[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ House Amendment 001 ] | [ House Amendment 002 ] |
90_HB1214sam001
LRB9003012DPsbam04
1 AMENDMENT TO HOUSE BILL 1214
2 AMENDMENT NO. . Amend House Bill 1214, after the end
3 of Section 1, by inserting the following:
4 "Section 5. Legislative purpose. The purpose of this Act
5 is to repeal and replace Article 2 of the Real Estate License
6 Act of 1983 and, in order to protect the public, to require
7 real estate appraisers in federally related transactions to
8 obtain a real estate appraiser license. It is the intent of
9 the General Assembly that this Act be consistent with the
10 provisions of Title XI of the federal Financial Institutions
11 Reform, Recovery and Enforcement Act of 1989, Title VIII of
12 the Civil Rights Act of 1968 (Fair Housing Act), and the
13 Illinois Human Rights Act.
14 Section 10. Definitions. As used in this Act:
15 "Appraisal" means an analysis, opinion or conclusion
16 relating to the nature, quality, value or utility of
17 specified interests in, or aspects of, identified real
18 estate, for or in expectation of compensation. An appraisal
19 may be classified by purpose into either a valuation or an
20 analysis. A "valuation" is an estimate of the value of real
21 estate or real property. An "analysis" is a study of real
22 estate or real property other than estimating value.
-2- LRB9003012DPsbam04
1 "Appraisal assignment" means an engagement for which an
2 appraiser is employed or retained to act, or would be
3 perceived by third parties or the public as acting, as a
4 disinterested third party in rendering an unbiased analysis,
5 opinion, or conclusion relating to the nature, quality,
6 value, or utility of specified interests in or aspects of
7 identified real estate. "Appraisal assignment" includes
8 valuation work and analysis work.
9 "Appraiser" or "real estate appraiser" means a person who
10 performs appraisals.
11 "Commissioner" means the Commissioner of Banks and Real
12 Estate.
13 "Director" means the Director of the Real Estate
14 Appraisal Administration Division of the Office of Banks and
15 Real Estate.
16 "Federally related transaction" means any real estate
17 related financial transaction that requires a licensed or
18 certified real estate appraiser under federal law or
19 regulation.
20 "Financial institution" means a bank, savings bank,
21 savings and loan association, credit union, mortgage broker,
22 mortgage banker, licensee under the Consumer Installment Loan
23 Act or the Sales Finance Agency Act or a corporate fiduciary,
24 subsidiary, affiliate, parent company, or holding company of
25 any such licensee.
26 "Office" means the Office of Banks and Real Estate.
27 "Real estate" means an identified parcel or tract of
28 land, including improvements, if any.
29 "Real Estate Appraisal Board" or "Board" means the Real
30 Estate Appraisal Board established in this Act.
31 "Real estate related financial transaction" means any
32 transaction involving:
33 (1) the sale, lease, purchase, investment in
34 property or exchange of real property, or the financing
-3- LRB9003012DPsbam04
1 of the real property;
2 (2) the refinancing of real property or interests
3 in real property; or
4 (3) the use of real property or interests in
5 property as security for a loan or investment, including
6 but not limited to mortgage-backed securities.
7 "Real property" means the interest, benefits, and rights
8 inherent in the ownership of real estate.
9 "Report" means any communication, written or oral, of an
10 appraisal, review, or consulting service that is transmitted
11 to a client of a licensee.
12 "State Certified Residential Real Estate Appraiser" means
13 a real estate appraiser who holds (i) a license issued for
14 that title under Article 2 of the Real Estate License Act of
15 1983 before the effective date of this Act, (ii) a license
16 issued under this Act upon application for examination
17 received by the Office before the effective date of this Act
18 but issued after that date, or (iii) a license issued for
19 that title under this Act.
20 "State Certified General Real Estate Appraiser" means a
21 real estate appraiser who holds (i) a license issued for that
22 title under Article 2 of the Real Estate License Act of 1983
23 before the effective date of this Act, (ii) a license issued
24 under this Act upon application for examination received by
25 the Office before the effective date of this Act but issued
26 after that date, or (iii) a license issued for that title
27 under this Act.
28 "State Licensed Real Estate Appraiser" means a real
29 estate appraiser who holds (i) an active license issued for
30 that title under Article 2 of the Real Estate License Act of
31 1983 before the effective date of this Act, (ii) a license
32 issued under this Act upon application for examination
33 received by the Office before the effective date of this Act
34 but issued after that date, or (iii) a license issued for
-4- LRB9003012DPsbam04
1 that title under this Act.
2 "Uniform Standards of Professional Appraisal Practice" or
3 "USPAP" means the standards of professional appraisal
4 practice as promulgated by the Appraisal Standards Board of
5 the Appraisal Foundation.
6 Section 15. License requirement; title; exemptions.
7 (a) No person shall engage in the business of, act in
8 the capacity of, advertise, or assume to act as a real estate
9 appraiser, develop or report real estate appraisals, or
10 appraise real estate, in a federally related transaction,
11 without a license to practice as a real estate appraiser
12 issued by the Office under this Act. A person who violates
13 this subsection is guilty of a Class A misdemeanor.
14 (b) No person, other than a State Certified General Real
15 Estate Appraiser, State Certified Residential Real Estate
16 Appraiser, or State Licensed Real Estate Appraiser, shall
17 assume or use these titles or any other title, designation,
18 or abbreviation likely to create the impression that the
19 person is licensed by the State of Illinois as a real estate
20 appraiser.
21 Section 20. Director of Real Estate Appraisal
22 Administration.
23 (a) The Commissioner shall appoint a Director of Real
24 Estate Appraisal Administration. The person appointed as the
25 Director must hold either a current State Certified General
26 Real Estate Appraiser license or a current State Certified
27 Residential Real Estate Appraiser license and be a designated
28 member of at least one of the appraisal organizations that,
29 at the time of appointment, are represented on the Appraisal
30 Foundation. The Director shall be credited with all fees and
31 continuing education requirements that come due during the
32 term of employment.
-5- LRB9003012DPsbam04
1 (b) The Director shall:
2 (1) be the direct liaison between the Office of
3 Banks and Real Estate and the Real Estate Appraisal Board
4 and shall assist the Board in carrying out its functions
5 and duties under this Act;
6 (2) be the direct liaison between the Office of
7 Banks and Real Estate and real estate appraisers, real
8 estate appraisal organizations, and other real estate
9 related organizations;
10 (3) administer the provisions of this Act, direct
11 and supervise the Real Estate Appraisal Administration
12 Division of the Office of Banks and Real Estate, subject
13 to the approval of the Commissioner;
14 (4) prepare and circulate to licensed appraisers
15 educational and informational materials that the Office
16 of Banks and Real Estate deems necessary for guidance or
17 assistance to licensed appraisers; and
18 (5) appoint committees and hire contractors as
19 necessary to assist in the administration and enforcement
20 of this Act.
