Rep. Robert Rita

Filed: 3/20/2014

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 5931

2    AMENDMENT NO. ______. Amend House Bill 5931 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Real Estate Appraiser Licensing Act of 2002
5is amended by changing Sections 1-5, 1-10, 5-5, 5-10, 5-15,
65-20, 5-30, 5-35, 5-40, 5-50, 10-5, 15-10, 20-5, 20-10, 25-10,
7and 25-15 and by adding Section 5-22 as follows:
 
8    (225 ILCS 458/1-5)
9    (Section scheduled to be repealed on January 1, 2022)
10    Sec. 1-5. Legislative intent. The intent of the General
11Assembly in enacting this Act is to evaluate the competency of
12persons engaged in the appraisal of real estate in connection
13with a federally related transaction and to license and
14regulate those persons for the protection of the public.
15Additionally, it is the intent of the General Assembly for this
16Act to be consistent with the provisions of Title XI of the

 

 

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1federal Financial Institutions Reform, Recovery and
2Enforcement Act of 1989.
3(Source: P.A. 92-180, eff. 7-1-02.)
 
4    (225 ILCS 458/1-10)
5    (Section scheduled to be repealed on January 1, 2022)
6    Sec. 1-10. Definitions. As used in this Act, unless the
7context otherwise requires:
8    "Accredited college or university, junior college, or
9community college" means a college or university, junior
10college, or community college that is approved or accredited by
11the Board of Higher Education, a regional or national
12accreditation association, or by an accrediting agency that is
13recognized by the U.S. Secretary of Education.
14    "Address of record" means the designated address recorded
15by the Department in the applicant's or licensee's application
16file or license file as maintained by the Department's
17licensure maintenance unit. It is the duty of the applicant or
18licensee to inform the Department of any change of address and
19those changes must be made either through the Department's
20website or by contacting the Department.
21    "Applicant" means person who applies to the Department for
22a license under this Act.
23    "Appraisal" means (noun) the act or process of developing
24an opinion of value; an opinion of value (adjective) of or
25pertaining to appraising and related functions, such as

 

 

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1appraisal practice or valuation appraisal services.
2    "Appraisal assignment" means a valuation service provided
3as a consequence of an agreement between an appraiser and a
4client.
5    "Appraisal consulting" means the act or process of
6developing an analysis, recommendation, or opinion to solve a
7problem, where an opinion of value is a component of the
8analysis leading to the assignment results.
9    "Appraisal firm" means an appraisal entity that is 100%
10owned and controlled by a person or persons licensed in
11Illinois as a certified general real estate appraiser or a
12certified residential real estate appraiser. "Appraisal firm"
13does not include an appraisal management company.
14    "Appraisal management company" means any corporation,
15limited liability company, partnership, sole proprietorship,
16subsidiary, unit, or other business entity that directly or
17indirectly performs the following appraisal management
18services: (1) administers networks of independent contractors
19or employee appraisers to perform real estate appraisal
20assignments for clients; (2) receives requests for real estate
21appraisal services from clients and, for a fee paid by the
22client, enters into an agreement with one or more independent
23appraisers to perform the real estate appraisal services
24contained in the request; or (3) otherwise serves as a
25third-party broker of appraisal management services between
26clients and appraisers. "Appraisal management company" does

 

 

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1not include an appraisal firm.
2    "Appraisal practice" means valuation services performed by
3an individual acting as an appraiser, including, but not
4limited to, appraisal, appraisal review, or appraisal
5consulting.
6    "Appraisal report" means any communication, written or
7oral, of an appraisal or , appraisal review, or appraisal
8consulting service that is transmitted to a client upon
9completion of an assignment.
10    "Appraisal review" means the act or process of developing
11and communicating an opinion about the quality of another
12appraiser's work that was performed as part of an appraisal,
13appraisal review, or appraisal assignment.
14    "Appraisal Subcommittee" means the Appraisal Subcommittee
15of the Federal Financial Institutions Examination Council as
16established by Title XI.
17    "Appraiser" means a person who performs real estate or real
18property appraisals in accordance with USPAP.
19    "AQB" means the Appraisal Qualifications Board of the
20Appraisal Foundation.
21    "Associate real estate trainee appraiser" means an
22entry-level appraiser who holds a license of this
23classification under this Act with restrictions as to the scope
24of practice in accordance with this Act.
25    "Board" means the Real Estate Appraisal Administration and
26Disciplinary Board.

