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91_HB1805eng HB1805 Engrossed LRB9102826ACtm 1 AN ACT to create the Auction License Act, amending named 2 Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 ARTICLE 5. GENERAL PROVISIONS 6 Section 5-1. Short title. This Act may be cited as the 7 Auction License Act. 8 Section 5-5. Legislative intent. The General Assembly 9 finds that Illinois does not have the ability, without 10 legislation, to enter into reciprocal agreements with other 11 states to allow residents of Illinois to practice 12 auctioneering in other states. This body further finds that, 13 without legislation, Illinois does not have the ability to 14 evaluate the competency of persons engaged in the auction 15 business or to regulate this business for the protection of 16 the public. Therefore, it is the purpose of this Act to 17 license and regulate auctioneers. 18 Section 5-10. Definitions, as used in this Act: 19 "Advertisement" means any written, oral, or electronic 20 communication that contains a promotion, inducement, or offer 21 to conduct an auction or offer to provide an auction service, 22 including but not limited to brochures, pamphlets, radio and 23 television scripts, telephone and direct mail solicitations, 24 electronic media, and other means of promotion. 25 "Advisory Board" means the Auctioneer Advisory Board. 26 "Associate auctioneer" means a person who conducts an 27 auction, but who is under the direct supervision of, and is 28 sponsored by, a licensed auctioneer or auction firm. 29 "Auction" means the sale or lease of property, real or HB1805 Engrossed -2- LRB9102826ACtm 1 personal, by means of exchanges between an auctioneer or 2 associate auctioneer and prospective purchasers or lessees, 3 which consists of a series of invitations for offers made by 4 the auctioneer or associate auctioneer and offers by 5 prospective purchasers or lessees for the purpose of 6 obtaining an acceptable offer for the sale or lease of the 7 property. 8 "Auction contract" means a written agreement between an 9 auctioneer, associate auctioneer, or an auction firm and a 10 seller or sellers. 11 "Auction firm" means any corporation, partnership, or 12 limited liability company that acts as an auctioneer and 13 provides an auction service. 14 "Auction school" means any educational institution, 15 public or private, which offers a curriculum of auctioneer 16 education and training approved by the Office of Banks and 17 Real Estate. 18 "Auction service" means the service of arranging, 19 managing, advertising, or conducting auctions. 20 "Auctioneer" means a person or entity who, for another, 21 for a fee, compensation, commission, or any other valuable 22 consideration at auction or with the intention or expectation 23 of receiving valuable consideration by the means of or 24 process of an auction or sale at auction or providing an 25 auction service, offers, negotiates, or attempts to negotiate 26 an auction contract, sale, purchase, or exchange of goods, 27 chattels, merchandise, personal property, real property, or 28 any commodity that may be lawfully kept or offered for sale 29 by or at auction. 30 "Commissioner" means the Commissioner of the Office of 31 Banks and Real Estate or his or her designee. 32 "Director" means the Director of Auction Regulation. 33 "Goods" means chattels, movable goods, merchandise, or 34 personal property or commodities of any form or type that may HB1805 Engrossed -3- LRB9102826ACtm 1 be lawfully kept or offered for sale. 2 "Licensee" means any person licensed under this Act. 3 "Managing auctioneer" means any person licensed as an 4 auctioneer who manages and supervises licensees sponsored by 5 an auction firm or auctioneer. 6 "OBRE" means the Office of Banks and Real Estate. 7 "Person" means an individual, association, partnership, 8 corporation, limited liability company or the officers, 9 directors, or employees of the same. 10 "Pre-renewal period" means the 24 months prior to the 11 expiration date of a license issued under this Act. 12 "Sponsoring auctioneer" means the auctioneer or auction 13 firm who has issued a sponsor card to a licensed associate 14 auctioneer or auctioneer. 15 "Sponsor card" shall mean the temporary permit issued by 16 the sponsoring auctioneer certifying that the licensee named 17 thereon is employed by or associated with the sponsoring 18 auctioneer and the sponsoring auctioneer shall be responsible 19 for the actions of the sponsored licensee. 20 ARTICLE 10. LICENSING PROVISIONS 21 Section 10-1. Necessity of license; exemptions. (a) It 22 is unlawful for any person, corporation, limited liability 23 company, partnership, or other entity to conduct an auction, 24 provide an auction service, hold himself or herself out as an 25 auctioneer, or advertise his or her services as an auctioneer 26 in the State of Illinois without a license issued by OBRE 27 under this Act, except at: 28 (1) an auction conducted solely by or for a 29 not-for-profit organization for charitable purposes; 30 (2) an auction conducted by the owner of the 31 property, real or personal; and 32 (3) an auction for the sale or lease of real HB1805 Engrossed -4- LRB9102826ACtm 1 property conducted by a licensee under the Real Estate 2 License Act, or its successor Acts, in accordance with 3 the terms of that Act. 4 (b) Nothing in this Act shall be construed to apply to a 5 vehicle dealer licensed by the Secretary of State of 6 Illinois, or to any employee of the licensee, who is a 7 resident of the State of Illinois, while the employee is 8 acting in the regular scope of his or her employment for the 9 licensee, or to sales by or through the licensee. 10 Section 10-5. Requirements for auctioneer license; 11 application. Every person who desires to obtain an 12 auctioneer license under this Act shall: 13 (1) apply to OBRE on forms provided by OBRE 14 accompanied by the required fee; 15 (2) be at least 18 years of age; 16 (3) have attained a high school diploma or 17 successfully completed an equivalent course of study 18 determined by an examination conducted by the Illinois 19 State Board of Education; 20 (4) personally take and pass a written examination 21 authorized by OBRE to prove competence, including but not 22 limited to general knowledge of Illinois and federal laws 23 pertaining to personal property contracts, auctions, real 24 property, relevant provisions of Article 4 of the Uniform 25 Commercial Code, ethics, and other topics relating to the 26 auction business; and 27 (5) submit to OBRE a properly completed 45-Day 28 Permit Sponsor Card on forms provided by OBRE. 29 Section 10-15. Requirements for associate auctioneer 30 license; application. Every person who desires to obtain an 31 associate auctioneer license under this Act shall: 32 (1) apply to OBRE on forms provided by OBRE HB1805 Engrossed -5- LRB9102826ACtm 1 accompanied by the required fee; 2 (2) be at least 18 years of age; 3 (3) have attained a high school diploma or 4 successfully completed an equivalent course of study 5 determined by an examination conducted by the Illinois 6 State Board of Education; 7 (4) personally take and pass a written examination 8 authorized by OBRE to prove competence, including but not 9 limited to general knowledge of Illinois and federal laws 10 pertaining to personal property contracts, auctions, real 11 property, relevant provisions of Article 4 of the Uniform 12 Commercial Code, ethics, and other topics relating to the 13 auction business; and 14 (5) submit to OBRE a properly completed 45-day 15 permit sponsor card on forms provided by OBRE. 16 Section 10-20. Requirements for auction firm license; 17 application. Any corporation, limited liability company, or 18 partnership who desires to obtain an auction firm license 19 shall: 20 (1) apply to OBRE on forms provided by OBRE 21 accompanied by the required fee; and 22 (2) provide evidence to OBRE that the auction firm 23 has a properly licensed managing auctioneer. 24 Section 10-25. Practice prior to this Act. A person who 25 has actively and lawfully practiced as an auctioneer in the 26 State of Illinois prior to the effective date of this Act may 27 obtain an auctioneer or associate auctioneer license without 28 examination provided he or she: 29 (1) is a resident of the State of Illinois; 30 (2) applies to OBRE and pays the required fees 31 within 6 months after the effective date of this Act; 32 (3) verifies that he or she has practiced as an HB1805 Engrossed -6- LRB9102826ACtm 1 auctioneer for a period of at least 2 years prior to the 2 effective date of this Act; and 3 (4) verifies that he or she has conducted a minimum 4 of 5 auctions of real or personal property within the 2 5 years prior to the effective date of this Act. 6 Section 10-30. Expiration, renewal, and continuing 7 education. 8 (a) A license issued under this Act shall expire every 2 9 years beginning on September 30, 2001. The OBRE shall issue 10 a renewal license without examination to an applicant upon 11 submission of a completed renewal application and payment of 12 the required fee. 13 (b) The OBRE shall develop a program for continuing 14 education as established in Article 25 of this Act. No 15 auctioneer or associate auctioneer shall receive a renewal 16 license without completing 12 hours of approved continuing 17 education course work during the pre-renewal period prior to 18 the expiration date of the license from continuing education 19 schools that are approved by the OBRE, as established in 20 Article 25 of this Act. The applicant shall verify on the 21 application that he or she: 22 (1) has complied with the continuing education 23 requirements; or 24 (2) is exempt from the continuing education 25 requirements because it is his or her first renewal and 26 he or she was initially licensed as an auctioneer or 27 associate auctioneer during the pre-renewal period prior 28 to the expiration date. 29 (c) A renewal applicant may request a waiver of the 30 continuing education requirements under subsection (d) of 31 this Section, but shall not practice as an auctioneer or 32 associate auctioneer until such waiver is granted and a 33 renewal license is issued. HB1805 Engrossed -7- LRB9102826ACtm 1 (d) The Commissioner, with the recommendation of the 2 Advisory Board, may grant a renewal applicant a waiver from 3 all or part of the continuing education requirements for the 4 pre-renewal period if the applicant was not able to fulfill 5 the requirements as a result of the following conditions: 6 (1) Service in the armed forces of the United 7 States during a substantial part of the pre-renewal 8 period. 9 (2) Service as an elected State or federal 10 official. 11 (3) Service as a full-time employee of the OBRE. 12 (4) Other extreme circumstances as recommended by 13 the Advisory Board. 14 Section 10-35. Completed 45-day permit sponsor card; 15 termination by sponsoring auctioneer; inoperative status. 