State of Illinois
2011 and 2012


Introduced 2/23/2011, by Rep. Angelo Saviano - Robert Rita


New Act

    Creates the Appraisal Management Company Registration Act. Provides for registration of appraisal management companies with the Department of Financial and Professional Regulation. Beginning January 1, 2012, provides that it is unlawful for a person or entity to act or assume to act as an appraisal management company as defined in this Act, to engage in the business of appraisal management service, or to advertise or hold himself or herself out to be a registered appraisal management company without first obtaining a certificate of registration issued by the Department under this Act. Includes provisions concerning exemption from the Act. Provides that persons practicing as an appraisal management company in Illinois on the effective date of the Act may continue to practice until the Department has adopted rules implementing the Act. Provides that persons shall apply for registration within 180 days after the effective date of the rules and the person may continue to practice until the Department acts to grant or deny registration. Provides that each entity registered under this Act shall designate a controlling person who is responsible to assure that the company operates in compliance with this Act. Sets forth the powers and duties of the Department, registration qualifications, grounds for discipline, civil and criminal penalties, and administrative procedure. Sets forth provisions concerning standards of practice and prohibited activities. Preempts home rule. Effective immediately.

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HB2956LRB097 08576 CEL 48703 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Appraisal Management Company Registration Act.
6    Section 5. Findings. The General Assembly finds that: It
7is the intent of the General Assembly that this Act provide for
8the regulation of those persons or entities engaged as
9appraisal management companies for the protection of the public
10and for the maintenance of high standards of professional
11conduct by those registered as appraisal management companies
12and to ensure appraisal independence in the determination of
13real estate valuations.
14    Section 10. Definitions. In this Act:
15    "Address of record" means the designated address recorded
16by the Department in the applicant's or registrant's
17application file or registration file maintained by the
18Department's registration maintenance unit. It is the duty of
19the applicant or registrant to inform the Department of any
20change of address, and the changes must be made either through
21the Department's website or by contacting the Department's
22registration maintenance unit within a prescribed time period



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



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1property appraisals.
2    "Assignment result" means an appraiser's opinions and
3conclusions developed specific to an assignment.
4    "Board" means the Real Estate Appraisal Administration and
5Disciplinary Board.
6    "Client" means the party or parties who engage an appraiser
7by employment or contract in a specific appraisal assignment.
8    "Controlling Person" means:
9        (1) an owner, officer, or director of an entity seeking
10    to offer appraisal management services;
11        (2) an individual employed, appointed, or authorized
12    by an appraisal management company who has the authority
13    to:
14            (A) enter into a contractual relationship with a
15        client for the performance of an appraisal management
16        service or appraisal practice service; and
17            (B) enter into an agreement with an appraiser for
18        the performance of a real estate appraisal activity; or
19        (3) an individual who possesses, directly or
20    indirectly, the power to direct or cause the direction of
21    the management or policies of an appraisal management
22    company.
23    "Coordinator" means the Coordinator of the Appraisal
24Management Company Registration Unit of the Department or his
25or her designee.
26    "Department" means the Department of Financial and



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1Professional Regulation.
2    "Entity" means a corporation, a limited liability company,
3partnership, a sole proprietorship, or other entity providing
4services or holding itself out to provide services as an
5appraisal management company or an appraisal management
7    "End-user client" means any person who utilizes or engages
8the services of an appraiser through an appraisal management
10    "Financial institution" means any bank, savings bank,
11savings and loan association, credit union, mortgage broker,
12mortgage banker, registrant under the Consumer Installment
13Loan Act or the Sales Finance Agency Act, or a corporate
14fiduciary, subsidiary, affiliate, parent company, or holding
15company of any registrant, or any institution involved in real
16estate financing that is regulated by State or federal law.
17    "Person" means individuals, entities, sole
18proprietorships, corporations, limited liability companies,
19and partnerships, foreign or domestic, except that when the
20context otherwise requires, the term may refer to a single
21individual or other described entity.
22    "Quality control review" means a review of an appraisal
23report for compliance and completeness, including grammatical,
24typographical, or other similar errors, unrelated to
25developing an opinion of value.
26    "Real estate" means an identified parcel or tract of land,



