copy of all written contracts engaging his or her | ||||||
10 | services as an appraiser and
all appraisal
reports, including | ||||||
11 | any supporting data used to develop the appraisal report,
for a | ||||||
12 | period of 5 years or 2
years after the final disposition of any | ||||||
13 | judicial proceeding in which testimony
was given, whichever is
| ||||||
14 | longer. In addition, a person licensed under this Act shall | ||||||
15 | retain contracts,
logs, and appraisal reports used
in meeting | ||||||
16 | pre-license experience requirements for a period of 5 years and | ||||||
17 | shall 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,
| ||||||
23 | renew, or restore a license and may reprimand place on | ||||||
24 | probation or administrative
supervision,
or take any |
| |||||||
| |||||||
1 | disciplinary or non-disciplinary action, including
imposing
| ||||||
2 | conditions limiting the scope, nature, or extent of the real | ||||||
3 | estate appraisal
practice of a
licensee or reducing the | ||||||
4 | appraisal rank of a licensee,
and may impose an administrative | ||||||
5 | fine
not to exceed $25,000 for each violation upon a licensee
| ||||||
6 | for 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 |
| |||||||
| |||||||
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
|
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
1 | (b) The Department
may reprimand suspend, revoke,
or refuse | ||||||
2 | to issue or renew an education provider's
license, may | ||||||
3 | reprimand, place on probation, or otherwise discipline
an | ||||||
4 | education provider
and may suspend or revoke the course | ||||||
5 | approval of any course offered by
an education provider and may | ||||||
6 | impose an administrative fine
not to exceed $25,000 upon
an | ||||||
7 | education 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 |
| |||||||
| |||||||
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 | ||||||
19 | complaint against a licensee
through the issuance of a Consent | ||||||
20 | to Administrative Supervision order.
A licensee subject to a | ||||||
21 | Consent to Administrative Supervision order
shall be | ||||||
22 | considered by the Department
as an active licensee in good | ||||||
23 | standing. This order shall not be reported or
considered by the | ||||||
24 | Department
to be a discipline
of the licensee. The records | ||||||
25 | regarding an investigation and a Consent to
Administrative | ||||||
26 | Supervision order
shall be considered confidential and shall |
| |||||||
| |||||||
1 | not be released by the Department
except
as mandated by law.
A | ||||||
2 | complainant shall be notified if his or her complaint has been | ||||||
3 | resolved
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 | ||||||
8 | under this
Act against a person licensed
under this Act unless | ||||||
9 | the action is commenced within 5 years after the
occurrence of | ||||||
10 | the alleged violation or within at least 2 years after final | ||||||
11 | disposition of any judicial proceeding , including any appeals, | ||||||
12 | in which the appraiser provided testimony related to the | ||||||
13 | assignment, whichever period expires last.
A continuing | ||||||
14 | violation is deemed to have occurred on the date when the
| ||||||
15 | circumstances last existed
that gave rise to the alleged | ||||||
16 | continuing 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 | ||||||
20 | the Department in the course of an examination or investigation | ||||||
21 | of a licensee or applicant, including, but not limited to, any | ||||||
22 | complaint against a licensee filed with the Department and | ||||||
23 | information collected to investigate any such complaint, shall | ||||||
24 | be maintained for the confidential use of the Department and |
| |||||||
| |||||||
1 | shall not be disclosed. The Department may not disclose the | ||||||
2 | information to anyone other than law enforcement officials, | ||||||
3 | other regulatory agencies that have an appropriate regulatory | ||||||
4 | interest as determined by the Secretary, or to a party | ||||||
5 | presenting a lawful subpoena to the Department. Information and | ||||||
6 | documents disclosed to a federal, State, county, or local law | ||||||
7 | enforcement agency shall not be disclosed by the agency for any | ||||||
8 | purpose to any other agency or person. A formal complaint filed | ||||||
9 | against a licensee by the Department or any order issued by the | ||||||
10 | Department against a licensee or applicant shall be a public | ||||||
11 | record, 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; | ||||||
15 | appointment;
duties. The Secretary shall appoint, subject to | ||||||
16 | the Personnel Code, a Coordinator of Real Estate Appraisal. In | ||||||
17 | appointing the Coordinator, the Secretary shall give due | ||||||
18 | consideration to recommendations made by members, | ||||||
19 | organizations, and associations of the real estate appraisal | ||||||
20 | industry. On or after January 1, 2010, the Coordinator must | ||||||
21 | hold a current, valid State certified general real estate | ||||||
22 | appraiser license or a State certified residential real estate | ||||||
23 | appraiser license, which shall be surrendered to the Department | ||||||
24 | during the term of his or her appointment. The Coordinator must | ||||||
25 | take the 30-hour National Instructors Course on Uniform |
| |||||||
| |||||||
1 | Standards of Professional Appraisal Practice. The | ||||||
2 | Coordinator's license shall be returned in the same status as | ||||||
3 | it was on the date of surrender, credited with all fees that | ||||||
4 | came 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 |
| |||||||
| |||||||
1 | 2002 is amended by repealing Section 5-21. | ||||||
2 | Section 999. Effective date. This Act takes effect upon | ||||||
3 | becoming law. |