HB3528 EngrossedLRB100 11358 SMS 21742 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Real Estate License Act of 2000 is amended
5by changing Sections 1-10, 5-5, 5-10, 5-27, 5-28, 5-50, 5-70,
65-75, 5-80, 20-20, 20-60, 25-10, 30-5, 30-15, 30-20, and 30-25
7and the heading of Article 30 as follows:
 
8    (225 ILCS 454/1-10)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 1-10. Definitions. In this Act, unless the context
11otherwise requires:
12    "Act" means the Real Estate License Act of 2000.
13    "Address of record" means the designated address recorded
14by the Department in the applicant's or licensee's application
15file or license file as maintained by the Department's
16licensure maintenance unit. It is the duty of the applicant or
17licensee to inform the Department of any change of address, and
18those changes must be made either through the Department's
19website or by contacting the Department.
20    "Advisory Council" means the Real Estate Education
21Advisory Council created under Section 30-10 of this Act.
22    "Agency" means a relationship in which a broker or
23licensee, whether directly or through an affiliated licensee,

 

 

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1represents a consumer by the consumer's consent, whether
2express or implied, in a real property transaction.
3    "Applicant" means any person, as defined in this Section,
4who applies to the Department for a valid license as a managing
5broker, broker, or leasing agent.
6    "Blind advertisement" means any real estate advertisement
7that does not include the sponsoring broker's business name and
8that is used by any licensee regarding the sale or lease of
9real estate, including his or her own, licensed activities, or
10the hiring of any licensee under this Act. The broker's
11business name in the case of a franchise shall include the
12franchise affiliation as well as the name of the individual
13firm.
14    "Board" means the Real Estate Administration and
15Disciplinary Board of the Department as created by Section
1625-10 of this Act.
17    "Branch office" means a sponsoring broker's office other
18than the sponsoring broker's principal office.
19    "Broker" means an individual, partnership, limited
20liability company, corporation, or registered limited
21liability partnership other than a leasing agent who, whether
22in person or through any media or technology, for another and
23for compensation, or with the intention or expectation of
24receiving compensation, either directly or indirectly:
25        (1) Sells, exchanges, purchases, rents, or leases real
26    estate.

 

 

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1        (2) Offers to sell, exchange, purchase, rent, or lease
2    real estate.
3        (3) Negotiates, offers, attempts, or agrees to
4    negotiate the sale, exchange, purchase, rental, or leasing
5    of real estate.
6        (4) Lists, offers, attempts, or agrees to list real
7    estate for sale, rent, lease, or exchange.
8        (5) Buys, sells, offers to buy or sell, or otherwise
9    deals in options on real estate or improvements thereon.
10        (6) Supervises the collection, offer, attempt, or
11    agreement to collect rent for the use of real estate.
12        (7) Advertises or represents himself or herself as
13    being engaged in the business of buying, selling,
14    exchanging, renting, or leasing real estate.
15        (8) Assists or directs in procuring or referring of
16    leads or prospects, intended to result in the sale,
17    exchange, lease, or rental of real estate.
18        (9) Assists or directs in the negotiation of any
19    transaction intended to result in the sale, exchange,
20    lease, or rental of real estate.
21        (10) Opens real estate to the public for marketing
22    purposes.
23        (11) Sells, rents, leases, or offers for sale or lease
24    real estate at auction.
25        (12) Prepares or provides a broker price opinion or
26    comparative market analysis as those terms are defined in

 

 

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1    this Act, pursuant to the provisions of Section 10-45 of
2    this Act.
3    "Brokerage agreement" means a written or oral agreement
4between a sponsoring broker and a consumer for licensed
5activities to be provided to a consumer in return for
6compensation or the right to receive compensation from another.
7Brokerage agreements may constitute either a bilateral or a
8unilateral agreement between the broker and the broker's client
9depending upon the content of the brokerage agreement. All
10exclusive brokerage agreements shall be in writing.
11    "Broker price opinion" means an estimate or analysis of the
12probable selling price of a particular interest in real estate,
13which may provide a varying level of detail about the
14property's condition, market, and neighborhood and information
15on comparable sales. The activities of a real estate broker or
16managing broker engaging in the ordinary course of business as
17a broker, as defined in this Section, shall not be considered a
18broker price opinion if no compensation is paid to the broker
19or managing broker, other than compensation based upon the sale
20or rental of real estate.
21    "Client" means a person who is being represented by a
22licensee.
23    "Comparative market analysis" is an analysis or opinion
24regarding pricing, marketing, or financial aspects relating to
25a specified interest or interests in real estate that may be
26based upon an analysis of comparative market data, the

 

 

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1expertise of the real estate broker or managing broker, and
2such other factors as the broker or managing broker may deem
3appropriate in developing or preparing such analysis or
4opinion. The activities of a real estate broker or managing
5broker engaging in the ordinary course of business as a broker,
6as defined in this Section, shall not be considered a
7comparative market analysis if no compensation is paid to the
8broker or managing broker, other than compensation based upon
9the sale or rental of real estate.
10    "Compensation" means the valuable consideration given by
11one person or entity to another person or entity in exchange
12for the performance of some activity or service. Compensation
13shall include the transfer of valuable consideration,
14including without limitation the following:
15        (1) commissions;
16        (2) referral fees;
17        (3) bonuses;
18        (4) prizes;
19        (5) merchandise;
20        (6) finder fees;
21        (7) performance of services;
22        (8) coupons or gift certificates;
23        (9) discounts;
24        (10) rebates;
25        (11) a chance to win a raffle, drawing, lottery, or
26    similar game of chance not prohibited by any other law or

 

 

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1    statute;
2        (12) retainer fee; or
3        (13) salary.
4    "Confidential information" means information obtained by a
5licensee from a client during the term of a brokerage agreement
6that (i) was made confidential by the written request or
7written instruction of the client, (ii) deals with the
8negotiating position of the client, or (iii) is information the
9disclosure of which could materially harm the negotiating
10position of the client, unless at any time:
11        (1) the client permits the disclosure of information
12    given by that client by word or conduct;
13        (2) the disclosure is required by law; or
14        (3) the information becomes public from a source other
15    than the licensee.
16    "Confidential information" shall not be considered to
17include material information about the physical condition of
18the property.
19    "Consumer" means a person or entity seeking or receiving
20licensed activities.
21    "Continuing education school" means any person licensed by
22the Department as a school for continuing education in
23accordance with Section 30-15 of this Act.
24    "Coordinator" means the Coordinator of Real Estate created
25in Section 25-15 of this Act.
26    "Credit hour" means 50 minutes of classroom instruction in

 

 

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1course work that meets the requirements set forth in rules
2adopted by the Department.
3    "Customer" means a consumer who is not being represented by
4the licensee but for whom the licensee is performing
5ministerial acts.
6    "Department" means the Department of Financial and
7Professional Regulation.
8    "Designated agency" means a contractual relationship
9between a sponsoring broker and a client under Section 15-50 of
10this Act in which one or more licensees associated with or
11employed by the broker are designated as agent of the client.
12    "Designated agent" means a sponsored licensee named by a
13sponsoring broker as the legal agent of a client, as provided
14for in Section 15-50 of this Act.
15    "Dual agency" means an agency relationship in which a
16licensee is representing both buyer and seller or both landlord
17and tenant in the same transaction. When the agency
18relationship is a designated agency, the question of whether
19there is a dual agency shall be determined by the agency
20relationships of the designated agent of the parties and not of
21the sponsoring broker.
22    "Education provider" means a school licensed by the
23Department offering courses in pre-license, post-license, or
24continuing education required by this Act.
25    "Employee" or other derivative of the word "employee", when
26used to refer to, describe, or delineate the relationship

 

 

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1between a sponsoring broker and a managing broker, broker, or a
2leasing agent, shall be construed to include an independent
3contractor relationship, provided that a written agreement
4exists that clearly establishes and states the relationship.
5All responsibilities of a broker shall remain.
6    "Escrow moneys" means all moneys, promissory notes or any
7other type or manner of legal tender or financial consideration
8deposited with any person for the benefit of the parties to the
9transaction. A transaction exists once an agreement has been
10reached and an accepted real estate contract signed or lease
11agreed to by the parties. Escrow moneys includes without
12limitation earnest moneys and security deposits, except those
13security deposits in which the person holding the security
14deposit is also the sole owner of the property being leased and
15for which the security deposit is being held.
16    "Electronic means of proctoring" means a methodology
17providing assurance that the person taking a test and
18completing the answers to questions is the person seeking
19licensure or credit for continuing education and is doing so
20without the aid of a third party or other device.
21    "Exclusive brokerage agreement" means a written brokerage
22agreement that provides that the sponsoring broker has the sole
23right, through one or more sponsored licensees, to act as the
24exclusive designated agent or representative of the client and
25that meets the requirements of Section 15-75 of this Act.
26    "Inoperative" means a status of licensure where the

 

 

