Rep. Angelo Saviano

Filed: 5/10/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1539

2    AMENDMENT NO. ______. Amend Senate Bill 1539 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Appraisal Management Company Registration Act.
 
6    Section 5. Findings. The General Assembly finds that: It
7is the intent of the General Assembly that this Act provide for
8the regulation of those persons or entities engaged as
9appraisal management companies for the protection of the public
10and for the maintenance of high standards of professional
11conduct by those registered as appraisal management companies
12and to ensure appraisal independence in the determination of
13real estate valuations.
 
14    Section 10. Definitions. In this Act:
15    "Address of record" means the designated address recorded

 

 

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1by the Department in the applicant's or registrant's
2application file or registration file maintained by the
3Department's registration maintenance unit. It is the duty of
4the applicant or registrant to inform the Department of any
5change of address, and the changes must be made either through
6the Department's website or by contacting the Department's
7registration maintenance unit within a prescribed time period
8as defined by rule.
9    "Applicant" means a person or entity who applies to the
10Department for a registration under this Act.
11    "Appraisal" means (noun) the act or process of developing
12an opinion of value; an opinion of value (adjective) of or
13pertaining to appraising and related functions.
14    "Appraisal firm" means an appraisal entity that is 100%
15owned and controlled by a person or persons licensed in
16Illinois as a certified general real estate appraiser or a
17certified residential real estate appraiser. An appraisal firm
18does not include an appraisal management company.
19    "Appraisal management company" means any corporation,
20limited liability company, partnership, sole proprietorship,
21subsidiary, unit, or other business entity that directly or
22indirectly performs the following appraisal management
23services: (1) administers networks of independent contractors
24or employee appraisers to perform real estate appraisal
25assignments for clients; (2) receives requests for real estate
26appraisal services from clients and, for a fee paid by the

 

 

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1client, enters into an agreement with one or more independent
2appraisers to perform the real estate appraisal services
3contained in the request; or (3) otherwise serves as a
4third-party broker of appraisal management services between
5clients and appraisers.
6    "Appraisal report" means a written appraisal by an
7appraiser to a client.
8    "Appraisal practice service" means valuation services
9performed by an individual acting as an appraiser, including,
10but not limited to, appraisal, appraisal review, or appraisal
11consulting.
12    "Appraiser" means a person who performs real estate or real
13property appraisals.
14    "Assignment result" means an appraiser's opinions and
15conclusions developed specific to an assignment.
16    "Board" means the Real Estate Appraisal Administration and
17Disciplinary Board.
18    "Client" means the party or parties who engage an appraiser
19by employment or contract in a specific appraisal assignment.
20    "Controlling Person" means:
21        (1) an owner, officer, or director of an entity seeking
22    to offer appraisal management services;
23        (2) an individual employed, appointed, or authorized
24    by an appraisal management company who has the authority
25    to:
26            (A) enter into a contractual relationship with a

 

 

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1        client for the performance of an appraisal management
2        service or appraisal practice service; and
3            (B) enter into an agreement with an appraiser for
4        the performance of a real estate appraisal activity; or
5        (3) an individual who possesses, directly or
6    indirectly, the power to direct or cause the direction of
7    the management or policies of an appraisal management
8    company.
9    "Coordinator" means the Coordinator of the Appraisal
10Management Company Registration Unit of the Department or his
11or her designee.
12    "Department" means the Department of Financial and
13Professional Regulation.
14    "Entity" means a corporation, a limited liability company,
15partnership, a sole proprietorship, or other entity providing
16services or holding itself out to provide services as an
17appraisal management company or an appraisal management
18service.
19    "End-user client" means any person who utilizes or engages
20the services of an appraiser through an appraisal management
21company.
22    "Financial institution" means any bank, savings bank,
23savings and loan association, credit union, mortgage broker,
24mortgage banker, registrant under the Consumer Installment
25Loan Act or the Sales Finance Agency Act, or a corporate
26fiduciary, subsidiary, affiliate, parent company, or holding

 

 

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1company of any registrant, or any institution involved in real
2estate financing that is regulated by State or federal law.
3    "Person" means individuals, entities, sole
4proprietorships, corporations, limited liability companies,
5and partnerships, foreign or domestic, except that when the
6context otherwise requires, the term may refer to a single
7individual or other described entity.
8    "Quality control review" means a review of an appraisal
9report for compliance and completeness, including grammatical,
10typographical, or other similar errors, unrelated to
11developing an opinion of value.
12    "Real estate" means an identified parcel or tract of land,
13including any improvements.
14    "Real estate related financial transaction" means any
15transaction involving:
16        (1) the sale, lease, purchase, investment in, or
17    exchange of real property, including interests in property
18    or the financing thereof;
19        (2) the refinancing of real property or interests in
20    real property; and
21        (3) the use of real property or interest in property as
22    security for a loan or investment, including mortgage
23    backed securities.
24    "Real property" means the interests, benefits, and rights
25inherent in the ownership of real estate.
26    "Secretary" means the Secretary of Financial and

 

 

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1Professional Regulation.
2    "USPAP" means the Uniform Standards of Professional
3Appraisal Practice as adopted by the Appraisal Standards Board
4under Title XI.
5    "Valuation" means any estimate of the value of real
6property in connection with a creditor's decision to provide
7credit, including those values developed under a policy of a
8government sponsored enterprise or by an automated valuation
9model or other methodology or mechanism.
 
10    Section 15. Exemptions. Nothing in this Act shall apply to
11any of the following:
12        (1) an agency of the federal, State, county, or
13    municipal government or an officer or employee of a
14    government agency, or person, described in this Section
15    when acting within the scope of employment of the officer
16    or employee;
17        (2) a corporate relocation company when the appraisal
18    is not used for mortgage purposes and the end user client
19    is an employer company;
20        (3) any person licensed in this State under any other
21    Act while engaged in the activities or practice for which
22    he or she is licensed;
23        (4) any person licensed to practice law in this State
24    who is working with or on behalf of a client of that person
25    in connection with one or more appraisals for that client;

 

 

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1        (5) an appraiser that enters into an agreement, whether
2    written or otherwise, with another appraiser for the
3    performance of an appraisal, and upon the completion of the
4    appraisal, the report of the appraiser performing the
5    appraisal is signed by both the appraiser who completed the
6    appraisal and the appraiser who requested the completion of
7    the appraisal, except that an appraisal management company
8    may not avoid the requirement of registration under this
9    Act by requiring an employee of the appraisal management
10    company who is an appraiser to sign an appraisal that was
11    completed by another appraiser who is part of the appraisal
12    panel of the appraisal management company;
13        (6) any person acting as an agent of the Illinois
14    Department of Transportation in the acquisition or
15    relinquishment of land for transportation issues to the
16    extent of their contract scope; or
17        (7) a design professional entity when the appraisal is
18    not used for mortgage purposes and the end user client is
19    an agency of State government or a unit of local
20    government.
21    In the event that the Final Interim Rule of the federal
22Dodd-Frank Wall Street Reform and Consumer Protection Act
23provides that an appraisal management company is a subsidiary
24owned and controlled by a financial institution regulated by a
25federal financial institution's regulatory agency and is
26exempt from State appraisal management company registration

 

 

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1requirements, the Department, shall, by rule, provide for the
2implementation of such an exemption.
 
3    Section 20. Restrictions and limitations. Beginning
4January 1, 2012, it is unlawful for a person or entity to act
5or assume to act as an appraisal management company as defined
6in this Act, to engage in the business of appraisal management
7service, or to advertise or hold himself or herself out to be a
8registered appraisal management company without first
9obtaining a registration issued by the Department under this
10Act. A person or entity that violates this Section is guilty of
11a Class A misdemeanor for the first offense and a Class 4
12felony for second and subsequent offenses.
13    Persons practicing as an appraisal management company in
14Illinois as of the effective date of this Act may continue to
15practice as provided in this Act until the Department has
16adopted rules implementing this Act. To continue practicing as
17an appraisal management company after the adoption of rules,
18persons shall apply for registration within 180 days after the
19effective date of the rules. If an application is received
20during the 180-day period, the person may continue to practice
21until the Department acts to grant or deny registration. If an
22application is not filed within the 180-day period, the person
23must cease the practice at the conclusion of the 180-day period
24and until the Department acts to grant a registration to the
25person.
 

