100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1817

 

Introduced 2/9/2017, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 458/5-5
225 ILCS 458/10-10
225 ILCS 459/Act rep.

    Repeals the Appraisal Management Company Registration Act. Makes conforming changes in the Real Estate Appraiser Licensing Act of 2002. In the Real Estate Appraiser Licensing Act of 2002, removes a provision requiring written disclosure to a borrower or loan applicant of the total compensation to the appraiser or appraisal firm when an appraisal obtained through an appraisal management company is used for loan purposes. Effective immediately.


LRB100 05794 SMS 15817 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1817LRB100 05794 SMS 15817 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 5-5 and 10-10 as follows:
 
6    (225 ILCS 458/5-5)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 5-5. Necessity of license; use of title; exemptions.
9    (a) It is unlawful for a person to (i) act, offer services,
10or advertise services as a State certified general real estate
11appraiser, State certified residential real estate appraiser,
12or associate real estate trainee appraiser, (ii) develop a real
13estate appraisal, (iii) practice as a real estate appraiser, or
14(iv) advertise or hold himself or herself out to be a real
15estate appraiser without a license issued under this Act. A
16person who violates this subsection is guilty of a Class A
17misdemeanor for a first offense and a Class 4 felony for any
18subsequent offense.
19    (a-5) It is unlawful for a person, unless registered as an
20appraisal management company, to solicit clients or enter into
21an appraisal engagement with clients without either a certified
22residential real estate appraiser license or a certified
23general real estate appraiser license issued under this Act. A

 

 

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1person who violates this subsection is guilty of a Class A
2misdemeanor for a first offense and a Class 4 felony for any
3subsequent offense.
4    (b) It is unlawful for a person, other than a person who
5holds a valid license issued pursuant to this Act as a State
6certified general real estate appraiser, a State certified
7residential real estate appraiser, or an associate real estate
8trainee appraiser to use these titles or any other title,
9designation, or abbreviation likely to create the impression
10that the person is licensed as a real estate appraiser pursuant
11to this Act. A person who violates this subsection is guilty of
12a Class A misdemeanor for a first offense and a Class 4 felony
13for any subsequent offense.
14    (c) This Act does not apply to a person who holds a valid
15license as a real estate broker or managing broker pursuant to
16the Real Estate License Act of 2000 who prepares or provides a
17broker price opinion or comparative market analysis in
18compliance with Section 10-45 of the Real Estate License Act of
192000.
20    (d) Nothing in this Act shall preclude a State certified
21general real estate appraiser, a State certified residential
22real estate appraiser, or an associate real estate trainee
23appraiser from rendering appraisals for or on behalf of a
24partnership, association, corporation, firm, or group.
25However, no State appraisal license or certification shall be
26issued under this Act to a partnership, association,

 

 

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1corporation, firm, or group.
2    (e) This Act does not apply to a county assessor, township
3assessor, multi-township assessor, county supervisor of
4assessments, or any deputy or employee of any county assessor,
5township assessor, multi-township assessor, or county
6supervisor of assessments who is performing his or her
7respective duties in accordance with the provisions of the
8Property Tax Code.
9    (e-5) For the purposes of this Act, valuation waivers may
10be prepared by a licensed appraiser notwithstanding any other
11provision of this Act, and the following types of valuations
12are not appraisals and may not be represented to be appraisals,
13and a license is not required under this Act to perform such
14valuations if the valuations are performed by (1) an employee
15of the Illinois Department of Transportation who has completed
16a minimum of 45 hours of course work in real estate appraisal,
17including the principals of real estate appraisals, appraisal
18of partial acquisitions, easement valuation, reviewing
19appraisals in eminent domain, appraisal for federal aid highway
20programs, and appraisal review for federal aid highway programs
21and has at least 2 years' experience in a field closely related
22to real estate; (2) a county engineer who is a registered
23professional engineer under the Professional Engineering
24Practice Act of 1989; (3) an employee of a municipality who has
25(i) completed a minimum of 45 hours of coursework in real
26estate appraisal, including the principals of real estate

 

 

SB1817- 4 -LRB100 05794 SMS 15817 b

1appraisals, appraisal of partial acquisitions, easement
2valuation, reviewing appraisals in eminent domain, appraisal
3for federal aid highway programs, and appraisal review for
4federal aid highway programs and (ii) has either 2 years'
5experience in a field clearly related to real estate or has
6completed 20 hours of additional coursework that is sufficient
7for a person to complete waiver valuations as approved by the
8Federal Highway Administration; or (4) a municipal engineer who
9has completed coursework that is sufficient for his or her
10waiver valuations to be approved by the Federal Highway
11Administration and who is a registered professional engineer
12under the Professional Engineering Act of 1989, under the
13following circumstances:
14        (A) a valuation waiver in an amount not to exceed
15    $10,000 prepared pursuant to the federal Uniform
16    Relocation Assistance and Real Property Acquisition
17    Policies Act of 1970, or prepared pursuant to the federal
18    Uniform Relocation Assistance and Real Property
19    Acquisition for Federal and Federally-Assisted Programs
20    regulations and which is performed by (1) an employee of
21    the Illinois Department of Transportation and co-signed,
22    with a license number affixed, by another employee of the
23    Illinois Department of Transportation who is a registered
24    professional engineer under the Professional Engineering
25    Practice Act of 1989 or (2) an employee of a municipality
26    and co-signed with a license number affixed by a county or

