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91_HB4284ham001 LRB9109754ACmgam 1 AMENDMENT TO HOUSE BILL 4284 2 AMENDMENT NO. . Amend House Bill 4284 by replacing 3 the title with the following: 4 "AN ACT to amend the Real Estate Appraiser Licensing 5 Act."; and 6 by replacing everything after the enacting clause with the 7 following: 8 "Section 5. The Real Estate Appraiser Licensing Act is 9 amended by changing Sections 15, 55, 60, 85, 90, and 95 as 10 follows: 11 (225 ILCS 457/15) 12 Sec. 15. License requirement; title; exemptions. 13 (a) No person shall engage in the business of, act in 14 the capacity of, advertise, or assume to act as a real estate 15 appraiser, develop or report real estate appraisals, or 16 appraise real estate, in a federally related transaction, 17 without a license to practice as a real estate appraiser 18 issued by the Office under this Act. A person who violates 19 this subsection is guilty of a Class A misdemeanor. 20 (b) No person, other than a State Certified General Real 21 Estate Appraiser, State Certified Residential Real Estate -2- LRB9109754ACmgam 1 Appraiser, or State Licensed Real Estate Appraiser licensed 2 under this Act whose license is in good standing, shall 3 assume or use these titles or any other title, designation, 4 or abbreviation likely to create the impression that the 5 person is licensed by the State of Illinois as a real estate 6 appraiser. A person who violates this subsection is guilty of 7 a Class A misdemeanor. 8 (Source: P.A. 90-571, eff. 7-1-98.) 9 (225 ILCS 457/55) 10 Sec. 55. Examination prerequisites. As a prerequisite to 11 taking the examination for a rank of appraiser licensure, an 12 applicant shall (i) present evidence of successful completion 13 of a 4-year course of study in a high school or secondary 14 school approved by the Illinois State Board of Education or 15 an equivalent course of study as determined by an examination 16 conducted by the Illinois State Board of Education which 17 shall be verified under oath by the applicant and (ii) 18 present evidence, satisfactory to the Office of Banks and 19 Real Estate, that the applicant has successfully completed 20 not less than 165
150classroom hours in the case of an 21 applicant for a State Certified General Real Estate Appraiser 22 license, 105 90classroom hours in the case of an applicant 23 for a State Certified Residential Real Estate Appraiser 24 license, or 75 60classroom hours in the case of an applicant 25 for a State Licensed Real Estate Appraiser license, or that 26 amount mandated or recommended by the Appraisal 27 Qualifications Board in accordance with underTitle XI of the 28 federal Financial Institutions Reform, Recovery and 29 Enforcement Act of 1989, whichever is greater, or their 30 equivalent as provided by rule, of courses in subjects 31 relating to real estate appraisal. In addition, the applicant 32 shall present evidence of successful completion of 15 33 classroom hours relating to standards of professional -3- LRB9109754ACmgam 1 practice. The classroom hours required by this Section shall 2 be obtained from one or more of the following entities 3 approved by the Office of Banks and Real Estate: 4 (1) a college or university; 5 (2) a community college or junior college; 6 (3) a real estate appraisal or real estate related 7 organization; 8 (4) a trade association or organization that 9 consists in whole or in part of members engaged in real 10 estate appraising; or 11 (5) any other provider approved by the Office of 12 Banks and Real Estate. 13 The Office of Banks and Real Estate shall require by rule 14 completion of course work in fair housing and fair lending, 15 which shall be included within the requirements of this 16 Section. 17 (Source: P.A. 90-571, eff. 7-1-98.) 18 (225 ILCS 457/60) 19 Sec. 60. Experience requirement. 20 (a) A license as a State Certified General Real Estate 21 Appraiser or State Certified Residential Real Estate 22 Appraiser shall not be issued to a person who does not 23 possess 2 years of experience, or that amount mandated under 24 Title XI of the federal Financial Institutions Reform, 25 Recovery and Enforcement Act of 1989, whichever is greater, 26 or their equivalent as provided by rule of the Office of 27 Banks and Real Estate. For the purposes of this Section, one 28 year of experience means 1,000 hours of experience. 