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92_HB2566eng HB2566 Engrossed LRB9205328LBcs 1 AN ACT concerning the regulation of professions. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by adding 5 Section 5.545 as follows: 6 (30 ILCS 105/5.545 new) 7 Sec. 5.545. The Real Estate Audit Fund. 8 Section 10. The Real Estate License Act of 2000 is 9 amended by changing Sections 1-10, 5-20, 10-10, 20-60, and 10 20-70 and by adding Sections 25-14 and 25-37 as follows: 11 (225 ILCS 454/1-10) 12 Sec. 1-10. Definitions. In this Act, unless the context 13 otherwise requires: 14 "Act" means the Real Estate License Act of 2000. 15 "Advisory Council" means the Real Estate Education 16 Advisory Council created under Section 30-10 of this Act. 17 "Agency" means a relationship in which a real estate 18 broker or licensee, whether directly or through an affiliated 19 licensee, represents a consumer by the consumer's consent, 20 whether express or implied, in a real property transaction. 21 "Applicant" means any person, as defined in this Section, 22 who applies to OBRE for a valid license as a real estate 23 broker, real estate salesperson, or leasing agent. 24 "Blind advertisement" means any real estate advertisement 25 that does not include the sponsoring broker's business name 26 and that is used by any licensee regarding the sale or lease 27 of real estate, including his or her own, licensed 28 activities, or the hiring of any licensee under this Act. 29 The broker's business name in the case of a franchise shall HB2566 Engrossed -2- LRB9205328LBcs 1 include the franchise affiliation as well as the name of the 2 individual firm. 3 "Board" means the Real Estate Administration and 4 Disciplinary Board of OBRE. 5 "Branch office" means a sponsoring broker's office other 6 than the sponsoring broker's principal office. 7 "Broker" means an individual, partnership, limited 8 liability company, corporation, or registered limited 9 liability partnership other than a real estate salesperson or 10 leasing agent who for another and for compensation, or with 11 the intention or expectation of receiving compensation, 12 either directly or indirectly: 13 (1) Sells, exchanges, purchases, rents, or leases 14 real estate. 15 (2) Offers to sell, exchange, purchase, rent, or 16 lease real estate. 17 (3) Negotiates, offers, attempts, or agrees to 18 negotiate the sale, exchange, purchase, rental, or 19 leasing of real estate. 20 (4) Lists, offers, attempts, or agrees to list real 21 estate for sale, lease, or exchange. 22 (5) Buys, sells, offers to buy or sell, or 23 otherwise deals in options on real estate or improvements 24 thereon. 25 (6) Supervises the collection, offer, attempt, or 26 agreement to collect rent for the use of real estate. 27 (7) Advertises or represents himself or herself as 28 being engaged in the business of buying, selling, 29 exchanging, renting, or leasing real estate. 30 (8) Assists or directs in procuring or referring of 31 prospects, intended to result in the sale, exchange, 32 lease, or rental of real estate. 33 (9) Assists or directs in the negotiation of any 34 transaction intended to result in the sale, exchange, HB2566 Engrossed -3- LRB9205328LBcs 1 lease, or rental of real estate. 2 (10) Opens real estate to the public for marketing 3 purposes. 4 (11) Sells, leases, or offers for sale or lease 5 real estate at auction. 6 "Brokerage agreement" means a written or oral agreement 7 between a sponsoring broker and a consumer for licensed 8 activities to be provided to a consumer in return for 9 compensation or the right to receive compensation from 10 another. Brokerage agreements may constitute either a 11 bilateral or a unilateral agreement between the broker and 12 the broker's client depending upon the content of the 13 brokerage agreement. All exclusive brokerage agreements 14 shall be in writing. 15 "Client" means a person who is being represented by a 16 licensee. 17 "Commissioner" means the Commissioner of Banks and Real 18 Estate or a person authorized by the Commissioner, the Office 19 of Banks and Real Estate Act, or this Act to act in the 20 Commissioner's stead. 21 "Compensation" means the valuable consideration given by 22 one person or entity to another person or entity in exchange 23 for the performance of some activity or service. 