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1licensee holds a current license under this Act, but the
2licensee is prohibited from engaging in licensed activities
3because the licensee is unsponsored or the license of the
4sponsoring broker with whom the licensee is associated or by
5whom he or she is employed is currently expired, revoked,
6suspended, or otherwise rendered invalid under this Act.
7    "Interactive delivery method" means delivery of a course by
8an instructor through a medium allowing for 2-way communication
9between the instructor and a student in which either can
10initiate or respond to questions.
11    "Leads" means the name or names of a potential buyer,
12seller, lessor, lessee, or client of a licensee.
13    "Leasing Agent" means a person who is employed by a broker
14to engage in licensed activities limited to leasing residential
15real estate who has obtained a license as provided for in
16Section 5-5 of this Act.
17    "License" means the document issued by the Department
18certifying that the person named thereon has fulfilled all
19requirements prerequisite to licensure under this Act.
20    "Licensed activities" means those activities listed in the
21definition of "broker" under this Section.
22    "Licensee" means any person, as defined in this Section,
23who holds a valid unexpired license as a managing broker,
24broker, or leasing agent.
25    "Listing presentation" means a communication between a
26managing broker or broker and a consumer in which the licensee

 

 

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1is attempting to secure a brokerage agreement with the consumer
2to market the consumer's real estate for sale or lease.
3    "Managing broker" means a broker who has supervisory
4responsibilities for licensees in one or, in the case of a
5multi-office company, more than one office and who has been
6appointed as such by the sponsoring broker.
7    "Medium of advertising" means any method of communication
8intended to influence the general public to use or purchase a
9particular good or service or real estate.
10    "Ministerial acts" means those acts that a licensee may
11perform for a consumer that are informative or clerical in
12nature and do not rise to the level of active representation on
13behalf of a consumer. Examples of these acts include without
14limitation (i) responding to phone inquiries by consumers as to
15the availability and pricing of brokerage services, (ii)
16responding to phone inquiries from a consumer concerning the
17price or location of property, (iii) attending an open house
18and responding to questions about the property from a consumer,
19(iv) setting an appointment to view property, (v) responding to
20questions of consumers walking into a licensee's office
21concerning brokerage services offered or particular
22properties, (vi) accompanying an appraiser, inspector,
23contractor, or similar third party on a visit to a property,
24(vii) describing a property or the property's condition in
25response to a consumer's inquiry, (viii) completing business or
26factual information for a consumer on an offer or contract to

 

 

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1purchase on behalf of a client, (ix) showing a client through a
2property being sold by an owner on his or her own behalf, or
3(x) referral to another broker or service provider.
4    "Office" means a broker's place of business where the
5general public is invited to transact business and where
6records may be maintained and licenses displayed, whether or
7not it is the broker's principal place of business.
8    "Person" means and includes individuals, entities,
9corporations, limited liability companies, registered limited
10liability partnerships, and partnerships, foreign or domestic,
11except that when the context otherwise requires, the term may
12refer to a single individual or other described entity.
13    "Personal assistant" means a licensed or unlicensed person
14who has been hired for the purpose of aiding or assisting a
15sponsored licensee in the performance of the sponsored
16licensee's job.
17    "Pocket card" means the card issued by the Department to
18signify that the person named on the card is currently licensed
19under this Act.
20    "Pre-license school" means a school licensed by the
21Department offering courses in subjects related to real estate
22transactions, including the subjects upon which an applicant is
23examined in determining fitness to receive a license.
24    "Pre-renewal period" means the period between the date of
25issue of a currently valid license and the license's expiration
26date.

 

 

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1    "Proctor" means any person, including, but not limited to,
2an instructor, who has a written agreement to administer
3examinations fairly and impartially with a licensed
4pre-license school or a licensed continuing education provider
5school.
6    "Real estate" means and includes leaseholds as well as any
7other interest or estate in land, whether corporeal,
8incorporeal, freehold, or non-freehold, including timeshare
9interests, and whether the real estate is situated in this
10State or elsewhere.
11    "Regular employee" means a person working an average of 20
12hours per week for a person or entity who would be considered
13as an employee under the Internal Revenue Service eleven main
14tests in three categories being behavioral control, financial
15control and the type of relationship of the parties, formerly
16the twenty factor test.
17    "Secretary" means the Secretary of the Department of
18Financial and Professional Regulation, or a person authorized
19by the Secretary to act in the Secretary's stead.
20    "Sponsoring broker" means the broker who has issued a
21sponsor card to a licensed managing broker, broker, or a
22leasing agent.
23    "Sponsor card" means the temporary permit issued by the
24sponsoring broker certifying that the managing broker, broker,
25or leasing agent named thereon is employed by or associated by
26written agreement with the sponsoring broker, as provided for

 

 

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1in Section 5-40 of this Act.
2(Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15;
399-227, eff. 8-3-15.)
 
4    (225 ILCS 454/5-5)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 5-5. Leasing agent license.
7    (a) The purpose of this Section is to provide for a limited
8scope license to enable persons who wish to engage in
9activities limited to the leasing of residential real property
10for which a license is required under this Act, and only those
11activities, to do so by obtaining the license provided for
12under this Section.
13    (b) Notwithstanding the other provisions of this Act, there
14is hereby created a leasing agent license that shall enable the
15licensee to engage only in residential leasing activities for
16which a license is required under this Act. Such activities
17include without limitation leasing or renting residential real
18property, or attempting, offering, or negotiating to lease or
19rent residential real property, or supervising the collection,
20offer, attempt, or agreement to collect rent for the use of
21residential real property. Nothing in this Section shall be
22construed to require a licensed managing broker or broker to
23obtain a leasing agent license in order to perform leasing
24activities for which a license is required under this Act.
25Licensed leasing agents, including those operating under

 

 

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1subsection (d), may engage in activities enumerated within the
2definition of "leasing agent" in Section 1-10 of this Act and
3may not engage in any activity that would otherwise require a
4broker's license, including, but not limited to, selling,
5offering for sale, negotiating for sale, listing or showing for
6sale, or referring for sale or commercial lease real estate.
7Licensed leasing agents must be sponsored and employed by a
8sponsoring broker.
9    (c) The Department, by rule and in accordance with this
10Act, shall provide for the licensing of leasing agents,
11including the issuance, renewal, and administration of
12licenses.
13    (d) Notwithstanding any other provisions of this Act to the
14contrary, a person may engage in residential leasing activities
15for which a license is required under this Act, for a period of
16120 consecutive days without being licensed, so long as the
17person is acting under the supervision of a sponsoring broker,
18and the sponsoring broker has notified the Department that the
19person is pursuing licensure under this Section, and the person
20has enrolled in the leasing agent pre-license education course
21no later than 60 days after beginning to engage in residential
22leasing activities. During the 120-day 120 day period all
23requirements of Sections 5-10 and 5-65 of this Act with respect
24to education, successful completion of an examination, and the
25payment of all required fees must be satisfied. The Department
26may adopt rules to ensure that the provisions of this

 

 

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1subsection are not used in a manner that enables an unlicensed
2person to repeatedly or continually engage in activities for
3which a license is required under this Act.
4(Source: P.A. 99-227, eff. 8-3-15.)
 
5    (225 ILCS 454/5-10)
6    (Section scheduled to be repealed on January 1, 2020)
7    Sec. 5-10. Requirements for license as leasing agent;
8continuing education.
9    (a) Every applicant for licensure as a leasing agent must
10meet the following qualifications:
11        (1) be at least 18 years of age;
12        (2) be of good moral character;
13        (3) successfully complete a 4-year course of study in a
14    high school or secondary school or an equivalent course of
15    study approved by the Illinois State Board of Education;
16        (4) personally take and pass a written examination
17    authorized by the Department sufficient to demonstrate the
18    applicant's knowledge of the provisions of this Act
19    relating to leasing agents and the applicant's competence
20    to engage in the activities of a licensed leasing agent;
21        (5) provide satisfactory evidence of having completed
22    15 hours of instruction in an approved course of study
23    relating to the leasing of residential real property. The
24    Board shall recommend to the Department the number of hours
25    each topic of study shall require. The course of study

 

 

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1    shall, among other topics, cover the provisions of this Act
2    applicable to leasing agents; fair housing issues relating
3    to residential leasing; advertising and marketing issues;
4    leases, applications, and credit reports; owner-tenant
5    relationships and owner-tenant laws; the handling of
6    funds; and environmental issues relating to residential
7    real property;
8        (6) complete any other requirements as set forth by
9    rule; and
10        (7) present a valid application for issuance of an
11    initial license accompanied by a sponsor card and the fees
12    specified by rule.
13    (b) No applicant shall engage in any of the activities
14covered by this Act until a valid sponsor card has been issued
15to such applicant. The sponsor card shall be valid for a
16maximum period of 45 days after the date of issuance unless
17extended for good cause as provided by rule.
18    (c) Successfully completed course work, completed pursuant
19to the requirements of this Section, may be applied to the
20course work requirements to obtain a managing broker's or
21broker's license as provided by rule. The Board Advisory
22Council may recommend through the Board to the Department and
23the Department may adopt requirements for approved courses,
24course content, and the approval of courses, instructors, and
25education providers schools, as well as education provider
26school and instructor fees. The Department may establish

 

 

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1continuing education requirements for licensed leasing agents,
2by rule, consistent with the language and intent of this Act,
3with the advice of the Advisory Council and Board.
4    (d) The continuing education requirement for leasing
5agents shall consist of a single core curriculum to be
6established by the Department as recommended by the Board.
7Leasing agents shall be required to complete no less than 6
8hours of continuing education in the core curriculum for each
92-year renewal period.
10(Source: P.A. 99-227, eff. 8-3-15.)
 