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1including any improvements.
2    "Real estate related financial transaction" means any
3transaction involving:
4        (1) the sale, lease, purchase, investment in, or
5    exchange of real property, including interests in property
6    or the financing thereof;
7        (2) the refinancing of real property or interests in
8    real property; and
9        (3) the use of real property or interest in property as
10    security for a loan or investment, including mortgage
11    backed securities.
12    "Real property" means the interests, benefits, and rights
13inherent in the ownership of real estate.
14    "Secretary" means the Secretary of Financial and
15Professional Regulation.
16    "USPAP" means the Uniform Standards of Professional
17Appraisal Practice as adopted by the Appraisal Standards Board
18under Title XI.
19    "Valuation" means any estimate of the value of real
20property in connection with a creditor's decision to provide
21credit, including those values developed under a policy of a
22government sponsored enterprise or by an automated valuation
23model, a broker price opinion, or other methodology or
25    Section 15. Exemptions. Nothing in this Act shall to apply



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1to any of the following:
2        (1) an agency of the federal, State, county, or
3    municipal government or an officer or employee of a
4    government agency, or person, described in this Section
5    when acting within the scope of employment of the officer
6    or employee;
7        (2) a corporate relocation company whereby the
8    appraisal is not used for mortgage purposes and the end
9    user client is an employer company;
10        (3) a real estate broker or real estate managing broker
11    licensed by the Department performing activities regulated
12    by the Department, unless the real estate broker or real
13    estate managing broker licensed by the Department receives
14    compensation or other pecuniary gain in connection with the
15    referral, placement, or execution of a request for
16    appraisal practice services;
17        (4) any person licensed in this State under any other
18    Act from engaging in the practice for which he or she is
19    licensed;
20        (5) any person licensed to practice law in this State
21    who is working with or on behalf of a client of that person
22    in connection with one or more appraisals for that client;
23    or
24        (6) an appraiser that enters into an agreement, whether
25    written or otherwise, with another appraiser for the
26    performance of an appraisal, and upon the completion of the



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1    appraisal, the report of the appraiser performing the
2    appraisal is signed by both the appraiser who completed the
3    appraisal and the appraiser who requested the completion of
4    the appraisal, except that an appraisal management company
5    may not avoid the requirement of registration under this
6    Act by requiring an employee of the appraisal management
7    company who is an appraiser to sign an appraisal that was
8    completed by another appraiser who is part of the appraisal
9    panel of the appraisal management company.
10        (7) an appraisal management company that is owned and
11    controlled by a financial institution regulated by a
12    federal financial institution's regulatory agency; an
13    appraisal management company claiming this exemption shall
14    notify the Department of their intent to claim this
15    exemption in writing within 180 days after the date that
16    the Department begins accepting applications for
17    registration under this Act.
18    Section 20. Restrictions and limitations. Beginning
19January 1, 2012, it is unlawful for a person or entity to act
20or assume to act as an appraisal management company as defined
21in this Act, to engage in the business of appraisal management
22service, or to advertise or hold himself or herself out to be a
23registered appraisal management company without first
24obtaining a registration issued by the Department under this
25Act. A person or entity that violates this Section is guilty of



