Full Text of SB1817 100th General Assembly
SB1817 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB1817 Introduced 2/9/2017, by Sen. Pamela J. Althoff SYNOPSIS AS INTRODUCED: |
| 225 ILCS 458/5-5 | | 225 ILCS 458/10-10 | | 225 ILCS 459/Act rep. | |
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Repeals the Appraisal Management Company Registration Act. Makes conforming changes in the Real Estate Appraiser Licensing Act of 2002. In the Real Estate Appraiser Licensing Act of 2002, removes a provision requiring written disclosure to a borrower or loan applicant of the total compensation to the appraiser or appraisal firm when an appraisal obtained through an appraisal management company is used for loan purposes. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Real Estate Appraiser Licensing Act of 2002 | 5 | | is amended by changing Sections 5-5 and 10-10 as follows:
| 6 | | (225 ILCS 458/5-5)
| 7 | | (Section scheduled to be repealed on January 1, 2022)
| 8 | | Sec. 5-5. Necessity of license; use of title; exemptions.
| 9 | | (a) It
is unlawful for a person to (i) act, offer services, | 10 | | or advertise services
as a State certified general real estate
| 11 | | appraiser, State certified residential real estate appraiser, | 12 | | or associate real estate trainee appraiser, (ii)
develop a real | 13 | | estate appraisal,
(iii)
practice as a real estate
appraiser, or | 14 | | (iv)
advertise or hold himself or herself out to be a real | 15 | | estate
appraiser
without a license issued under this Act. A | 16 | | person who
violates this subsection is
guilty of a Class A | 17 | | misdemeanor for a first offense and a Class 4 felony for any | 18 | | subsequent offense.
| 19 | | (a-5) It is unlawful for a person , unless registered as an | 20 | | appraisal management company, to solicit clients or enter into | 21 | | an appraisal engagement with clients without either a certified | 22 | | residential real estate appraiser license or a certified | 23 | | general real estate appraiser license issued under this Act. A |
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| 1 | | person who violates this subsection is guilty of a Class A | 2 | | misdemeanor for a first offense and a Class 4 felony for any | 3 | | subsequent offense. | 4 | | (b) It
is unlawful for a person, other than a
person who | 5 | | holds a valid license issued pursuant to this
Act as a State | 6 | | certified general real estate appraiser, a
State
certified
| 7 | | residential real estate appraiser,
or an associate real estate | 8 | | trainee appraiser to use these titles or any other title, | 9 | | designation, or
abbreviation likely to create the
impression | 10 | | that the person is licensed as a real estate appraiser pursuant | 11 | | to
this Act. A person who
violates this subsection is guilty of | 12 | | a Class A misdemeanor for a first offense and a Class 4 felony | 13 | | for any subsequent offense.
| 14 | | (c)
This Act does not apply to a person who holds a valid | 15 | | license as a real estate broker or managing broker pursuant to | 16 | | the Real Estate License Act of 2000 who prepares or provides a | 17 | | broker price opinion or comparative market analysis in | 18 | | compliance with Section 10-45 of the Real Estate License Act of | 19 | | 2000. | 20 | | (d) Nothing in this Act shall preclude a State certified | 21 | | general real estate appraiser, a State certified residential | 22 | | real estate appraiser, or an associate real estate trainee | 23 | | appraiser from rendering appraisals for or on behalf of a | 24 | | partnership, association, corporation, firm, or group. | 25 | | However, no State appraisal license or certification shall be | 26 | | issued under this Act to a partnership, association, |
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| 1 | | corporation, firm, or group.
| 2 | | (e) This Act does not apply to a county assessor, township | 3 | | assessor, multi-township assessor, county supervisor of | 4 | | assessments, or any deputy or employee of any county assessor, | 5 | | township assessor, multi-township assessor, or county | 6 | | supervisor of assessments who is performing his or her | 7 | | respective duties in accordance with the provisions of the | 8 | | Property Tax Code.
| 9 | | (e-5) For the purposes of this Act, valuation waivers may | 10 | | be prepared by a licensed appraiser notwithstanding any other | 11 | | provision of this Act, and the following types of valuations | 12 | | are not appraisals and may not be represented to be appraisals, | 13 | | and a license is not required under this Act to
perform such | 14 | | valuations if the valuations are performed by (1) an employee | 15 | | of the Illinois Department of Transportation who has completed | 16 | | a minimum of 45 hours of course work in real estate appraisal, | 17 | | including the principals of real estate appraisals, appraisal | 18 | | of partial acquisitions, easement valuation, reviewing | 19 | | appraisals in eminent domain, appraisal for federal aid highway | 20 | | programs, and appraisal review for federal aid highway programs | 21 | | and has at least 2 years' experience in a field closely related | 22 | | to real estate; (2) a county engineer who is a registered | 23 | | professional engineer under the Professional Engineering | 24 | | Practice Act of 1989; (3) an employee of a municipality who has | 25 | | (i) completed a minimum of 45 hours of coursework in real | 26 | | estate appraisal, including the principals of real estate |
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| 1 | | appraisals, appraisal of partial acquisitions, easement | 2 | | valuation, reviewing appraisals in eminent domain, appraisal | 3 | | for federal aid highway programs, and appraisal review for | 4 | | federal aid highway programs and (ii) has either 2 years' | 5 | | experience in a field clearly related to real estate or has | 6 | | completed 20 hours of additional coursework that is sufficient | 7 | | for a person to complete waiver valuations as approved by the | 8 | | Federal Highway Administration; or (4) a municipal engineer who | 9 | | has completed coursework that is sufficient for his or her | 10 | | waiver valuations to be approved by the Federal Highway | 11 | | Administration and who is a registered professional engineer | 12 | | under the Professional Engineering Act of 1989, under the | 13 | | following circumstances: | 14 | | (A) a valuation waiver in an amount not to exceed | 15 | | $10,000 prepared pursuant to the federal Uniform | 16 | | Relocation Assistance and Real Property Acquisition | 17 | | Policies Act of 1970, or prepared pursuant to the federal | 18 | | Uniform Relocation Assistance and Real Property | 19 | | Acquisition for Federal and Federally-Assisted Programs | 20 | | regulations and which is performed by (1) an employee of | 21 | | the Illinois Department of Transportation and co-signed, | 22 | | with a license number affixed, by another employee of the | 23 | | Illinois Department of Transportation who is a registered | 24 | | professional engineer under the Professional Engineering | 25 | | Practice Act of 1989 or (2) an employee of a municipality | 26 | | and co-signed with a license number affixed by a county or |
