Rep. Robert Rita

Filed: 4/21/2017

 

 


 

 


 
10000HB3528ham001LRB100 11358 SMS 24898 a

1
AMENDMENT TO HOUSE BILL 3528

2    AMENDMENT NO. ______. Amend House Bill 3528 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Real Estate License Act of 2000 is amended
5by changing Sections 1-10, 5-5, 5-10, 5-27, 5-28, 5-50, 5-70,
65-75, 5-80, 20-20, 20-60, 25-10, 30-5, 30-15, 30-20, and 30-25
7and the heading of Article 30 as follows:
 
8    (225 ILCS 454/1-10)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 1-10. Definitions. In this Act, unless the context
11otherwise requires:
12    "Act" means the Real Estate License Act of 2000.
13    "Address of record" means the designated address recorded
14by the Department in the applicant's or licensee's application
15file or license file as maintained by the Department's
16licensure maintenance unit. It is the duty of the applicant or

 

 

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1licensee to inform the Department of any change of address, and
2those changes must be made either through the Department's
3website or by contacting the Department.
4    "Advisory Council" means the Real Estate Education
5Advisory Council created under Section 30-10 of this Act.
6    "Agency" means a relationship in which a broker or
7licensee, whether directly or through an affiliated licensee,
8represents a consumer by the consumer's consent, whether
9express or implied, in a real property transaction.
10    "Applicant" means any person, as defined in this Section,
11who applies to the Department for a valid license as a managing
12broker, broker, or leasing agent.
13    "Blind advertisement" means any real estate advertisement
14that does not include the sponsoring broker's business name and
15that is used by any licensee regarding the sale or lease of
16real estate, including his or her own, licensed activities, or
17the hiring of any licensee under this Act. The broker's
18business name in the case of a franchise shall include the
19franchise affiliation as well as the name of the individual
20firm.
21    "Board" means the Real Estate Administration and
22Disciplinary Board of the Department as created by Section
2325-10 of this Act.
24    "Branch office" means a sponsoring broker's office other
25than the sponsoring broker's principal office.
26    "Broker" means an individual, partnership, limited

 

 

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1liability company, corporation, or registered limited
2liability partnership other than a leasing agent who, whether
3in person or through any media or technology, for another and
4for compensation, or with the intention or expectation of
5receiving compensation, either directly or indirectly:
6        (1) Sells, exchanges, purchases, rents, or leases real
7    estate.
8        (2) Offers to sell, exchange, purchase, rent, or lease
9    real estate.
10        (3) Negotiates, offers, attempts, or agrees to
11    negotiate the sale, exchange, purchase, rental, or leasing
12    of real estate.
13        (4) Lists, offers, attempts, or agrees to list real
14    estate for sale, rent, lease, or exchange.
15        (5) Buys, sells, offers to buy or sell, or otherwise
16    deals in options on real estate or improvements thereon.
17        (6) Supervises the collection, offer, attempt, or
18    agreement to collect rent for the use of real estate.
19        (7) Advertises or represents himself or herself as
20    being engaged in the business of buying, selling,
21    exchanging, renting, or leasing real estate.
22        (8) Assists or directs in procuring or referring of
23    leads or prospects, intended to result in the sale,
24    exchange, lease, or rental of real estate.
25        (9) Assists or directs in the negotiation of any
26    transaction intended to result in the sale, exchange,

 

 

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1    lease, or rental of real estate.
2        (10) Opens real estate to the public for marketing
3    purposes.
4        (11) Sells, rents, leases, or offers for sale or lease
5    real estate at auction.
6        (12) Prepares or provides a broker price opinion or
7    comparative market analysis as those terms are defined in
8    this Act, pursuant to the provisions of Section 10-45 of
9    this Act.
10    "Brokerage agreement" means a written or oral agreement
11between a sponsoring broker and a consumer for licensed
12activities to be provided to a consumer in return for
13compensation or the right to receive compensation from another.
14Brokerage agreements may constitute either a bilateral or a
15unilateral agreement between the broker and the broker's client
16depending upon the content of the brokerage agreement. All
17exclusive brokerage agreements shall be in writing.
18    "Broker price opinion" means an estimate or analysis of the
19probable selling price of a particular interest in real estate,
20which may provide a varying level of detail about the
21property's condition, market, and neighborhood and information
22on comparable sales. The activities of a real estate broker or
23managing broker engaging in the ordinary course of business as
24a broker, as defined in this Section, shall not be considered a
25broker price opinion if no compensation is paid to the broker
26or managing broker, other than compensation based upon the sale

 

 

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1or rental of real estate.
2    "Client" means a person who is being represented by a
3licensee.
4    "Comparative market analysis" is an analysis or opinion
5regarding pricing, marketing, or financial aspects relating to
6a specified interest or interests in real estate that may be
7based upon an analysis of comparative market data, the
8expertise of the real estate broker or managing broker, and
9such other factors as the broker or managing broker may deem
10appropriate in developing or preparing such analysis or
11opinion. The activities of a real estate broker or managing
12broker engaging in the ordinary course of business as a broker,
13as defined in this Section, shall not be considered a
14comparative market analysis if no compensation is paid to the
15broker or managing broker, other than compensation based upon
16the sale or rental of real estate.
17    "Compensation" means the valuable consideration given by
18one person or entity to another person or entity in exchange
19for the performance of some activity or service. Compensation
20shall include the transfer of valuable consideration,
21including without limitation the following:
22        (1) commissions;
23        (2) referral fees;
24        (3) bonuses;
25        (4) prizes;
26        (5) merchandise;

 

 

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1        (6) finder fees;
2        (7) performance of services;
3        (8) coupons or gift certificates;
4        (9) discounts;
5        (10) rebates;
6        (11) a chance to win a raffle, drawing, lottery, or
7    similar game of chance not prohibited by any other law or
8    statute;
9        (12) retainer fee; or
10        (13) salary.
11    "Confidential information" means information obtained by a
12licensee from a client during the term of a brokerage agreement
13that (i) was made confidential by the written request or
14written instruction of the client, (ii) deals with the
15negotiating position of the client, or (iii) is information the
16disclosure of which could materially harm the negotiating
17position of the client, unless at any time:
18        (1) the client permits the disclosure of information
19    given by that client by word or conduct;
20        (2) the disclosure is required by law; or
21        (3) the information becomes public from a source other
22    than the licensee.
23    "Confidential information" shall not be considered to
24include material information about the physical condition of
25the property.
26    "Consumer" means a person or entity seeking or receiving

 

 

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1licensed activities.
2    "Continuing education school" means any person licensed by
3the Department as a school for continuing education in
4accordance with Section 30-15 of this Act.
5    "Coordinator" means the Coordinator of Real Estate created
6in Section 25-15 of this Act.
7    "Credit hour" means 50 minutes of classroom instruction in
8course work that meets the requirements set forth in rules
9adopted by the Department.
10    "Customer" means a consumer who is not being represented by
11the licensee but for whom the licensee is performing
12ministerial acts.
13    "Department" means the Department of Financial and
14Professional Regulation.
15    "Designated agency" means a contractual relationship
16between a sponsoring broker and a client under Section 15-50 of
17this Act in which one or more licensees associated with or
18employed by the broker are designated as agent of the client.
19    "Designated agent" means a sponsored licensee named by a
20sponsoring broker as the legal agent of a client, as provided
21for in Section 15-50 of this Act.
22    "Dual agency" means an agency relationship in which a
23licensee is representing both buyer and seller or both landlord
24and tenant in the same transaction. When the agency
25relationship is a designated agency, the question of whether
26there is a dual agency shall be determined by the agency

 

 

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1relationships of the designated agent of the parties and not of
2the sponsoring broker.
3    "Education provider" means a school licensed by the
4Department offering courses in pre-license, post-license, or
5continuing education required by this Act.
6    "Employee" or other derivative of the word "employee", when
7used to refer to, describe, or delineate the relationship
8between a sponsoring broker and a managing broker, broker, or a
9leasing agent, shall be construed to include an independent
10contractor relationship, provided that a written agreement
11exists that clearly establishes and states the relationship.
12All responsibilities of a broker shall remain.
13    "Escrow moneys" means all moneys, promissory notes or any
14other type or manner of legal tender or financial consideration
15deposited with any person for the benefit of the parties to the
16transaction. A transaction exists once an agreement has been
17reached and an accepted real estate contract signed or lease
18agreed to by the parties. Escrow moneys includes without
19limitation earnest moneys and security deposits, except those
20security deposits in which the person holding the security
21deposit is also the sole owner of the property being leased and
22for which the security deposit is being held.
23    "Electronic means of proctoring" means a methodology
24providing assurance that the person taking a test and
25completing the answers to questions is the person seeking
26licensure or credit for continuing education and is doing so

 

 

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1without the aid of a third party or other device.
2    "Exclusive brokerage agreement" means a written brokerage
3agreement that provides that the sponsoring broker has the sole
4right, through one or more sponsored licensees, to act as the
5exclusive designated agent or representative of the client and
6that meets the requirements of Section 15-75 of this Act.
7    "Inoperative" means a status of licensure where the
8licensee holds a current license under this Act, but the
9licensee is prohibited from engaging in licensed activities
10because the licensee is unsponsored or the license of the
11sponsoring broker with whom the licensee is associated or by
12whom he or she is employed is currently expired, revoked,
13suspended, or otherwise rendered invalid under this Act.
14    "Interactive delivery method" means delivery of a course by
15an instructor through a medium allowing for 2-way communication
16between the instructor and a student in which either can
17initiate or respond to questions.
18    "Leads" means the name or names of a potential buyer,
19seller, lessor, lessee, or client of a licensee.
20    "Leasing Agent" means a person who is employed by a broker
21to engage in licensed activities limited to leasing residential
22real estate who has obtained a license as provided for in
23Section 5-5 of this Act.
24    "License" means the document issued by the Department
25certifying that the person named thereon has fulfilled all
26requirements prerequisite to licensure under this Act.