 

 

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1    municipal engineer who is a registered professional
2    engineer under the Professional Engineering Practice Act
3    of 1989; and
4        (B) a valuation waiver in an amount not to exceed
5    $10,000 prepared pursuant to the federal Uniform
6    Relocation Assistance and Real Property Acquisition
7    Policies Act of 1970, or prepared pursuant to the federal
8    Uniform Relocation Assistance and Real Property
9    Acquisition for Federal and Federally-Assisted Programs
10    regulations and which is performed by a county or municipal
11    engineer who is employed by a county or municipality and is
12    a registered professional engineer under the Professional
13    Engineering Practice Act of 1989. In addition to his or her
14    signature, the county or municipal engineer shall affix his
15    or her license number to the valuation.
16    Nothing in this subsection (e-5) shall be construed to
17allow the State of Illinois, a political subdivision thereof,
18or any public body to acquire real estate by eminent domain in
19any manner other than provided for in the Eminent Domain Act.
20    (f) A State real estate appraisal certification or license
21is not required under this Act for any of the following:
22        (1) A person, partnership, association, or corporation
23    that performs appraisals of property owned by that person,
24    partnership, association, or corporation for the sole use
25    of that person, partnership, association, or corporation.
26        (2) A court-appointed commissioner who conducts an

 

 

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1    appraisal pursuant to a judicially ordered evaluation of
2    property.
3However, any person who is certified or licensed under this Act
4and who performs any of the activities set forth in this
5subsection (f) must comply with the provisions of this Act. A
6person who violates this subsection (f) is guilty of a Class A
7misdemeanor for a first offense and a Class 4 felony for any
8subsequent offense.
9    (g) This Act does not apply to an employee, officer,
10director, or member of a credit or loan committee of a
11financial institution or any other person engaged by a
12financial institution when performing an evaluation of real
13property for the sole use of the financial institution in a
14transaction for which the financial institution would not be
15required to use the services of a State licensed or State
16certified appraiser pursuant to federal regulations adopted
17under Title XI of the federal Financial Institutions Reform,
18Recovery, and Enforcement Act of 1989, nor does this Act apply
19to the procurement of an automated valuation model.
20    "Automated valuation model" means an automated system that
21is used to derive a property value through the use of publicly
22available property records and various analytic methodologies
23such as comparable sales prices, home characteristics, and
24historical home price appreciations.
25    (h) This Act does not apply to any corporation, limited
26liability company, partnership, sole proprietorship,

 

 

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1subsidiary, unit, or other business entity that directly or
2indirectly performs the following appraisal management
3services: (1) administers networks of independent contractors
4or employee appraisers to perform real estate appraisal
5assignments for clients; (2) receives requests for real estate
6appraisal services from clients and, for a fee paid by the
7client, enters into an agreement with one or more independent
8appraisers to perform the real estate appraisal services
9contained in the request; or (3) otherwise serves as a
10third-party broker of appraisal management services between
11clients and appraisers.
12(Source: P.A. 98-444, eff. 8-16-13; 98-933, eff. 1-1-15;
1398-1109, eff. 1-1-15; 99-78, eff. 7-20-15.)
 
14    (225 ILCS 458/10-10)
15    (Section scheduled to be repealed on January 1, 2022)
16    Sec. 10-10. Standards of practice. All persons licensed
17under this Act must comply with standards of professional
18appraisal practice adopted by the Department. The Department
19must adopt, as part of its rules, the Uniform Standards of
20Professional Appraisal Practice (USPAP) as published from time
21to time by the Appraisal Standards Board of the Appraisal
22Foundation. The Department shall consider federal laws and
23regulations regarding the licensure of real estate appraisers
24prior to adopting its rules for the administration of this Act.
25When an appraisal obtained through an appraisal management

 

 

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1company is used for loan purposes, the borrower or loan
2applicant shall be provided with a written disclosure of the
3total compensation to the appraiser or appraisal firm within
4the certification of the appraisal report and it shall not be
5redacted or otherwise obscured.
6(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
7    (225 ILCS 459/Act rep.)
8    Section 10. The Appraisal Management Company Registration
9Act is repealed.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.