Public Act 90-0571 of the 90th General Assembly
Public Act 90-0571
HB1214 Enrolled LRB9003012DPccB
AN ACT to create the Real Estate Appraiser Licensing Act.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Real Estate Appraiser Licensing Act.
Section 5. Legislative purpose. The purpose of this Act
is to repeal and replace Article 2 of the Real Estate License
Act of 1983 and, in order to protect the public, to require
real estate appraisers in federally related transactions to
obtain a real estate appraiser license. It is the intent of
the General Assembly that this Act be consistent with the
provisions of Title XI of the federal Financial Institutions
Reform, Recovery and Enforcement Act of 1989, Title VIII of
the Civil Rights Act of 1968 (Fair Housing Act), and the
Illinois Human Rights Act.
Section 10. Definitions. As used in this Act:
"Appraisal" means an analysis, opinion or conclusion
relating to the nature, quality, value or utility of
specified interests in, or aspects of, identified real
estate, for or in expectation of compensation. An appraisal
may be classified by purpose into either a valuation or an
analysis. A "valuation" is an estimate of the value of real
estate or real property. An "analysis" is a study of real
estate or real property other than estimating value.
"Appraisal assignment" means an engagement for which an
appraiser is employed or retained to act, or would be
perceived by third parties or the public as acting, as a
disinterested third party in rendering an unbiased analysis,
opinion, or conclusion relating to the nature, quality,
value, or utility of specified interests in or aspects of
identified real estate. "Appraisal assignment" includes
valuation work and analysis work.
"Appraiser" or "real estate appraiser" means a person who
performs appraisals.
"Commissioner" means the Commissioner of Banks and Real
Estate.
"Director" means the Director of the Real Estate
Appraisal Administration Division of the Office of Banks and
Real Estate.
"Federally related transaction" means any real estate
related financial transaction that requires a licensed or
certified real estate appraiser under federal law or
regulation.
"Financial institution" means a bank, savings bank,
savings and loan association, credit union, mortgage broker,
mortgage banker, licensee under the Consumer Installment Loan
Act or the Sales Finance Agency Act or a corporate fiduciary,
subsidiary, affiliate, parent company, or holding company of
any such licensee.
"Office" means the Office of Banks and Real Estate.
"Real estate" means an identified parcel or tract of
land, including improvements, if any.
"Real Estate Appraisal Board" or "Board" means the Real
Estate Appraisal Board established in this Act.
"Real estate related financial transaction" means any
transaction involving:
(1) the sale, lease, purchase, investment in
property or exchange of real property, or the financing
of the real property;
(2) the refinancing of real property or interests
in real property; or
(3) the use of real property or interests in
property as security for a loan or investment, including
but not limited to mortgage-backed securities.
"Real property" means the interest, benefits, and rights
inherent in the ownership of real estate.
"Report" means any communication, written or oral, of an
appraisal, review, or consulting service that is transmitted
to a client of a licensee.
"State Certified Residential Real Estate Appraiser" means
a real estate appraiser who holds (i) a license issued for
that title under Article 2 of the Real Estate License Act of
1983 before the effective date of this Act, (ii) a license
issued under this Act upon application for examination
received by the Office before the effective date of this Act
but issued after that date, or (iii) a license issued for
that title under this Act.
"State Certified General Real Estate Appraiser" means a
real estate appraiser who holds (i) a license issued for that
title under Article 2 of the Real Estate License Act of 1983
before the effective date of this Act, (ii) a license issued
under this Act upon application for examination received by
the Office before the effective date of this Act but issued
after that date, or (iii) a license issued for that title
under this Act.
"State Licensed Real Estate Appraiser" means a real
estate appraiser who holds (i) an active license issued for
that title under Article 2 of the Real Estate License Act of
1983 before the effective date of this Act, (ii) a license
issued under this Act upon application for examination
received by the Office before the effective date of this Act
but issued after that date, or (iii) a license issued for
that title under this Act.
"Uniform Standards of Professional Appraisal Practice" or
"USPAP" means the standards of professional appraisal
practice as promulgated by the Appraisal Standards Board of
the Appraisal Foundation.
Section 15. License requirement; title; exemptions.
(a) No person shall engage in the business of, act in
the capacity of, advertise, or assume to act as a real estate
appraiser, develop or report real estate appraisals, or
appraise real estate, in a federally related transaction,
without a license to practice as a real estate appraiser
issued by the Office under this Act. A person who violates
this subsection is guilty of a Class A misdemeanor.
(b) No person, other than a State Certified General Real
Estate Appraiser, State Certified Residential Real Estate
Appraiser, or State Licensed Real Estate Appraiser, shall
assume or use these titles or any other title, designation,
or abbreviation likely to create the impression that the
person is licensed by the State of Illinois as a real estate
appraiser.
Section 20. Director of Real Estate Appraisal
Administration.
(a) The Commissioner shall appoint a Director of Real
Estate Appraisal Administration. The person appointed as the
Director must hold either a current State Certified General
Real Estate Appraiser license or a current State Certified
Residential Real Estate Appraiser license and be a designated
member of at least one of the appraisal organizations that,
at the time of appointment, are represented on the Appraisal
Foundation. The Director shall be credited with all fees and
continuing education requirements that come due during the
term of employment.
(b) The Director shall:
(1) be the direct liaison between the Office of
Banks and Real Estate and the Real Estate Appraisal Board
and shall assist the Board in carrying out its functions
and duties under this Act;
(2) be the direct liaison between the Office of
Banks and Real Estate and real estate appraisers, real
estate appraisal organizations, and other real estate
related organizations;
(3) administer the provisions of this Act, direct
and supervise the Real Estate Appraisal Administration
Division of the Office of Banks and Real Estate, subject
to the approval of the Commissioner;
(4) prepare and circulate to licensed appraisers
educational and informational materials that the Office
of Banks and Real Estate deems necessary for guidance or
assistance to licensed appraisers; and
(5) appoint committees and hire contractors as
necessary to assist in the administration and enforcement
of this Act.
Section 25. Real Estate Appraisal Board.
