100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5140

 

Introduced , by Rep. Sara Wojcicki Jimenez

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Real Estate Appraiser Licensing Act of 2002 and Appraisal Management Company Registration Act. Provides that the Secretary of Financial and Professional Regulation may require participation in a third-party, multi-state licensing system for the licensing of certified general real estate appraisers, certified residential real estate appraisers, associate real estate trainee appraisers, and real estate appraisal education providers; and registration of appraisal management companies. Makes corresponding changes in both Acts. Provides that the multi-state licensing system may share regulatory information and maintain records in compliance with the provisions of the Acts. Provides that the multi-state licensing system may charge an applicant an administration fee that shall be paid directly to the system. Defines "multi-state licensing system". In provisions of the Real Estate Appraiser Licensing Act of 2002 concerning criminal history record checks, provides that the Secretary may designate a multi-state licensing system to perform the checks. Effective immediately.


LRB100 16090 SMS 31209 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5140LRB100 16090 SMS 31209 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Real Estate Appraiser Licensing Act of 2002
5is amended by changing Sections 1-10, 5-10, 5-15, 5-20, 5-22,
65-25, 5-55, 20-5, and 20-10 and by adding Section 5-7 as
7follows:
 
8    (225 ILCS 458/1-10)
9    (Section scheduled to be repealed on January 1, 2022)
10    Sec. 1-10. Definitions. As used in this Act, unless the
11context otherwise requires:
12    "Accredited college or university, junior college, or
13community college" means a college or university, junior
14college, or community college that is approved or accredited by
15the Board of Higher Education, a regional or national
16accreditation association, or by an accrediting agency that is
17recognized by the U.S. Secretary of Education.
18    "Address of record" means the designated address recorded
19by the Department in the applicant's or licensee's application
20file or license file as maintained by the Department's
21licensure maintenance unit. It is the duty of the applicant or
22licensee to inform the Department of any change of address and
23those changes must be made either through the Department's

 

 

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1website or by contacting the Department.
2    "Applicant" means person who applies to the Department for
3a license under this Act.
4    "Appraisal" means (noun) the act or process of developing
5an opinion of value; an opinion of value (adjective) of or
6pertaining to appraising and related functions, such as
7appraisal practice or appraisal services.
8    "Appraisal assignment" means a valuation service provided
9as a consequence of an agreement between an appraiser and a
10client.
11    "Appraisal consulting" means the act or process of
12developing an analysis, recommendation, or opinion to solve a
13problem, where an opinion of value is a component of the
14analysis leading to the assignment results.
15    "Appraisal firm" means an appraisal entity that is 100%
16owned and controlled by a person or persons licensed in
17Illinois as a certified general real estate appraiser or a
18certified residential real estate appraiser. "Appraisal firm"
19does not include an appraisal management company.
20    "Appraisal management company" means any corporation,
21limited liability company, partnership, sole proprietorship,
22subsidiary, unit, or other business entity that directly or
23indirectly performs the following appraisal management
24services: (1) administers networks of independent contractors
25or employee appraisers to perform real estate appraisal
26assignments for clients; (2) receives requests for real estate

 

 

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1appraisal services from clients and, for a fee paid by the
2client, enters into an agreement with one or more independent
3appraisers to perform the real estate appraisal services
4contained in the request; or (3) otherwise serves as a
5third-party broker of appraisal management services between
6clients and appraisers. "Appraisal management company" does
7not include an appraisal firm.
8    "Appraisal practice" means valuation services performed by
9an individual acting as an appraiser, including, but not
10limited to, appraisal, appraisal review, or appraisal
11consulting.
12    "Appraisal report" means any communication, written or
13oral, of an appraisal or appraisal review that is transmitted
14to a client upon completion of an assignment.
15    "Appraisal review" means the act or process of developing
16and communicating an opinion about the quality of another
17appraiser's work that was performed as part of an appraisal,
18appraisal review, or appraisal assignment.
19    "Appraisal Subcommittee" means the Appraisal Subcommittee
20of the Federal Financial Institutions Examination Council as
21established by Title XI.
22    "Appraiser" means a person who performs real estate or real
23property appraisals.
24    "AQB" means the Appraisal Qualifications Board of the
25Appraisal Foundation.
26    "Associate real estate trainee appraiser" means an