 

 

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1    Section 25. Powers and duties of the Department. Subject
2to the provisions of this Act:
3        (1) The Department may ascertain the qualifications
4    and fitness of applicants for registration and pass upon
5    the qualifications of applicants for registration.
6        (2) The Department may conduct hearings on proceedings
7    to refuse to issue or renew or to revoke registrations or
8    suspend, place on probation, or reprimand persons or
9    otherwise discipline individuals or entities subject to
10    this Act.
11        (3) The Department may formulate all rules required for
12    the administration of this Act. With the exception of
13    emergency rules, any proposed rules, amendments, second
14    notice materials, and adopted rule or amendment materials
15    or policy statements concerning appraisal management
16    companies shall be presented to the Real Estate Appraisal
17    Administration and Disciplinary Board for review and
18    comment. The recommendations of the Board shall be
19    presented to the Secretary for consideration in making
20    final decisions.
21        (4) The Department may maintain rosters of the names
22    and addresses of all registrants, and all persons whose
23    registrations have been suspended, revoked, or denied
24    renewal for cause within the previous calendar year or
25    otherwise disciplined. These rosters shall be available

 

 

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1    upon written request and payment of the required fee as
2    established by rule.
 
3    Section 30. Coordinator of Appraisal Management Company
4Registration. The Coordinator of Real Estate Appraisal shall
5serve as the Coordinator of Appraisal Management Company
6Registration. The Coordinator shall have the same duties and
7responsibilities in regards to appraisal management company
8registration as the Coordinator has in regards to appraisal
9licensure as set forth in the Real Estate Appraiser Licensing
10Act of 2002.
 
11    Section 35. Application for original registration.
12Applications for original registration shall be made to the
13Department on forms prescribed by the Department and
14accompanied by the required fee. All applications shall contain
15the information that, in the judgment of the Department, will
16enable the Department to pass on the qualifications of the
17applicant to be registered to practice as set by rule.
 
18    Section 40. Qualifications for registration.
19    (a) The Department may issue a certification of
20registration to practice under this Act to any applicant who
21applies to the Department on forms provided by the Department,
22pays the required non-refundable fee, and who provides the
23following:

 

 

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1        (1) the business name of the applicant seeking
2    registration;
3        (2) the business address or addresses and contact
4    information of the applicant seeking registration;
5        (3) if the business applicant is not a corporation that
6    is domiciled in this State, then the name and contact
7    information for the company's agent for service of process
8    in this State;
9        (4) the name, address, and contact information for any
10    individual or any corporation, partnership, limited
11    liability company, association, or other business
12    applicant that owns 10% or more of the appraisal management
13    company;
14        (5) the name, address, and contact information for a
15    designated controlling person;
16        (6) a certification that the applicant will utilize
17    Illinois licensed appraisers to provide appraisal services
18    within the State of Illinois;
19        (7) a certification that the applicant has a system in
20    place utilizing a licensed Illinois appraiser to review the
21    work of all employed and independent appraisers that are
22    performing real estate appraisal services in Illinois for
23    the appraisal management company on a periodic basis,
24    except for a quality control review, to verify that the
25    real estate appraisal assignments are being conducted in
26    accordance with USPAP;

 

 

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1        (8) a certification that the applicant maintains a
2    detailed record of each service request that it receives
3    and the independent appraiser that performs the real estate
4    appraisal services for the appraisal management company;
5        (9) a certification that the employees of the appraisal
6    management company working on behalf of the appraisal
7    management company directly involved in providing
8    appraisal management services, will be appropriately
9    trained and familiar with the appraisal process to
10    completely provide appraisal management services;
11        (10) an irrevocable Uniform Consent to Service of
12    Process, under rule; and
13        (11) a certification that the applicant shall comply
14    with all other requirements of this Act and rules
15    established for the implementation of this Act.
16    (b) Applicants have 3 years from the date of application to
17complete the application process. If the process has not been
18completed in 3 years, the application shall be denied, the fee
19shall be forfeited, and the applicant must reapply and meet the
20requirements in effect at the time of reapplication.
 
21    Section 45. Expiration and renewal of registration. The
22expiration date and renewal period for each registration shall
23be set by rule. A registrant whose registration has expired may
24reinstate his or her registration at any time within 5 years
25after the expiration thereof, by making a renewal application

 

 

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1and by paying the required fee.
2    Any registrant whose registration has expired for more than
35 years may have it restored by making application to the
4Department, paying the required fee, and filing acceptable
5proof of fitness to have the registration restored as set by
6rule.
 
7    Section 50. Bonds of registrants. All registrants shall
8maintain a bond in accordance with this Section. Each bond
9shall be for the recovery of expenses, fines, or fees due to or
10levied by the Department in accordance with this Act. The bond
11shall be payable when the registrant fails to comply with any
12provisions of this Act and shall be in the form of a surety
13bond in the amount of $25,000 as prescribed by the Department
14by rule. The bond shall be payable to the Department and shall
15be issued by an insurance company authorized to do business in
16this State. A copy of the bond, including any and all riders
17and endorsements executed subsequent to the effective date of
18the bond, shall be placed on file with the Department within 10
19days of the execution thereof. The bond may only be used for
20the recovery of expenses or the collection of fines or fees due
21to or levied by the Department and is not to be utilized for
22any other purpose.
 
23    Section 55. Fees.
24    (a) The fees for the administration and enforcement of this

 

 

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1Act, including, but not limited to, original registration,
2renewal, and restoration fees, shall be set by the Department
3by rule. The fees shall not be refundable.
4    (b) All fees and other moneys collected under this Act
5shall be deposited in the Appraisal Administration Fund.
 
6    Section 60. Returned checks; fines. Any person who
7delivers a check or other payment to the Department that is
8returned to the Department unpaid by the financial institution
9upon which it is drawn shall pay to the Department, in addition
10to the amount already owed to the Department, a fine of $50.
11The fines imposed by this Section are in addition to any other
12discipline provided under this Act for unregistered practice or
13practice on a nonrenewed registration. The Department shall
14notify the person that payment of fees and fines shall be paid
15to the Department by certified check or money order within 30
16calendar days of the notification. If, after the expiration of
1730 days after the date of the notification, the person has
18failed to submit the necessary remittance, the Department shall
19automatically terminate the registration or deny the
20application, without hearing. If, after termination or denial,
21the person seeks a registration, he or she shall apply to the
22Department for restoration or issuance of the registration and
23pay all fees and fines due to the Department. The Department
24may establish a fee for the processing of an application for
25restoration of a registration to pay all expenses of processing

 

 

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1this application. The Secretary may waive the fines due under
2this Section in individual cases where the Secretary finds that
3the fines would be unreasonable or unnecessarily burdensome.
 
4    Section 65. Disciplinary actions.
5    (a) The Department may refuse to issue or renew, or may
6revoke, suspend, place on probation, reprimand, or take other
7disciplinary or non-disciplinary action as the Department may
8deem appropriate, including imposing fines not to exceed
9$25,000 for each violation, with regard to any registration for
10any one or combination of the following:
11        (1) Material misstatement in furnishing information to
12    the Department.
13        (2) Violations of this Act, or of the rules adopted
14    under this Act.
15        (3) Conviction of, or entry of a plea of guilty or nolo
16    contendere to any crime that is a felony under the laws of
17    the United States or any state or territory thereof or that
18    is a misdemeanor of which an essential element is
19    dishonesty, or any crime that is directly related to the
20    practice of the profession.
21        (4) Making any misrepresentation for the purpose of
22    obtaining registration or violating any provision of this
23    Act or the rules adopted under this Act pertaining to
24    advertising.
25        (5) Professional incompetence.

 

 

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1        (6) Gross malpractice.
2        (7) Aiding or assisting another person in violating any
3    provision of this Act or rules adopted under this Act.
4        (8) Failing, within 30 days after requested, to provide
5    information in response to a written request made by the
6    Department.
7        (9) Engaging in dishonorable, unethical, or
8    unprofessional conduct of a character likely to deceive,
9    defraud, or harm the public.
10        (10) Discipline by another state, District of
11    Columbia, territory, or foreign nation, if at least one of
12    the grounds for the discipline is the same or substantially
13    equivalent to those set forth in this Section.
14        (11) A finding by the Department that the registrant,
15    after having his or her registration placed on probationary
16    status, has violated the terms of probation.
17        (12) Willfully making or filing false records or
18    reports in his or her practice, including, but not limited
19    to, false records filed with State agencies or departments.
20        (13) Filing false statements for collection of fees for
21    which services are not rendered.
22        (14) Practicing under a false or, except as provided by
23    law, an assumed name.
24        (15) Fraud or misrepresentation in applying for, or
25    procuring, a registration under this Act or in connection
26    with applying for renewal of a registration under this Act.