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1a Class A misdemeanor for the first offense and a Class 4
2felony for second and subsequent offenses.
3    Persons practicing as an appraisal management company in
4Illinois as of the effective date of this Act may continue to
5practice as provided in this Act until the Department has
6adopted rules implementing this Act. To continue practicing as
7an appraisal management company after the adoption of rules,
8persons shall apply for registration within 180 days after the
9effective date of the rules. If an application is received
10during the 180-day period, the person may continue to practice
11until the Department acts to grant or deny registration. If an
12application is not filed within the 180-day period, the person
13must cease the practice at the conclusion of the 180-day period
14and until the Department acts to grant a registration to the
16    Section 25. Powers and duties of the Department. Subject
17to the provisions of this Act:
18        (1) The Department may ascertain the qualifications
19    and fitness of applicants for registration and pass upon
20    the qualifications of applicants for registration.
21        (2) The Department may conduct hearings on proceedings
22    to refuse to issue or renew or to revoke registrations or
23    suspend, place on probation, or reprimand persons or
24    otherwise discipline individuals or entities subject to
25    this Act.



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1        (3) The Department may formulate all rules required for
2    the administration of this Act. With the exception of
3    emergency rules, any proposed rules, amendments, second
4    notice materials, and adopted rule or amendment materials
5    or policy statements concerning appraisal management
6    companies shall be presented to the Real Estate Appraisal
7    Administration and Disciplinary Board for review and
8    comment. The recommendations of the Board shall be
9    presented to the Secretary for consideration in making
10    final decisions.
11        (4) The Department may maintain rosters of the names
12    and addresses of all registrants, and all persons whose
13    registrations have been suspended, revoked, or denied
14    renewal for cause within the previous calendar year or
15    otherwise disciplined. These rosters shall be available
16    upon written request and payment of the required fee as
17    established by rule.
18    Section 30. Coordinator of Appraisal Management Company
19Registration. The Coordinator of Real Estate Appraisal shall
20serve as the Coordinator of Appraisal Management Company
21Registration. The Coordinator shall have the same duties and
22responsibilities in regards to appraisal management company
23registration as the Coordinator has in regards to appraisal
24licensure as set forth in the Real Estate Appraiser Licensing
25Act of 2002.



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



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



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1    Process, under rule; and
2        (11) a certification that the applicant shall comply
3    with all other requirements of this Act and rules
4    established for the implementation of this Act.
5    (b) Applicants have 3 years from the date of application to
6complete the application process. If the process has not been
7completed in 3 years, the application shall be denied, the fee
8shall be forfeited, and the applicant must reapply and meet the
9requirements in effect at the time of reapplication.
10    Section 45. Expiration and renewal of registration. The
11expiration date and renewal period for each registration shall
12be set by rule. A registrant whose registration has expired may
13reinstate his or her registration at any time within 5 years
14after the expiration thereof, by making a renewal application
15and by paying the required fee.
16    Any registrant whose registration has expired for more than
175 years may have it restored by making application to the
18Department, paying the required fee, and filing acceptable
19proof of fitness to have the registration restored as set by
21    Section 50. Bonds of registrants. All registrants shall
22maintain a bond in accordance with this Section. Each bond
23shall be for the recovery of expenses, fines, or fees due to or
24levied by the Department in accordance with this Act. The bond



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



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1The fines imposed by this Section are in addition to any other
2discipline provided under this Act for unregistered practice or
3practice on a nonrenewed registration. The Department shall
4notify the person that payment of fees and fines shall be paid
5to the Department by certified check or money order within 30
6calendar days of the notification. If, after the expiration of
730 days after the date of the notification, the person has
8failed to submit the necessary remittance, the Department shall
9automatically terminate the registration or deny the
10application, without hearing. If, after termination or denial,
11the person seeks a registration, he or she shall apply to the
12Department for restoration or issuance of the registration and
13pay all fees and fines due to the Department. The Department
14may establish a fee for the processing of an application for
15restoration of a registration to pay all expenses of processing
16this application. The Secretary may waive the fines due under
17this Section in individual cases where the Secretary finds that
18the fines would be unreasonable or unnecessarily burdensome.
19    Section 65. Disciplinary actions.
20    (a) The Department may refuse to issue or renew, or may
21revoke, suspend, place on probation, reprimand, or take other
22disciplinary or non-disciplinary action as the Department may
23deem appropriate, including imposing fines not to exceed
24$25,000 for each violation, with regard to any registration for
25any one or combination of the following:



