Illinois General Assembly - Full Text of SB3399
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Full Text of SB3399  100th General Assembly

SB3399eng 100TH GENERAL ASSEMBLY

  
  
  

 


 
SB3399 EngrossedLRB100 16040 SMS 31159 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Auction License Act is amended by changing
5Section 10-30 as follows:
 
6    (225 ILCS 407/10-30)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 10-30. Expiration, renewal, and continuing education.
9    (a) License expiration dates, renewal periods, renewal
10fees, and procedures for renewal of licenses issued under this
11Act shall be set by rule of the Department. An entity may renew
12its license by paying the required fee and by meeting the
13renewal requirements adopted by the Department under this
14Section.
15    (b) All renewal applicants must provide proof as determined
16by the Department of having met the continuing education
17requirements by the deadline set forth by the Department by
18rule. At a minimum, the rules shall require an applicant for
19renewal licensure as an auctioneer to provide proof of the
20completion of at least 12 hours of continuing education during
21the pre-renewal period established by the Department for
22completion of continuing education preceding the expiration
23date of the license from schools approved by the Department, as

 

 

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1established by rule.
2    (c) The Department, in its discretion, may waive
3enforcement of the continuing education requirements of this
4Section and shall adopt rules defining the standards and
5criteria for such waiver.
6    (d) (Blank).
7(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
 
8    Section 10. The Home Inspector License Act is amended by
9changing Section 5-30 as follows:
 
10    (225 ILCS 441/5-30)
11    (Section scheduled to be repealed on January 1, 2022)
12    Sec. 5-30. Continuing education renewal requirements. The
13continuing education requirements for a person to renew a
14license as a home inspector shall be established by rule. The
15Department shall establish a continuing education completion
16deadline for home inspector licensees and require evidence of
17compliance with continuing education requirements in a manner
18established by rule before the renewal of a license.
19(Source: P.A. 92-239, eff. 8-3-01.)
 
20    Section 15. The Real Estate License Act of 2000 is amended
21by changing Sections 1-10, 5-15, 5-20, 5-45, 10-15, 10-20,
2220-20, and 30-5 as follows:
 

 

 

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1    (225 ILCS 454/1-10)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 1-10. Definitions. In this Act, unless the context
4otherwise requires:
5    "Act" means the Real Estate License Act of 2000.
6    "Address of record" means the designated address recorded
7by the Department in the applicant's or licensee's application
8file or license file as maintained by the Department's
9licensure maintenance unit. It is the duty of the applicant or
10licensee to inform the Department of any change of address, and
11those changes must be made either through the Department's
12website or by contacting the Department.
13    "Agency" means a relationship in which a broker or
14licensee, whether directly or through an affiliated licensee,
15represents a consumer by the consumer's consent, whether
16express or implied, in a real property transaction.
17    "Applicant" means any person, as defined in this Section,
18who applies to the Department for a valid license as a managing
19broker, broker, or leasing agent.
20    "Blind advertisement" means any real estate advertisement
21that does not include the sponsoring broker's business name and
22that is used by any licensee regarding the sale or lease of
23real estate, including his or her own, licensed activities, or
24the hiring of any licensee under this Act. The broker's
25business name in the case of a franchise shall include the
26franchise affiliation as well as the name of the individual

 

 

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1firm.
2    "Board" means the Real Estate Administration and
3Disciplinary Board of the Department as created by Section
425-10 of this Act.
5    "Branch office" means a sponsoring broker's office other
6than the sponsoring broker's principal office.
7    "Broker" means an individual, entity, corporation, foreign
8or domestic partnership, limited liability company,
9corporation, or registered limited liability partnership, or
10other business entity other than a leasing agent who, whether
11in person or through any media or technology, for another and
12for compensation, or with the intention or expectation of
13receiving compensation, either directly or indirectly:
14        (1) Sells, exchanges, purchases, rents, or leases real
15    estate.
16        (2) Offers to sell, exchange, purchase, rent, or lease
17    real estate.
18        (3) Negotiates, offers, attempts, or agrees to
19    negotiate the sale, exchange, purchase, rental, or leasing
20    of real estate.
21        (4) Lists, offers, attempts, or agrees to list real
22    estate for sale, rent, lease, or exchange.
23        (5) Buys, sells, offers to buy or sell, or otherwise
24    deals in options on real estate or improvements thereon.
25        (6) Supervises the collection, offer, attempt, or
26    agreement to collect rent for the use of real estate.

 

 

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

 

 

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1probable selling price of a particular interest in real estate,
2which may provide a varying level of detail about the
3property's condition, market, and neighborhood and information
4on comparable sales. The activities of a real estate broker or
5managing broker engaging in the ordinary course of business as
6a broker, as defined in this Section, shall not be considered a
7broker price opinion if no compensation is paid to the broker
8or managing broker, other than compensation based upon the sale
9or rental of real estate.
10    "Client" means a person who is being represented by a
11licensee.
12    "Comparative market analysis" is an analysis or opinion
13regarding pricing, marketing, or financial aspects relating to
14a specified interest or interests in real estate that may be
15based upon an analysis of comparative market data, the
16expertise of the real estate broker or managing broker, and
17such other factors as the broker or managing broker may deem
18appropriate in developing or preparing such analysis or
19opinion. The activities of a real estate broker or managing
20broker engaging in the ordinary course of business as a broker,
21as defined in this Section, shall not be considered a
22comparative market analysis if no compensation is paid to the
23broker or managing broker, other than compensation based upon
24the sale or rental of real estate.
25    "Compensation" means the valuable consideration given by
26one person or entity to another person or entity in exchange

 

 

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

 

 

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

 

 

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1    "Dual agency" means an agency relationship in which a
2licensee is representing both buyer and seller or both landlord
3and tenant in the same transaction. When the agency
4relationship is a designated agency, the question of whether
5there is a dual agency shall be determined by the agency
6relationships of the designated agent of the parties and not of
7the sponsoring broker.
8    "Education provider" means a school licensed by the
9Department offering courses in pre-license, post-license, or
10continuing education required by this Act.
11    "Employee" or other derivative of the word "employee", when
12used to refer to, describe, or delineate the relationship
13between a sponsoring broker and a managing broker, broker, or a
14leasing agent, shall be construed to include an independent
15contractor relationship, provided that a written agreement
16exists that clearly establishes and states the relationship.
17All responsibilities of a broker shall remain.
18    "Escrow moneys" means all moneys, promissory notes or any
19other type or manner of legal tender or financial consideration
20deposited with any person for the benefit of the parties to the
21transaction. A transaction exists once an agreement has been
22reached and an accepted real estate contract signed or lease
23agreed to by the parties. Escrow moneys includes without
24limitation earnest moneys and security deposits, except those
25security deposits in which the person holding the security
26deposit is also the sole owner of the property being leased and