 

 

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1        (16) Being adjudicated liable in a civil proceeding for
2    violation of a state or federal fair housing law.
3        (17) Failure to obtain or maintain the bond required
4    under Section 50 of this Act.
5    (b) The Department may refuse to issue or may suspend
6without hearing as provided for in the Civil Administrative
7Code the registration of any person who fails to file a return,
8or to pay the tax, penalty or interest shown in a filed return,
9or to pay any final assessment of the tax, penalty, or interest
10as required by any tax Act administered by the Illinois
11Department of Revenue, until such time as the requirements of
12any such tax Act are satisfied.
 
13    Section 70. Injunctive action; cease and desist order.
14    (a) If any person violates the provisions of this Act, the
15Secretary, in the name of the People of the State of Illinois,
16through the Attorney General or the State's Attorney of the
17county in which the violation is alleged to have occurred, may
18petition for an order enjoining the violation or for an order
19enforcing compliance with this Act. Upon the filing of a
20verified petition, the court with appropriate jurisdiction may
21issue a temporary restraining order, without notice or bond,
22and may preliminarily and permanently enjoin the violation. If
23it is established that the person has violated or is violating
24the injunction, the court may punish the offender for contempt
25of court. Proceedings under this Section are in addition to,

 

 

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1and not in lieu of, all other remedies and penalties provided
2by this Act.
3    (b) Whenever, in the opinion of the Department, a person
4violates any provision of this Act, the Department may issue a
5rule to show cause why an order to cease and desist should not
6be entered against that person. The rule shall clearly set
7forth the grounds relied upon by the Department and shall allow
8at least 7 days from the date of the rule to file an answer
9satisfactory to the Department. Failure to answer to the
10satisfaction of the Department shall cause an order to cease
11and desist to be issued.
 
12    Section 75. Investigations; notice and hearing. The
13Department may investigate the actions of any applicant or of
14any person or persons rendering or offering to render any
15services requiring registration under this Act or any person
16holding or claiming to hold a registration as an appraisal
17management company. The Department shall, before revoking,
18suspending, placing on probation, reprimanding, or taking any
19other disciplinary or non-disciplinary action under Section 65
20of this Act, at least 30 days before the date set for the
21hearing, (i) notify the accused in writing of the charges made
22and the time and place for the hearing on the charges, (ii)
23direct him or her to file a written answer to the charges with
24the Department under oath within 20 days after the service on
25him or her of the notice, and (iii) inform the accused that, if

 

 

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1he or she fails to answer, default will be taken against him or
2her or that his or her registration may be suspended, revoked,
3placed on probationary status, or other disciplinary action
4taken with regard to the registration, including limiting the
5scope, nature, or extent of his or her practice, as the
6Department may consider proper. At the time and place fixed in
7the notice, the Department shall proceed to hear the charges
8and the parties or their counsel shall be accorded ample
9opportunity to present any pertinent statements, testimony,
10evidence, and arguments. The Department may continue the
11hearing from time to time. In case the person, after receiving
12the notice, fails to file an answer, his or her registration
13may, in the discretion of the Department, be suspended,
14revoked, placed on probationary status, or the Department may
15take whatever disciplinary action considered proper, including
16limiting the scope, nature, or extent of the person's practice
17or the imposition of a fine, without a hearing, if the act or
18acts charged constitute sufficient grounds for that action
19under this Act. The written notice may be served by personal
20delivery or by certified mail to the address specified by the
21accused in his or her last notification with the Department.
 
22    Section 80. Record of proceedings; transcript. The
23Department, at its expense, shall preserve a record of all
24proceedings at the formal hearing of any case. The notice of
25hearing, complaint, all other documents in the nature of

 

 

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1pleadings, written motions filed in the proceedings, the
2transcripts of testimony, the report of the hearing officer,
3and orders of the Department shall be in the record of the
4proceeding. The Department shall furnish a transcript of the
5record to any person interested in the hearing upon payment of
6the fee required under Section 2105-115 of the Department of
7Professional Regulation Law.
 
8    Section 85. Subpoenas; depositions; oaths. The Department
9has the power to subpoena documents, books, records, or other
10materials and to bring before it any person and to take
11testimony either orally or by deposition, or both, with the
12same fees and mileage and in the same manner as prescribed in
13civil cases in the courts of this State.
14    The Secretary and the designated hearing officer have the
15power to administer oaths to witnesses at any hearing that the
16Department is authorized to conduct, and any other oaths
17authorized in any Act administered by the Department.
 
18    Section 90. Compelling testimony. Any circuit court, upon
19application of the Department or designated hearing officer may
20enter an order requiring the attendance of witnesses and their
21testimony, and the production of documents, papers, files,
22books, and records in connection with any hearing or
23investigation. The court may compel obedience to its order by
24proceedings for contempt.
 

 

 

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1    Section 95. Findings and recommendations. At the
2conclusion of the hearing, the designated hearing officer shall
3present to the Secretary a written report of his or her
4findings of fact, conclusions of law, and recommendations. The
5report shall contain a finding whether or not the accused
6person violated this Act or its rules or failed to comply with
7the conditions required in this Act or its rules. The hearing
8officer shall specify the nature of any violations or failure
9to comply and shall make his or her recommendations to the
10Secretary. In making recommendations for any disciplinary
11actions, the hearing officer may take into consideration all
12facts and circumstances bearing upon the reasonableness of the
13conduct of the accused and the potential for future harm to the
14public, including, but not limited to, previous discipline of
15the accused by the Department, intent, degree of harm to the
16public and likelihood of harm in the future, any restitution
17made by the accused, and whether the incident or incidents
18contained in the complaint appear to be isolated or represent a
19continuing pattern of conduct. In making his or her
20recommendations for discipline, the hearing officer shall
21endeavor to ensure that the severity of the discipline
22recommended is reasonably related to the severity of the
23violation. The report of findings of fact, conclusions of law,
24and recommendation of the hearing officer shall be the basis
25for the Department's order refusing to issue, restore, or renew

 

 

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1a registration, or otherwise disciplining a registrant. If the
2Secretary disagrees with the recommendations of the hearing
3officer, the Secretary may issue an order in contravention of
4the hearing officer recommendations. The finding is not
5admissible in evidence against the person in a criminal
6prosecution brought for a violation of this Act, but the
7hearing and finding are not a bar to a criminal prosecution
8brought for a violation of this Act.
 
9    Section 100. Hearing officer; rehearing. At the conclusion
10of the hearing, a copy of the hearing officer's report shall be
11served upon the applicant or registrant by the Department,
12either personally or as provided in this Act for the service of
13a notice of hearing. Within 20 days after service, the
14applicant or registrant may present to the Department a motion
15in writing for a rehearing, which shall specify the particular
16grounds for rehearing. The Department may respond to the motion
17for rehearing within 20 days after its service on the
18Department. If no motion for rehearing is filed, then upon the
19expiration of the time specified for filing such a motion, or
20if a motion for rehearing is denied, then upon denial, the
21Secretary may enter an order in accordance with recommendations
22of the hearing officer except as provided in Section 105 or 110
23of this Act. If the applicant or registrant orders from the
24reporting service and pays for a transcript of the record
25within the time for filing a motion for rehearing, the 20-day

 

 

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1period within which a motion may be filed shall commence upon
2the delivery of the transcript to the applicant or registrant.
 
3    Section 105. Secretary; rehearing. Whenever the Secretary
4believes that substantial justice has not been done in the
5revocation, suspension, or refusal to issue, restore, or renew
6a registration, or other discipline of an applicant or
7registrant, he or she may order a rehearing by the same or
8other hearing officers.
 
9    Section 110. Appointment of a hearing officer. The
10Secretary has the authority to appoint any attorney licensed to
11practice law in the State to serve as the hearing officer in
12any action for refusal to issue, restore, or renew a
13registration or to discipline a registrant. The hearing officer
14has full authority to conduct the hearing. The hearing officer
15shall report his or her findings of fact, conclusions of law,
16and recommendations to the Secretary. If the Secretary
17disagrees with the recommendation of the hearing officer, the
18Secretary may issue an order in contravention of the
19recommendation.
 