29 Approved experience shall include fee appraisal, staff 30 appraisal, mass appraisal in accordance with the USPAP, ad 31 valorem tax appraisal, mass ad valorem tax appraisal in 32 accordance with the USPAP, review appraisal in accordance 33 with the USPAP, highest and best use analysis, feasibility -4- LRB9109754ACmgam 1 analysis or study in accordance with the USPAP, real estate 2 sales and brokerage, real estate consulting in accordance 3 with the USPAP, real property management, and other related 4 experience approved by the Office of Banks and Real Estate 5 and in accordance with the USPAP. Nevertheless, the amount of 6 credit granted for this experience shall be equivalent to the 7 amount of credit that may be granted for the experience under 8 Title XI of the federal Financial Institutions Reform, 9 Recovery and Enforcement Act of 1989. 10 An applicant for a license shall provide to the Office of 11 Banks and Real Estate on forms prescribed by rule of the 12 Office a summary of the level and type of experience for 13 which the applicant is claiming credit. To obtain experience 14 credit for the preparation of a written appraisal report, the 15 applicant shall provide in the experience summary the date of 16 appraisal, the type of property, the approximate size of the 17 property (including land and improvements), and the general 18 location of the property. Nothing in this Section shall 19 require, as a condition of obtaining experience credit, that 20 a real estate appraiser disclose the identity of the client 21 for whom the appraisal was performed. The Office of Banks and 22 Real Estate may require that an applicant provide samples of 23 the applicant's work for which experience is claimed. 24 Of the total experience requirement, at least 50% must be 25 earned in one or more of the following areas: fee appraisal, 26 staff appraisal, ad valorem tax appraisal, review appraisal, 27 or real estate consulting. 28 (b) An applicant who has been engaged in appraising 29 real property for ad valorem purposes as a local assessment 30 officer, as defined in Section 1-85 of the Property Tax Code 31 or as a deputy or employee of a local assessment officer, 32 shall receive experience credit for the number of hours the 33 applicant was engaged in one or more of the following duties: 34 (1) the analysis and establishment of the value of -5- LRB9109754ACmgam 1 properties through the cost, income, and market sale 2 appraisal techniques; 3 (2) model development and calibration in relation 4 to mass ad valorem tax assessments; and 5 (3) the review and analysis of appraisals employing 6 cost, income, and market sale appraisal techniques. 7 The experience under this subsection (b) shall not be 8 required to be set forth in the form of the experience 9 summary as provided in subsection (a) of Section 60. All 10 persons who seek experience credit under this subsection (b) 11 shall attach his or her own affidavit as a supporting 12 document to the application form of the Office of Banks and 13 Real Estate. The applicant's affidavit shall detail the 14 experience for which credit is being claimed and the length 15 of time the applicant was engaged in these duties as a local 16 assessment officer, or deputy or employee of a local 17 assessment officer. The applicant shall attach to this 18 affidavit an Assessment Experience Certification form 19 executed by the local assessment officer or his or her 20 designee in the following form: 21 "Assessment Experience Certification. 22 Pursuant to the provisions of subsection (b) of 23 Section 60 of the Real Estate Appraiser Licensing Act, it 24 is hereby certified that (Applicant's Name) was engaged 25 in appraising (residential .....%) (nonresidential....%) 26 real estate for ad valorem tax purposes as a local 27 assessment officer, or as a deputy or employee of a local 28 assessment officer, from (date) through (date) and 29 during this time period was engaged in one or more of the 30 following duties: (1) the analysis and establishment of 31 the value of properties through the cost, income, and 32 market sale appraisal techniques; (2) model development 33 and calibration in relation to mass ad valorem tax 34 assessments; (3) the review and analysis of appraisals -6- LRB9109754ACmgam 1 employing cost, income, and market sale appraisal 2 techniques, and that the experience is accurately 3 described in the affidavit to which this Certificate is 4 attached and supported by assessment records available 5 under Section 14-30 of the Property Tax Code or the 6 Freedom of Information Act. 7 By: 8 _________________________ 9 Local Assessment Officer" 10 Upon submission of the application, affidavit, and the 11 Assessment Experience Certification form, the Commissioner 12 shall grant the experience credit set forth in this 13 subsection. Notwithstanding other provisions of this Act, the 14 amount of experience credit granted for appraising real 15 property for ad valorem tax purposes as a local assessment 16 officer, or deputy or employee of a local assessment officer, 17 shall be equivalent to the amount of credit that may be 18 granted for that experience under the provisions of Title XI 19 of the federal Financial Institutions Reform, Recovery and 20 Enforcement Act of 1989. 