 

 

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1for which the security deposit is being held.
2    "Electronic means of proctoring" means a methodology
3providing assurance that the person taking a test and
4completing the answers to questions is the person seeking
5licensure or credit for continuing education and is doing so
6without the aid of a third party or other device.
7    "Exclusive brokerage agreement" means a written brokerage
8agreement that provides that the sponsoring broker has the sole
9right, through one or more sponsored licensees, to act as the
10exclusive designated agent or representative of the client and
11that meets the requirements of Section 15-75 of this Act.
12    "Inoperative" means a status of licensure where the
13licensee holds a current license under this Act, but the
14licensee is prohibited from engaging in licensed activities
15because the licensee is unsponsored or the license of the
16sponsoring broker with whom the licensee is associated or by
17whom he or she is employed is currently expired, revoked,
18suspended, or otherwise rendered invalid under this Act.
19    "Interactive delivery method" means delivery of a course by
20an instructor through a medium allowing for 2-way communication
21between the instructor and a student in which either can
22initiate or respond to questions.
23    "Leads" means the name or names of a potential buyer,
24seller, lessor, lessee, or client of a licensee.
25    "Leasing Agent" means a person who is employed by a broker
26to engage in licensed activities limited to leasing residential

 

 

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1real estate who has obtained a license as provided for in
2Section 5-5 of this Act.
3    "License" means the document issued by the Department
4certifying that the person named thereon has fulfilled all
5requirements prerequisite to licensure under this Act.
6    "Licensed activities" means those activities listed in the
7definition of "broker" under this Section.
8    "Licensee" means any person, as defined in this Section,
9who holds a valid unexpired license as a managing broker,
10broker, or leasing agent.
11    "Listing presentation" means a communication between a
12managing broker or broker and a consumer in which the licensee
13is attempting to secure a brokerage agreement with the consumer
14to market the consumer's real estate for sale or lease.
15    "Managing broker" means a broker who has supervisory
16responsibilities for licensees in one or, in the case of a
17multi-office company, more than one office and who has been
18appointed as such by the sponsoring broker.
19    "Medium of advertising" means any method of communication
20intended to influence the general public to use or purchase a
21particular good or service or real estate.
22    "Ministerial acts" means those acts that a licensee may
23perform for a consumer that are informative or clerical in
24nature and do not rise to the level of active representation on
25behalf of a consumer. Examples of these acts include without
26limitation (i) responding to phone inquiries by consumers as to

 

 

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1the availability and pricing of brokerage services, (ii)
2responding to phone inquiries from a consumer concerning the
3price or location of property, (iii) attending an open house
4and responding to questions about the property from a consumer,
5(iv) setting an appointment to view property, (v) responding to
6questions of consumers walking into a licensee's office
7concerning brokerage services offered or particular
8properties, (vi) accompanying an appraiser, inspector,
9contractor, or similar third party on a visit to a property,
10(vii) describing a property or the property's condition in
11response to a consumer's inquiry, (viii) completing business or
12factual information for a consumer on an offer or contract to
13purchase on behalf of a client, (ix) showing a client through a
14property being sold by an owner on his or her own behalf, or
15(x) referral to another broker or service provider.
16    "Office" means a broker's place of business where the
17general public is invited to transact business and where
18records may be maintained and licenses displayed, whether or
19not it is the broker's principal place of business.
20    "Person" means and includes individuals, entities,
21corporations, limited liability companies, registered limited
22liability partnerships, foreign and domestic and partnerships,
23and other business entities foreign or domestic, except that
24when the context otherwise requires, the term may refer to a
25single individual or other described entity.
26    "Personal assistant" means a licensed or unlicensed person

 

 

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1who has been hired for the purpose of aiding or assisting a
2sponsored licensee in the performance of the sponsored
3licensee's job.
4    "Pocket card" means the card issued by the Department to
5signify that the person named on the card is currently licensed
6under this Act.
7    "Pre-renewal period" means the period between the date of
8issue of a currently valid license and the license's expiration
9date.
10    "Proctor" means any person, including, but not limited to,
11an instructor, who has a written agreement to administer
12examinations fairly and impartially with a licensed education
13provider.
14    "Real estate" means and includes leaseholds as well as any
15other interest or estate in land, whether corporeal,
16incorporeal, freehold, or non-freehold and whether the real
17estate is situated in this State or elsewhere. "Real estate"
18does not include property sold, exchanged, or leased as a
19timeshare or similar vacation item or interest, vacation club
20membership, or other activity formerly regulated under the Real
21Estate Timeshare Act of 1999 (repealed).
22    "Regular employee" means a person working an average of 20
23hours per week for a person or entity who would be considered
24as an employee under the Internal Revenue Service eleven main
25tests in three categories being behavioral control, financial
26control and the type of relationship of the parties, formerly

 

 

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1the twenty factor test.
2    "Secretary" means the Secretary of the Department of
3Financial and Professional Regulation, or a person authorized
4by the Secretary to act in the Secretary's stead.
5    "Sponsoring broker" means the broker who has issued a
6sponsor card to a licensed managing broker, broker, or a
7leasing agent.
8    "Sponsor card" means the temporary permit issued by the
9sponsoring broker certifying that the managing broker, broker,
10or leasing agent named thereon is employed by or associated by
11written agreement with the sponsoring broker, as provided for
12in Section 5-40 of this Act.
13(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18;
14100-534, eff. 9-22-17; revised 10-2-17.)
 
15    (225 ILCS 454/5-15)
16    (Section scheduled to be repealed on January 1, 2020)
17    Sec. 5-15. Necessity of managing broker, broker, or leasing
18agent license or sponsor card; ownership restrictions.
19    (a) It is unlawful for any person, corporation, limited
20liability company, registered limited liability partnership,
21or partnership to act as a managing broker, broker, or leasing
22agent or to advertise or assume to act as such managing broker,
23broker or leasing agent without a properly issued sponsor card
24or a license issued under this Act by the Department, either
25directly or through its authorized designee.