 

 

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1    "Licensed activities" means those activities listed in the
2definition of "broker" under this Section.
3    "Licensee" means any person, as defined in this Section,
4who holds a valid unexpired license as a managing broker,
5broker, or leasing agent.
6    "Listing presentation" means a communication between a
7managing broker or broker and a consumer in which the licensee
8is attempting to secure a brokerage agreement with the consumer
9to market the consumer's real estate for sale or lease.
10    "Managing broker" means a broker who has supervisory
11responsibilities for licensees in one or, in the case of a
12multi-office company, more than one office and who has been
13appointed as such by the sponsoring broker.
14    "Medium of advertising" means any method of communication
15intended to influence the general public to use or purchase a
16particular good or service or real estate.
17    "Ministerial acts" means those acts that a licensee may
18perform for a consumer that are informative or clerical in
19nature and do not rise to the level of active representation on
20behalf of a consumer. Examples of these acts include without
21limitation (i) responding to phone inquiries by consumers as to
22the availability and pricing of brokerage services, (ii)
23responding to phone inquiries from a consumer concerning the
24price or location of property, (iii) attending an open house
25and responding to questions about the property from a consumer,
26(iv) setting an appointment to view property, (v) responding to

 

 

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1questions of consumers walking into a licensee's office
2concerning brokerage services offered or particular
3properties, (vi) accompanying an appraiser, inspector,
4contractor, or similar third party on a visit to a property,
5(vii) describing a property or the property's condition in
6response to a consumer's inquiry, (viii) completing business or
7factual information for a consumer on an offer or contract to
8purchase on behalf of a client, (ix) showing a client through a
9property being sold by an owner on his or her own behalf, or
10(x) referral to another broker or service provider.
11    "Office" means a broker's place of business where the
12general public is invited to transact business and where
13records may be maintained and licenses displayed, whether or
14not it is the broker's principal place of business.
15    "Person" means and includes individuals, entities,
16corporations, limited liability companies, registered limited
17liability partnerships, and partnerships, foreign or domestic,
18except that when the context otherwise requires, the term may
19refer to a single individual or other described entity.
20    "Personal assistant" means a licensed or unlicensed person
21who has been hired for the purpose of aiding or assisting a
22sponsored licensee in the performance of the sponsored
23licensee's job.
24    "Pocket card" means the card issued by the Department to
25signify that the person named on the card is currently licensed
26under this Act.

 

 

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1    "Pre-license school" means a school licensed by the
2Department offering courses in subjects related to real estate
3transactions, including the subjects upon which an applicant is
4examined in determining fitness to receive a license.
5    "Pre-renewal period" means the period between the date of
6issue of a currently valid license and the license's expiration
7date.
8    "Proctor" means any person, including, but not limited to,
9an instructor, who has a written agreement to administer
10examinations fairly and impartially with a licensed
11pre-license school or a licensed continuing education provider
12school.
13    "Real estate" means and includes leaseholds as well as any
14other interest or estate in land, whether corporeal,
15incorporeal, freehold, or non-freehold, including timeshare
16interests, and whether the real estate is situated in this
17State or elsewhere.
18    "Regular employee" means a person working an average of 20
19hours per week for a person or entity who would be considered
20as an employee under the Internal Revenue Service eleven main
21tests in three categories being behavioral control, financial
22control and the type of relationship of the parties, formerly
23the twenty factor test.
24    "Secretary" means the Secretary of the Department of
25Financial and Professional Regulation, or a person authorized
26by the Secretary to act in the Secretary's stead.

 

 

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1    "Sponsoring broker" means the broker who has issued a
2sponsor card to a licensed managing broker, broker, or a
3leasing agent.
4    "Sponsor card" means the temporary permit issued by the
5sponsoring broker certifying that the managing broker, broker,
6or leasing agent named thereon is employed by or associated by
7written agreement with the sponsoring broker, as provided for
8in Section 5-40 of this Act.
9(Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15;
1099-227, eff. 8-3-15.)
 
11    (225 ILCS 454/5-5)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 5-5. Leasing agent license.
14    (a) The purpose of this Section is to provide for a limited
15scope license to enable persons who wish to engage in
16activities limited to the leasing of residential real property
17for which a license is required under this Act, and only those
18activities, to do so by obtaining the license provided for
19under this Section.
20    (b) Notwithstanding the other provisions of this Act, there
21is hereby created a leasing agent license that shall enable the
22licensee to engage only in residential leasing activities for
23which a license is required under this Act. Such activities
24include without limitation leasing or renting residential real
25property, or attempting, offering, or negotiating to lease or

 

 

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1rent residential real property, or supervising the collection,
2offer, attempt, or agreement to collect rent for the use of
3residential real property. Nothing in this Section shall be
4construed to require a licensed managing broker or broker to
5obtain a leasing agent license in order to perform leasing
6activities for which a license is required under this Act.
7Licensed leasing agents, including those operating under
8subsection (d), may engage in activities enumerated within the
9definition of "leasing agent" in Section 1-10 of this Act and
10may not engage in any activity that would otherwise require a
11broker's license, including, but not limited to, selling,
12offering for sale, negotiating for sale, listing or showing for
13sale, or referring for sale or commercial lease real estate.
14Licensed leasing agents must be sponsored and employed by a
15sponsoring broker.
16    (c) The Department, by rule and in accordance with this
17Act, shall provide for the licensing of leasing agents,
18including the issuance, renewal, and administration of
19licenses.
20    (d) Notwithstanding any other provisions of this Act to the
21contrary, a person may engage in residential leasing activities
22for which a license is required under this Act, for a period of
23120 consecutive days without being licensed, so long as the
24person is acting under the supervision of a sponsoring broker,
25and the sponsoring broker has notified the Department that the
26person is pursuing licensure under this Section, and the person

 

 

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1has enrolled in the leasing agent pre-license education course
2no later than 60 days after beginning to engage in residential
3leasing activities. During the 120-day 120 day period all
4requirements of Sections 5-10 and 5-65 of this Act with respect
5to education, successful completion of an examination, and the
6payment of all required fees must be satisfied. The Department
7may adopt rules to ensure that the provisions of this
8subsection are not used in a manner that enables an unlicensed
9person to repeatedly or continually engage in activities for
10which a license is required under this Act.
11(Source: P.A. 99-227, eff. 8-3-15.)
 
12    (225 ILCS 454/5-10)
13    (Section scheduled to be repealed on January 1, 2020)
14    Sec. 5-10. Requirements for license as leasing agent;
15continuing education.
16    (a) Every applicant for licensure as a leasing agent must
17meet the following qualifications:
18        (1) be at least 18 years of age;
19        (2) be of good moral character;
20        (3) successfully complete a 4-year course of study in a
21    high school or secondary school or an equivalent course of
22    study approved by the Illinois State Board of Education;
23        (4) personally take and pass a written examination
24    authorized by the Department sufficient to demonstrate the
25    applicant's knowledge of the provisions of this Act

 

 

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1    relating to leasing agents and the applicant's competence
2    to engage in the activities of a licensed leasing agent;
3        (5) provide satisfactory evidence of having completed
4    15 hours of instruction in an approved course of study
5    relating to the leasing of residential real property. The
6    Board shall recommend to the Department the number of hours
7    each topic of study shall require. The course of study
8    shall, among other topics, cover the provisions of this Act
9    applicable to leasing agents; fair housing issues relating
10    to residential leasing; advertising and marketing issues;
11    leases, applications, and credit reports; owner-tenant
12    relationships and owner-tenant laws; the handling of
13    funds; and environmental issues relating to residential
14    real property;
15        (6) complete any other requirements as set forth by
16    rule; and
17        (7) present a valid application for issuance of an
18    initial license accompanied by a sponsor card and the fees
19    specified by rule.
20    (b) No applicant shall engage in any of the activities
21covered by this Act until a valid sponsor card has been issued
22to such applicant. The sponsor card shall be valid for a
23maximum period of 45 days after the date of issuance unless
24extended for good cause as provided by rule.
25    (c) Successfully completed course work, completed pursuant
26to the requirements of this Section, may be applied to the

 

 

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1course work requirements to obtain a managing broker's or
2broker's license as provided by rule. The Board Advisory
3Council may recommend through the Board to the Department and
4the Department may adopt requirements for approved courses,
5course content, and the approval of courses, instructors, and
6education providers schools, as well as education provider
7school and instructor fees. The Department may establish
8continuing education requirements for licensed leasing agents,
9by rule, consistent with the language and intent of this Act,
10with the advice of the Advisory Council and Board.
11    (d) The continuing education requirement for leasing
12agents shall consist of a single core curriculum to be
13established by the Department as recommended by the Board.
14Leasing agents shall be required to complete no less than 6
15hours of continuing education in the core curriculum for each
162-year renewal period.
17(Source: P.A. 99-227, eff. 8-3-15.)
 