21 Section 25. Real Estate Appraisal Board.
22 (a) There is hereby established the Real Estate
23 Appraisal Board which shall consist of the following 10
24 voting members appointed by the Governor:
25 (1) Seven members shall be real estate appraisers
26 who have been licensed real estate appraisers in the
27 State of Illinois for not less than 5 years immediately
28 preceding their appointment. Of those 7 members, at least
29 4 members shall be State Certified General Real Estate
30 Appraisers or State Certified Residential Real Estate
31 Appraisers and at least 2 members shall be State
32 Certified General Real Estate Appraisers. At least 2 of
33 the 7 members appointed under this subdivision (1) shall
-6- LRB9003012DPsbam04
1 be members in good standing of an association that
2 represents the Statewide real estate industry. At least 2
3 members appointed under this subdivision (1) shall be
4 members in good standing of an Illinois not-for-profit
5 corporation incorporated after 1993 that represents and
6 promotes the interests of the Statewide appraisal
7 profession.
8 The membership of a person appointed to the Board
9 under this subdivision shall automatically terminate in
10 the event that any such member's license goes to a status
11 other than active and in good standing. Each of the 7
12 appraiser members shall be credited with all fees and
13 continuing education requirements that come due during
14 his or her appointed term and active service on the
15 Board.
16 (2) One member shall be a representative of a
17 financial institution, as evidenced by his or her
18 employment with an institution that is a member of a
19 financial institution association that represents the
20 interests of Illinois financial institutions.
21 (3) Two members shall be members of the general
22 public. The public members shall not be employed by a
23 financial institution or registered in any state as a
24 real estate appraiser.
25 (b) In meeting the appointment criteria prescribed in
26 this Section, each appointee shall be attributed as being a
27 member of the Board from only one of the 4 classifications
28 set forth in subdivisions (1), (2), and (3).
29 (c) The Director shall act as a member of the Board, but
30 shall not vote.
31 (d) Members shall be appointed to 4-year terms, except
32 that of the initial appointments, 3 members shall be
33 appointed to serve 4-year terms, 3 members to serve 3-year
34 terms, 3 members to serve 2-year terms, and 1 member to serve
-7- LRB9003012DPsbam04
1 a one-year term. Appointments to fill vacancies shall be
2 made in the same manner as original appointments and shall be
3 for the unexpired portion of the term. A member may be
4 reappointed for successive terms, but no member shall serve
5 more than 10 years during his or her lifetime. Upon
6 expiration of their terms, members of the Board shall
7 continue to hold office until the appointment of their
8 successors or until their resignation. Members of the Real
9 Estate Appraisal Committee, created under the Real Estate
10 License Act of 1983, who are serving on that Board on the day
11 preceding the effective date of this Act, shall comprise the
12 Real Estate Appraisal Board until the Governor makes the
13 initial appointments in accordance with subsection (a).
14 (e) The membership of the Board should reasonably
15 reflect representation from the various geographic and
16 demographic areas of the State.
17 (f) The Board shall meet at least quarterly to conduct
18 its business. Special meetings may be called by the
19 chairperson or by 3 voting members by providing written
20 notice of the meeting to all voting members. Written notice
21 of the time and place of each meeting shall be given to each
22 voting member of the Board at least 10 days before the
23 scheduled date of a meeting. Upon the written waiver of the
24 10-day notice requirement by all of the voting members of the
25 Board, the Board may meet after less notice.
26 (g) A majority of the duly appointed and actively
27 serving voting members of the Board shall constitute a
28 quorum. If a quorum is present, the action of a majority of
29 those voting members present shall constitute the action of
30 the Board.
31 (h) The voting members of the Board shall annually
32 elect, at the first regular meeting of the calendar year, a
33 chairperson and a vice-chairperson from among the voting
34 members to preside over meetings and a secretary who may be a
-8- LRB9003012DPsbam04
1 non-member. The member elected as chairperson shall serve as
2 chairperson for a term of one year. The vice-chairperson
3 shall preside over meetings when the chairperson is absent.
4 If the elected chairperson dies, resigns as chairperson or is
5 so physically or mentally disabled that he or she can no
6 longer serve as chairperson, the Board shall elect a new
7 chairperson from among the voting members. A member may serve
8 as chairperson more than once, but no person shall serve as
9 chairperson for more than 2 consecutive full terms.
10 (i) Each member shall receive a per diem stipend as the
11 Commissioner shall determine. Each member shall be paid
12 necessary expenses while engaged in the performance of his or
13 her Board duties. Subject to appropriation, the Commissioner
14 shall disburse per diem stipends and expenses from moneys in
15 the Appraisal Administration Fund.
16 (j) The Governor may terminate the appointment of a
17 member for cause which in the opinion of the Governor
18 reasonably justifies the termination. Cause for termination
19 shall include, but not be limited to, misconduct, incapacity,
20 neglect of duty, or missing 4 Board meetings during one
21 calendar year.
22 Section 30. Powers and duties of the Board. The Real
23 Estate Appraisal Board has the following powers and duties:
24 (a) The Board shall conduct hearings on charges against
25 licensees under this Act for violations of this Act and shall
26 report its findings on the charges to the Office of Banks and
27 Real Estate.
28 (b) The Board shall make recommendations to the Office
29 of Banks and Real Estate on rules and procedures to implement
30 the provisions and policies of this Act.
31 Section 35. Powers and duties of the Office of Banks and
32 Real Estate.
-9- LRB9003012DPsbam04
1 (a) None of the functions, powers, or duties enumerated
2 in Section 70, 90, 95, 105, or 110 shall be exercised by the
3 Office of Banks and Real Estate except upon the action and
4 report in writing by the Board.
5 (b) The Office of Banks and Real Estate, after
6 considering the recommendations of the Board, may adopt rules
7 consistent with the provisions of this Act to administer and
8 enforce this Act. The Office of Banks and Real Estate may, no
9 later than 60 days after the effective date of this Act,
10 adopt emergency rules pursuant to Section 5-45 of the
11 Illinois Administrative Procedure Act for the implementation
12 of this Act. For purposes of the Illinois Administrative
13 Procedure Act, the adoption of initial rules shall be
14 considered an emergency and necessary for the public
15 interest, safety, and welfare.
16 (c) The Office of Banks and Real Estate has the
17 following additional powers and duties:
18 (1) to receive applications for State appraiser
19 licensing, for licensing of appraisal course providers,
20 and for approval of appraisal education courses;
21 (2) to establish the administrative procedures for
22 processing applications for State licensing of
23 appraisers, appraisal course providers, and appraisal
24 education courses;
25 (3) to approve or disapprove applications and to
26 issue licenses;
27 (4) to maintain a registry of the names and
28 addresses of all licenses issued under this Act and to
29 transmit the registry, along with any National registry
30 fees that may be required, to the entity specified by,
31 and in a manner consistent with, Title XI of the federal
32 Financial Institutions Reform, Recovery and Enforcement
33 Act of 1989;
34 (5) to retain records and application materials
-10- LRB9003012DPsbam04
1 submitted to it;
2 (6) to assist the Board in any other manner the
3 Board may request.
4 (d) The Commissioner has the power to refuse to issue or
5 renew a license or to suspend, revoke, reprimand, place on
6 probation, or otherwise discipline a license issued under
7 this Act, upon recommendation of the Board pursuant to the
8 disciplinary proceedings provided for in this Act.
9 The Commissioner shall give due consideration to all
10 recommendations of the Board on questions involving the
11 administration of this Act, standards of professional
12 conduct, and the discipline and examination of candidates
13 under this Act.