 

 

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1    (b) No corporation shall be granted a license or engage in
2the business or capacity, either directly or indirectly, of a
3broker, unless every officer of the corporation who actively
4participates in the real estate activities of the corporation
5holds a license as a managing broker or broker and unless every
6employee who acts as a managing broker, broker, or leasing
7agent for the corporation holds a license as a managing broker,
8broker, or leasing agent. All nonparticipating owners or
9officers shall submit affidavits of nonparticipation as
10required by the Department.
11    (c) No partnership shall be granted a license or engage in
12the business or serve in the capacity, either directly or
13indirectly, of a broker, unless every general partner in the
14partnership who actively participates in the real estate
15activities of the partnership holds a license as a managing
16broker or broker and unless every employee who acts as a
17managing broker, broker, or leasing agent for the partnership
18holds a license as a managing broker, broker, or leasing agent.
19All nonparticipating partners shall submit affidavits of
20nonparticipation as required by the Department. In the case of
21a registered limited liability partnership (LLP), every
22partner in the LLP that actively participates in the real
23estate activities of the limited liability partnership must
24hold a license as a managing broker or broker and every
25employee who acts as a managing broker, broker, or leasing
26agent must hold a license as a managing broker, broker, or

 

 

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1leasing agent. All nonparticipating limited liability partners
2shall submit affidavits of nonparticipation as required by the
3Department.
4    (d) No limited liability company shall be granted a license
5or engage in the business or serve in the capacity, either
6directly or indirectly, of a broker unless every member or
7manager in the limited liability company that actively
8participates in the real estate activities of the limited
9liability company or every member in a member managed limited
10liability company holds a license as a managing broker or
11broker and unless every other member and employee who acts as a
12managing broker, broker, or leasing agent for the limited
13liability company holds a license as a managing broker, broker,
14or leasing agent. All nonparticipating members or managers
15shall submit affidavits of nonparticipation as required by the
16Department.
17    (e) (Blank). No partnership, limited liability company, or
18corporation shall be licensed to conduct a brokerage business
19where an individual leasing agent, or group of leasing agents,
20owns or directly or indirectly controls more than 49% of the
21shares of stock or other ownership in the partnership, limited
22liability company, or corporation.
23    (f) No person shall be granted a license if any
24participating owner, officer, director, partner, limited
25liability partner, member, or manager has been denied a real
26estate license by the Department in the previous 5 years or is

 

 

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1otherwise currently barred from real estate practice because of
2a suspension or revocation.
3(Source: P.A. 99-227, eff. 8-3-15.)
 
4    (225 ILCS 454/5-20)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 5-20. Exemptions from managing broker, broker, or
7leasing agent license requirement. The requirement for holding
8a license under this Article 5 shall not apply to:
9        (1) Any person, partnership, or corporation that as
10    owner or lessor performs any of the acts described in the
11    definition of "broker" under Section 1-10 of this Act with
12    reference to property owned or leased by it, or to the
13    regular employees thereof with respect to the property so
14    owned or leased, where such acts are performed in the
15    regular course of or as an incident to the management,
16    sale, or other disposition of such property and the
17    investment therein, provided that such regular employees
18    do not perform any of the acts described in the definition
19    of "broker" under Section 1-10 of this Act in connection
20    with a vocation of selling or leasing any real estate or
21    the improvements thereon not so owned or leased.
22        (2) An attorney in fact acting under a duly executed
23    and recorded power of attorney to convey real estate from
24    the owner or lessor or the services rendered by an attorney
25    at law in the performance of the attorney's duty as an

 

 

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1    attorney at law.
2        (3) Any person acting as receiver, trustee in
3    bankruptcy, administrator, executor, or guardian or while
4    acting under a court order or under the authority of a will
5    or testamentary trust.
6        (4) Any person acting as a resident manager for the
7    owner or any employee acting as the resident manager for a
8    broker managing an apartment building, duplex, or
9    apartment complex, when the resident manager resides on the
10    premises, the premises is his or her primary residence, and
11    the resident manager is engaged in the leasing of the
12    property of which he or she is the resident manager.
13        (5) Any officer or employee of a federal agency in the
14    conduct of official duties.
15        (6) Any officer or employee of the State government or
16    any political subdivision thereof performing official
17    duties.
18        (7) Any multiple listing service or other similar
19    information exchange that is engaged in the collection and
20    dissemination of information concerning real estate
21    available for sale, purchase, lease, or exchange for the
22    purpose of providing licensees with a system by which
23    licensees may cooperatively share information along with
24    which no other licensed activities, as defined in Section
25    1-10 of this Act, are provided.
26        (8) Railroads and other public utilities regulated by

 

 

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1    the State of Illinois, or the officers or full time
2    employees thereof, unless the performance of any licensed
3    activities is in connection with the sale, purchase, lease,
4    or other disposition of real estate or investment therein
5    not needing the approval of the appropriate State
6    regulatory authority.
7        (9) Any medium of advertising in the routine course of
8    selling or publishing advertising along with which no other
9    licensed activities, as defined in Section 1-10 of this
10    Act, are provided.
11        (10) Any resident lessee of a residential dwelling unit
12    who refers for compensation to the owner of the dwelling
13    unit, or to the owner's agent, prospective lessees of
14    dwelling units in the same building or complex as the
15    resident lessee's unit, but only if the resident lessee (i)
16    refers no more than 3 prospective lessees in any 12-month
17    period, (ii) receives compensation of no more than $1,500
18    or the equivalent of one month's rent, whichever is less,
19    in any 12-month period, and (iii) limits his or her
20    activities to referring prospective lessees to the owner,
21    or the owner's agent, and does not show a residential
22    dwelling unit to a prospective lessee, discuss terms or
23    conditions of leasing a dwelling unit with a prospective
24    lessee, or otherwise participate in the negotiation of the
25    leasing of a dwelling unit.
26        (11) The purchase, sale, or transfer of a timeshare or

 

 

SB3399 Engrossed- 20 -LRB100 16040 SMS 31159 b

1    similar vacation item or interest, vacation club
2    membership, or other activity formerly regulated under the
3    Real Estate Timeshare Act of 1999 (repealed).
4        (12) (Blank).
5        (13) Any person who is licensed without examination
6    under Section 10-25 (now repealed) of the Auction License
7    Act is exempt from holding a managing broker's or broker's
8    license under this Act for the limited purpose of selling
9    or leasing real estate at auction, so long as:
10            (A) that person has made application for said
11        exemption by July 1, 2000;
12            (B) that person verifies to the Department that he
13        or she has sold real estate at auction for a period of
14        5 years prior to licensure as an auctioneer;
15            (C) the person has had no lapse in his or her
16        license as an auctioneer; and
17            (D) the license issued under the Auction License
18        Act has not been disciplined for violation of those
19        provisions of Article 20 of the Auction License Act
20        dealing with or related to the sale or lease of real
21        estate at auction.
22        (14) A person who holds a valid license under the
23    Auction License Act and a valid real estate auction
24    certification and conducts auctions for the sale of real
25    estate under Section 5-32 of this Act.
26        (15) A hotel operator who is registered with the

 

 

SB3399 Engrossed- 21 -LRB100 16040 SMS 31159 b

1    Illinois Department of Revenue and pays taxes under the
2    Hotel Operators' Occupation Tax Act and rents a room or
3    rooms in a hotel as defined in the Hotel Operators'
4    Occupation Tax Act for a period of not more than 30
5    consecutive days and not more than 60 days in a calendar
6    year.
7(Source: P.A. 99-227, eff. 8-3-15; 100-534, eff. 9-22-17.)
 