 

 

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1    "Classroom hour" means 50 minutes of instruction out of
2each 60 minute segment of coursework.
3    "Client" means the party or parties who engage an appraiser
4by employment or contract in a specific appraisal assignment.
5    "Coordinator" means the Coordinator of Real Estate
6Appraisal of the Division of Professional Regulation of the
7Department of Financial and Professional Regulation.
8    "Department" means the Department of Financial and
9Professional Regulation.
10    "Federal financial institutions regulatory agencies" means
11the Board of Governors of the Federal Reserve System, the
12Federal Deposit Insurance Corporation, the Office of the
13Comptroller of the Currency, the Consumer Financial Protection
14Bureau Office of Thrift Supervision, and the National Credit
15Union Administration.
16    "Federally related transaction" means any real
17estate-related financial transaction in which a federal
18financial institutions regulatory agency, the Department of
19Housing and Urban Development, Fannie Mae, Freddie Mae, or the
20National Credit Union Administration engages in, contracts
21for, or regulates and requires the services of an appraiser.
22    "Financial institution" means any bank, savings bank,
23savings and loan association, credit union, mortgage broker,
24mortgage banker, licensee under the Consumer Installment Loan
25Act or the Sales Finance Agency Act, or a corporate fiduciary,
26subsidiary, affiliate, parent company, or holding company of

 

 

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1any such licensee, or any institution involved in real estate
2financing that is regulated by state or federal law.
3    "Modular Course" means the Appraisal Qualifying Course
4Design conforming to the Sub Topics Course Outline contained in
5the AQB Criteria 2008.
6    "Person" means an individual, entity, sole proprietorship,
7corporation, limited liability company, partnership, and joint
8venture, foreign or domestic, except that when the context
9otherwise requires, the term may refer to more than one
10individual or other described entity.
11    "Real estate" means an identified parcel or tract of land,
12including any improvements.
13    "Real estate related financial transaction" means any
14transaction involving:
15        (1) the sale, lease, purchase, investment in, or
16    exchange of real property, including interests in property
17    or the financing thereof;
18        (2) the refinancing of real property or interests in
19    real property; and
20        (3) the use of real property or interest in property as
21    security for a loan or investment, including mortgage
22    backed securities.
23    "Real property" means the interests, benefits, and rights
24inherent in the ownership of real estate.
25    "Secretary" means the Secretary of Financial and
26Professional Regulation.

 

 

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

 

 

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1Appraisal Practice as promulgated by the Appraisal Standards
2Board pursuant to Title XI and by rule.
3    "Valuation services" means services pertaining to aspects
4of property value.
5(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
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
24person who violates this subsection is guilty of a Class A
25misdemeanor for a first offense and a Class 4 felony for any

 

 

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1subsequent offense.
2    (b) It is unlawful for a person, other than a person who
3holds a valid license issued pursuant to this Act as a State
4certified general real estate appraiser, a State certified
5residential real estate appraiser, or an associate real estate
6trainee appraiser to use these titles or any other title,
7designation, or abbreviation likely to create the impression
8that the person is licensed as a real estate appraiser pursuant
9to this Act. A person who violates this subsection is guilty of
10a Class A misdemeanor for a first offense and a Class 4 felony
11for any subsequent offense.
12    (c) The licensing requirements of this Act do not require a
13person who holds a valid license pursuant to the Real Estate
14License Act of 2000, to be licensed as a real estate appraiser
15under this Act, unless that person is providing or attempting
16to provide an appraisal report, as defined in Section 1-10 of
17this Act, in connection with a federally-related transaction.
18Nothing in this Act shall prohibit a person who holds a valid
19license under the Real Estate License Act of 2000 from
20performing a comparative market analysis or broker price
21opinion for compensation, provided that the person does not
22hold himself out as being a licensed real estate appraiser.
23    (d) Nothing in this Act shall preclude a State certified
24general real estate appraiser, a State certified residential
25real estate appraiser, or an associate real estate trainee
26appraiser from rendering appraisals for or on behalf of a

 

 