20    Section 115. Order or certified copy; prima facie proof.
21An order or certified copy thereof, over the seal of the
22Department and purporting to be signed by the Secretary, is
23prima facie proof that:

 

 

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1    (1) the signature is the genuine signature of the
2Secretary; and
3    (2) the Secretary is duly appointed and qualified.
 
4    Section 120. Restoration of suspended or revoked
5registration. At any time after the successful completion of a
6term of suspension or revocation of a registration, the
7Department may restore it to the registrant, upon the written
8recommendation of the hearing officer, unless after an
9investigation and a hearing the Secretary determines that
10restoration is not in the public interest.
 
11    Section 125. Surrender of registration. Upon the
12revocation or suspension of a registration, the registrant
13shall immediately surrender his or her registration to the
14Department. If the registrant fails to do so, the Department
15has the right to seize the registration.
 
16    Section 130. Summary suspension of a registration. The
17Secretary may summarily suspend the registration of any
18registrant under this Act without a hearing, simultaneously
19with the institution of proceedings for a hearing provided for
20in Section 75 of this Act, if the Secretary finds that evidence
21in the Secretary's possession indicates that the continuation
22of practice by the registrant would constitute an imminent
23danger to the public. In the event that the Secretary summarily

 

 

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1suspends the registration of a registrant under this Section
2without a hearing, a hearing must be commenced within 30 days
3after the suspension has occurred and concluded as
4expeditiously as practical.
 
5    Section 135. Administrative review; venue.
6    (a) All final administrative decisions of the Department
7are subject to judicial review under the Administrative Review
8Law and its rules. The term "administrative decision" is
9defined as in Section 3-101 of the Code of Civil Procedure.
10    (b) Proceedings for judicial review shall be commenced in
11the circuit court of the county in which the party applying for
12review resides, but if the party is not a resident of Illinois,
13the venue shall be in Sangamon County.
 
14    Section 140. Certifications of record; costs. The
15Department shall not be required to certify any record to the
16court, to file an answer in court, or to otherwise appear in
17any court in a judicial review proceeding unless and until the
18Department has received from the plaintiff payment of the costs
19of furnishing and certifying the record, which costs shall be
20determined by the Department. Failure on the part of the
21plaintiff to file the receipt in court is grounds for dismissal
22of the action.
 
23    Section 145. Violations. Any person who is found to have

 

 

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1violated any provision of this Act is guilty of a Class A
2misdemeanor. On conviction of a second or subsequent offense,
3the violator is guilty of a Class 4 felony.
 
4    Section 150. Civil penalties.
5    (a) In addition to any other penalty provided by law, any
6person who violates this Act shall forfeit and pay a civil
7penalty to the Department in an amount not to exceed $25,000
8for each violation as determined by the Department. The civil
9penalty shall be assessed by the Department in accordance with
10the provisions of this Act.
11    (b) The Department has the authority and power to
12investigate any and all unregistered activity.
13    (c) The civil penalty shall be paid within 60 days after
14the effective date of the order imposing the civil penalty. The
15order shall constitute a judgment and may be filed and
16execution had thereon in the same manner as any judgment from
17any court of record.
18    (d) All moneys collected under this Section shall be
19deposited into the Appraisal Administration Fund.
 
20    Section 155. Consent order. At any point in the
21proceedings as provided in this Act, both parties may agree to
22a negotiated consent order. The consent order shall be final
23upon signature of the Secretary.
 

 

 

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1    Section 160. Business practice provisions; standards of
2practice.
3    (a) The Department may adopt by rule the Uniform Standards
4of Professional Appraisal Practice as published from time to
5time by the Appraisal Standards Board of the Appraisal
6Foundation. Appraisal management companies shall not interfere
7with adherence to the Uniform Standards of Professional
8Appraisal Practice or the Real Estate Appraiser Act of 2002 or
9a subsequent Act by individuals licensed under the respective
10Acts.
11    (b) All payment policies from registrants under this Act to
12appraisers shall be written and definitive in nature.
13    (c) In the event of a value dispute or a requested
14reconsideration of value, the appraisal management company
15shall deliver all information that supports an increase or
16decrease in value to the appraiser. This information may
17include, but is not limited to, additional comparable sales.
18    (d) Each entity registered under this Act shall designate a
19controlling person who is responsible to assure that the
20company operates in compliance with this Act. The company shall
21file a form provided by the Department indicating the company's
22designation of the controlling person and such individual's
23acceptance of the responsibility. A registrant shall notify the
24Department of any change in its controlling person within 30
25days. Any registrant who does not comply with this subsection
26(d) shall have its registration suspended under the provisions

 

 

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1set forth in this Act until the registrant complies with this
2Section. Any individual registrant who operates as a sole
3proprietorship shall be considered a designated controlling
4person for the purposes of this Act.
5    (e) Appraisal management companies or employees of an
6appraisal management company involved in a real estate
7transaction who have a reasonable basis to believe that an
8appraiser involved in the preparation of an appraisal for the
9real estate transaction has failed to comply with the Uniform
10Standards of Professional Appraisal Practice, has violated
11this Act or its rules, or has otherwise engaged in unethical
12conduct shall report the matter to the Department. Any
13registrant, employee, or individual acting on behalf of a
14registrant, acting in good faith, and not in a willful and
15wanton manner, in complying with this Act by reporting the
16conduct to the Department shall not, as a result of such
17actions, be subject to criminal prosecution or civil damages.
18    (f) Appraisal management companies are required to be in
19compliance with the appraisal independence standards
20established under Section 129E of the federal Truth in Lending
21Act, including the requirement that fee appraisers be
22compensated at a customary and reasonable rate when the
23appraisal management company is providing services for a
24consumer credit transaction secured by the principal dwelling
25of a consumer. To the extent permitted by federal law or
26regulation, the Department shall formulate rules pertaining to

 

 

09700SB1539ham003- 29 -LRB097 08574 CEL 55425 a

1customary and reasonable rates of compensation for fee
2appraisers. The appraisal management company must certify to
3the Department that it has policies and procedures in place to
4be in compliance under the Final Interim Rule of the federal
5Dodd-Frank Wall Street Reform and Consumer Protection Act.
6    (g) No appraisal management company procuring or
7facilitating an appraisal may have a direct or indirect
8interest, financial or otherwise, in the real estate or the
9transaction that is the subject of the appraisal, as defined by
10the federal Dodd-Frank Wall Street Reform and Consumer
11Protection Act, any amendments thereto, or successor acts or
12other applicable provisions of federal law or regulations.
 
13    Section 165. Prohibited activities.
14    (a) No person or entity acting in the capacity of an
15appraisal management company shall improperly influence or
16attempt to improperly influence the development, reporting,
17result, or review of any appraisal by engaging, without
18limitation, in any of the following:
19        (1) Withholding or threatening to withhold timely
20    payment for a completed appraisal, except where addressed
21    in a mutually agreed upon contract.
22        (2) Withholding or threatening to withhold, either
23    expressed or by implication, future business from, or
24    demoting, or terminating, or threatening to demote or
25    terminate an Illinois licensed or certified appraiser.

 

 

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1        (3) Expressly or impliedly promising future business,
2    promotions, or increased compensation for an independent
3    appraiser.
4        (4) Conditioning an assignment for an appraisal
5    service or the payment of an appraisal fee or salary or
6    bonus on the opinion, conclusion, or valuation to be
7    reached in an appraisal report.
8        (5) Requesting that an appraiser provide an estimated,
9    predetermined, or desired valuation in an appraisal report
10    or provide estimated values or sales at any time prior to
11    the appraiser's completion of an appraisal report.
12        (6) Allowing or directing the removal of an appraiser
13    from an appraisal panel without prior written notice to the
14    appraiser.
15        (7) Requiring an appraiser to sign a non-compete clause
16    when not an employee of the entity.
17        (8) Requiring an appraiser to sign any sort of
18    indemnification agreement that would require the appraiser
19    to defend and hold harmless the appraisal management
20    company or any of its agents, employees, or independent
21    contractors for any liability, damage, losses, or claims
22    arising out of the services performed by the appraisal
23    management company or its agents, employees, or
24    independent contractors and not the services performed by
25    the appraiser.
26        (9) Prohibiting or attempting to prohibit the

 

 