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| 1 | | municipal engineer who is a registered professional | 2 | | engineer under the Professional Engineering Practice Act | 3 | | of 1989; and | 4 | | (B) a valuation waiver in an amount not to exceed | 5 | | $10,000 prepared pursuant to the federal Uniform | 6 | | Relocation Assistance and Real Property Acquisition | 7 | | Policies Act of 1970, or prepared pursuant to the federal | 8 | | Uniform Relocation Assistance and Real Property | 9 | | Acquisition for Federal and Federally-Assisted Programs | 10 | | regulations and which is performed by a county or municipal | 11 | | engineer who is employed by a county or municipality and is | 12 | | a registered professional engineer under the Professional | 13 | | Engineering Practice Act of 1989. In addition to his or her | 14 | | signature, the county or municipal engineer shall affix his | 15 | | or her license number to the valuation. | 16 | | Nothing in this subsection (e-5) shall be construed to | 17 | | allow the State of Illinois, a political subdivision thereof, | 18 | | or any public body to acquire real estate by eminent domain in | 19 | | any manner
other than provided for in the Eminent Domain Act. | 20 | | (f) A State real estate appraisal certification or license | 21 | | is not required under this Act for any of the following: | 22 | | (1) A person, partnership, association, or corporation | 23 | | that performs appraisals of property owned by that person, | 24 | | partnership, association, or corporation for the sole use | 25 | | of that person, partnership, association, or corporation. | 26 | | (2) A court-appointed commissioner who conducts an |
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| 1 | | appraisal pursuant to a judicially ordered evaluation of | 2 | | property. | 3 | | However, any person who is certified or licensed under this Act | 4 | | and who performs any of the activities set forth in this | 5 | | subsection (f) must comply with the provisions of this Act. A | 6 | | person who violates this subsection (f) is guilty of a Class A | 7 | | misdemeanor for a first offense and a Class 4 felony for any | 8 | | subsequent offense. | 9 | | (g) This Act does not apply to an employee, officer, | 10 | | director, or member of a credit or loan committee of a | 11 | | financial institution or any other person engaged by a | 12 | | financial institution when performing an evaluation of real | 13 | | property for the sole use of the financial institution in a | 14 | | transaction for which the financial institution would not be | 15 | | required to use the services of a State licensed or State | 16 | | certified appraiser pursuant to federal regulations adopted | 17 | | under Title XI of the federal Financial Institutions Reform, | 18 | | Recovery, and Enforcement Act of 1989, nor does this Act apply | 19 | | to the procurement of an automated valuation model. | 20 | | "Automated valuation model" means an automated system that | 21 | | is used to derive a property value through the use of publicly | 22 | | available property records and various analytic methodologies | 23 | | such as comparable sales prices, home characteristics, and | 24 | | historical home price appreciations.
| 25 | | (h) This Act does not apply to any corporation, limited | 26 | | liability company, partnership, sole proprietorship, |
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| 1 | | subsidiary, unit, or other business entity that directly or | 2 | | indirectly performs the following appraisal management | 3 | | services: (1) administers networks of independent contractors | 4 | | or employee appraisers to perform real estate appraisal | 5 | | assignments for clients; (2) receives requests for real estate | 6 | | appraisal services from clients and, for a fee paid by the | 7 | | client, enters into an agreement with one or more independent | 8 | | appraisers to perform the real estate appraisal services | 9 | | contained in the request; or (3) otherwise serves as a | 10 | | third-party broker of appraisal management services between | 11 | | clients and appraisers. | 12 | | (Source: P.A. 98-444, eff. 8-16-13; 98-933, eff. 1-1-15; | 13 | | 98-1109, eff. 1-1-15; 99-78, eff. 7-20-15.)
| 14 | | (225 ILCS 458/10-10)
| 15 | | (Section scheduled to be repealed on January 1, 2022)
| 16 | | Sec. 10-10. Standards of practice. All persons licensed | 17 | | under this Act
must comply with standards
of professional | 18 | | appraisal practice adopted by the Department. The Department
| 19 | | must adopt, as part
of
its rules, the Uniform
Standards of | 20 | | Professional Appraisal Practice (USPAP) as published from time | 21 | | to time by
the Appraisal Standards
Board of the Appraisal | 22 | | Foundation. The Department
shall consider federal laws and
| 23 | | regulations regarding the
licensure of real estate appraisers | 24 | | prior to adopting its rules for the
administration of this Act. | 25 | | When an appraisal obtained through an appraisal management |
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| 1 | | company is used for loan purposes, the borrower or loan | 2 | | applicant shall be provided with a written disclosure of the | 3 | | total compensation to the appraiser or appraisal firm within | 4 | | the certification of the appraisal report and it shall not be | 5 | | redacted or otherwise obscured.
| 6 | | (Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
| 7 | | (225 ILCS 459/Act rep.) | 8 | | Section 10. The Appraisal Management Company Registration | 9 | | Act is repealed.
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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