(a) There is hereby established the Real Estate
Appraisal Board which shall consist of the following 10
voting members appointed by the Governor:
(1) Seven members shall be real estate appraisers
who have been licensed real estate appraisers in the
State of Illinois for not less than 5 years immediately
preceding their appointment. Of those 7 members, at least
4 members shall be State Certified General Real Estate
Appraisers or State Certified Residential Real Estate
Appraisers and at least 2 members shall be State
Certified General Real Estate Appraisers. At least 2 of
the 7 members appointed under this subdivision (1) shall
be members in good standing of an association that
represents the Statewide real estate industry. At least 2
members appointed under this subdivision (1) shall be
members in good standing of an Illinois not-for-profit
corporation incorporated after 1993 that represents and
promotes the interests of the Statewide appraisal
profession.
The membership of a person appointed to the Board
under this subdivision shall automatically terminate in
the event that any such member's license goes to a status
other than active and in good standing. Each of the 7
appraiser members shall be credited with all fees and
continuing education requirements that come due during
his or her appointed term and active service on the
Board.
(2) One member shall be a representative of a
financial institution, as evidenced by his or her
employment with an institution that is a member of a
financial institution association that represents the
interests of Illinois financial institutions.
(3) Two members shall be members of the general
public. The public members shall not be employed by a
financial institution or registered in any state as a
real estate appraiser.
(b) In meeting the appointment criteria prescribed in
this Section, each appointee shall be attributed as being a
member of the Board from only one of the 4 classifications
set forth in subdivisions (1), (2), and (3).
(c) The Director shall act as a member of the Board, but
shall not vote.
(d) Members shall be appointed to 4-year terms, except
that of the initial appointments, 3 members shall be
appointed to serve 4-year terms, 3 members to serve 3-year
terms, 3 members to serve 2-year terms, and 1 member to serve
a one-year term. Appointments to fill vacancies shall be
made in the same manner as original appointments and shall be
for the unexpired portion of the term. A member may be
reappointed for successive terms, but no member shall serve
more than 10 years during his or her lifetime. Upon
expiration of their terms, members of the Board shall
continue to hold office until the appointment of their
successors or until their resignation. Members of the Real
Estate Appraisal Committee, created under the Real Estate
License Act of 1983, who are serving on that Board on the day
preceding the effective date of this Act, shall comprise the
Real Estate Appraisal Board until the Governor makes the
initial appointments in accordance with subsection (a).
(e) The membership of the Board should reasonably
reflect representation from the various geographic and
demographic areas of the State.
(f) The Board shall meet at least quarterly to conduct
its business. Special meetings may be called by the
chairperson or by 3 voting members by providing written
notice of the meeting to all voting members. Written notice
of the time and place of each meeting shall be given to each
voting member of the Board at least 10 days before the
scheduled date of a meeting. Upon the written waiver of the
10-day notice requirement by all of the voting members of the
Board, the Board may meet after less notice.
(g) A majority of the duly appointed and actively
serving voting members of the Board shall constitute a
quorum. If a quorum is present, the action of a majority of
those voting members present shall constitute the action of
the Board.
(h) The voting members of the Board shall annually
elect, at the first regular meeting of the calendar year, a
chairperson and a vice-chairperson from among the voting
members to preside over meetings and a secretary who may be a
non-member. The member elected as chairperson shall serve as
chairperson for a term of one year. The vice-chairperson
shall preside over meetings when the chairperson is absent.
If the elected chairperson dies, resigns as chairperson or is
so physically or mentally disabled that he or she can no
longer serve as chairperson, the Board shall elect a new
chairperson from among the voting members. A member may serve
as chairperson more than once, but no person shall serve as
chairperson for more than 2 consecutive full terms.
(i) Each member shall receive a per diem stipend as the
Commissioner shall determine. Each member shall be paid
necessary expenses while engaged in the performance of his or
her Board duties. Subject to appropriation, the Commissioner
shall disburse per diem stipends and expenses from moneys in
the Appraisal Administration Fund.
(j) The Governor may terminate the appointment of a
member for cause which in the opinion of the Governor
reasonably justifies the termination. Cause for termination
shall include, but not be limited to, misconduct, incapacity,
neglect of duty, or missing 4 Board meetings during one
calendar year.
Section 30. Powers and duties of the Board. The Real
Estate Appraisal Board has the following powers and duties:
(a) The Board shall conduct hearings on charges against
licensees under this Act for violations of this Act and shall
report its findings on the charges to the Office of Banks and
Real Estate.
(b) The Board shall make recommendations to the Office
of Banks and Real Estate on rules and procedures to implement
the provisions and policies of this Act.
Section 35. Powers and duties of the Office of Banks and
Real Estate.
(a) None of the functions, powers, or duties enumerated
in Section 70, 90, 95, 105, or 110 shall be exercised by the
Office of Banks and Real Estate except upon the action and
report in writing by the Board.
(b) The Office of Banks and Real Estate, after
considering the recommendations of the Board, may adopt rules
consistent with the provisions of this Act to administer and
enforce this Act. The Office of Banks and Real Estate may, no
later than 60 days after the effective date of this Act,
adopt emergency rules pursuant to Section 5-45 of the
Illinois Administrative Procedure Act for the implementation
of this Act. For purposes of the Illinois Administrative
Procedure Act, the adoption of initial rules shall be
considered an emergency and necessary for the public
interest, safety, and welfare.
(c) The Office of Banks and Real Estate has the
following additional powers and duties:
(1) to receive applications for State appraiser
licensing, for licensing of appraisal course providers,
and for approval of appraisal education courses;
(2) to establish the administrative procedures for
processing applications for State licensing of
appraisers, appraisal course providers, and appraisal
education courses;
(3) to approve or disapprove applications and to
issue licenses;
(4) to maintain a registry of the names and
addresses of all licenses issued under this Act and to
transmit the registry, along with any National registry
fees that may be required, to the entity specified by,
and in a manner consistent with, Title XI of the federal
Financial Institutions Reform, Recovery and Enforcement
Act of 1989;
(5) to retain records and application materials
submitted to it;
(6) to assist the Board in any other manner the
Board may request.
(d) The Commissioner has the power to refuse to issue or
renew a license or to suspend, revoke, reprimand, place on
probation, or otherwise discipline a license issued under
this Act, upon recommendation of the Board pursuant to the
disciplinary proceedings provided for in this Act.
The Commissioner shall give due consideration to all
recommendations of the Board on questions involving the
administration of this Act, standards of professional
conduct, and the discipline and examination of candidates
under this Act.
If the Commissioner disagrees with or takes action
contrary to a recommendation of the Board, the Commissioner
shall provide the Board with a written and specific
explanation of the disagreement or action within 30 days of
the date that the written recommendation is delivered to the
Commissioner.