24 Compensation shall include the transfer of valuable 25 consideration, including without limitation the following: 26 (1) commissions; 27 (2) referral fees; 28 (3) bonuses; 29 (4) prizes; 30 (5) merchandise; 31 (6) finder fees; 32 (7) performance of services; 33 (8) coupons or gift certificates; 34 (9) discounts; HB2566 Engrossed -4- LRB9205328LBcs 1 (10) rebates; 2 (11) a chance to win a raffle, drawing, lottery, or 3 similar game of chance not prohibited by any other law or 4 statute; 5 (12) retainer fee; or 6 (13) salary. 7 "Confidential information" means information obtained by 8 a licensee from a client during the term of a brokerage 9 agreement that (i) was made confidential by the written 10 request or written instruction of the client, (ii) deals with 11 the negotiating position of the client, or (iii) is 12 information the disclosure of which could materially harm the 13 negotiating position of the client, unless at any time: 14 (1) the client permits the disclosure of 15 information given by that client by word or conduct; 16 (2) the disclosure is required by law; or 17 (3) the information becomes public from a source 18 other than the licensee. 19 "Confidential information" shall not be considered to 20 include material information about the physical condition of 21 the property. 22 "Consumer" means a person or entity seeking or receiving 23 licensed activities. 24 "Continuing education school" means any person licensed 25 by OBRE as a school for continuing education in accordance 26 with Section 30-15 of this Act. 27 "Credit hour" means 50 minutes of classroom instruction 28 in course work that meets the requirements set forth in rules 29 adopted by OBRE. 30 "Customer" means a consumer who is not being represented 31 by the licensee but for whom the licensee is performing 32 ministerial acts. 33 "Designated agency" means a contractual relationship 34 between a sponsoring broker and a client under Section 15-50 HB2566 Engrossed -5- LRB9205328LBcs 1 of this Act in which one or more licensees associated with or 2 employed by the broker are designated as agent of the client. 3 "Designated agent" means a sponsored licensee named by a 4 sponsoring broker as the legal agent of a client, as provided 5 for in Section 15-50 of this Act. 6 "Director" means the Director of the Real Estate 7 Division, OBRE. 8 "Dual agency" means an agency relationship in which a 9 licensee is representing both buyer and seller or both 10 landlord and tenant in the same transaction. When the agency 11 relationship is a designated agency, the question of whether 12 there is a dual agency shall be determined by the agency 13 relationships of the designated agent of the parties and not 14 of the sponsoring broker. 15 "Employee" or other derivative of the word "employee", 16 when used to refer to, describe, or delineate the 17 relationship between a real estate broker and a real estate 18 salesperson, another real estate broker, or a leasing agent, 19 shall be construed to include an independent contractor 20 relationship, provided that a written agreement exists that 21 clearly establishes and states the relationship. All 22 responsibilities of a broker shall remain. 23 "Escrow moneys" means all moneys, promissory notes or any 24 other type or manner of legal tender or financial 25 consideration deposited with any person for the benefit of 26 the parties to the transaction. A transaction exists once an 27 agreement has been reached and an accepted real estate 28 contract signed or lease agreed to by the parties. Escrow 29 moneys includes without limitation earnest moneys and 30 security deposits, except those security deposits in which 31 the person holding the security deposit is also the sole 32 owner of the property being leased and for which the security 33 deposit is being held. 34 "Inoperative" means a status of licensure where the HB2566 Engrossed -6- LRB9205328LBcs 1 licensee holds a current license under this Act, but the 2 licensee is prohibited from engaging in licensed activities 3 because the licensee is unsponsored or the license of the 4 sponsoring broker with whom the licensee is associated or by 5 whom he or she is employed is currently expired, revoked, 6 suspended, or otherwise rendered invalid under this Act. 7 "Leasing Agent" means a person who is employed by a real 8 estate broker to engage in licensed activities limited to 9 leasing residential real estate who has obtained a license as 10 provided for in Section 5-5 of this Act. 11 "License" means the document issued by OBRE certifying 12 that the person named thereon has fulfilled all requirements 13 prerequisite to licensure under this Act. 14 "Licensed activities" means those activities listed in 15 the definition of "broker" under this Section. 