11    (225 ILCS 454/5-27)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 5-27. Requirements for licensure as a broker.
14    (a) Every applicant for licensure as a broker must meet the
15following qualifications:
16        (1) Be at least 21 years of age. The After April 30,
17    2011, the minimum age of 21 years shall be waived for any
18    person seeking a license as a broker who has attained the
19    age of 18 and can provide evidence of the successful
20    completion of at least 4 semesters of post-secondary school
21    study as a full-time student or the equivalent, with major
22    emphasis on real estate courses, in a school approved by
23    the Department;
24        (2) Be of good moral character;
25        (3) Successfully complete a 4-year course of study in a

 

 

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1    high school or secondary school approved by the Illinois
2    State Board of Education or an equivalent course of study
3    as determined by an examination conducted by the Illinois
4    State Board of Education which shall be verified under oath
5    by the applicant;
6        (4) (Blank);
7        (5) Provide After April 30, 2011, provide satisfactory
8    evidence of having completed 90 hours of instruction in
9    real estate courses approved by the Department Advisory
10    Council, 15 hours of which must consist of situational and
11    case studies presented in the classroom or by live, other
12    interactive webinar or online distance education courses
13    delivery method between the instructor and the students;
14        (6) Personally take and pass a written examination
15    authorized by the Department;
16        (7) Present a valid application for issuance of a
17    license accompanied by a sponsor card and the fees
18    specified by rule.
19    (b) The requirements specified in items (3) and (5) of
20subsection (a) of this Section do not apply to applicants who
21are currently admitted to practice law by the Supreme Court of
22Illinois and are currently in active standing.
23    (c) No applicant shall engage in any of the activities
24covered by this Act until a valid sponsor card has been issued
25to such applicant. The sponsor card shall be valid for a
26maximum period of 45 days after the date of issuance unless

 

 

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1extended for good cause as provided by rule.
2    (d) All licenses should be readily available to the public
3at their place of business.
4    (e) An individual holding an active license as a managing
5broker may return the license to the Department along with a
6form provided by the Department and shall be issued a broker's
7license in exchange. Any individual obtaining a broker's
8license under this subsection (e) shall be considered as having
9obtained a broker's license by education and passing the
10required test and shall be treated as such in determining
11compliance with this Act.
12(Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15;
1399-227, eff. 8-3-15.)
 
14    (225 ILCS 454/5-28)
15    (Section scheduled to be repealed on January 1, 2020)
16    Sec. 5-28. Requirements for licensure as a managing broker.
17    (a) Every Effective May 1, 2012, every applicant for
18licensure as a managing broker must meet the following
19qualifications:
20        (1) be at least 21 years of age;
21        (2) be of good moral character;
22        (3) have been licensed at least 2 out of the preceding
23    3 years as a broker;
24        (4) successfully complete a 4-year course of study in
25    high school or secondary school approved by the Illinois

 

 

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1    State Board of Education or an equivalent course of study
2    as determined by an examination conducted by the Illinois
3    State Board of Education, which shall be verified under
4    oath by the applicant;
5        (5) provide satisfactory evidence of having completed
6    at least 165 hours, 120 of which shall be those hours
7    required pre and post-licensure to obtain a broker's
8    license, and 45 additional hours completed within the year
9    immediately preceding the filing of an application for a
10    managing broker's license, which hours shall focus on
11    brokerage administration and management and leasing agent
12    management and include at least 15 hours in the classroom
13    or by live, other interactive webinar or online distance
14    education courses delivery method between the instructor
15    and the students;
16        (6) personally take and pass a written examination
17    authorized by the Department; and
18        (7) present a valid application for issuance of a
19    license accompanied by a sponsor card, an appointment as a
20    managing broker, and the fees specified by rule.
21    (b) The requirements specified in item (5) of subsection
22(a) of this Section do not apply to applicants who are
23currently admitted to practice law by the Supreme Court of
24Illinois and are currently in active standing.
25    (c) No applicant shall act as a managing broker for more
26than 90 days after an appointment as a managing broker has been

 

 

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1filed with the Department without obtaining a managing broker's
2license.
3(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15.)
 
4    (225 ILCS 454/5-50)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 5-50. Expiration and renewal of managing broker,
7broker, or leasing agent license; sponsoring broker; register
8of licensees; pocket card.
9    (a) The expiration date and renewal period for each license
10issued under this Act shall be set by rule. Except as otherwise
11provided in this Section, the holder of a license may renew the
12license within 90 days preceding the expiration date thereof by
13completing the continuing education required by this Act and
14paying the fees specified by rule.
15    (b) An individual whose first license is that of a broker
16received on or after the effective date of this amendatory Act
17of the 100th General Assembly April 30, 2011, must provide
18evidence of having completed 30 hours of post-license education
19in courses recommended approved by the Board and approved by
20the Department Advisory Council, 15 hours of which must consist
21of situational and case studies presented in a the classroom or
22a live, interactive webinar, online distance education course,
23or home study course. Credit for courses taken through a home
24study course shall require passage of or by other interactive
25delivery method between the instructor and the students, and

 

 

HB3528 Engrossed- 22 -LRB100 11358 SMS 21742 b

1personally take and pass an examination approved by the
2Department prior to the first renewal of their broker's
3license.
4    (c) Any managing broker, broker, or leasing agent whose
5license under this Act has expired shall be eligible to renew
6the license during the 2-year period following the expiration
7date, provided the managing broker, broker, or leasing agent
8pays the fees as prescribed by rule and completes continuing
9education and other requirements provided for by the Act or by
10rule. Beginning on May 1, 2012, a managing broker licensee,
11broker, or leasing agent whose license has been expired for
12more than 2 years but less than 5 years may have it restored by
13(i) applying to the Department, (ii) paying the required fee,
14(iii) completing the continuing education requirements for the
15most recent pre-renewal period that ended prior to the date of
16the application for reinstatement, and (iv) filing acceptable
17proof of fitness to have his or her license restored, as set by
18rule. A managing broker, broker, or leasing agent whose license
19has been expired for more than 5 years shall be required to
20meet the requirements for a new license.
21    (d) Notwithstanding any other provisions of this Act to the
22contrary, any managing broker, broker, or leasing agent whose
23license expired while he or she was (i) on active duty with the
24Armed Forces of the United States or called into service or
25training by the state militia, (ii) engaged in training or
26education under the supervision of the United States

 

 

HB3528 Engrossed- 23 -LRB100 11358 SMS 21742 b

1preliminary to induction into military service, or (iii)
2serving as the Coordinator of Real Estate in the State of
3Illinois or as an employee of the Department may have his or
4her license renewed, reinstated or restored without paying any
5lapsed renewal fees if within 2 years after the termination of
6the service, training or education by furnishing the Department
7with satisfactory evidence of service, training, or education
8and it has been terminated under honorable conditions.
9     (e) The Department shall establish and maintain a register
10of all persons currently licensed by the State and shall issue
11and prescribe a form of pocket card. Upon payment by a licensee
12of the appropriate fee as prescribed by rule for engagement in
13the activity for which the licensee is qualified and holds a
14license for the current period, the Department shall issue a
15pocket card to the licensee. The pocket card shall be
16verification that the required fee for the current period has
17been paid and shall indicate that the person named thereon is
18licensed for the current renewal period as a managing broker,
19broker, or leasing agent as the case may be. The pocket card
20shall further indicate that the person named thereon is
21authorized by the Department to engage in the licensed activity
22appropriate for his or her status (managing broker, broker, or
23leasing agent). Each licensee shall carry on his or her person
24his or her pocket card or, if such pocket card has not yet been
25issued, a properly issued sponsor card when engaging in any
26licensed activity and shall display the same on demand.

 

 

HB3528 Engrossed- 24 -LRB100 11358 SMS 21742 b

1    (f) The Department shall provide to the sponsoring broker a
2notice of renewal for all sponsored licensees by mailing the
3notice to the sponsoring broker's address of record, or, at the
4Department's discretion, by an electronic means as provided for
5by rule.
6    (g) Upon request from the sponsoring broker, the Department
7shall make available to the sponsoring broker, either by mail
8or by an electronic means at the discretion of the Department,
9a listing of licensees under this Act who, according to the
10records of the Department, are sponsored by that broker. Every
11licensee associated with or employed by a broker whose license
12is revoked, suspended, terminated, or expired shall be
13considered as inoperative until such time as the sponsoring
14broker's license is reinstated or renewed, or the licensee
15changes employment as set forth in subsection (c) of Section
165-40 of this Act.
17(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15.)
 