(e) The Office of Banks and Real Estate shall adopt or
amend rules in accordance with federal laws and regulations
concerning appraisals in federally related transactions.
(f) Without in any manner limiting the power of the
Office of Banks and Real Estate to conduct investigations,
the Director of Real Estate Appraisal Administration may
appoint one or more State Certified Residential Real Estate
Appraisers or State Certified General Real Estate Appraisers
to conduct or assist in any investigation pursuant to this
Act. Appraisers appointed under this subsection may receive
remuneration as determined by the Commissioner.
Section 40. Fees; Appraisal Administration Fund.
(a) The Office of Banks and Real Estate may provide by
rule for fees to be paid by applicants, licensees, and other
persons under this Act to cover the reasonable costs of the
Office of Banks and Real Estate in administering the
provisions of the Act.
(b) All fees collected under this Act shall be deposited
into the Appraisal Administration Fund, created in the State
Treasury under the Real Estate License Act of 1983. Pursuant
to appropriation, moneys deposited into the Fund may be used
by the Office of Banks and Real Estate to administer and
enforce this Act and for other purposes as provided by law.
Section 45. Licensing process.
(a) The Office of Banks and Real Estate, directly or
through its authorized designee, shall issue a license to
each applicant who qualifies for a license under this Act in
the form and size as shall be prescribed by the Office.
Applications for original licensure, renewal licensure, and
examinations as an appraiser, an appraisal education
provider, or for approval of an appraisal course shall be
made in writing to the Office of Banks and Real Estate on
forms prescribed by the Office.
When an applicant (i) has had his or her license revoked
or otherwise disciplined or supervised on a prior occasion,
(ii) is found to have committed a practice enumerated in
Section 90, or (iii) has been convicted of forgery,
embezzlement, obtaining money under false pretenses, larceny,
extortion, conspiracy to defraud, or a similar offense or has
been convicted of a felony involving moral turpitude in a
court of competent jurisdiction in this State or another
state, district, or territory of the United States or of a
foreign country, the Office of Banks and Real Estate shall
consider the prior revocation, conduct, or conviction in its
determination of the applicant's moral character and whether
to grant the applicant a license. In its consideration of the
prior revocation, conduct, or conviction, the Office of Banks
and Real Estate shall take into account the nature of the
conduct, any aggravating or extenuating circumstances, the
time elapsed since the revocation, conduct, or conviction,
the rehabilitation or restitution performed by the applicant,
and any other factors the Office of Banks and Real Estate
deems relevant. When an applicant has made a false statement
of material fact on his or her application, the false
statement may in itself be sufficient grounds to refuse to
issue or renew a license, to suspend or revoke a license, or
to reprimand, place on probation, or otherwise discipline a
licensee.
(b) Appropriate fees, as set by rule, shall accompany
all applications for original licensure, renewal licensure,
and examination. All fees are nonrefundable.
(c) At the time of filing an application for licensure,
an applicant shall sign a pledge to comply with this Act and
shall state that he or she understands the types of
misconduct for which disciplinary proceedings may be
initiated against a real estate appraiser under this Act.
Section 50. Examination requirement.
(a) A license as a real estate appraiser shall not be
issued to a person who has not demonstrated, through a
comprehensive written examination process provided for by
rule, competence to transact the business of a real estate
appraiser, within the rank for which the applicant has
applied.
(b) The Office of Banks and Real Estate, or its
designated testing service, shall conduct examinations for
appraiser licensure at times and places that the Office of
Banks and Real Estate determines are sufficient and
appropriate.
Section 55. Examination prerequisites. As a prerequisite
to taking the examination for a rank of appraiser licensure,
an applicant shall (i) present evidence of successful
completion of a 4-year course of study in a high school or
secondary school approved by the Illinois State Board of
Education or an equivalent course of study as determined by
an examination conducted by the Illinois State Board of
Education which shall be verified under oath by the applicant
and (ii) present evidence, satisfactory to the Office of
Banks and Real Estate, that the applicant has successfully
completed not less than 150 classroom hours in the case of an
applicant for a State Certified General Real Estate Appraiser
license, 90 classroom hours in the case of an applicant for a
State Certified Residential Real Estate Appraiser license, or
60 classroom hours in the case of an applicant for a State
Licensed Real Estate Appraiser license, or that amount
mandated under Title XI of the federal Financial Institutions
Reform, Recovery and Enforcement Act of 1989, whichever is
greater, or their equivalent as provided by rule, of courses
in subjects relating to real estate appraisal. In addition,
the applicant shall present evidence of successful completion
of 15 classroom hours relating to standards of professional
practice. The classroom hours required by this Section shall
be obtained from one or more of the following entities
approved by the Office of Banks and Real Estate:
(1) a college or university;
(2) a community college or junior college;
(3) a real estate appraisal or real estate related
organization;
(4) a trade association or organization that
consists in whole or in part of members engaged in real
estate appraising; or
(5) any other provider approved by the Office of
Banks and Real Estate.
The Office of Banks and Real Estate shall require by rule
completion of course work in fair housing and fair lending,
which shall be included within the requirements of this
Section.
Section 60. Experience requirement.
(a) A license as a State Certified General Real Estate
Appraiser or State Certified Residential Real Estate
Appraiser shall not be issued to a person who does not
possess 2 years of experience, or that amount mandated under
Title XI of the federal Financial Institutions Reform,
Recovery and Enforcement Act of 1989, whichever is greater,
or their equivalent as provided by rule of the Office of
Banks and Real Estate. For the purposes of this Section, one
year of experience means 1,000 hours of experience.
Approved experience shall include fee appraisal, staff
appraisal, mass appraisal in accordance with the USPAP, ad
valorem tax appraisal, mass ad valorem tax appraisal in
accordance with the USPAP, review appraisal in accordance
with the USPAP, highest and best use analysis, feasibility
analysis or study in accordance with the USPAP, real estate
sales and brokerage, real estate consulting in accordance
with the USPAP, real property management, and other related
experience approved by the Office of Banks and Real Estate
and in accordance with the USPAP. Nevertheless, the amount of
credit granted for this experience shall be equivalent to the
amount of credit that may be granted for the experience under
Title XI of the federal Financial Institutions Reform,
Recovery and Enforcement Act of 1989.