8    (225 ILCS 454/5-45)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 5-45. Offices.
11    (a) If a sponsoring broker maintains more than one office
12within the State, the sponsoring broker shall notify the
13Department on forms prescribed by the Department apply for a
14branch office license for each office other than the sponsoring
15broker's principal place of business. The brokerage branch
16office license shall be displayed conspicuously in each branch
17office. The name of each branch office shall be the same as
18that of the sponsoring broker's principal office or shall
19clearly delineate the branch office's relationship with the
20principal office.
21    (b) The sponsoring broker shall name a managing broker for
22each branch office and the sponsoring broker shall be
23responsible for supervising all managing brokers. The
24sponsoring broker shall notify the Department in writing of the
25name of all managing brokers of the sponsoring broker and the

 

 

SB3399 Engrossed- 22 -LRB100 16040 SMS 31159 b

1office or offices they manage. Any person initially named as a
2managing broker after April 30, 2011 must either (i) be
3licensed as a managing broker or (ii) meet all the requirements
4to be licensed as a managing broker except the required
5education and examination and secure the managing broker's
6license within 90 days of being named as a managing broker. Any
7changes in managing brokers shall be reported to the Department
8in writing within 15 days of the change. Failure to do so shall
9subject the sponsoring broker to discipline under Section 20-20
10of this Act.
11    (c) The sponsoring broker shall immediately notify the
12Department in writing of any opening, closing, or change in
13location of any principal or branch office.
14    (d) Except as provided in this Section, each sponsoring
15broker shall maintain a definite office, or place of business
16within this State for the transaction of real estate business,
17shall conspicuously display an identification sign on the
18outside of his or her office of adequate size and visibility.
19The office or place of business shall not be located in any
20retail or financial business establishment unless it is
21separated from the other business by a separate and distinct
22area within the establishment. A broker who is licensed in this
23State by examination or pursuant to the provisions of Section
245-60 of this Act shall not be required to maintain a definite
25office or place of business in this State provided all of the
26following conditions are met:

 

 

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1        (1) the broker maintains an active broker's license in
2    the broker's state of domicile;
3        (2) the broker maintains an office in the broker's
4    state of domicile; and
5        (3) the broker has filed with the Department written
6    statements appointing the Secretary to act as the broker's
7    agent upon whom all judicial and other process or legal
8    notices directed to the licensee may be served and agreeing
9    to abide by all of the provisions of this Act with respect
10    to his or her real estate activities within the State of
11    Illinois and submitting to the jurisdiction of the
12    Department.
13    The statements under subdivision (3) of this Section shall
14be in form and substance the same as those statements required
15under Section 5-60 of this Act and shall operate to the same
16extent.
17    (e) Upon the loss of a managing broker who is not replaced
18by the sponsoring broker or in the event of the death or
19adjudicated disability of the sole proprietor of an office, a
20written request for authorization allowing the continued
21operation of the office may be submitted to the Department
22within 15 days of the loss. The Department may issue a written
23authorization allowing the continued operation, provided that
24a licensed broker, or in the case of the death or adjudicated
25disability of a sole proprietor, the representative of the
26estate, assumes responsibility, in writing, for the operation

 

 

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1of the office and agrees to personally supervise the operation
2of the office. No such written authorization shall be valid for
3more than 60 days unless extended by the Department for good
4cause shown and upon written request by the broker or
5representative.
6(Source: P.A. 96-856, eff. 12-31-09.)
 
7    (225 ILCS 454/10-15)
8    (Section scheduled to be repealed on January 1, 2020)
9    Sec. 10-15. No compensation to persons in violation of Act;
10compensation to unlicensed persons; consumer.
11    (a) No compensation may be paid to any unlicensed person in
12exchange for the person performing licensed activities in
13violation of this Act.
14    (b) No action or suit shall be instituted, nor recovery
15therein be had, in any court of this State by any person,
16partnership, registered limited liability partnership, limited
17liability company, or corporation for compensation for any act
18done or service performed, the doing or performing of which is
19prohibited by this Act to other than licensed managing brokers,
20brokers, or leasing agents unless the person, partnership,
21registered limited liability partnership, limited liability
22company, or corporation was duly licensed hereunder as a
23managing broker, broker, or leasing agent under this Act at the
24time that any such act was done or service performed that would
25give rise to a cause of action for compensation.

 

 

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1    (c) A licensee may offer compensation, including prizes,
2merchandise, services, rebates, discounts, or other
3consideration to an unlicensed person who is a party to a
4contract to buy or sell real estate or is a party to a contract
5for the lease of real estate, so long as the offer complies
6with the provisions of subdivision (35) of subsection (a) of
7Section 20-20 of this Act.
8    (d) A licensee may offer cash, gifts, prizes, awards,
9coupons, merchandise, rebates or chances to win a game of
10chance, if not prohibited by any other law or statute, to a
11consumer as an inducement to that consumer to use the services
12of the licensee even if the licensee and consumer do not
13ultimately enter into a broker-client relationship so long as
14the offer complies with the provisions of subdivision (35) of
15subsection (a) of Section 20-20 of this Act.
16(Source: P.A. 99-227, eff. 8-3-15.)
 