14 If the Commissioner disagrees with or takes action
15 contrary to a recommendation of the Board, the Commissioner
16 shall provide the Board with a written and specific
17 explanation of the disagreement or action within 30 days of
18 the date that the written recommendation is delivered to the
19 Commissioner.
20 (e) The Office of Banks and Real Estate shall adopt or
21 amend rules in accordance with federal laws and regulations
22 concerning appraisals in federally related transactions.
23 (f) Without in any manner limiting the power of the
24 Office of Banks and Real Estate to conduct investigations,
25 the Director of Real Estate Appraisal Administration may
26 appoint one or more State Certified Residential Real Estate
27 Appraisers or State Certified General Real Estate Appraisers
28 to conduct or assist in any investigation pursuant to this
29 Act. Appraisers appointed under this subsection may receive
30 remuneration as determined by the Commissioner.
31 Section 40. Fees; Appraisal Administration Fund.
32 (a) The Office of Banks and Real Estate may provide by
33 rule for fees to be paid by applicants, licensees, and other
-11- LRB9003012DPsbam04
1 persons under this Act to cover the reasonable costs of the
2 Office of Banks and Real Estate in administering the
3 provisions of the Act.
4 (b) All fees collected under this Act shall be deposited
5 into the Appraisal Administration Fund, created in the State
6 Treasury under the Real Estate License Act of 1983. Pursuant
7 to appropriation, moneys deposited into the Fund may be used
8 by the Office of Banks and Real Estate to administer and
9 enforce this Act and for other purposes as provided by law.
10 Section 45. Licensing process.
11 (a) The Office of Banks and Real Estate, directly or
12 through its authorized designee, shall issue a license to
13 each applicant who qualifies for a license under this Act in
14 the form and size as shall be prescribed by the Office.
15 Applications for original licensure, renewal licensure, and
16 examinations as an appraiser, an appraisal education
17 provider, or for approval of an appraisal course shall be
18 made in writing to the Office of Banks and Real Estate on
19 forms prescribed by the Office.
20 When an applicant (i) has had his or her license revoked
21 or otherwise disciplined or supervised on a prior occasion,
22 (ii) is found to have committed a practice enumerated in
23 Section 90, or (iii) has been convicted of forgery,
24 embezzlement, obtaining money under false pretenses, larceny,
25 extortion, conspiracy to defraud, or a similar offense or has
26 been convicted of a felony involving moral turpitude in a
27 court of competent jurisdiction in this State or another
28 state, district, or territory of the United States or of a
29 foreign country, the Office of Banks and Real Estate shall
30 consider the prior revocation, conduct, or conviction in its
31 determination of the applicant's moral character and whether
32 to grant the applicant a license. In its consideration of the
33 prior revocation, conduct, or conviction, the Office of Banks
-12- LRB9003012DPsbam04
1 and Real Estate shall take into account the nature of the
2 conduct, any aggravating or extenuating circumstances, the
3 time elapsed since the revocation, conduct, or conviction,
4 the rehabilitation or restitution performed by the applicant,
5 and any other factors the Office of Banks and Real Estate
6 deems relevant. When an applicant has made a false statement
7 of material fact on his or her application, the false
8 statement may in itself be sufficient grounds to refuse to
9 issue or renew a license, to suspend or revoke a license, or
10 to reprimand, place on probation, or otherwise discipline a
11 licensee.
12 (b) Appropriate fees, as set by rule, shall accompany
13 all applications for original licensure, renewal licensure,
14 and examination. All fees are nonrefundable.
15 (c) At the time of filing an application for licensure,
16 an applicant shall sign a pledge to comply with this Act and
17 shall state that he or she understands the types of
18 misconduct for which disciplinary proceedings may be
19 initiated against a real estate appraiser under this Act.
20 Section 50. Examination requirement.
21 (a) A license as a real estate appraiser shall not be
22 issued to a person who has not demonstrated, through a
23 comprehensive written examination process provided for by
24 rule, competence to transact the business of a real estate
25 appraiser, within the rank for which the applicant has
26 applied.
27 (b) The Office of Banks and Real Estate, or its
28 designated testing service, shall conduct examinations for
29 appraiser licensure at times and places that the Office of
30 Banks and Real Estate determines are sufficient and
31 appropriate.
32 Section 55. Examination prerequisites. As a prerequisite
-13- LRB9003012DPsbam04
1 to taking the examination for a rank of appraiser licensure,
2 an applicant shall (i) present evidence of successful
3 completion of a 4-year course of study in a high school or
4 secondary school approved by the Illinois State Board of
5 Education or an equivalent course of study as determined by
6 an examination conducted by the Illinois State Board of
7 Education which shall be verified under oath by the applicant
8 and (ii) present evidence, satisfactory to the Office of
9 Banks and Real Estate, that the applicant has successfully
10 completed not less than 150 classroom hours in the case of an
11 applicant for a State Certified General Real Estate Appraiser
12 license, 90 classroom hours in the case of an applicant for a
13 State Certified Residential Real Estate Appraiser license, or
14 60 classroom hours in the case of an applicant for a State
15 Licensed Real Estate Appraiser license, or that amount
16 mandated under Title XI of the federal Financial Institutions
17 Reform, Recovery and Enforcement Act of 1989, whichever is
18 greater, or their equivalent as provided by rule, of courses
19 in subjects relating to real estate appraisal. In addition,
20 the applicant shall present evidence of successful completion
21 of 15 classroom hours relating to standards of professional
22 practice. The classroom hours required by this Section shall
23 be obtained from one or more of the following entities
24 approved by the Office of Banks and Real Estate:
25 (1) a college or university;
26 (2) a community college or junior college;
27 (3) a real estate appraisal or real estate related
28 organization;
29 (4) a trade association or organization that
30 consists in whole or in part of members engaged in real
31 estate appraising; or
32 (5) any other provider approved by the Office of
33 Banks and Real Estate.
34 The Office of Banks and Real Estate shall require by rule
-14- LRB9003012DPsbam04
1 completion of course work in fair housing and fair lending,
2 which shall be included within the requirements of this
3 Section.
4 Section 60. Experience requirement.
5 (a) A license as a State Certified General Real Estate
6 Appraiser or State Certified Residential Real Estate
7 Appraiser shall not be issued to a person who does not
8 possess 2 years of experience, or that amount mandated under
9 Title XI of the federal Financial Institutions Reform,
10 Recovery and Enforcement Act of 1989, whichever is greater,
11 or their equivalent as provided by rule of the Office of
12 Banks and Real Estate. For the purposes of this Section, one
13 year of experience means 1,000 hours of experience.
14 Approved experience shall include fee appraisal, staff
15 appraisal, mass appraisal in accordance with the USPAP, ad
16 valorem tax appraisal, mass ad valorem tax appraisal in
17 accordance with the USPAP, review appraisal in accordance
18 with the USPAP, highest and best use analysis, feasibility
19 analysis or study in accordance with the USPAP, real estate
20 sales and brokerage, real estate consulting in accordance
21 with the USPAP, real property management, and other related
22 experience approved by the Office of Banks and Real Estate
23 and in accordance with the USPAP. Nevertheless, the amount of
24 credit granted for this experience shall be equivalent to the
25 amount of credit that may be granted for the experience under
26 Title XI of the federal Financial Institutions Reform,
27 Recovery and Enforcement Act of 1989.
28 An applicant for a license shall provide to the Office of
29 Banks and Real Estate on forms prescribed by rule of the
30 Office a summary of the level and type of experience for
31 which the applicant is claiming credit. To obtain experience
32 credit for the preparation of a written appraisal report, the
33 applicant shall provide in the experience summary the date of
-15- LRB9003012DPsbam04
1 appraisal, the type of property, the approximate size of the
2 property (including land and improvements), and the general
3 location of the property. Nothing in this Section shall
4 require, as a condition of obtaining experience credit, that
5 a real estate appraiser disclose the identity of the client
6 for whom the appraisal was performed. The Office of Banks and
7 Real Estate may require that an applicant provide samples of
8 the applicant's work for which experience is claimed.