16 "Licensee" means any person, as defined in this Section, 17 who holds a valid unexpired license as a real estate broker, 18 real estate salesperson, or leasing agent. 19 "Listing presentation" means a communication between a 20 real estate broker or salesperson and a consumer in which the 21 licensee is attempting to secure a brokerage agreement with 22 the consumer to market the consumer's real estate for sale or 23 lease. 24 "Managing broker" means a broker who has supervisory 25 responsibilities for licensees in one or, in the case of a 26 multi-office company, more than one office and who has been 27 appointed as such by the sponsoring broker. 28 "Medium of advertising" means any method of communication 29 intended to influence the general public to use or purchase a 30 particular good or service or real estate. 31 "Ministerial acts" means those acts that a licensee may 32 perform for a consumer that are informative or clerical in 33 nature and do not rise to the level of active representation 34 on behalf of a consumer. Examples of these acts include HB2566 Engrossed -7- LRB9205328LBcs 1 without limitation (i) responding to phone inquiries by 2 consumers as to the availability and pricing of brokerage 3 services, (ii) responding to phone inquiries from a consumer 4 concerning the price or location of property, (iii) attending 5 an open house and responding to questions about the property 6 from a consumer, (iv) setting an appointment to view 7 property, (v) responding to questions of consumers walking 8 into a licensee's office concerning brokerage services 9 offered or particular properties, (vi) accompanying an 10 appraiser, inspector, contractor, or similar third party on a 11 visit to a property, (vii) describing a property or the 12 property's condition in response to a consumer's inquiry, 13 (viii) completing business or factual information for a 14 consumer on an offer or contract to purchase on behalf of a 15 client, (ix) showing a client through a property being sold 16 by an owner on his or her own behalf, or (x) referral to 17 another broker or service provider. 18 "OBRE" means the Office of Banks and Real Estate. 19 "Office" means a real estate broker's place of business 20 where the general public is invited to transact business and 21 where records may be maintained and licenses displayed, 22 whether or not it is the broker's principal place of 23 business. 24 "Person" means and includes individuals, entities, 25 corporations, limited liability companies, registered limited 26 liability partnerships, and partnerships, foreign or 27 domestic, except that when the context otherwise requires, 28 the term may refer to a single individual or other described 29 entity. 30 "Personal assistant" means a licensed or unlicensed 31 person who has been hired for the purpose of aiding or 32 assisting a sponsored licensee in the performance of the 33 sponsored licensee's job. 34 "Pocket card" means the card issued by OBRE to signify HB2566 Engrossed -8- LRB9205328LBcs 1 that the person named on the card is currently licensed under 2 this Act. 3 "Pre-license school" means a school licensed by OBRE 4 offering courses in subjects related to real estate 5 transactions, including the subjects upon which an applicant 6 is examined in determining fitness to receive a license. 7 "Pre-renewal period" means the period between the date of 8 issue of a currently valid license and the license's 9 expiration date. 10 "Real estate" means and includes leaseholds as well as 11 any other interest or estate in land, whether corporeal, 12 incorporeal, freehold, or non-freehold, including timeshare 13 interests, and whether the real estate is situated in this 14 State or elsewhere. 15 "Real Estate Administration and Disciplinary Board" or 16 "Board" means the Real Estate Administration and Disciplinary 17 Board created by Section 25-10 of this Act. 18 "Salesperson" means any individual, other than a real 19 estate broker or leasing agent, who is employed by a real 20 estate broker or is associated by written agreement with a 21 real estate broker as an independent contractor and 22 participates in any activity described in the definition of 23 "broker" under this Section. 