Rep. Angelo Saviano

Filed: 3/15/2011





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2    AMENDMENT NO. ______. Amend House Bill 2956 by replacing
3everything after the enacting clause with the following:
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



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1by the Department in the applicant's or registrant's
2application file or registration file maintained by the
3Department's registration maintenance unit. It is the duty of
4the applicant or registrant to inform the Department of any
5change of address, and the changes must be made either through
6the Department's website or by contacting the Department's
7registration maintenance unit within a prescribed time period
8as defined by rule.
9    "Applicant" means a person or entity who applies to the
10Department for a registration under this Act.
11    "Appraisal" means (noun) the act or process of developing
12an opinion of value; an opinion of value (adjective) of or
13pertaining to appraising and related functions.
14    "Appraisal firm" means an appraisal entity that is 100%
15owned and controlled by a person or persons licensed in
16Illinois as a certified general real estate appraiser or a
17certified residential real estate appraiser. An appraisal firm
18does not include an appraisal management company.
19    "Appraisal management company" means any corporation,
20limited liability company, partnership, sole proprietorship,
21subsidiary, unit, or other business entity that directly or
22indirectly performs the following appraisal management
23services: (1) administers networks of independent contractors
24or employee appraisers to perform real estate appraisal
25assignments for clients; (2) receives requests for real estate
26appraisal services from clients and, for a fee paid by the



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1client, enters into an agreement with one or more independent
2appraisers to perform the real estate appraisal services
3contained in the request; or (3) otherwise serves as a
4third-party broker of appraisal management services between
5clients and appraisers.
6    "Appraisal report" means a written appraisal by an
7appraiser to a client.
8    "Appraisal practice service" means valuation services
9performed by an individual acting as an appraiser, including,
10but not limited to, appraisal, appraisal review, or appraisal
12    "Appraiser" means a person who performs real estate or real
13property appraisals.
14    "Assignment result" means an appraiser's opinions and
15conclusions developed specific to an assignment.
16    "Board" means the Real Estate Appraisal Administration and
17Disciplinary Board.
18    "Client" means the party or parties who engage an appraiser
19by employment or contract in a specific appraisal assignment.
20    "Controlling Person" means:
21        (1) an owner, officer, or director of an entity seeking
22    to offer appraisal management services;
23        (2) an individual employed, appointed, or authorized
24    by an appraisal management company who has the authority
25    to:
26            (A) enter into a contractual relationship with a



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1        client for the performance of an appraisal management
2        service or appraisal practice service; and
3            (B) enter into an agreement with an appraiser for
4        the performance of a real estate appraisal activity; or
5        (3) an individual who possesses, directly or
6    indirectly, the power to direct or cause the direction of
7    the management or policies of an appraisal management
8    company.
9    "Coordinator" means the Coordinator of the Appraisal
10Management Company Registration Unit of the Department or his
11or her designee.
12    "Department" means the Department of Financial and
13Professional Regulation.
14    "Entity" means a corporation, a limited liability company,
15partnership, a sole proprietorship, or other entity providing
16services or holding itself out to provide services as an
17appraisal management company or an appraisal management
19    "End-user client" means any person who utilizes or engages
20the services of an appraiser through an appraisal management
22    "Financial institution" means any bank, savings bank,
23savings and loan association, credit union, mortgage broker,
24mortgage banker, registrant under the Consumer Installment
25Loan Act or the Sales Finance Agency Act, or a corporate
26fiduciary, subsidiary, affiliate, parent company, or holding



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1company of any registrant, or any institution involved in real
2estate financing that is regulated by State or federal law.
3    "Person" means individuals, entities, sole
4proprietorships, corporations, limited liability companies,
5and partnerships, foreign or domestic, except that when the
6context otherwise requires, the term may refer to a single
7individual or other described entity.
8    "Quality control review" means a review of an appraisal
9report for compliance and completeness, including grammatical,
10typographical, or other similar errors, unrelated to
11developing an opinion of value.
12    "Real estate" means an identified parcel or tract of land,
13including any improvements.
14    "Real estate related financial transaction" means any
15transaction involving:
16        (1) the sale, lease, purchase, investment in, or
17    exchange of real property, including interests in property
18    or the financing thereof;
19        (2) the refinancing of real property or interests in
20    real property; and
21        (3) the use of real property or interest in property as
22    security for a loan or investment, including mortgage
23    backed securities.
24    "Real property" means the interests, benefits, and rights
25inherent in the ownership of real estate.
26    "Secretary" means the Secretary of Financial and