16 (a) No auctioneer or associate auctioneer shall conduct 17 an auction or provide an auction service without being 18 properly sponsored by a licensed auctioneer or auction firm. 19 (b) The sponsoring auctioneer or sponsoring auction firm 20 shall prepare upon forms provided by the OBRE and deliver to 21 each auctioneer or associate auctioneer employed by or 22 associated with the sponsoring auctioneer or sponsoring 23 auction firm a properly completed duplicate 45-day permit 24 sponsor card certifying that the person whose name appears 25 thereon is in fact employed by or associated with said 26 sponsoring auctioneer or sponsoring auction firm. The 27 sponsoring auctioneer or sponsoring auction firm shall send 28 the original 45-day permit sponsor card, along with a valid 29 terminated license or other authorization as provided by rule 30 and the appropriate fee, to the OBRE within 24 hours after 31 the issuance of the sponsor card. It is a violation of this 32 Act for any sponsoring auctioneer or sponsoring auction firm 33 to issue a sponsor card to any auctioneer, associate HB1805 Engrossed -8- LRB9102826ACtm 1 auctioneer, or applicant, unless the auctioneer, associate 2 auctioneer, or applicant presents in hand a valid terminated 3 license or other authorization, as provided by rule. 4 (c) An auctioneer may be self-sponsored or may be 5 sponsored by another licensed auctioneer or auction firm. 6 (d) An associate auctioneer must be sponsored by a 7 licensed auctioneer or auction firm. 8 (e) When an auctioneer or associate auctioneer 9 terminates his or her employment or association with a 10 sponsoring auctioneer or sponsoring auction firm or the 11 employment or association is terminated by the sponsoring 12 auctioneer or sponsoring auction firm, the terminated 13 licensee shall obtain from that sponsoring auctioneer or 14 sponsoring auction firm his or her license endorsed by the 15 sponsoring auctioneer or sponsoring auction firm indicating 16 the termination. The terminating sponsoring auctioneer or 17 sponsoring auction firm shall send a copy of the terminated 18 license within 5 days after the termination to the OBRE or 19 shall notify the OBRE in writing of the termination and 20 explain why a copy of the terminated license was not 21 surrendered. 22 (f) The license of any auctioneer or associate 23 auctioneer whose association with a sponsoring auctioneer or 24 sponsoring auction firm has terminated shall automatically 25 become inoperative immediately upon such termination, unless 26 the terminated licensee accepts employment or becomes 27 associated with a new sponsoring auctioneer or sponsoring 28 auction firm pursuant to subsection (g) of this Section. An 29 inoperative licensee under this Act shall not conduct an 30 auction or provide auction services while the license is in 31 inoperative status. 32 (g) When a terminated or inoperative auctioneer or 33 associate auctioneer accepts employment or becomes associated 34 with a new sponsoring auctioneer or sponsoring auction firm, HB1805 Engrossed -9- LRB9102826ACtm 1 the new sponsoring auctioneer or sponsoring auction firm 2 shall send to the OBRE a properly completed 45-day permit 3 sponsor card, the terminated license, and the appropriate 4 fee. 5 Section 10-40. Restoration. 6 (a) A licensee whose license has lapsed or expired shall 7 have 2 years from the expiration date to restore his or her 8 license without examination. The expired licensee shall make 9 application to the OBRE on forms provided by the OBRE, 10 including a properly completed 45-day permit sponsor card, 11 provide evidence of successful completion of 12 hours of 12 approved continuing education during the period of time the 13 license had lapsed, and pay all lapsed fees and penalties as 14 established by administrative rule. 15 (b) Notwithstanding any other provisions of this Act to 16 the contrary, any licensee whose license under this Act has 17 expired is eligible to restore such license without paying 18 any lapsed fees and penalties provided that the license 19 expired while the licensee was: 20 (1) on active duty with the United States Army, 21 United State Marine Corps, United States Navy, United 22 States Air Force, United States Coast Guard, the State 23 Militia called into service or training; 24 (2) engaged in training or education under the 25 supervision of the United States prior to induction into 26 military service; or 27 (3) serving as an employee of the OBRE, while the 28 employee was required to surrender his or her license due 29 to a possible conflict of interest. 30 A licensee shall be eligible to restore a license under 31 the provisions of this subsection for a period of 2 years 32 following the termination of the service, education, or 33 training by providing a properly completed application and HB1805 Engrossed -10- LRB9102826ACtm 1 45-day permit sponsor card, provided that the termination 2 was by other than dishonorable discharge and provided that 3 the licensee furnishes the OBRE with an affidavit specifying 4 that the licensee has been so engaged. 5 (c) At any time after the suspension, revocation, 6 placement on probationary status, or other disciplinary 7 action taken under this Act with reference to any license, 8 the OBRE may restore the license to the licensee without 9 examination upon the order of the Commissioner, if the 10 licensee submits a properly completed application and 45-day 11 permit sponsor card, pays appropriate fees, and otherwise 12 complies with the conditions of the order. 13 Section 10-45. Nonresident auctioneer reciprocity. 14 (a) A person holding a license to engage in auctions 15 issued to him or her by the proper authority of a state, 16 territory, or possession of the United States of America or 17 the District of Columbia that has licensing requirements 18 equal to or substantially equivalent to the requirements of 19 this State and that otherwise meets the requirements of this 20 Act may obtain a license under this Act without examination, 21 provided: 22 (1) that the OBRE has entered into a valid 23 reciprocal agreement with the proper authority of the 24 state, territory, or possession of the United States of 25 America or the District of Columbia from which the 26 nonresident applicant has a valid license; 27 (2) that the applicant provides the OBRE with a 28 certificate of good standing from the applicant's 29 resident state; 30 (3) that the applicant completes and submits an 31 application as provided by the OBRE; and 32 (4) that the applicant pays all applicable fees 33 required under this Act. HB1805 Engrossed -11- LRB9102826ACtm 1 (b) A nonresident applicant shall file an irrevocable 2 consent with the OBRE that actions may be commenced against 3 the applicant or nonresident licensee in a court of competent 4 jurisdiction in this State by the service of summons, 5 process, or other pleading authorized by the law upon the 6 Commissioner. The consent shall stipulate and agree that 7 service of the process, summons, or pleading upon the 8 Commissioner shall be taken and held in all courts to be 9 valid and binding as if actual service had been made upon the 10 applicant in Illinois. If a summons, process, or other 11 pleading is served upon the Commissioner, it shall be by 12 duplicate copies, one of which shall be retained by the OBRE 13 and the other immediately forwarded by certified or 14 registered mail to the last known business address of the 15 applicant or nonresident licensee against whom the summons, 16 process, or other pleading may be directed. 17 Section 10-50. Fees. The OBRE shall provide by 18 administrative rule for fees to be paid by applicants, 19 licensees, and schools to cover the reasonable costs of the 20 OBRE in administering and enforcing the provisions of this 21 Act. The OBRE shall provide by administrative rule for fees 22 to be collected from licensees and applicants to cover the 23 statutory requirements for funding the Auctioneer Recovery 24 Fund. The OBRE may also provide by administrative rule for 25 general fees to cover the reasonable expenses of carrying out 26 other functions and responsibilities under this Act. 27 ARTICLE 15. BUSINESS PRACTICES PROVISIONS 28 Section 15-5. Representations. An auctioneer, associate 29 auctioneer, or auction firm or the sponsored licensees, 30 agents, or employees of an auctioneer or auction firm, 31 conducting an auction or providing an auction service shall HB1805 Engrossed -12- LRB9102826ACtm 1 not: 2 (1) misrepresent a fact material to a purchaser's 3 decision to buy at or by auction; 4 (2) predict specific or immediate increases in the 5 value of any item offered for sale at auction; or 6 (3) materially misrepresent the qualities or 7 characteristics of any item offered for sale at auction. 8 Section 15-10. Auction contract. Any auctioneer, 9 associate auctioneer, or auction firm shall not conduct an 10 auction or provide an auction service, unless the auctioneer, 11 associate auctioneer, or auction firm enters into a written 12 auction contract with the seller of any property at auction 13 prior to the date of the auction. The agreement shall be 14 signed by the auctioneer, associate auctioneer, or auction 15 firm conducting an auction or providing an auction service 16 and the seller or sellers, or the legal agent of the seller 17 or sellers of the property to be offered at or by auction, 18 and shall include, but not be limited to the following 19 disclosures: 20 (1) Licensees shall disclose: 21 (A) the name, license number, business 22 address, and phone number of the auctioneer, 23 associate auctioneer, or auction firm conducting an 24 auction or providing an auction service; 25 (B) the fee to be paid to the auctioneer, 26 associate auctioneer, or auction firm for conducting 27 an auction or providing an auction service; and 28 (C) an estimate of the advertising costs that 29 shall be paid by the seller or sellers of property 30 at auction and a disclosure that, if the actual 31 advertising costs exceeds 120% of the estimated 32 advertising cost, the auctioneer, associate 33 auctioneer, or auction firm shall pay the HB1805 Engrossed -13- LRB9102826ACtm 1 advertising costs that exceed 120% of the estimated 2 advertising costs or shall have the seller or 3 sellers agree in writing to pay for the actual 4 advertising costs in excess of 120% of the estimated 5 advertising costs. 6 (2) Sellers shall disclose: 7 (A) the name, address, and phone number of the 8 seller or sellers or the legal agent of the seller 9 or sellers of property to be sold at auction; and 10 (B) any mortgage, lien, or encumbrance of 11 which the seller has knowledge on any property or 12 goods to be sold or leased at or by auction. 13 Section 15-15. Supervisory duties. The sponsoring 14 auctioneer, auction firm, and managing auctioneer shall have 15 the duty and responsibility to supervise, manage, and control 16 any sponsored licensee, agent, or employee while conducting 17 an auction or providing an auction service. Any violation of 18 this Act by a sponsored licensee, agent, or employee of a 19 sponsoring auctioneer, auction firm, or managing auctioneer 20 shall be deemed to be a violation by the sponsoring 21 auctioneer, auction firm, or managing auctioneer as well as 22 by the sponsored licensee, agent, or employee. 