Illinois General Assembly - Full Text of HB2962
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Full Text of HB2962  101st General Assembly




State of Illinois
2019 and 2020


Introduced , by Rep. Robert Rita


30 ILCS 105/5.891 new
225 ILCS 459/55
225 ILCS 459/56 new
225 ILCS 459/57 new
225 ILCS 459/65
225 ILCS 459/50 rep.

    Amends the Appraisal Management Company Registration Act. Creates the Appraisal Management Company Recovery Fund. Provides that upon recommendation of the Board, the Secretary of Financial and Professional Regulation may charge a fee no greater than $500 to be paid at the time of submission of an original application and each renewal application to register as an appraisal management company, and directs those fee to be deposited in the Appraisal Management Company Recovery Fund (AMCRF). Provides that any money remaining in the in the AMCRF at the close of the fiscal year will not lapse, but it shall be carried forward into the succeeding fiscal year. Provides that notwithstanding any other law to the contrary, the AMCRF is not subject to sweeps, administrative charge-backs, or any other fiscal budgetary maneuver that would in any way transfer any amounts from the AMCRF into any other fund of the State. Requires in writing, the approval of the Secretary prior to any funds being paid. Provides specifications for the use of fund money which will be paid to any appraisal management companies who are owed restitution. Repeals provision that a registrant under the Act must maintain a $25,000 bond that may be used only for the recovery of expenses or the collection of fines or fees due to or levied by the Department of Financial and Professional Regulation. Makes other changes. Effective immediately.

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HB2962LRB101 07592 JRG 52639 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The State Finance Act is amended by adding
5Section 5.891 as follows:
6    (30 ILCS 105/5.891 new)
7    Sec. 5.891. The Appraisal Management Company Recovery
9    Section 10. The Appraisal Management Company Registration
10Act is amended by changing Sections 55 and 65 and by adding
11Sections 56 and 57 as follows:
12    (225 ILCS 459/55)
13    Sec. 55. Fees.
14    (a) The fees for the administration and enforcement of this
15Act, including, but not limited to, original registration fees,
16renewal fees, appraiser panel fees, appraiser management
17company national registry fees, and restoration fees, shall be
18set by the Department by rule. The fees shall not be
20    (b) All fees and other moneys collected under this Act
21shall be deposited in the Appraisal Administration Fund, except



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1as provided in subsection (d) of this Section.
2    (c) The Department shall establish by rule a process for
3calculating, collecting, and paying appraiser panel fees and,
4where applicable, appraiser management company national
5registry fees in a manner consistent with Title XI of the
6federal Financial Institutions Reform, Recovery, and
7Enforcement Act of 1989.
8    (d) The administration fee charged by the multi-state
9licensing system shall be paid directly to the multi-state
10licensing system.
11(Source: P.A. 100-604, eff. 7-13-18.)
12    (225 ILCS 459/56 new)
13    Sec. 56. Appraisal Management Company Recovery Fund.
14    (a) In addition to any other fee provided for under this
15Act, the Secretary, upon the recommendation of the Board, may
16charge a fee not to exceed $500 to be paid at the time of
17submission of an original application and each renewal
18application to register as an appraisal management company.
19These fees shall be deposited in the Appraisal Management
20Company Recovery Fund.
21    (b) Any funds remaining in the Appraisal Management Company
22Recovery Fund at the close of the fiscal year shall not lapse,
23but shall be carried forward into the succeeding fiscal year.
24    (c) Notwithstanding any other law to the contrary, the
25Appraisal Management Company Recovery Fund is not subject to



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1sweeps, administrative charge-backs, or any other fiscal or
2budgetary maneuver that would in any way transfer any amounts
3from the Appraisal Management Company Recovery Fund into any
4other fund of the State.
5    (225 ILCS 459/57 new)
6    Sec. 57. Administration of the Appraisal Management
7Company Recovery Fund.
8    (a) The Department, with the assistance of the Board,
9shall, subject to appropriation, administer the Appraisal
10Management Company Recovery Fund solely to provide restitution
11to each State-certified general real estate appraiser or
12State-certified residential real estate appraiser who has
13suffered pecuniary loss as provided in subsection (b) of this
14Section or to award the Department expenses, fines, or fees:
15        (1) as a result of an appraisal management company
16    ceasing to be registered with the Department, either
17    voluntarily or involuntarily or having been determined as
18    being bankrupt by a federal bankruptcy court;
19        (2) if an appraiser has received a final judgment from
20    a court of competent jurisdiction or a federal bankruptcy
21    court has discharged the debt in a bankruptcy proceeding;
22        (3) the unpaid appraisal fee was for an appraisal of
23    real estate located in the State of Illinois; and
24        (4) if no viable alternative for full restitution is
25    available, as determined by the Board.