18    (225 ILCS 454/5-70)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 5-70. Continuing education requirement; managing
21broker or broker.
22    (a) The requirements of this Section apply to all managing
23brokers and brokers.
24    (b) Except as otherwise provided in this Section, each
25person who applies for renewal of his or her license as a

 

 

HB3528 Engrossed- 25 -LRB100 11358 SMS 21742 b

1managing broker or broker must successfully complete 6 hours of
2real estate continuing education courses recommended by the
3Board and approved by the Department Advisory Council for each
4year of the pre-renewal period. In addition, beginning with the
5pre-renewal period for managing broker licensees that begins
6after the effective date of this Act, those licensees renewing
7or obtaining a managing broker's license must successfully
8complete a 12-hour broker management continuing education
9course approved by the Department each pre-renewal period. The
10broker management continuing education course must be
11completed in the classroom or by other interactive delivery
12method between the instructor and the students. Successful
13completion of the course shall include achieving a passing
14score as provided by rule on a test developed and administered
15in accordance with rules adopted by the Department. No license
16may be renewed except upon the successful completion of the
17required courses or their equivalent or upon a waiver of those
18requirements for good cause shown as determined by the
19Secretary with the recommendation of the Board Advisory
20Council. The requirements of this Article are applicable to all
21managing brokers and brokers except those managing brokers and
22brokers who, during the pre-renewal period:
23        (1) serve in the armed services of the United States;
24        (2) serve as an elected State or federal official;
25        (3) serve as a full-time employee of the Department; or
26        (4) are admitted to practice law pursuant to Illinois

 

 

HB3528 Engrossed- 26 -LRB100 11358 SMS 21742 b

1    Supreme Court rule.
2    (c) (Blank).
3    (d) A person receiving an initial license during the 90
4days before the renewal date shall not be required to complete
5the continuing education courses provided for in subsection (b)
6of this Section as a condition of initial license renewal.
7    (e) The continuing education requirement for brokers and
8managing brokers shall consist of a single core curriculum and
9an elective curriculum, to be recommended established by the
10Board and approved by the Department in accordance with this
11subsection. The core curriculum shall not be further divided
12into subcategories or divisions of instruction. The core
13curriculum shall consist of 4 hours per 2-year Advisory
14Council. In meeting the continuing education requirements of
15this Act, at least 3 hours per year or their equivalent, 6
16hours for each two-year pre-renewal period on subjects that may
17include, but are not limited to, advertising, agency,
18disclosures, escrow, fair housing, leasing agent management,
19and license law. The amount of time allotted to each of these
20subjects shall be recommended by the Board and determined by
21the Department , shall be required to be completed in the core
22curriculum. The Department, upon the recommendation of the
23Board, shall review the core curriculum every 4 years, at a
24minimum, and shall revise the curriculum if necessary. However,
25the core curriculum's total hourly requirement shall only be
26subject to change by amendment of this subsection, and any

 

 

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1change to the core curriculum shall not be effective for a
2period of 6 months after such change is made by the Department.
3The Department shall provide notice to all approved education
4providers of any changes to the core curriculum. When
5determining whether revisions of the core curriculum's
6subjects or specific time requirements are necessary In
7establishing the core curriculum, the Board Advisory Council
8shall consider subjects that will educate licensees on recent
9changes in applicable laws, and new laws, and refresh the
10licensee on areas of the license law and the Department policy
11that the Board Advisory Council deems appropriate, and any
12other subject areas the Board that the Advisory Council deems
13timely and applicable in order to prevent violations of this
14Act and to protect the public. In establishing a recommendation
15to the Department regarding the elective curriculum, the Board
16Advisory Council shall consider subjects that cover the various
17aspects of the practice of real estate that are covered under
18the scope of this Act. However, the elective curriculum shall
19not include any offerings referred to in Section 5-85 of this
20Act.
21    (f) The subject areas of continuing education courses
22recommended by the Board and approved by the Department shall
23be meant to protect the professionalism of the industry, the
24consumer, and the public and prevent violations of this Act and
25Advisory Council may include without limitation the following:
26        (1) license law and escrow;

 

 

HB3528 Engrossed- 28 -LRB100 11358 SMS 21742 b

1        (2) antitrust;
2        (3) fair housing;
3        (4) agency;
4        (5) appraisal;
5        (6) property management;
6        (7) residential brokerage;
7        (8) farm property management;
8        (9) rights and duties of sellers, buyers, and brokers;
9        (10) commercial brokerage and leasing; and
10        (11) real estate financing; .
11        (12) disclosures;
12        (13) leasing agent management; and
13        (14) advertising.
14    (g) In lieu of credit for those courses listed in
15subsection (f) of this Section, credit may be earned for
16serving as a licensed instructor in an approved course of
17continuing education. The amount of credit earned for teaching
18a course shall be the amount of continuing education credit for
19which the course is approved for licensees taking the course.
20    (h) Credit hours may be earned for self-study programs
21approved by the Department Advisory Council.
22    (i) A managing broker or broker may earn credit for a
23specific continuing education course only once during the
24pre-renewal prerenewal period.
25    (j) No more than 6 hours of continuing education credit may
26be taken in one calendar day.

 

 

HB3528 Engrossed- 29 -LRB100 11358 SMS 21742 b

1    (k) To promote the offering of a uniform and consistent
2course content, the Department may provide for the development
3of a single broker management course to be offered by all
4continuing education providers who choose to offer the broker
5management continuing education course. The Department may
6contract for the development of the 12-hour broker management
7continuing education course with an outside vendor or
8consultant and, if the course is developed in this manner, the
9Department or the outside consultant shall license the use of
10that course to all approved continuing education providers who
11wish to provide the course.
12    (l) Except as specifically provided in this Act, continuing
13education credit hours may not be earned for completion of pre
14or post-license courses. The approved 30-hour post-license
15course for broker licensees shall satisfy the continuing
16education requirement for the pre-renewal period in which the
17course is taken. The approved 45-hour brokerage administration
18and management course shall satisfy the 12-hour broker
19management continuing education requirement for the
20pre-renewal period in which the course is taken.
21(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15;
2299-728, eff. 1-1-17.)
 
23    (225 ILCS 454/5-75)
24    (Section scheduled to be repealed on January 1, 2020)
25    Sec. 5-75. Out-of-state continuing education credit. If a

 

 

HB3528 Engrossed- 30 -LRB100 11358 SMS 21742 b

1renewal applicant has earned continuing education hours in
2another state or territory for which he or she is claiming
3credit toward full compliance in Illinois, the Board Advisory
4Council shall review and recommend to the Department whether it
5should , approve, or disapprove those hours based upon whether
6the course is one that would be approved under Section 5-70 of
7this Act, whether the course meets the basic requirements for
8continuing education under this Act, and any other criteria
9that is provided by statute or rule.
10(Source: P.A. 91-245, eff. 12-31-99.)
 
11    (225 ILCS 454/5-80)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 5-80. Evidence of compliance with continuing
14education requirements.
15    (a) Each renewal applicant shall certify, on his or her
16renewal application, full compliance with continuing education
17requirements set forth in Section 5-70. The continuing
18education provider school shall retain and submit to the
19Department after the completion of each course evidence of
20those successfully completing the course as provided by rule.
21    (b) The Department may require additional evidence
22demonstrating compliance with the continuing education
23requirements. The renewal applicant shall retain and produce
24the evidence of compliance upon request of the Department.
25(Source: P.A. 96-856, eff. 12-31-09.)
 

 

 

HB3528 Engrossed- 31 -LRB100 11358 SMS 21742 b

1    (225 ILCS 454/20-20)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 20-20. Grounds for discipline.
4    (a) The Department may refuse to issue or renew a license,
5may place on probation, suspend, or revoke any license,
6reprimand, or take any other disciplinary or non-disciplinary
7action as the Department may deem proper and impose a fine not
8to exceed $25,000 upon any licensee or applicant under this Act
9or any person who holds himself or herself out as an applicant
10or licensee or against a licensee in handling his or her own
11property, whether held by deed, option, or otherwise, for any
12one or any combination of the following causes:
13        (1) Fraud or misrepresentation in applying for, or
14    procuring, a license under this Act or in connection with
15    applying for renewal of a license under this Act.
16        (2) The conviction of or plea of guilty or plea of nolo
17    contendere to a felony or misdemeanor in this State or any
18    other jurisdiction; or the entry of an administrative
19    sanction by a government agency in this State or any other
20    jurisdiction. Action taken under this paragraph (2) for a
21    misdemeanor or an administrative sanction is limited to a
22    misdemeanor or administrative sanction that has as an
23    essential element dishonesty or fraud or involves larceny,
24    embezzlement, or obtaining money, property, or credit by
25    false pretenses or by means of a confidence game.

 

 

HB3528 Engrossed- 32 -LRB100 11358 SMS 21742 b

1        (3) Inability to practice the profession with
2    reasonable judgment, skill, or safety as a result of a
3    physical illness, including, but not limited to,
4    deterioration through the aging process or loss of motor
5    skill, or a mental illness or disability.
6        (4) Practice under this Act as a licensee in a retail
7    sales establishment from an office, desk, or space that is
8    not separated from the main retail business by a separate
9    and distinct area within the establishment.
10        (5) Having been disciplined by another state, the
11    District of Columbia, a territory, a foreign nation, or a
12    governmental agency authorized to impose discipline if at
13    least one of the grounds for that discipline is the same as
14    or the equivalent of one of the grounds for which a
15    licensee may be disciplined under this Act. A certified
16    copy of the record of the action by the other state or
17    jurisdiction shall be prima facie evidence thereof.
18        (6) Engaging in the practice of real estate brokerage
19    without a license or after the licensee's license or
20    temporary permit was expired or while the license was
21    inoperative.
22        (7) Cheating on or attempting to subvert the Real
23    Estate License Exam or continuing education exam.
24        (8) Aiding or abetting an applicant to subvert or cheat
25    on the Real Estate License Exam or continuing education
26    exam administered pursuant to this Act.