09700SB1539ham003- 31 -LRB097 08574 CEL 55425 a

1    appraiser from including or referencing the appraisal fee,
2    the appraisal management company name or identity, or the
3    client's or lender's name or identity within the body of
4    the appraisal report.
5        (10) Require an appraiser to collect a fee from the
6    borrower or occupant of the property to be appraised.
7        (11) Knowingly withholding any end-user client
8    guidelines, policies, requirements, standards, assignment
9    conditions, and special instructions from an appraiser
10    prior to the acceptance of an appraisal assignment.
11    (b) A person or entity may not structure an appraisal
12assignment or a contract with an independent appraiser for the
13purpose of evading the provisions of this Act.
14    (c) No registrant or other person or entity may alter,
15modify, or otherwise change a completed appraisal report
16submitted by an independent appraiser, including without
17limitation, by doing either of the following:
18        (1) permanently or temporarily removing the
19    appraiser's signature or seal; or
20        (2) adding information to, or removing information
21    from, the appraisal report with an intent to change the
22    value conclusion or the condition of the property.
23    (d) No appraisal management company may require an
24appraiser to provide it with the appraiser's digital signature
25or seal. However, nothing in this Act shall be deemed to
26prohibit an appraiser from voluntarily providing his or her

 

 

09700SB1539ham003- 32 -LRB097 08574 CEL 55425 a

1digital signature or seal to another person on an
2assignment-by-assignment basis, in accordance with USPAP.
3    (e) Nothing in this Act shall prohibit an appraisal
4management company from requesting that an appraiser:
5        (1) consider additional appropriate property
6    information, including the consideration of additional
7    comparable properties to make or support an appraisal;
8        (2) provide further detail, substantiation, or
9    explanation for the appraiser's value conclusion; or
10        (3) correct factual errors in the appraisal report.
 
11    Section 170. Confidentiality. All information collected by
12the Department in the course of an examination or investigation
13of a licensee or applicant, including, but not limited to, any
14complaint against a licensee filed with the Department and
15information collected to investigate any such complaint, shall
16be maintained for the confidential use of the Department and
17shall not be disclosed. The Department may not disclose the
18information to anyone other than law enforcement officials,
19other regulatory agencies that have an appropriate regulatory
20interest as determined by the Secretary, or to a party
21presenting a lawful subpoena to the Department. Information and
22documents disclosed to a federal, State, county, or local law
23enforcement agency shall not be disclosed by the agency for any
24purpose to any other agency or person. A formal complaint filed
25against a licensee by the Department or any order issued by the

 

 

09700SB1539ham003- 33 -LRB097 08574 CEL 55425 a

1Department against a licensee or applicant shall be a public
2record, except as otherwise prohibited by law.
 
3    Section 175. Illinois Administrative Procedure Act;
4application. The Illinois Administrative Procedure Act is
5expressly adopted and incorporated in this Act as if all of the
6provisions of that Act were included in this Act, except that
7the provision of paragraph (d) of Section 10-65 of the Illinois
8Administrative Procedure Act, which provides that at hearings
9the registrant has the right to show compliance with all lawful
10requirements for retention or continuation or renewal of the
11registration, is specifically excluded. For the purpose of this
12Act, the notice required under Section 10-25 of the Illinois
13Administrative Procedure Act is considered sufficient when
14mailed to the last known address of a party.
 
15    Section 180. Home rule. The regulation and registration of
16practice as an appraisal management company are exclusive
17powers and functions of the State. A home rule unit may not
18regulate the practice or require the registration as an
19appraisal management company. This Section is a denial and
20limitation of home rule powers and functions under subsection
21(h) of Section 6 of Article VII of the Illinois Constitution.
 
22    Section 905. The Regulatory Sunset Act is amended by
23changing Section 4.22 and by adding Section 4.32 as follows:
 

 

 

09700SB1539ham003- 34 -LRB097 08574 CEL 55425 a

1    (5 ILCS 80/4.22)
2    Sec. 4.22. Acts repealed on January 1, 2012. The following
3Acts are repealed on January 1, 2012:
4    The Detection of Deception Examiners Act.
5    The Home Inspector License Act.
6    The Interior Design Title Act.
7    The Massage Licensing Act.
8    The Petroleum Equipment Contractors Licensing Act.
9    The Professional Boxing Act.
10    The Real Estate Appraiser Licensing Act of 2002.
11    The Water Well and Pump Installation Contractor's License
12Act.
13(Source: P.A. 95-331, eff. 8-21-07.)
 
14    (5 ILCS 80/4.32 new)
15    Sec. 4.32. Act repealed on January 1, 2022. The following
16Act is repealed on January 1, 2022:
17    The Real Estate Appraiser Licensing Act of 2002.
 
18    Section 910. The Real Estate Appraiser Licensing Act of
192002 is amended changing Sections 1-10, 5-5, 5-55, 10-5, 10-10,
2010-20, 15-10, 15-30, and 25-15 and by adding Sections 10-17 and
2115-65 as follows:
 
22    (225 ILCS 458/1-10)

 

 

09700SB1539ham003- 35 -LRB097 08574 CEL 55425 a

1    (Section scheduled to be repealed on January 1, 2012)
2    Sec. 1-10. Definitions. As used in this Act, unless the
3context otherwise requires:
4    "Accredited college or university, junior college, or
5community college" means a college or university, junior
6college, or community college that is approved or accredited by
7the Board of Higher Education, a regional or national
8accreditation association, or by an accrediting agency that is
9recognized by the U.S. Secretary of Education.
10    "Address of record" means the designated address recorded
11by the Department in the applicant's or licensee's application
12file or license file as maintained by the Department's
13licensure maintenance unit. It is the duty of the applicant or
14licensee to inform the Department of any change of address and
15those changes must be made either through the Department's
16website or by contacting the Department.
17    "Applicant" means person who applies to the Department for
18a license under this Act.
19    "Appraisal" means (noun) the act or process of developing
20an opinion of value; an opinion of value (adjective) of or
21pertaining to appraising and related functions, such as
22appraisal practice or appraisal services.
23    "Appraisal assignment" means a valuation service provided
24as a consequence of an agreement between an appraiser and a
25client.
26    "Appraisal consulting" means the act or process of

 

 

09700SB1539ham003- 36 -LRB097 08574 CEL 55425 a

1developing an analysis, recommendation, or opinion to solve a
2problem, where an opinion of value is a component of the
3analysis leading to the assignment results.
4    "Appraisal firm" means an appraisal entity that is 100%
5owned and controlled by a person or persons licensed in
6Illinois as a certified general real estate appraiser or a
7certified residential real estate appraiser. "Appraisal firm"
8does not include an appraisal management company.
9    "Appraisal management company" means any corporation,
10limited liability company, partnership, sole proprietorship,
11subsidiary, unit, or other business entity that directly or
12indirectly performs the following appraisal management
13services: (1) administers networks of independent contractors
14or employee appraisers to perform real estate appraisal
15assignments for clients; (2) receives requests for real estate
16appraisal services from clients and, for a fee paid by the
17client, enters into an agreement with one or more independent
18appraisers to perform the real estate appraisal services
19contained in the request; or (3) otherwise serves as a
20third-party broker of appraisal management services between
21clients and appraisers. "Appraisal management company" does
22not include an appraisal firm.
23    "Appraisal practice" means valuation services performed by
24an individual acting as an appraiser, including, but not
25limited to, appraisal, appraisal review, or appraisal
26consulting.