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1        (1) Material misstatement in furnishing information to
2    the Department.
3        (2) Violations of this Act, or of the rules adopted
4    under this Act.
5        (3) Conviction of, or entry of a plea of guilty or nolo
6    contendere to any crime that is a felony under the laws of
7    the United States or any state or territory thereof or that
8    is a misdemeanor of which an essential element is
9    dishonesty, or any crime that is directly related to the
10    practice of the profession.
11        (4) Making any misrepresentation for the purpose of
12    obtaining registration or violating any provision of this
13    Act or the rules adopted under this Act pertaining to
14    advertising.
15        (5) Professional incompetence.
16        (6) Gross malpractice.
17        (7) Aiding or assisting another person in violating any
18    provision of this Act or rules adopted under this Act.
19        (8) Failing, within 30 days after requested, to provide
20    information in response to a written request made by the
21    Department.
22        (9) Engaging in dishonorable, unethical, or
23    unprofessional conduct of a character likely to deceive,
24    defraud, or harm the public.
25        (10) Discipline by another state, District of
26    Columbia, territory, or foreign nation, if at least one of



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



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



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



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1the notice, fails to file an answer, his or her registration
2may, in the discretion of the Department, be suspended,
3revoked, placed on probationary status, or the Department may
4take whatever disciplinary action considered proper, including
5limiting the scope, nature, or extent of the person's practice
6or the imposition of a fine, without a hearing, if the act or
7acts charged constitute sufficient grounds for that action
8under this Act. The written notice may be served by personal
9delivery or by certified mail to the address specified by the
10accused in his or her last notification with the Department.
11    Section 80. Record of proceedings; transcript. The
12Department, at its expense, shall preserve a record of all
13proceedings at the formal hearing of any case. The notice of
14hearing, complaint, all other documents in the nature of
15pleadings, written motions filed in the proceedings, the
16transcripts of testimony, the report of the hearing officer,
17and orders of the Department shall be in the record of the
18proceeding. The Department shall furnish a transcript of the
19record to any person interested in the hearing upon payment of
20the fee required under Section 2105-115 of the Department of
21Professional Regulation Law.
22    Section 85. Subpoenas; depositions; oaths. The Department
23has the power to subpoena documents, books, records, or other
24materials and to bring before it any person and to take



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1testimony either orally or by deposition, or both, with the
2same fees and mileage and in the same manner as prescribed in
3civil cases in the courts of this State.
4    The Secretary and the designated hearing officer have the
5power to administer oaths to witnesses at any hearing that the
6Department is authorized to conduct, and any other oaths
7authorized in any Act administered by the Department.
8    Section 90. Compelling testimony. Any circuit court, upon
9application of the Department or designated hearing officer may
10enter an order requiring the attendance of witnesses and their
11testimony, and the production of documents, papers, files,
12books, and records in connection with any hearing or
13investigation. The court may compel obedience to its order by
14proceedings for contempt.
15    Section 95. Findings and recommendations. At the
16conclusion of the hearing, the designated hearing officer shall
17present to the Secretary a written report of his or her
18findings of fact, conclusions of law, and recommendations. The
19report shall contain a finding whether or not the accused
20person violated this Act or its rules or failed to comply with
21the conditions required in this Act or its rules. The hearing
22officer shall specify the nature of any violations or failure
23to comply and shall make his or her recommendations to the
24Secretary. In making recommendations for any disciplinary