 

 

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1entry-level appraiser who holds a license of this
2classification under this Act with restrictions as to the scope
3of practice in accordance with this Act.
4    "Board" means the Real Estate Appraisal Administration and
5Disciplinary Board.
6    "Broker price opinion" means an estimate or analysis of the
7probable selling price of a particular interest in real estate,
8which may provide a varying level of detail about the
9property's condition, market, and neighborhood and information
10on comparable sales. The activities of a real estate broker or
11managing broker engaging in the ordinary course of business as
12a broker, as defined in this Section, shall not be considered a
13broker price opinion if no compensation is paid to the broker
14or managing broker, other than compensation based upon the sale
15or rental of real estate.
16    "Classroom hour" means 50 minutes of instruction out of
17each 60 minute segment of coursework.
18    "Client" means the party or parties who engage an appraiser
19by employment or contract in a specific appraisal assignment.
20    "Comparative market analysis" is an analysis or opinion
21regarding pricing, marketing, or financial aspects relating to
22a specified interest or interests in real estate that may be
23based upon an analysis of comparative market data, the
24expertise of the real estate broker or managing broker, and
25such other factors as the broker or managing broker may deem
26appropriate in developing or preparing such analysis or

 

 

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1opinion. The activities of a real estate broker or managing
2broker engaging in the ordinary course of business as a broker,
3as defined in this Section, shall not be considered a
4comparative market analysis if no compensation is paid to the
5broker or managing broker, other than compensation based upon
6the sale or rental of real estate.
7    "Coordinator" means the Coordinator of Real Estate
8Appraisal of the Division of Professional Regulation of the
9Department of Financial and Professional Regulation.
10    "Department" means the Department of Financial and
11Professional Regulation.
12    "Federal financial institutions regulatory agencies" means
13the Board of Governors of the Federal Reserve System, the
14Federal Deposit Insurance Corporation, the Office of the
15Comptroller of the Currency, the Consumer Financial Protection
16Bureau, and the National Credit Union Administration.
17    "Federally related transaction" means any real
18estate-related financial transaction in which a federal
19financial institutions regulatory agency engages in, contracts
20for, or regulates and requires the services of an appraiser.
21    "Financial institution" means any bank, savings bank,
22savings and loan association, credit union, mortgage broker,
23mortgage banker, licensee under the Consumer Installment Loan
24Act or the Sales Finance Agency Act, or a corporate fiduciary,
25subsidiary, affiliate, parent company, or holding company of
26any such licensee, or any institution involved in real estate

 

 

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1financing that is regulated by state or federal law.
2    "Multi-state licensing system" means a web-based platform
3that allows an applicant to submit his or her application or
4license renewal application to the Department online.
5    "Person" means an individual, entity, sole proprietorship,
6corporation, limited liability company, partnership, and joint
7venture, foreign or domestic, except that when the context
8otherwise requires, the term may refer to more than one
9individual or other described entity.
10    "Real estate" means an identified parcel or tract of land,
11including any improvements.
12    "Real estate related financial transaction" means any
13transaction involving:
14        (1) the sale, lease, purchase, investment in, or
15    exchange of real property, including interests in property
16    or the financing thereof;
17        (2) the refinancing of real property or interests in
18    real property; and
19        (3) the use of real property or interest in property as
20    security for a loan or investment, including mortgage
21    backed securities.
22    "Real property" means the interests, benefits, and rights
23inherent in the ownership of real estate.
24    "Secretary" means the Secretary of Financial and
25Professional Regulation.
26    "State certified general real estate appraiser" means an

 

 

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1appraiser who holds a license of this classification under this
2Act and such classification applies to the appraisal of all
3types of real property without restrictions as to the scope of
4practice.
5    "State certified residential real estate appraiser" means
6an appraiser who holds a license of this classification under
7this Act and such classification applies to the appraisal of
8one to 4 units of residential real property without regard to
9transaction value or complexity, but with restrictions as to
10the scope of practice in a federally related transaction in
11accordance with Title XI, the provisions of USPAP, criteria
12established by the AQB, and further defined by rule.
13    "Supervising appraiser" means either (i) an appraiser who
14holds a valid license under this Act as either a State
15certified general real estate appraiser or a State certified
16residential real estate appraiser, who co-signs an appraisal
17report for an associate real estate trainee appraiser or (ii) a
18State certified general real estate appraiser who holds a valid
19license under this Act who co-signs an appraisal report for a
20State certified residential real estate appraiser on
21properties other than one to 4 units of residential real
22property without regard to transaction value or complexity.
23    "Title XI" means Title XI of the federal Financial
24Institutions Reform, Recovery and Enforcement Act of 1989.
25    "USPAP" means the Uniform Standards of Professional
26Appraisal Practice as promulgated by the Appraisal Standards