 

 

HB3528 Engrossed- 33 -LRB100 11358 SMS 21742 b

1        (9) Advertising that is inaccurate, misleading, or
2    contrary to the provisions of the Act.
3        (10) Making any substantial misrepresentation or
4    untruthful advertising.
5        (11) Making any false promises of a character likely to
6    influence, persuade, or induce.
7        (12) Pursuing a continued and flagrant course of
8    misrepresentation or the making of false promises through
9    licensees, employees, agents, advertising, or otherwise.
10        (13) Any misleading or untruthful advertising, or
11    using any trade name or insignia of membership in any real
12    estate organization of which the licensee is not a member.
13        (14) Acting for more than one party in a transaction
14    without providing written notice to all parties for whom
15    the licensee acts.
16        (15) Representing or attempting to represent a broker
17    other than the sponsoring broker.
18        (16) Failure to account for or to remit any moneys or
19    documents coming into his or her possession that belong to
20    others.
21        (17) Failure to maintain and deposit in a special
22    account, separate and apart from personal and other
23    business accounts, all escrow moneys belonging to others
24    entrusted to a licensee while acting as a broker, escrow
25    agent, or temporary custodian of the funds of others or
26    failure to maintain all escrow moneys on deposit in the

 

 

HB3528 Engrossed- 34 -LRB100 11358 SMS 21742 b

1    account until the transactions are consummated or
2    terminated, except to the extent that the moneys, or any
3    part thereof, shall be:
4            (A) disbursed prior to the consummation or
5        termination (i) in accordance with the written
6        direction of the principals to the transaction or their
7        duly authorized agents, (ii) in accordance with
8        directions providing for the release, payment, or
9        distribution of escrow moneys contained in any written
10        contract signed by the principals to the transaction or
11        their duly authorized agents, or (iii) pursuant to an
12        order of a court of competent jurisdiction; or
13            (B) deemed abandoned and transferred to the Office
14        of the State Treasurer to be handled as unclaimed
15        property pursuant to the Uniform Disposition of
16        Unclaimed Property Act. Escrow moneys may be deemed
17        abandoned under this subparagraph (B) only: (i) in the
18        absence of disbursement under subparagraph (A); (ii)
19        in the absence of notice of the filing of any claim in
20        a court of competent jurisdiction; and (iii) if 6
21        months have elapsed after the receipt of a written
22        demand for the escrow moneys from one of the principals
23        to the transaction or the principal's duly authorized
24        agent.
25    The account shall be noninterest bearing, unless the
26    character of the deposit is such that payment of interest

 

 

HB3528 Engrossed- 35 -LRB100 11358 SMS 21742 b

1    thereon is otherwise required by law or unless the
2    principals to the transaction specifically require, in
3    writing, that the deposit be placed in an interest bearing
4    account.
5        (18) Failure to make available to the Department all
6    escrow records and related documents maintained in
7    connection with the practice of real estate within 24 hours
8    of a request for those documents by Department personnel.
9        (19) Failing to furnish copies upon request of
10    documents relating to a real estate transaction to a party
11    who has executed that document.
12        (20) Failure of a sponsoring broker to timely provide
13    information, sponsor cards, or termination of licenses to
14    the Department.
15        (21) Engaging in dishonorable, unethical, or
16    unprofessional conduct of a character likely to deceive,
17    defraud, or harm the public.
18        (22) Commingling the money or property of others with
19    his or her own money or property.
20        (23) Employing any person on a purely temporary or
21    single deal basis as a means of evading the law regarding
22    payment of commission to nonlicensees on some contemplated
23    transactions.
24        (24) Permitting the use of his or her license as a
25    broker to enable a leasing agent or unlicensed person to
26    operate a real estate business without actual

 

 

HB3528 Engrossed- 36 -LRB100 11358 SMS 21742 b

1    participation therein and control thereof by the broker.
2        (25) Any other conduct, whether of the same or a
3    different character from that specified in this Section,
4    that constitutes dishonest dealing.
5        (26) Displaying a "for rent" or "for sale" sign on any
6    property without the written consent of an owner or his or
7    her duly authorized agent or advertising by any means that
8    any property is for sale or for rent without the written
9    consent of the owner or his or her authorized agent.
10        (27) Failing to provide information requested by the
11    Department, or otherwise respond to that request, within 30
12    days of the request.
13        (28) Advertising by means of a blind advertisement,
14    except as otherwise permitted in Section 10-30 of this Act.
15        (29) Offering guaranteed sales plans, as defined in
16    clause (A) of this subdivision (29), except to the extent
17    hereinafter set forth:
18            (A) A "guaranteed sales plan" is any real estate
19        purchase or sales plan whereby a licensee enters into a
20        conditional or unconditional written contract with a
21        seller, prior to entering into a brokerage agreement
22        with the seller, by the terms of which a licensee
23        agrees to purchase a property of the seller within a
24        specified period of time at a specific price in the
25        event the property is not sold in accordance with the
26        terms of a brokerage agreement to be entered into

 

 

HB3528 Engrossed- 37 -LRB100 11358 SMS 21742 b

1        between the sponsoring broker and the seller.
2            (B) A licensee offering a guaranteed sales plan
3        shall provide the details and conditions of the plan in
4        writing to the party to whom the plan is offered.
5            (C) A licensee offering a guaranteed sales plan
6        shall provide to the party to whom the plan is offered
7        evidence of sufficient financial resources to satisfy
8        the commitment to purchase undertaken by the broker in
9        the plan.
10            (D) Any licensee offering a guaranteed sales plan
11        shall undertake to market the property of the seller
12        subject to the plan in the same manner in which the
13        broker would market any other property, unless the
14        agreement with the seller provides otherwise.
15            (E) The licensee cannot purchase seller's property
16        until the brokerage agreement has ended according to
17        its terms or is otherwise terminated.
18            (F) Any licensee who fails to perform on a
19        guaranteed sales plan in strict accordance with its
20        terms shall be subject to all the penalties provided in
21        this Act for violations thereof and, in addition, shall
22        be subject to a civil fine payable to the party injured
23        by the default in an amount of up to $25,000.
24        (30) Influencing or attempting to influence, by any
25    words or acts, a prospective seller, purchaser, occupant,
26    landlord, or tenant of real estate, in connection with

 

 

HB3528 Engrossed- 38 -LRB100 11358 SMS 21742 b

1    viewing, buying, or leasing real estate, so as to promote
2    or tend to promote the continuance or maintenance of
3    racially and religiously segregated housing or so as to
4    retard, obstruct, or discourage racially integrated
5    housing on or in any street, block, neighborhood, or
6    community.
7        (31) Engaging in any act that constitutes a violation
8    of any provision of Article 3 of the Illinois Human Rights
9    Act, whether or not a complaint has been filed with or
10    adjudicated by the Human Rights Commission.
11        (32) Inducing any party to a contract of sale or lease
12    or brokerage agreement to break the contract of sale or
13    lease or brokerage agreement for the purpose of
14    substituting, in lieu thereof, a new contract for sale or
15    lease or brokerage agreement with a third party.
16        (33) Negotiating a sale, exchange, or lease of real
17    estate directly with any person if the licensee knows that
18    the person has an exclusive brokerage agreement with
19    another broker, unless specifically authorized by that
20    broker.
21        (34) When a licensee is also an attorney, acting as the
22    attorney for either the buyer or the seller in the same
23    transaction in which the licensee is acting or has acted as
24    a managing broker or broker.
25        (35) Advertising or offering merchandise or services
26    as free if any conditions or obligations necessary for

 

 

HB3528 Engrossed- 39 -LRB100 11358 SMS 21742 b

1    receiving the merchandise or services are not disclosed in
2    the same advertisement or offer. These conditions or
3    obligations include without limitation the requirement
4    that the recipient attend a promotional activity or visit a
5    real estate site. As used in this subdivision (35), "free"
6    includes terms such as "award", "prize", "no charge", "free
7    of charge", "without charge", and similar words or phrases
8    that reasonably lead a person to believe that he or she may
9    receive or has been selected to receive something of value,
10    without any conditions or obligations on the part of the
11    recipient.
12        (36) Disregarding or violating any provision of the
13    Land Sales Registration Act of 1989, the Illinois Real
14    Estate Time-Share Act, or the published rules promulgated
15    by the Department to enforce those Acts.
16        (37) Violating the terms of a disciplinary order issued
17    by the Department.
18        (38) Paying or failing to disclose compensation in
19    violation of Article 10 of this Act.
20        (39) Requiring a party to a transaction who is not a
21    client of the licensee to allow the licensee to retain a
22    portion of the escrow moneys for payment of the licensee's
23    commission or expenses as a condition for release of the
24    escrow moneys to that party.
25        (40) Disregarding or violating any provision of this
26    Act or the published rules promulgated by the Department to

 

 