21 (c) An applicant who has been licensed for 5 of the 22 previous 7 years with the Office of Banks and Real Estate as 23 a real estate broker or real estate salesperson shall receive 24 credit for appraisal experience equal to 40% of the total 25 experience requirement. This experience as a real estate 26 broker or real estate salesperson shall not be required to be 27 set forth in the form required in subsection (a). The balance 28 of the experience requirement shall be set forth in the form 29 of the experience summary as provided in subsection (a). 30 (d) Of the total experience requirement for State 31 Certified General Real Estate Appraisers, at least 50% must 32 be approved experience relating to nonresidential real 33 estate. 34 (e) Of the total experience required for State Certified -7- LRB9109754ACmgam 1 Residential Real Estate Appraisers, at least 50% must be 2 approved experience relating to residential real estate. 3 (f) Proof of experience shall not be required for 4 licensure as a State Licensed Real Estate Appraiser. The5 license of aState Licensed Real Estate Appraiser shall be an 6 entry level licensing rank, and the license may be held from 7 the date of issuance for the balance of the initial license 8 and through 2 renewals and then shall not be renewed; except 9 that a licensee in this rank on the effective date of this 10 amendatory Act of the 91st General Assembly may renew the 11 license so that it is valid until September 30, 2003, but 12 shall not be allowed to renew the license after that date. 13 who has been licensed for a period of 2 years shall be14 renewed only if the licensee meets the following experience15 requirements:16 (1) Prior to the first renewal after the licensee17 has been licensed for 2 years, the licensee possesses at18 least 500 hours of experience. A licensee may, at the19 time of applying for the first renewal, submit 1,00020 hours of experience.21 (2) Unless the licensee submitted 1,000 hours of22 experience under the provisions of subdivision (1), prior23 to the second renewal after the licensee has been24 licensed for a period of 2 years, the licensee possesses25 500 hours experience. The experience required under this26 subdivision must be earned after the first renewal after27 the licensee has been licensed for a period of 2 years.28 All real estate appraisal experience granted shall be in29 accordance with this Section.30 (g) The Office of Banks and Real Estate may waive the31 experience requirement of this Section for good cause. A32 renewal applicant seeking renewal of a license without having33 fully complied with the experience requirement of subsection34 (a) shall file with the Office of Banks and Real Estate a-8- LRB9109754ACmgam 1 renewal application, the required renewal fee, an affidavit2 setting forth the facts concerning the noncompliance, a3 request for waiver of the experience requirement on the basis4 of those facts, and a waiver processing fee of $25. If the5 Office of Banks and Real Estate finds from the affidavit or6 any other evidence submitted that good cause has been shown7 for granting a waiver, the Office of Banks and Real Estate8 shall waive enforcement of the experience requirement for the9 renewal period for which the applicant has applied. For10 purposes of this subsection, "good cause" means an inability11 of the applicant to reasonably complete the requisite12 appraisal experience because there has been an insufficient13 amount of appraisal activity in the geographic area where the14 applicant practices real estate appraising. In determining15 whether good cause exists, the Office of Banks and Real16 Estate may consider (i) the amount of appraisal experience17 earned by the applicant in proportion to the total appraisal18 activity within the geographic area where the applicant19 practices real estate appraising and (ii) the reasonableness20 of the geographic area the applicant defines as the area21 where the applicant practices real estate appraising. "Good22 cause" shall also include an inability of the applicant to23 complete the experience requirement because of extreme24 hardship, which includes but is not limited to an25 incapacitating illness or full-time service in the armed26 services in the United States of America, during a27 substantial part of the prerenewal period.28 (Source: P.A. 90-571, eff. 7-1-98.) 29 (225 ILCS 457/85) 30 Sec. 85. Continuing education requirements. 