18    (225 ILCS 454/5-27)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 5-27. Requirements for licensure as a broker.
21    (a) Every applicant for licensure as a broker must meet the
22following qualifications:
23        (1) Be at least 21 years of age. The After April 30,
24    2011, the minimum age of 21 years shall be waived for any
25    person seeking a license as a broker who has attained the

 

 

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1    age of 18 and can provide evidence of the successful
2    completion of at least 4 semesters of post-secondary school
3    study as a full-time student or the equivalent, with major
4    emphasis on real estate courses, in a school approved by
5    the Department;
6        (2) Be of good moral character;
7        (3) Successfully complete a 4-year course of study in a
8    high school or secondary school approved by the Illinois
9    State Board of Education or an equivalent course of study
10    as determined by an examination conducted by the Illinois
11    State Board of Education which shall be verified under oath
12    by the applicant;
13        (4) (Blank);
14        (5) Provide After April 30, 2011, provide satisfactory
15    evidence of having completed 90 hours of instruction in
16    real estate courses approved by the Department Advisory
17    Council, 15 hours of which must consist of situational and
18    case studies presented in the classroom or by live, other
19    interactive webinar or online distance education courses
20    delivery method between the instructor and the students;
21        (6) Personally take and pass a written examination
22    authorized by the Department;
23        (7) Present a valid application for issuance of a
24    license accompanied by a sponsor card and the fees
25    specified by rule.
26    (b) The requirements specified in items (3) and (5) of

 

 

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1subsection (a) of this Section do not apply to applicants who
2are currently admitted to practice law by the Supreme Court of
3Illinois and are currently in active standing.
4    (c) No applicant shall engage in any of the activities
5covered by this Act until a valid sponsor card has been issued
6to such applicant. The sponsor card shall be valid for a
7maximum period of 45 days after the date of issuance unless
8extended for good cause as provided by rule.
9    (d) All licenses should be readily available to the public
10at their place of business.
11    (e) An individual holding an active license as a managing
12broker may return the license to the Department along with a
13form provided by the Department and shall be issued a broker's
14license in exchange. Any individual obtaining a broker's
15license under this subsection (e) shall be considered as having
16obtained a broker's license by education and passing the
17required test and shall be treated as such in determining
18compliance with this Act.
19(Source: P.A. 98-531, eff. 8-23-13; 98-1109, eff. 1-1-15;
2099-227, eff. 8-3-15.)
 
21    (225 ILCS 454/5-28)
22    (Section scheduled to be repealed on January 1, 2020)
23    Sec. 5-28. Requirements for licensure as a managing broker.
24    (a) Every Effective May 1, 2012, every applicant for
25licensure as a managing broker must meet the following

 

 

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1qualifications:
2        (1) be at least 21 years of age;
3        (2) be of good moral character;
4        (3) have been licensed at least 2 out of the preceding
5    3 years as a broker;
6        (4) successfully complete a 4-year course of study in
7    high school or secondary school approved by the Illinois
8    State Board of Education or an equivalent course of study
9    as determined by an examination conducted by the Illinois
10    State Board of Education, which shall be verified under
11    oath by the applicant;
12        (5) provide satisfactory evidence of having completed
13    at least 165 hours, 120 of which shall be those hours
14    required pre and post-licensure to obtain a broker's
15    license, and 45 additional hours completed within the year
16    immediately preceding the filing of an application for a
17    managing broker's license, which hours shall focus on
18    brokerage administration and management and leasing agent
19    management and include at least 15 hours in the classroom
20    or by live, other interactive webinar or online distance
21    education courses delivery method between the instructor
22    and the students;
23        (6) personally take and pass a written examination
24    authorized by the Department; and
25        (7) present a valid application for issuance of a
26    license accompanied by a sponsor card, an appointment as a

 

 

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1    managing broker, and the fees specified by rule.
2    (b) The requirements specified in item (5) of subsection
3(a) of this Section do not apply to applicants who are
4currently admitted to practice law by the Supreme Court of
5Illinois and are currently in active standing.
6    (c) No applicant shall act as a managing broker for more
7than 90 days after an appointment as a managing broker has been
8filed with the Department without obtaining a managing broker's
9license.
10(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15.)
 
11    (225 ILCS 454/5-50)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 5-50. Expiration and renewal of managing broker,
14broker, or leasing agent license; sponsoring broker; register
15of licensees; pocket card.
16    (a) The expiration date and renewal period for each license
17issued under this Act shall be set by rule. Except as otherwise
18provided in this Section, the holder of a license may renew the
19license within 90 days preceding the expiration date thereof by
20completing the continuing education required by this Act and
21paying the fees specified by rule.
22    (b) An individual whose first license is that of a broker
23received on or after the effective date of this amendatory Act
24of the 100th General Assembly April 30, 2011, must provide
25evidence of having completed 30 hours of post-license education

 

 

10000HB3528ham001- 22 -LRB100 11358 SMS 24898 a

1in courses recommended approved by the Board and approved by
2the Department Advisory Council, 15 hours of which must consist
3of situational and case studies presented in a the classroom or
4a live, interactive webinar, online distance education course,
5or home study course. Credit for courses taken through a home
6study course shall require passage of or by other interactive
7delivery method between the instructor and the students, and
8personally take and pass an examination approved by the
9Department prior to the first renewal of their broker's
10license.
11    (c) Any managing broker, broker, or leasing agent whose
12license under this Act has expired shall be eligible to renew
13the license during the 2-year period following the expiration
14date, provided the managing broker, broker, or leasing agent
15pays the fees as prescribed by rule and completes continuing
16education and other requirements provided for by the Act or by
17rule. Beginning on May 1, 2012, a managing broker licensee,
18broker, or leasing agent whose license has been expired for
19more than 2 years but less than 5 years may have it restored by
20(i) applying to the Department, (ii) paying the required fee,
21(iii) completing the continuing education requirements for the
22most recent pre-renewal period that ended prior to the date of
23the application for reinstatement, and (iv) filing acceptable
24proof of fitness to have his or her license restored, as set by
25rule. A managing broker, broker, or leasing agent whose license
26has been expired for more than 5 years shall be required to

 

 

10000HB3528ham001- 23 -LRB100 11358 SMS 24898 a

1meet the requirements for a new license.
2    (d) Notwithstanding any other provisions of this Act to the
3contrary, any managing broker, broker, or leasing agent whose
4license expired while he or she was (i) on active duty with the
5Armed Forces of the United States or called into service or
6training by the state militia, (ii) engaged in training or
7education under the supervision of the United States
8preliminary to induction into military service, or (iii)
9serving as the Coordinator of Real Estate in the State of
10Illinois or as an employee of the Department may have his or
11her license renewed, reinstated or restored without paying any
12lapsed renewal fees if within 2 years after the termination of
13the service, training or education by furnishing the Department
14with satisfactory evidence of service, training, or education
15and it has been terminated under honorable conditions.
16     (e) The Department shall establish and maintain a register
17of all persons currently licensed by the State and shall issue
18and prescribe a form of pocket card. Upon payment by a licensee
19of the appropriate fee as prescribed by rule for engagement in
20the activity for which the licensee is qualified and holds a
21license for the current period, the Department shall issue a
22pocket card to the licensee. The pocket card shall be
23verification that the required fee for the current period has
24been paid and shall indicate that the person named thereon is
25licensed for the current renewal period as a managing broker,
26broker, or leasing agent as the case may be. The pocket card

 

 

10000HB3528ham001- 24 -LRB100 11358 SMS 24898 a

1shall further indicate that the person named thereon is
2authorized by the Department to engage in the licensed activity
3appropriate for his or her status (managing broker, broker, or
4leasing agent). Each licensee shall carry on his or her person
5his or her pocket card or, if such pocket card has not yet been
6issued, a properly issued sponsor card when engaging in any
7licensed activity and shall display the same on demand.
8    (f) The Department shall provide to the sponsoring broker a
9notice of renewal for all sponsored licensees by mailing the
10notice to the sponsoring broker's address of record, or, at the
11Department's discretion, by an electronic means as provided for
12by rule.
13    (g) Upon request from the sponsoring broker, the Department
14shall make available to the sponsoring broker, either by mail
15or by an electronic means at the discretion of the Department,
16a listing of licensees under this Act who, according to the
17records of the Department, are sponsored by that broker. Every
18licensee associated with or employed by a broker whose license
19is revoked, suspended, terminated, or expired shall be
20considered as inoperative until such time as the sponsoring
21broker's license is reinstated or renewed, or the licensee
22changes employment as set forth in subsection (c) of Section
235-40 of this Act.
24(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15.)
 