 

 

09700SB1539ham003- 37 -LRB097 08574 CEL 55425 a

1    "Appraisal report" means any communication, written or
2oral, of an appraisal, appraisal review, or appraisal
3consulting service that is transmitted to a client upon
4completion of an assignment.
5    "Appraisal review" means the act or process of developing
6and communicating an opinion about the quality of another
7appraiser's work that was performed as part of an appraisal,
8appraisal review, or appraisal assignment.
9    "Appraisal Subcommittee" means the Appraisal Subcommittee
10of the Federal Financial Institutions Examination Council as
11established by Title XI.
12    "Appraiser" means a person who performs real estate or real
13property appraisals.
14    "AQB" means the Appraisal Qualifications Board of the
15Appraisal Foundation.
16    "Associate real estate trainee appraiser" means an
17entry-level appraiser who holds a license of this
18classification under this Act with restrictions as to the scope
19of practice in accordance with this Act.
20    "Board" means the Real Estate Appraisal Administration and
21Disciplinary Board.
22    "Classroom hour" means 50 minutes of instruction out of
23each 60 minute segment of coursework.
24    "Client" means the party or parties who engage an appraiser
25by employment or contract in a specific appraisal assignment.
26    "Coordinator" means the Coordinator of Real Estate

 

 

09700SB1539ham003- 38 -LRB097 08574 CEL 55425 a

1Appraisal of the Division of Professional Regulation of the
2Department of Financial and Professional Regulation.
3    "Department" means the Department of Financial and
4Professional Regulation.
5    "Federal financial institutions regulatory agencies" means
6the Board of Governors of the Federal Reserve System, the
7Federal Deposit Insurance Corporation, the Office of the
8Comptroller of the Currency, the Office of Thrift Supervision,
9and the National Credit Union Administration.
10    "Federally related transaction" means any real
11estate-related financial transaction in which a federal
12financial institutions regulatory agency, the Department of
13Housing and Urban Development, Fannie Mae, Freddie Mae, or the
14National Credit Union Administration engages in, contracts
15for, or regulates and requires the services of an appraiser.
16    "Financial institution" means any bank, savings bank,
17savings and loan association, credit union, mortgage broker,
18mortgage banker, licensee under the Consumer Installment Loan
19Act or the Sales Finance Agency Act, or a corporate fiduciary,
20subsidiary, affiliate, parent company, or holding company of
21any such licensee, or any institution involved in real estate
22financing that is regulated by state or federal law.
23    "Modular Course" means the Appraisal Qualifying Course
24Design conforming to the Sub Topics Course Outline contained in
25the AQB Criteria 2008.
26    "Person" means an individual, entity, sole proprietorship,

 

 

09700SB1539ham003- 39 -LRB097 08574 CEL 55425 a

1corporation, limited liability company, partnership, and joint
2venture, foreign or domestic, except that when the context
3otherwise requires, the term may refer to more than one
4individual or other described entity.
5    "Real estate" means an identified parcel or tract of land,
6including any improvements.
7    "Real estate related financial transaction" means any
8transaction involving:
9        (1) the sale, lease, purchase, investment in, or
10    exchange of real property, including interests in property
11    or the financing thereof;
12        (2) the refinancing of real property or interests in
13    real property; and
14        (3) the use of real property or interest in property as
15    security for a loan or investment, including mortgage
16    backed securities.
17    "Real property" means the interests, benefits, and rights
18inherent in the ownership of real estate.
19    "Secretary" means the Secretary of Financial and
20Professional Regulation.
21    "State certified general real estate appraiser" means an
22appraiser who holds a license of this classification under this
23Act and such classification applies to the appraisal of all
24types of real property without restrictions as to the scope of
25practice.
26    "State certified residential real estate appraiser" means

 

 

09700SB1539ham003- 40 -LRB097 08574 CEL 55425 a

1an appraiser who holds a license of this classification under
2this Act and such classification applies to the appraisal of
3one to 4 units of residential real property without regard to
4transaction value or complexity, but with restrictions as to
5the scope of practice in a federally related transaction in
6accordance with Title XI, the provisions of USPAP, criteria
7established by the AQB, and further defined by rule.
8    "Supervising appraiser" means either (i) an appraiser who
9holds a valid license under this Act as either a State
10certified general real estate appraiser or a State certified
11residential real estate appraiser, who co-signs an appraisal
12report for an associate real estate trainee appraiser or (ii) a
13State certified general real estate appraiser who holds a valid
14license under this Act who co-signs an appraisal report for a
15State certified residential real estate appraiser on
16properties other than one to 4 units of residential real
17property without regard to transaction value or complexity.
18    "Title XI" means Title XI of the federal Financial
19Institutions Reform, Recovery and Enforcement Act of 1989.
20    "USPAP" means the Uniform Standards of Professional
21Appraisal Practice as promulgated by the Appraisal Standards
22Board pursuant to Title XI and by rule.
23    "Valuation services" means services pertaining to aspects
24of property value.
25(Source: P.A. 96-844, eff. 12-23-09.)
 

 

 

09700SB1539ham003- 41 -LRB097 08574 CEL 55425 a

1    (225 ILCS 458/5-5)
2    (Section scheduled to be repealed on January 1, 2012)
3    Sec. 5-5. Necessity of license; use of title; exemptions.
4    (a) It is unlawful for a person to (i) act, offer services,
5or advertise services as a State certified general real estate
6appraiser, State certified residential real estate appraiser,
7or associate real estate trainee appraiser, (ii) develop a real
8estate appraisal, (iii) practice as a real estate appraiser, or
9(iv) advertise or hold himself or herself out to be a real
10estate appraiser, or (v) solicit clients or enter into an
11appraisal engagement with clients without a license issued
12under this Act. A person who violates this subsection is guilty
13of a Class A misdemeanor for a first offense and a Class 4
14felony for any subsequent offense.
15    (a-5) It is unlawful for a person, unless registered as an
16appraisal management company, to solicit clients or enter into
17an appraisal engagement with clients without either a certified
18residential real estate appraiser license or a certified
19general real estate appraiser license issued under this Act. A
20person who violates this subsection is guilty of a Class A
21misdemeanor for a first offense and a Class 4 felony for any
22subsequent offense.
23    (b) It is unlawful for a person, other than a person who
24holds a valid license issued pursuant to this Act as a State
25certified general real estate appraiser, a State certified
26residential real estate appraiser, or an associate real estate

 

 

09700SB1539ham003- 42 -LRB097 08574 CEL 55425 a

1trainee appraiser to use these titles or any other title,
2designation, or abbreviation likely to create the impression
3that the person is licensed as a real estate appraiser pursuant
4to this Act. A person who violates this subsection is guilty of
5a Class A misdemeanor for a first offense and a Class 4 felony
6for any subsequent offense.
7    (c) The licensing requirements of this Act do not require a
8person who holds a valid license pursuant to the Real Estate
9License Act of 2000, to be licensed as a real estate appraiser
10under this Act, unless that person is providing or attempting
11to provide an appraisal report, as defined in Section 1-10 of
12this Act, in connection with a federally-related transaction.
13Nothing in this Act shall prohibit a person who holds a valid
14license under the Real Estate License Act of 2000 from
15performing a comparative market analysis or broker price
16opinion for compensation, provided that the person does not
17hold himself out as being a licensed real estate appraiser.
18    (d) Nothing in this Act shall preclude a State certified
19general real estate appraiser, a State certified residential
20real estate appraiser, or an associate real estate trainee
21appraiser from rendering appraisals for or on behalf of a
22partnership, association, corporation, firm, or group.
23However, no State appraisal license or certification shall be
24issued under this Act to a partnership, association,
25corporation, firm, or group.
26    (e) This Act does not apply to a county assessor, township

 

 

09700SB1539ham003- 43 -LRB097 08574 CEL 55425 a

1assessor, multi-township assessor, county supervisor of
2assessments, or any deputy or employee of any county assessor,
3township assessor, multi-township assessor, or county
4supervisor of assessments who is performing his or her
5respective duties in accordance with the provisions of the
6Property Tax Code.
7    (f) A State real estate appraisal certification or license
8is not required under this Act for any of the following:
9        (1) A person, partnership, association, or corporation
10    that performs appraisals of property owned by that person,
11    partnership, association, or corporation for the sole use
12    of that person, partnership, association, or corporation.
13        (2) A court-appointed commissioner who conducts an
14    appraisal pursuant to a judicially ordered evaluation of
15    property.
16However, any person who is certified or licensed under this Act
17and who performs any of the activities set forth in this
18subsection (f) must comply with the provisions of this Act. A
19person who violates this subsection (f) is guilty of a Class A
20misdemeanor for a first offense and a Class 4 felony for any
21subsequent offense.
22    (g) This Act does not apply to an employee, officer,
23director, or member of a credit or loan committee of a
24financial institution or any other person engaged by a
25financial institution when performing an evaluation of real
26property for the sole use of the financial institution in a

 

 

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1transaction for which the financial institution would not be
2required to use the services of a State licensed or State
3certified appraiser pursuant to federal regulations adopted
4under Title XI of the federal Financial Institutions Reform,
5Recovery, and Enforcement Act of 1989, nor does this Act apply
6to the procurement of an automated valuation model.
7    "Automated valuation model" means an automated system that
8is used to derive a property value through the use of publicly
9available property records and various analytic methodologies
10such as comparable sales prices, home characteristics, and
11historical home price appreciations.
12(Source: P.A. 96-844, eff. 12-23-09.)
 