24 "Sponsoring broker" means the broker who has issued a 25 sponsor card to a licensed salesperson, another licensed 26 broker, or a leasing agent. 27 "Sponsor card" means the temporary permit issued by the 28 sponsoring real estate broker certifying that the real estate 29 broker, real estate salesperson, or leasing agent named 30 thereon is employed by or associated by written agreement 31 with the sponsoring real estate broker, as provided for in 32 Section 5-40 of this Act. 33 (Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00; 34 91-603, eff. 1-1-00; 91-702, eff. 5-12-00.) HB2566 Engrossed -9- LRB9205328LBcs 1 (225 ILCS 454/5-20) 2 Sec. 5-20. Exemptions from broker, salesperson, or 3 leasing agent license requirement. The requirement for 4 holding a license under this Article 5 shall not apply to: 5 (1) Any person, partnership, or corporation that as 6 owner or lessor performs any of the acts described in the 7 definition of "broker" under Section 1-10 of this Act with 8 reference to property owned or leased by it, or to the 9 regular employees thereof with respect to the property so 10 owned or leased, where such acts are performed in the regular 11 course of or as an incident to the management, sale, or other 12 disposition of such property and the investment therein, 13 provided that such regular employees do not perform any of 14 the acts described in the definition of "broker" under 15 Section 1-10 of this Act in connection with a vocation of 16 selling or leasing any real estate or the improvements 17 thereon not so owned or leased. 18 (2) An attorney in fact acting under a duly executed and 19 recorded power of attorney to convey real estate from the 20 owner or lessor or the services rendered by an attorney at 21 law in the performance of the attorney's duty as an attorney 22 at law. 23 (3) Any person acting as receiver, trustee in 24 bankruptcy, administrator, executor, or guardian or while 25 acting under a court order or under the authority of a will 26 or testamentary trust. 27 (4) Any person acting as a resident manager for the 28 owner or any employee acting as the resident manager for a 29 broker managing an apartment building, duplex, or apartment 30 complex, when the resident manager resides on the premises, 31 the premises is his or her primary residence, and the 32 resident manager is engaged in the leasing of the property of 33 which he or she is the resident manager. 34 (5) Any officer or employee of a federal agency in the HB2566 Engrossed -10- LRB9205328LBcs 1 conduct of official duties. 2 (6) Any officer or employee of the State government or 3 any political subdivision thereof performing official duties. 4 (7) Any multiple listing service or other information 5 exchange that is engaged in the collection and dissemination 6 of information concerning real estate available for sale, 7 purchase, lease, or exchange along with which no other 8 licensed activities are provided. 9 (8) Railroads and other public utilities regulated by 10 the State of Illinois, or the officers or full time employees 11 thereof, unless the performance of any licensed activities is 12 in connection with the sale, purchase, lease, or other 13 disposition of real estate or investment therein not needing 14 the approval of the appropriate State regulatory authority. 15 (9) Any medium of advertising in the routine course of 16 selling or publishing advertising along with which no other 17 licensed activities are provided. 