31 (a) An appraiser licensed as a State Certified General 32 Real Estate Appraiser or a State Certified Residential Real 33 Estate Appraiser under this Act As a prerequisite to renewal-9- LRB9109754ACmgam 1 of an appraiser license, a renewal applicantshall present 2 evidence satisfactory to the Office of Banks and Real Estate 3 of having completed not less than 28 20hours of continuing 4 education per renewal period or that amount mandated under 5 Title XI of the Federal Financial Institutions Reform, 6 Recovery and Enforcement Act of 1989, whichever is greater, 7 or their equivalent as provided by rule, from courses 8 approved by the Office and presented by real estate appraisal 9 education providers licensed by the Office. 10 The Office of Banks and Real Estate may provide by rule 11 for the temporary waiver of continuing education requirements 12 for good cause. 13 (b) In lieu of meeting the requirements of subsection 14 (a) of this Section, an applicant for renewal of a license 15 may satisfy all or part of the requirements by presenting 16 evidence of participation as an instructor of pre-licensure 17 or continuing education courses licensed by the Office and 18 presented by providers licensed by the Office as real estate 19 appraisal education providers other than as a student, in20 educational processes and programs approved pursuant to21 subsection (a) that relate to real property appraisal theory,22 practices, or techniques, including but not limited to23 teaching, program development, and preparation of textbooks,24 monographs, articles, and other instructional materials. 25 (c) The Office of Banks and Real Estate may by rule 26 require periodic testing of a licensee's understanding of 27 this Act. Continuing education credit hours may be awarded 28 for successful completion of the periodic examination. 29 (d) The Office of Banks and Real Estate shall require by 30 rule the completion of course work in fair housing and fair 31 lending, which shall be included within the requirements of 32 this Section. 33 (Source: P.A. 90-571, eff. 7-1-98.) -10- LRB9109754ACmgam 1 (225 ILCS 457/90) 2 Sec. 90. Grounds for disciplinary action. 3 (a) Pursuant to the action and report in writing of the 4 Board, the Office of Banks and Real Estate may suspend, 5 revoke, or refuse to issue or renew the license of an 6 appraiser or place on probation or reprimand a licensee, may 7 impose a civil penalty not to exceed $10,000 upon a licensee, 8 or the holder of a license may be placed on administrative 9 supervision or otherwise disciplined for any one or 10 combination of the following reasons: 11 (1) Procuring or attempting to procure a license by 12 knowingly making a false statement, submitting false 13 information, refusing to provide complete information in 14 response to a question in an application for licensure or 15 through any form of fraud or misrepresentation. 16 (2) Failing to meet the minimum qualifications for 17 licensure as an appraiser established by this Act. 18 (3) Paying money, other than for the fees provided 19 for by this Act, or anything of value to a member or 20 employee of the Board or Office of Banks and Real Estate 21 to procure licensure under this Act. 22 (4) A conviction of a crime, including conviction 23 based upon a plea of guilty or nolo contendere. 24 (5) An act or omission involving dishonesty, fraud, 25 or misrepresentation with the intent to substantially 26 benefit the licensee or another person or with intent to 27 substantially injure another person. 28 (6) Violation of a provision or standard for the 29 development or communication of real estate appraisals as 30 provided in Section 110 of this Act or by rule. 31 (7) Failure or refusal without good cause to 32 exercise reasonable diligence in developing and reporting 33 or communicating an appraisal. 34 (8) Negligence or incompetence in developing and -11- LRB9109754ACmgam 1 reporting or communicating an appraisal. 2 (9) Willfully disregarding or violating a provision 3 of this Act or its rules. 4 (10) Accepting an appraisal assignment for 5 valuation when the employment itself is contingent upon 6 the appraiser reporting a predetermined estimate, 7 analysis, or opinion or when the fee to be paid is 8 contingent upon the opinion, conclusion, or valuation 9 reached or upon the consequences resulting from the 10 appraisal assignment. 11 (11) Developing valuation conclusions based on the 12 race, color, religion, sex, national origin, ancestry, 13 age, marital status, familiar status, physical or mental 14 handicap, or unfavorable military discharge, as defined 15 under the Illinois Human Rights Act, of the prospective 16 or present owners or occupants of the area or property 17 under appraisal. 18 (12) Violation of the confidential nature of 19 government records to which the licensee gained access 20 through employment or engagement as an appraiser by a 21 government agency. 