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1actions, the hearing officer may take into consideration all
2facts and circumstances bearing upon the reasonableness of the
3conduct of the accused and the potential for future harm to the
4public, including, but not limited to, previous discipline of
5the accused by the Department, intent, degree of harm to the
6public and likelihood of harm in the future, any restitution
7made by the accused, and whether the incident or incidents
8contained in the complaint appear to be isolated or represent a
9continuing pattern of conduct. In making his or her
10recommendations for discipline, the hearing officer shall
11endeavor to ensure that the severity of the discipline
12recommended is reasonably related to the severity of the
13violation. The report of findings of fact, conclusions of law,
14and recommendation of the hearing officer shall be the basis
15for the Department's order refusing to issue, restore, or renew
16a registration, or otherwise disciplining a registrant. If the
17Secretary disagrees with the recommendations of the hearing
18officer, the Secretary may issue an order in contravention of
19the hearing officer recommendations. The finding is not
20admissible in evidence against the person in a criminal
21prosecution brought for a violation of this Act, but the
22hearing and finding are not a bar to a criminal prosecution
23brought for a violation of this Act.
24    Section 100. Hearing officer; rehearing. At the conclusion
25of the hearing, a copy of the hearing officer's report shall be



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1served upon the applicant or registrant by the Department,
2either personally or as provided in this Act for the service of
3a notice of hearing. Within 20 days after service, the
4applicant or registrant may present to the Department a motion
5in writing for a rehearing, which shall specify the particular
6grounds for rehearing. The Department may respond to the motion
7for rehearing within 20 days after its service on the
8Department. If no motion for rehearing is filed, then upon the
9expiration of the time specified for filing such a motion, or
10if a motion for rehearing is denied, then upon denial, the
11Secretary may enter an order in accordance with recommendations
12of the hearing officer except as provided in Sections 105 or
13110 of this Act. If the applicant or registrant orders from the
14reporting service and pays for a transcript of the record
15within the time for filing a motion for rehearing, the 20-day
16period within which a motion may be filed shall commence upon
17the delivery of the transcript to the applicant or registrant.
18    Section 105. Secretary; rehearing. Whenever the Secretary
19believes that substantial justice has not been done in the
20revocation, suspension, or refusal to issue, restore, or renew
21a registration, or other discipline of an applicant or
22registrant, he or she may order a rehearing by the same or
23other hearing officers.
24    Section 110. Appointment of a hearing officer. The



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1Secretary has the authority to appoint any attorney licensed to
2practice law in the State to serve as the hearing officer in
3any action for refusal to issue, restore, or renew a
4registration or to discipline a registrant. The hearing officer
5has full authority to conduct the hearing. The hearing officer
6shall report his or her findings of fact, conclusions of law,
7and recommendations to the Secretary. If the Secretary
8disagrees with the recommendation of the hearing officer, the
9Secretary may issue an order in contravention of the
11    Section 115. Order or certified copy; prima facie proof.
12An order or certified copy thereof, over the seal of the
13Department and purporting to be signed by the Secretary, is
14prima facie proof that:
15    (1) the signature is the genuine signature of the
16Secretary; and
17    (2) the Secretary is duly appointed and qualified.
18    Section 120. Restoration of suspended or revoked
19registration. At any time after the successful completion of a
20term of suspension or revocation of a registration, the
21Department may restore it to the registrant, upon the written
22recommendation of the hearing officer, unless after an
23investigation and a hearing the Secretary determines that
24restoration is not in the public interest.



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1    Section 125. Surrender of registration. Upon the
2revocation or suspension of a registration, the registrant
3shall immediately surrender his or her registration to the
4Department. If the registrant fails to do so, the Department
5has the right to seize the registration.
6    Section 130. Summary suspension of a registration. The
7Secretary may summarily suspend the registration of any
8registrant under this Act without a hearing, simultaneously
9with the institution of proceedings for a hearing provided for
10in Section 75 of this Act, if the Secretary finds that evidence
11in the Secretary's possession indicates that the continuation
12of practice by the registrant would constitute an imminent
13danger to the public. In the event that the Secretary summarily
14suspends the registration of a registrant under this Section
15without a hearing, a hearing must be commenced within 30 days
16after the suspension has occurred and concluded as
17expeditiously as practical.
18    Section 135. Administrative review; venue.
19    (a) All final administrative decisions of the Department
20are subject to judicial review under the Administrative Review
21Law and its rules. The term "administrative decision" is
22defined as in Section 3-101 of the Code of Civil Procedure.
23    (b) Proceedings for judicial review shall be commenced in