9 Of the total experience requirement, at least 50% must be
10 earned in one or more of the following areas: fee appraisal,
11 staff appraisal, ad valorem tax appraisal, review appraisal,
12 or real estate consulting.
13 (b) An applicant who has been engaged in appraising
14 real property for ad valorem purposes as a local assessment
15 officer, as defined in Section 1-85 of the Property Tax Code
16 or as a deputy or employee of a local assessment officer,
17 shall receive experience credit for the number of hours the
18 applicant was engaged in one or more of the following duties:
19 (1) the analysis and establishment of the value of
20 properties through the cost, income, and market sale
21 appraisal techniques;
22 (2) model development and calibration in relation
23 to mass ad valorem tax assessments; and
24 (3) the review and analysis of appraisals employing
25 cost, income, and market sale appraisal techniques.
26 The experience under this subsection (b) shall not be
27 required to be set forth in the form of the experience
28 summary as provided in subsection (a) of Section 60. All
29 persons who seek experience credit under this subsection (b)
30 shall attach his or her own affidavit as a supporting
31 document to the application form of the Office of Banks and
32 Real Estate. The applicant's affidavit shall detail the
33 experience for which credit is being claimed and the length
34 of time the applicant was engaged in these duties as a local
-16- LRB9003012DPsbam04
1 assessment officer, or deputy or employee of a local
2 assessment officer. The applicant shall attach to this
3 affidavit an Assessment Experience Certification form
4 executed by the local assessment officer or his or her
5 designee in the following form:
6 "Assessment Experience Certification.
7 Pursuant to the provisions of subsection (b) of
8 Section 60 of the Real Estate Appraiser Licensing Act, it
9 is hereby certified that (Applicant's Name) was engaged
10 in appraising (residential .....%) (nonresidential....%)
11 real estate for ad valorem tax purposes as a local
12 assessment officer, or as a deputy or employee of a local
13 assessment officer, from (date) through (date) and
14 during this time period was engaged in one or more of the
15 following duties: (1) the analysis and establishment of
16 the value of properties through the cost, income, and
17 market sale appraisal techniques; (2) model development
18 and calibration in relation to mass ad valorem tax
19 assessments; (3) the review and analysis of appraisals
20 employing cost, income, and market sale appraisal
21 techniques, and that the experience is accurately
22 described in the affidavit to which this Certificate is
23 attached and supported by assessment records available
24 under Section 14-30 of the Property Tax Code or the
25 Freedom of Information Act.
26 By:
27 _________________________
28 Local Assessment Officer"
29 Upon submission of the application, affidavit, and the
30 Assessment Experience Certification form, the Commissioner
31 shall grant the experience credit set forth in this
32 subsection. Notwithstanding other provisions of this Act, the
33 amount of experience credit granted for appraising real
34 property for ad valorem tax purposes as a local assessment
-17- LRB9003012DPsbam04
1 officer, or deputy or employee of a local assessment officer,
2 shall be equivalent to the amount of credit that may be
3 granted for that experience under the provisions of Title XI
4 of the federal Financial Institutions Reform, Recovery and
5 Enforcement Act of 1989.
6 (c) An applicant who has been licensed for 5 of the
7 previous 7 years with the Office of Banks and Real Estate as
8 a real estate broker or real estate salesperson shall receive
9 credit for appraisal experience equal to 40% of the total
10 experience requirement. This experience as a real estate
11 broker or real estate salesperson shall not be required to be
12 set forth in the form required in subsection (a). The balance
13 of the experience requirement shall be set forth in the form
14 of the experience summary as provided in subsection (a).
15 (d) Of the total experience requirement for State
16 Certified General Real Estate Appraisers, at least 50% must
17 be approved experience relating to nonresidential real
18 estate.
19 (e) Of the total experience required for State Certified
20 Residential Real Estate Appraisers, at least 50% must be
21 approved experience relating to residential real estate.
22 (f) Proof of experience shall not be required for
23 licensure as a State Licensed Real Estate Appraiser. The
24 license of a State Licensed Real Estate Appraiser who has
25 been licensed for a period of 2 years shall be renewed only
26 if the licensee meets the following experience requirements:
27 (1) Prior to the first renewal after the licensee
28 has been licensed for 2 years, the licensee possesses at
29 least 500 hours of experience. A licensee may, at the
30 time of applying for the first renewal, submit 1,000
31 hours of experience.
32 (2) Unless the licensee submitted 1,000 hours of
33 experience under the provisions of subdivision (1), prior
34 to the second renewal after the licensee has been
-18- LRB9003012DPsbam04
1 licensed for a period of 2 years, the licensee possesses
2 500 hours experience. The experience required under this
3 subdivision must be earned after the first renewal after
4 the licensee has been licensed for a period of 2 years.
5 All real estate appraisal experience granted shall be in
6 accordance with this Section.
7 (g) The Office of Banks and Real Estate may waive the
8 experience requirement of this Section for good cause. A
9 renewal applicant seeking renewal of a license without having
10 fully complied with the experience requirement of subsection
11 (a) shall file with the Office of Banks and Real Estate a
12 renewal application, the required renewal fee, an affidavit
13 setting forth the facts concerning the noncompliance, a
14 request for waiver of the experience requirement on the basis
15 of those facts, and a waiver processing fee of $25. If the
16 Office of Banks and Real Estate finds from the affidavit or
17 any other evidence submitted that good cause has been shown
18 for granting a waiver, the Office of Banks and Real Estate
19 shall waive enforcement of the experience requirement for the
20 renewal period for which the applicant has applied. For
21 purposes of this subsection, "good cause" means an inability
22 of the applicant to reasonably complete the requisite
23 appraisal experience because there has been an insufficient
24 amount of appraisal activity in the geographic area where the
25 applicant practices real estate appraising. In determining
26 whether good cause exists, the Office of Banks and Real
27 Estate may consider (i) the amount of appraisal experience
28 earned by the applicant in proportion to the total appraisal
29 activity within the geographic area where the applicant
30 practices real estate appraising and (ii) the reasonableness
31 of the geographic area the applicant defines as the area
32 where the applicant practices real estate appraising. "Good
33 cause" shall also include an inability of the applicant to
34 complete the experience requirement because of extreme
-19- LRB9003012DPsbam04
1 hardship, which includes but is not limited to an
2 incapacitating illness or full-time service in the armed
3 services in the United States of America, during a
4 substantial part of the prerenewal period.