18 (10) Any resident lessee of a residential dwelling unit 19 who refers for compensation to the owner of the dwelling 20 unit, or to the owner's agent, prospective lessees of 21 dwelling units in the same building or complex as the 22 resident lessee's unit, but only if the resident lessee (i) 23 refers no more than 3 prospective lessees in any 12-month 24 period, (ii) receives compensation of no more than $1,000 or 25 the equivalent of one month's rent, whichever is less, in any 26 12-month period, and (iii) limits his or her activities to 27 referring prospective lessees to the owner, or the owner's 28 agent, and does not show a residential dwelling unit to a 29 prospective lessee, discuss terms or conditions of leasing a 30 dwelling unit with a prospective lessee, or otherwise 31 participate in the negotiation of the leasing of a dwelling 32 unit. 33 (11) An exchange company registered under the Real 34 Estate Timeshare Act of 1999 and the regular employees of HB2566 Engrossed -11- LRB9205328LBcs 1 that registered exchange company but only when conducting an 2 exchange program as defined in that Act. 3 (12) An existing timeshare owner who, for compensation, 4 refers prospective purchasers, but only if the existing 5 timeshare owner (i) refers no more than 20 prospective 6 purchasers in any calendar year, (ii) receives no more than 7 $1,000, or its equivalent, for referrals in any calendar year 8 and (iii) limits his or her activities to referring 9 prospective purchasers of timeshare interests to the 10 developer or the developer's employees or agents, and does 11 not show, discuss terms or conditions of purchase or 12 otherwise participate in negotiations with regard to 13 timeshare interests. 14 (13)(11)Any person who is licensed without examination 15 under Section 10-25 of the Auction License Act is exempt from 16 holding a broker's or salesperson's license under this Act 17 for the limited purpose of selling or leasing real estate at 18 auction, so long as: 19 (A) that person has made application for said 20 exemption by July 1, 2000; 21 (B) that person verifies to OBRE that he or 22 she has sold real estate at auction for a period of 23 5 years prior to licensure as an auctioneer; 24 (C) the person has had no lapse in his or her 25 license as an auctioneer; and 26 (D) the license issued under the Auction 27 License Act has not been disciplined for violation 28 of those provisions of Article 20 of the Auction 29 License Act dealing with or related to the sale or 30 lease of real estate at auction. 31 (14) A hotel operator who is registered with the 32 Illinois Department of Revenue and pays taxes under the Hotel 33 Operators' Occupation Tax Act and rents a room or rooms in a 34 hotel as defined in the Hotel Operators' Occupation Tax Act HB2566 Engrossed -12- LRB9205328LBcs 1 for a period of not more than 30 consecutive days and not 2 more than 60 days in a calendar year. 3 (Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00; 4 91-603, eff. 1-1-00; revised 10-27-99.) 5 (225 ILCS 454/10-10) 6 Sec. 10-10. Disclosure of compensation. 7 (a) A licensee must disclose to a client the sponsoring 8 broker's compensation and policy with regard to cooperating 9 with brokers who represent other parties in a transaction. 10 (b) A licensee must disclose to a client all sources of 11 compensation related to the transaction received by the 12 licensee from a third party. 13 (c) If a licensee refers a client to a third party in 14 which the licensee has greater than a 1% ownership interest 15 or from which the licensee receives or may receive dividends 16 or other profit sharing distributions, other than a publicly 17 held or traded company, for the purpose of the client 18 obtaining services related to the transaction, then the 19 licensee shall disclose that fact to the client at the time 20 of making the referral. 21 (d) If in any one transaction a sponsoring broker 22 receives compensation from both the buyer and seller or 23 lessee and lessor of real estate, the sponsoring broker shall 24 disclose in writing to a client the fact that the 25 compensation is being paid by both buyer and seller or lessee 26 and lessor. 27 (e) Nothing in the Act shall prohibit the cooperation 28 with or a payment of compensation to a person not domiciled 29 in this State or country who is licensed as a real estate 30 broker in his or her state or country of domicile or to a 31 resident of a country that does not require a person to be 32 licensed to act as a real estate broker if the person 33 complies with the laws of the country in which that person HB2566 Engrossed -13- LRB9205328LBcs 1 resides and practices there as a real estate broker. 2 (Source: P.A. 91-245, eff. 12-31-99.) 3 (225 ILCS 454/20-60) 4 Sec. 20-60. Hearing; investigation; notice; disciplinary 5 consent order. 