25    (225 ILCS 454/5-70)

 

 

10000HB3528ham001- 25 -LRB100 11358 SMS 24898 a

1    (Section scheduled to be repealed on January 1, 2020)
2    Sec. 5-70. Continuing education requirement; managing
3broker or broker.
4    (a) The requirements of this Section apply to all managing
5brokers and brokers.
6    (b) Except as otherwise provided in this Section, each
7person who applies for renewal of his or her license as a
8managing broker or broker must successfully complete 6 hours of
9real estate continuing education courses recommended by the
10Board and approved by the Department Advisory Council for each
11year of the pre-renewal period. In addition, beginning with the
12pre-renewal period for managing broker licensees that begins
13after the effective date of this Act, those licensees renewing
14or obtaining a managing broker's license must successfully
15complete a 12-hour broker management continuing education
16course approved by the Department each pre-renewal period. The
17broker management continuing education course must be
18completed in the classroom or by other interactive delivery
19method between the instructor and the students. Successful
20completion of the course shall include achieving a passing
21score as provided by rule on a test developed and administered
22in accordance with rules adopted by the Department. No license
23may be renewed except upon the successful completion of the
24required courses or their equivalent or upon a waiver of those
25requirements for good cause shown as determined by the
26Secretary with the recommendation of the Board Advisory

 

 

10000HB3528ham001- 26 -LRB100 11358 SMS 24898 a

1Council. The requirements of this Article are applicable to all
2managing brokers and brokers except those managing brokers and
3brokers who, during the pre-renewal period:
4        (1) serve in the armed services of the United States;
5        (2) serve as an elected State or federal official;
6        (3) serve as a full-time employee of the Department; or
7        (4) are admitted to practice law pursuant to Illinois
8    Supreme Court rule.
9    (c) (Blank).
10    (d) A person receiving an initial license during the 90
11days before the renewal date shall not be required to complete
12the continuing education courses provided for in subsection (b)
13of this Section as a condition of initial license renewal.
14    (e) The continuing education requirement for brokers and
15managing brokers shall consist of a single core curriculum and
16an elective curriculum, to be recommended established by the
17Board and approved by the Department in accordance with this
18subsection. The core curriculum shall not be further divided
19into subcategories or divisions of instruction. The core
20curriculum shall consist of 4 hours per 2-year Advisory
21Council. In meeting the continuing education requirements of
22this Act, at least 3 hours per year or their equivalent, 6
23hours for each two-year pre-renewal period on subjects that may
24include, but are not limited to, advertising, agency,
25disclosures, escrow, fair housing, leasing agent management,
26and license law. The amount of time allotted to each of these

 

 

10000HB3528ham001- 27 -LRB100 11358 SMS 24898 a

1subjects shall be recommended by the Board and determined by
2the Department , shall be required to be completed in the core
3curriculum. The Department, upon the recommendation of the
4Board, shall review the core curriculum every 4 years, at a
5minimum, and shall revise the curriculum if necessary. However,
6the core curriculum's total hourly requirement shall only be
7subject to change by amendment of this subsection, and any
8change to the core curriculum shall not be effective for a
9period of 6 months after such change is made by the Department.
10The Department shall provide notice to all approved education
11providers of any changes to the core curriculum. When
12determining whether revisions of the core curriculum's
13subjects or specific time requirements are necessary In
14establishing the core curriculum, the Board Advisory Council
15shall consider subjects that will educate licensees on recent
16changes in applicable laws, and new laws, and refresh the
17licensee on areas of the license law and the Department policy
18that the Board Advisory Council deems appropriate, and any
19other subject areas the Board that the Advisory Council deems
20timely and applicable in order to prevent violations of this
21Act and to protect the public. In establishing a recommendation
22to the Department regarding the elective curriculum, the Board
23Advisory Council shall consider subjects that cover the various
24aspects of the practice of real estate that are covered under
25the scope of this Act. However, the elective curriculum shall
26not include any offerings referred to in Section 5-85 of this

 

 

10000HB3528ham001- 28 -LRB100 11358 SMS 24898 a

1Act.
2    (f) The subject areas of continuing education courses
3recommended by the Board and approved by the Department shall
4be meant to protect the professionalism of the industry, the
5consumer, and the public and prevent violations of this Act and
6Advisory Council may include without limitation the following:
7        (1) license law and escrow;
8        (2) antitrust;
9        (3) fair housing;
10        (4) agency;
11        (5) appraisal;
12        (6) property management;
13        (7) residential brokerage;
14        (8) farm property management;
15        (9) rights and duties of sellers, buyers, and brokers;
16        (10) commercial brokerage and leasing; and
17        (11) real estate financing; .
18        (12) disclosures;
19        (13) leasing agent management; and
20        (14) advertising.
21    (g) In lieu of credit for those courses listed in
22subsection (f) of this Section, credit may be earned for
23serving as a licensed instructor in an approved course of
24continuing education. The amount of credit earned for teaching
25a course shall be the amount of continuing education credit for
26which the course is approved for licensees taking the course.

 

 

10000HB3528ham001- 29 -LRB100 11358 SMS 24898 a

1    (h) Credit hours may be earned for self-study programs
2approved by the Department Advisory Council.
3    (i) A managing broker or broker may earn credit for a
4specific continuing education course only once during the
5pre-renewal prerenewal period.
6    (j) No more than 6 hours of continuing education credit may
7be taken in one calendar day.
8    (k) To promote the offering of a uniform and consistent
9course content, the Department may provide for the development
10of a single broker management course to be offered by all
11continuing education providers who choose to offer the broker
12management continuing education course. The Department may
13contract for the development of the 12-hour broker management
14continuing education course with an outside vendor or
15consultant and, if the course is developed in this manner, the
16Department or the outside consultant shall license the use of
17that course to all approved continuing education providers who
18wish to provide the course.
19    (l) Except as specifically provided in this Act, continuing
20education credit hours may not be earned for completion of pre
21or post-license courses. The approved 30-hour post-license
22course for broker licensees shall satisfy the continuing
23education requirement for the pre-renewal period in which the
24course is taken. The approved 45-hour brokerage administration
25and management course shall satisfy the 12-hour broker
26management continuing education requirement for the

 

 

10000HB3528ham001- 30 -LRB100 11358 SMS 24898 a

1pre-renewal period in which the course is taken.
2(Source: P.A. 98-531, eff. 8-23-13; 99-227, eff. 8-3-15;
399-728, eff. 1-1-17.)
 
4    (225 ILCS 454/5-75)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 5-75. Out-of-state continuing education credit. If a
7renewal applicant has earned continuing education hours in
8another state or territory for which he or she is claiming
9credit toward full compliance in Illinois, the Board Advisory
10Council shall review and recommend to the Department whether it
11should , approve, or disapprove those hours based upon whether
12the course is one that would be approved under Section 5-70 of
13this Act, whether the course meets the basic requirements for
14continuing education under this Act, and any other criteria
15that is provided by statute or rule.
16(Source: P.A. 91-245, eff. 12-31-99.)
 
17    (225 ILCS 454/5-80)
18    (Section scheduled to be repealed on January 1, 2020)
19    Sec. 5-80. Evidence of compliance with continuing
20education requirements.
21    (a) Each renewal applicant shall certify, on his or her
22renewal application, full compliance with continuing education
23requirements set forth in Section 5-70. The continuing
24education provider school shall retain and submit to the

 

 

10000HB3528ham001- 31 -LRB100 11358 SMS 24898 a

1Department after the completion of each course evidence of
2those successfully completing the course as provided by rule.
3    (b) The Department may require additional evidence
4demonstrating compliance with the continuing education
5requirements. The renewal applicant shall retain and produce
6the evidence of compliance upon request of the Department.
7(Source: P.A. 96-856, eff. 12-31-09.)
 