5 Section 65. Issuance of license; renewal. The Office of
6 Banks and Real Estate shall issue a license as a real estate
7 appraiser or as a real estate appraisal education provider or
8 shall approve an appraisal course, as appropriate, to a
9 person, course provider, or courses meeting the requirements
10 for licensure under this Act. The term of a license issued
11 under this Act shall be established by rule. The expiration
12 date of the license shall appear on the license. The Office
13 of Banks and Real Estate shall establish by rule procedures
14 for the issuance of renewal notices and procedures for the
15 renewal of a license under this Act.
16 Section 70. Nonresident licensure and reciprocity.
17 (a) A nonresident may be licensed under this Act upon
18 complying with all the provisions and conditions required for
19 licensure in this State and upon payment of the appropriate
20 fees.
21 (b) A nonresident may be licensed under this Act by
22 reciprocity, upon complying with all the provisions of a
23 reciprocity agreement between this State and another state,
24 territory of the United States, or District of Columbia. Upon
25 the recommendation of the Board, the Office of Banks and Real
26 Estate shall enter into an agreement of reciprocity with an
27 appraiser regulation jurisdiction of another state, territory
28 of the United States, or the District of Columbia that, in
29 the opinion of the Board and Office of Banks and Real Estate,
30 has similar, equal, or greater qualifications and
31 requirements for licensure as an appraiser.
32 (c) Every nonresident applicant shall file an
-20- LRB9003012DPsbam04
1 irrevocable consent that suits and actions arising out of
2 appraisal work in this State may be commenced against the
3 licensed appraiser in the circuit court of a county of this
4 State in which the cause of action arose or in which the
5 plaintiff resides by the service of legal process on the
6 Director of Real Estate Appraisal Administration, the
7 irrevocable consent agreeing that service on the Director
8 shall be acknowledged in all courts to be valid and binding
9 as if personal service of process had been made upon the
10 nonresident in this State. If process is served upon the
11 Director of Real Estate Appraisal Administration, it shall be
12 the Director's duty to forward a copy of the process by
13 registered mail to the last known address of the licensed
14 appraiser against whom the process is directed.
15 (d) The Office of Banks and Real Estate shall adopt
16 rules consistent with Title XI of the Federal Financial
17 Institutions Reform, Recovery, and Enforcement Act of 1989
18 permitting nonresident licensed appraisers to practice in
19 Illinois on a temporary basis.
20 Section 75. Scope of practice.
21 (a) State Licensed Real Estate Appraisers, State
22 Certified Residential Real Estate Appraisers, and State
23 Certified General Real Estate Appraisers are not limited in
24 their scope of practice and may independently or in
25 cooperation with other appraisers provide services of
26 appraisal, review, or consulting relating to any type
27 property for which the licensee is experienced and competent.
28 All such appraisal practice must be in compliance with the
29 competency provision of the USPAP.
30 (b) The scope of practice of individual licensees may be
31 limited as a disciplinary measure through an Order of Facts
32 and Findings, a Consent Order, or a Consent to Administrative
33 Supervision issued by the Commissioner.
-21- LRB9003012DPsbam04
1 Section 80. Prohibited licensing of entities.
2 (a) The title "State Certified General Real Estate
3 Appraiser", "State Certified Residential Real Estate
4 Appraiser", or "State Licensed Real Estate Appraiser" may
5 only be used to refer to a person licensed as an appraiser
6 under this Act and may not be used following or immediately
7 in connection with the name or signature of a firm,
8 partnership, limited liability company, corporation, or
9 group, or in a manner that it might be interpreted as
10 referring to a firm, partnership, limited liability company,
11 corporation, group, or anyone other than an individual holder
12 of a license.
13 (b) No license shall be issued under this Act to a
14 corporation, partnership, limited liability company, firm, or
15 group. This subsection shall not be construed to prevent a
16 licensee from signing an appraisal report on behalf of a
17 corporation, partnership, limited liability company, firm, or
18 group practice.
19 Section 85. Continuing education requirements.
20 (a) As a prerequisite to renewal of an appraiser
21 license, a renewal applicant shall present evidence
22 satisfactory to the Office of Banks and Real Estate of having
23 completed not less than 20 hours of continuing education per
24 renewal period or that amount mandated under Title XI of the
25 Federal Financial Institutions Reform, Recovery and
26 Enforcement Act of 1989, whichever is greater, or their
27 equivalent as provided by rule, from courses approved by the
28 Office and presented by real estate appraisal education
29 providers licensed by the Office.
30 The Office of Banks and Real Estate may provide by rule
31 for the temporary waiver of continuing education requirements
32 for good cause.
33 (b) In lieu of meeting the requirements of subsection
-22- LRB9003012DPsbam04
1 (a) of this Section, an applicant for renewal of a license
2 may satisfy all or part of the requirements by presenting
3 evidence of participation, other than as a student, in
4 educational processes and programs approved pursuant to
5 subsection (a) that relate to real property appraisal theory,
6 practices, or techniques, including but not limited to
7 teaching, program development, and preparation of textbooks,
8 monographs, articles, and other instructional materials.
9 (c) The Office of Banks and Real Estate may by rule
10 require periodic testing of a licensee's understanding of
11 this Act. Continuing education credit hours may be awarded
12 for successful completion of the periodic examination.
13 (d) The Office of Banks and Real Estate shall require by
14 rule the completion of course work in fair housing and fair
15 lending, which shall be included within the requirements of
16 this Section.
17 Section 90. Grounds for disciplinary action.
18 (a) Pursuant to the action and report in writing of the
19 Board, the Office of Banks and Real Estate may suspend,
20 revoke, or refuse to issue or renew the license of an
21 appraiser or place on probation or reprimand a licensee, may
22 impose a civil penalty not to exceed $10,000 upon a licensee,
23 or the holder of a license may be placed on administrative
24 supervision or otherwise disciplined for any one or
25 combination of the following reasons:
26 (1) Procuring or attempting to procure a license by
27 knowingly making a false statement, submitting false
28 information, refusing to provide complete information in
29 response to a question in an application for licensure or
30 through any form of fraud or misrepresentation.
31 (2) Failing to meet the minimum qualifications for
32 licensure as an appraiser established by this Act.
33 (3) Paying money, other than for the fees provided
-23- LRB9003012DPsbam04
1 for by this Act, or anything of value to a member or
2 employee of the Board or Office of Banks and Real Estate
3 to procure licensure under this Act.
4 (4) A conviction of a crime, including conviction
5 based upon a plea of guilty or nolo contendere.
6 (5) An act or omission involving dishonesty, fraud,
7 or misrepresentation with the intent to substantially
8 benefit the licensee or another person or with intent to
9 substantially injure another person.
10 (6) Violation of a provision or standard for the
11 development or communication of real estate appraisals as
12 provided in Section 110 of this Act or by rule.
13 (7) Failure or refusal without good cause to
14 exercise reasonable diligence in developing and reporting
15 or communicating an appraisal.
16 (8) Negligence or incompetence in developing and
17 reporting or communicating an appraisal.
18 (9) Willfully disregarding or violating a provision
19 of this Act or its rules.
20 (10) Accepting an appraisal assignment for
21 valuation when the employment itself is contingent upon
22 the appraiser reporting a predetermined estimate,
23 analysis, or opinion or when the fee to be paid is
24 contingent upon the opinion, conclusion, or valuation
25 reached or upon the consequences resulting from the
26 appraisal assignment.
