Sen. John M. Sullivan

Filed: 5/28/2012

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4074

2    AMENDMENT NO. ______. Amend House Bill 4074 as follows:
 
3on page 4, immediately below line 12 by adding the following:
 
4    "Section 5. The Auction License Act is amended by changing
5Sections 5-10 and 20-15 as follows:
 
6    (225 ILCS 407/5-10)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 5-10. Definitions. As used in this Act:
9    "Advertisement" means any written, oral, or electronic
10communication that contains a promotion, inducement, or offer
11to conduct an auction or offer to provide an auction service,
12including but not limited to brochures, pamphlets, radio and
13television scripts, telephone and direct mail solicitations,
14electronic media, and other means of promotion.
15    "Advisory Board" or "Board" means the Auctioneer Advisory

 

 

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1Board.
2    "Associate auctioneer" means a person who conducts an
3auction, but who is under the direct supervision of, and is
4sponsored by, a licensed auctioneer or auction firm.
5    "Auction" means the sale or lease of property, real or
6personal, by means of exchanges between an auctioneer and
7prospective purchasers or lessees, which consists of a series
8of invitations for offers made by the auctioneer and offers by
9prospective purchasers or lessees for the purpose of obtaining
10an acceptable offer for the sale or lease of the property,
11including the sale or lease of property via mail,
12telecommunications, or the Internet.
13    "Auction contract" means a written agreement between an
14auctioneer or auction firm and a seller or sellers.
15    "Auction firm" means any corporation, partnership, or
16limited liability company that acts as an auctioneer and
17provides an auction service.
18    "Auction school" means any educational institution, public
19or private, which offers a curriculum of auctioneer education
20and training approved by the Department.
21    "Auction service" means the service of arranging,
22managing, advertising, or conducting auctions.
23    "Auctioneer" means a person or entity who, for another, for
24a fee, compensation, commission, or any other valuable
25consideration at auction or with the intention or expectation
26of receiving valuable consideration by the means of or process

 

 

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1of an auction or sale at auction or providing an auction
2service, offers, negotiates, or attempts to negotiate an
3auction contract, sale, purchase, or exchange of goods,
4chattels, merchandise, personal property, real property, or
5any commodity that may be lawfully kept or offered for sale by
6or at auction.
7    "Address of Record" means the designated address recorded
8by the Department in the applicant's or licensee's application
9file or license file maintained by the Department. It is the
10duty of the applicant or licensee to inform the Department of
11any change of address, and such changes must be made either
12through the Department's website or by directly contacting the
13Department.
14    "Buyer premium" means any fee or compensation paid by the
15successful purchaser of property sold or leased at or by
16auction, to the auctioneer, auction firms, seller, lessor, or
17other party to the transaction, other than the purchase price.
18    "Department" means the Department of Financial and
19Professional Regulation.
20    "Goods" means chattels, movable goods, merchandise, or
21personal property or commodities of any form or type that may
22be lawfully kept or offered for sale.
23    "Licensee" means any person licensed under this Act.
24    "Managing auctioneer" means any person licensed as an
25auctioneer who manages and supervises licensees sponsored by an
26auction firm or auctioneer.

 

 

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1    "Person" means an individual, association, partnership,
2corporation, or limited liability company or the officers,
3directors, or employees of the same.
4    "Pre-renewal period" means the 24 months prior to the
5expiration date of a license issued under this Act.
6    "Real estate" means real estate as defined in Section 1-10
7of the Real Estate License Act of 2000 or its successor Acts.
8    "Secretary" means the Secretary of the Department of
9Financial and Professional Regulation or his or her designee.
10    "Sponsoring auctioneer" means the auctioneer or auction
11firm who has issued a sponsor card to a licensed auctioneer.
12    "Sponsor card" means the temporary permit issued by the
13sponsoring auctioneer certifying that the licensee named
14thereon is employed by or associated with the sponsoring
15auctioneer and the sponsoring auctioneer shall be responsible
16for the actions of the sponsored licensee.
17(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
 
18    (225 ILCS 407/20-15)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 20-15. Disciplinary actions; grounds. The Department
21may refuse to issue or renew a license, may place on probation
22or administrative supervision, suspend, or revoke any license
23or may reprimand or take other disciplinary or non-disciplinary
24action as the Department may deem proper, including the
25imposition of fines not to exceed $10,000 for each violation

 

 