8    (225 ILCS 454/20-20)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 20-20. Grounds for discipline.
11    (a) The Department may refuse to issue or renew a license,
12may place on probation, suspend, or revoke any license,
13reprimand, or take any other disciplinary or non-disciplinary
14action as the Department may deem proper and impose a fine not
15to exceed $25,000 upon any licensee or applicant under this Act
16or any person who holds himself or herself out as an applicant
17or licensee or against a licensee in handling his or her own
18property, whether held by deed, option, or otherwise, for any
19one or any combination of the following causes:
20        (1) Fraud or misrepresentation in applying for, or
21    procuring, a license under this Act or in connection with
22    applying for renewal of a license under this Act.
23        (2) The conviction of or plea of guilty or plea of nolo
24    contendere to a felony or misdemeanor in this State or any
25    other jurisdiction; or the entry of an administrative

 

 

10000HB3528ham001- 32 -LRB100 11358 SMS 24898 a

1    sanction by a government agency in this State or any other
2    jurisdiction. Action taken under this paragraph (2) for a
3    misdemeanor or an administrative sanction is limited to a
4    misdemeanor or administrative sanction that has as an
5    essential element dishonesty or fraud or involves larceny,
6    embezzlement, or obtaining money, property, or credit by
7    false pretenses or by means of a confidence game.
8        (3) Inability to practice the profession with
9    reasonable judgment, skill, or safety as a result of a
10    physical illness, including, but not limited to,
11    deterioration through the aging process or loss of motor
12    skill, or a mental illness or disability.
13        (4) Practice under this Act as a licensee in a retail
14    sales establishment from an office, desk, or space that is
15    not separated from the main retail business by a separate
16    and distinct area within the establishment.
17        (5) Having been disciplined by another state, the
18    District of Columbia, a territory, a foreign nation, or a
19    governmental agency authorized to impose discipline if at
20    least one of the grounds for that discipline is the same as
21    or the equivalent of one of the grounds for which a
22    licensee may be disciplined under this Act. A certified
23    copy of the record of the action by the other state or
24    jurisdiction shall be prima facie evidence thereof.
25        (6) Engaging in the practice of real estate brokerage
26    without a license or after the licensee's license or

 

 

10000HB3528ham001- 33 -LRB100 11358 SMS 24898 a

1    temporary permit was expired or while the license was
2    inoperative.
3        (7) Cheating on or attempting to subvert the Real
4    Estate License Exam or continuing education exam.
5        (8) Aiding or abetting an applicant to subvert or cheat
6    on the Real Estate License Exam or continuing education
7    exam administered pursuant to this Act.
8        (9) Advertising that is inaccurate, misleading, or
9    contrary to the provisions of the Act.
10        (10) Making any substantial misrepresentation or
11    untruthful advertising.
12        (11) Making any false promises of a character likely to
13    influence, persuade, or induce.
14        (12) Pursuing a continued and flagrant course of
15    misrepresentation or the making of false promises through
16    licensees, employees, agents, advertising, or otherwise.
17        (13) Any misleading or untruthful advertising, or
18    using any trade name or insignia of membership in any real
19    estate organization of which the licensee is not a member.
20        (14) Acting for more than one party in a transaction
21    without providing written notice to all parties for whom
22    the licensee acts.
23        (15) Representing or attempting to represent a broker
24    other than the sponsoring broker.
25        (16) Failure to account for or to remit any moneys or
26    documents coming into his or her possession that belong to

 

 

10000HB3528ham001- 34 -LRB100 11358 SMS 24898 a

1    others.
2        (17) Failure to maintain and deposit in a special
3    account, separate and apart from personal and other
4    business accounts, all escrow moneys belonging to others
5    entrusted to a licensee while acting as a broker, escrow
6    agent, or temporary custodian of the funds of others or
7    failure to maintain all escrow moneys on deposit in the
8    account until the transactions are consummated or
9    terminated, except to the extent that the moneys, or any
10    part thereof, shall be:
11            (A) disbursed prior to the consummation or
12        termination (i) in accordance with the written
13        direction of the principals to the transaction or their
14        duly authorized agents, (ii) in accordance with
15        directions providing for the release, payment, or
16        distribution of escrow moneys contained in any written
17        contract signed by the principals to the transaction or
18        their duly authorized agents, or (iii) pursuant to an
19        order of a court of competent jurisdiction; or
20            (B) deemed abandoned and transferred to the Office
21        of the State Treasurer to be handled as unclaimed
22        property pursuant to the Uniform Disposition of
23        Unclaimed Property Act. Escrow moneys may be deemed
24        abandoned under this subparagraph (B) only: (i) in the
25        absence of disbursement under subparagraph (A); (ii)
26        in the absence of notice of the filing of any claim in

 

 

10000HB3528ham001- 35 -LRB100 11358 SMS 24898 a

1        a court of competent jurisdiction; and (iii) if 6
2        months have elapsed after the receipt of a written
3        demand for the escrow moneys from one of the principals
4        to the transaction or the principal's duly authorized
5        agent.
6    The account shall be noninterest bearing, unless the
7    character of the deposit is such that payment of interest
8    thereon is otherwise required by law or unless the
9    principals to the transaction specifically require, in
10    writing, that the deposit be placed in an interest bearing
11    account.
12        (18) Failure to make available to the Department all
13    escrow records and related documents maintained in
14    connection with the practice of real estate within 24 hours
15    of a request for those documents by Department personnel.
16        (19) Failing to furnish copies upon request of
17    documents relating to a real estate transaction to a party
18    who has executed that document.
19        (20) Failure of a sponsoring broker to timely provide
20    information, sponsor cards, or termination of licenses to
21    the Department.
22        (21) Engaging in dishonorable, unethical, or
23    unprofessional conduct of a character likely to deceive,
24    defraud, or harm the public.
25        (22) Commingling the money or property of others with
26    his or her own money or property.

 

 

10000HB3528ham001- 36 -LRB100 11358 SMS 24898 a

1        (23) Employing any person on a purely temporary or
2    single deal basis as a means of evading the law regarding
3    payment of commission to nonlicensees on some contemplated
4    transactions.
5        (24) Permitting the use of his or her license as a
6    broker to enable a leasing agent or unlicensed person to
7    operate a real estate business without actual
8    participation therein and control thereof by the broker.
9        (25) Any other conduct, whether of the same or a
10    different character from that specified in this Section,
11    that constitutes dishonest dealing.
12        (26) Displaying a "for rent" or "for sale" sign on any
13    property without the written consent of an owner or his or
14    her duly authorized agent or advertising by any means that
15    any property is for sale or for rent without the written
16    consent of the owner or his or her authorized agent.
17        (27) Failing to provide information requested by the
18    Department, or otherwise respond to that request, within 30
19    days of the request.
20        (28) Advertising by means of a blind advertisement,
21    except as otherwise permitted in Section 10-30 of this Act.
22        (29) Offering guaranteed sales plans, as defined in
23    clause (A) of this subdivision (29), except to the extent
24    hereinafter set forth:
25            (A) A "guaranteed sales plan" is any real estate
26        purchase or sales plan whereby a licensee enters into a

 

 

10000HB3528ham001- 37 -LRB100 11358 SMS 24898 a

1        conditional or unconditional written contract with a
2        seller, prior to entering into a brokerage agreement
3        with the seller, by the terms of which a licensee
4        agrees to purchase a property of the seller within a
5        specified period of time at a specific price in the
6        event the property is not sold in accordance with the
7        terms of a brokerage agreement to be entered into
8        between the sponsoring broker and the seller.
9            (B) A licensee offering a guaranteed sales plan
10        shall provide the details and conditions of the plan in
11        writing to the party to whom the plan is offered.
12            (C) A licensee offering a guaranteed sales plan
13        shall provide to the party to whom the plan is offered
14        evidence of sufficient financial resources to satisfy
15        the commitment to purchase undertaken by the broker in
16        the plan.
17            (D) Any licensee offering a guaranteed sales plan
18        shall undertake to market the property of the seller
19        subject to the plan in the same manner in which the
20        broker would market any other property, unless the
21        agreement with the seller provides otherwise.
22            (E) The licensee cannot purchase seller's property
23        until the brokerage agreement has ended according to
24        its terms or is otherwise terminated.
25            (F) Any licensee who fails to perform on a
26        guaranteed sales plan in strict accordance with its

 

 

10000HB3528ham001- 38 -LRB100 11358 SMS 24898 a

1        terms shall be subject to all the penalties provided in
2        this Act for violations thereof and, in addition, shall
3        be subject to a civil fine payable to the party injured
4        by the default in an amount of up to $25,000.
5        (30) Influencing or attempting to influence, by any
6    words or acts, a prospective seller, purchaser, occupant,
7    landlord, or tenant of real estate, in connection with
8    viewing, buying, or leasing real estate, so as to promote
9    or tend to promote the continuance or maintenance of
10    racially and religiously segregated housing or so as to
11    retard, obstruct, or discourage racially integrated
12    housing on or in any street, block, neighborhood, or
13    community.
14        (31) Engaging in any act that constitutes a violation
15    of any provision of Article 3 of the Illinois Human Rights
16    Act, whether or not a complaint has been filed with or
17    adjudicated by the Human Rights Commission.
18        (32) Inducing any party to a contract of sale or lease
19    or brokerage agreement to break the contract of sale or
20    lease or brokerage agreement for the purpose of
21    substituting, in lieu thereof, a new contract for sale or
22    lease or brokerage agreement with a third party.
23        (33) Negotiating a sale, exchange, or lease of real
24    estate directly with any person if the licensee knows that
25    the person has an exclusive brokerage agreement with
26    another broker, unless specifically authorized by that

 

 

10000HB3528ham001- 39 -LRB100 11358 SMS 24898 a

1    broker.
2        (34) When a licensee is also an attorney, acting as the
3    attorney for either the buyer or the seller in the same
4    transaction in which the licensee is acting or has acted as
5    a managing broker or broker.
6        (35) Advertising or offering merchandise or services
7    as free if any conditions or obligations necessary for
8    receiving the merchandise or services are not disclosed in
9    the same advertisement or offer. These conditions or
10    obligations include without limitation the requirement
11    that the recipient attend a promotional activity or visit a
12    real estate site. As used in this subdivision (35), "free"
13    includes terms such as "award", "prize", "no charge", "free
14    of charge", "without charge", and similar words or phrases
15    that reasonably lead a person to believe that he or she may
16    receive or has been selected to receive something of value,
17    without any conditions or obligations on the part of the
18    recipient.
19        (36) Disregarding or violating any provision of the
20    Land Sales Registration Act of 1989, the Illinois Real
21    Estate Time-Share Act, or the published rules promulgated
22    by the Department to enforce those Acts.
23        (37) Violating the terms of a disciplinary order issued
24    by the Department.
25        (38) Paying or failing to disclose compensation in
26    violation of Article 10 of this Act.