27 (11) Developing valuation conclusions based on the
28 race, color, religion, sex, national origin, ancestry,
29 age, marital status, familiar status, physical or mental
30 handicap, or unfavorable military discharge, as defined
31 under the Illinois Human Rights Act, of the prospective
32 or present owners or occupants of the area or property
33 under appraisal.
34 (12) Violation of the confidential nature of
-24- LRB9003012DPsbam04
1 government records to which the licensee gained access
2 through employment or engagement as an appraiser by a
3 government agency.
4 (13) Adjudication of liability in a civil
5 proceeding on grounds of fraud, misrepresentation, or
6 deceit. In a disciplinary proceeding based upon a finding
7 of civil liability, the appraiser shall be afforded an
8 opportunity to present mitigating and extenuating
9 circumstances, but may not collaterally attack the civil
10 adjudication.
11 (14) Adjudication of liability in a civil
12 proceeding for violation of a State or federal fair
13 housing law.
14 (15) Engaging in misleading or untruthful
15 advertising or using a trade name or insignia of
16 membership in a real estate appraisal or real estate
17 related organization of which the licensee is not a
18 member.
19 (16) Failure to fully cooperate with an Office
20 investigation by knowingly making a false statement,
21 submitting false information, or refusing to provide
22 complete information in response to a question or other
23 requests by the Office.
24 (17) Failing to include within the certificate of
25 appraisal for all written appraisal reports the
26 appraiser's license number, licensure title (State
27 Licensed Real Estate Appraiser, State Certified
28 Residential Real Estate Appraiser, or State Certified
29 General Real Estate Appraiser), and the date of
30 expiration of the license. All appraisers providing
31 significant contribution to the development and reporting
32 of an appraisal must be disclosed in the appraisal
33 report. It is a violation of this Act for an appraiser
34 to sign a report, transmittal letter, or appraisal
-25- LRB9003012DPsbam04
1 certification knowing that a person providing significant
2 contribution to the report has not been disclosed in the
3 appraisal report.
4 (b) Pursuant to the action and report in writing of the
5 Board, the Office of Banks and Real Estate may suspend,
6 revoke, place on probation, reprimand, or otherwise
7 discipline the license of an appraisal education course
8 provider or course license subordinate to the providership,
9 or may refuse to issue or renew a course license or
10 provider's license and may also impose a civil penalty not to
11 exceed $10,000 upon the holder of the course or provider's
12 license for any of the following acts or omissions:
13 (1) Procuring or attempting to procure licensure by
14 knowingly making a false statement, submitting false
15 information, refusing to provide complete information in
16 response to a question in an application for licensure or
17 through any form of fraud or misrepresentation.
18 (2) Failing to comply with covenants certified to
19 on the application for licensure as an appraisal
20 education provider, appraisal education subprovider,
21 prelicensure course, or continuing education course.
22 (3) An act or omission involving dishonesty, fraud,
23 or misrepresentation by the course provider or any
24 employees or independent contractors of the provider.
25 (4) Engaging in misleading or untruthful
26 advertising.
27 (5) Failing to retain competent instructors in
28 accordance with rules adopted under this Act.
29 (6) Failing to meet the topic or time requirements
30 for course approval as a prelicensure curriculum course
31 or a continuing education course.
32 (7) Failing to administer a licensed course using
33 the course materials, syllabus, and examinations
34 submitted as the basis of licensure.
-26- LRB9003012DPsbam04
1 (8) Failing to provide an appropriate classroom
2 environment for presentation of courses with
3 consideration for student comfort, acoustics, lighting,
4 seating, work space, and visual aid material.
5 (9) Failing to maintain student records in
6 compliance with rules adopted under this Act.
7 (10) Failing to provide certificates, transcripts,
8 or other student records to the Office or student as may
9 be required by rule.
10 (11) Failure to fully cooperate with an Office
11 investigation by knowingly making a false statement,
12 submitting false information, or refusing to provide
13 complete information in response to a question or other
14 requests by the Office.
15 (c) Notwithstanding the provisions of this Act
16 concerning the conduct of hearings and recommendations for
17 disciplinary actions, a conference panel of the Board may
18 recommend to the Office of Banks and Real Estate who shall
19 have the authority to negotiate settlement agreements with
20 State Licensed Real Estate Appraisers, State Certified
21 General Real Estate Appraisers, State Certified Residential
22 Real Estate Appraisers, and appraiser education licensees or
23 applicants, resulting in disciplinary Consent Orders. Consent
24 Orders may provide for any of the forms of discipline
25 provided in this Act. Consent Orders shall provide that they
26 were not entered into as a result of any coercion by the
27 Office of Banks and Real Estate, the Director of Real Estate
28 Appraisal Administration, or the Board. A Consent Order shall
29 be filed with the Commissioner along with the Board's
30 recommendation and accepted or rejected by the Commissioner
31 in a timely manner.
32 (d) Notwithstanding the provisions of this Act
33 concerning the conduct of hearings and recommendations for
34 disciplinary actions, a conference panel of the Board may
-27- LRB9003012DPsbam04
1 recommend to the Office of Banks and Real Estate who on the
2 Board shall have the authority to negotiate settlement
3 agreements with State Licensed Real Estate Appraisers, State
4 Certified General Real Estate Appraisers, State Certified
5 Residential Real Estate Appraisers, appraiser education
6 licensees or applicants, resulting in disciplinary Consent to
7 Administrative Supervision Orders. Consent to Administrative
8 Supervision Orders may be offered with conditions that may
9 include but shall not be limited to the respondent's
10 attendance and successful completion of appraisal courses,
11 payment of part or all of the investigation and prosecution
12 costs associated with the complaint and replacement of
13 appraiser rank with a lower rank. Consent to Administrative
14 Supervision Orders shall provide that they were not entered
15 into as a result of coercion by the Office of Banks and Real
16 Estate, the Director of Real Estate Appraisal Administration,
17 or the Board. Consent to Administrative Supervision Order
18 shall be filed with the Commissioner along with the Board's
19 recommendation and accepted or rejected by the Commissioner
20 in a timely manner. A licensee subject to a Consent to
21 Administrative Supervision Order shall be considered by the
22 Office as an active appraiser in good standing and the
23 records regarding an investigation and a Consent to
24 Administrative Supervision Order are confidential and shall
25 not be released by the Office except as mandated by law.
26 However, the complainant shall be notified that his or her
27 complaint has been resolved by administrative supervision of
28 the respondent.
29 (e) Civil penalties and costs collected under this
30 Section are to be deposited into the Appraisal Administration
31 Fund.
32 Section 95. Unlicensed practice; civil penalty.
33 (a) A person who practices, offers to practice, attempts
-28- LRB9003012DPsbam04
1 to practice, or holds himself or herself out to practice as a
2 State Licensed Real Estate Appraiser, State Certified
3 Residential Real Estate Appraiser, or State Certified General
4 Real Estate Appraiser without being licensed under this Act
5 shall, in addition to any other penalty provided by law, pay
6 a civil penalty to the Office of Banks and Real Estate in an
7 amount not to exceed $5,000 for each offense as determined by
8 the Office of Banks and Real Estate. The civil penalty shall
9 be assessed by the Office of Banks and Real Estate after a
10 hearing is held in accordance with the provisions set forth
11 in this Act regarding the provision of a hearing for the
12 discipline of a licensee.