An applicant for a license shall provide to the Office of
Banks and Real Estate on forms prescribed by rule of the
Office a summary of the level and type of experience for
which the applicant is claiming credit. To obtain experience
credit for the preparation of a written appraisal report, the
applicant shall provide in the experience summary the date of
appraisal, the type of property, the approximate size of the
property (including land and improvements), and the general
location of the property. Nothing in this Section shall
require, as a condition of obtaining experience credit, that
a real estate appraiser disclose the identity of the client
for whom the appraisal was performed. The Office of Banks and
Real Estate may require that an applicant provide samples of
the applicant's work for which experience is claimed.
Of the total experience requirement, at least 50% must be
earned in one or more of the following areas: fee appraisal,
staff appraisal, ad valorem tax appraisal, review appraisal,
or real estate consulting.
(b) An applicant who has been engaged in appraising
real property for ad valorem purposes as a local assessment
officer, as defined in Section 1-85 of the Property Tax Code
or as a deputy or employee of a local assessment officer,
shall receive experience credit for the number of hours the
applicant was engaged in one or more of the following duties:
(1) the analysis and establishment of the value of
properties through the cost, income, and market sale
appraisal techniques;
(2) model development and calibration in relation
to mass ad valorem tax assessments; and
(3) the review and analysis of appraisals employing
cost, income, and market sale appraisal techniques.
The experience under this subsection (b) shall not be
required to be set forth in the form of the experience
summary as provided in subsection (a) of Section 60. All
persons who seek experience credit under this subsection (b)
shall attach his or her own affidavit as a supporting
document to the application form of the Office of Banks and
Real Estate. The applicant's affidavit shall detail the
experience for which credit is being claimed and the length
of time the applicant was engaged in these duties as a local
assessment officer, or deputy or employee of a local
assessment officer. The applicant shall attach to this
affidavit an Assessment Experience Certification form
executed by the local assessment officer or his or her
designee in the following form:
"Assessment Experience Certification.
Pursuant to the provisions of subsection (b) of
Section 60 of the Real Estate Appraiser Licensing Act, it
is hereby certified that (Applicant's Name) was engaged
in appraising (residential .....%) (nonresidential....%)
real estate for ad valorem tax purposes as a local
assessment officer, or as a deputy or employee of a local
assessment officer, from (date) through (date) and
during this time period was engaged in one or more of the
following duties: (1) the analysis and establishment of
the value of properties through the cost, income, and
market sale appraisal techniques; (2) model development
and calibration in relation to mass ad valorem tax
assessments; (3) the review and analysis of appraisals
employing cost, income, and market sale appraisal
techniques, and that the experience is accurately
described in the affidavit to which this Certificate is
attached and supported by assessment records available
under Section 14-30 of the Property Tax Code or the
Freedom of Information Act.
By:
_________________________
Local Assessment Officer"
Upon submission of the application, affidavit, and the
Assessment Experience Certification form, the Commissioner
shall grant the experience credit set forth in this
subsection. Notwithstanding other provisions of this Act, the
amount of experience credit granted for appraising real
property for ad valorem tax purposes as a local assessment
officer, or deputy or employee of a local assessment officer,
shall be equivalent to the amount of credit that may be
granted for that experience under the provisions of Title XI
of the federal Financial Institutions Reform, Recovery and
Enforcement Act of 1989.
(c) An applicant who has been licensed for 5 of the
previous 7 years with the Office of Banks and Real Estate as
a real estate broker or real estate salesperson shall receive
credit for appraisal experience equal to 40% of the total
experience requirement. This experience as a real estate
broker or real estate salesperson shall not be required to be
set forth in the form required in subsection (a). The balance
of the experience requirement shall be set forth in the form
of the experience summary as provided in subsection (a).
(d) Of the total experience requirement for State
Certified General Real Estate Appraisers, at least 50% must
be approved experience relating to nonresidential real
estate.
(e) Of the total experience required for State Certified
Residential Real Estate Appraisers, at least 50% must be
approved experience relating to residential real estate.
(f) Proof of experience shall not be required for
licensure as a State Licensed Real Estate Appraiser. The
license of a State Licensed Real Estate Appraiser who has
been licensed for a period of 2 years shall be renewed only
if the licensee meets the following experience requirements:
(1) Prior to the first renewal after the licensee
has been licensed for 2 years, the licensee possesses at
least 500 hours of experience. A licensee may, at the
time of applying for the first renewal, submit 1,000
hours of experience.
(2) Unless the licensee submitted 1,000 hours of
experience under the provisions of subdivision (1), prior
to the second renewal after the licensee has been
licensed for a period of 2 years, the licensee possesses
500 hours experience. The experience required under this
subdivision must be earned after the first renewal after
the licensee has been licensed for a period of 2 years.
All real estate appraisal experience granted shall be in
accordance with this Section.
(g) The Office of Banks and Real Estate may waive the
experience requirement of this Section for good cause. A
renewal applicant seeking renewal of a license without having
fully complied with the experience requirement of subsection
(a) shall file with the Office of Banks and Real Estate a
renewal application, the required renewal fee, an affidavit
setting forth the facts concerning the noncompliance, a
request for waiver of the experience requirement on the basis
of those facts, and a waiver processing fee of $25. If the
Office of Banks and Real Estate finds from the affidavit or
any other evidence submitted that good cause has been shown
for granting a waiver, the Office of Banks and Real Estate
shall waive enforcement of the experience requirement for the
renewal period for which the applicant has applied. For
purposes of this subsection, "good cause" means an inability
of the applicant to reasonably complete the requisite
appraisal experience because there has been an insufficient
amount of appraisal activity in the geographic area where the
applicant practices real estate appraising. In determining
whether good cause exists, the Office of Banks and Real
Estate may consider (i) the amount of appraisal experience
earned by the applicant in proportion to the total appraisal
activity within the geographic area where the applicant
practices real estate appraising and (ii) the reasonableness
of the geographic area the applicant defines as the area
where the applicant practices real estate appraising. "Good
cause" shall also include an inability of the applicant to
complete the experience requirement because of extreme
hardship, which includes but is not limited to an
incapacitating illness or full-time service in the armed
services in the United States of America, during a
substantial part of the prerenewal period.