22 (13) Adjudication of liability in a civil 23 proceeding on grounds of fraud, misrepresentation, or 24 deceit. In a disciplinary proceeding based upon a finding 25 of civil liability, the appraiser shall be afforded an 26 opportunity to present mitigating and extenuating 27 circumstances, but may not collaterally attack the civil 28 adjudication. 29 (14) Adjudication of liability in a civil 30 proceeding for violation of a State or federal fair 31 housing law. 32 (15) Engaging in misleading or untruthful 33 advertising or using a trade name or insignia of 34 membership in a real estate appraisal or real estate -12- LRB9109754ACmgam 1 related organization of which the licensee is not a 2 member. 3 (16) Failure to fully cooperate with an Office 4 investigation by knowingly making a false statement, 5 submitting false information, or refusing to provide 6 complete information in response to a question or other 7 requests by the Office. 8 (17) Failing to include within the certificate of 9 appraisal for all written appraisal reports the 10 appraiser's license number, licensure title (State 11 Licensed Real Estate Appraiser, State Certified 12 Residential Real Estate Appraiser, or State Certified 13 General Real Estate Appraiser), and the date of 14 expiration of the license. All appraisers providing 15 significant contribution to the development and reporting 16 of an appraisal must be disclosed in the appraisal 17 report. It is a violation of this Act for an appraiser 18 to sign a report, transmittal letter, or appraisal 19 certification knowing that a person providing significant 20 contribution to the report has not been disclosed in the 21 appraisal report. 22 (b) Pursuant to the action and report in writing of the 23 Board, the Office of Banks and Real Estate may suspend, 24 revoke, place on probation, reprimand, or otherwise 25 discipline the license of an appraisal education course 26 provider or course license subordinate to the providership, 27 or may refuse to issue or renew a course license or 28 provider's license and may also impose a civil penalty not to 29 exceed $10,000 upon the holder of the course or provider's 30 license for any of the following acts or omissions: 31 (1) Procuring or attempting to procure licensure by 32 knowingly making a false statement, submitting false 33 information, refusing to provide complete information in 34 response to a question in an application for licensure or -13- LRB9109754ACmgam 1 through any form of fraud or misrepresentation. 2 (2) Failing to comply with covenants certified to 3 on the application for licensure as an appraisal 4 education provider, appraisal education subprovider, 5 prelicensure course, or continuing education course. 6 (3) An act or omission involving dishonesty, fraud, 7 or misrepresentation by the course provider or any 8 employees or independent contractors of the provider. 9 (4) Engaging in misleading or untruthful 10 advertising. 11 (5) Failing to retain competent instructors in 12 accordance with rules adopted under this Act. 13 (6) Failing to meet the topic or time requirements 14 for course approval as a prelicensure curriculum course 15 or a continuing education course. 16 (7) Failing to administer a licensed course using 17 the course materials, syllabus, and examinations 18 submitted as the basis of licensure. 19 (8) Failing to provide an appropriate classroom 20 environment for presentation of courses with 21 consideration for student comfort, acoustics, lighting, 22 seating, work space, and visual aid material. 23 (9) Failing to maintain student records in 24 compliance with rules adopted under this Act. 25 (10) Failing to provide certificates, transcripts, 26 or other student records to the Office or student as may 27 be required by rule. 28 (11) Failure to fully cooperate with an Office 29 investigation by knowingly making a false statement, 30 submitting false information, or refusing to provide 31 complete information in response to a question or other 32 requests by the Office. 33 (c) Notwithstanding the provisions of this Act 34 concerning the conduct of hearings and recommendations for -14- LRB9109754ACmgam 1 disciplinary actions, a conference panel of the Board may 2 recommend to the Office of Banks and Real Estate who shall 3 have the authority to negotiate settlement agreements with 4 State Licensed Real Estate Appraisers, State Certified 5 General Real Estate Appraisers, State Certified Residential 6 Real Estate Appraisers, and appraiser education licensees or 7 applicants, resulting in disciplinary Consent Orders. Consent 8 Orders may provide for any of the forms of discipline 9 provided in this Act. Consent Orders shall provide that they 10 were not entered into as a result of any coercion by the 11 Office of Banks and Real Estate, the Director of Real Estate 12 Appraisal Administration, or the Board. A Consent Order shall 13 be filed with the Commissioner along with the Board's 14 recommendation and accepted or rejected by the Commissioner 15 in a timely manner. 