HB3528 Engrossed- 40 -LRB100 11358 SMS 21742 b

1    enforce this Act or aiding or abetting any individual,
2    partnership, registered limited liability partnership,
3    limited liability company, or corporation in disregarding
4    any provision of this Act or the published rules
5    promulgated by the Department to enforce this Act.
6        (41) Failing to provide the minimum services required
7    by Section 15-75 of this Act when acting under an exclusive
8    brokerage agreement.
9        (42) Habitual or excessive use or addiction to alcohol,
10    narcotics, stimulants, or any other chemical agent or drug
11    that results in a managing broker, broker, or leasing
12    agent's inability to practice with reasonable skill or
13    safety.
14        (43) Enabling, aiding, or abetting an auctioneer, as
15    defined in the Auction License Act, to conduct a real
16    estate auction in a manner that is in violation of this
17    Act.
18        (44) Permitting any leasing agent or temporary leasing
19    agent permit holder to engage in activities that require a
20    broker's or managing broker's license.
21    (b) The Department may refuse to issue or renew or may
22suspend the license of any person who fails to file a return,
23pay the tax, penalty or interest shown in a filed return, or
24pay any final assessment of tax, penalty, or interest, as
25required by any tax Act administered by the Department of
26Revenue, until such time as the requirements of that tax Act

 

 

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1are satisfied in accordance with subsection (g) of Section
22105-15 of the Civil Administrative Code of Illinois.
3    (c) The Department shall deny a license or renewal
4authorized by this Act to a person who has defaulted on an
5educational loan or scholarship provided or guaranteed by the
6Illinois Student Assistance Commission or any governmental
7agency of this State in accordance with item (5) of subsection
8(a) of Section 2105-15 of the Civil Administrative Code of
9Illinois.
10    (d) In cases where the Department of Healthcare and Family
11Services (formerly Department of Public Aid) has previously
12determined that a licensee or a potential licensee is more than
1330 days delinquent in the payment of child support and has
14subsequently certified the delinquency to the Department may
15refuse to issue or renew or may revoke or suspend that person's
16license or may take other disciplinary action against that
17person based solely upon the certification of delinquency made
18by the Department of Healthcare and Family Services in
19accordance with item (5) of subsection (a) of Section 2105-15
20of the Civil Administrative Code of Illinois.
21    (e) In enforcing this Section, the Department or Board upon
22a showing of a possible violation may compel an individual
23licensed to practice under this Act, or who has applied for
24licensure under this Act, to submit to a mental or physical
25examination, or both, as required by and at the expense of the
26Department. The Department or Board may order the examining

 

 

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1physician to present testimony concerning the mental or
2physical examination of the licensee or applicant. No
3information shall be excluded by reason of any common law or
4statutory privilege relating to communications between the
5licensee or applicant and the examining physician. The
6examining physicians shall be specifically designated by the
7Board or Department. The individual to be examined may have, at
8his or her own expense, another physician of his or her choice
9present during all aspects of this examination. Failure of an
10individual to submit to a mental or physical examination, when
11directed, shall be grounds for suspension of his or her license
12until the individual submits to the examination if the
13Department finds, after notice and hearing, that the refusal to
14submit to the examination was without reasonable cause.
15    If the Department or Board finds an individual unable to
16practice because of the reasons set forth in this Section, the
17Department or Board may require that individual to submit to
18care, counseling, or treatment by physicians approved or
19designated by the Department or Board, as a condition, term, or
20restriction for continued, reinstated, or renewed licensure to
21practice; or, in lieu of care, counseling, or treatment, the
22Department may file, or the Board may recommend to the
23Department to file, a complaint to immediately suspend, revoke,
24or otherwise discipline the license of the individual. An
25individual whose license was granted, continued, reinstated,
26renewed, disciplined or supervised subject to such terms,

 

 

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1conditions, or restrictions, and who fails to comply with such
2terms, conditions, or restrictions, shall be referred to the
3Secretary for a determination as to whether the individual
4shall have his or her license suspended immediately, pending a
5hearing by the Department.
6    In instances in which the Secretary immediately suspends a
7person's license under this Section, a hearing on that person's
8license must be convened by the Department within 30 days after
9the suspension and completed without appreciable delay. The
10Department and Board shall have the authority to review the
11subject individual's record of treatment and counseling
12regarding the impairment to the extent permitted by applicable
13federal statutes and regulations safeguarding the
14confidentiality of medical records.
15    An individual licensed under this Act and affected under
16this Section shall be afforded an opportunity to demonstrate to
17the Department or Board that he or she can resume practice in
18compliance with acceptable and prevailing standards under the
19provisions of his or her license.
20(Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14;
2199-227, eff. 8-3-15.)
 
22    (225 ILCS 454/20-60)
23    (Section scheduled to be repealed on January 1, 2020)
24    Sec. 20-60. Investigations notice and hearing. The
25Department may investigate the actions of any applicant or of

 

 

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1any person or persons rendering or offering to render services
2or any person holding or claiming to hold a license under this
3Act and may notify his or her managing broker and sponsoring
4broker of the pending investigation. The Department shall,
5before revoking, suspending, placing on probation,
6reprimanding, or taking any other disciplinary action under
7Article 20 of this Act, at least 30 days before the date set
8for the hearing, (i) notify the accused and his or her managing
9broker and sponsoring broker in writing of the charges made and
10the time and place for the hearing on the charges, (ii) direct
11the accused him or her to file a written answer to the charges
12with the Board under oath within 20 days after the service on
13him or her of the notice, and (iii) inform the accused that if
14he or she fails to answer, default will be taken against him or
15her or that his or her license may be suspended, revoked,
16placed on probationary status, or other disciplinary action
17taken with regard to the license, including limiting the scope,
18nature, or extent of his or her practice, as the Department may
19consider proper. At the time and place fixed in the notice, the
20Board shall proceed to hear the charges and the parties or
21their counsel shall be accorded ample opportunity to present
22any pertinent statements, testimony, evidence, and arguments.
23The Board may continue the hearing from time to time. In case
24the person, after receiving the notice, fails to file an
25answer, his or her license may, in the discretion of the
26Department, be suspended, revoked, placed on probationary

 

 

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1status, or the Department may take whatever disciplinary action
2considered proper, including limiting the scope, nature, or
3extent of the person's practice or the imposition of a fine,
4without a hearing, if the act or acts charged constitute
5sufficient grounds for that action under this Act. The written
6notice may be served by personal delivery or by certified mail
7to the address specified by the accused in his or her last
8notification with the Department and shall include notice to
9the managing broker and sponsoring broker. A copy of the
10Department's final order shall be delivered to the managing
11broker and sponsoring broker.
12(Source: P.A. 96-856, eff. 12-31-09.)
 
13    (225 ILCS 454/25-10)
14    (Section scheduled to be repealed on January 1, 2020)
15    Sec. 25-10. Real Estate Administration and Disciplinary
16Board; duties. There is created the Real Estate Administration
17and Disciplinary Board. The Board shall be composed of 15 9
18persons appointed by the Governor. Members shall be appointed
19to the Board subject to the following conditions:
20        (1) All members shall have been residents and citizens
21    of this State for at least 6 years prior to the date of
22    appointment.
23        (2) Twelve Six members shall have been actively engaged
24    as managing brokers or brokers or both for at least the 10
25    years prior to the appointment, 2 of whom must possess an

 

 

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1    active pre-license instructor license.
2        (3) Three members of the Board shall be public members
3    who represent consumer interests.
4    None of these members shall be (i) a person who is licensed
5under this Act or a similar Act of another jurisdiction, (ii)
6the spouse or family member of a licensee, (iii) a person who
7has an ownership interest in a real estate brokerage business,
8or (iv) a person the Department determines to have any other
9connection with a real estate brokerage business or a licensee.
10    The members' terms shall be 4 years or until their
11successor is appointed, and the expiration of their terms shall
12be staggered. No member shall be reappointed to the Board for a
13term that would cause his or her cumulative service to the
14Board to exceed 12 years. Appointments to fill vacancies shall
15be for the unexpired portion of the term. Those members of the
16Board that satisfy the requirements of paragraph (2) shall be
17chosen in a manner such that no area of the State shall be
18unreasonably represented. The membership of the Board should
19reasonably reflect the geographic distribution of the licensee
20population in this State. In making the appointments, the
21Governor shall give due consideration to the recommendations by
22members and organizations of the profession. The Governor may
23terminate the appointment of any member for cause that in the
24opinion of the Governor reasonably justifies the termination.
25Cause for termination shall include without limitation
26misconduct, incapacity, neglect of duty, or missing 4 board

 

 

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1meetings during any one calendar year. Each member of the Board
2may receive a per diem stipend in an amount to be determined by
3the Secretary. Each member shall be paid his or her necessary
4expenses while engaged in the performance of his or her duties.
5Such compensation and expenses shall be paid out of the Real
6Estate License Administration Fund. The Secretary shall
7consider the recommendations of the Board on questions
8involving standards of professional conduct, discipline,
9education, and policies and procedures and examination of
10candidates under this Act. With regard to this subject matter,
11the Secretary may establish temporary or permanent committees
12of the Board and may consider the recommendations of the Board
13on matters that include, but are not limited to, criteria for
14the licensing and renewal of education providers, pre-license
15and continuing education instructors, pre-license and
16continuing education curricula, standards of educational
17criteria, and qualifications for licensure and renewal of
18professions, courses, and instructors. The Department, after
19notifying and considering the recommendations of the Board, if
20any, may issue rules, consistent with the provisions of this
21Act, for the administration and enforcement thereof and may
22prescribe forms that shall be used in connection therewith.
23Eight Five Board members shall constitute a quorum. A quorum is
24required for all Board decisions.
25(Source: P.A. 98-1109, eff. 1-1-15; 99-227, eff. 8-3-15.)
 