17    (225 ILCS 454/10-20)
18    (Section scheduled to be repealed on January 1, 2020)
19    Sec. 10-20. Sponsoring broker; employment agreement.
20    (a) A licensee may perform activities as a licensee only
21for his or her sponsoring broker. A licensee must have only one
22sponsoring broker at any one time.
23    (b) Every broker who employs licensees or has an
24independent contractor relationship with a licensee shall have
25a written employment agreement with each such licensee. The

 

 

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1broker having this written employment agreement with the
2licensee must be that licensee's sponsoring broker.
3    (c) Every sponsoring broker must have a written employment
4agreement with each licensee the broker sponsors. The agreement
5shall address the employment or independent contractor
6relationship terms, including without limitation supervision,
7duties, compensation, and termination.
8    (d) Every sponsoring broker must have a written employment
9agreement with each licensed personal assistant who assists a
10licensee sponsored by the sponsoring broker. This requirement
11applies to all licensed personal assistants whether or not they
12perform licensed activities in their capacity as a personal
13assistant. The agreement shall address the employment or
14independent contractor relationship terms, including without
15limitation supervision, duties, compensation, and termination.
16    (e) Notwithstanding the fact that a sponsoring broker has
17an employment agreement with a licensee, a sponsoring broker
18may pay compensation directly to a business entity corporation
19solely owned by that licensee that has been formed for the
20purpose of receiving compensation earned by the licensee. A
21business entity corporation formed for the purpose herein
22stated in this subsection (e) shall not be required to be
23licensed under this Act so long as the person that who is the
24sole owner shareholder of the business entity corporation is
25licensed.
26(Source: P.A. 91-245, eff. 12-31-99.)
 

 

 

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1    (225 ILCS 454/20-20)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 20-20. Grounds for discipline.
4    (a) The Department may refuse to issue or renew a license,
5may place on probation, suspend, or revoke any license,
6reprimand, or take any other disciplinary or non-disciplinary
7action as the Department may deem proper and impose a fine not
8to exceed $25,000 upon any licensee or applicant under this Act
9or any person who holds himself or herself out as an applicant
10or licensee or against a licensee in handling his or her own
11property, whether held by deed, option, or otherwise, for any
12one or any combination of the following causes:
13        (1) Fraud or misrepresentation in applying for, or
14    procuring, a license under this Act or in connection with
15    applying for renewal of a license under this Act.
16        (2) The conviction of or plea of guilty or plea of nolo
17    contendere to a felony or misdemeanor in this State or any
18    other jurisdiction; or the entry of an administrative
19    sanction by a government agency in this State or any other
20    jurisdiction. Action taken under this paragraph (2) for a
21    misdemeanor or an administrative sanction is limited to a
22    misdemeanor or administrative sanction that has as an
23    essential element dishonesty or fraud or involves larceny,
24    embezzlement, or obtaining money, property, or credit by
25    false pretenses or by means of a confidence game.

 

 

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1        (3) Inability to practice the profession with
2    reasonable judgment, skill, or safety as a result of a
3    physical illness, including, but not limited to,
4    deterioration through the aging process or loss of motor
5    skill, or a mental illness or disability.
6        (4) Practice under this Act as a licensee in a retail
7    sales establishment from an office, desk, or space that is
8    not separated from the main retail business by a separate
9    and distinct area within the establishment.
10        (5) Having been disciplined by another state, the
11    District of Columbia, a territory, a foreign nation, or a
12    governmental agency authorized to impose discipline if at
13    least one of the grounds for that discipline is the same as
14    or the equivalent of one of the grounds for which a
15    licensee may be disciplined under this Act. A certified
16    copy of the record of the action by the other state or
17    jurisdiction shall be prima facie evidence thereof.
18        (6) Engaging in the practice of real estate brokerage
19    without a license or after the licensee's license or
20    temporary permit was expired or while the license was
21    inoperative.
22        (7) Cheating on or attempting to subvert the Real
23    Estate License Exam or continuing education exam.
24        (8) Aiding or abetting an applicant to subvert or cheat
25    on the Real Estate License Exam or continuing education
26    exam administered pursuant to this Act.

 

 

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1        (9) Advertising that is inaccurate, misleading, or
2    contrary to the provisions of the Act.
3        (10) Making any substantial misrepresentation or
4    untruthful advertising.
5        (11) Making any false promises of a character likely to
6    influence, persuade, or induce.
7        (12) Pursuing a continued and flagrant course of
8    misrepresentation or the making of false promises through
9    licensees, employees, agents, advertising, or otherwise.
10        (13) Any misleading or untruthful advertising, or
11    using any trade name or insignia of membership in any real
12    estate organization of which the licensee is not a member.
13        (14) Acting for more than one party in a transaction
14    without providing written notice to all parties for whom
15    the licensee acts.
16        (15) Representing or attempting to represent a broker
17    other than the sponsoring broker.
18        (16) Failure to account for or to remit any moneys or
19    documents coming into his or her possession that belong to
20    others.
21        (17) Failure to maintain and deposit in a special
22    account, separate and apart from personal and other
23    business accounts, all escrow moneys belonging to others
24    entrusted to a licensee while acting as a broker, escrow
25    agent, or temporary custodian of the funds of others or
26    failure to maintain all escrow moneys on deposit in the

 

 

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1    account until the transactions are consummated or
2    terminated, except to the extent that the moneys, or any
3    part thereof, shall be:
4            (A) disbursed prior to the consummation or
5        termination (i) in accordance with the written
6        direction of the principals to the transaction or their
7        duly authorized agents, (ii) in accordance with
8        directions providing for the release, payment, or
9        distribution of escrow moneys contained in any written
10        contract signed by the principals to the transaction or
11        their duly authorized agents, or (iii) pursuant to an
12        order of a court of competent jurisdiction; or
13            (B) deemed abandoned and transferred to the Office
14        of the State Treasurer to be handled as unclaimed
15        property pursuant to the Revised Uniform Unclaimed
16        Property Act. Escrow moneys may be deemed abandoned
17        under this subparagraph (B) only: (i) in the absence of
18        disbursement under subparagraph (A); (ii) in the
19        absence of notice of the filing of any claim in a court
20        of competent jurisdiction; and (iii) if 6 months have
21        elapsed after the receipt of a written demand for the
22        escrow moneys from one of the principals to the
23        transaction or the principal's duly authorized agent.
24    The account shall be noninterest bearing, unless the
25    character of the deposit is such that payment of interest
26    thereon is otherwise required by law or unless the

 

 

SB3399 Engrossed- 31 -LRB100 16040 SMS 31159 b

1    principals to the transaction specifically require, in
2    writing, that the deposit be placed in an interest bearing
3    account.
4        (18) Failure to make available to the Department all
5    escrow records and related documents maintained in
6    connection with the practice of real estate within 24 hours
7    of a request for those documents by Department personnel.
8        (19) Failing to furnish copies upon request of
9    documents relating to a real estate transaction to a party
10    who has executed that document.
11        (20) Failure of a sponsoring broker to timely provide
12    information, sponsor cards, or termination of licenses to
13    the Department.
14        (21) Engaging in dishonorable, unethical, or
15    unprofessional conduct of a character likely to deceive,
16    defraud, or harm the public.
17        (22) Commingling the money or property of others with
18    his or her own money or property.
19        (23) Employing any person on a purely temporary or
20    single deal basis as a means of evading the law regarding
21    payment of commission to nonlicensees on some contemplated
22    transactions.
23        (24) Permitting the use of his or her license as a
24    broker to enable a leasing agent or unlicensed person to
25    operate a real estate business without actual
26    participation therein and control thereof by the broker.

