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| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB3430 Introduced 2/14/2014, by Sen. Karen McConnaughay SYNOPSIS AS INTRODUCED: |
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Amends the Real Estate Appraiser Licensing Act of 2002. Makes changes to the definitions of "appraisal", "appraisal report", "appraiser", "federal financial institutions regulatory agencies", and "federally related transaction" and deletes the definition of "modular course".
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| | A BILL FOR |
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| | SB3430 | | LRB098 19702 ZMM 54913 b |
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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 5. The Real Estate Appraiser Licensing Act of 2002 |
5 | | is amended by changing Section 1-10 as follows:
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6 | | (225 ILCS 458/1-10)
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7 | | (Section scheduled to be repealed on January 1, 2022)
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8 | | Sec. 1-10. Definitions. As used in this Act, unless the |
9 | | context
otherwise requires:
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10 | | "Accredited college or university, junior college, or |
11 | | community college" means a college or university, junior |
12 | | college, or community college that is approved or accredited by |
13 | | the Board of Higher Education, a regional or national |
14 | | accreditation association, or by an accrediting agency that is |
15 | | recognized by the U.S. Secretary of Education.
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16 | | "Address of record" means the designated address recorded |
17 | | by the Department in the applicant's or licensee's application |
18 | | file or license file as maintained by the Department's |
19 | | licensure maintenance unit. It is the duty of the applicant or |
20 | | licensee to inform the Department of any change of address and |
21 | | those changes must be made either through the Department's |
22 | | website or by contacting the Department. |
23 | | "Applicant" means person who applies to the Department
for |
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1 | | a license under this Act.
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2 | | "Appraisal" means
(noun) the act or process of developing |
3 | | an opinion
of value; an
opinion of value (adjective) of or |
4 | | pertaining to appraising
and related functions, such as |
5 | | appraisal practice or valuation appraisal services. |
6 | | "Appraisal assignment" means a valuation service provided |
7 | | as a consequence of an agreement between an appraiser and a |
8 | | client. |
9 | | "Appraisal consulting" means the act or process of |
10 | | developing an analysis, recommendation, or opinion to solve a |
11 | | problem, where an opinion of value is a component of the |
12 | | analysis leading to the assignment results. |
13 | | "Appraisal firm" means an appraisal entity that is 100% |
14 | | owned and controlled by a person or persons licensed in |
15 | | Illinois as a certified general real estate appraiser or a |
16 | | certified residential real estate appraiser. "Appraisal firm" |
17 | | does not include an appraisal management company. |
18 | | "Appraisal management company" means any corporation, |
19 | | limited liability company, partnership, sole proprietorship, |
20 | | subsidiary, unit, or other business entity that directly or |
21 | | indirectly performs the following appraisal management |
22 | | services: (1) administers networks of independent contractors |
23 | | or employee appraisers to perform real estate appraisal |
24 | | assignments for clients; (2) receives requests for real estate |
25 | | appraisal services from clients and, for a fee paid by the |
26 | | client, enters into an agreement with one or more independent |
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1 | | appraisers to perform the real estate appraisal services |
2 | | contained in the request; or (3) otherwise serves as a |
3 | | third-party broker of appraisal management services between |
4 | | clients and appraisers. "Appraisal management company" does |
5 | | not include an appraisal firm. |
6 | | "Appraisal practice" means valuation services performed by |
7 | | an individual acting as an appraiser, including, but not |
8 | | limited to, appraisal, appraisal review, or appraisal |
9 | | consulting.
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10 | | "Appraisal report" means any communication, written or |
11 | | oral, of an appraisal or , appraisal review , or appraisal |
12 | | consulting service that is transmitted to a client upon |
13 | | completion of an assignment.
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14 | | "Appraisal review" means the act or process of developing |
15 | | and communicating an opinion about the quality of another |
16 | | appraiser's work that was performed as part of an appraisal, |
17 | | appraisal review, or appraisal assignment.
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18 | | "Appraisal Subcommittee" means the Appraisal Subcommittee |
19 | | of the Federal
Financial Institutions
Examination Council as |
20 | | established by Title XI.
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21 | | "Appraiser" means a person who performs
real estate or real |
22 | | property
appraisals in accordance with the Uniform Standards of |
23 | | Professional Appraisal Practice .
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24 | | "AQB" means the Appraisal Qualifications Board of the |
25 | | Appraisal Foundation.
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26 | | "Associate real estate trainee appraiser" means an |
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1 | | entry-level appraiser who holds
a license of this |
2 | | classification under this Act with restrictions as to the scope |
3 | | of practice
in
accordance with this Act.
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4 | | "Board" means the Real Estate Appraisal Administration and |
5 | | Disciplinary Board.