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1upon anyone licensed under this Act for any of the following
2reasons:
3        (1) False or fraudulent representation or material
4    misstatement in furnishing information to the Department
5    in obtaining or seeking to obtain a license.
6        (2) Violation of any provision of this Act or the rules
7    promulgated pursuant to this Act.
8        (3) Conviction of or entry of a plea of guilty or nolo
9    contendere to any crime that is a felony under the laws of
10    the United States or any state or territory thereof, or
11    that is a misdemeanor, an essential element of which is
12    dishonesty, or any crime that is directly related to the
13    practice of the profession.
14        (4) Being adjudged to be a person under legal
15    disability or subject to involuntary admission or to meet
16    the standard for judicial admission as provided in the
17    Mental Health and Developmental Disabilities Code.
18        (5) Discipline of a licensee by another state, the
19    District of Columbia, a territory of the United States, a
20    foreign nation, a governmental agency, or any other entity
21    authorized to impose discipline if at least one of the
22    grounds for that discipline is the same as or the
23    equivalent to one of the grounds for discipline set forth
24    in this Act or for failing to report to the Department,
25    within 30 days, any adverse final action taken against the
26    licensee by any other licensing jurisdiction, government

 

 

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1    agency, law enforcement agency, or court, or liability for
2    conduct that would constitute grounds for action as set
3    forth in this Act.
4        (6) Engaging in the practice of auctioneering,
5    conducting an auction, or providing an auction service
6    without a license or after the license was expired,
7    revoked, suspended, or terminated or while the license was
8    inoperative.
9        (7) Attempting to subvert or cheat on the auctioneer
10    exam or any continuing education exam, or aiding or
11    abetting another to do the same.
12        (8) Directly or indirectly giving to or receiving from
13    a person, firm, corporation, partnership, or association a
14    fee, commission, rebate, or other form of compensation for
15    professional service not actually or personally rendered,
16    except that an auctioneer licensed under this Act may
17    receive a fee from another licensed auctioneer from this
18    State or jurisdiction for the referring of a client or
19    prospect for auction services to the licensed auctioneer.
20        (9) Making any substantial misrepresentation or
21    untruthful advertising.
22        (10) Making any false promises of a character likely to
23    influence, persuade, or induce.
24        (11) Pursuing a continued and flagrant course of
25    misrepresentation or the making of false promises through a
26    licensee, agent, employee, advertising, or otherwise.

 

 

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1        (12) Any misleading or untruthful advertising, or
2    using any trade name or insignia of membership in any
3    auctioneer association or organization of which the
4    licensee is not a member.
5        (13) Commingling funds of others with his or her own
6    funds or failing to keep the funds of others in an escrow
7    or trustee account.
8        (14) Failure to account for, remit, or return any
9    moneys, property, or documents coming into his or her
10    possession that belong to others, acquired through the
11    practice of auctioneering, conducting an auction, or
12    providing an auction service within 30 days of the written
13    request from the owner of said moneys, property, or
14    documents.
15        (15) Failure to maintain and deposit into a special
16    account, separate and apart from any personal or other
17    business accounts, all moneys belonging to others
18    entrusted to a licensee while acting as an auctioneer,
19    associate auctioneer, auction firm, or as a temporary
20    custodian of the funds of others.
21        (16) Failure to make available to Department personnel
22    during normal business hours all escrow and trustee records
23    and related documents maintained in connection with the
24    practice of auctioneering, conducting an auction, or
25    providing an auction service within 24 hours after a
26    request from Department personnel.

 

 

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1        (17) Making or filing false records or reports in his
2    or her practice, including but not limited to false records
3    or reports filed with State agencies.
4        (18) Failing to voluntarily furnish copies of all
5    written instruments prepared by the auctioneer and signed
6    by all parties to all parties at the time of execution.
7        (19) Failing to provide information within 30 days in
8    response to a written request made by the Department.
9        (20) Engaging in any act that constitutes a violation
10    of Section 2-102, 3-103, or 3-105 of the Illinois Human
11    Rights Act.
12        (21) (Blank).
13        (22) Engaging in dishonorable, unethical, or
14    unprofessional conduct of a character likely to deceive,
15    defraud, or harm the public.
16        (23) Offering or advertising real estate for sale or
17    lease at auction without a valid broker or managing
18    broker's salesperson's license under the Real Estate
19    License Act of 1983, or any successor Act, unless exempt
20    from licensure under the terms of the Real Estate License
21    Act of 2000, or any successor Act, except as provided for
22    in Section 5-32 of the Real Estate License Act of 2000.
23        (24) Inability to practice the profession with
24    reasonable judgement, skill, or safety as a result of a
25    physical illness, including, but not limited to,
26    deterioration through the aging process or loss of motor