6 (a) OBRE may conduct hearings through the Board or a 7 duly appointed hearing officer on proceedings to suspend, 8 revoke, or to refuse to issue or renew licenses of persons 9 applying for licensure or licensed under this Act or to 10 censure, reprimand, or impose a civil fine not to exceed 11 $25,000 upon any licensee hereunder and may revoke, suspend, 12 or refuse to issue or renew these licenses or censure, 13 reprimand, or impose a civil fine not to exceed $25,000 upon 14 any licensee hereunder. 15 (b) Upon the motion of either OBRE or the Board or upon 16 the verified complaint in writing of any persons setting 17 forth facts that if proven would constitute grounds for 18 suspension or revocation under this Act, OBRE, the Board, or 19 its subcommittee shall cause to be investigated the actions 20 of any person so accused who holds a license or is holding 21 himself or herself out to be a licensee. This person is 22 hereinafter called the accused. 23 (c) Prior to initiating any formal disciplinary 24 proceedings resulting from an investigation conducted 25 pursuant to subsection (b) of this Section, that matter shall 26 be reviewed by a subcommittee of the Board according to 27 procedures established by rule. The subcommittee shall make a 28 recommendation to the full Board as to the validity of the 29 complaint and may recommend that the Board not proceed with 30 formal disciplinary proceedings if the complaint is 31 determined to be frivolous or without merit. 32 (d) Except as provided for in Section 20-65 of this Act, 33 OBRE shall, before suspending, revoking, placing on HB2566 Engrossed -14- LRB9205328LBcs 1 probationary status, or taking any other disciplinary action 2 as OBRE may deem proper with regard to any license: 3 (1) notify the accused in writing at least 30 days 4 prior to the date set for the hearing of any charges made 5 and the time and place for the hearing of the charges to 6 be heard before the Board under oath; and 7 (2) inform the accused that upon failure to file an 8 answer and request a hearing before the date originally 9 set for the hearing, default will be taken against the 10 accused and his or her license may be suspended, revoked, 11 or placed on probationary status, or other disciplinary 12 action, including limiting the scope, nature, or extent 13 of the accused's practice, as OBRE may deem proper, may 14 be taken with regard thereto. 15 In case the person fails to file an answer after 16 receiving notice, his or her license may, in the discretion 17 of OBRE, be suspended, revoked, or placed on probationary 18 status, or OBRE may take whatever disciplinary action deemed 19 proper, including limiting the scope, nature, or extent of 20 the person's practice or the imposition of a fine, without a 21 hearing, if the act or acts charged constitute sufficient 22 grounds for such action under this Act. 23 (e) At the time and place fixed in the notice, the Board 24 shall proceed to hearing of the charges and both the accused 25 person and the complainant shall be accorded ample 26 opportunity to present in person or by counsel such 27 statements, testimony, evidence and argument as may be 28 pertinent to the charges or to any defense thereto. The 29 Board or its hearing officer may continue a hearing date upon 30 its own motion or upon an accused's motion for one period not 31 to exceed 30 days. The Board or its hearing officer may 32 grant further continuances for periods not to exceed 30 days 33 only upon good cause being shown by the moving party. The 34 non-moving party shall have the opportunity to object to a HB2566 Engrossed -15- LRB9205328LBcs 1 continuance on the record at a hearing upon the motion to 2 continue. All motions for continuances and any denial or 3 grant thereof shall be in writing. All motions shall be 4 submitted not later than 48 hours before the scheduled 5 hearing unless made upon an emergency basis. In determining 6 whether good cause for a continuance is shown, the Board or 7 its hearing officer shall consider such factors as the volume 8 of cases pending, the nature and complexity of legal issues 9 raised, the diligence of the party making the request, the 10 availability of party's legal representative or witnesses, 11 and the number of previous requests for continuance. 12 (f) Any unlawful act or violation of any of the 13 provisions of this Act upon the part of any licensees 14 employed by a real estate broker or associated by written 15 agreement with the real estate broker, or unlicensed employee 16 of a licensed broker, shall not be cause for the revocation 17 of the license of any such broker, partial or otherwise, 18 unless it appears to the satisfaction of OBRE that the broker 19 had knowledge thereof. 