13 (b) The Office of Banks and Real Estate has the
14 authority and power to investigate any and all unlicensed
15 appraiser activity concerning federally related transactions.
16 (c) Civil penalties imposed by the Office of Banks and
17 Real Estate shall be enforceable in the Circuit Court. The
18 Office shall petition the Court for an order to enforce
19 collection of the penalty and, if the Court finds it has
20 jurisdiction over the person against whom the penalty was
21 imposed, the Court shall issue the appropriate order. Any
22 civil penalties collected by the Court shall be forwarded to
23 the State Treasurer. In addition to or in lieu of the
24 imposition of a civil penalty, the Office may report a
25 violation and the failure or refusal to comply with the order
26 of the Office to the Attorney General and the appropriate
27 State's Attorney.
28 Section 100. Investigation; notice; hearing.
29 (a) Upon the motion of either the Office of Banks and
30 Real Estate or the Board, or upon the verified complaint in
31 writing of a person setting forth facts that, if proven,
32 would constitute grounds for suspension, revocation, or other
33 disciplinary action against a licensee or applicant for
-29- LRB9003012DPsbam04
1 licensure, the Office of Banks and Real Estate shall cause to
2 be investigated the actions of any person so accused who
3 holds or represents to hold a license or has applied for
4 licensure under this Act.
5 (b) Before taking any disciplinary action, the Director
6 of Real Estate Appraisal Administration shall notify the
7 holder of the license, in writing, of the charges that are
8 the basis of the disciplinary action and shall direct the
9 applicant or licensee to file a written answer under oath
10 within 20 days after the service of the notice to the
11 Director of Real Estate Appraisal Administration. The
12 notification shall also inform the licensee of his or her
13 right to be heard in person or by legal counsel; that the
14 hearing will be afforded not sooner than 30 days after
15 receipt of the answer to the specific charges; that failure
16 to file an answer will result in default being entered
17 against the applicant or licensee; and that the license may
18 be suspended, revoked, or placed on probationary status or
19 other disciplinary action may be taken, including limiting
20 the scope, nature, or extent of practice, as recommended by
21 the conference panel of the Board and with the concurrence of
22 the Commissioner. If the licensee or applicant fails to file
23 an answer after receiving notice, his or her license may, at
24 the discretion of the Office of Banks and Real Estate, be
25 suspended revoked, or placed on probationary status or the
26 Office of Banks and Real Estate may take whatever
27 disciplinary action it deems proper, including limiting the
28 scope, nature, or extent of the person's practice or imposing
29 a fine, without a hearing. The written notice shall be
30 considered legal service and may be served personally or sent
31 by registered or certified mail to the last known address of
32 the holder of the license.
33 (c) The Office of Banks and Real Estate has the power to
34 issue subpoenas and subpoena duces tecum to bring before it
-30- LRB9003012DPsbam04
1 any person in this State to take testimony or to require
2 production of any records relevant to an inquiry or hearing
3 by the Board in the same manner as prescribed by law in
4 judicial proceedings in the courts of this State. In a case
5 of refusal of a witness to attend or testify or to produce
6 books or papers concerning a matter upon which he or she
7 might be lawfully examined, the circuit court of the county
8 where the hearing is held, upon application of the Office of
9 Banks and Real Estate or a party to the proceeding, may
10 compel obedience by proceeding as for contempt.
11 Section 105. Hearing.
12 (a) The hearing on the charges shall be held at a time
13 and place prescribed by the Office of Banks and Real Estate
14 and in accordance with the Illinois Administrative Procedure
15 Act.
16 (b) If on the conclusion of the hearing the Board
17 determines that a real estate appraiser licensed in this
18 State or a real estate appraiser education licensee is guilty
19 of a violation of a provision of this Act, it shall prepare a
20 finding of fact and a recommendation that the appraiser be
21 reprimanded, placed on probation, or otherwise disciplined or
22 that the appraiser's license be suspended or revoked or
23 otherwise disciplined. The Commissioner shall give due
24 consideration to the recommendations of the Board and shall
25 then enter a decision and order in the matter. If the
26 Commissioner takes action contrary to the recommendation of
27 the Board, the Commissioner shall file with the Board in
28 writing the action taken and the specific reasons for his or
29 her actions that are contrary to the Board's recommendation.
30 (c) A final administrative decision of the Commissioner
31 is subject to judicial review pursuant to the provisions of
32 the Administrative Review Law.
33 (d) An appraisal license that has been revoked as a
-31- LRB9003012DPsbam04
1 result of disciplinary action shall not be reinstated for a
2 period of 2 years from the date of revocation and only then
3 after the Board has reviewed the application for
4 reinstatement and recommended that the revoked license be
5 reinstated by the Office of Banks and Real Estate. In its
6 recommendation the Board must cite the basis of the
7 recommendation including its consideration of the applicant's
8 recent continuing education attendance.
9 (e) Notwithstanding the provisions of this Act
10 concerning the conduct of hearings and recommendations for
11 disciplinary actions, the Office of Banks and Real Estate has
12 the authority to negotiate agreements with appraisers and
13 appraiser education licensees or applicants for licensure
14 which agreements shall be recorded as disciplinary Consent
15 Orders, or in lieu of publishable discipline, Consent to
16 Administrative Supervision Orders, as described in
17 subsections (b), (c), and (d) of Section 90.
18 (f) At any time after the revocation of a license, the
19 Commissioner may restore it to the accused person or course
20 provider, upon the written recommendation of the Board.
21 Section 110. Standards of practice. All licensees under
22 this Act must comply with standards of professional appraisal
23 practice adopted by the Office of Banks and Real Estate at
24 the recommendation of the Board. The Office of Banks and Real
25 Estate may adopt, as part of its own rules, the Uniform
26 Standards of Professional Appraisal Practice as published
27 from time to time by the Appraisal Foundation. The Office of
28 Banks and Real Estate shall consider federal laws and
29 regulations regarding the licensure of real estate appraisers
30 prior to adopting its own rules for the administration of
31 this Act.
32 Section 115. Retention of records. An appraiser
-32- LRB9003012DPsbam04
1 licensed under this Act shall retain for 5 years originals or
2 true copies of (i) all written contracts engaging his or her
3 services for real property appraisal work, and (ii) all
4 appraisal reports, exactly as transmitted to the client, and
5 supporting data assembled and formulated by the appraiser in
6 developing and reporting the appraisal. The 5-year period for
7 retention of records is applicable to each engagement of
8 services of the appraiser and shall commence upon the date of
9 the submittal of the appraisal to the client unless, within
10 the 5-year period, the appraiser is notified that the
11 appraisal or appraisal report is involved in litigation, in
12 which event the 5-year period for the retention of records
13 shall commence upon the date of the final disposition of the
14 litigation. This record retention requirement also applies to
15 contracts and reports concerning appraisals listed for
16 experience credit, which shall be available for Office review
17 for a period of 5 years from the date the application for
18 examination is received by the Office.
19 Section 120. Statute of limitations. No action may be
20 taken under this Act against a person licensed under this Act
21 unless the action is commenced within 5 years after the
22 occurrence of the alleged violation. A continuing violation
23 will be deemed to have occurred on the date when the
24 circumstances last existed that gave rise to the alleged
25 continuing violation.