 

 

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1    skill, or a mental illness or disability.
2        (25) A pattern of practice or other behavior that
3    demonstrates incapacity or incompetence to practice under
4    this Act.
5        (26) Being named as a perpetrator in an indicated
6    report by the Department of Children and Family Services
7    under the Abused and Neglected Child Reporting Act and upon
8    proof by clear and convincing evidence that the licensee
9    has caused a child to be an abused child or a neglected
10    child as defined in the Abused and Neglected Child
11    Reporting Act.
12        (27) Inability to practice with reasonable judgement,
13    skill, or safety as a result of habitual or excessive use
14    or addiction to alcohol, narcotics, stimulants, or any
15    other chemical agent or drug.
16        (28) Wilfully failing to report an instance of
17    suspected child abuse or neglect as required by the Abused
18    and Neglected Child Reporting Act.
19    The entry of an order by a circuit court establishing that
20any person holding a license under this Act is subject to
21involuntary admission or judicial admission, as provided for in
22the Mental Health and Developmental Disabilities Code,
23operates as an automatic suspension of that license. That
24person may have his or her license restored only upon the
25determination by a circuit court that the patient is no longer
26subject to involuntary admission or judicial admission and the

 

 

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1issuance of an order so finding and discharging the patient and
2upon the Board's recommendation to the Department that the
3license be restored. Where circumstances so indicate, the Board
4may recommend to the Department that it require an examination
5prior to restoring a suspended license.
6    If the Department or Board finds an individual unable to
7practice because of the reasons set forth in this Section, the
8Department or Board may require that individual to submit to
9care, counseling, or treatment by physicians approved or
10designated by the Department or Board, as a condition, term, or
11restriction for continued, reinstated, or renewed licensure to
12practice; or, in lieu of care, counseling, or treatment, the
13Department may file, or the Board may recommend to the
14Department to file, a complaint to immediately suspend, revoke,
15or otherwise discipline the license of the individual. An
16individual whose license was granted, continued, reinstated,
17renewed, disciplined or supervised subject to such terms,
18conditions, or restrictions, and who fails to comply with such
19terms, conditions, or restrictions, shall be referred to the
20Secretary for a determination as to whether the individual
21shall have his or her license suspended immediately, pending a
22hearing by the Department. In instances in which the Secretary
23immediately suspends a person's license under this Section, a
24hearing on that person's license must be convened by the
25Department within 21 days after the suspension and completed
26without appreciable delay. The Department and Board shall have

 

 

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1the authority to review the subject individual's record of
2treatment and counseling regarding the impairment to the extent
3permitted by applicable federal statutes and regulations
4safeguarding the confidentiality of medical records.
5    An individual licensed under this Act and affected under
6this Section shall be afforded an opportunity to demonstrate to
7the Department or Board that he or she can resume practice in
8compliance with acceptable and prevailing standards under the
9provisions of his or her license.
10    In enforcing this Section, the Department or Board, upon a
11showing of a possible violation, may compel an individual
12licensed to practice under this Act, or who has applied for
13licensure under this Act, to submit to a mental or physical
14examination, or both, as required by and at the expense of the
15Department. The Department or Board may order the examining
16physician to present testimony concerning the mental or
17physical examination of the licensee or applicant. No
18information shall be excluded by reason of any common law or
19statutory privilege relating to communications between the
20licensee or applicant and the examining physician. The
21examining physicians shall be specifically designated by the
22Board or Department. The individual to be examined may have, at
23his or her own expense, another physician of his or her choice
24present during all aspects of this examination. Failure of an
25individual to submit to a mental or physical examination when
26directed shall be grounds for suspension of his or her license

 

 

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1until the individual submits to the examination, if the
2Department finds that, after notice and hearing, the refusal to
3submit to the examination was without reasonable cause.
4(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)
 
5    Section 10. The Real Estate License Act of 2000 is amended
6by changing Sections 5-20, 10-5, and 20-20 and by adding
7Section 5-32 as follows:
 
8    (225 ILCS 454/5-20)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 5-20. Exemptions from broker, salesperson, or leasing
11agent license requirement. The requirement for holding a
12license under this Article 5 shall not apply to:
13        (1) Any person, partnership, or corporation that as
14    owner or lessor performs any of the acts described in the
15    definition of "broker" under Section 1-10 of this Act with
16    reference to property owned or leased by it, or to the
17    regular employees thereof with respect to the property so
18    owned or leased, where such acts are performed in the
19    regular course of or as an incident to the management,
20    sale, or other disposition of such property and the
21    investment therein, provided that such regular employees
22    do not perform any of the acts described in the definition
23    of "broker" under Section 1-10 of this Act in connection
24    with a vocation of selling or leasing any real estate or

