August
12, 2016
To
the Honorable Members of
The
Illinois House of Representatives,
99th
General Assembly:
Today I return
House Bill 3333.
Current
law requires appraisal management companies – which manage real estate
appraisers – to be registered with the Department of Financial and Professional
Regulation. The law requires appraisal management companies to pay an initial
registration fee and an annual renewal fee. The law also requires those
companies to post a $25,000 surety bond to ensure payment of fines and fees
assessed by the Department.
House
Bill 3333 would impose a new $500 fee on appraisal management companies. The
fees would be deposited into a new State fund, called the Appraisal Management
Company Recovery Fund, administered by the Department of Financial and
Professional Regulation. The proceeds of the fund would be used to compensate
real estate appraisers for losses they might suffer when an appraisal
management company goes bankrupt. The bill would also repeal the current
requirement to post a surety bond.
I have several
concerns with this bill. First, the bill would add another State-imposed fee to
an industry that is already regulated and required to pay annual fees. We must
be sensitive to the burdens we are placing on Illinois businesses in this
economic climate.
Second,
the bill would place the State in the position of managing private-sector risks
for a specific industry, while eliminating surety bond protection for the
State. Proponents of the bill are seeking to protect real estate appraisers
from the potentially adverse consequences of bankruptcy. But that risk is not
unique to this industry, and the State should not be in the position of using
its regulatory power to effectively insure one part of one industry against
this risk.
Therefore,
pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I
hereby return House Bill 3333 entitled “AN ACT concerning regulation”, with the
foregoing objections, vetoed in its entirety.
Sincerely,
Bruce Rauner
GOVERNOR