 

 

10000HB3528ham001- 40 -LRB100 11358 SMS 24898 a

1        (39) Requiring a party to a transaction who is not a
2    client of the licensee to allow the licensee to retain a
3    portion of the escrow moneys for payment of the licensee's
4    commission or expenses as a condition for release of the
5    escrow moneys to that party.
6        (40) Disregarding or violating any provision of this
7    Act or the published rules promulgated by the Department to
8    enforce this Act or aiding or abetting any individual,
9    partnership, registered limited liability partnership,
10    limited liability company, or corporation in disregarding
11    any provision of this Act or the published rules
12    promulgated by the Department to enforce this Act.
13        (41) Failing to provide the minimum services required
14    by Section 15-75 of this Act when acting under an exclusive
15    brokerage agreement.
16        (42) Habitual or excessive use or addiction to alcohol,
17    narcotics, stimulants, or any other chemical agent or drug
18    that results in a managing broker, broker, or leasing
19    agent's inability to practice with reasonable skill or
20    safety.
21        (43) Enabling, aiding, or abetting an auctioneer, as
22    defined in the Auction License Act, to conduct a real
23    estate auction in a manner that is in violation of this
24    Act.
25        (44) Permitting any leasing agent or temporary leasing
26    agent permit holder to engage in activities that require a

 

 

10000HB3528ham001- 41 -LRB100 11358 SMS 24898 a

1    broker's or managing broker's license.
2    (b) The Department may refuse to issue or renew or may
3suspend the license of any person who fails to file a return,
4pay the tax, penalty or interest shown in a filed return, or
5pay any final assessment of tax, penalty, or interest, as
6required by any tax Act administered by the Department of
7Revenue, until such time as the requirements of that tax Act
8are satisfied in accordance with subsection (g) of Section
92105-15 of the Civil Administrative Code of Illinois.
10    (c) The Department shall deny a license or renewal
11authorized by this Act to a person who has defaulted on an
12educational loan or scholarship provided or guaranteed by the
13Illinois Student Assistance Commission or any governmental
14agency of this State in accordance with item (5) of subsection
15(a) of Section 2105-15 of the Civil Administrative Code of
16Illinois.
17    (d) In cases where the Department of Healthcare and Family
18Services (formerly Department of Public Aid) has previously
19determined that a licensee or a potential licensee is more than
2030 days delinquent in the payment of child support and has
21subsequently certified the delinquency to the Department may
22refuse to issue or renew or may revoke or suspend that person's
23license or may take other disciplinary action against that
24person based solely upon the certification of delinquency made
25by the Department of Healthcare and Family Services in
26accordance with item (5) of subsection (a) of Section 2105-15

 

 

10000HB3528ham001- 42 -LRB100 11358 SMS 24898 a

1of the Civil Administrative Code of Illinois.
2    (e) In enforcing this Section, the Department or Board upon
3a showing of a possible violation may compel an individual
4licensed to practice under this Act, or who has applied for
5licensure under this Act, to submit to a mental or physical
6examination, or both, as required by and at the expense of the
7Department. The Department or Board may order the examining
8physician to present testimony concerning the mental or
9physical examination of the licensee or applicant. No
10information shall be excluded by reason of any common law or
11statutory privilege relating to communications between the
12licensee or applicant and the examining physician. The
13examining physicians shall be specifically designated by the
14Board or Department. The individual to be examined may have, at
15his or her own expense, another physician of his or her choice
16present during all aspects of this examination. Failure of an
17individual to submit to a mental or physical examination, when
18directed, shall be grounds for suspension of his or her license
19until the individual submits to the examination if the
20Department finds, after notice and hearing, that the refusal to
21submit to the examination was without reasonable cause.
22    If the Department or Board finds an individual unable to
23practice because of the reasons set forth in this Section, the
24Department or Board may require that individual to submit to
25care, counseling, or treatment by physicians approved or
26designated by the Department or Board, as a condition, term, or

 

 

10000HB3528ham001- 43 -LRB100 11358 SMS 24898 a

1restriction for continued, reinstated, or renewed licensure to
2practice; or, in lieu of care, counseling, or treatment, the
3Department may file, or the Board may recommend to the
4Department to file, a complaint to immediately suspend, revoke,
5or otherwise discipline the license of the individual. An
6individual whose license was granted, continued, reinstated,
7renewed, disciplined or supervised subject to such terms,
8conditions, or restrictions, and who fails to comply with such
9terms, conditions, or restrictions, shall be referred to the
10Secretary for a determination as to whether the individual
11shall have his or her license suspended immediately, pending a
12hearing by the Department.
13    In instances in which the Secretary immediately suspends a
14person's license under this Section, a hearing on that person's
15license must be convened by the Department within 30 days after
16the suspension and completed without appreciable delay. The
17Department and Board shall have the authority to review the
18subject individual's record of treatment and counseling
19regarding the impairment to the extent permitted by applicable
20federal statutes and regulations safeguarding the
21confidentiality of medical records.
22    An individual licensed under this Act and affected under
23this Section shall be afforded an opportunity to demonstrate to
24the Department or Board that he or she can resume practice in
25compliance with acceptable and prevailing standards under the
26provisions of his or her license.

 

 

10000HB3528ham001- 44 -LRB100 11358 SMS 24898 a

1(Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14;
299-227, eff. 8-3-15.)
 
3    (225 ILCS 454/20-60)
4    (Section scheduled to be repealed on January 1, 2020)
5    Sec. 20-60. Investigations notice and hearing. The
6Department may investigate the actions of any applicant or of
7any person or persons rendering or offering to render services
8or any person holding or claiming to hold a license under this
9Act and may notify his or her managing broker and sponsoring
10broker of the pending investigation. The Department shall,
11before revoking, suspending, placing on probation,
12reprimanding, or taking any other disciplinary action under
13Article 20 of this Act, at least 30 days before the date set
14for the hearing, (i) notify the accused and his or her managing
15broker and sponsoring broker in writing of the charges made and
16the time and place for the hearing on the charges, (ii) direct
17the accused him or her to file a written answer to the charges
18with the Board under oath within 20 days after the service on
19him or her of the notice, and (iii) inform the accused that if
20he or she fails to answer, default will be taken against him or
21her or that his or her license may be suspended, revoked,
22placed on probationary status, or other disciplinary action
23taken with regard to the license, including limiting the scope,
24nature, or extent of his or her practice, as the Department may
25consider proper. At the time and place fixed in the notice, the

 

 

10000HB3528ham001- 45 -LRB100 11358 SMS 24898 a

1Board shall proceed to hear the charges and the parties or
2their counsel shall be accorded ample opportunity to present
3any pertinent statements, testimony, evidence, and arguments.
4The Board may continue the hearing from time to time. In case
5the person, after receiving the notice, fails to file an
6answer, his or her license may, in the discretion of the
7Department, be suspended, revoked, placed on probationary
8status, or the Department may take whatever disciplinary action
9considered proper, including limiting the scope, nature, or
10extent of the person's practice or the imposition of a fine,
11without a hearing, if the act or acts charged constitute
12sufficient grounds for that action under this Act. The written
13notice may be served by personal delivery or by certified mail
14to the address specified by the accused in his or her last
15notification with the Department and shall include notice to
16the managing broker and sponsoring broker. A copy of the
17Department's final order shall be delivered to the managing
18broker and sponsoring broker.
19(Source: P.A. 96-856, eff. 12-31-09.)
 