23 Section 15-20. Associate auctioneer. An associate 24 auctioneer shall not conduct an auction or provide an auction 25 service without the proper supervision of a licensed 26 auctioneer or receive compensation for conducting an auction 27 other than from a licensed auctioneer or auction firm. An 28 associate auctioneer shall not work for or receive 29 compensation from another auctioneer or an auction firm other 30 than his or her sponsoring auctioneer or sponsoring auction 31 firm without the written consent of his or her sponsoring 32 auctioneer or sponsoring auction firm. The sponsoring HB1805 Engrossed -14- LRB9102826ACtm 1 auctioneer or sponsoring auction firm and managing auctioneer 2 shall be responsible for the actions of any sponsored 3 associate auctioneer while conducting an auction or providing 4 an auction service. 5 Section 15-25. Auction firm. No corporation, limited 6 liability company, or partnership shall be licensed without 7 being managed by a licensed auctioneer. The managing 8 auctioneer of any auction firm shall be responsible for the 9 actions of all licensed and unlicensed employees, agents, and 10 representatives of said auction firm while the firm is 11 conducting an auction or providing an auction service. 12 ARTICLE 20. DISCIPLINARY PROVISIONS 13 Section 20-5. Unlicensed practice; civil penalty. 14 (a) Any person who practices, offers to practice, 15 attempts to practice, or holds oneself out to practice as an 16 auctioneer, an associate auctioneer, an auction firm, or any 17 other licensee under this Act without being licensed under 18 this Act shall, in addition to any other penalty provided by 19 law, pay a civil fine to OBRE in an amount not to exceed 20 $10,000 for each offense as determined by the OBRE. The 21 civil fine shall be assessed by the OBRE after a hearing is 22 held in accordance with the provisions set forth in this Act 23 regarding a hearing for the discipline of a license. 24 (b) The OBRE has the authority and power to investigate 25 any and all unlicensed activity pursuant to this Act. 26 (c) The civil fine shall be paid within 60 days after 27 the effective date of the order imposing the civil fine. The 28 order shall constitute a judgement and may be filed and 29 execution had thereon in the same manner from any court of 30 record. 31 (d) Conducting an auction or providing an auction HB1805 Engrossed -15- LRB9102826ACtm 1 service in Illinois without holding a valid and current 2 license under this Act is declared to be adverse to the 3 public welfare, to constitute a public nuisance, and to cause 4 irreparable harm to the public welfare. The Commissioner, 5 the Attorney General, the State's Attorney of any county in 6 the State, or any other person may maintain an action in the 7 name of the People of the State of Illinois and may apply for 8 injunctive relief in any circuit court to enjoin the person 9 or entity from engaging in such practice. 10 Upon the filing of a verified petition in a circuit 11 court, the court, if satisfied by affidavit or otherwise that 12 the person or entity has been engaged in the practice of 13 auctioning without a valid and current license, may enter a 14 temporary restraining order without notice or bond enjoining 15 the defendant from further practice. Only the showing of 16 non-licensure, by affidavit or otherwise, is necessary in 17 order for a temporary injunction to be issued. A copy of the 18 verified complaint shall be served upon the defendant and the 19 proceedings shall thereafter be conducted as in other civil 20 cases except as modified by this Section. If it is 21 established that the defendant has been or is engaged in 22 unlawful practice, the court may enter an order or judgment 23 perpetually enjoining the defendant from further practice. 24 In all proceedings hereunder, the court, in its discretion, 25 may apportion the costs among the parties interested in the 26 action, including cost of filing the complaint, service of 27 process, witness fees and expenses, court reporter charges, 28 and reasonable attorneys' fees. In case of violation of any 29 injunctive order entered under the provisions of this 30 Section, the court may summarily try and punish the offender 31 for contempt of court. These injunction proceedings shall be 32 in addition to, and not in lieu of, all penalties and other 33 remedies provided in this Act. HB1805 Engrossed -16- LRB9102826ACtm 1 Section 20-10. Violations. The commission of a single 2 act prohibited by this Act or prohibited by the rules 3 promulgated under this Act or a violation of a disciplinary 4 order issued under this Act constitutes a violation of this 5 Act. 6 Section 20-15. Disciplinary actions; grounds. The OBRE 7 may refuse to issue or renew a license, may place on 8 probation or administrative supervision, suspend, or revoke 9 any license or may reprimand or otherwise discipline or 10 impose a civil fine not to exceed $10,000 upon any licensee 11 hereunder for any one or any combination of the following 12 causes: 13 (1) False or fraudulent representation or material 14 misstatement in furnishing information to the OBRE in 15 obtaining or seeking to obtain a license. 16 (2) Violation of any provision of this Act or the 17 rules promulgated pursuant to this Act. 18 (3) Conviction of any crime, an essential element 19 of which is dishonesty or fraud, or larceny, 20 embezzlement, or obtaining money, property, or credit by 21 false pretenses or by means of a confidence game, 22 conviction in this or another state of a crime that is a 23 felony under the laws of this State, or conviction of a 24 felony in a federal court. 25 (4) Being adjudged to be a person under legal 26 disability or subject to involuntary admission or to meet 27 the standard for judicial admission as provided in the 28 Mental Health and Developmental Disabilities Code. 29 (5) Discipline of a licensee by another state, the 30 District of Columbia, a territory of the United States, a 31 foreign nation, a governmental agency, or any other 32 entity authorized to impose discipline if at least one of 33 the grounds for that discipline is the same as or the HB1805 Engrossed -17- LRB9102826ACtm 1 equivalent to one of the grounds for discipline set forth 2 in this Act or for failing to report to the OBRE, within 3 30 days, any adverse final action taken against the 4 licensee by any other licensing jurisdiction, government 5 agency, law enforcement agency, or court, or liability 6 for conduct that would constitute grounds for action as 7 set forth in this Act. 8 (6) Engaging in the practice of auctioneering, 9 conducting an auction, or providing an auction service 10 without a license or after the license was expired, 11 revoked, suspended, or terminated or while the license 12 was inoperative. 13 (7) Attempting to subvert or cheat on the 14 auctioneer exam or any continuing education exam, or 15 aiding or abetting another to do the same. 16 (8) Directly or indirectly giving to or receiving 17 from a person, firm, corporation, partnership, or 18 association a fee, commission, rebate, or other form of 19 compensation for professional service not actually or 20 personally rendered. 21 (9) Making any substantial misrepresentation or 22 untruthful advertising. 23 (10) Making any false promises of a character 24 likely to influence, persuade, or induce. 25 (11) Pursuing a continued and flagrant course of 26 misrepresentation or the making of false promises through 27 a licensee, agent, employee, advertising, or otherwise. 28 (12) Any misleading or untruthful advertising, or 29 using any trade name or insignia of membership in any 30 auctioneer association or organization of which the 31 licensee is not a member. 32 (13) Commingling funds of others with his or her 33 own funds or failing to keep the funds of others in an 34 escrow or trustee account. HB1805 Engrossed -18- LRB9102826ACtm 1 (14) Failure to account for, remit, or return any 2 moneys, property, or documents coming into his or her 3 possession that belong to others, acquired through the 4 practice of auctioneering, conducting an auction, or 5 providing an auction service within 30 days of the 6 written request from the owner of said moneys, property, 7 or documents. 8 (15) Failure to maintain and deposit into a special 9 account, separate and apart from any personal or other 10 business accounts, all moneys belonging to others 11 entrusted to a licensee while acting as an auctioneer, 12 associate auctioneer, auction firm, or as a temporary 13 custodian of the funds of others. 14 (16) Failure to make available to OBRE personnel 15 during normal business hours all escrow and trustee 16 records and related documents maintained in connection 17 with the practice of auctioneering, conducting an 18 auction, or providing an auction service within 24 hours 19 after a request from OBRE personnel. 20 (17) Making or filing false records or reports in 21 his or her practice, including but not limited to false 22 records or reports filed with State agencies. 23 (18) Failing to voluntarily furnish copies of all 24 written instruments prepared by the auctioneer and signed 25 by all parties to all parties at the time of execution. 26 (19) Failing to provide information within 30 days 27 in response to a written request made by the OBRE. 28 (20) Engaging in any act that constitutes a 29 violation of Section 2-102, 3-103, or 3-105 of the 30 Illinois Human Rights Act. 31 (21) Causing a payment from the Auction Recovery 32 Fund. 33 (22) Engaging in dishonorable, unethical, or 34 unprofessional conduct of a character likely to deceive, HB1805 Engrossed -19- LRB9102826ACtm 1 defraud, or harm the public. 2 (23) Offering or advertising real estate for sale 3 or lease at auction without a valid broker or 4 salesperson's license under the Real Estate License Act 5 of 1983, or any successor Act, unless exempt from 6 licensure under the terms of the Real Estate License Act 7 of 1983, or any successor Act. 8 Section 20-20. Termination without hearing for failure 9 to pay taxes, child support, or a student loan. OBRE may 10 terminate or otherwise discipline any license issued under 11 this Act without hearing if the appropriate administering 12 agency provides adequate information and proof that the 13 licensee has: 14 (1) failed to file a return, to pay the tax, 15 penalty, or interest shown in a filed return, or to pay 16 any final assessment of tax, penalty, or interest, as 17 required by any tax act administered by the Illinois 18 Department of Revenue until the requirements of the tax 19 act are satisfied; 20 (2) failed to pay any court ordered child support 21 as determined by a court order or by referral from the 22 Illinois Department of Public Aid; or 23 (3) failed to repay any student loan or assistance 24 as determined by the Illinois Student Assistance 25 Commission. If a license is terminated or otherwise 26 disciplined pursuant to this Section, the licensee may 27 request a hearing as provided by this Act within 30 days 28 of notice of termination or discipline. 