 

 

HB3528 Engrossed- 48 -LRB100 11358 SMS 21742 b

1    (225 ILCS 454/Art. 30 heading)
2
ARTICLE 30. EDUCATION PROVIDERS AND COURSES SCHOOLS AND
3
INSTRUCTORS

 
4    (225 ILCS 454/30-5)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 30-5. Licensing of real estate education providers,
7education provider pre-license schools, school branches, and
8instructors.
9    (a) No person shall operate an education provider entity
10without possessing a valid and active license issued by the
11Department. Only education providers in possession of a valid
12education provider license may provide real estate
13pre-license, post-license, or continuing education courses
14that satisfy the requirements of this Act. Every person that
15desires to obtain an education provider license shall make
16application to the Department in writing on forms prescribed by
17the Department and pay the fee prescribed by rule. In addition
18to any other information required to be contained in the
19application as prescribed by rule, every application for an
20original or renewed license shall include the applicant's
21Social Security number or tax identification number. No person
22shall operate a pre-license school or school branch without
23possessing a valid pre-license school or school branch license
24issued by the Department. No person shall act as a pre-license
25instructor at a pre-license school or school branch without

 

 

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1possessing a valid pre-license instructor license issued by the
2Department. Every person who desires to obtain a pre-license
3school, school branch, or pre-license instructor license shall
4make application to the Department in writing in form and
5substance satisfactory to the Department and pay the required
6fees prescribed by rule. In addition to any other information
7required to be contained in the application, every application
8for an original license shall include the applicant's Social
9Security number, which shall be retained in the agency's
10records pertaining to the license. As soon as practical, the
11Department shall assign a customer's identification number to
12each applicant for a license.
13    Every application for a renewal or restored license shall
14require the applicant's customer identification number.
15    The Department shall issue a pre-license school, school
16branch, or pre-license instructor license to applicants who
17meet qualification criteria established by rule. The
18Department may refuse to issue, suspend, revoke, or otherwise
19discipline a pre-license school, school branch, or pre-license
20instructor license or may withdraw approval of a course offered
21by a pre-license school for good cause. Disciplinary
22proceedings shall be conducted by the Board in the same manner
23as other disciplinary proceedings under this Act.
24    (b) (Blank). All pre-license instructors must teach at
25least one course within the period of licensure or take an
26instructor training program approved by the Department in lieu

 

 

HB3528 Engrossed- 50 -LRB100 11358 SMS 21742 b

1thereof. A pre-license instructor may teach at more than one
2licensed pre-license school.
3    (c) (Blank). The term of license for pre-license schools,
4branches, and instructors shall be 2 years as established by
5rule.
6    (d) (Blank). The Department or the Advisory Council may,
7after notice, cause a pre-license school to attend an informal
8conference before the Advisory Council for failure to comply
9with any requirement for licensure or for failure to comply
10with any provision of this Act or the rules for the
11administration of this Act. The Advisory Council shall make a
12recommendation to the Board as a result of its findings at the
13conclusion of any such informal conference.
14    (e) (Blank). For purposes of this Section, the term
15"pre-license" shall also include the 30-hour post-license
16course required to be taken to retain a broker's license.
17    (f) To qualify for an education provider license, an
18applicant must demonstrate the following:
19        (1) a sound financial base for establishing,
20    promoting, and delivering the necessary courses; budget
21    planning for the school's courses should be clearly
22    projected;
23        (2) a sufficient number of qualified, licensed
24    instructors as provided by rule;
25        (3) adequate support personnel to assist with
26    administrative matters and technical assistance;

 

 

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1        (4) maintenance and availability of records of
2    participation for licensees;
3        (5) the ability to provide each participant who
4    successfully completes an approved program with a
5    certificate of completion signed by the administrator of a
6    licensed education provider on forms provided by the
7    Department;
8        (6) a written policy dealing with procedures for the
9    management of grievances and fee refunds;
10        (7) lesson plans and examinations, if applicable, for
11    each course;
12        (8) a 75% passing grade for successful completion of
13    any continuing education course or pre-license or
14    post-license examination, if required;
15        (9) the ability to identify and use instructors who
16    will teach in a planned program; instructor selections must
17    demonstrate:
18            (A) appropriate credentials;
19            (B) competence as a teacher;
20            (C) knowledge of content area; and
21            (D) qualification by experience.
22    Unless otherwise provided for in this Section, the
23education provider shall provide a proctor or an electronic
24means of proctoring for each examination; the education
25provider shall be responsible for the conduct of the proctor;
26the duties and responsibilities of a proctor shall be

 

 

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1established by rule.
2    Unless otherwise provided for in this Section, the
3education provider must provide for closed book examinations
4for each course unless the Department, upon the recommendation
5of the Board, excuses this requirement based on the complexity
6of the course material.
7    (g) Advertising and promotion of education activities must
8be carried out in a responsible fashion clearly showing the
9educational objectives of the activity, the nature of the
10audience that may benefit from the activity, the cost of the
11activity to the participant and the items covered by the cost,
12the amount of credit that can be earned, and the credentials of
13the faculty.
14    (h) The Department may, or upon request of the Board shall,
15after notice, cause an education provider to attend an informal
16conference before the Board for failure to comply with any
17requirement for licensure or for failure to comply with any
18provision of this Act or the rules for the administration of
19this Act. The Board shall make a recommendation to the
20Department as a result of its findings at the conclusion of any
21such informal conference.
22    (i) All education providers shall maintain these minimum
23criteria and pay the required fee in order to retain their
24education provider license.
25    (j) The Department may adopt any administrative rule
26consistent with the language and intent of this Act that may be

 

 

HB3528 Engrossed- 53 -LRB100 11358 SMS 21742 b

1necessary for the implementation and enforcement of this
2Section.
3(Source: P.A. 96-856, eff. 12-31-09; 97-400, eff. 1-1-12.)
 
4    (225 ILCS 454/30-15)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 30-15. Licensing of continuing education providers
7schools; approval of courses.
8    (a) (Blank). Only continuing education schools in
9possession of a valid continuing education school license may
10provide real estate continuing education courses that will
11satisfy the requirements of this Act. Pre-license schools
12licensed to offer pre-license education courses for brokers,
13managing brokers, or leasing agents shall qualify for a
14continuing education school license upon completion of an
15application and the submission of the required fee. Every
16entity that desires to obtain a continuing education school
17license shall make application to the Department in writing in
18forms prescribed by the Department and pay the fee prescribed
19by rule. In addition to any other information required to be
20contained in the application, every application for an original
21or renewed license shall include the applicant's Social
22Security number.
23    (b) (Blank). The criteria for a continuing education
24license shall include the following:
25        (1) A sound financial base for establishing,

 

 

HB3528 Engrossed- 54 -LRB100 11358 SMS 21742 b

1    promoting, and delivering the necessary courses. Budget
2    planning for the School's courses should be clearly
3    projected.
4        (2) A sufficient number of qualified, licensed
5    instructors as provided by rule.
6        (3) Adequate support personnel to assist with
7    administrative matters and technical assistance.
8        (4) Maintenance and availability of records of
9    participation for licensees.
10        (5) The ability to provide each participant who
11    successfully completes an approved program with a
12    certificate of completion signed by the administrator of a
13    licensed continuing education school on forms provided by
14    the Department.
15        (6) The continuing education school must have a written
16    policy dealing with procedures for the management of
17    grievances and fee refunds.
18        (7) The continuing education school shall maintain
19    lesson plans and examinations for each course.
20        (8) The continuing education school shall require a 70%
21    passing grade for successful completion of any continuing
22    education course.
23        (9) The continuing education school shall identify and
24    use instructors who will teach in a planned program.
25    Suggested criteria for instructor selections include:
26            (A) appropriate credentials;

 

 

HB3528 Engrossed- 55 -LRB100 11358 SMS 21742 b

1            (B) competence as a teacher;
2            (C) knowledge of content area; and
3            (D) qualification by experience.
4        (10) The continuing education school shall provide a
5    proctor or an electronic means of proctoring for each
6    examination. The continuing education school shall be
7    responsible for the conduct of the proctor. The duties and
8    responsibilities of a proctor shall be established by rule.
9        (11) The continuing education school must provide for
10    closed book examinations for each course unless the
11    Advisory Council excuses this requirement based on the
12    complexity of the course material.
13    (c) (Blank). Advertising and promotion of continuing
14education activities must be carried out in a responsible
15fashion, clearly showing the educational objectives of the
16activity, the nature of the audience that may benefit from the
17activity, the cost of the activity to the participant and the
18items covered by the cost, the amount of credit that can be
19earned, and the credentials of the faculty.
20    (d) (Blank). The Department may or upon request of the
21Advisory Council shall, after notice, cause a continuing
22education school to attend an informal conference before the
23Advisory Council for failure to comply with any requirement for
24licensure or for failure to comply with any provision of this
25Act or the rules for the administration of this Act. The
26Advisory Council shall make a recommendation to the Board as a

