100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5210

 

Introduced , by Rep. Tom Demmer

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 454/5-45
225 ILCS 454/30-5

    Amends the Real Estate License Act of 2000. Requires a sponsoring broker that maintains more than one office within the State to notify the Department of Financial and Professional Regulation on forms prescribed by the Department (rather than apply for a branch office license) for each office other than the sponsoring broker's principal place of business. Requires the brokerage license (rather than the branch office license) to be displayed conspicuously in each branch office. Removes a reference to "education provider branches". Effective January 1, 2019.


LRB100 16039 SMS 31158 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5210LRB100 16039 SMS 31158 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Real Estate License Act of 2000 is amended
5by changing Sections 5-45 and 30-5 as follows:
 
6    (225 ILCS 454/5-45)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 5-45. Offices.
9    (a) If a sponsoring broker maintains more than one office
10within the State, the sponsoring broker shall notify the
11Department on forms prescribed by the Department apply for a
12branch office license for each office other than the sponsoring
13broker's principal place of business. The brokerage branch
14office license shall be displayed conspicuously in each branch
15office. The name of each branch office shall be the same as
16that of the sponsoring broker's principal office or shall
17clearly delineate the branch office's relationship with the
18principal office.
19    (b) The sponsoring broker shall name a managing broker for
20each branch office and the sponsoring broker shall be
21responsible for supervising all managing brokers. The
22sponsoring broker shall notify the Department in writing of the
23name of all managing brokers of the sponsoring broker and the

 

 

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1office or offices they manage. Any person initially named as a
2managing broker after April 30, 2011 must either (i) be
3licensed as a managing broker or (ii) meet all the requirements
4to be licensed as a managing broker except the required
5education and examination and secure the managing broker's
6license within 90 days of being named as a managing broker. Any
7changes in managing brokers shall be reported to the Department
8in writing within 15 days of the change. Failure to do so shall
9subject the sponsoring broker to discipline under Section 20-20
10of this Act.
11    (c) The sponsoring broker shall immediately notify the
12Department in writing of any opening, closing, or change in
13location of any principal or branch office.
14    (d) Except as provided in this Section, each sponsoring
15broker shall maintain a definite office, or place of business
16within this State for the transaction of real estate business,
17shall conspicuously display an identification sign on the
18outside of his or her office of adequate size and visibility.
19The office or place of business shall not be located in any
20retail or financial business establishment unless it is
21separated from the other business by a separate and distinct
22area within the establishment. A broker who is licensed in this
23State by examination or pursuant to the provisions of Section
245-60 of this Act shall not be required to maintain a definite
25office or place of business in this State provided all of the
26following conditions are met:

 

 

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1        (1) the broker maintains an active broker's license in
2    the broker's state of domicile;
3        (2) the broker maintains an office in the broker's
4    state of domicile; and
5        (3) the broker has filed with the Department written
6    statements appointing the Secretary to act as the broker's
7    agent upon whom all judicial and other process or legal
8    notices directed to the licensee may be served and agreeing
9    to abide by all of the provisions of this Act with respect
10    to his or her real estate activities within the State of
11    Illinois and submitting to the jurisdiction of the
12    Department.
13    The statements under subdivision (3) of this Section shall
14be in form and substance the same as those statements required
15under Section 5-60 of this Act and shall operate to the same
16extent.
17    (e) Upon the loss of a managing broker who is not replaced
18by the sponsoring broker or in the event of the death or
19adjudicated disability of the sole proprietor of an office, a
20written request for authorization allowing the continued
21operation of the office may be submitted to the Department
22within 15 days of the loss. The Department may issue a written
23authorization allowing the continued operation, provided that
24a licensed broker, or in the case of the death or adjudicated
25disability of a sole proprietor, the representative of the
26estate, assumes responsibility, in writing, for the operation

 

 

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1of the office and agrees to personally supervise the operation
2of the office. No such written authorization shall be valid for
3more than 60 days unless extended by the Department for good
4cause shown and upon written request by the broker or
5representative.
6(Source: P.A. 96-856, eff. 12-31-09.)
 
7    (225 ILCS 454/30-5)
8    (Section scheduled to be repealed on January 1, 2020)
9    Sec. 30-5. Licensing of real estate education providers,
10education provider branches, and instructors.
11    (a) No person shall operate an education provider entity
12without possessing a valid and active license issued by the
13Department. Only education providers in possession of a valid
14education provider license may provide real estate
15pre-license, post-license, or continuing education courses
16that satisfy the requirements of this Act. Every person that
17desires to obtain an education provider license shall make
18application to the Department in writing on forms prescribed by
19the Department and pay the fee prescribed by rule. In addition
20to any other information required to be contained in the
21application as prescribed by rule, every application for an
22original or renewed license shall include the applicant's
23Social Security number or tax identification number.
24    (b) (Blank).
25    (c) (Blank).

 

 

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

 

 

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1        (9) the ability to identify and use instructors who
2    will teach in a planned program; instructor selections must
3    demonstrate:
4            (A) appropriate credentials;
5            (B) competence as a teacher;
6            (C) knowledge of content area; and
7            (D) qualification by experience.
8    Unless otherwise provided for in this Section, the
9education provider shall provide a proctor or an electronic
10means of proctoring for each examination; the education
11provider shall be responsible for the conduct of the proctor;
12the duties and responsibilities of a proctor shall be
13established by rule.
14    Unless otherwise provided for in this Section, the
15education provider must provide for closed book examinations
16for each course unless the Department, upon the recommendation
17of the Board, excuses this requirement based on the complexity
18of the course material.
19    (g) Advertising and promotion of education activities must
20be carried out in a responsible fashion clearly showing the
21educational objectives of the activity, the nature of the
22audience that may benefit from the activity, the cost of the
23activity to the participant and the items covered by the cost,
24the amount of credit that can be earned, and the credentials of
25the faculty.
26    (h) The Department may, or upon request of the Board shall,

 

 

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1after notice, cause an education provider to attend an informal
2conference before the Board for failure to comply with any
3requirement for licensure or for failure to comply with any
4provision of this Act or the rules for the administration of
5this Act. The Board shall make a recommendation to the
6Department as a result of its findings at the conclusion of any
7such informal conference.
8    (i) All education providers shall maintain these minimum
9criteria and pay the required fee in order to retain their
10education provider license.
11    (j) The Department may adopt any administrative rule
12consistent with the language and intent of this Act that may be
13necessary for the implementation and enforcement of this
14Section.
15(Source: P.A. 100-188, eff. 1-1-18.)
 
16    Section 99. Effective date. This Act takes effect January
171, 2019.