Section 65. Issuance of license; renewal. The Office of
Banks and Real Estate shall issue a license as a real estate
appraiser or as a real estate appraisal education provider or
shall approve an appraisal course, as appropriate, to a
person, course provider, or courses meeting the requirements
for licensure under this Act. The term of a license issued
under this Act shall be established by rule. The expiration
date of the license shall appear on the license. The Office
of Banks and Real Estate shall establish by rule procedures
for the issuance of renewal notices and procedures for the
renewal of a license under this Act.
Section 70. Nonresident licensure and reciprocity.
(a) A nonresident may be licensed under this Act upon
complying with all the provisions and conditions required for
licensure in this State and upon payment of the appropriate
fees.
(b) A nonresident may be licensed under this Act by
reciprocity, upon complying with all the provisions of a
reciprocity agreement between this State and another state,
territory of the United States, or District of Columbia. Upon
the recommendation of the Board, the Office of Banks and Real
Estate shall enter into an agreement of reciprocity with an
appraiser regulation jurisdiction of another state, territory
of the United States, or the District of Columbia that, in
the opinion of the Board and Office of Banks and Real Estate,
has similar, equal, or greater qualifications and
requirements for licensure as an appraiser.
(c) Every nonresident applicant shall file an
irrevocable consent that suits and actions arising out of
appraisal work in this State may be commenced against the
licensed appraiser in the circuit court of a county of this
State in which the cause of action arose or in which the
plaintiff resides by the service of legal process on the
Director of Real Estate Appraisal Administration, the
irrevocable consent agreeing that service on the Director
shall be acknowledged in all courts to be valid and binding
as if personal service of process had been made upon the
nonresident in this State. If process is served upon the
Director of Real Estate Appraisal Administration, it shall be
the Director's duty to forward a copy of the process by
registered mail to the last known address of the licensed
appraiser against whom the process is directed.
(d) The Office of Banks and Real Estate shall adopt
rules consistent with Title XI of the Federal Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
permitting nonresident licensed appraisers to practice in
Illinois on a temporary basis.
Section 75. Scope of practice.
(a) State Licensed Real Estate Appraisers, State
Certified Residential Real Estate Appraisers, and State
Certified General Real Estate Appraisers are not limited in
their scope of practice and may independently or in
cooperation with other appraisers provide services of
appraisal, review, or consulting relating to any type
property for which the licensee is experienced and competent.
All such appraisal practice must be in compliance with the
competency provision of the USPAP.
(b) The scope of practice of individual licensees may be
limited as a disciplinary measure through an Order of Facts
and Findings, a Consent Order, or a Consent to Administrative
Supervision issued by the Commissioner.
Section 80. Prohibited licensing of entities.
(a) The title "State Certified General Real Estate
Appraiser", "State Certified Residential Real Estate
Appraiser", or "State Licensed Real Estate Appraiser" may
only be used to refer to a person licensed as an appraiser
under this Act and may not be used following or immediately
in connection with the name or signature of a firm,
partnership, limited liability company, corporation, or
group, or in a manner that it might be interpreted as
referring to a firm, partnership, limited liability company,
corporation, group, or anyone other than an individual holder
of a license.
(b) No license shall be issued under this Act to a
corporation, partnership, limited liability company, firm, or
group. This subsection shall not be construed to prevent a
licensee from signing an appraisal report on behalf of a
corporation, partnership, limited liability company, firm, or
group practice.
Section 85. Continuing education requirements.
(a) As a prerequisite to renewal of an appraiser
license, a renewal applicant shall present evidence
satisfactory to the Office of Banks and Real Estate of having
completed not less than 20 hours of continuing education per
renewal period or that amount mandated under Title XI of the
Federal Financial Institutions Reform, Recovery and
Enforcement Act of 1989, whichever is greater, or their
equivalent as provided by rule, from courses approved by the
Office and presented by real estate appraisal education
providers licensed by the Office.
The Office of Banks and Real Estate may provide by rule
for the temporary waiver of continuing education requirements
for good cause.
(b) In lieu of meeting the requirements of subsection
(a) of this Section, an applicant for renewal of a license
may satisfy all or part of the requirements by presenting
evidence of participation, other than as a student, in
educational processes and programs approved pursuant to
subsection (a) that relate to real property appraisal theory,
practices, or techniques, including but not limited to
teaching, program development, and preparation of textbooks,
monographs, articles, and other instructional materials.
(c) The Office of Banks and Real Estate may by rule
require periodic testing of a licensee's understanding of
this Act. Continuing education credit hours may be awarded
for successful completion of the periodic examination.
(d) The Office of Banks and Real Estate shall require by
rule the completion of course work in fair housing and fair
lending, which shall be included within the requirements of
this Section.
Section 90. Grounds for disciplinary action.
(a) Pursuant to the action and report in writing of the
Board, the Office of Banks and Real Estate may suspend,
revoke, or refuse to issue or renew the license of an
appraiser or place on probation or reprimand a licensee, may
impose a civil penalty not to exceed $10,000 upon a licensee,
or the holder of a license may be placed on administrative
supervision or otherwise disciplined for any one or
combination of the following reasons:
(1) Procuring or attempting to procure a license by
knowingly making a false statement, submitting false
information, refusing to provide complete information in
response to a question in an application for licensure or
through any form of fraud or misrepresentation.
(2) Failing to meet the minimum qualifications for
licensure as an appraiser established by this Act.
(3) Paying money, other than for the fees provided
for by this Act, or anything of value to a member or
employee of the Board or Office of Banks and Real Estate
to procure licensure under this Act.
(4) A conviction of a crime, including conviction
based upon a plea of guilty or nolo contendere.
(5) An act or omission involving dishonesty, fraud,
or misrepresentation with the intent to substantially
benefit the licensee or another person or with intent to
substantially injure another person.
(6) Violation of a provision or standard for the
development or communication of real estate appraisals as
provided in Section 110 of this Act or by rule.
(7) Failure or refusal without good cause to
exercise reasonable diligence in developing and reporting
or communicating an appraisal.
(8) Negligence or incompetence in developing and
reporting or communicating an appraisal.
(9) Willfully disregarding or violating a provision
of this Act or its rules.
(10) Accepting an appraisal assignment for
valuation when the employment itself is contingent upon
the appraiser reporting a predetermined estimate,
analysis, or opinion or when the fee to be paid is
contingent upon the opinion, conclusion, or valuation
reached or upon the consequences resulting from the
appraisal assignment.
(11) Developing valuation conclusions based on the
race, color, religion, sex, national origin, ancestry,
age, marital status, familiar status, physical or mental
handicap, or unfavorable military discharge, as defined
under the Illinois Human Rights Act, of the prospective
or present owners or occupants of the area or property
under appraisal.