 

 

HB3528 Engrossed- 56 -LRB100 11358 SMS 21742 b

1result of its findings at the conclusion of any such informal
2conference.
3    (e) (Blank). All continuing education schools shall
4maintain these minimum criteria and pay the required fee in
5order to retain their continuing education school license.
6    (f) All education providers continuing education schools
7shall submit, at the time of initial application and with each
8license renewal, a list of courses with course materials that
9comply with the course requirements in this Act to be offered
10by the education provider continuing education school. The
11Department may , however, shall establish an online a mechanism
12by which education providers whereby continuing education
13schools may submit apply for and obtain approval by the
14Department upon the recommendation of the Board or its designee
15pre-license, post-license, or continuing education for
16continuing education courses that are submitted after the time
17of the education provider's initial license application or
18renewal. The Department shall provide to each education
19provider continuing education school a certificate for each
20approved pre-license, post-license, or continuing education
21course. All pre-license, post-license, or continuing education
22courses shall be valid for the period coinciding with the term
23of license of the education provider. However, in no case shall
24a course continue to be valid if it does not, at all times,
25meet all of the requirements of the core curriculum established
26by this Act and the Board, as modified from time to time in

 

 

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1accordance with this Act continuing education school. All
2education providers continuing education schools shall provide
3a copy of the certificate of the pre-license, post-license, or
4continuing education course within the course materials given
5to each student or shall display a copy of the certificate of
6the pre-license, post-license, or continuing education course
7in a conspicuous place at the location of the class.
8    (g) Each education provider continuing education school
9shall provide to the Department a monthly report in a frequency
10and format determined by the Department, with information
11concerning students who successfully completed all approved
12pre-license, post-license, or continuing education courses
13offered by the continuing education provider school for the
14prior month.
15    (h) The Department, upon the recommendation of the Board
16Advisory Council, may temporarily suspend a licensed
17continuing education provider's school's approved courses
18without hearing and refuse to accept successful completion of
19or participation in any of these pre-license, post-license, or
20continuing education courses for continuing education credit
21from that education provider school upon the failure of that
22continuing education provider school to comply with the
23provisions of this Act or the rules for the administration of
24this Act, until such time as the Department receives
25satisfactory assurance of compliance. The Department shall
26notify the continuing education provider school of the

 

 

HB3528 Engrossed- 58 -LRB100 11358 SMS 21742 b

1noncompliance and may initiate disciplinary proceedings
2pursuant to this Act. The Department may refuse to issue,
3suspend, revoke, or otherwise discipline the license of an a
4continuing education provider school or may withdraw approval
5of a pre-license, post-license, or continuing education course
6for good cause. Failure to comply with the requirements of this
7Section or any other requirements established by rule shall be
8deemed to be good cause. Disciplinary proceedings shall be
9conducted by the Board in the same manner as other disciplinary
10proceedings under this Act.
11    (i) Pre-license, post-license, and continuing education
12courses, whether submitted for approval at the time of an
13education provider's initial application for licensure or
14otherwise, must meet the following minimum course
15requirements:
16        (1) No continuing education course shall be required to
17    be taught in increments longer than 2 hours in duration;
18    however, for each 2 hours of course time in each course,
19    there shall be a minimum of 100 minutes of instruction.
20        (2) All core curriculum courses shall be provided only
21    in the classroom or through a live, interactive webinar or
22    online distance education format.
23        (3) Courses provided through a live, interactive
24    webinar shall require all participants to demonstrate
25    their attendance in and attention to the course by
26    answering or responding to at least one polling question

 

 

HB3528 Engrossed- 59 -LRB100 11358 SMS 21742 b

1    per 30 minutes of course instruction. In no event shall the
2    interval between polling questions exceed 30 minutes.
3        (4) All participants in courses provided in an online
4    distance education format shall demonstrate proficiency
5    with the subject matter of the course through verifiable
6    responses to questions included in the course content.
7        (5) Credit for courses completed in a classroom or
8    through a live, interactive webinar or online distance
9    education format shall not require an examination.
10        (6) Credit for courses provided through
11    correspondence, or by home study, shall require the passage
12    of an in-person, proctored examination.
13    (j) The Department is authorized to engage a third party as
14the Board's designee to perform the functions specifically
15provided for in subsection (f) of this Section, namely that of
16administering the online system for receipt, review, and
17approval or denial of new courses.
18    (k) The Department may adopt any administrative rule
19consistent with the language and intent of this Act that may be
20necessary for the implementation and enforcement of this
21Section.
22(Source: P.A. 99-227, eff. 8-3-15.)
 
23    (225 ILCS 454/30-20)
24    (Section scheduled to be repealed on January 1, 2020)
25    Sec. 30-20. Fees for continuing education provider school

 

 

HB3528 Engrossed- 60 -LRB100 11358 SMS 21742 b

1license; renewal; term. All applications for an a continuing
2education provider school license shall be accompanied by a
3nonrefundable application fee in an amount established by rule.
4All continuing education providers schools shall be required to
5submit a renewal application, the required fee as established
6by rule, and a listing of the courses to be offered during the
7year in order to renew their continuing education provider
8school licenses. The term for an a continuing education
9provider school license shall be 2 years and as established by
10rule. The fees collected under this Article 30 shall be
11deposited in the Real Estate License Administration Fund and
12shall be used to defray the cost of administration of the
13program and per diem of the Board Advisory Council as
14determined by the Secretary.
15(Source: P.A. 96-856, eff. 12-31-09.)
 
16    (225 ILCS 454/30-25)
17    (Section scheduled to be repealed on January 1, 2020)
18    Sec. 30-25. Licensing of continuing education provider
19instructors.
20    (a) No such person shall act as either a pre-license or
21continuing education instructor at a continuing education
22school or branch without possessing a valid pre-license or
23continuing education instructor license and satisfying any
24other qualification criteria established by the Department by
25rule.

 

 

HB3528 Engrossed- 61 -LRB100 11358 SMS 21742 b

1    (a-5) Each person that is an instructor for pre-license,
2continuing education core curriculum, or broker management
3education courses shall meet specific criteria established by
4the Department by rule. Those persons who have not met the
5criteria shall only teach continuing education elective
6curriculum courses.
7    (b) Every After the effective date of this Act, every
8person who desires to obtain an a continuing education provider
9instructor's license shall attend and successfully complete a
10one-day instructor development workshop, as approved by the
11Department. However, pre-license instructors who have complied
12with subsection (b) of this Section 30-25 shall not be required
13to complete the instructor workshop in order to teach
14continuing education elective curriculum courses.
15    (b-5) The term of licensure for a pre-license or continuing
16education instructor shall be 2 years and as established by
17rule. Every person who desires to obtain a pre-license or
18continuing education instructor license shall make application
19to the Department in writing on forms prescribed by the
20Department Office, accompanied by the fee prescribed by rule.
21In addition to any other information required to be contained
22in the application, every application for an original license
23shall include the applicant's Social Security number, which
24shall be retained in the agency's records pertaining to the
25license. As soon as practical, the Department shall assign a
26customer's identification number to each applicant for a

 

 

HB3528 Engrossed- 62 -LRB100 11358 SMS 21742 b

1license.
2    Every application for a renewal or restored license shall
3require the applicant's customer identification number.
4    The Department shall issue a pre-license or continuing
5education instructor license to applicants who meet
6qualification criteria established by this Act or rule.
7    (c) The Department may refuse to issue, suspend, revoke, or
8otherwise discipline a pre-license or continuing education
9instructor for good cause. Disciplinary proceedings shall be
10conducted by the Board in the same manner as other disciplinary
11proceedings under this Act. All pre-license instructors must
12teach at least one pre-license or continuing education core
13curriculum course within the period of licensure as a
14requirement for renewal of the instructor's license. All
15continuing education instructors must teach at least one course
16within the period of licensure or take an instructor training
17program approved by the Department in lieu thereof as a
18requirement for renewal of the instructor's license.
19    (d) Each course transcript submitted by an education
20provider to the Department shall include the name and license
21number of the pre-license or continuing education instructor
22for the course.
23    (e) Licensed education provider instructors may teach for
24more than one licensed education provider.
25    (f) The Department may adopt any administrative rule
26consistent with the language and intent of this Act that may be

 

 

HB3528 Engrossed- 63 -LRB100 11358 SMS 21742 b

1necessary for the implementation and enforcement of this
2Section.
3(Source: P.A. 96-856, eff. 12-31-09; 97-400, eff. 1-1-12.)
 
4    (225 ILCS 454/5-26 rep.)
5    (225 ILCS 454/5-85 rep.)
6    (225 ILCS 454/20-78 rep.)
7    (225 ILCS 454/30-10 rep.)
8    Section 10. The Real Estate License Act of 2000 is amended
9by repealing Sections 5-26, 5-85, 20-78, and 30-10.
 
10    Section 99. Effective date. This Act takes effect January
111, 2018.