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6 | | "Classroom hour" means 50 minutes of instruction out of |
7 | | each 60 minute
segment of coursework.
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8 | | "Client" means the party or parties who engage an appraiser |
9 | | by employment or contract in a specific appraisal assignment.
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10 | | "Coordinator" means the Coordinator of Real Estate |
11 | | Appraisal of the Division of Professional Regulation of the |
12 | | Department of Financial and Professional Regulation.
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13 | | "Department" means the Department of Financial and |
14 | | Professional Regulation.
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15 | | "Federal financial institutions regulatory agencies" means |
16 | | the Board of
Governors of the Federal Reserve
System, the |
17 | | Federal Deposit Insurance Corporation, the Office of the
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18 | | Comptroller of the Currency, the Consumer Financial Protection |
19 | | Bureau
Office of Thrift Supervision , and the National Credit |
20 | | Union Administration.
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21 | | "Federally related transaction" means any real |
22 | | estate-related financial
transaction in which a federal
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23 | | financial institutions regulatory agency , the Department of |
24 | | Housing
and Urban Development, Fannie Mae, Freddie Mae, or the |
25 | | National
Credit Union Administration
engages in, contracts |
26 | | for, or
regulates , or and requires the services
of an |
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1 | | appraiser.
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2 | | "Financial institution" means any bank, savings bank, |
3 | | savings and loan
association, credit union,
mortgage broker, |
4 | | mortgage banker, licensee under the Consumer Installment Loan
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5 | | Act or the Sales
Finance Agency Act, or a corporate fiduciary, |
6 | | subsidiary, affiliate, parent
company, or holding company
of |
7 | | any such licensee, or any institution involved in real estate |
8 | | financing that
is regulated by state or
federal law.
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9 | | "Modular Course" means the Appraisal Qualifying Course |
10 | | Design conforming to the Sub Topics Course Outline contained in |
11 | | the AQB Criteria 2008.
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12 | | "Person" means an individual, entity, sole proprietorship, |
13 | | corporation, limited liability company, partnership, and joint |
14 | | venture, foreign or domestic, except that when the context |
15 | | otherwise requires, the term may refer to more than one |
16 | | individual or other described entity. |
17 | | "Real estate" means an identified parcel or tract of land, |
18 | | including any
improvements.
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19 | | "Real estate related financial transaction" means any |
20 | | transaction involving:
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21 | | (1) the sale, lease, purchase, investment in, or |
22 | | exchange of real
property,
including interests
in property |
23 | | or the financing thereof;
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24 | | (2) the refinancing of real property or interests in |
25 | | real property; and
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26 | | (3) the use of real property or interest in property as |
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1 | | security for a
loan or
investment,
including mortgage |
2 | | backed securities.
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3 | | "Real property" means the interests, benefits, and rights |
4 | | inherent in the
ownership of real estate.
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5 | | "Secretary" means the Secretary of Financial and |
6 | | Professional Regulation.
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7 | | "State certified general real estate
appraiser" means an |
8 | | appraiser who holds a
license of this classification under this |
9 | | Act
and such classification applies to
the appraisal of all |
10 | | types of real property without restrictions as to
the scope of |
11 | | practice.
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12 | | "State certified residential real estate
appraiser" means |
13 | | an appraiser who
holds a
license of this classification
under |
14 | | this Act
and such classification applies to
the appraisal of
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15 | | one to 4 units of
residential real property without regard to |
16 | | transaction value or complexity,
but with restrictions as to |
17 | | the
scope of practice
in a federally related transaction in |
18 | | accordance with Title
XI, the provisions of USPAP,
criteria |
19 | | established by the AQB, and further defined by rule.
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20 | | "Supervising appraiser" means either (i) an appraiser who |
21 | | holds a valid license under this Act as either a State |
22 | | certified general real estate appraiser or a State certified |
23 | | residential real estate appraiser, who co-signs an appraisal |
24 | | report for an associate real estate trainee appraiser or (ii) a |
25 | | State certified general real estate appraiser who holds a valid |
26 | | license under this Act who co-signs an appraisal report for a |
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1 | | State certified residential real estate appraiser on |
2 | | properties other than one to 4 units of residential real |
3 | | property without regard to transaction value or complexity.
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4 | | "Title XI" means Title XI of the federal Financial |
5 | | Institutions Reform,
Recovery and
Enforcement Act of 1989.
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6 | | "USPAP" means the Uniform Standards of Professional |
7 | | Appraisal Practice as
promulgated by the
Appraisal Standards |
8 | | Board pursuant to Title XI and by rule.
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9 | | "Valuation services" means services pertaining to aspects |
10 | | of property value. |
11 | | (Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
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