29 Section 20-25. Investigation. OBRE may investigate the 30 actions or qualifications of any person or persons holding or 31 claiming to hold a license under this Act, who shall 32 hereinafter be called the respondent. HB1805 Engrossed -20- LRB9102826ACtm 1 Section 20-30. Consent orders. Notwithstanding any 2 provisions concerning the conduct of hearings and 3 recommendations for disciplinary actions, OBRE has the 4 authority to negotiate agreements with licensees and 5 applicants resulting in disciplinary consent orders. The 6 consent orders may provide for any form of discipline 7 provided for in this Act. The consent orders shall provide 8 that they were not entered into as a result of any coercion 9 by OBRE. Any consent order shall be accepted by or rejected 10 by the Commissioner in a timely manner. 11 Section 20-35. Subpoenas; attendance of witnesses; 12 oaths. 13 (a) OBRE shall have the power to issue subpoenas ad 14 testificandum (subpoena for documents) and to bring before it 15 any persons and to take testimony, either orally or by 16 deposition or both, with the same fees and mileage and in the 17 same manner as prescribed in civil cases in the courts of 18 this State. OBRE shall have the power to issue subpoenas 19 duces tecum and to bring before it any documents, papers, 20 files, books, and records with the same costs and in the same 21 manner as prescribed in civil cases in the courts of this 22 State. 23 (b) Any circuit court may, upon application of OBRE or 24 its designee or of the applicant, licensee, or person holding 25 a certificate of licensure against whom proceedings under 26 this Act are pending, enter an order compelling the 27 enforcement of any OBRE subpoena issued in connection with 28 any hearing or investigation. 29 (c) The Commissioner or his or her designee or the Board 30 shall have power to administer oaths to witnesses at any 31 hearing that OBRE is authorized to conduct and any other 32 oaths authorized in any Act administered by OBRE. HB1805 Engrossed -21- LRB9102826ACtm 1 Section 20-40. Hearings; record of hearings. 2 (a) OBRE shall have the authority to conduct hearings 3 before the Advisory Board on proceedings to revoke, suspend, 4 place on probation or administrative review, reprimand, or 5 refuse to issue or renew any license under this Act or to 6 impose a civil penalty not to exceed $10,000 upon any 7 licensee under this Act. 8 (b) OBRE, at its expense, shall preserve a record of all 9 proceedings at the formal hearing of any case involving the 10 discipline of any license under this Act. The notice of 11 hearing, complaint and all other documents in the nature of 12 pleadings and written motions filed in the proceedings, the 13 transcript of testimony, the report of the Board, and the 14 order of OBRE shall be the record of proceeding. At all 15 hearings or prehearing conference, OBRE and the respondent 16 shall be entitled to have a court reporter in attendance for 17 purposes of transcribing the proceeding or prehearing 18 conference. 19 Section 20-45. Notice. OBRE shall (i) notify the 20 respondent in writing at least 30 days prior to the date set 21 for the hearing of any charges made and the time and place 22 for the hearing of the charges to be heard under oath and 23 (ii) inform the respondent that, upon failure to file an 24 answer before the date originally set for the hearing, 25 default will be taken against the respondent and the 26 respondent's license may be suspended, revoked, or otherwise 27 disciplined as OBRE may deem proper before taking any 28 disciplinary action with regard to any license under this 29 Act. 30 If the respondent fails to file an answer after receiving 31 notice, the respondent's license may, in the discretion of 32 OBRE, be revoked, suspended, or otherwise disciplined as 33 deemed proper, without a hearing, if the act or acts charged HB1805 Engrossed -22- LRB9102826ACtm 1 constitute sufficient grounds for such action under this Act. 2 At the time and place fixed in the notice, OBRE shall 3 proceed to hearing of the charges and both the respondent and 4 the complainant shall be accorded ample opportunity to 5 present in person or by counsel such statements, testimony, 6 evidence, and argument as may be pertinent to the charges or 7 any defense thereto. 8 Section 20-50. Board's findings of fact, conclusions of 9 law, and recommendation to the Commissioner. At the 10 conclusion of the hearing, the Advisory Board shall present 11 to the Commissioner a written report of its findings of 12 facts, conclusions of law, and recommendations regarding 13 discipline or a fine. The report shall contain a finding 14 whether or not the accused person violated this Act or failed 15 to comply with the conditions required in this Act. The 16 Advisory Board shall specify the nature of the violation or 17 failure to comply and shall make its recommendations to the 18 Commissioner. 19 If the Commissioner disagrees in any regard with the 20 report of the Advisory Board, the Commissioner may issue an 21 order in contravention of the report. The Commissioner shall 22 provide a written report to the Advisory Board on any 23 deviation and shall specify with particularity the reasons 24 for that action in the final order. 25 Section 20-55. Motion for rehearing; rehearing. In any 26 hearing involving the discipline of a license, a copy of the 27 Advisory Board's report shall be served upon the respondent 28 by OBRE, either personally or as provided in this Act for the 29 service of the notice of hearing. Within 20 calendar days 30 after the service, the respondent may present to OBRE a 31 motion in writing for a rehearing, which shall specify the 32 particular grounds for rehearing. HB1805 Engrossed -23- LRB9102826ACtm 1 If no motion for rehearing is filed, then upon the 2 expiration of the time specified for filing a motion, or if a 3 motion for rehearing is denied, then upon denial, the 4 Commissioner may enter an order in accordance with the 5 recommendations of the Advisory Board, except as provided for 6 in this Act. If the respondent orders a transcript of the 7 record from the reporting service and pays for it within the 8 time for filing a motion for rehearing, the 20 calendar day 9 period within which a motion for rehearing may be filed shall 10 commence upon the delivery of the transcript to the 11 respondent. 12 Whenever the Commissioner is not satisfied that 13 substantial justice has been done in the hearing or in the 14 Advisory Board's report, the Commissioner may order a 15 rehearing by the same. 16 Section 20-60. Order; certified copy. An order or a 17 certified copy of an order, over the seal of OBRE and 18 purporting to be signed by the Commissioner or his or her 19 designee, shall be prima facie proof that: 20 (1) the signature is the genuine signature of the 21 Commissioner or his or her designee; 22 (2) the Commissioner is duly appointed and 23 qualified; and 24 (3) the Advisory Board is duly appointed and 25 qualified. 26 Section 20-65. Restoration of license. At any time 27 after the suspension or revocation of any license, OBRE may 28 restore the license to the accused person upon the written 29 recommendation of the Advisory Board, unless after an 30 investigation and a hearing the Advisory Board determines 31 that restoration is not in the public interest. HB1805 Engrossed -24- LRB9102826ACtm 1 Section 20-70. Surrender of license. Upon the 2 revocation or suspension of any license the licensee shall 3 immediately surrender the license to OBRE. If the licensee 4 fails to do so, OBRE shall have the right to seize the 5 license. 6 Section 20-75. Administrative Review Law. All final 7 administrative decisions of OBRE are subject to judicial 8 review under the Administrative Review Law and its rules. 9 The term "administrative decision" is defined as in Section 10 3-101 of the Code of Civil Procedure. 11 Proceedings for judicial review shall be commenced in the 12 circuit court of the county in which the party applying for 13 review resides, but if the party is not a resident of this 14 State, the venue shall be in Cook or Sangamon County. 15 Pending final decision on the review, the acts, orders, 16 sanctions, and rulings of OBRE regarding any license shall 17 remain in full force and effect, unless modified or suspended 18 by a court order pending final judicial decision. OBRE shall 19 not be required to certify any record to the court, file any 20 answer in court, or otherwise appear in any court in a 21 judicial review proceeding, unless there is filed in the 22 court, with the complaint, a receipt from OBRE acknowledging 23 payment of the costs of furnishing and certifying the record. 24 Failure on the part of the plaintiff to file a receipt in 25 court shall be grounds for dismissal of the action. 26 Section 20-80. Summary suspension. The Commissioner may 27 temporarily suspend any license pursuant to this Act, without 28 hearing, simultaneously with the institution of proceedings 29 for a hearing provided for in this Act, if the Commissioner 30 finds that the evidence indicates that the public interest, 31 safety, or welfare requires emergency action. In the event 32 that the Commissioner temporarily suspends any license HB1805 Engrossed -25- LRB9102826ACtm 1 without a hearing, a hearing shall be held within 30 calendar 2 days after the suspension has begun. The suspended licensee 3 may seek a continuance of the hearing during which the 4 suspension shall remain in effect. The proceeding shall be 5 concluded without appreciable delay. 6 Section 20-85. Action for compensation; allegation and 7 proof of license. No action or counterclaim shall be 8 maintained by any person in any court in this State with 9 respect to any agreement, contract, or services for which a 10 license is required by this Act or to recover the agreed 11 price or any compensation under any such agreement or for 12 such services for which a license is required by this Act 13 without alleging and proving that the person had a valid 14 license at the time of making such agreement or doing such 15 work. 16 Section 20-90. Cease and desist orders. OBRE may issue 17 cease and desist orders to persons who engage in activities 18 prohibited by this Act. Any person in violation of a cease 19 and desist order obtained by OBRE is subject to all of the 20 remedies provided by law. 21 Section 20-95. Returned checks; fine. A person who 22 delivers a check or other payment to OBRE that is returned to 23 OBRE unpaid by the financial institution upon which it is 24 drawn shall pay to OBRE, in addition to the amount already 25 owed to OBRE, a fee of $50. If the check or other payment 26 was for issuance of a license under this Act and that person 27 conducts an auction or provides an auction service, that 28 person may be subject to discipline for unlicensed practice. 