 

 

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1        (25) Any other conduct, whether of the same or a
2    different character from that specified in this Section,
3    that constitutes dishonest dealing.
4        (26) Displaying a "for rent" or "for sale" sign on any
5    property without the written consent of an owner or his or
6    her duly authorized agent or advertising by any means that
7    any property is for sale or for rent without the written
8    consent of the owner or his or her authorized agent.
9        (27) Failing to provide information requested by the
10    Department, or otherwise respond to that request, within 30
11    days of the request.
12        (28) Advertising by means of a blind advertisement,
13    except as otherwise permitted in Section 10-30 of this Act.
14        (29) Offering guaranteed sales plans, as defined in
15    clause (A) of this subdivision (29), except to the extent
16    hereinafter set forth:
17            (A) A "guaranteed sales plan" is any real estate
18        purchase or sales plan whereby a licensee enters into a
19        conditional or unconditional written contract with a
20        seller, prior to entering into a brokerage agreement
21        with the seller, by the terms of which a licensee
22        agrees to purchase a property of the seller within a
23        specified period of time at a specific price in the
24        event the property is not sold in accordance with the
25        terms of a brokerage agreement to be entered into
26        between the sponsoring broker and the seller.

 

 

SB3399 Engrossed- 33 -LRB100 16040 SMS 31159 b

1            (B) A licensee offering a guaranteed sales plan
2        shall provide the details and conditions of the plan in
3        writing to the party to whom the plan is offered.
4            (C) A licensee offering a guaranteed sales plan
5        shall provide to the party to whom the plan is offered
6        evidence of sufficient financial resources to satisfy
7        the commitment to purchase undertaken by the broker in
8        the plan.
9            (D) Any licensee offering a guaranteed sales plan
10        shall undertake to market the property of the seller
11        subject to the plan in the same manner in which the
12        broker would market any other property, unless the
13        agreement with the seller provides otherwise.
14            (E) The licensee cannot purchase seller's property
15        until the brokerage agreement has ended according to
16        its terms or is otherwise terminated.
17            (F) Any licensee who fails to perform on a
18        guaranteed sales plan in strict accordance with its
19        terms shall be subject to all the penalties provided in
20        this Act for violations thereof and, in addition, shall
21        be subject to a civil fine payable to the party injured
22        by the default in an amount of up to $25,000.
23        (30) Influencing or attempting to influence, by any
24    words or acts, a prospective seller, purchaser, occupant,
25    landlord, or tenant of real estate, in connection with
26    viewing, buying, or leasing real estate, so as to promote

 

 

SB3399 Engrossed- 34 -LRB100 16040 SMS 31159 b

1    or tend to promote the continuance or maintenance of
2    racially and religiously segregated housing or so as to
3    retard, obstruct, or discourage racially integrated
4    housing on or in any street, block, neighborhood, or
5    community.
6        (31) Engaging in any act that constitutes a violation
7    of any provision of Article 3 of the Illinois Human Rights
8    Act, whether or not a complaint has been filed with or
9    adjudicated by the Human Rights Commission.
10        (32) Inducing any party to a contract of sale or lease
11    or brokerage agreement to break the contract of sale or
12    lease or brokerage agreement for the purpose of
13    substituting, in lieu thereof, a new contract for sale or
14    lease or brokerage agreement with a third party.
15        (33) Negotiating a sale, exchange, or lease of real
16    estate directly with any person if the licensee knows that
17    the person has an exclusive brokerage agreement with
18    another broker, unless specifically authorized by that
19    broker.
20        (34) When a licensee is also an attorney, acting as the
21    attorney for either the buyer or the seller in the same
22    transaction in which the licensee is acting or has acted as
23    a managing broker or broker.
24        (35) Advertising or offering merchandise or services
25    as free if any conditions or obligations necessary for
26    receiving the merchandise or services are not disclosed in

 

 

SB3399 Engrossed- 35 -LRB100 16040 SMS 31159 b

1    the same advertisement or offer. These conditions or
2    obligations include without limitation the requirement
3    that the recipient attend a promotional activity or visit a
4    real estate site. As used in this subdivision (35), "free"
5    includes terms such as "award", "prize", "no charge", "free
6    of charge", "without charge", and similar words or phrases
7    that reasonably lead a person to believe that he or she may
8    receive or has been selected to receive something of value,
9    without any conditions or obligations on the part of the
10    recipient.
11        (36) (Blank).
12        (37) Violating the terms of a disciplinary order issued
13    by the Department.
14        (38) Paying or failing to disclose compensation in
15    violation of Article 10 of this Act.
16        (39) Requiring a party to a transaction who is not a
17    client of the licensee to allow the licensee to retain a
18    portion of the escrow moneys for payment of the licensee's
19    commission or expenses as a condition for release of the
20    escrow moneys to that party.
21        (40) Disregarding or violating any provision of this
22    Act or the published rules adopted promulgated by the
23    Department to enforce this Act or aiding or abetting any
24    individual, foreign or domestic partnership, registered
25    limited liability partnership, limited liability company,
26    or corporation, or other business entity in disregarding

 

 

SB3399 Engrossed- 36 -LRB100 16040 SMS 31159 b

1    any provision of this Act or the published rules adopted
2    promulgated by the Department to enforce this Act.
3        (41) Failing to provide the minimum services required
4    by Section 15-75 of this Act when acting under an exclusive
5    brokerage agreement.
6        (42) Habitual or excessive use or addiction to alcohol,
7    narcotics, stimulants, or any other chemical agent or drug
8    that results in a managing broker, broker, or leasing
9    agent's inability to practice with reasonable skill or
10    safety.
11        (43) Enabling, aiding, or abetting an auctioneer, as
12    defined in the Auction License Act, to conduct a real
13    estate auction in a manner that is in violation of this
14    Act.
15        (44) Permitting any leasing agent or temporary leasing
16    agent permit holder to engage in activities that require a
17    broker's or managing broker's license.
18    (b) The Department may refuse to issue or renew or may
19suspend the license of any person who fails to file a return,
20pay the tax, penalty or interest shown in a filed return, or
21pay any final assessment of tax, penalty, or interest, as
22required by any tax Act administered by the Department of
23Revenue, until such time as the requirements of that tax Act
24are satisfied in accordance with subsection (g) of Section
252105-15 of the Civil Administrative Code of Illinois.
26    (c) The Department shall deny a license or renewal