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1partnership, association, corporation, firm, or group.
2However, no State appraisal license or certification shall be
3issued under this Act to a partnership, association,
4corporation, firm, or group.
5    (e) This Act does not apply to a county assessor, township
6assessor, multi-township assessor, county supervisor of
7assessments, or any deputy or employee of any county assessor,
8township assessor, multi-township assessor, or county
9supervisor of assessments who is performing his or her
10respective duties in accordance with the provisions of the
11Property Tax Code.
12    (e-5) For the purposes of this Act, valuation waivers may
13be prepared by a licensed appraiser notwithstanding any other
14provision of this Act, and the following types of valuations
15are not appraisals and may not be represented to be appraisals,
16and a license is not required under this Act to perform such
17valuations if the valuations are performed by (1) an employee
18of the Illinois Department of Transportation who has completed
19a minimum of 45 hours of course work in real estate appraisal,
20including the principals of real estate appraisals, appraisal
21of partial acquisitions, easement valuation, reviewing
22appraisals in eminent domain, appraisal for federal aid highway
23programs, and appraisal review for federal aid highway programs
24and has at least 2 years' experience in a field closely related
25to real estate or (2) a county engineer who is a registered
26professional engineer under the Professional Engineering

 

 

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1Practice Act of 1989, under the following circumstances:
2        (A) a valuation waiver in an amount not to exceed
3    $10,000 prepared pursuant to the federal Uniform
4    Relocation Assistance and Real Property Acquisition
5    Policies Act of 1970, or prepared pursuant to the federal
6    Uniform Relocation Assistance and Real Property
7    Acquisition for Federal and Federally-Assisted Programs
8    regulations and which is performed by an employee of the
9    Illinois Department of Transportation and co-signed, with
10    a license number affixed, by another employee of the
11    Illinois Department of Transportation who is a registered
12    professional engineer under the Professional Engineering
13    Practice Act of 1989; and
14        (B) 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 a county engineer who
21    is employed by a county and is a registered professional
22    engineer under the Professional Engineering Practice Act
23    of 1989. In addition to his or her signature, the county
24    engineer shall affix his or her license number to the
25    valuation.
26    Nothing in this subsection (e-5) shall be construed to

 

 

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1allow the State of Illinois, a political subdivision thereof,
2or any public body to acquire real estate by eminent domain in
3any manner other than provided for in the Eminent Domain Act.
4    (f) A State real estate appraisal certification or license
5is not required under this Act for any of the following:
6        (1) A person, partnership, association, or corporation
7    that performs appraisals of property owned by that person,
8    partnership, association, or corporation for the sole use
9    of that person, partnership, association, or corporation.
10        (2) A court-appointed commissioner who conducts an
11    appraisal pursuant to a judicially ordered evaluation of
12    property.
13However, any person who is certified or licensed under this Act
14and who performs any of the activities set forth in this
15subsection (f) must comply with the provisions of this Act. A
16person who violates this subsection (f) is guilty of a Class A
17misdemeanor for a first offense and a Class 4 felony for any
18subsequent offense.
19    (g) This Act does not apply to an employee, officer,
20director, or member of a credit or loan committee of a
21financial institution or any other person engaged by a
22financial institution when performing an evaluation of real
23property for the sole use of the financial institution in a
24transaction for which the financial institution would not be
25required to use the services of a State licensed or State
26certified appraiser pursuant to federal regulations adopted

 

 

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1under Title XI of the federal Financial Institutions Reform,
2Recovery, and Enforcement Act of 1989, nor does this Act apply
3to the procurement of an automated valuation model.
4    "Automated valuation model" means an automated system that
5is used to derive a property value through the use of publicly
6available property records and various analytic methodologies
7such as comparable sales prices, home characteristics, and
8historical home price appreciations.
9(Source: P.A. 97-602, eff. 8-26-11; 98-444, eff. 8-16-13.)
 
10    (225 ILCS 458/5-10)
11    (Section scheduled to be repealed on January 1, 2022)
12    Sec. 5-10. Application for State certified general real
13estate appraiser.
14    (a) Every person who desires to obtain a State certified
15general real estate appraiser license shall:
16        (1) apply to the Department on forms provided by the
17    Department accompanied by the required fee;
18        (2) be at least 18 years of age;
19        (3) (blank);
20        (4) personally take and pass an examination authorized
21    by the Department and endorsed by the AQB;
22        (5) prior to taking the examination, provide evidence
23    to the Department, in Modular Course format, with each
24    module conforming to the Required Core Curriculum Real
25    Property Appraiser Qualification Criteria established and

 

 