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1the circuit court of the county in which the party applying for
2review resides, but if the party is not a resident of Illinois,
3the venue shall be in Sangamon County.
4    Section 140. Certifications of record; costs. The
5Department shall not be required to certify any record to the
6court, to file an answer in court, or to otherwise appear in
7any court in a judicial review proceeding unless and until the
8Department has received from the plaintiff payment of the costs
9of furnishing and certifying the record, which costs shall be
10determined by the Department. Failure on the part of the
11plaintiff to file the receipt in court is grounds for dismissal
12of the action.
13    Section 145. Violations. Any person who is found to have
14violated any provision of this Act is guilty of a Class A
15misdemeanor. On conviction of a second or subsequent offense,
16the violator is guilty of a Class 4 felony.
17    Section 150. Civil penalties.
18    (a) In addition to any other penalty provided by law, any
19person who violates this Act shall forfeit and pay a civil
20penalty to the Department in an amount not to exceed $25,000
21for each violation as determined by the Department. The civil
22penalty shall be assessed by the Department in accordance with
23the provisions of this Act.



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1    (b) The Department has the authority and power to
2investigate any and all unregistered activity.
3    (c) The civil penalty shall be paid within 60 days after
4the effective date of the order imposing the civil penalty. The
5order shall constitute a judgment and may be filed and
6execution had thereon in the same manner as any judgment from
7any court of record.
8    (d) All moneys collected under this Section shall be
9deposited into the Appraisal Administration Fund.
10    Section 155. Consent order. At any point in the
11proceedings as provided in this Act, both parties may agree to
12a negotiated consent order. The consent order shall be final
13upon signature of the Secretary.
14    Section 160. Business practice provisions; standards of
16    (a) The Department may adopt by rule the Uniform Standards
17of Professional Appraisal Practice as published from time to
18time by the Appraisal Standards Board of the Appraisal
19Foundation. Appraisal management companies shall not interfere
20with adherence to the Uniform Standards of Professional
21Appraisal Practice or the Real Estate Appraiser Act of 2002 or
22a subsequent Act by individuals licensed under the respective
24    (b) All payment policies from registrants under this Act to



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



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1conduct shall report the matter to the Department. Any
2registrant, employee, or individual acting on behalf of a
3registrant, acting in good faith, and not in a willful and
4wanton manner, in complying with this Act by reporting the
5conduct to the Department shall not, as a result of such
6actions, be subject to criminal prosecution or civil damages.
7    (f) Appraisal management companies are required to be in
8compliance with the appraisal independence standards
9established under Section 129E of the federal Truth in Lending
10Act, including the requirement that fee appraisers be
11compensated at a customary and reasonable rate when the
12appraisal management company is providing services for a
13consumer credit transaction secured by the principal dwelling
14of a consumer. The appraisal management company must certify to
15the Department that it has policies and procedures in place to
16be in compliance, however, the Department may not adopt rules
17or policies that contradict or change the presumptions of
18compliance as established under the Final Interim Rule of the
19federal Dodd-Frank Wall Street Reform and Consumer Protection
21    (g) No appraisal management company procuring or
22facilitating an appraisal may have a direct or indirect
23interest, financial or otherwise, in the real estate or the
24transaction that is the subject of the appraisal, as defined by
25the federal Dodd-Frank Wall Street Reform and Consumer
26Protection Act, any amendments thereto, or successor acts or