 

 

SB3399 Engrossed- 37 -LRB100 16040 SMS 31159 b

1authorized by this Act to a person who has defaulted on an
2educational loan or scholarship provided or guaranteed by the
3Illinois Student Assistance Commission or any governmental
4agency of this State in accordance with item (5) of subsection
5(a) of Section 2105-15 of the Civil Administrative Code of
6Illinois.
7    (d) In cases where the Department of Healthcare and Family
8Services (formerly Department of Public Aid) has previously
9determined that a licensee or a potential licensee is more than
1030 days delinquent in the payment of child support and has
11subsequently certified the delinquency to the Department may
12refuse to issue or renew or may revoke or suspend that person's
13license or may take other disciplinary action against that
14person based solely upon the certification of delinquency made
15by the Department of Healthcare and Family Services in
16accordance with item (5) of subsection (a) of Section 2105-15
17of the Civil Administrative Code of Illinois.
18    (e) In enforcing this Section, the Department or Board upon
19a showing of a possible violation may compel an individual
20licensed to practice under this Act, or who has applied for
21licensure under this Act, to submit to a mental or physical
22examination, or both, as required by and at the expense of the
23Department. The Department or Board may order the examining
24physician to present testimony concerning the mental or
25physical examination of the licensee or applicant. No
26information shall be excluded by reason of any common law or

 

 

SB3399 Engrossed- 38 -LRB100 16040 SMS 31159 b

1statutory privilege relating to communications between the
2licensee or applicant and the examining physician. The
3examining physicians shall be specifically designated by the
4Board or Department. The individual to be examined may have, at
5his or her own expense, another physician of his or her choice
6present during all aspects of this examination. Failure of an
7individual to submit to a mental or physical examination, when
8directed, shall be grounds for suspension of his or her license
9until the individual submits to the examination if the
10Department finds, after notice and hearing, that the refusal to
11submit to the examination was without reasonable cause.
12    If the Department or Board finds an individual unable to
13practice because of the reasons set forth in this Section, the
14Department or Board may require that individual to submit to
15care, counseling, or treatment by physicians approved or
16designated by the Department or Board, as a condition, term, or
17restriction for continued, reinstated, or renewed licensure to
18practice; or, in lieu of care, counseling, or treatment, the
19Department may file, or the Board may recommend to the
20Department to file, a complaint to immediately suspend, revoke,
21or otherwise discipline the license of the individual. An
22individual whose license was granted, continued, reinstated,
23renewed, disciplined or supervised subject to such terms,
24conditions, or restrictions, and who fails to comply with such
25terms, conditions, or restrictions, shall be referred to the
26Secretary for a determination as to whether the individual

 

 

SB3399 Engrossed- 39 -LRB100 16040 SMS 31159 b

1shall have his or her license suspended immediately, pending a
2hearing by the Department.
3    In instances in which the Secretary immediately suspends a
4person's license under this Section, a hearing on that person's
5license must be convened by the Department within 30 days after
6the suspension and completed without appreciable delay. The
7Department and Board shall have the authority to review the
8subject individual's record of treatment and counseling
9regarding the impairment to the extent permitted by applicable
10federal statutes and regulations safeguarding the
11confidentiality of medical records.
12    An individual licensed under this Act and affected under
13this Section shall be afforded an opportunity to demonstrate to
14the Department or Board that he or she can resume practice in
15compliance with acceptable and prevailing standards under the
16provisions of his or her license.
17(Source: P.A. 99-227, eff. 8-3-15; 100-22, eff. 1-1-18;
18100-188, eff. 1-1-18; 100-534, eff. 9-22-17; revised 10-2-17.)
 
19    (225 ILCS 454/30-5)
20    (Section scheduled to be repealed on January 1, 2020)
21    Sec. 30-5. Licensing of real estate education providers,
22education provider branches, and instructors.
23    (a) No person shall operate an education provider entity
24without possessing a valid and active license issued by the
25Department. Only education providers in possession of a valid

 

 

SB3399 Engrossed- 40 -LRB100 16040 SMS 31159 b

1education provider license may provide real estate
2pre-license, post-license, or continuing education courses
3that satisfy the requirements of this Act. Every person that
4desires to obtain an education provider license shall make
5application to the Department in writing on forms prescribed by
6the Department and pay the fee prescribed by rule. In addition
7to any other information required to be contained in the
8application as prescribed by rule, every application for an
9original or renewed license shall include the applicant's
10Social Security number or tax identification number.
11    (b) (Blank).
12    (c) (Blank).
13    (d) (Blank).
14    (e) (Blank).
15    (f) To qualify for an education provider license, an
16applicant must demonstrate the following:
17        (1) a sound financial base for establishing,
18    promoting, and delivering the necessary courses; budget
19    planning for the school's courses should be clearly
20    projected;
21        (2) a sufficient number of qualified, licensed
22    instructors as provided by rule;
23        (3) adequate support personnel to assist with
24    administrative matters and technical assistance;
25        (4) maintenance and availability of records of
26    participation for licensees;

 

 

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1        (5) the ability to provide each participant who
2    successfully completes an approved program with a
3    certificate of completion signed by the administrator of a
4    licensed education provider on forms provided by the
5    Department;
6        (6) a written policy dealing with procedures for the
7    management of grievances and fee refunds;
8        (7) lesson plans and examinations, if applicable, for
9    each course;
10        (8) a 75% passing grade for successful completion of
11    any continuing education course or pre-license or
12    post-license examination, if required;
13        (9) the ability to identify and use instructors who
14    will teach in a planned program; instructor selections must
15    demonstrate:
16            (A) appropriate credentials;
17            (B) competence as a teacher;
18            (C) knowledge of content area; and
19            (D) qualification by experience.
20    Unless otherwise provided for in this Section, the
21education provider shall provide a proctor or an electronic
22means of proctoring for each examination; the education
23provider shall be responsible for the conduct of the proctor;
24the duties and responsibilities of a proctor shall be
25established by rule.
26    Unless otherwise provided for in this Section, the