 

 

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1Board pursuant to Title XI and by rule.
2    "Valuation services" means services pertaining to aspects
3of property value.
4(Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15.)
 
5    (225 ILCS 458/5-7 new)
6    Sec. 5-7. Multi-state licensing system. The Secretary may
7require participation in a third-party, multi-state licensing
8system for licensing under this Act. The multi-state licensing
9system may share regulatory information and maintain records in
10compliance with the provisions of this Act. The multi-state
11licensing system may charge an applicant an administration fee.
 
12    (225 ILCS 458/5-10)
13    (Section scheduled to be repealed on January 1, 2022)
14    Sec. 5-10. Application for State certified general real
15estate appraiser.
16    (a) Every person who desires to obtain a State certified
17general real estate appraiser license shall:
18        (1) apply to the Department on forms provided by the
19    Department, or through a multi-state licensing system as
20    designated by the Secretary, accompanied by the required
21    fee;
22        (2) be at least 18 years of age;
23        (3) (blank);
24        (4) personally take and pass an examination authorized

 

 

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1    by the Department and endorsed by the AQB;
2        (5) prior to taking the examination, provide evidence
3    to the Department, or through a multi-state licensing
4    system as designated by the Secretary, in Modular Course
5    format, with each module conforming to the Required Core
6    Curriculum established and adopted by the AQB, that he or
7    she has successfully completed the prerequisite classroom
8    hours of instruction in appraising as established by the
9    AQB and by rule; and
10        (6) prior to taking the examination, provide evidence
11    to the Department, or through a multi-state licensing
12    system as designated by the Secretary, that he or she has
13    successfully completed the prerequisite experience and
14    educational requirements in appraising as established by
15    AQB and by rule.
16    (b) Applicants must provide evidence to the Department, or
17through a multi-state licensing system as designated by the
18Secretary, of holding a Bachelor's degree or higher from an
19accredited college or university.
20(Source: P.A. 98-1109, eff. 1-1-15.)
 
21    (225 ILCS 458/5-15)
22    (Section scheduled to be repealed on January 1, 2022)
23    Sec. 5-15. Application for State certified residential
24real estate appraiser. Every person who desires to obtain a
25State certified residential real estate appraiser license

 

 

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1shall:
2        (1) apply to the Department on forms provided by the
3    Department, or through a multi-state licensing system as
4    designated by the Secretary, accompanied by the required
5    fee;
6        (2) be at least 18 years of age;
7        (3) (blank);
8        (4) personally take and pass an examination authorized
9    by the Department and endorsed by the AQB;
10        (5) prior to taking the examination, provide evidence
11    to the Department, or through a multi-state licensing
12    system as designated by the Secretary, in Modular Course
13    format, with each module conforming to the Required Core
14    Curriculum established and adopted by the AQB, that he or
15    she has successfully completed the prerequisite classroom
16    hours of instruction in appraising as established by the
17    AQB and by rule; and
18        (6) prior to taking the examination, provide evidence
19    to the Department, or through a multi-state licensing
20    system as designated by the Secretary, that he or she has
21    successfully completed the prerequisite experience and
22    educational requirements as established by AQB and by rule.
23(Source: P.A. 100-201, eff. 8-18-17.)
 