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1    adopted by the AQB, that he or she has successfully
2    completed the prerequisite classroom hours of instruction
3    in appraising as established by the AQB and by rule; and
4        (6) prior to taking the examination, provide evidence
5    to the Department that he or she has successfully completed
6    the prerequisite experience and educational requirements
7    in appraising as established by AQB and by rule.
8    (b) Applicants must provide evidence to the Department of
9(i) holding a Bachelor's degree or higher from an accredited
10college or university. or (ii) successfully passing 30 semester
11credit hours or the equivalent from an accredited college or
12university, junior college, or community college in the
13following subjects:
14        (1) English composition;
15        (2) micro economics;
16        (3) macro economics;
17        (4) finance;
18        (5) algebra, geometry, or higher mathematics;
19        (6) statistics;
20        (7) introduction to computers-word processing and
21    spreadsheets;
22        (8) business or real estate law; and
23        (9) two elective courses in accounting, geography,
24    agricultural economics, business management, or real
25    estate.
26    If an accredited college or university accepts the

 

 

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1College-Level Examination Program (CLEP) examinations and
2issues a transcript for the exam showing its approval, it will
3be considered credit for the college course for the purposes of
4meeting the requirements of this subsection (b).
5(Source: P.A. 96-844, eff. 12-23-09; 96-1000, eff. 7-2-10.)
 
6    (225 ILCS 458/5-15)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 5-15. Application for State certified residential
9real estate appraiser. (a) Every person who desires to obtain a
10State certified residential real estate appraiser license
11shall:
12    (1) apply to the Department on forms provided by the
13Department accompanied by the required fee;
14    (2) be at least 18 years of age;
15    (3) (blank);
16    (4) personally take and pass an examination authorized by
17the Department and endorsed by the AQB;
18    (5) prior to taking the examination, provide evidence to
19the Department, in Modular Course format, with each module
20conforming to the Required Core Curriculum Real Property
21Appraiser Qualification Criteria established and adopted by
22the AQB, that he or she has successfully completed the
23prerequisite classroom hours of instruction in appraising as
24established by the AQB and by rule; and
25    (6) prior to taking the examination, provide evidence to

 

 

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1the Department that he or she has successfully completed the
2prerequisite experience and educational requirements as
3established by AQB and by rule.
4    (b) Applicants must provide evidence to the Department of
5(i) holding an Associate's degree or its equivalent from an
6accredited college or university, junior college, or community
7college or (ii) successfully passing 21 semester credit hours
8or the equivalent from an accredited college or university,
9junior college, or community college in the following subjects:
10        (1) English composition;
11        (2) principals of economics (micro or macro);
12        (3) finance;
13        (4) algebra, geometry, or higher mathematics;
14        (5) statistics;
15        (6) introduction to computers-word processing and
16    spreadsheets; and
17        (7) business or real estate law.
18    If an accredited college or university accepts the
19College-Level Examination Program (CLEP) examinations and
20issues a transcript for the exam showing its approval, it will
21be considered credit for the college course for the purposes of
22the requirements of this subsection (b).
23(Source: P.A. 96-844, eff. 12-23-09.)
 
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 accompanied by the required fee;
6        (2) be at least 18 years of age;
7        (3) provide evidence of having attained a high school
8    diploma or completed an equivalent course of study as
9    determined by an examination conducted or accepted by the
10    Illinois State Board of Education;
11        (4) personally take and pass an examination authorized
12    by the Department; and
13        (5) prior to taking the examination, provide evidence
14    to the Department that he or she has successfully completed
15    the prerequisite qualifying and any conditional education
16    requirements classroom hours of instruction in appraising
17    as established by rule.
18(Source: P.A. 96-844, eff. 12-23-09.)
 
19    (225 ILCS 458/5-22 new)
20    Sec. 5-22. Criminal history records check. Each applicant
21for licensure by examination or restoration shall have his or
22her fingerprints submitted to the Department of State Police in
23an electronic format that complies with the form and manner for
24requesting and furnishing criminal history record information
25as prescribed by the Department of State Police. These

 

 

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1fingerprints shall be checked against the Department of State
2Police and Federal Bureau of Investigation criminal history
3record databases now and hereafter filed. The Department of
4State Police shall charge applicants a fee for conducting the
5criminal history records check, which shall be deposited into
6the State Police Services Fund and shall not exceed the actual
7cost of the records check. The Department of State Police shall
8furnish, pursuant to positive identification, records of
9Illinois convictions to the Department. The Department may
10require applicants to pay a separate fingerprinting fee, either
11to the Department or to a vendor. The Department, in its
12discretion, may allow an applicant who does not have reasonable
13access to a designated vendor to provide his or her
14fingerprints in an alternative manner. The Department may adopt
15any rules necessary to implement this Section.
 