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1Professional Regulation.
2    "USPAP" means the Uniform Standards of Professional
3Appraisal Practice as adopted by the Appraisal Standards Board
4under Title XI.
5    "Valuation" means any estimate of the value of real
6property in connection with a creditor's decision to provide
7credit, including those values developed under a policy of a
8government sponsored enterprise or by an automated valuation
9model, a broker price opinion, or other methodology or
11    Section 15. Exemptions. Nothing in this Act shall to apply
12to any of the following:
13        (1) an agency of the federal, State, county, or
14    municipal government or an officer or employee of a
15    government agency, or person, described in this Section
16    when acting within the scope of employment of the officer
17    or employee;
18        (2) a corporate relocation company whereby the
19    appraisal is not used for mortgage purposes and the end
20    user client is an employer company;
21        (3) any person licensed in this State under any other
22    Act while engaged in the activities or practice for which
23    he or she is licensed;
24        (4) any person licensed to practice law in this State
25    who is working with or on behalf of a client of that person



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1    in connection with one or more appraisals for that client;
2    or
3        (5) an appraiser that enters into an agreement, whether
4    written or otherwise, with another appraiser for the
5    performance of an appraisal, and upon the completion of the
6    appraisal, the report of the appraiser performing the
7    appraisal is signed by both the appraiser who completed the
8    appraisal and the appraiser who requested the completion of
9    the appraisal, except that an appraisal management company
10    may not avoid the requirement of registration under this
11    Act by requiring an employee of the appraisal management
12    company who is an appraiser to sign an appraisal that was
13    completed by another appraiser who is part of the appraisal
14    panel of the appraisal management company.
15    In the event that the Final Interim Rule of the federal
16Dodd-Frank Wall Street Reform and Consumer Protection Act
17provides that an appraisal management company is a subsidiary
18owned and controlled by a financial institution regulated by a
19federal financial institution's regulatory agency and is
20exempt from State appraisal management company registration
21requirements, the Department, shall, by rule, provide for the
22implementation of such an exemption.
23    Section 20. Restrictions and limitations. Beginning
24January 1, 2012, it is unlawful for a person or entity to act
25or assume to act as an appraisal management company as defined



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



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



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



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



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1    management company directly involved in providing
2    appraisal management services, will be appropriately
3    trained and familiar with the appraisal process to
4    completely provide appraisal management services;
5        (10) an irrevocable Uniform Consent to Service of
6    Process, under rule; and
7        (11) a certification that the applicant shall comply
8    with all other requirements of this Act and rules
9    established for the implementation of this Act.
10    (b) Applicants have 3 years from the date of application to
11complete the application process. If the process has not been
12completed in 3 years, the application shall be denied, the fee
13shall be forfeited, and the applicant must reapply and meet the
14requirements in effect at the time of reapplication.
15    Section 45. Expiration and renewal of registration. The
16expiration date and renewal period for each registration shall
17be set by rule. A registrant whose registration has expired may
18reinstate his or her registration at any time within 5 years
19after the expiration thereof, by making a renewal application
20and by paying the required fee.
21    Any registrant whose registration has expired for more than
225 years may have it restored by making application to the
23Department, paying the required fee, and filing acceptable
24proof of fitness to have the registration restored as set by



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



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1    Section 60. Returned checks; fines. Any person who
2delivers a check or other payment to the Department that is
3returned to the Department unpaid by the financial institution
4upon which it is drawn shall pay to the Department, in addition
5to the amount already owed to the Department, a fine of $50.
6The fines imposed by this Section are in addition to any other
7discipline provided under this Act for unregistered practice or
8practice on a nonrenewed registration. The Department shall
9notify the person that payment of fees and fines shall be paid
10to the Department by certified check or money order within 30
11calendar days of the notification. If, after the expiration of
1230 days after the date of the notification, the person has
13failed to submit the necessary remittance, the Department shall
14automatically terminate the registration or deny the
15application, without hearing. If, after termination or denial,
16the person seeks a registration, he or she shall apply to the
17Department for restoration or issuance of the registration and
18pay all fees and fines due to the Department. The Department
19may establish a fee for the processing of an application for
20restoration of a registration to pay all expenses of processing
21this application. The Secretary may waive the fines due under
22this Section in individual cases where the Secretary finds that
23the fines would be unreasonable or unnecessarily burdensome.
24    Section 65. Disciplinary actions.
25    (a) The Department may refuse to issue or renew, or may