24    (225 ILCS 458/5-20)
25    (Section scheduled to be repealed on January 1, 2022)

 

 

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1    Sec. 5-20. Application for associate real estate trainee
2appraiser. Every person who desires to obtain an associate real
3estate trainee appraiser license shall:
4        (1) apply to the Department on forms provided by the
5    Department, or through a multi-state licensing system as
6    designated by the Secretary, accompanied by the required
7    fee;
8        (2) be at least 18 years of age;
9        (3) provide evidence of having attained a high school
10    diploma or completed an equivalent course of study as
11    determined by an examination conducted or accepted by the
12    Illinois State Board of Education;
13        (4) personally take and pass an examination authorized
14    by the Department; and
15        (5) prior to taking the examination, provide evidence
16    to the Department, or through a multi-state licensing
17    system as designated by the Secretary, that he or she has
18    successfully completed the prerequisite qualifying and any
19    conditional education requirements as established by rule.
20(Source: P.A. 98-1109, eff. 1-1-15.)
 
21    (225 ILCS 458/5-22)
22    (Section scheduled to be repealed on January 1, 2022)
23    Sec. 5-22. Criminal history records check.
24    (a) Each applicant for licensure by examination or
25restoration shall have his or her fingerprints submitted to the

 

 

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1Department of State Police in an electronic format that
2complies with the form and manner for requesting and furnishing
3criminal history record information as prescribed by the
4Department of State Police. These fingerprints shall be checked
5against the Department of State Police and Federal Bureau of
6Investigation criminal history record databases now and
7hereafter filed. The Department of State Police shall charge
8applicants a fee for conducting the criminal history records
9check, which shall be deposited into the State Police Services
10Fund and shall not exceed the actual cost of the records check.
11The Department of State Police shall furnish, pursuant to
12positive identification, records of Illinois convictions to
13the Department. The Department may require applicants to pay a
14separate fingerprinting fee, either to the Department or to a
15vendor. The Department may adopt any rules necessary to
16implement this Section.
17    (b) The Secretary may designate a multi-state licensing
18system to perform the functions described in subsection (a).
19The Department may require applicants to pay a separate
20fingerprinting fee, either to the Department or to the
21multi-state licensing system. The Department may adopt any
22rules necessary to implement this subsection.
23(Source: P.A. 98-1109, eff. 1-1-15.)
 
24    (225 ILCS 458/5-25)
25    (Section scheduled to be repealed on January 1, 2022)

 

 

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1    Sec. 5-25. Renewal of license.
2    (a) The expiration date and renewal period for a State
3certified general real estate appraiser license or a State
4certified residential real estate appraiser license issued
5under this Act shall be set by rule. Except as otherwise
6provided in subsections (b) and (f) of this Section, the holder
7of a license may renew the license within 90 days preceding the
8expiration date by:
9        (1) completing and submitting to the Department, or
10    through a multi-state licensing system as designated by the
11    Secretary, a renewal application form as provided by the
12    Department;
13        (2) paying the required fees; and
14        (3) providing evidence to the Department, or through a
15    multi-state licensing system as designated by the
16    Secretary, of successful completion of the continuing
17    education requirements through courses approved by the
18    Department from education providers licensed by the
19    Department, as established by the AQB and by rule.
20    (b) A State certified general real estate appraiser or
21State certified residential real estate appraiser whose
22license under this Act has expired may renew the license for a
23period of 2 years following the expiration date by complying
24with the requirements of paragraphs (1), (2), and (3) of
25subsection (a) of this Section and paying any late penalties
26established by rule.

 

 

HB5140- 14 -LRB100 16090 SMS 31209 b

1    (c) (Blank).
2    (d) The expiration date and renewal period for an associate
3real estate trainee appraiser license issued under this Act
4shall be set by rule. Except as otherwise provided in
5subsections (e) and (f) of this Section, the holder of an
6associate real estate appraiser license may renew the license
7within 90 days preceding the expiration date by:
8        (1) completing and submitting to the Department, or
9    through a multi-state licensing system as designated by the
10    Secretary, a renewal application form as provided by the
11    Department;
12        (2) paying the required fees; and
13        (3) providing evidence to the Department, or through a
14    multi-state licensing system as designated by the
15    Secretary, of successful completion of the continuing
16    education requirements through courses approved by the
17    Department from education providers approved by the
18    Department, as established by rule.
19    (e) Any associate real estate appraiser trainee whose
20license under this Act has expired may renew the license for a
21period of 2 years following the expiration date by complying
22with the requirements of paragraphs (1), (2), and (3) of
23subsection (d) of this Section and paying any late penalties as
24established by rule. An associate real estate trainee appraiser
25license may not be renewed more than 2 times.
26    (f) Notwithstanding subsections (c) and (e), an appraiser