 

 

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1    the improvements thereon not so owned or leased.
2        (2) An attorney in fact acting under a duly executed
3    and recorded power of attorney to convey real estate from
4    the owner or lessor or the services rendered by an attorney
5    at law in the performance of the attorney's duty as an
6    attorney at law.
7        (3) Any person acting as receiver, trustee in
8    bankruptcy, administrator, executor, or guardian or while
9    acting under a court order or under the authority of a will
10    or testamentary trust.
11        (4) Any person acting as a resident manager for the
12    owner or any employee acting as the resident manager for a
13    broker managing an apartment building, duplex, or
14    apartment complex, when the resident manager resides on the
15    premises, the premises is his or her primary residence, and
16    the resident manager is engaged in the leasing of the
17    property of which he or she is the resident manager.
18        (5) Any officer or employee of a federal agency in the
19    conduct of official duties.
20        (6) Any officer or employee of the State government or
21    any political subdivision thereof performing official
22    duties.
23        (7) Any multiple listing service or other similar
24    information exchange that is engaged in the collection and
25    dissemination of information concerning real estate
26    available for sale, purchase, lease, or exchange for the

 

 

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1    purpose of providing licensees with a system by which
2    licensees may cooperatively share information along with
3    which no other licensed activities, as defined in Section
4    1-10 of this Act, are provided.
5        (8) Railroads and other public utilities regulated by
6    the State of Illinois, or the officers or full time
7    employees thereof, unless the performance of any licensed
8    activities is in connection with the sale, purchase, lease,
9    or other disposition of real estate or investment therein
10    not needing the approval of the appropriate State
11    regulatory authority.
12        (9) Any medium of advertising in the routine course of
13    selling or publishing advertising along with which no other
14    licensed activities, as defined in Section 1-10 of this
15    Act, are provided.
16        (10) Any resident lessee of a residential dwelling unit
17    who refers for compensation to the owner of the dwelling
18    unit, or to the owner's agent, prospective lessees of
19    dwelling units in the same building or complex as the
20    resident lessee's unit, but only if the resident lessee (i)
21    refers no more than 3 prospective lessees in any 12-month
22    period, (ii) receives compensation of no more than $1,500
23    or the equivalent of one month's rent, whichever is less,
24    in any 12-month period, and (iii) limits his or her
25    activities to referring prospective lessees to the owner,
26    or the owner's agent, and does not show a residential

 

 

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1    dwelling unit to a prospective lessee, discuss terms or
2    conditions of leasing a dwelling unit with a prospective
3    lessee, or otherwise participate in the negotiation of the
4    leasing of a dwelling unit.
5        (11) An exchange company registered under the Real
6    Estate Timeshare Act of 1999 and the regular employees of
7    that registered exchange company but only when conducting
8    an exchange program as defined in that Act.
9        (12) An existing timeshare owner who, for
10    compensation, refers prospective purchasers, but only if
11    the existing timeshare owner (i) refers no more than 20
12    prospective purchasers in any calendar year, (ii) receives
13    no more than $1,000, or its equivalent, for referrals in
14    any calendar year and (iii) limits his or her activities to
15    referring prospective purchasers of timeshare interests to
16    the developer or the developer's employees or agents, and
17    does not show, discuss terms or conditions of purchase or
18    otherwise participate in negotiations with regard to
19    timeshare interests.
20        (13) Any person who is licensed without examination
21    under Section 10-25 (now repealed) of the Auction License
22    Act is exempt from holding a broker's or salesperson's
23    license under this Act for the limited purpose of selling
24    or leasing real estate at auction, so long as:
25            (A) that person has made application for said
26        exemption by July 1, 2000;

 

 

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1            (B) that person verifies to the Department that he
2        or she has sold real estate at auction for a period of
3        5 years prior to licensure as an auctioneer;
4            (C) the person has had no lapse in his or her
5        license as an auctioneer; and
6            (D) the license issued under the Auction License
7        Act has not been disciplined for violation of those
8        provisions of Article 20 of the Auction License Act
9        dealing with or related to the sale or lease of real
10        estate at auction.
11        (14) A person who holds a valid license under the
12    Auction License Act and a valid real estate auction
13    certification and conducts auctions for the sale of real
14    estate under Section 5-32 of this Act.
15        (15) (14) A hotel operator who is registered with the
16    Illinois Department of Revenue and pays taxes under the
17    Hotel Operators' Occupation Tax Act and rents a room or
18    rooms in a hotel as defined in the Hotel Operators'
19    Occupation Tax Act for a period of not more than 30
20    consecutive days and not more than 60 days in a calendar
21    year.
22(Source: P.A. 96-328, eff. 8-11-09; 96-856, eff. 12-31-09.)
 