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1other applicable provisions of federal law or regulations.
2    Section 165. Prohibited activities.
3    (a) No person or entity acting in the capacity of an
4appraisal management company shall improperly influence or
5attempt to improperly influence the development, reporting,
6result, or review of any appraisal by engaging, without
7limitation, in any of the following:
8        (1) Withholding or threatening to withhold timely
9    payment for a completed appraisal, except where addressed
10    in a mutually agreed upon contract.
11        (2) Withholding or threatening to withhold, either
12    expressed or by implication, future business from, or
13    demoting, or terminating, or threatening to demote or
14    terminate an Illinois licensed or certified appraiser.
15        (3) Expressly or impliedly promising future business,
16    promotions, or increased compensation for an independent
17    appraiser.
18        (4) Conditioning an assignment for an appraisal
19    service or the payment of an appraisal fee or salary or
20    bonus on the opinion, conclusion, or valuation to be
21    reached in an appraisal report.
22        (5) Requesting that an appraiser provide an estimated,
23    predetermined, or desired valuation in an appraisal report
24    or provide estimated values or sales at any time prior to
25    the appraiser's completion of an appraisal report.



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



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1assignment or a contract with an independent appraiser for the
2purpose of evading the provisions of this Act.
3    (c) No registrant or other person or entity may alter,
4modify, or otherwise change a completed appraisal report
5submitted by an independent appraiser, including without
6limitation, by doing either of the following:
7        (1) permanently or temporarily removing the
8    appraiser's signature or seal; or
9        (2) adding information to, or removing information
10    from, the appraisal report with an intent to change the
11    value conclusion or the condition of the property.
12    (d) No appraisal management company may require an
13appraiser to provide it with the appraiser's digital signature
14or seal. However, nothing in this Act shall be deemed to
15prohibit an appraiser from voluntarily providing his or her
16digital signature or seal to another person on an
17assignment-by-assignment basis, in accordance with USPAP.
18    (e) Nothing in this Act shall prohibit an appraisal
19management company from requesting that an appraiser:
20        (1) consider additional appropriate property
21    information, including the consideration of additional
22    comparable properties to make or support an appraisal;
23        (2) provide further detail, substantiation, or
24    explanation for the appraiser's value conclusion; or
25        (3) correct factual errors in the appraisal report.



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1    Section 170. Confidentiality. All information collected by
2the Department in the course of an examination or investigation
3of a licensee or applicant, including, but not limited to, any
4complaint against a licensee filed with the Department and
5information collected to investigate any such complaint, shall
6be maintained for the confidential use of the Department and
7shall not be disclosed. The Department may not disclose the
8information to anyone other than law enforcement officials,
9other regulatory agencies that have an appropriate regulatory
10interest as determined by the Secretary, or to a party
11presenting a lawful subpoena to the Department. Information and
12documents disclosed to a federal, State, county, or local law
13enforcement agency shall not be disclosed by the agency for any
14purpose to any other agency or person. A formal complaint filed
15against a licensee by the Department or any order issued by the
16Department against a licensee or applicant shall be a public
17record, except as otherwise prohibited by law.
18    Section 175. Illinois Administrative Procedure Act;
19application. The Illinois Administrative Procedure Act is
20expressly adopted and incorporated in this Act as if all of the
21provisions of that Act were included in this Act, except that
22the provision of paragraph (d) of Section 10-65 of the Illinois
23Administrative Procedure Act, which provides that at hearings
24the registrant has the right to show compliance with all lawful
25requirements for retention or continuation or renewal of the



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1registration, is specifically excluded. For the purpose of this
2Act, the notice required under Section 10-25 of the Illinois
3Administrative Procedure Act is considered sufficient when
4mailed to the last known address of a party.
5    Section 180. Home rule. The regulation and registration of
6practice as an appraisal management company are exclusive
7powers and functions of the State. A home rule unit may not
8regulate the practice or require the registration as an
9appraisal management company. This Section is a denial and
10limitation of home rule powers and functions under subsection
11(h) of Section 6 of Article VII of the Illinois Constitution.
12    Section 999. Effective date. This Act takes effect upon
13becoming law.