20    (225 ILCS 454/25-10)
21    (Section scheduled to be repealed on January 1, 2020)
22    Sec. 25-10. Real Estate Administration and Disciplinary
23Board; duties. There is created the Real Estate Administration
24and Disciplinary Board. The Board shall be composed of 15 9
25persons appointed by the Governor. Members shall be appointed

 

 

10000HB3528ham001- 46 -LRB100 11358 SMS 24898 a

1to the Board subject to the following conditions:
2        (1) All members shall have been residents and citizens
3    of this State for at least 6 years prior to the date of
4    appointment.
5        (2) Twelve Six members shall have been actively engaged
6    as managing brokers or brokers or both for at least the 10
7    years prior to the appointment, 2 of whom must possess an
8    active pre-license instructor license.
9        (3) Three members of the Board shall be public members
10    who represent consumer interests.
11    None of these members shall be (i) a person who is licensed
12under this Act or a similar Act of another jurisdiction, (ii)
13the spouse or family member of a licensee, (iii) a person who
14has an ownership interest in a real estate brokerage business,
15or (iv) a person the Department determines to have any other
16connection with a real estate brokerage business or a licensee.
17    The members' terms shall be 4 years or until their
18successor is appointed, and the expiration of their terms shall
19be staggered. No member shall be reappointed to the Board for a
20term that would cause his or her cumulative service to the
21Board to exceed 12 years. Appointments to fill vacancies shall
22be for the unexpired portion of the term. Those members of the
23Board that satisfy the requirements of paragraph (2) shall be
24chosen in a manner such that no area of the State shall be
25unreasonably represented. The membership of the Board should
26reasonably reflect the geographic distribution of the licensee

 

 

10000HB3528ham001- 47 -LRB100 11358 SMS 24898 a

1population in this State. In making the appointments, the
2Governor shall give due consideration to the recommendations by
3members and organizations of the profession. The Governor may
4terminate the appointment of any member for cause that in the
5opinion of the Governor reasonably justifies the termination.
6Cause for termination shall include without limitation
7misconduct, incapacity, neglect of duty, or missing 4 board
8meetings during any one calendar year. Each member of the Board
9may receive a per diem stipend in an amount to be determined by
10the Secretary. Each member shall be paid his or her necessary
11expenses while engaged in the performance of his or her duties.
12Such compensation and expenses shall be paid out of the Real
13Estate License Administration Fund. The Secretary shall
14consider the recommendations of the Board on questions
15involving standards of professional conduct, discipline,
16education, and policies and procedures and examination of
17candidates under this Act. With regard to this subject matter,
18the Secretary may establish temporary or permanent committees
19of the Board and may consider the recommendations of the Board
20on matters that include, but are not limited to, criteria for
21the licensing and renewal of education providers, pre-license
22and continuing education instructors, pre-license and
23continuing education curricula, standards of educational
24criteria, and qualifications for licensure and renewal of
25professions, courses, and instructors. The Department, after
26notifying and considering the recommendations of the Board, if

 

 

10000HB3528ham001- 48 -LRB100 11358 SMS 24898 a

1any, may issue rules, consistent with the provisions of this
2Act, for the administration and enforcement thereof and may
3prescribe forms that shall be used in connection therewith.
4Eight Five Board members shall constitute a quorum. A quorum is
5required for all Board decisions.
6(Source: P.A. 98-1109, eff. 1-1-15; 99-227, eff. 8-3-15.)
 
7    (225 ILCS 454/Art. 30 heading)
8
ARTICLE 30. EDUCATION PROVIDERS AND COURSES SCHOOLS AND
9
INSTRUCTORS

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

 

 

10000HB3528ham001- 49 -LRB100 11358 SMS 24898 a

1application as prescribed by rule, every application for an
2original or renewed license shall include the applicant's
3Social Security number or tax identification number. No person
4shall operate a pre-license school or school branch without
5possessing a valid pre-license school or school branch license
6issued by the Department. No person shall act as a pre-license
7instructor at a pre-license school or school branch without
8possessing a valid pre-license instructor license issued by the
9Department. Every person who desires to obtain a pre-license
10school, school branch, or pre-license instructor license shall
11make application to the Department in writing in form and
12substance satisfactory to the Department and pay the required
13fees prescribed by rule. In addition to any other information
14required to be contained in the application, every application
15for an original license shall include the applicant's Social
16Security number, which shall be retained in the agency's
17records pertaining to the license. As soon as practical, the
18Department shall assign a customer's identification number to
19each applicant for a license.
20    Every application for a renewal or restored license shall
21require the applicant's customer identification number.
22    The Department shall issue a pre-license school, school
23branch, or pre-license instructor license to applicants who
24meet qualification criteria established by rule. The
25Department may refuse to issue, suspend, revoke, or otherwise
26discipline a pre-license school, school branch, or pre-license

 

 

10000HB3528ham001- 50 -LRB100 11358 SMS 24898 a

1instructor license or may withdraw approval of a course offered
2by a pre-license school for good cause. Disciplinary
3proceedings shall be conducted by the Board in the same manner
4as other disciplinary proceedings under this Act.
5    (b) (Blank). All pre-license instructors must teach at
6least one course within the period of licensure or take an
7instructor training program approved by the Department in lieu
8thereof. A pre-license instructor may teach at more than one
9licensed pre-license school.
10    (c) (Blank). The term of license for pre-license schools,
11branches, and instructors shall be 2 years as established by
12rule.
13    (d) (Blank). The Department or the Advisory Council may,
14after notice, cause a pre-license school to attend an informal
15conference before the Advisory Council for failure to comply
16with any requirement for licensure or for failure to comply
17with any provision of this Act or the rules for the
18administration of this Act. The Advisory Council shall make a
19recommendation to the Board as a result of its findings at the
20conclusion of any such informal conference.
21    (e) (Blank). For purposes of this Section, the term
22"pre-license" shall also include the 30-hour post-license
23course required to be taken to retain a broker's license.
24    (f) To qualify for an education provider license, an
25applicant must demonstrate the following:
26        (1) a sound financial base for establishing,

 

 

10000HB3528ham001- 51 -LRB100 11358 SMS 24898 a

1    promoting, and delivering the necessary courses; budget
2    planning for the school's courses should be clearly
3    projected;
4        (2) a sufficient number of qualified, licensed
5    instructors as provided by rule;
6        (3) adequate support personnel to assist with
7    administrative matters and technical assistance;
8        (4) maintenance and availability of records of
9    participation for licensees;
10        (5) the ability to provide each participant who
11    successfully completes an approved program with a
12    certificate of completion signed by the administrator of a
13    licensed education provider on forms provided by the
14    Department;
15        (6) a written policy dealing with procedures for the
16    management of grievances and fee refunds;
17        (7) lesson plans and examinations, if applicable, for
18    each course;
19        (8) a 75% passing grade for successful completion of
20    any continuing education course or pre-license or
21    post-license examination, if required;
22        (9) the ability to identify and use instructors who
23    will teach in a planned program; instructor selections must
24    demonstrate:
25            (A) appropriate credentials;
26            (B) competence as a teacher;

 

 

10000HB3528ham001- 52 -LRB100 11358 SMS 24898 a

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

 

 

10000HB3528ham001- 53 -LRB100 11358 SMS 24898 a

1Department as a result of its findings at the conclusion of any
2such informal conference.
3    (i) All education providers shall maintain these minimum
4criteria and pay the required fee in order to retain their
5education provider license.
6    (j) The Department may adopt any administrative rule
7consistent with the language and intent of this Act that may be
8necessary for the implementation and enforcement of this
9Section.
10(Source: P.A. 96-856, eff. 12-31-09; 97-400, eff. 1-1-12.)
 
11    (225 ILCS 454/30-15)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 30-15. Licensing of continuing education providers
14schools; approval of courses.
15    (a) (Blank). Only continuing education schools in
16possession of a valid continuing education school license may
17provide real estate continuing education courses that will
18satisfy the requirements of this Act. Pre-license schools
19licensed to offer pre-license education courses for brokers,
20managing brokers, or leasing agents shall qualify for a
21continuing education school license upon completion of an
22application and the submission of the required fee. Every
23entity that desires to obtain a continuing education school
24license shall make application to the Department in writing in
25forms prescribed by the Department and pay the fee prescribed

 

 

10000HB3528ham001- 54 -LRB100 11358 SMS 24898 a

1by rule. In addition to any other information required to be
2contained in the application, every application for an original
3or renewed license shall include the applicant's Social
4Security number.
5    (b) (Blank). The criteria for a continuing education
6license shall include the following:
7        (1) A sound financial base for establishing,
8    promoting, and delivering the necessary courses. Budget
9    planning for the School's courses should be clearly
10    projected.
11        (2) A sufficient number of qualified, licensed
12    instructors as provided by rule.
13        (3) Adequate support personnel to assist with
14    administrative matters and technical assistance.
15        (4) Maintenance and availability of records of
16    participation for licensees.
17        (5) The ability to provide each participant who
18    successfully completes an approved program with a
19    certificate of completion signed by the administrator of a
20    licensed continuing education school on forms provided by
21    the Department.
22        (6) The continuing education school must have a written
23    policy dealing with procedures for the management of
24    grievances and fee refunds.
25        (7) The continuing education school shall maintain
26    lesson plans and examinations for each course.

 

 

10000HB3528ham001- 55 -LRB100 11358 SMS 24898 a

1        (8) The continuing education school shall require a 70%
2    passing grade for successful completion of any continuing
3    education course.
4        (9) The continuing education school shall identify and
5    use instructors who will teach in a planned program.
6    Suggested criteria for instructor selections include:
7            (A) appropriate credentials;
8            (B) competence as a teacher;
9            (C) knowledge of content area; and
10            (D) qualification by experience.
11        (10) The continuing education school shall provide a
12    proctor or an electronic means of proctoring for each
13    examination. The continuing education school shall be
14    responsible for the conduct of the proctor. The duties and
15    responsibilities of a proctor shall be established by rule.
16        (11) The continuing education school must provide for
17    closed book examinations for each course unless the
18    Advisory Council excuses this requirement based on the
19    complexity of the course material.
20    (c) (Blank). Advertising and promotion of continuing
21education activities must be carried out in a responsible
22fashion, clearly showing the educational objectives of the
23activity, the nature of the audience that may benefit from the
24activity, the cost of the activity to the participant and the
25items covered by the cost, the amount of credit that can be
26earned, and the credentials of the faculty.