23    (225 ILCS 454/5-32 new)
24    Sec. 5-32. Real estate auction certification.
25    (a) An auctioneer licensed under the Auction License Act

 

 

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1who does not possess a valid and active broker's or managing
2broker's license under this Act, or who is not otherwise exempt
3from licensure, may not engage in the practice of auctioning
4real estate, except as provided in this Section.
5    (b) The Department shall issue a real estate auction
6certification to applicants who:
7        (1) possess a valid auctioneer's license under the
8    Auction License Act;
9        (2) successfully complete a real estate auction course
10    of at least 30 hours approved by the Real Estate Education
11    Advisory Council, which shall cover the scope of activities
12    that may be engaged in by a person holding a real estate
13    auction certification and the activities for which a person
14    must hold a real estate license, as well as other material
15    as provided by the Advisory Council;
16        (3) successfully complete an examination provided for
17    by the Department; and
18        (4) successfully complete any other reasonable
19    requirements as provided by rule.
20    (c) The auctioneer's role shall be limited to establishing
21the time, place, and method of the real estate auction, placing
22advertisements regarding the auction, and crying or calling the
23auction; any other real estate brokerage activities must be
24performed by a person holding a valid and active real estate
25broker's or managing broker's license under the provisions of
26this Act or by a person who is otherwise exempt from licensure

 

 

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1under this Act.
2    (d) An auctioneer who conducts any real estate auction
3activities in violation of this Section is guilty of unlicensed
4practice under Section 20-10 of this Act.
5    (e) The Department may revoke, suspend, or otherwise
6discipline the real estate auction certification of an
7auctioneer who is adjudicated to be in violation of the
8provisions of Section 20-15 of the Auction License Act.
9    (f) Advertising for the real estate auction must contain
10the name and address of the licensed real estate broker or
11managing broker who is providing brokerage services for the
12transaction.
13    (g) The requirement to hold a real estate auction
14certification shall not apply to a person exempt from this Act
15under the provisions of paragraph (13) of subsection 5-20 of
16this Act, unless that person is performing licensed activities
17in a transaction in which a licensed auctioneer with a real
18estate certification is providing the limited services
19provided for in subsection (c) of this Section.
20    (h) Nothing in this Section shall require a person licensed
21under this Act as a real estate broker or managing broker to
22obtain a real estate auction certification in order to auction
23real estate.
24    (i) The Department may adopt rules to implement this
25Section.
 

 

 

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1    (225 ILCS 454/10-5)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 10-5. Payment of compensation.
4    (a) No licensee shall pay compensation directly to a
5licensee sponsored by another broker for the performance of
6licensed activities. No licensee sponsored by a broker may pay
7compensation to any licensee other than his or her sponsoring
8broker for the performance of licensed activities unless the
9licensee paying the compensation is a principal to the
10transaction. However, a non-sponsoring broker may pay
11compensation directly to a licensee sponsored by another or a
12person who is not sponsored by a broker if the payments are
13made pursuant to terms of an employment agreement that was
14previously in place between a licensee and the non-sponsoring
15broker, and the payments are for licensed activity performed by
16that person while previously sponsored by the now
17non-sponsoring broker.
18    (b) No licensee sponsored by a broker shall accept
19compensation for the performance of activities under this Act
20except from the broker by whom the licensee is sponsored,
21except as provided in this Section.
22    (c) Any person that is a licensed personal assistant for
23another licensee may only be compensated in his or her capacity
24as a personal assistant by the sponsoring broker for that
25licensed personal assistant.
26    (d) One sponsoring broker may pay compensation directly to

 

 

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1another sponsoring broker for the performance of licensed
2activities.
3    (e) Notwithstanding any other provision of this Act, a
4sponsoring broker may pay compensation to a person currently
5licensed under the Auction License Act who is in compliance
6with and providing services under Section 5-32 of this Act.
7(Source: P.A. 91-245, eff. 12-31-99.)
 