29 OBRE shall notify the person that his or her check has been 30 returned and that the person shall pay to OBRE by certified 31 check or money order the amount of the returned check plus HB1805 Engrossed -26- LRB9102826ACtm 1 the $50 fee within 30 calendar days after the date of the 2 notification. If, after the expiration of 30 calendar days 3 of the notification, the person has failed to submit the 4 necessary remittance, OBRE shall automatically terminate the 5 license or deny the application without a hearing. If, after 6 termination or denial, the person seeks a license, he or she 7 shall petition OBRE for restoration and he or she may be 8 subject to additional discipline or fines. The Commissioner 9 may waive the fines due under this Section in individual 10 cases where the Commissioner finds that the fines would be 11 unreasonable or unnecessarily burdensome. 12 ARTICLE 25. SCHOOL AND CONTINUING EDUCATION PROVISIONS 13 Section 25-5. Continuing education. 14 (a) For each pre-renewal period, each auctioneer and 15 associate auctioneer who makes application to renew his or 16 her license must successfully complete auction continuing 17 education courses approved by the Advisory Board and OBRE 18 from a school approved by the Advisory Board and OBRE. 19 (b) Each renewal applicant shall successfully complete 20 12 hours of continuing education, of which at least 6 hours 21 shall be mandatory core subjects in the following categories: 22 (1) Illinois statutes and rules governing 23 auctioneering; 24 (2) federal statutes and regulations governing 25 auctioneering; 26 (3) auctioneering ethics; 27 (4) escrow and trust accounts; 28 (5) contracts; and 29 (6) other subject matter approved by the Board and 30 established by rule. 31 (c) Each renewal applicant may satisfy the remaining 6 32 hours of continuing education from the mandatory core HB1805 Engrossed -27- LRB9102826ACtm 1 subjects from the categories as provided in subsection (b) or 2 successfully complete an additional 6 hours of continuing 3 education in the following elective subject categories: 4 (1) agency; 5 (2) business courses related to auctioneering; 6 (3) real estate related courses; 7 (4) auction management; 8 (5) bid calling; 9 (6) public speaking; 10 (7) advertising; 11 (8) specialty auction courses; or 12 (9) other subject matter approved by the Board and 13 established by rule. 14 (d) Every licensee shall personally take and pass an 15 examination after each continuing education course, as 16 provided by rule. For the purposes of this Section, 70% 17 shall be deemed a passing score. 18 Section 25-10. School license; requirements; 19 application. 20 (a) Only schools approved by the Board and OBRE may 21 provide approved continuing education. 22 (b) Schools seeking to be approved as continuing 23 education schools shall provide satisfactory proof of the 24 following: 25 (1) a sound financial base for establishing, 26 promoting, and delivering the necessary courses; 27 (2) a sufficient number of qualified instructors; 28 (3) adequate support personnel to assist with 29 administrative matters and technical assistance; 30 (4) a written policy dealing with procedures for 31 the management of grievances and fee refunds; 32 (5) a qualified school administrator, who is 33 responsible for the administration of the school and the HB1805 Engrossed -28- LRB9102826ACtm 1 actions of instructors; and 2 (6) any other requirements as provided by rule. 3 (c) All schools shall provide each successful course 4 participants with a certificate of completion signed by the 5 school administrator containing the following information: 6 (1) the name, address, and license number of the 7 school; 8 (2) the name, address, social security number, and 9 license number of the successful participant; 10 (3) the name of the course, which describes the 11 subject matter thereof; 12 (4) the number of approved credit hours and whether 13 the course is from the mandatory or elective category; 14 (5) the date the course was completed; and 15 (6) other information as required and provided by 16 rule. 17 (d) All schools shall provide to OBRE a monthly roster 18 of all successful participants containing: 19 (1) the name, address, and license number of the 20 school; 21 (2) the name, address, social security, and license 22 number of the successful participants; 23 (3) the name of the course, which describes the 24 subject matter thereof, and the license number of the 25 course; 26 (4) the number of approved credit hours and whether 27 the course is from the mandatory or elective category; 28 (5) the date the course was completed; and 29 (6) other information as required and in a format 30 as provided by rule. 31 (e) All schools shall make application to OBRE on forms 32 provided by OBRE and pay the appropriate fee for a school 33 license. A school license shall expire on December 31 of 34 each odd numbered year. A school shall make application to HB1805 Engrossed -29- LRB9102826ACtm 1 the OBRE on forms provided by OBRE and pay the appropriate 2 fee as provided by rule for a renewal license. 3 (f) A school license may be disciplined as provided by 4 rule. 5 Section 25-15. Course approval; license. A school may 6 submit courses for approval by the Advisory Board and OBRE. 7 The criteria and information for course approval shall be 8 established by rule. For each course that is approved as a 9 continuing education course, OBRE shall issue a license to 10 the school for the course. Approved course licenses shall 11 expire on December 31 of odd number years along with the 12 school license. 13 ARTICLE 30. ADMINISTRATIVE PROVISIONS 14 Section 30-5. OBRE; powers and duties. The OBRE shall 15 exercise the powers and duties prescribed by the Civil 16 Administrative Code of Illinois for the administration of 17 licensing acts and shall exercise such other powers and 18 duties as prescribed by this Act. The OBRE may contract with 19 third parties for services necessary for the proper 20 administration of this Act. 21 Section 30-10. Rules. OBRE, after notifying and 22 considering the recommendations of the Advisory Board, if 23 any, shall adopt any rules that may be necessary for the 24 administration, implementation and enforcement of this Act. 25 Section 30-15. Auction Regulation Administration Fund. 26 A special fund to be known as the Auction Regulation 27 Administration Fund is created in the State Treasury. All 28 fees received by the OBRE under this Act shall be deposited 29 into the Auction Regulation Administration Fund. Subject to HB1805 Engrossed -30- LRB9102826ACtm 1 appropriation, the moneys deposited into the Auction 2 Regulation Administration Fund shall be used by the OBRE for 3 the administration of this Act. Moneys in the Auction 4 Regulation Administration Fund may be invested and reinvested 5 in the same manner as authorized for pension funds in Article 6 14 of the Illinois Pension Code. All earnings, interest, and 7 dividends received from investment of funds in the Auction 8 Regulation Administration Fund shall be deposited into the 9 Auction Regulation Administration Fund and shall be used for 10 the same purposes as other moneys deposited in the Auction 11 Regulation Administration Fund. 12 This fund shall be created on July 1, 1999. The State 13 Treasurer shall cause a transfer of $300,000 to the Auction 14 Regulation Administration Fund from the Real Estate License 15 Administration Fund on August 1, 1999. The State Treasurer 16 shall cause a transfer of $200,000 on August 1, 2000 and a 17 transfer of $100,000 on January 1, 2002 from the Auction 18 Regulation Administration Fund to the Real Estate License 19 Administration Fund, or if there is a sufficient fund balance 20 in the Auction Regulation Administration Fund to properly 21 administer this Act, the OBRE may recommend to the State 22 Treasurer to cause a transfer from the Auction Regulation 23 Administration Fund to the Real Estate License Administration 24 Fund on a date and in an amount which is accelerated, but not 25 less than set forth in this Section. In addition to the 26 license fees required under this Act, each initial applicant 27 for licensure under this Act shall pay to the OBRE an 28 additional $100 for deposit into the Auction Regulation 29 Administration Fund for a period of 2 years or until such 30 time the original transfer amount to the Auction Regulation 31 Administration Fund from the Real Estate License 32 Administration Fund is repaid. 33 Upon completion of any audit of the OBRE as prescribed by 34 the Illinois State Auditing Act, which includes an audit of HB1805 Engrossed -31- LRB9102826ACtm 1 the Auction Regulation Administration Fund, the OBRE shall 2 make the audit open to inspection by any interested party. 3 Section 30-20. Auction Recovery Fund. A special fund to 4 be known as the Auction Recovery Fund is created in the State 5 Treasury. The moneys in the Auction Recovery Fund shall be 6 used by the OBRE exclusively for carrying out the purposes 7 established pursuant to the provisions of Section 30-35 of 8 this Act. 9 The sums received by the OBRE pursuant to the provisions 10 of Sections 20-5 through Sections 20-20 of this Act shall be 11 deposited into the State Treasury and held in the Auction 12 Recovery Fund. In addition to the license fees required 13 under this Act, each initial and renewal applicant shall pay 14 to the OBRE an additional $25 for deposit into the Auction 15 Recovery Fund for a period of 2 years after the effective 16 date of this Act. After such time the Auction Regulation 17 Administration Fund has totally repaid the Real Estate 18 License Administration Fund, the State Treasurer shall cause 19 a transfer of $50,000 from the Auction Regulation 20 Administration Fund to the Auction Recovery Fund annually on 21 January 1 so as to sustain a minimum balance of $400,000 in 22 the Auction Recovery Fund. If the fund balance in the 23 Auction Recovery Fund on January 1 of any year after 2002 is 24 less than $100,000, in addition to the renewal license fee 25 required under this Act, each renewal applicant shall pay the 26 OBRE an additional $25 fee for deposit into the Auction 27 Recovery Fund. 28 The funds held in the Auction Recovery Fund may be 29 invested and reinvested in the same manner as funds in the 30 Auction Regulation Administration Fund. All earnings 31 received from investment may be deposited into the Auction 32 Recovery Fund and may be used for the same purposes as other 33 moneys deposited into the Auction Recovery Fund or may be HB1805 Engrossed -32- LRB9102826ACtm 1 deposited into the Auction Education Fund as provided in 2 Section 30-25 of this Act and as established by rule. 3 Section 30-25. Auction Education Fund. A special fund 4 to be known as the Auction Education Fund is created in the 5 State Treasury. The Auction Education Fund shall be 6 administered by OBRE. Subject to appropriation, moneys 7 deposited into the Auction Education Fund may be used for the 8 advancement of education in the auction industry, as 9 established by rule. The moneys deposited in the Auction 10 Education Fund may be invested and reinvested in the same 11 manner as funds in the Auction Regulation Administration 12 Fund. All earnings received from investment shall be 13 deposited into the Auction Education Fund and may be used for 14 the same purposes as other moneys deposited into the Auction 15 Education Fund. 16 Section 30-30. Auction Advisory Board. 