 

 

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1education provider must provide for closed book examinations
2for each course unless the Department, upon the recommendation
3of the Board, excuses this requirement based on the complexity
4of the course material.
5    (g) Advertising and promotion of education activities must
6be carried out in a responsible fashion clearly showing the
7educational objectives of the activity, the nature of the
8audience that may benefit from the activity, the cost of the
9activity to the participant and the items covered by the cost,
10the amount of credit that can be earned, and the credentials of
11the faculty.
12    (h) The Department may, or upon request of the Board shall,
13after notice, cause an education provider to attend an informal
14conference before the Board for failure to comply with any
15requirement for licensure or for failure to comply with any
16provision of this Act or the rules for the administration of
17this Act. The Board shall make a recommendation to the
18Department as a result of its findings at the conclusion of any
19such informal conference.
20    (i) All education providers shall maintain these minimum
21criteria and pay the required fee in order to retain their
22education provider license.
23    (j) The Department may adopt any administrative rule
24consistent with the language and intent of this Act that may be
25necessary for the implementation and enforcement of this
26Section.

 

 

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1(Source: P.A. 100-188, eff. 1-1-18.)
 
2    Section 20. The Real Estate Appraiser Licensing Act of 2002
3is amended by changing Sections 5-45 and 15-15 as follows:
 
4    (225 ILCS 458/5-45)
5    (Section scheduled to be repealed on January 1, 2022)
6    Sec. 5-45. Continuing education renewal requirements.
7    (a) The continuing education requirements for a person to
8renew a license as a State certified general real estate
9appraiser or a State certified residential real estate
10appraiser shall be established by rule.
11    (b) The continuing education requirements for a person to
12renew a license as an associate real estate trainee appraiser
13shall be established by rule.
14    (c) Notwithstanding any other provision of this Act to the
15contrary, the Department shall establish a continuing
16education completion deadline for appraisal licensees and
17require evidence of compliance with the continuing education
18requirements before the renewal of a license.
19(Source: P.A. 96-844, eff. 12-23-09.)
 
20    (225 ILCS 458/15-15)
21    (Section scheduled to be repealed on January 1, 2022)
22    Sec. 15-15. Investigation; notice; hearing.
23    (a) Upon the motion of the Department or the Board or upon

 

 

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1a complaint in writing of a person setting forth facts that, if
2proven, would constitute grounds for suspension, revocation,
3or other disciplinary action against a licensee or applicant
4for licensure, the Department shall investigate the actions of
5the licensee or applicant. If, upon investigation, the
6Department believes that there may be cause for suspension,
7revocation, or other disciplinary action, the Department shall
8use the services of a State certified general real estate
9appraiser, a State certified residential real estate
10appraiser, or the Real Estate Coordinator to assist in
11determining whether grounds for disciplinary action exist
12prior to commencing formal disciplinary proceedings.
13    (b) Formal disciplinary proceedings shall commence upon
14the issuance of a written complaint describing the charges that
15are the basis of the disciplinary action and delivery of the
16detailed complaint to the address of record of the licensee or
17applicant. The Department shall notify the licensee or
18applicant to file a verified written answer within 20 days
19after the service of the notice and complaint. The notification
20shall inform the licensee or applicant of his or her right to
21be heard in person or by legal counsel; that the hearing will
22be afforded not sooner than 30 days after service of the
23complaint; that failure to file an answer will result in a
24default being entered against the licensee or applicant; that
25the license may be suspended, revoked, or placed on
26probationary status; and that other disciplinary action may be

 

 

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1taken pursuant to this Act, including limiting the scope,
2nature, or extent of the licensee's practice. If the licensee
3or applicant fails to file an answer after service of notice,
4his or her license may, at the discretion of the Department, be
5suspended, revoked, or placed on probationary status and the
6Department may take whatever disciplinary action it deems
7proper, including limiting the scope, nature, or extent of the
8person's practice, without a hearing.
9    (c) At the time and place fixed in the notice, the Board
10shall conduct hearing of the charges, providing both the
11accused person and the complainant ample opportunity to present
12in person or by counsel such statements, testimony, evidence,
13and argument as may be pertinent to the charges or to a defense
14thereto.
15    (d) The Board shall present to the Secretary a written
16report of its findings and recommendations. A copy of the
17report shall be served upon the licensee or applicant, either
18personally or by certified mail. Within 20 days after the
19service, the licensee or applicant may present the Secretary
20with a motion in writing for either a rehearing, a proposed
21finding of fact, a conclusion of law, or an alternative
22sanction, and shall specify the particular grounds for the
23request. If the accused orders a transcript of the record as
24provided in this Act, the time elapsing thereafter and before
25the transcript is ready for delivery to the accused shall not
26be counted as part of the 20 days. If the Secretary is not

 

 

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1satisfied that substantial justice has been done, the Secretary
2may order a rehearing by the Board or other special committee
3appointed by the Secretary, may remand the matter to the Board
4for its reconsideration of the matter based on the pleadings
5and evidence presented to the Board, or may enter a final order
6in contravention of the Board's recommendation. In all
7instances under this Act in which the Board has rendered a
8recommendation to the Secretary with respect to a particular
9licensee or applicant, the Secretary, if he or she disagrees
10with the recommendation of the Board, shall file with the Board
11and provide to the licensee or applicant a copy of the
12Secretary's specific written reasons for disagreement with the
13Board. The reasons shall be filed within 60 days of the Board's
14recommendation to the Secretary and prior to any contrary
15action. Notwithstanding a licensee's or applicant's failure to
16file a motion for rehearing, the Secretary shall have the right
17to take any of the actions specified in this subsection (d).
18Upon the suspension or revocation of a license, the licensee
19shall be required to surrender his or her license to the
20Department, and upon failure or refusal to do so, the
21Department shall have the right to seize the license.
22    (e) The Department has the power to issue subpoenas and
23subpoenas duces tecum to bring before it any person in this
24State, to take testimony, or to require production of any
25records relevant to an inquiry or hearing by the Board in the
26same manner as prescribed by law in judicial proceedings in the

 

 

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

 

 

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1to have the proceedings transcribed by a certified shorthand
2reporter. A copy of the transcribed proceedings shall be made
3available to the licensee by the certified shorthand reporter
4upon payment of the prevailing contract copy rate.
5(Source: P.A. 96-844, eff. 12-23-09.)
 
6    Section 99. Effective date. This Act takes effect January
71, 2019.