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 or impose a fine not
15to exceed $25,000 upon any licensee under this Act or against a
16licensee in handling his or her own property, whether held by
17deed, option, or otherwise, for any one or any combination of
18the following causes:
19        (1) Fraud or misrepresentation in applying for, or
20    procuring, a license under this Act or in connection with
21    applying for renewal of a license under this Act.
22        (2) The conviction of, plea of guilty or plea of nolo
23    contendere contendre to a felony or misdemeanor, an
24    essential element of which is dishonesty or fraud or
25    larceny, embezzlement, or obtaining money, property, or

 

 

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1    credit by false pretenses or by means of a confidence game,
2    in this State, or any other jurisdiction.
3        (3) Inability to practice the profession with
4    reasonable judgment, skill, or safety as a result of a
5    physical illness, including, but not limited to,
6    deterioration through the aging process or loss of motor
7    skill, or a mental illness or disability.
8        (4) Practice under this Act as a licensee in a retail
9    sales establishment from an office, desk, or space that is
10    not separated from the main retail business by a separate
11    and distinct area within the establishment.
12        (5) Disciplinary action of another state or
13    jurisdiction against the license or other authorization to
14    practice as a managing broker, broker, salesperson, or
15    leasing agent if at least one of the grounds for that
16    discipline is the same as or the equivalent of one of the
17    grounds for discipline set forth in this Act. A certified
18    copy of the record of the action by the other state or
19    jurisdiction shall be prima facie evidence thereof.
20        (6) Engaging in the practice of real estate brokerage
21    without a license or after the licensee's license was
22    expired or while the license was inoperative.
23        (7) Cheating on or attempting to subvert the Real
24    Estate License Exam or continuing education exam.
25        (8) Aiding or abetting an applicant to subvert or cheat
26    on the Real Estate License Exam or continuing education

 

 

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1    exam administered pursuant to this Act.
2        (9) Advertising that is inaccurate, misleading, or
3    contrary to the provisions of the Act.
4        (10) Making any substantial misrepresentation or
5    untruthful advertising.
6        (11) Making any false promises of a character likely to
7    influence, persuade, or induce.
8        (12) Pursuing a continued and flagrant course of
9    misrepresentation or the making of false promises through
10    licensees, employees, agents, advertising, or otherwise.
11        (13) Any misleading or untruthful advertising, or
12    using any trade name or insignia of membership in any real
13    estate organization of which the licensee is not a member.
14        (14) Acting for more than one party in a transaction
15    without providing written notice to all parties for whom
16    the licensee acts.
17        (15) Representing or attempting to represent a broker
18    other than the sponsoring broker.
19        (16) Failure to account for or to remit any moneys or
20    documents coming into his or her possession that belong to
21    others.
22        (17) Failure to maintain and deposit in a special
23    account, separate and apart from personal and other
24    business accounts, all escrow moneys belonging to others
25    entrusted to a licensee while acting as a real estate
26    broker, escrow agent, or temporary custodian of the funds

 

 

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1    of others or failure to maintain all escrow moneys on
2    deposit in the account until the transactions are
3    consummated or terminated, except to the extent that the
4    moneys, or any part thereof, shall be:
5            (A) disbursed prior to the consummation or
6        termination (i) in accordance with the written
7        direction of the principals to the transaction or their
8        duly authorized agents, (ii) in accordance with
9        directions providing for the release, payment, or
10        distribution of escrow moneys contained in any written
11        contract signed by the principals to the transaction or
12        their duly authorized agents, or (iii) pursuant to an
13        order of a court of competent jurisdiction; or
14            (B) deemed abandoned and transferred to the Office
15        of the State Treasurer to be handled as unclaimed
16        property pursuant to the Uniform Disposition of
17        Unclaimed Property Act. Escrow moneys may be deemed
18        abandoned under this subparagraph (B) only: (i) in the
19        absence of disbursement under subparagraph (A); (ii)
20        in the absence of notice of the filing of any claim in
21        a court of competent jurisdiction; and (iii) if 6
22        months have elapsed after the receipt of a written
23        demand for the escrow moneys from one of the principals
24        to the transaction or the principal's duly authorized
25        agent.
26    The account shall be noninterest bearing, unless the

 

 