17 (a) There is hereby created the Auction Advisory Board. 18 The Advisory Board shall consist of 7 members and shall be 19 appointed by the Commissioner. In making the appointments, 20 the Commissioner shall give due consideration to the 21 recommendations by members and organizations of the industry, 22 including but not limited to the Illinois State Auctioneers 23 Association. Four members of the Advisory Board shall be 24 licensed auctioneers, except that for the initial 25 appointments, these members may be persons without a license, 26 but who have been auctioneers for at least 5 years preceding 27 their appointment to the Advisory Board. One member shall be 28 a public member who represents the interests of consumers and 29 who is not licensed under this Act or the spouse of a person 30 licensed under this Act or who has any responsibility for 31 management or formation of policy of or any financial 32 interest in the auctioneering profession or any other HB1805 Engrossed -33- LRB9102826ACtm 1 connection with the profession. One member shall be actively 2 engaged in the real estate industry and licensed as a broker 3 or salesperson. One member shall be the Director of Auction 4 Regulation, ex-officio, and shall serve as the Chairperson of 5 the Advisory Board. 6 (b) Members shall be appointed for a term of 4 years, 7 except that of the initial appointments, 3 members shall be 8 appointed to serve a term of 3 years and 4 members shall be 9 appointed to serve a term of 4 years, including the Director. 10 The Commissioner shall fill a vacancy for the remainder of 11 any unexpired term. Each member shall serve on the Advisory 12 Board until his or her successor is appointed and qualified. 13 No person shall be appointed to serve more than 2 terms, 14 including the unexpired portion of a term due to vacancy. To 15 the extent practicable, the Commissioner shall appoint 16 members to insure that the various geographic regions of the 17 State are properly represented on the Advisory Board. 18 (c) A majority of the Advisory Board members currently 19 appointed shall constitute a quorum. A vacancy in the 20 membership of the Advisory Board shall not impair the right 21 of a quorum to exercise all of the rights and perform all the 22 duties of the Board. 23 (d) Each member of the Advisory Board shall receive a 24 per diem stipend in an amount to be determined by the 25 Commissioner. Each member shall be paid his or her necessary 26 expenses while engaged in the performance of his or her 27 duties. 28 (e) Members of the Advisory Board shall be immune from 29 suit in an action based upon any disciplinary proceedings or 30 other acts performed in good faith as members of the Advisory 31 Board. 32 (f) The Advisory Board shall meet monthly or as convened 33 by the Chairperson. 34 (g) The Advisory Board shall advise the OBRE on matters HB1805 Engrossed -34- LRB9102826ACtm 1 of licensing and education and make recommendations to the 2 OBRE on those matters and shall hear and make recommendations 3 to the Commissioner on disciplinary matters that require a 4 formal evidentiary hearing. 5 (h) The Commissioner shall give due consideration to all 6 recommendations of the Advisory Board. 7 Section 30-35. Director of Auction Regulation. The 8 Commissioner shall appoint a Director of Auction Regulation 9 in the OBRE for a term of 4 years. The Director shall hold a 10 valid auctioneer license under this Act, which shall be 11 surrendered to OBRE during his or her appointment, except for 12 the initial appointment. During the initial appointment, the 13 Director may be a person without a license who has been an 14 auctioneer for at least 5 years and who has sufficient 15 experience and knowledge in public administration. The 16 Director of Auction Regulation shall report to the 17 Commissioner and shall do the following: 18 (1) act as Chairperson of the Advisory Board, 19 ex-officio; 20 (2) be the direct liaison between OBRE, the 21 profession; and the auction organizations and 22 associations; 23 (3) prepare and circulate to licensees such 24 educational and informational material as the OBRE deems 25 necessary for providing guidance or assistance to 26 licensees; 27 (4) appoint any necessary committees to assist in 28 the performance of the functions and duties of the OBRE 29 under this Act; and 30 (5) subject to the administrative approval of the 31 Commissioner, supervise the Auction Regulation division 32 of OBRE. 33 In appointing the Director of Auction Regulation, the HB1805 Engrossed -35- LRB9102826ACtm 1 Commissioner shall give due consideration to recommendations 2 by members and organizations of the auction industry. 3 Section 30-40. Auction Recovery Fund; recovery; actions; 4 procedures. The OBRE shall maintain an Auction Recovery Fund 5 from which any person aggrieved by an act, representation, 6 transaction, or the conduct of a duly licensed auctioneer, 7 associate auctioneer or auction firm that constitutes a 8 violation of this Act or the regulations promulgated pursuant 9 thereto or that constitutes embezzlement of money or 10 property or results in money or property being unlawfully 11 obtained from any person by false pretenses, artifice, 12 trickery, or forgery or by reason of any fraud, 13 misrepresentation, discrimination or deceit by or on the part 14 of any licensee or the unlicensed employee of any auctioneer, 15 associate auctioneer, or auction firm and that results in a 16 loss of actual cash money as opposed to losses in market 17 value, may recover. The aggrieved person may recover, by 18 order of the circuit court of the county where the violation 19 occurred, an amount of not more than $10,000 from the fund 20 for damages sustained by the act, representation, 21 transaction, or conduct, together with the costs of suit and 22 attorneys' fees incurred in connection therewith of not to 23 exceed 15% of the amount of the recovery ordered paid from 24 the Fund. However, no licensed auctioneer, associate 25 auctioneer, or auction firm may recover from the Fund, unless 26 the court finds that the person suffered a loss resulting 27 from intentional misconduct. The court order shall not 28 include interest on the judgment. 29 The maximum liability against the Fund arising out of any 30 one act by any auctioneer, associate auctioneer, or auction 31 firm shall be $50,000, and the judgment order shall spread 32 the award equitably among all aggrieved persons. HB1805 Engrossed -36- LRB9102826ACtm 1 Section 30-45. Auction Recovery Fund; collection. 2 (a) No action for a judgment that subsequently results 3 in an order for collection from the Auction Recovery Fund 4 shall be started later than 2 years after the date on which 5 the aggrieved person knew or, through the use of reasonable 6 diligence, should have known of the acts or omissions giving 7 rise to a right of recovery from the Auction Recovery Fund. 8 (b) When any aggrieved person commences action for a 9 judgment that may result in collection from the Auction 10 Recovery Fund, the aggrieved person must name as parties to 11 that action any and all individual auctioneers, associate 12 auctioneers, auction firms, or their employees or agents who 13 allegedly committed or are responsible for acts or omissions 14 giving rise to a right of recovery from the Auction Recovery 15 Fund. Failure to name these individuals as parties shall 16 preclude recovery from the Auction Recovery Fund of any 17 portion of the judgment received in the action. 18 (c) When any aggrieved person commences action for a 19 judgment that may result in collection from the Auction 20 Recovery Fund, the aggrieved person must notify OBRE in 21 writing to this effect at the time of the commencement of the 22 action. Failure to so notify OBRE shall preclude recovery 23 from the Auction Recovery Fund of any portion of the judgment 24 received in the action. After receiving notice of the 25 commencement of such an action, OBRE, upon timely 26 application, shall be permitted to intervene as a party to 27 that action. 28 (d) When an aggrieved party commences action for a 29 judgment that may result in collection from the Auction 30 Recovery Fund and the court in which the action is commenced 31 enters judgment by default against the defendant and in favor 32 of the aggrieved party, the court shall, upon motion of OBRE, 33 set aside that judgment by default. After a judgment by 34 default has been set aside, OBRE shall appear as a party to HB1805 Engrossed -37- LRB9102826ACtm 1 that action and thereafter the court shall require proof of 2 the allegations in the pleading upon which relief is sought. 3 (e) The aggrieved person shall give written notice to 4 OBRE within 30 days after the entry of any judgment that may 5 result in collection from the Auction Recovery Fund. That 6 aggrieved person shall provide OBRE 20 days written notice of 7 all supplementary proceeding so as to allow OBRE to 8 participate in all efforts to collect on the judgment. 9 (f) When any aggrieved person recovers a valid judgment 10 in any court of competent jurisdiction against any licensee 11 or an unlicensed employee or agent of any licensee on the 12 grounds of fraud, misrepresentation, discrimination, or 13 deceit, the aggrieved person may, upon the termination of all 14 proceedings, including review and appeals in connection with 15 the judgment, file a verified claim in the court in which the 16 judgment was entered and, upon 30 days written notice to OBRE 17 and to the person against whom the judgment was obtained, may 18 apply to the court for an order directing payment out of the 19 Auction Recovery Fund of the amount unpaid upon the judgment, 20 not including interest on the judgment, and subject to the 21 limitation stated in Section 30-40 of this Act. The 22 aggrieved person must set out in that verified claim and at 23 an evidentiary hearing to be held by the court that the 24 aggrieved person: 25 (1) is not the spouse of the debtor or the personal 26 representative of the spouse; 27 (2) has complied with all the requirements of this 28 Section; 29 (3) has obtained a judgment stating the amount 30 thereof and the amount owing thereon, not including 31 interest thereon, at the date of the application; 32 (4) has made all reasonable searches and inquiries 33 to ascertain whether the judgment debtor possesses real 34 or personal property or other assets which may be sold or HB1805 Engrossed -38- LRB9102826ACtm 1 applied in satisfaction of the judgment; 2 (5) has discovered no personal or real property or 3 other assets liable to be sold or applied, or has 4 discovered certain of them, describing them owned by the 5 judgment debtor and liable to be so applied, and has 6 taken all necessary action and proceeding for the 7 realization thereof, and the amount thereby realized was 8 insufficient to satisfy the judgment, stating the amount 9 so realized and the balance remaining due on the judgment 10 after application of the amount realized; 11 (6) has diligently pursued all remedies against all 12 the judgment debtors and all other persons liable to the 13 aggrieved person in the transaction for which recovery is 14 sought from the Auction Recovery Fund; 15 (7) has filed an adversary action to have the debts 16 declared non-dischargeable in any bankruptcy petition 17 matter filed by any judgment debtor or person liable to 18 the aggrieved person. The aggrieved person shall also be 19 required to prove the amount of attorney's fees sought to 20 be recovered and the reasonableness of those fees up to 21 the maximum allowed pursuant to Section 30-40 of this 22 Act. 23 (g) The court shall make an order directed to OBRE 24 requiring payment from the Auction Recovery Fund of whatever 25 sum it finds to be payable upon the claim, pursuant to and in 26 accordance with the limitations contained in Section 30-40 of 27 this Act, if the court is satisfied, upon the hearing, of the 28 truth of all matters required to be shown by the aggrieved 29 person by subsection (f) of this Section and that the 30 aggrieved person has fully pursued and exhausted all remedies 31 available for recovering the amount awarded by the judgment 32 of the court. 