20 (g) OBRE or the Board has power to subpoena any persons 21 or documents for the purpose of investigation or hearing with 22 the same fees and mileage and in the same manner as 23 prescribed by law for judicial procedure in civil cases in 24 courts of this State. The Commissioner, the Director, any 25 member of the Board, a certified court reporter, or a hearing 26 officer shall each have power to administer oaths to 27 witnesses at any hearing which OBRE is authorized under this 28 Act to conduct. 29 (h) Any circuit court or any judge thereof, upon the 30 application of the accused person, complainant, OBRE, or the 31 Board, may, by order entered, require the attendance of 32 witnesses and the production of relevant books and papers 33 before the Board in any hearing relative to the application 34 for or refusal, recall, suspension, or revocation of a HB2566 Engrossed -16- LRB9205328LBcs 1 license, and the court or judge may compel obedience to the 2 court's or the judge's order by proceedings for contempt. 3 (i) OBRE, at its expense, shall preserve a record of all 4 proceedings at the formal hearing of any case involving the 5 refusal to issue or the revocation, suspension, or other 6 discipline of a licensee. The notice of hearing, complaint 7 and all other documents in the nature of pleadings and 8 written motions filed in the proceedings, the transcript of 9 testimony, the report of the Board, and the orders of OBRE 10 shall be the record of the proceeding. At all hearings or 11 pre-hearing conferences, OBRE and the accused shall be 12 entitled to have a court reporter in attendance for purposes 13 of transcribing the proceeding or pre-hearing conference at 14 the expense of the party requesting the court reporter's 15 attendance. A copy of the transcribed proceeding shall be 16 available to the other party for the cost of a copy of the 17 transcript. 18 (j) The Board shall present to the Commissioner its 19 written report of its findings and recommendations. A copy 20 of the report shall be served upon the accused, either 21 personally or by certified mail as provided in this Act for 22 the service of the citation. Within 20 days after the 23 service, the accused may present to the Commissioner a motion 24 in writing for a rehearing that shall specify the particular 25 grounds therefor. If the accused shall order and pay for a 26 transcript of the record as provided in this Act, the time 27 elapsing thereafter and before the transcript is ready for 28 delivery to the accused shall not be counted as part of the 29 20 days. Whenever the Commissioner is satisfied that 30 substantial justice has not been done, the Commissioner may 31 order a rehearing by the Board or other special committee 32 appointed by the Commissioner or may remand the matter to the 33 Board for their reconsideration of the matter based on the 34 pleadings and evidence presented to the Board. In all HB2566 Engrossed -17- LRB9205328LBcs 1 instances, under this Act, in which the Board has rendered a 2 recommendation to the Commissioner with respect to a 3 particular licensee or applicant, the Commissioner shall, in 4 the event that he or she disagrees with or takes action 5 contrary to the recommendation of the Board, file with the 6 Board and the Secretary of State his specific written reasons 7 of disagreement with the Board. The reasons shall be filed 8 within 60 days of the Board's recommendation to the 9 Commissioner and prior to any contrary action. At the 10 expiration of the time specified for filing a motion for a 11 rehearing, the Commissioner shall have the right to take the 12 action recommended by the Board. Upon the suspension or 13 revocation of a license, the licensee shall be required to 14 surrender his or her license to OBRE, and upon failure or 15 refusal to do so, OBRE shall have the right to seize the 16 license. 17 (k) At any time after the suspension, temporary 18 suspension, or revocation of any license, OBRE may restore it 19 to the accused without examination, upon the written 20 recommendation of the Board. 