 

 

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1whose license under this Act has expired may renew or convert
2the license without paying any lapsed renewal fees or late
3penalties if the license expired while the appraiser was:
4        (1) on active duty with the United States Armed
5    Services;
6        (2) serving as the Coordinator of Real Estate Appraisal
7    or an employee of the Department who was required to
8    surrender his or her license during the term of employment.
9    Application for renewal must be made within 2 years
10following the termination of the military service or related
11education, training, or employment. The licensee shall furnish
12the Department with an affidavit that he or she was so engaged.
13    (g) The Department shall provide reasonable care and due
14diligence to ensure that each licensee under this Act is
15provided with a renewal application at least 90 days prior to
16the expiration date, but each licensee is responsible to timely
17renew or convert his or her license prior to its expiration
18date.
19(Source: P.A. 96-844, eff. 12-23-09.)
 
20    (225 ILCS 458/5-55)
21    (Section scheduled to be repealed on January 1, 2022)
22    Sec. 5-55. Fees.
23    (a) The Department shall establish rules for fees to be
24paid by applicants and licensees to cover the reasonable costs
25of the Department in administering and enforcing the provisions

 

 

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1of this Act. The Department, with the advice of the Board, may
2also establish rules for general fees to cover the reasonable
3expenses of carrying out other functions and responsibilities
4under this Act.
5    (b) The administration fee charged by the multi-state
6licensing system shall be paid directly to the multi-state
7licensing system.
8(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
9    (225 ILCS 458/20-5)
10    (Section scheduled to be repealed on January 1, 2022)
11    Sec. 20-5. Education providers.
12    (a) Beginning July 1, 2002, only education providers
13licensed or otherwise approved by the Department may provide
14the qualifying and continuing education courses required for
15licensure under this Act.
16    (b) A person or entity seeking to be licensed as an
17education provider under this Act shall provide satisfactory
18evidence of the following:
19        (1) a sound financial base for establishing,
20    promoting, and delivering the necessary courses;
21        (2) a sufficient number of qualified instructors;
22        (3) adequate support personnel to assist with
23    administrative matters and technical assistance;
24        (4) a written policy dealing with procedures for
25    management of grievances and fee refunds;

 

 

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1        (5) a qualified administrator, who is responsible for
2    the administration of the education provider, courses, and
3    the actions of the instructors; and
4        (6) any other requirements as provided by rule.
5    (c) All applicants for an education provider's license
6shall make initial application to the Department on forms
7provided by the Department, or through a multi-state licensing
8system as designated by the Secretary, and pay the appropriate
9fee as provided by rule. The term, expiration date, and renewal
10of an education provider's license shall be established by
11rule.
12    (d) An education provider shall provide each successful
13course participant with a certificate of completion signed by
14the school administrator. The format and content of the
15certificate shall be specified by rule.
16    (e) All education providers shall provide to the Department
17a monthly roster of all successful course participants as
18provided by rule.
19(Source: P.A. 98-1109, eff. 1-1-15.)
 
20    (225 ILCS 458/20-10)
21    (Section scheduled to be repealed on January 1, 2022)
22    Sec. 20-10. Course approval.
23    (a) Only courses offered by licensed education providers
24and approved by the Department, courses approved by the AQB, or
25courses approved by jurisdictions regulated by the Appraisal

 

 

HB5140- 18 -LRB100 16090 SMS 31209 b

1Subcommittee shall be used to meet the requirements of this Act
2and rules.
3    (b) An education provider licensed under this Act may
4submit courses to the Department, or through a multi-state
5licensing system as designated by the Secretary, for approval.
6The criteria, requirements, and fees for courses shall be
7established by rule in accordance with this Act and the
8criteria established by the AQB.
9    (c) For each course approved, the Department shall issue a
10license to the education provider. The term, expiration date,
11and renewal of a course approval shall be established by rule.
12    (d) An education provider must use an instructor for each
13course approved by the Department who (i) holds a valid real
14estate appraisal license in good standing as a State certified
15general real estate appraiser or a State certified residential
16real estate appraiser in Illinois or any other jurisdiction
17monitored by the Appraisal Subcommittee, (ii) holds a valid
18teaching certificate issued by the State of Illinois, (iii) is
19a faculty member in good standing with an accredited college or
20university or community college, or (iv) is an approved
21appraisal instructor from an appraisal organization that is a
22member of the Appraisal Foundation.
23(Source: P.A. 98-1109, eff. 1-1-15.)
 