09700HB4074sam001- 24 -LRB097 16041 CEL 70287 a

1    character of the deposit is such that payment of interest
2    thereon is otherwise required by law or unless the
3    principals to the transaction specifically require, in
4    writing, that the deposit be placed in an interest bearing
5    account.
6        (18) Failure to make available to the Department all
7    escrow records and related documents maintained in
8    connection with the practice of real estate within 24 hours
9    of a request for those documents by Department personnel.
10        (19) Failing to furnish copies upon request of
11    documents relating to a real estate transaction to a party
12    who has executed that document.
13        (20) Failure of a sponsoring broker to timely provide
14    information, sponsor cards, or termination of licenses to
15    the Department.
16        (21) Engaging in dishonorable, unethical, or
17    unprofessional conduct of a character likely to deceive,
18    defraud, or harm the public.
19        (22) Commingling the money or property of others with
20    his or her own money or property.
21        (23) Employing any person on a purely temporary or
22    single deal basis as a means of evading the law regarding
23    payment of commission to nonlicensees on some contemplated
24    transactions.
25        (24) Permitting the use of his or her license as a
26    broker to enable a salesperson or unlicensed person to

 

 

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1    operate a real estate business without actual
2    participation therein and control thereof by the broker.
3        (25) Any other conduct, whether of the same or a
4    different character from that specified in this Section,
5    that constitutes dishonest dealing.
6        (26) Displaying a "for rent" or "for sale" sign on any
7    property without the written consent of an owner or his or
8    her duly authorized agent or advertising by any means that
9    any property is for sale or for rent without the written
10    consent of the owner or his or her authorized agent.
11        (27) Failing to provide information requested by the
12    Department, or otherwise respond to that request, within 30
13    days of the request.
14        (28) Advertising by means of a blind advertisement,
15    except as otherwise permitted in Section 10-30 of this Act.
16        (29) Offering guaranteed sales plans, as defined in
17    clause (A) of this subdivision (29), except to the extent
18    hereinafter set forth:
19            (A) A "guaranteed sales plan" is any real estate
20        purchase or sales plan whereby a licensee enters into a
21        conditional or unconditional written contract with a
22        seller, prior to entering into a brokerage agreement
23        with the seller, by the terms of which a licensee
24        agrees to purchase a property of the seller within a
25        specified period of time at a specific price in the
26        event the property is not sold in accordance with the

 

 

09700HB4074sam001- 26 -LRB097 16041 CEL 70287 a

1        terms of a brokerage agreement to be entered into
2        between the sponsoring broker and the seller.
3            (B) A licensee offering a guaranteed sales plan
4        shall provide the details and conditions of the plan in
5        writing to the party to whom the plan is offered.
6            (C) A licensee offering a guaranteed sales plan
7        shall provide to the party to whom the plan is offered
8        evidence of sufficient financial resources to satisfy
9        the commitment to purchase undertaken by the broker in
10        the plan.
11            (D) Any licensee offering a guaranteed sales plan
12        shall undertake to market the property of the seller
13        subject to the plan in the same manner in which the
14        broker would market any other property, unless the
15        agreement with the seller provides otherwise.
16            (E) The licensee cannot purchase seller's property
17        until the brokerage agreement has ended according to
18        its terms or is otherwise terminated.
19            (F) Any licensee who fails to perform on a
20        guaranteed sales plan in strict accordance with its
21        terms shall be subject to all the penalties provided in
22        this Act for violations thereof and, in addition, shall
23        be subject to a civil fine payable to the party injured
24        by the default in an amount of up to $25,000.
25        (30) Influencing or attempting to influence, by any
26    words or acts, a prospective seller, purchaser, occupant,

 

 

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1    landlord, or tenant of real estate, in connection with
2    viewing, buying, or leasing real estate, so as to promote
3    or tend to promote the continuance or maintenance of
4    racially and religiously segregated housing or so as to
5    retard, obstruct, or discourage racially integrated
6    housing on or in any street, block, neighborhood, or
7    community.
8        (31) Engaging in any act that constitutes a violation
9    of any provision of Article 3 of the Illinois Human Rights
10    Act, whether or not a complaint has been filed with or
11    adjudicated by the Human Rights Commission.
12        (32) Inducing any party to a contract of sale or lease
13    or brokerage agreement to break the contract of sale or
14    lease or brokerage agreement for the purpose of
15    substituting, in lieu thereof, a new contract for sale or
16    lease or brokerage agreement with a third party.
17        (33) Negotiating a sale, exchange, or lease of real
18    estate directly with any person if the licensee knows that
19    the person has an exclusive brokerage agreement with
20    another broker, unless specifically authorized by that
21    broker.
22        (34) When a licensee is also an attorney, acting as the
23    attorney for either the buyer or the seller in the same
24    transaction in which the licensee is acting or has acted as
25    a broker or salesperson.
26        (35) Advertising or offering merchandise or services

 

 

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

 

 