21 (l) An order of revocation or suspension or a certified 22 copy thereof, over the seal of OBRE and purporting to be 23 signed by the Commissioner, shall be prima facie proof that: 24 (1) The signature is the genuine signature of the 25 Commissioner. 26 (2) The Commissioner is duly appointed and 27 qualified. 28 (3) The Board and the members thereof are 29 qualified. 30 Such proof may be rebutted. 31 (m) Notwithstanding any provisions concerning the 32 conduct of hearings and recommendations for disciplinary 33 actions, OBRE as directed by the Commissioner has the 34 authority to negotiate agreements with licensees and HB2566 Engrossed -18- LRB9205328LBcs 1 applicants resulting in disciplinary consent orders. These 2 consent orders may provide for any of the forms of discipline 3 provided in this Act. These consent orders shall provide 4 that they were not entered into as a result of any coercion 5 by OBRE. Any such consent order shall be filed with the 6 Commissioner along with the Board's recommendation and 7 accepted or rejected by the Commissioner within 60 days of 8 the Board's recommendation. 9 (Source: P.A. 91-245, eff. 12-31-99.) 10 (225 ILCS 454/25-14 new) 11 Sec. 25-14. Reliance on advisory letters. Licensees or 12 their representatives may seek an advisory letter from OBRE 13 as to matters arising under this Act or the rules promulgated 14 pursuant to this Act. OBRE shall promulgate rules as to the 15 process of seeking and obtaining an advisory letter and 16 topics and areas on which advisory rules will be issued by 17 OBRE. A licensee is entitled to rely upon an advisory letter 18 from OBRE and will not be disciplined by OBRE for actions 19 taken in reliance on the advisory letter. 20 (225 ILCS 454/20-70 rep.) 21 Section 15. The Real Estate License Act of 2000 is 22 amended by repealing Section 20-70. 23 (225 ILCS 454/25-37 new) 24 Sec. 25-37. Real Estate Audit Fund; audit of special 25 accounts; audit of fund. 26 (a) A special fund to be known as the Real Estate Audit 27 Fund is created in the State Treasury. The State Treasurer 28 shall cause a transfer of $200,000 from the Real Estate 29 License Administration Fund to the Real Estate Audit Fund on 30 January 1, 2002. If, at any time, the balance in the Real 31 Estate Audit Fund is less than $25,000, the State Treasurer HB2566 Engrossed -19- LRB9205328LBcs 1 shall cause a transfer of $200,000 from the Real Estate 2 License Administration Fund to the Real Estate Audit Fund. 3 The moneys held in the Real Estate Audit Fund shall be used 4 exclusively by OBRE to conduct audits of special accounts of 5 moneys belonging to others held by a broker. 6 (b) Upon receipt of a complaint or evidence by OBRE 7 sufficient to cause OBRE to reasonably believe that funds 8 required to be maintained in a special account by a broker 9 have been misappropriated, the broker shall, within 30 days 10 of written notice, submit to an audit of all special 11 accounts. Such audit shall be performed by a licensed 12 certified public accountant, shall result in a written report 13 by the accountant, and shall specifically refer to the escrow 14 and record-keeping requirements of this Act and the rules 15 adopted under this Act. If it is found, pursuant to an order 16 issued by the Commissioner, that moneys required to be 17 maintained in a special account by a broker were 18 misappropriated, as further defined by rule, the broker shall 19 reimburse OBRE, in addition to any other discipline or civil 20 penalty imposed, for the cost of the audit performed pursuant 21 to this Section. OBRE may file in circuit court for a 22 judgment to enforce the collection of the reimbursement of 23 the cost of such audit. Any reimbursement collected by OBRE 24 shall be deposited into the Real Estate Audit Fund. 25 (c) Moneys in the Real Estate Audit Fund may be invested 26 and reinvested in the same manner as funds in the Real Estate 27 Recovery Fund. All earnings received from such investment 28 shall be deposited in the Real Estate Audit Fund and may be 29 used for the same purpose as other moneys deposited in the 30 Real Estate Audit Fund. Upon completion of any audit of 31 OBRE, prescribed by the Illinois State Auditing Act, which 32 includes an audit of the Real Estate Audit Fund, OBRE shall 33 make the audit open to inspection by any interested person. HB2566 Engrossed -20- LRB9205328LBcs 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.