(12) Violation of the confidential nature of
government records to which the licensee gained access
through employment or engagement as an appraiser by a
government agency.
(13) Adjudication of liability in a civil
proceeding on grounds of fraud, misrepresentation, or
deceit. In a disciplinary proceeding based upon a finding
of civil liability, the appraiser shall be afforded an
opportunity to present mitigating and extenuating
circumstances, but may not collaterally attack the civil
adjudication.
(14) Adjudication of liability in a civil
proceeding for violation of a State or federal fair
housing law.
(15) Engaging in misleading or untruthful
advertising or using a trade name or insignia of
membership in a real estate appraisal or real estate
related organization of which the licensee is not a
member.
(16) Failure to fully cooperate with an Office
investigation by knowingly making a false statement,
submitting false information, or refusing to provide
complete information in response to a question or other
requests by the Office.
(17) Failing to include within the certificate of
appraisal for all written appraisal reports the
appraiser's license number, licensure title (State
Licensed Real Estate Appraiser, State Certified
Residential Real Estate Appraiser, or State Certified
General Real Estate Appraiser), and the date of
expiration of the license. All appraisers providing
significant contribution to the development and reporting
of an appraisal must be disclosed in the appraisal
report. It is a violation of this Act for an appraiser
to sign a report, transmittal letter, or appraisal
certification knowing that a person providing significant
contribution to the report has not been disclosed in the
appraisal report.
(b) Pursuant to the action and report in writing of the
Board, the Office of Banks and Real Estate may suspend,
revoke, place on probation, reprimand, or otherwise
discipline the license of an appraisal education course
provider or course license subordinate to the providership,
or may refuse to issue or renew a course license or
provider's license and may also impose a civil penalty not to
exceed $10,000 upon the holder of the course or provider's
license for any of the following acts or omissions:
(1) Procuring or attempting to procure licensure by
knowingly making a false statement, submitting false
information, refusing to provide complete information in
response to a question in an application for licensure or
through any form of fraud or misrepresentation.
(2) Failing to comply with covenants certified to
on the application for licensure as an appraisal
education provider, appraisal education subprovider,
prelicensure course, or continuing education course.
(3) An act or omission involving dishonesty, fraud,
or misrepresentation by the course provider or any
employees or independent contractors of the provider.
(4) Engaging in misleading or untruthful
advertising.
(5) Failing to retain competent instructors in
accordance with rules adopted under this Act.
(6) Failing to meet the topic or time requirements
for course approval as a prelicensure curriculum course
or a continuing education course.
(7) Failing to administer a licensed course using
the course materials, syllabus, and examinations
submitted as the basis of licensure.
(8) Failing to provide an appropriate classroom
environment for presentation of courses with
consideration for student comfort, acoustics, lighting,
seating, work space, and visual aid material.
(9) Failing to maintain student records in
compliance with rules adopted under this Act.
(10) Failing to provide certificates, transcripts,
or other student records to the Office or student as may
be required by rule.
(11) Failure to fully cooperate with an Office
investigation by knowingly making a false statement,
submitting false information, or refusing to provide
complete information in response to a question or other
requests by the Office.
(c) Notwithstanding the provisions of this Act
concerning the conduct of hearings and recommendations for
disciplinary actions, a conference panel of the Board may
recommend to the Office of Banks and Real Estate who shall
have the authority to negotiate settlement agreements with
State Licensed Real Estate Appraisers, State Certified
General Real Estate Appraisers, State Certified Residential
Real Estate Appraisers, and appraiser education licensees or
applicants, resulting in disciplinary Consent Orders. Consent
Orders may provide for any of the forms of discipline
provided in this Act. Consent Orders shall provide that they
were not entered into as a result of any coercion by the
Office of Banks and Real Estate, the Director of Real Estate
Appraisal Administration, or the Board. A Consent Order shall
be filed with the Commissioner along with the Board's
recommendation and accepted or rejected by the Commissioner
in a timely manner.
(d) Notwithstanding the provisions of this Act
concerning the conduct of hearings and recommendations for
disciplinary actions, a conference panel of the Board may
recommend to the Office of Banks and Real Estate who on the
Board shall have the authority to negotiate settlement
agreements with State Licensed Real Estate Appraisers, State
Certified General Real Estate Appraisers, State Certified
Residential Real Estate Appraisers, appraiser education
licensees or applicants, resulting in disciplinary Consent to
Administrative Supervision Orders. Consent to Administrative
Supervision Orders may be offered with conditions that may
include but shall not be limited to the respondent's
attendance and successful completion of appraisal courses,
payment of part or all of the investigation and prosecution
costs associated with the complaint and replacement of
appraiser rank with a lower rank. Consent to Administrative
Supervision Orders shall provide that they were not entered
into as a result of coercion by the Office of Banks and Real
Estate, the Director of Real Estate Appraisal Administration,
or the Board. Consent to Administrative Supervision Order
shall be filed with the Commissioner along with the Board's
recommendation and accepted or rejected by the Commissioner
in a timely manner. A licensee subject to a Consent to
Administrative Supervision Order shall be considered by the
Office as an active appraiser in good standing and the
records regarding an investigation and a Consent to
Administrative Supervision Order are confidential and shall
not be released by the Office except as mandated by law.
However, the complainant shall be notified that his or her
complaint has been resolved by administrative supervision of
the respondent.
(e) Civil penalties and costs collected under this
Section are to be deposited into the Appraisal Administration
Fund.
Section 95. Unlicensed practice; civil penalty.
(a) A person who practices, offers to practice, attempts
to practice, or holds himself or herself out to practice as a
State Licensed Real Estate Appraiser, State Certified
Residential Real Estate Appraiser, or State Certified General
Real Estate Appraiser without being licensed under this Act
shall, in addition to any other penalty provided by law, pay
a civil penalty to the Office of Banks and Real Estate in an
amount not to exceed $5,000 for each offense as determined by
the Office of Banks and Real Estate. The civil penalty shall
be assessed by the Office of Banks and Real Estate after a
hearing is held in accordance with the provisions set forth
in this Act regarding the provision of a hearing for the
discipline of a licensee.
(b) The Office of Banks and Real Estate has the
authority and power to investigate any and all unlicensed
appraiser activity concerning federally related transactions.