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1    Act or the published rules promulgated by the Department to
2    enforce this Act or aiding or abetting any individual,
3    partnership, registered limited liability partnership,
4    limited liability company, or corporation in disregarding
5    any provision of this Act or the published rules
6    promulgated by the Department to enforce this Act.
7        (41) Failing to provide the minimum services required
8    by Section 15-75 of this Act when acting under an exclusive
9    brokerage agreement.
10        (42) Habitual or excessive use or addiction to alcohol,
11    narcotics, stimulants, or any other chemical agent or drug
12    that results in a managing broker, broker, salesperson, or
13    leasing agent's inability to practice with reasonable
14    skill or safety.
15        (43) Enabling, aiding, or abetting an auctioneer, as
16    defined in the Auction License Act, to conduct a real
17    estate auction in a manner that is in violation of this
18    Act.
19    (b) The Department may refuse to issue or renew or may
20suspend the license of any person who fails to file a return,
21pay the tax, penalty or interest shown in a filed return, or
22pay any final assessment of tax, penalty, or interest, as
23required by any tax Act administered by the Department of
24Revenue, until such time as the requirements of that tax Act
25are satisfied in accordance with subsection (g) of Section
262105-15 of the Civil Administrative Code of Illinois.

 

 

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1    (c) The Department shall deny a license or renewal
2authorized by this Act to a person who has defaulted on an
3educational loan or scholarship provided or guaranteed by the
4Illinois Student Assistance Commission or any governmental
5agency of this State in accordance with item (5) of subsection
6(g) of Section 2105-15 of the Civil Administrative Code of
7Illinois.
8    (d) In cases where the Department of Healthcare and Family
9Services (formerly Department of Public Aid) has previously
10determined that a licensee or a potential licensee is more than
1130 days delinquent in the payment of child support and has
12subsequently certified the delinquency to the Department may
13refuse to issue or renew or may revoke or suspend that person's
14license or may take other disciplinary action against that
15person based solely upon the certification of delinquency made
16by the Department of Healthcare and Family Services in
17accordance with item (5) of subsection (g) of Section 2105-15
18of the Civil Administrative Code of Illinois.
19    (e) In enforcing this Section, the Department or Board upon
20a showing of a possible violation may compel an individual
21licensed to practice under this Act, or who has applied for
22licensure under this Act, to submit to a mental or physical
23examination, or both, as required by and at the expense of the
24Department. The Department or Board may order the examining
25physician to present testimony concerning the mental or
26physical examination of the licensee or applicant. No

 

 

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1information shall be excluded by reason of any common law or
2statutory privilege relating to communications between the
3licensee or applicant and the examining physician. The
4examining physicians shall be specifically designated by the
5Board or Department. The individual to be examined may have, at
6his or her own expense, another physician of his or her choice
7present during all aspects of this examination. Failure of an
8individual to submit to a mental or physical examination, when
9directed, shall be grounds for suspension of his or her license
10until the individual submits to the examination if the
11Department finds, after notice and hearing, that the refusal to
12submit to the examination was without reasonable cause.
13    If the Department or Board finds an individual unable to
14practice because of the reasons set forth in this Section, the
15Department or Board may require that individual to submit to
16care, counseling, or treatment by physicians approved or
17designated by the Department or Board, as a condition, term, or
18restriction for continued, reinstated, or renewed licensure to
19practice; or, in lieu of care, counseling, or treatment, the
20Department may file, or the Board may recommend to the
21Department to file, a complaint to immediately suspend, revoke,
22or otherwise discipline the license of the individual. An
23individual whose license was granted, continued, reinstated,
24renewed, disciplined or supervised subject to such terms,
25conditions, or restrictions, and who fails to comply with such
26terms, conditions, or restrictions, shall be referred to the

 

 

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1Secretary for a determination as to whether the individual
2shall have his or her license suspended immediately, pending a
3hearing by the Department.
4    In instances in which the Secretary immediately suspends a
5person's license under this Section, a hearing on that person's
6license must be convened by the Department within 30 days after
7the suspension and completed without appreciable delay. The
8Department and Board shall have the authority to review the
9subject individual's record of treatment and counseling
10regarding the impairment to the extent permitted by applicable
11federal statutes and regulations safeguarding the
12confidentiality of medical records.
13    An individual licensed under this Act and affected under
14this Section shall be afforded an opportunity to demonstrate to
15the Department or Board that he or she can resume practice in
16compliance with acceptable and prevailing standards under the
17provisions of his or her license.
18(Source: P.A. 95-851, eff. 1-1-09; 96-856, eff. 12-31-09;
19revised 11-18-11.)
 
20    Section 99. Effective date. This Act takes effect January
211, 2013.".