33 (h) If the OBRE pays from the Auction Recovery Fund any 34 amount in settlement of a claim or toward satisfaction of a HB1805 Engrossed -39- LRB9102826ACtm 1 judgment against any licensee, or employee or agent of any 2 licensee, the license of said licensee shall be automatically 3 terminated without hearing upon the issuance of a court order 4 authorizing payment from the Auction Recovery Fund. No 5 petition for restoration of the license shall be heard until 6 repayment of the amount paid from the Auction Recovery Fund 7 on their account has been made in full, plus interest at the 8 rate prescribed in Section 12-109 of the Code of Civil 9 Procedure. A discharge in bankruptcy shall not relieve a 10 person from the penalties and disabilities provided in this 11 subsection. 12 (i) If, at any time, the money deposited in the Auction 13 Recovery Fund is insufficient to satisfy any duly authorized 14 claim or portion thereof, OBRE shall, when sufficient money 15 has been deposited in the Auction Recovery Fund, satisfy such 16 unpaid claims or portions thereof, in the order that the 17 claims or portions thereof were originally filed, plus 18 accumulated interest at the rate prescribed in Section 12-109 19 of the Code of Civil Procedure. 20 Section 30-50. Contractual agreements. The OBRE may 21 enter into contractual agreements with third parties to carry 22 out the provisions of this Act. 23 Section 30-55. Reciprocal agreements. The OBRE shall 24 have the authority to enter into reciprocal licensing 25 agreements with the proper authority of a state, territory, 26 or possession of the United States or the District of 27 Columbia having licensing requirements equal to or 28 substantially equivalent to the requirements of this State. 29 ARTICLE 950. AMENDATORY PROVISIONS 30 Section 950-5. The Regulatory Sunset Act is amended by HB1805 Engrossed -40- LRB9102826ACtm 1 adding Section 4.20 as follows: 2 (5 ILCS 80/4.20 new) 3 Sec. 4.20. Act repealed on January 1, 2010. The 4 following Act is repealed on January 1, 2010: 5 The Auction License Act. 6 Section 950-10. The State Finance Act is amended by 7 adding Sections 5.490, 5.491, and 5.492 as follows: 8 (30 ILCS 105/5.490 new) 9 Sec. 5.490. The Auction Regulation Administration Fund. 10 11 (30 ILCS 105/5.491 new) 12 Sec. 5.491. The Auction Recovery Fund. 13 (30 ILCS 105/5.492 new) 14 Sec. 5.492. The Auction Education Fund. 15 Section 950-15. If and only if House Bill 902 of the 16 91st General Assembly becomes law, the Real Estate License 17 Act of 1999 is amended by changing Sections 1-10 and 5-20 as 18 follows: 19 (91HB0902, Sec. 1-10) 20 Sec. 1-10. Definitions. In this Act, unless the context 21 otherwise requires: 22 "Act" means the Real Estate License Act of 1999. 23 "Advisory Council" means the Real Estate Education 24 Advisory Council created under Section 30-10 of this Act. 25 "Agency" means a relationship in which a real estate 26 broker or licensee, whether directly or through an affiliated 27 licensee, represents a consumer by the consumer's consent, HB1805 Engrossed -41- LRB9102826ACtm 1 whether express or implied, in a real property transaction. 2 "Applicant" means any person, as defined in this Section, 3 who applies to OBRE for a valid license as a real estate 4 broker, real estate salesperson, or leasing agent. 5 "Blind advertisement" means any real estate advertisement 6 that does not include the sponsoring broker's business name 7 and that is used by any licensee regarding the sale or lease 8 of real estate, including his or her own, licensed 9 activities, or the hiring of any licensee under this Act. 10 The broker's business name in the case of a franchise shall 11 include the franchise affiliation as well as the name of the 12 individual firm. 13 "Board" means the Real Estate Administration and 14 Disciplinary Board of OBRE. 15 "Branch office" means a sponsoring broker's office other 16 than the sponsoring broker's principal office. 17 "Broker" means an individual, partnership, limited 18 liability company, corporation, or registered limited 19 liability partnership other than a real estate salesperson or 20 leasing agent who for another and for compensation either 21 directly or indirectly: 22 (1) Sells, exchanges, purchases, rents, or leases 23 real estate. 24 (2) Offers to sell, exchange, purchase, rent, or 25 lease real estate. 26 (3) Negotiates, offers, attempts, or agrees to 27 negotiate the sale, exchange, purchase, rental, or 28 leasing of real estate. 29 (4) Lists, offers, attempts, or agrees to list real 30 estate for sale, lease, or exchange. 31 (5) Buys, sells, offers to buy or sell, or 32 otherwise deals in options on real estate or improvements 33 thereon. 34 (6) Supervises the collection, offer, attempt, or HB1805 Engrossed -42- LRB9102826ACtm 1 agreement to collect rent for the use of real estate. 2 (7) Advertises or represents himself or herself as 3 being engaged in the business of buying, selling, 4 exchanging, renting, or leasing real estate. 5 (8) Assists or directs in procuring or referring of 6 prospects, intended to result in the sale, exchange, 7 lease, or rental of real estate. 8 (9) Assists or directs in the negotiation of any 9 transaction intended to result in the sale, exchange, 10 lease, or rental of real estate. 11 (10) Opens real estate to the public for marketing 12 purposes. 13 (11) Sells, leases, or offers for sale or lease 14 real estate at auction. 15 "Brokerage agreement" means a written or oral agreement 16 between a sponsoring broker and a consumer for licensed 17 activities to be provided to a consumer in return for 18 compensation or the right to receive compensation from 19 another. Brokerage agreements may constitute either a 20 bilateral or a unilateral agreement between the broker and 21 the broker's client depending upon the content of the 22 brokerage agreement. All exclusive brokerage agreements shall 23 be in writing. 24 "Client" means a person who is being represented by a 25 licensee. 26 "Commissioner" means the Commissioner of Banks and Real 27 Estate or a person authorized by the Commissioner, the Office 28 of Banks and Real Estate Act, or this Act to act in the 29 Commissioner's stead. 30 "Compensation" means the valuable consideration given by 31 one person or entity to another person or entity in exchange 32 for the performance of some activity or service. 33 Compensation shall include the transfer of valuable 34 consideration, including without limitation the following: HB1805 Engrossed -43- LRB9102826ACtm 1 (1) commissions; 2 (2) referral fees; 3 (3) bonuses; 4 (4) prizes; 5 (5) merchandise; 6 (6) finder fees; 7 (7) performance of services; 8 (8) coupons or gift certificates; 9 (9) discounts; 10 (10) rebates; 11 (11) a chance to win a raffle, drawing, lottery, or 12 similar game of chance not prohibited by any other law or 13 statute; 14 (12) retainer fee; or 15 (13) salary. 16 "Confidential information" means information obtained by 17 a licensee from a client during the term of a brokerage 18 agreement that (i) was made confidential by the written 19 request or written instruction of the client, (ii) deals with 20 the negotiating position of the client, or (iii) is 21 information the disclosure of which could materially harm the 22 negotiating position of the client, unless at any time: 23 (1) the client permits the disclosure of 24 information given by that client by word or conduct; 25 (2) the disclosure is required by law; or 26 (3) the information becomes public from a source 27 other than the licensee. 28 "Confidential information" shall not be considered to 29 include material information about the physical condition of 30 the property. 31 "Consumer" means a person or entity seeking or receiving 32 licensed activities. 33 "Continuing education school" means any person licensed 34 by OBRE as a school for continuing education in accordance HB1805 Engrossed -44- LRB9102826ACtm 1 with Section 30-15 of this Act. 2 "Credit hour" means 50 minutes of classroom instruction 3 in course work that meets the requirements set forth in rules 4 adopted by OBRE. 5 "Customer" means a consumer who is not being represented 6 by the licensee but for whom the licensee is performing 7 ministerial acts. 8 "Designated agency" means a contractual relationship 9 between a sponsoring broker and a client under Section 15-50 10 of this Act in which one or more licensees associated with or 11 employed by the broker are designated as agent of the client. 12 "Designated agent" means a sponsored licensee named by a 13 sponsoring broker as the legal agent of a client, as provided 14 for in Section 15-50 of this Act. 15 "Director" means the Director of the Real Estate 16 Division, OBRE. 17 "Dual agency" means an agency relationship in which a 18 licensee is representing both buyer and seller or both 19 landlord and tenant in the same transaction. When the agency 20 relationship is a designated agency, the question of whether 21 there is a dual agency shall be determined by the agency 22 relationships of the designated agent of the parties and not 23 of the sponsoring broker. 24 "Employee" or other derivative of the word "employee", 25 when used to refer to, describe, or delineate the 26 relationship between a real estate broker and a real estate 27 salesperson, another real estate broker, or a leasing agent, 28 shall be construed to include an independent contractor 29 relationship, provided that a written agreement exists that 30 clearly establishes and states the relationship. All 31 responsibilities of a broker shall remain. 