13    (225 ILCS 458/5-55)
14    (Section scheduled to be repealed on January 1, 2012)
15    Sec. 5-55. Fees. The Department shall establish rules for
16fees to be paid by applicants and licensees to cover the
17reasonable costs of the Department in administering and
18enforcing the provisions of this Act. The Department, with the
19advice of the Board, may also establish rules for general fees
20to cover the reasonable expenses of carrying out other
21functions and responsibilities under this Act.
22(Source: P.A. 96-844, eff. 12-23-09.)
 
23    (225 ILCS 458/10-5)
24    (Section scheduled to be repealed on January 1, 2012)

 

 

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1    Sec. 10-5. Scope of practice.
2    (a) This Act does not limit a State certified general real
3estate appraiser in his or her scope of practice in a federally
4related transaction. A certified general real estate appraiser
5may independently provide appraisal services, review, or
6consulting relating to any type of property for which he or she
7has experience or is competent. All such appraisal practice
8must be made in accordance with the provisions of USPAP,
9criteria established by the AQB, and rules adopted pursuant to
10this Act.
11    (b) A State certified residential real estate appraiser is
12limited in his or her scope of practice to in a federally
13related transaction as provided by Title XI, the provisions of
14USPAP, criteria established by the AQB, and the rules adopted
15pursuant to this Act.
16    (c) A State certified residential real estate appraiser
17must have a State certified general real estate appraiser who
18holds a valid license under this Act co-sign all appraisal
19reports on properties other than one to 4 units of residential
20real property without regard to transaction value or
21complexity.
22    (d) An associate real estate trainee appraiser is limited
23in his or her scope of practice in all transactions in
24accordance with the provisions of USPAP, this Act, and the
25rules adopted pursuant to this Act. In addition, an associate
26real estate trainee appraiser shall be required to have a State

 

 

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1certified general real estate appraiser or State certified
2residential real estate appraiser who holds a valid license
3under this Act to co-sign all appraisal reports. The associate
4real estate trainee appraiser licensee may not have more than 3
5supervising appraisers, and a supervising appraiser may not
6supervise more than 3 associate real estate trainee appraisers
7at one time. A chronological appraisal log on an approved log
8form shall be maintained by the associate real estate trainee
9appraiser and shall be made available to the Department upon
10request.
11(Source: P.A. 96-844, eff. 12-23-09.)
 
12    (225 ILCS 458/10-10)
13    (Section scheduled to be repealed on January 1, 2012)
14    Sec. 10-10. Standards of practice. All persons licensed
15under this Act must comply with standards of professional
16appraisal practice adopted by the Department. The Department
17must adopt, as part of its rules, the Uniform Standards of
18Professional Appraisal Practice (USPAP) as published from time
19to time by the Appraisal Standards Board of the Appraisal
20Foundation. The Department shall consider federal laws and
21regulations regarding the licensure of real estate appraisers
22prior to adopting its rules for the administration of this Act.
23When an appraisal obtained through an appraisal management
24company is used for loan purposes, the borrower or loan
25applicant shall be provided with a written disclosure of the

 

 

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1total compensation to the appraiser or appraisal firm within
2the certification of the appraisal report and it shall not be
3redacted or otherwise obscured
4(Source: P.A. 96-844, eff. 12-23-09.)
 
5    (225 ILCS 458/10-17 new)
6    Sec. 10-17. Survey. Within 12 months after the effective
7date of this amendatory Act of the 97th General Assembly, the
8Department or its designee shall conduct a survey of fees for
9appraisal services for single-family residences, two-family
10residences, three-family residences, and four-family
11residences. The fee survey shall exclude assignments ordered by
12known appraisal management companies and complex assignments.
13The Department may conduct additional surveys as necessitated
14by rules adopted pursuant to the federal Dodd-Frank Wall Street
15Reform and Consumer Protection Act. The Department may assess
16an additional fee at the time of licensure or renewal to cover
17the expenses of carrying out this Section.
 
18    (225 ILCS 458/10-20)
19    (Section scheduled to be repealed on January 1, 2012)
20    Sec. 10-20. Retention of records. A person licensed under
21this Act shall retain records as required by the most recent
22version of the USPAP and as further defined by rule the
23original copy of all written contracts engaging his or her
24services as an appraiser and all appraisal reports, including

 

 

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1any supporting data used to develop the appraisal report, for a
2period of 5 years or 2 years after the final disposition of any
3judicial proceeding in which testimony was given, whichever is
4longer. In addition, a person licensed under this Act shall
5retain contracts, logs, and appraisal reports used in meeting
6pre-license experience requirements for a period of 5 years and
7shall be made available to the Department upon request.
8(Source: P.A. 96-844, eff. 12-23-09.)
 
9    (225 ILCS 458/15-10)
10    (Section scheduled to be repealed on January 1, 2012)
11    Sec. 15-10. Grounds for disciplinary action.
12    (a) The Department may suspend, revoke, refuse to issue,
13renew, or restore a license and may reprimand place on
14probation or administrative supervision, or take any
15disciplinary or non-disciplinary action, including imposing
16conditions limiting the scope, nature, or extent of the real
17estate appraisal practice of a licensee or reducing the
18appraisal rank of a licensee, and may impose an administrative
19fine not to exceed $25,000 for each violation upon a licensee
20for any one or combination of the following:
21        (1) Procuring or attempting to procure a license by
22    knowingly making a false statement, submitting false
23    information, engaging in any form of fraud or
24    misrepresentation, or refusing to provide complete
25    information in response to a question in an application for

 

 

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1    licensure.
2        (2) Failing to meet the minimum qualifications for
3    licensure as an appraiser established by this Act.
4        (3) Paying money, other than for the fees provided for
5    by this Act, or anything of value to a member or employee
6    of the Board or the Department to procure licensure under
7    this Act.
8        (4) Conviction by plea of guilty or nolo contendere,
9    finding of guilt, jury verdict, or entry of judgment or by
10    sentencing of any crime, including, but not limited to,
11    convictions, preceding sentences of supervision,
12    conditional discharge, or first offender probation, under
13    the laws of any jurisdiction of the United States: (i) that
14    is a felony; or (ii) that is a misdemeanor, an essential
15    element of which is dishonesty, or that is directly related
16    to the practice of the profession. Conviction of or entry
17    of a plea of guilty or nolo contendere to any crime that is
18    a felony under the laws of the United States or any state
19    or territory thereof or a misdemeanor of which an essential
20    element is dishonesty or that is directly related to the
21    practice of the profession.
22        (5) Committing an act or omission involving
23    dishonesty, fraud, or misrepresentation with the intent to
24    substantially benefit the licensee or another person or
25    with intent to substantially injure another person as
26    defined by rule.

 

 

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1        (6) Violating a provision or standard for the
2    development or communication of real estate appraisals as
3    provided in Section 10-10 of this Act or as defined by
4    rule.
5        (7) Failing or refusing without good cause to exercise
6    reasonable diligence in developing, reporting, or
7    communicating an appraisal, as defined by this Act or by
8    rule.
9        (8) Violating a provision of this Act or the rules
10    adopted pursuant to this Act.
11        (9) Having been disciplined by another state, the
12    District of Columbia, a territory, a foreign nation, a
13    governmental agency, or any other entity authorized to
14    impose discipline if at least one of the grounds for that
15    discipline is the same as or the equivalent of one of the
16    grounds for which a licensee may be disciplined under this
17    Act.
18        (10) Engaging in dishonorable, unethical, or
19    unprofessional conduct of a character likely to deceive,
20    defraud, or harm the public.
21        (11) Accepting an appraisal assignment when the
22    employment itself is contingent upon the appraiser
23    reporting a predetermined estimate, analysis, or opinion
24    or when the fee to be paid is contingent upon the opinion,
25    conclusion, or valuation reached or upon the consequences
26    resulting from the appraisal assignment.