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1    If a federal bankruptcy court has discharged debts for
2expenses, fines, or fees due to or levied by the Department in
3accordance with this Act, the Board shall, prior to making a
4recommendation to award any State-certified general real
5estate appraiser or State-certified residential real estate
6appraiser any funds, recommend awarding the Department
7sufficient funds from the Appraisal Management Company
8Recovery Fund to pay expenses, fines, or fees due the
9Department from the bankrupt appraisal management company. The
10award shall not exceed $25,000, except as provided in this
12    No funds shall be paid without the approval, in writing, of
13the Secretary.
14    (b) Each fund distribution for restitution shall be made
15payable to the appropriate Illinois resident appraiser as
16approved by the Secretary after consideration of the
17recommendation of the Board. The amount to be paid to the
18appraiser shall equal the actual amount of appraisal fees that
19are proven to be owed to the appraiser by the relevant
20appraisal management company and any reasonable and
21appropriate court costs associated with determining the final
22judgment in favor of the appraiser. If the amount of
23restitution to be paid to any one or more appraisers at any one
24time exceeds the balance in the Appraisal Management Company
25Recovery Fund, the Board, in making its recommendation, shall:
26        (1) distribute as much of the restitution amount as



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1    possible, which shall be deemed to satisfy in full any
2    claim the relevant appraisers have on payments from the
3    Appraisal Management Company Recovery Fund; and
4        (2) in the case of distributions to more than one
5    appraiser, provide for a pro rata distribution of the
6    available fund balance, which shall be deemed to satisfy in
7    full any claim the relevant appraisers have on payments
8    from the Appraisal Management Company Recovery Fund.
9    If, after payment of restitution is made as provided in
10this subsection (b), any funds remain, the Department shall be
11entitled to an award of any amounts remaining owed to the
12Department after payment of the initial $25,000 provided for in
13subsection (a) of this Section.
14    (c) Whenever restitution or an award is paid by the
15Appraisal Management Company Recovery Fund, the Fund shall be
16subrogated to the amount of the restitution or award.
17    (d) The Department shall adopt rules in accordance with the
18Illinois Administrative Procedure Act that impose the fees
19assessed on appraisal management companies under Section 56 of
20this Act whenever the balance of the Fund is less than $500,000
21and shall suspend imposing fees when the balance of the Fund is
22$500,000 or more.
23    (225 ILCS 459/65)
24    Sec. 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) (Blank). Failure to obtain or maintain the bond
24    required under Section 50 of this Act.
25        (18) Failure to pay appraiser panel fees or appraisal
26    management company national registry fees.



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1    (b) The Department may refuse to issue or may suspend
2without hearing as provided for in the Civil Administrative
3Code of Illinois the registration of any person who fails to
4file a return, or to pay the tax, penalty or interest shown in
5a filed return, or to pay any final assessment of the tax,
6penalty, or interest as required by any tax Act administered by
7the Illinois Department of Revenue, until such time as the
8requirements of any such tax Act are satisfied.
9    (c) An appraisal management company shall not be registered
10or included on the national registry if the company, in whole
11or in part, directly or indirectly, is owned by a person who
12has had an appraiser license or certificate refused, denied,
13canceled, surrendered in lieu of revocation, or revoked under
14the Real Estate Appraiser Licensing Act of 2002 or the rules
15adopted under that Act, or similar discipline by another state,
16the District of Columbia, a territory, a foreign nation, a
17governmental agency, or an entity authorized to impose
18discipline if at least one of the grounds for that discipline
19is the same as or the equivalent of one of the grounds for
20which a licensee may be disciplined as set forth under this
22(Source: P.A. 100-604, eff. 7-13-18; revised 10-22-18.)
23    (225 ILCS 459/50 rep.)
24    Section 15. The Appraisal Management Company Registration
25Act is amended by repealing Section 50.



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.