32 "Escrow moneys" means all moneys, promissory notes or any 33 other type or manner of legal tender or financial 34 consideration deposited with any person for the benefit of HB1805 Engrossed -45- LRB9102826ACtm 1 the parties to the transaction. A transaction exists once an 2 agreement has been reached and an accepted real estate 3 contract signed or lease agreed to by the parties. Escrow 4 moneys includes without limitation earnest moneys and 5 security deposits, except those security deposits in which 6 the person holding the security deposit is also the sole 7 owner of the property being leased and for which the security 8 deposit is being held. 9 "Inoperative" means a status of licensure where the 10 licensee holds a current license under this Act, but the 11 licensee is prohibited from engaging in licensed activities 12 because the licensee is unsponsored or the license of the 13 sponsoring broker with whom the licensee is associated or by 14 whom he or she is employed is currently expired, revoked, 15 suspended, or otherwise rendered invalid under this Act. 16 "Leasing Agent" means a person who is employed by a real 17 estate broker to engage in licensed activities limited to 18 leasing residential real estate who has obtained a license as 19 provided for in Section 5-5 of this Act. 20 "License" means the document issued by OBRE certifying 21 that the person named thereon has fulfilled all requirements 22 prerequisite to licensure under this Act. 23 "Licensed activities" means those activities listed in 24 the definition of "broker" under this Section. 25 "Licensee" means any person, as defined in this Section, 26 who holds a valid unexpired license as a real estate broker, 27 real estate salesperson, or leasing agent. 28 "Listing presentation" means a communication between a 29 real estate broker or salesperson and a consumer in which the 30 licensee is attempting to secure a brokerage agreement with 31 the consumer to market the consumer's real estate for sale or 32 lease. 33 "Managing broker" means a broker who has supervisory 34 responsibilities for licensees in one or, in the case of a HB1805 Engrossed -46- LRB9102826ACtm 1 multi-office company, more than one office and who has been 2 appointed as such by the sponsoring broker of the real estate 3 firm. 4 "Medium of advertising" means any method of communication 5 intended to influence the general public to use or purchase a 6 particular good or service or real estate. 7 "Ministerial acts" means those acts that a licensee may 8 perform for a consumer that are informative or clerical in 9 nature and do not rise to the level of active representation 10 on behalf of a consumer. Examples of these acts include 11 without limitation (i) responding to phone inquiries by 12 consumers as to the availability and pricing of brokerage 13 services, (ii) responding to phone inquiries from a consumer 14 concerning the price or location of property, (iii) attending 15 an open house and responding to questions about the property 16 from a consumer, (iv) setting an appointment to view 17 property, (v) responding to questions of consumers walking 18 into a licensee's office concerning brokerage services 19 offered or particular properties, (vi) accompanying an 20 appraiser, inspector, contractor, or similar third party on a 21 visit to a property, (vii) describing a property or the 22 property's condition in response to a consumer's inquiry, 23 (viii) completing business or factual information for a 24 consumer on an offer or contract to purchase on behalf of a 25 client, (ix) showing a client through a property being sold 26 by an owner on his or her own behalf, or (x) referral to 27 another broker or service provider. 28 "OBRE" means the Office of Banks and Real Estate. 29 "Office" means a real estate broker's place of business 30 where the general public is invited to transact business and 31 where records may be maintained and licenses displayed, 32 whether or not it is the broker's principal place of 33 business. 34 "Person" means and includes individuals, entities, HB1805 Engrossed -47- LRB9102826ACtm 1 corporations, limited liability companies, registered limited 2 liability partnerships, and partnerships, foreign or 3 domestic, except that when the context otherwise requires, 4 the term may refer to a single individual or other described 5 entity. 6 "Personal assistant" means a licensed or unlicensed 7 person who has been hired for the purpose of aiding or 8 assisting a sponsored licensee in the performance of the 9 sponsored licensee's job. 10 "Pocket card" means the card issued by OBRE to signify 11 that the person named on the card is currently licensed under 12 this Act. 13 "Pre-license school" means a school licensed by OBRE 14 offering courses in subjects related to real estate 15 transactions, including the subjects upon which an applicant 16 is examined in determining fitness to receive a license. 17 "Pre-renewal period" means the period between the date of 18 issue of a currently valid license and the license's 19 expiration date. 20 "Real estate" means and includes leaseholds as well as 21 any other interest or estate in land, whether corporeal, 22 incorporeal, freehold, or non-freehold and whether the real 23 estate is situated in this State or elsewhere. 24 "Real Estate Administration and Disciplinary Board" or 25 "Board" means the Real Estate Administration and Disciplinary 26 Board created by Section 25-10 of this Act. 27 "Salesperson" means any individual, other than a real 28 estate broker or leasing agent, who is employed by a real 29 estate broker or is associated by written agreement with a 30 real estate broker as an independent contractor and 31 participates in any activity described in the definition of 32 "broker" under this Section. 33 "Sponsoring broker" means the broker who has issued a 34 sponsor card to a licensed salesperson, another licensed HB1805 Engrossed -48- LRB9102826ACtm 1 broker, or a leasing agent. 2 "Sponsor card" means the temporary permit issued by the 3 sponsoring real estate broker certifying that the real estate 4 broker, real estate salesperson, or leasing agent named 5 thereon is employed by or associated by written agreement 6 with the sponsoring real estate broker, as provided for in 7 Section 5-40 of this Act. 8 (Source: 91HB0902 as introduced.) 9 (91HB0902, Sec. 5-20) 10 Sec. 5-20. Exemptions from broker, salesperson, or 11 leasing agent license requirement. The requirement for 12 holding a license under this Article 5 shall not apply to: 13 (1) Any person, partnership, or corporation that as 14 owner or lessor performs any of the acts described in the 15 definition of "broker" under Section 1-10 of this Act with 16 reference to property owned or leased by it, or to the 17 regular employees thereof with respect to the property so 18 owned or leased, where such acts are performed in the regular 19 course of or as an incident to the management, sale, or other 20 disposition of such property and the investment therein, 21 provided that such regular employees do not perform any of 22 the acts described in the definition of "broker" under 23 Section 1-10 of this Act in connection with a vocation of 24 selling or leasing any real estate or the improvements 25 thereon not so owned or leased. 26 (2) An attorney in fact acting under a duly executed and 27 recorded power of attorney to convey real estate from the 28 owner or lessor or the services rendered by an attorney at 29 law in the performance of the attorney's duty as an attorney 30 at law. 31 (3) Any person acting as receiver, trustee in 32 bankruptcy, administrator, executor, or guardian or while 33 acting under a court order or under the authority of a will HB1805 Engrossed -49- LRB9102826ACtm 1 or testamentary trust. 2 (4) Any person acting as a resident manager for the 3 owner or any employee acting as the resident manager for a 4 broker managing an apartment building, duplex, or apartment 5 complex, when the resident manager resides on the premises, 6 the premises is his or her primary residence, and the 7 resident manager is engaged in the leasing of the property of 8 which he or she is the resident manager. 9 (5) Any officer or employee of a federal agency in the 10 conduct of official duties. 11 (6) Any officer or employee of the State government or 12 any political subdivision thereof performing official duties. 13 (7) Any multiple listing service or other information 14 exchange that is engaged in the collection and dissemination 15 of information concerning real estate available for sale, 16 purchase, lease, or exchange along with which no other 17 licensed activities are provided. 18 (8) Railroads and other public utilities regulated by 19 the State of Illinois, or the officers or full time employees 20 thereof, unless the performance of any licensed activities is 21 in connection with the sale, purchase, lease, or other 22 disposition of real estate or investment therein not needing 23 the approval of the appropriate State regulatory authority. 24 (9) Any medium of advertising in the routine course of 25 selling or publishing advertising along with which no other 26 licensed activities are provided. 27 (10) Any resident lessee of a residential dwelling unit 28 who refers for compensation to the owner of the dwelling 29 unit, or to the owner's agent, prospective lessees of 30 dwelling units in the same building or complex as the 31 resident lessee's unit, but only if the resident lessee (i) 32 refers no more than 3 prospective lessees in any 12-month 33 period, (ii) receives compensation of no more than $1,000 or 34 the equivalent of one month's rent, whichever is less, in any HB1805 Engrossed -50- LRB9102826ACtm 1 12-month period, and (iii) limits his or her activities to 2 referring prospective lessees to the owner, or the owner's 3 agent, and does not show a residential dwelling unit to a 4 prospective lessee, discuss terms or conditions of leasing a 5 dwelling unit with a prospective lessee, or otherwise 6 participate in the negotiation of the leasing of a dwelling 7 unit. 8 (11) Any person who is licensed without examination under 9 Section 10-25 of the Auction License Act is exempt from 10 holding a broker's or salesperson's license under this Act 11 for the limited purpose of selling or leasing real estate at 12 auction, so long as: 13 (A) that person has made application for said 14 exemption by July 1, 2000; 15 (B) that person verifies to OBRE that he or 16 she has sold real estate at auction for a period of 17 5 years prior to licensure as an auctioneer; 18 (C) the person has had no lapse in his or her 19 license as an auctioneer; and 20 (D) the license issued under the Auction 21 License Act has not been disciplined for violation 22 of those provisions of Article 20 of the Auction 23 License Act dealing with or related to the sale or 24 lease of real estate at auction. 25 (Source: 91HB0902 as introduced.) 26 ARTICLE 999. EFFECTIVE DATE 27 Section 999-99. Effective date. This Act takes effect 28 on January 1, 2000, except that Sections 30-15 and 30-40 take 29 effect July 1, 1999.