 

 

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1        (12) Developing valuation conclusions based on the
2    race, color, religion, sex, national origin, ancestry,
3    age, marital status, family status, physical or mental
4    handicap, or unfavorable military discharge, as defined
5    under the Illinois Human Rights Act, of the prospective or
6    present owners or occupants of the area or property under
7    appraisal.
8        (13) Violating the confidential nature of government
9    records to which the licensee gained access through
10    employment or engagement as an appraiser by a government
11    agency.
12        (14) Being adjudicated liable in a civil proceeding on
13    grounds of fraud, misrepresentation, or deceit. In a
14    disciplinary proceeding based upon a finding of civil
15    liability, the appraiser shall be afforded an opportunity
16    to present mitigating and extenuating circumstances, but
17    may not collaterally attack the civil adjudication.
18        (15) Being adjudicated liable in a civil proceeding for
19    violation of a state or federal fair housing law.
20        (16) Engaging in misleading or untruthful advertising
21    or using a trade name or insignia of membership in a real
22    estate appraisal or real estate organization of which the
23    licensee is not a member.
24        (17) Failing to fully cooperate with a Department
25    investigation by knowingly making a false statement,
26    submitting false or misleading information, or refusing to

 

 

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1    provide complete information in response to written
2    interrogatories or a written request for documentation
3    within 30 days of the request.
4        (18) Failing to include within the certificate of
5    appraisal for all written appraisal reports the
6    appraiser's license number and licensure title. All
7    appraisers providing significant contribution to the
8    development and reporting of an appraisal must be disclosed
9    in the appraisal report. It is a violation of this Act for
10    an appraiser to sign a report, transmittal letter, or
11    appraisal certification knowing that a person providing a
12    significant contribution to the report has not been
13    disclosed in the appraisal report.
14        (19) Violating the terms of a disciplinary order or
15    consent to administrative supervision order.
16        (20) Habitual or excessive use or addiction to alcohol,
17    narcotics, stimulants, or any other chemical agent or drug
18    that results in a licensee's inability to practice with
19    reasonable judgment, skill, or safety.
20        (21) A physical or mental illness or disability which
21    results in the inability to practice under this Act with
22    reasonable judgment, skill, or safety.
23        (22) Gross negligence in developing an appraisal or in
24    communicating an appraisal or failing to observe one or
25    more of the Uniform Standards of Professional Appraisal
26    Practice.

 

 

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1        (23) A pattern of practice or other behavior that
2    demonstrates incapacity or incompetence to practice under
3    this Act.
4        (24) Using or attempting to use the seal, certificate,
5    or license of another as his or her own; falsely
6    impersonating any duly licensed appraiser; using or
7    attempting to use an inactive, expired, suspended, or
8    revoked license; or aiding or abetting any of the
9    foregoing.
10        (25) Solicitation of professional services by using
11    false, misleading, or deceptive advertising.
12        (26) Making a material misstatement in furnishing
13    information to the Department.
14        (27) Failure to furnish information to the Department
15    upon written request.
16    (b) The Department may reprimand suspend, revoke, or refuse
17to issue or renew an education provider's license, may
18reprimand, place on probation, or otherwise discipline an
19education provider and may suspend or revoke the course
20approval of any course offered by an education provider and may
21impose an administrative fine not to exceed $25,000 upon an
22education provider, for any of the following:
23        (1) Procuring or attempting to procure licensure by
24    knowingly making a false statement, submitting false
25    information, engaging in any form of fraud or
26    misrepresentation, or refusing to provide complete

 

 

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1    information in response to a question in an application for
2    licensure.
3        (2) Failing to comply with the covenants certified to
4    on the application for licensure as an education provider.
5        (3) Committing an act or omission involving
6    dishonesty, fraud, or misrepresentation or allowing any
7    such act or omission by any employee or contractor under
8    the control of the provider.
9        (4) Engaging in misleading or untruthful advertising.
10        (5) Failing to retain competent instructors in
11    accordance with rules adopted under this Act.
12        (6) Failing to meet the topic or time requirements for
13    course approval as the provider of a pre-license curriculum
14    course or a continuing education course.
15        (7) Failing to administer an approved course using the
16    course materials, syllabus, and examinations submitted as
17    the basis of the course approval.
18        (8) Failing to provide an appropriate classroom
19    environment for presentation of courses, with
20    consideration for student comfort, acoustics, lighting,
21    seating, workspace, and visual aid material.
22        (9) Failing to maintain student records in compliance
23    with the rules adopted under this Act.
24        (10) Failing to provide a certificate, transcript, or
25    other student record to the Department or to a student as
26    may be required by rule.

 

 

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1        (11) Failing to fully cooperate with an investigation
2    by the Department by knowingly making a false statement,
3    submitting false or misleading information, or refusing to
4    provide complete information in response to written
5    interrogatories or a written request for documentation
6    within 30 days of the request.
7    (c) In appropriate cases, the Department may resolve a
8complaint against a licensee through the issuance of a Consent
9to Administrative Supervision order. A licensee subject to a
10Consent to Administrative Supervision order shall be
11considered by the Department as an active licensee in good
12standing. This order shall not be reported or considered by the
13Department to be a discipline of the licensee. The records
14regarding an investigation and a Consent to Administrative
15Supervision order shall be considered confidential and shall
16not be released by the Department except as mandated by law. A
17complainant shall be notified if his or her complaint has been
18resolved by a Consent to Administrative Supervision order.
19(Source: P.A. 96-844, eff. 12-23-09.)
 
20    (225 ILCS 458/15-30)
21    (Section scheduled to be repealed on January 1, 2012)
22    Sec. 15-30. Statute of limitations. No action may be taken
23under this Act against a person licensed under this Act unless
24the action is commenced within 5 years after the occurrence of
25the alleged violation or within at least 2 years after final

 

 

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1disposition of any judicial proceeding, including any appeals,
2in which the appraiser provided testimony related to the
3assignment, whichever period expires last. A continuing
4violation is deemed to have occurred on the date when the
5circumstances last existed that gave rise to the alleged
6continuing violation.
7(Source: P.A. 96-844, eff. 12-23-09.)
 
8    (225 ILCS 458/15-65 new)
9    Sec. 15-65. Confidentiality. All information collected by
10the Department in the course of an examination or investigation
11of a licensee or applicant, including, but not limited to, any
12complaint against a licensee filed with the Department and
13information collected to investigate any such complaint, shall
14be maintained for the confidential use of the Department and
15shall not be disclosed. The Department may not disclose the
16information to anyone other than law enforcement officials,
17other regulatory agencies that have an appropriate regulatory
18interest as determined by the Secretary, or to a party
19presenting a lawful subpoena to the Department. Information and
20documents disclosed to a federal, State, county, or local law
21enforcement agency shall not be disclosed by the agency for any
22purpose to any other agency or person. A formal complaint filed
23against a licensee by the Department or any order issued by the
24Department against a licensee or applicant shall be a public
25record, except as otherwise prohibited by law.
 

 

 

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1    (225 ILCS 458/25-15)
2    (Section scheduled to be repealed on January 1, 2012)
3    Sec. 25-15. Coordinator of Real Estate Appraisal;
4appointment; duties. The Secretary shall appoint, subject to
5the Personnel Code, a Coordinator of Real Estate Appraisal. In
6appointing the Coordinator, the Secretary shall give due
7consideration to recommendations made by members,
8organizations, and associations of the real estate appraisal
9industry. On or after January 1, 2010, the Coordinator must
10hold a current, valid State certified general real estate
11appraiser license or a State certified residential real estate
12appraiser license, which shall be surrendered to the Department
13during the term of his or her appointment. The Coordinator must
14take the 30-hour National Instructors Course on Uniform
15Standards of Professional Appraisal Practice. The
16Coordinator's license shall be returned in the same status as
17it was on the date of surrender, credited with all fees that
18came due during his or her employment. The Coordinator shall:
19        (1) serve as a member of the Real Estate Appraisal
20    Administration and Disciplinary Board without vote;
21        (2) be the direct liaison between the Department, the
22    profession, and the real estate appraisal industry
23    organizations and associations;
24        (3) prepare and circulate to licensees such
25    educational and informational material as the Department

 

 

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1    deems necessary for providing guidance or assistance to
2    licensees;
3        (4) appoint necessary committees to assist in the
4    performance of the functions and duties of the Department
5    under this Act; and
6        (5) (blank); and .
7        (6) be authorized to investigate and determine the
8    facts of a complaint; the coordinator may interview
9    witnesses, the complainant, and any licensees involved in
10    the alleged matter and make a recommendation as to the
11    findings of fact.
12(Source: P.A. 96-844, eff. 12-23-09.)
 
13    (225 ILCS 458/5-21 rep.)
14    Section 915. The Real Estate Appraiser Licensing Act of
152002 is amended by repealing Section 5-21.
 
16    Section 999. Effective date. This Act takes effect upon
17becoming law.".