16 (d) Notwithstanding the provisions of this Act 17 concerning the conduct of hearings and recommendations for 18 disciplinary actions, a conference panel of the Board may 19 recommend to the Office of Banks and Real Estate who on the 20 Board shall have the authority to negotiate settlement 21 agreements with State Licensed Real Estate Appraisers, State 22 Certified General Real Estate Appraisers, State Certified 23 Residential Real Estate Appraisers, appraiser education 24 licensees or applicants, resulting in disciplinary Consent to 25 Administrative Supervision Orders. Consent to Administrative 26 Supervision Orders may be offered with conditions that may 27 include but shall not be limited to the respondent's 28 attendance and successful completion of appraisal courses, 29 payment of part or all of the investigation and prosecution 30 costs associated with the complaint and replacement of 31 appraiser rank with a lower rank. Consent to Administrative 32 Supervision Orders shall provide that they were not entered 33 into as a result of coercion by the Office of Banks and Real 34 Estate, the Director of Real Estate Appraisal Administration, -15- LRB9109754ACmgam 1 or the Board. Consent to Administrative Supervision Order 2 shall be filed with the Commissioner along with the Board's 3 recommendation and accepted or rejected by the Commissioner 4 in a timely manner. A licensee subject to a Consent to 5 Administrative Supervision Order shall be considered by the 6 Office as an active appraiser in good standing and the 7 records regarding an investigation and a Consent to 8 Administrative Supervision Order are confidential and shall 9 not be released by the Office except as mandated by law. 10 However, the complainant shall be notified that his or her 11 complaint has been resolved by administrative supervision of 12 the respondent. 13 (e) Civil penalties and costs collected under this 14 Section are to be deposited into the Appraisal Administration 15 Fund. 16 (f) Civil penalties imposed by the Office of Banks and 17 Real Estate shall be enforceable in the Circuit Court. The 18 Office may petition the Court for a judgment to enforce 19 collection of the penalty. Any civil penalties collected by 20 the Court shall be made payable to the Office of Banks and 21 Real Estate for deposit into the Appraisal Administration 22 Fund. In addition to or in lieu of the imposition of a civil 23 penalty, the Office may report a violation of this Act or the 24 failure or refusal to comply with an order of the Office to 25 the Attorney General and the appropriate State's Attorney. 26 (Source: P.A. 90-571, eff. 7-1-98.) 27 (225 ILCS 457/95) 28 Sec. 95. Unlicensed practice; civil penalty. 29 (a) A person who practices, offers to practice, attempts 30 to practice, or holds himself or herself out to practice as a 31 State Licensed Real Estate Appraiser, State Certified 32 Residential Real Estate Appraiser, or State Certified General 33 Real Estate Appraiser without being licensed under this Act -16- LRB9109754ACmgam 1 shall, in addition to any other penalty provided by law, pay 2 a civil penalty to the Office of Banks and Real Estate in an 3 amount not to exceed $5,000 for each offense as determined by 4 the Office of Banks and Real Estate. The civil penalty shall 5 be assessed by the Office of Banks and Real Estate after a 6 hearing is held in accordance with the provisions set forth 7 in this Act regarding the provision of a hearing for the 8 discipline of a licensee. 9 (b) The Office of Banks and Real Estate has the 10 authority and power to investigate any and all unlicensed 11 appraiser activity concerning federally related transactions. 12 (c) Civil penalties imposed by the Office of Banks and 13 Real Estate shall be enforceable in the Circuit Court. The 14 Office may shallpetition the Court for a judgment an order15 to enforce collection of the penalty and, if the Court finds16 it has jurisdiction over the person against whom the penalty17 was imposed, the Court shall issue the appropriate order. 18 Any civil penalties collected by the Court shall be made 19 payable to the Office of Banks and Real Estate for deposit 20 into the Appraisal Administration Fund forwarded to the State21 Treasurer. In addition to or in lieu of the imposition of a 22 civil penalty, the Office may report a violation of this Act 23 or andthe failure or refusal to comply with an theorder of 24 the Office to the Attorney General and the appropriate 25 State's Attorney. 26 (Source: P.A. 90-571, eff. 7-1-98.)".
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