(c) Civil penalties imposed by the Office of Banks and
Real Estate shall be enforceable in the Circuit Court. The
Office shall petition the Court for an order to enforce
collection of the penalty and, if the Court finds it has
jurisdiction over the person against whom the penalty was
imposed, the Court shall issue the appropriate order. Any
civil penalties collected by the Court shall be forwarded to
the State Treasurer. In addition to or in lieu of the
imposition of a civil penalty, the Office may report a
violation and the failure or refusal to comply with the order
of the Office to the Attorney General and the appropriate
State's Attorney.
Section 100. Investigation; notice; hearing.
(a) Upon the motion of either the Office of Banks and
Real Estate or the Board, or upon the verified complaint in
writing of a person setting forth facts that, if proven,
would constitute grounds for suspension, revocation, or other
disciplinary action against a licensee or applicant for
licensure, the Office of Banks and Real Estate shall cause to
be investigated the actions of any person so accused who
holds or represents to hold a license or has applied for
licensure under this Act.
(b) Before taking any disciplinary action, the Director
of Real Estate Appraisal Administration shall notify the
holder of the license, in writing, of the charges that are
the basis of the disciplinary action and shall direct the
applicant or licensee to file a written answer under oath
within 20 days after the service of the notice to the
Director of Real Estate Appraisal Administration. The
notification shall also inform the licensee of his or her
right to be heard in person or by legal counsel; that the
hearing will be afforded not sooner than 30 days after
receipt of the answer to the specific charges; that failure
to file an answer will result in default being entered
against the applicant or licensee; and that the license may
be suspended, revoked, or placed on probationary status or
other disciplinary action may be taken, including limiting
the scope, nature, or extent of practice, as recommended by
the conference panel of the Board and with the concurrence of
the Commissioner. If the licensee or applicant fails to file
an answer after receiving notice, his or her license may, at
the discretion of the Office of Banks and Real Estate, be
suspended, revoked, or placed on probationary status or the
Office of Banks and Real Estate may take whatever
disciplinary action it deems proper, including limiting the
scope, nature, or extent of the person's practice or imposing
a fine, without a hearing. The written notice shall be
considered legal service and may be served personally or sent
by registered or certified mail to the last known address of
the holder of the license.
(c) The Office of Banks and Real Estate has the power to
issue subpoenas and subpoena duces tecum to bring before it
any person in this State to take testimony or to require
production of any records relevant to an inquiry or hearing
by the Board in the same manner as prescribed by law in
judicial proceedings in the courts of this State. In a case
of refusal of a witness to attend or testify or to produce
books or papers concerning a matter upon which he or she
might be lawfully examined, the circuit court of the county
where the hearing is held, upon application of the Office of
Banks and Real Estate or a party to the proceeding, may
compel obedience by proceeding as for contempt.
Section 105. Hearing.
(a) The hearing on the charges shall be held at a time
and place prescribed by the Office of Banks and Real Estate
and in accordance with the Illinois Administrative Procedure
Act.
(b) If on the conclusion of the hearing the Board
determines that a real estate appraiser licensed in this
State or a real estate appraiser education licensee is guilty
of a violation of a provision of this Act, it shall prepare a
finding of fact and a recommendation that the appraiser be
reprimanded, placed on probation, or otherwise disciplined or
that the appraiser's license be suspended or revoked or
otherwise disciplined. The Commissioner shall give due
consideration to the recommendations of the Board and shall
then enter a decision and order in the matter. If the
Commissioner takes action contrary to the recommendation of
the Board, the Commissioner shall file with the Board in
writing the action taken and the specific reasons for his or
her actions that are contrary to the Board's recommendation.
(c) A final administrative decision of the Commissioner
is subject to judicial review pursuant to the provisions of
the Administrative Review Law.
(d) An appraisal license that has been revoked as a
result of disciplinary action shall not be reinstated for a
period of 2 years from the date of revocation and only then
after the Board has reviewed the application for
reinstatement and recommended that the revoked license be
reinstated by the Office of Banks and Real Estate. In its
recommendation the Board must cite the basis of the
recommendation including its consideration of the applicant's
recent continuing education attendance.
(e) Notwithstanding the provisions of this Act
concerning the conduct of hearings and recommendations for
disciplinary actions, the Office of Banks and Real Estate has
the authority to negotiate agreements with appraisers and
appraiser education licensees or applicants for licensure
which agreements shall be recorded as disciplinary Consent
Orders, or in lieu of publishable discipline, Consent to
Administrative Supervision Orders, as described in
subsections (b), (c), and (d) of Section 90.
(f) At any time after the revocation of a license, the
Commissioner may restore it to the accused person or course
provider, upon the written recommendation of the Board.
Section 110. Standards of practice. All licensees under
this Act must comply with standards of professional appraisal
practice adopted by the Office of Banks and Real Estate at
the recommendation of the Board. The Office of Banks and Real
Estate may adopt, as part of its own rules, the Uniform
Standards of Professional Appraisal Practice as published
from time to time by the Appraisal Foundation. The Office of
Banks and Real Estate shall consider federal laws and
regulations regarding the licensure of real estate appraisers
prior to adopting its own rules for the administration of
this Act.
Section 115. Retention of records. An appraiser
licensed under this Act shall retain for 5 years originals or
true copies of (i) all written contracts engaging his or her
services for real property appraisal work, and (ii) all
appraisal reports, exactly as transmitted to the client, and
supporting data assembled and formulated by the appraiser in
developing and reporting the appraisal. The 5-year period for
retention of records is applicable to each engagement of
services of the appraiser and shall commence upon the date of
the submittal of the appraisal to the client unless, within
the 5-year period, the appraiser is notified that the
appraisal or appraisal report is involved in litigation, in
which event the 5-year period for the retention of records
shall commence upon the date of the final disposition of the
litigation. This record retention requirement also applies to
contracts and reports concerning appraisals listed for
experience credit, which shall be available for Office review
for a period of 5 years from the date the application for
examination is received by the Office.
Section 120. Statute of limitations. No action may be
taken under this Act against a person licensed under this Act
unless the action is commenced within 5 years after the
occurrence of the alleged violation. A continuing violation
will be deemed to have occurred on the date when the
circumstances last existed that gave rise to the alleged
continuing violation.