24    Section 10. The Appraisal Management Company Registration
25Act is amended by changing Sections 10, 35, 40, and 55 and by

 

 

HB5140- 19 -LRB100 16090 SMS 31209 b

1adding Section 32 as follows:
 
2    (225 ILCS 459/10)
3    Sec. 10. Definitions. In this Act:
4    "Address of record" means the designated address recorded
5by the Department in the applicant's or registrant's
6application file or registration file maintained by the
7Department's registration maintenance unit. It is the duty of
8the applicant or registrant to inform the Department of any
9change of address, and the changes must be made either through
10the Department's website or by contacting the Department's
11registration maintenance unit within a prescribed time period
12as defined by rule.
13    "Applicant" means a person or entity who applies to the
14Department for a registration under this Act.
15    "Appraisal" means (noun) the act or process of developing
16an opinion of value; an opinion of value (adjective) of or
17pertaining to appraising and related functions.
18    "Appraisal firm" means an appraisal entity that is 100%
19owned and controlled by a person or persons licensed in
20Illinois as a certified general real estate appraiser or a
21certified residential real estate appraiser. An appraisal firm
22does not include an appraisal management company.
23    "Appraisal management company" means any corporation,
24limited liability company, partnership, sole proprietorship,
25subsidiary, unit, or other business entity that directly or

 

 

HB5140- 20 -LRB100 16090 SMS 31209 b

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

 

 

HB5140- 21 -LRB100 16090 SMS 31209 b

1    to offer appraisal management services;
2        (2) an individual employed, appointed, or authorized
3    by an appraisal management company who has the authority
4    to:
5            (A) enter into a contractual relationship with a
6        client for the performance of an appraisal management
7        service or appraisal practice service; and
8            (B) enter into an agreement with an appraiser for
9        the performance of a real estate appraisal activity; or
10        (3) an individual who possesses, directly or
11    indirectly, the power to direct or cause the direction of
12    the management or policies of an appraisal management
13    company.
14    "Coordinator" means the Coordinator of the Appraisal
15Management Company Registration Unit of the Department or his
16or her designee.
17    "Department" means the Department of Financial and
18Professional Regulation.
19    "Entity" means a corporation, a limited liability company,
20partnership, a sole proprietorship, or other entity providing
21services or holding itself out to provide services as an
22appraisal management company or an appraisal management
23service.
24    "End-user client" means any person who utilizes or engages
25the services of an appraiser through an appraisal management
26company.

 

 

HB5140- 22 -LRB100 16090 SMS 31209 b

1    "Financial institution" means any bank, savings bank,
2savings and loan association, credit union, mortgage broker,
3mortgage banker, registrant under the Consumer Installment
4Loan Act or the Sales Finance Agency Act, or a corporate
5fiduciary, subsidiary, affiliate, parent company, or holding
6company of any registrant, or any institution involved in real
7estate financing that is regulated by State or federal law.
8    "Multi-state licensing system" means a web-based platform
9that allows an applicant to submit his or her application for
10original registration or registration renewal application to
11the Department online.
12    "Person" means individuals, entities, sole
13proprietorships, corporations, limited liability companies,
14and partnerships, foreign or domestic, except that when the
15context otherwise requires, the term may refer to a single
16individual or other described entity.
17    "Quality control review" means a review of an appraisal
18report for compliance and completeness, including grammatical,
19typographical, or other similar errors, unrelated to
20developing an opinion of value.
21    "Real estate" means an identified parcel or tract of land,
22including any improvements.
23    "Real estate related financial transaction" means any
24transaction involving:
25        (1) the sale, lease, purchase, investment in, or
26    exchange of real property, including interests in property

 

 

HB5140- 23 -LRB100 16090 SMS 31209 b

1    or the financing thereof;
2        (2) the refinancing of real property or interests in
3    real property; and
4        (3) the use of real property or interest in property as
5    security for a loan or investment, including mortgage
6    backed securities.
7    "Real property" means the interests, benefits, and rights
8inherent in the ownership of real estate.
9    "Secretary" means the Secretary of Financial and
10Professional Regulation.
11    "USPAP" means the Uniform Standards of Professional
12Appraisal Practice as adopted by the Appraisal Standards Board
13under Title XI.
14    "Valuation" means any estimate of the value of real
15property in connection with a creditor's decision to provide
16credit, including those values developed under a policy of a
17government sponsored enterprise or by an automated valuation
18model or other methodology or mechanism.
19(Source: P.A. 97-602, eff. 8-26-11.)
 