26 Section 125. Savings provisions. This Act is the
27 successor to the provisions of Article 2 of the Real Estate
28 License Act of 1983. Any persons formerly subject to the
29 provisions of Article 2 of the Real Estate License Act of
30 1983 shall be subject to this Act. Any actions taken
31 pursuant to Article 2 of the Real Estate License Act of 1983,
32 including the issuance of licenses or certificates, the
-33- LRB9003012DPsbam04
1 imposition of disciplinary proceedings, the holding of
2 hearings, and any other administrative action taken by the
3 Commissioner or the Real Estate Appraisal Board and all
4 rights, powers, and duties conferred under Article 2 of the
5 Real Estate License Act of 1983 shall be valid under this Act
6 and shall continue in full force and effect.
7 Section 130. Severability clause. If a provision of this
8 Act or its application to a person or circumstance is held
9 invalid, the invalidity does not affect other provisions or
10 applications of this Act that can be given effect without the
11 invalid provision or application, and to this end, the
12 provisions of this Act are severable.
13 Section 225. The Regulatory Agency Sunset Act is amended
14 by changing Section 4.18 as follows:
15 (5 ILCS 80/4.18)
16 Sec. 4.18. Acts Act repealed January 1, 2008. The
17 following Acts are Act is repealed on January 1, 2008:
18 The Acupuncture Practice Act.
19 The Pharmacy Practice Act of 1987.
20 The Podiatric Medical Practice Act of 1987.
21 The Nursing Home Administrators Licensing and
22 Disciplinary Act.
23 The Physician Assistant Practice Act of 1987.
24 The Illinois Nursing Act of 1987.
25 The Marriage and Family Therapy Licensing Act.
26 The Clinical Social Work and Social Work Practice Act.
27 The Illinois Speech-Language Pathology and Audiology
28 Practice Act.
29 The Real Estate Appraiser Licensing Act.
30 (Source: P.A. 89-706, eff. 1-31-97; 90-61, eff. 12-30-97;
31 90-69, eff. 7-8-97; 90-76, eff. 7-8-97; 90-150, eff.
-34- LRB9003012DPsbam04
1 12-30-97; 90-248, eff. 1-1-98; revised 9-30-97.)
2 Section 250. The Real Estate License Act of 1983 is
3 amended by changing Sections 15 and 23 as follows:
4 (225 ILCS 455/15) (from Ch. 111, par. 5815)
5 Sec. 15. The Office of Banks and Real Estate may provide
6 by rule for fees to be paid by applicants and licensees
7 (other than applicants and licensees under Article 2 of this
8 Act) to cover the reasonable costs of the Office of Banks and
9 Real Estate in administering and enforcing the provisions of
10 this Act (other than the provisions of Article 2 of this
11 Act). The Office of Banks and Real Estate may also provide by
12 rule for general fees to cover the reasonable expenses of
13 carrying out other functions and responsibilities under this
14 Act (other than Article 2 of this Act). The rules promulgated
15 hereunder shall include, but need not be limited to the
16 following:
17 (1) The fee for an initial license for real estate
18 salespersons and real estate brokers shall include a $10 fee
19 for deposit in the Real Estate Recovery Fund as provided in
20 Section 23, and a $5 fee for deposit in the Real Estate
21 Research and Education Fund for use as provided in Section
22 16. Any moneys derived from renewal license fees that may
23 have been deposited or designated for deposit into the Real
24 Estate Recovery Fund or the Real Estate Research and
25 Education Fund pursuant to this paragraph between July 1,
26 1995 and the effective date of this amendatory Act of 1996
27 shall be transferred to or deposited into the Real Estate
28 License Administration Fund.
29 (2) The fee for an initial license for a partnership or
30 corporation shall include a $10 fee for deposit in the Real
31 Estate Recovery Fund as provided in Section 23, and a $5 fee
32 for deposit in the Real Estate Research and Education Fund
-35- LRB9003012DPsbam04
1 for use as provided in Section 16.
2 (3) The fee for an initial license for a branch office
3 shall include a $5 fee for deposit in the Real Estate
4 Research and Education Fund for use as provided in Section
5 16.
6 (Source: P.A. 88-683, eff. 1-24-95; 89-23, eff. 7-1-95;
7 89-508, eff. 7-3-96; 89-706, eff. 1-31-97.)
8 (225 ILCS 455/23) (from Ch. 111, par. 5823)
9 Sec. 23. The Office of Banks and Real Estate shall
10 maintain a Real Estate Recovery Fund from which any person
11 aggrieved by an act, representation, transaction or conduct
12 of a duly licensed broker, salesperson or unlicensed
13 employee, which is in violation of Article 1 of this Act or
14 the regulations promulgated pursuant thereto, or which
15 constitutes embezzlement of money or property or results in
16 money or property being unlawfully obtained from any person
17 by false pretenses, artifice, trickery or forgery or by
18 reason of any fraud, misrepresentation, discrimination or
19 deceit by or on the part of any such licensee or the
20 unlicensed employee of any such broker, and which results in
21 a loss of actual cash money as opposed to losses in market
22 value, may recover. Such aggrieved person may recover, by
23 order of the circuit court of the county where the violation
24 occurred, an amount of not more than $10,000 from such fund
25 for damages sustained by the act, representation,
26 transaction, or conduct, together with costs of suit and
27 attorneys' fees incurred in connection therewith of not to
28 exceed 15% of the amount of the recovery ordered paid from
29 the Fund. However, no licensed broker, or salesperson may
30 recover from the Fund unless the court finds that the person
31 suffered a loss resulting from intentional misconduct. Such
32 court order shall not include interest on the judgment.
33 The maximum liability against the Fund arising out of any
-36- LRB9003012DPsbam04
1 one act shall be as provided in this Section and the judgment
2 order shall spread the award equitably among all co-owners or
3 otherwise aggrieved persons, if any. The maximum liability
4 against the Fund arising out of the activities of any single
5 broker, any single salesperson or any single unlicensed
6 employee, since January 1, 1974, shall be $50,000.
7 Nothing in this Section shall be construed to authorize
8 recovery from the Real Estate Recovery Fund unless the loss
9 of the aggrieved person results from an act or omission of a
10 licensed broker, salesperson or unlicensed employee who was
11 at the time of the act or omission acting in such capacity or
12 was apparently acting in such capacity, and unless the
13 aggrieved person has obtained a valid judgment as provided in
14 Section 25.
15 No person aggrieved by an act, representation, or
16 transaction which is in violation of the Illinois Real Estate
17 Time-Share Act, the Land Sales Act of 1989, or the Real
18 Estate Appraiser Licensing Act Article 2 of this Act may
19 recover from the Real Estate Recovery Fund created pursuant
20 to this Section.
21 The Office of Banks and Real Estate shall from time to
22 time, upon the written direction of the Governor, transfer
23 from the Real Estate Recovery Fund any amounts the Governor
24 determines are in excess of the amounts required to meet the
25 obligations of the Fund. The amounts transferred to the
26 General Revenue Fund shall not, however, exceed $1,000,000.
27 (Source: P.A. 89-508, eff. 7-3-96.)
28 (225 ILCS 455/Art. 2 rep.)
29 Section 275. The Real Estate License Act of 1983 is
30 amended by repealing Article 2.
31 Section 999. Effective date. This Act takes effect July
32 1, 1998.".