Section 125. Savings provisions. This Act is the
successor to the provisions of Article 2 of the Real Estate
License Act of 1983. Any persons formerly subject to the
provisions of Article 2 of the Real Estate License Act of
1983 shall be subject to this Act. Any actions taken
pursuant to Article 2 of the Real Estate License Act of 1983,
including the issuance of licenses or certificates, the
imposition of disciplinary proceedings, the holding of
hearings, and any other administrative action taken by the
Commissioner or the Real Estate Appraisal Board and all
rights, powers, and duties conferred under Article 2 of the
Real Estate License Act of 1983 shall be valid under this Act
and shall continue in full force and effect.
Section 130. Severability clause. If a provision of this
Act or its application to a person or circumstance is held
invalid, the invalidity does not affect other provisions or
applications of this Act that can be given effect without the
invalid provision or application, and to this end, the
provisions of this Act are severable.
Section 225. The Regulatory Agency Sunset Act is amended
by changing Section 4.18 as follows:
(5 ILCS 80/4.18)
Sec. 4.18. Acts Act repealed January 1, 2008. The
following Acts are Act is repealed on January 1, 2008:
The Acupuncture Practice Act.
The Pharmacy Practice Act of 1987.
The Podiatric Medical Practice Act of 1987.
The Nursing Home Administrators Licensing and
Disciplinary Act.
The Physician Assistant Practice Act of 1987.
The Illinois Nursing Act of 1987.
The Marriage and Family Therapy Licensing Act.
The Clinical Social Work and Social Work Practice Act.
The Illinois Speech-Language Pathology and Audiology
Practice Act.
The Real Estate Appraiser Licensing Act.
(Source: P.A. 89-706, eff. 1-31-97; 90-61, eff. 12-30-97;
90-69, eff. 7-8-97; 90-76, eff. 7-8-97; 90-150, eff.
12-30-97; 90-248, eff. 1-1-98; revised 9-30-97.)
Section 250. The Real Estate License Act of 1983 is
amended by changing Sections 15 and 23 as follows:
(225 ILCS 455/15) (from Ch. 111, par. 5815)
Sec. 15. The Office of Banks and Real Estate may provide
by rule for fees to be paid by applicants and licensees
(other than applicants and licensees under Article 2 of this
Act) to cover the reasonable costs of the Office of Banks and
Real Estate in administering and enforcing the provisions of
this Act (other than the provisions of Article 2 of this
Act). The Office of Banks and Real Estate may also provide by
rule for general fees to cover the reasonable expenses of
carrying out other functions and responsibilities under this
Act (other than Article 2 of this Act). The rules promulgated
hereunder shall include, but need not be limited to the
following:
(1) The fee for an initial license for real estate
salespersons and real estate brokers shall include a $10 fee
for deposit in the Real Estate Recovery Fund as provided in
Section 23, and a $5 fee for deposit in the Real Estate
Research and Education Fund for use as provided in Section
16. Any moneys derived from renewal license fees that may
have been deposited or designated for deposit into the Real
Estate Recovery Fund or the Real Estate Research and
Education Fund pursuant to this paragraph between July 1,
1995 and the effective date of this amendatory Act of 1996
shall be transferred to or deposited into the Real Estate
License Administration Fund.
(2) The fee for an initial license for a partnership or
corporation shall include a $10 fee for deposit in the Real
Estate Recovery Fund as provided in Section 23, and a $5 fee
for deposit in the Real Estate Research and Education Fund
for use as provided in Section 16.
(3) The fee for an initial license for a branch office
shall include a $5 fee for deposit in the Real Estate
Research and Education Fund for use as provided in Section
16.
(Source: P.A. 88-683, eff. 1-24-95; 89-23, eff. 7-1-95;
89-508, eff. 7-3-96; 89-706, eff. 1-31-97.)
(225 ILCS 455/23) (from Ch. 111, par. 5823)
Sec. 23. The Office of Banks and Real Estate shall
maintain a Real Estate Recovery Fund from which any person
aggrieved by an act, representation, transaction or conduct
of a duly licensed broker, salesperson or unlicensed
employee, which is in violation of Article 1 of this Act or
the regulations promulgated pursuant thereto, or which
constitutes embezzlement of money or property or results in
money or property being unlawfully obtained from any person
by false pretenses, artifice, trickery or forgery or by
reason of any fraud, misrepresentation, discrimination or
deceit by or on the part of any such licensee or the
unlicensed employee of any such broker, and which results in
a loss of actual cash money as opposed to losses in market
value, may recover. Such aggrieved person may recover, by
order of the circuit court of the county where the violation
occurred, an amount of not more than $10,000 from such fund
for damages sustained by the act, representation,
transaction, or conduct, together with costs of suit and
attorneys' fees incurred in connection therewith of not to
exceed 15% of the amount of the recovery ordered paid from
the Fund. However, no licensed broker, or salesperson may
recover from the Fund unless the court finds that the person
suffered a loss resulting from intentional misconduct. Such
court order shall not include interest on the judgment.
The maximum liability against the Fund arising out of any
one act shall be as provided in this Section and the judgment
order shall spread the award equitably among all co-owners or
otherwise aggrieved persons, if any. The maximum liability
against the Fund arising out of the activities of any single
broker, any single salesperson or any single unlicensed
employee, since January 1, 1974, shall be $50,000.
Nothing in this Section shall be construed to authorize
recovery from the Real Estate Recovery Fund unless the loss
of the aggrieved person results from an act or omission of a
licensed broker, salesperson or unlicensed employee who was
at the time of the act or omission acting in such capacity or
was apparently acting in such capacity, and unless the
aggrieved person has obtained a valid judgment as provided in
Section 25.
No person aggrieved by an act, representation, or
transaction which is in violation of the Illinois Real Estate
Time-Share Act, the Land Sales Act of 1989, or the Real
Estate Appraiser Licensing Act Article 2 of this Act may
recover from the Real Estate Recovery Fund created pursuant
to this Section.
The Office of Banks and Real Estate shall from time to
time, upon the written direction of the Governor, transfer
from the Real Estate Recovery Fund any amounts the Governor
determines are in excess of the amounts required to meet the
obligations of the Fund. The amounts transferred to the
General Revenue Fund shall not, however, exceed $1,000,000.
(Source: P.A. 89-508, eff. 7-3-96.)
(225 ILCS 455/Art. 2 rep.)
Section 275. The Real Estate License Act of 1983 is
amended by repealing Article 2.
Section 999. Effective date. This Act takes effect July
1, 1998.