20    (225 ILCS 459/32 new)
21    Sec. 32. Multi-state licensing system. The Secretary may
22require participation in a third-party, multi-state licensing
23system for registration under this Act. The multi-state
24licensing system may share regulatory information and maintain
25records in compliance with the provisions of this Act. The

 

 

HB5140- 24 -LRB100 16090 SMS 31209 b

1multi-state licensing system may charge the applicant an
2administration fee.
 
3    (225 ILCS 459/35)
4    Sec. 35. Application for original registration.
5Applications for original registration shall be made to the
6Department on forms prescribed by the Department, or through a
7multi-state licensing system as designated by the Secretary,
8and accompanied by the required fee. All applications shall
9contain the information that, in the judgment of the
10Department, will enable the Department to pass on the
11qualifications of the applicant to be registered to practice as
12set by rule.
13(Source: P.A. 97-602, eff. 8-26-11.)
 
14    (225 ILCS 459/40)
15    Sec. 40. Qualifications for registration.
16    (a) The Department may issue a certification of
17registration to practice under this Act to any applicant who
18applies to the Department on forms provided by the Department,
19or through a multi-state licensing system as designated by the
20Secretary, pays the required non-refundable fee, and who
21provides the following:
22        (1) the business name of the applicant seeking
23    registration;
24        (2) the business address or addresses and contact

 

 

HB5140- 25 -LRB100 16090 SMS 31209 b

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

 

 

HB5140- 26 -LRB100 16090 SMS 31209 b

1    appraisal services for the appraisal management company;
2        (9) a certification that the employees of the appraisal
3    management company working on behalf of the appraisal
4    management company directly involved in providing
5    appraisal management services, will be appropriately
6    trained and familiar with the appraisal process to
7    completely provide appraisal management services;
8        (10) an irrevocable Uniform Consent to Service of
9    Process, under rule; and
10        (11) a certification that the applicant shall comply
11    with all other requirements of this Act and rules
12    established for the implementation of this Act.
13    (b) Applicants have 3 years from the date of application to
14complete the application process. If the process has not been
15completed in 3 years, the application shall be denied, the fee
16shall be forfeited, and the applicant must reapply and meet the
17requirements in effect at the time of reapplication.
18(Source: P.A. 97-602, eff. 8-26-11.)
 
19    (225 ILCS 459/55)
20    Sec. 55. Fees.
21    (a) The fees for the administration and enforcement of this
22Act, including, but not limited to, original registration,
23renewal, and restoration fees, shall be set by the Department
24by rule. The fees shall not be refundable.
25    (b) All fees and other moneys collected under this Act

 

 

HB5140- 27 -LRB100 16090 SMS 31209 b

1shall be deposited in the Appraisal Administration Fund, except
2as provided in subsection (c) of this Section.
3    (c) The administration fee charged by a multi-state
4licensing system under Section 32 shall be paid directly to the
5multi-state licensing system.
6(Source: P.A. 97-602, eff. 8-26-11.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.

 

 

HB5140- 28 -LRB100 16090 SMS 31209 b

1 INDEX
2 Statutes amended in order of appearance
3    225 ILCS 458/1-10
4    225 ILCS 458/5-7 new
5    225 ILCS 458/5-10
6    225 ILCS 458/5-15
7    225 ILCS 458/5-20
8    225 ILCS 458/5-22
9    225 ILCS 458/5-25
10    225 ILCS 458/5-55
11    225 ILCS 458/20-5
12    225 ILCS 458/20-10
13    225 ILCS 459/10
14    225 ILCS 459/32 new
15    225 ILCS 459/35
16    225 ILCS 459/40
17    225 ILCS 459/55