 

 

10000HB3528ham001- 56 -LRB100 11358 SMS 24898 a

1    (d) (Blank). The Department may or upon request of the
2Advisory Council shall, after notice, cause a continuing
3education school to attend an informal conference before the
4Advisory Council for failure to comply with any requirement for
5licensure or for failure to comply with any provision of this
6Act or the rules for the administration of this Act. The
7Advisory Council shall make a recommendation to the Board as a
8result of its findings at the conclusion of any such informal
9conference.
10    (e) (Blank). All continuing education schools shall
11maintain these minimum criteria and pay the required fee in
12order to retain their continuing education school license.
13    (f) All education providers continuing education schools
14shall submit, at the time of initial application and with each
15license renewal, a list of courses with course materials that
16comply with the course requirements in this Act to be offered
17by the education provider continuing education school. The
18Department may , however, shall establish an online a mechanism
19by which education providers whereby continuing education
20schools may submit apply for and obtain approval by the
21Department upon the recommendation of the Board or its designee
22pre-license, post-license, or continuing education for
23continuing education courses that are submitted after the time
24of the education provider's initial license application or
25renewal. The Department shall provide to each education
26provider continuing education school a certificate for each

 

 

10000HB3528ham001- 57 -LRB100 11358 SMS 24898 a

1approved pre-license, post-license, or continuing education
2course. All pre-license, post-license, or continuing education
3courses shall be valid for the period coinciding with the term
4of license of the education provider. However, in no case shall
5a course continue to be valid if it does not, at all times,
6meet all of the requirements of the core curriculum established
7by this Act and the Board, as modified from time to time in
8accordance with this Act continuing education school. All
9education providers continuing education schools shall provide
10a copy of the certificate of the pre-license, post-license, or
11continuing education course within the course materials given
12to each student or shall display a copy of the certificate of
13the pre-license, post-license, or continuing education course
14in a conspicuous place at the location of the class.
15    (g) Each education provider continuing education school
16shall provide to the Department a monthly report in a frequency
17and format determined by the Department, with information
18concerning students who successfully completed all approved
19pre-license, post-license, or continuing education courses
20offered by the continuing education provider school for the
21prior month.
22    (h) The Department, upon the recommendation of the Board
23Advisory Council, may temporarily suspend a licensed
24continuing education provider's school's approved courses
25without hearing and refuse to accept successful completion of
26or participation in any of these pre-license, post-license, or

 

 

10000HB3528ham001- 58 -LRB100 11358 SMS 24898 a

1continuing education courses for continuing education credit
2from that education provider school upon the failure of that
3continuing education provider school to comply with the
4provisions of this Act or the rules for the administration of
5this Act, until such time as the Department receives
6satisfactory assurance of compliance. The Department shall
7notify the continuing education provider school of the
8noncompliance and may initiate disciplinary proceedings
9pursuant to this Act. The Department may refuse to issue,
10suspend, revoke, or otherwise discipline the license of an a
11continuing education provider school or may withdraw approval
12of a pre-license, post-license, or continuing education course
13for good cause. Failure to comply with the requirements of this
14Section or any other requirements established by rule shall be
15deemed to be good cause. Disciplinary proceedings shall be
16conducted by the Board in the same manner as other disciplinary
17proceedings under this Act.
18    (i) Pre-license, post-license, and continuing education
19courses, whether submitted for approval at the time of an
20education provider's initial application for licensure or
21otherwise, must meet the following minimum course
22requirements:
23        (1) No continuing education course shall be required to
24    be taught in increments longer than 2 hours in duration;
25    however, for each 2 hours of course time in each course,
26    there shall be a minimum of 100 minutes of instruction.

 

 

10000HB3528ham001- 59 -LRB100 11358 SMS 24898 a

1        (2) All core curriculum courses shall be provided only
2    in the classroom or through a live, interactive webinar or
3    online distance education format.
4        (3) Courses provided through a live, interactive
5    webinar shall require all participants to demonstrate
6    their attendance in and attention to the course by
7    answering or responding to at least one polling question
8    per 30 minutes of course instruction. In no event shall the
9    interval between polling questions exceed 30 minutes.
10        (4) All participants in courses provided in an online
11    distance education format shall demonstrate proficiency
12    with the subject matter of the course through verifiable
13    responses to questions included in the course content.
14        (5) Credit for courses completed in a classroom or
15    through a live, interactive webinar or online distance
16    education format shall not require an examination.
17        (6) Credit for courses provided through
18    correspondence, or by home study, shall require the passage
19    of an in-person, proctored examination.
20    (j) The Department is authorized to engage a third party as
21the Board's designee to perform the functions specifically
22provided for in subsection (f) of this Section, namely that of
23administering the online system for receipt, review, and
24approval or denial of new courses.
25    (k) The Department may adopt any administrative rule
26consistent with the language and intent of this Act that may be

 

 

10000HB3528ham001- 60 -LRB100 11358 SMS 24898 a

1necessary for the implementation and enforcement of this
2Section.
3(Source: P.A. 99-227, eff. 8-3-15.)
 
4    (225 ILCS 454/30-20)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 30-20. Fees for continuing education provider school
7license; renewal; term. All applications for an a continuing
8education provider school license shall be accompanied by a
9nonrefundable application fee in an amount established by rule.
10All continuing education providers schools shall be required to
11submit a renewal application, the required fee as established
12by rule, and a listing of the courses to be offered during the
13year in order to renew their continuing education provider
14school licenses. The term for an a continuing education
15provider school license shall be 2 years and as established by
16rule. The fees collected under this Article 30 shall be
17deposited in the Real Estate License Administration Fund and
18shall be used to defray the cost of administration of the
19program and per diem of the Board Advisory Council as
20determined by the Secretary.
21(Source: P.A. 96-856, eff. 12-31-09.)
 
22    (225 ILCS 454/30-25)
23    (Section scheduled to be repealed on January 1, 2020)
24    Sec. 30-25. Licensing of continuing education provider

 

 

10000HB3528ham001- 61 -LRB100 11358 SMS 24898 a

1instructors.
2    (a) No such person shall act as either a pre-license or
3continuing education instructor at a continuing education
4school or branch without possessing a valid pre-license or
5continuing education instructor license and satisfying any
6other qualification criteria established by the Department by
7rule.
8    (a-5) Each person that is an instructor for pre-license,
9continuing education core curriculum, or broker management
10education courses shall meet specific criteria established by
11the Department by rule. Those persons who have not met the
12criteria shall only teach continuing education elective
13curriculum courses.
14    (b) Every After the effective date of this Act, every
15person who desires to obtain an a continuing education provider
16instructor's license shall attend and successfully complete a
17one-day instructor development workshop, as approved by the
18Department. However, pre-license instructors who have complied
19with subsection (b) of this Section 30-25 shall not be required
20to complete the instructor workshop in order to teach
21continuing education elective curriculum courses.
22    (b-5) The term of licensure for a pre-license or continuing
23education instructor shall be 2 years and as established by
24rule. Every person who desires to obtain a pre-license or
25continuing education instructor license shall make application
26to the Department in writing on forms prescribed by the

 

 

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1Department Office, accompanied by the fee prescribed by rule.
2In addition to any other information required to be contained
3in the application, every application for an original license
4shall include the applicant's Social Security number, which
5shall be retained in the agency's records pertaining to the
6license. As soon as practical, the Department shall assign a
7customer's identification number to each applicant for a
8license.
9    Every application for a renewal or restored license shall
10require the applicant's customer identification number.
11    The Department shall issue a pre-license or continuing
12education instructor license to applicants who meet
13qualification criteria established by this Act or rule.
14    (c) The Department may refuse to issue, suspend, revoke, or
15otherwise discipline a pre-license or continuing education
16instructor for good cause. Disciplinary proceedings shall be
17conducted by the Board in the same manner as other disciplinary
18proceedings under this Act. All pre-license instructors must
19teach at least one pre-license or continuing education core
20curriculum course within the period of licensure as a
21requirement for renewal of the instructor's license. All
22continuing education instructors must teach at least one course
23within the period of licensure or take an instructor training
24program approved by the Department in lieu thereof as a
25requirement for renewal of the instructor's license.
26    (d) Each course transcript submitted by an education

 

 

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1provider to the Department shall include the name and license
2number of the pre-license or continuing education instructor
3for the course.
4    (e) Licensed education provider instructors may teach for
5more than one licensed education provider.
6    (f) The Department may adopt any administrative rule
7consistent with the language and intent of this Act that may be
8necessary for the implementation and enforcement of this
9Section.
10(Source: P.A. 96-856, eff. 12-31-09; 97-400, eff. 1-1-12.)
 
11    (225 ILCS 454/5-26 rep.)
12    (225 ILCS 454/5-85 rep.)
13    (225 ILCS 454/20-78 rep.)
14    (225 ILCS 454/30-10 rep.)
15    Section 10. The Real Estate License Act of 2000 is amended
16by repealing Sections 5-26, 5-85, 20-78, and 30-10.
 
17    Section 99. Effective date. This Act takes effect January
181, 2018.".