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



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



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



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



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



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



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



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1hearing and finding are not a bar to a criminal prosecution
2brought for a violation of this Act.
3    Section 100. Hearing officer; rehearing. At the conclusion
4of the hearing, a copy of the hearing officer's report shall be
5served upon the applicant or registrant by the Department,
6either personally or as provided in this Act for the service of
7a notice of hearing. Within 20 days after service, the
8applicant or registrant may present to the Department a motion
9in writing for a rehearing, which shall specify the particular
10grounds for rehearing. The Department may respond to the motion
11for rehearing within 20 days after its service on the
12Department. If no motion for rehearing is filed, then upon the
13expiration of the time specified for filing such a motion, or
14if a motion for rehearing is denied, then upon denial, the
15Secretary may enter an order in accordance with recommendations
16of the hearing officer except as provided in Sections 105 or
17110 of this Act. If the applicant or registrant orders from the
18reporting service and pays for a transcript of the record
19within the time for filing a motion for rehearing, the 20-day
20period within which a motion may be filed shall commence upon
21the delivery of the transcript to the applicant or registrant.
22    Section 105. Secretary; rehearing. Whenever the Secretary
23believes that substantial justice has not been done in the
24revocation, suspension, or refusal to issue, restore, or renew



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



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



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



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



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



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1transaction who have a reasonable basis to believe that an
2appraiser involved in the preparation of an appraisal for the
3real estate transaction has failed to comply with the Uniform
4Standards of Professional Appraisal Practice, has violated
5this Act or its rules, or has otherwise engaged in unethical
6conduct shall report the matter to the Department. Any
7registrant, employee, or individual acting on behalf of a
8registrant, acting in good faith, and not in a willful and
9wanton manner, in complying with this Act by reporting the
10conduct to the Department shall not, as a result of such
11actions, be subject to criminal prosecution or civil damages.
12    (f) Appraisal management companies are required to be in
13compliance with the appraisal independence standards
14established under Section 129E of the federal Truth in Lending
15Act, including the requirement that fee appraisers be
16compensated at a customary and reasonable rate when the
17appraisal management company is providing services for a
18consumer credit transaction secured by the principal dwelling
19of a consumer. The Department shall formulate rules pertaining
20to customary and reasonable rates of compensation for complex
21assignments consistent with the Final Interim Rule or other
22rule of the federal Dodd-Frank Wall Street Reform and Consumer
23Protection Act. The appraisal management company must certify
24to the Department that it has policies and procedures in place
25to be in compliance, however, the Department may not adopt
26rules or policies that contradict or change the presumptions of



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



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



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



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1    (e) Nothing in this Act shall prohibit an appraisal
2management company from requesting that an appraiser:
3        (1) consider additional appropriate property
4    information, including the consideration of additional
5    comparable properties to make or support an appraisal;
6        (2) provide further detail, substantiation, or
7    explanation for the appraiser's value conclusion; or
8        (3) correct factual errors in the appraisal report.
9    Section 170. Confidentiality. All information collected by
10the Department in the course of an examination or investigation
11of a licensee or applicant, including, but not limited to, any
12complaint against a licensee filed with the Department and
13information collected to investigate any such complaint, shall
14be maintained for the confidential use of the Department and
15shall not be disclosed. The Department may not disclose the
16information to anyone other than law enforcement officials,
17other regulatory agencies that have an appropriate regulatory
18interest as determined by the Secretary, or to a party
19presenting a lawful subpoena to the Department. Information and
20documents disclosed to a federal, State, county, or local law
21enforcement agency shall not be disclosed by the agency for any
22purpose to any other agency or person. A formal complaint filed
23against a licensee by the Department or any order issued by the
24Department against a licensee or applicant shall be a public
25record, except as otherwise prohibited by law.



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1    Section 175. Illinois Administrative Procedure Act;
2application. The Illinois Administrative Procedure Act is
3expressly adopted and incorporated in this Act as if all of the
4provisions of that Act were included in this Act, except that
5the provision of paragraph (d) of Section 10-65 of the Illinois
6Administrative Procedure Act, which provides that at hearings
7the registrant has the right to show compliance with all lawful
8requirements for retention or continuation or renewal of the
9registration, is specifically excluded. For the purpose of this
10Act, the notice required under Section 10-25 of the Illinois
11Administrative Procedure Act is considered sufficient when
12mailed to the last known address of a party.
13    Section 180. Home rule. The regulation and registration of
14practice as an appraisal management company are exclusive
15powers and functions of the State. A home rule unit may not
16regulate the practice or require the registration as an
17appraisal management company. This Section is a denial and
18limitation of home rule powers and functions under subsection
19(h) of Section 6 of Article VII of the Illinois Constitution.
20    Section 999. Effective date. This Act takes effect upon
21becoming law.".