16    (225 ILCS 458/5-30)
17    (Section scheduled to be repealed on January 1, 2022)
18    Sec. 5-30. Endorsement. The Department may issue an
19appraiser license, without the required examination, to an
20applicant licensed by another state, territory, possession of
21the United States, or the District of Columbia, if (i) the
22licensing requirements of that licensing authority are, on the
23date of licensure, substantially equal to the requirements set
24forth under this Act or to a person who, at the time of his or
25her application, possessed individual qualifications that were

 

 

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1substantially equivalent to the requirements of this Act or
2(ii) the applicant provides the Department with evidence of
3good standing from the Appraisal Subcommittee National
4Registry report and a criminal history records check in
5accordance with Section 5-22. An applicant under this Section
6shall pay all of the required fees.
7(Source: P.A. 96-844, eff. 12-23-09.)
 
8    (225 ILCS 458/5-35)
9    (Section scheduled to be repealed on January 1, 2022)
10    Sec. 5-35. Qualifying Pre-license education requirements.
11    (a) The prerequisite classroom hours necessary for a person
12to be approved to sit for the examination for licensure as a
13State certified general real estate appraiser or a State
14certified residential real estate appraiser shall be in
15accordance with AQB criteria and established by rule.
16    (b) The prerequisite classroom hours necessary for a person
17to sit for the examination for licensure as an associate real
18estate trainee appraiser shall be established by rule.
19(Source: P.A. 96-844, eff. 12-23-09.)
 
20    (225 ILCS 458/5-40)
21    (Section scheduled to be repealed on January 1, 2022)
22    Sec. 5-40. Qualifying Pre-license experience requirements.
23The prerequisite experience necessary for a person to be
24approved to sit for the examination for licensure as a State

 

 

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1certified general real estate appraiser or a State certified
2residential real estate appraiser shall be established by rule.
3(Source: P.A. 96-844, eff. 12-23-09.)
 
4    (225 ILCS 458/5-50)
5    (Section scheduled to be repealed on January 1, 2022)
6    Sec. 5-50. Temporary practice permits. A nonresident
7appraiser who holds a valid appraiser license in another state,
8territory, possession of the United States, or the District of
9Columbia may be granted a temporary practice permit to practice
10as an appraiser in the State of Illinois upon making an
11application and paying the applicable fees pursuant to
12Appraisal Subcommittee policy statements and as established by
13rule.
14(Source: P.A. 92-180, eff. 7-1-02.)
 
15    (225 ILCS 458/10-5)
16    (Section scheduled to be repealed on January 1, 2022)
17    Sec. 10-5. Scope of practice.
18    (a) This Act does not limit a State certified general real
19estate appraiser in his or her scope of practice in a federally
20related transaction. A certified general real estate appraiser
21may independently provide appraisal services, review, or
22consulting relating to any type of property for which he or she
23has experience or is competent. All such appraisal practice
24must be made in accordance with the provisions of USPAP,

 

 

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1criteria established by the AQB, and rules adopted pursuant to
2this Act.
3    (b) A State certified residential real estate appraiser is
4limited in his or her scope of practice to the provisions of
5USPAP, criteria established by the AQB, and the rules adopted
6pursuant to this Act.
7    (c) A State certified residential real estate appraiser
8must have a State certified general real estate appraiser who
9holds a valid license under this Act co-sign all appraisal
10reports on properties other than one to 4 units of residential
11real property without regard to transaction value or
12complexity.
13    (d) An associate real estate trainee appraiser is limited
14in his or her scope of practice in all transactions in
15accordance with the provisions of USPAP, this Act, and the
16rules adopted pursuant to this Act. In addition, an associate
17real estate trainee appraiser shall be required to have a State
18certified general real estate appraiser or State certified
19residential real estate appraiser who holds a valid license
20under this Act to co-sign all appraisal reports. A The
21associate real estate trainee appraiser licensee may not have
22more than 3 supervising appraisers, and a supervising appraiser
23may not supervise more than 3 associate real estate trainee
24appraisers at one time. Associate real estate trainee
25appraisers shall not be limited in the number of concurrent
26supervising appraisers. A chronological appraisal log on an

 

 

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1approved log form shall be maintained by the associate real
2estate trainee appraiser and shall be made available to the
3Department upon request.
4(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
5    (225 ILCS 458/15-10)
6    (Section scheduled to be repealed on January 1, 2022)
7    Sec. 15-10. Grounds for disciplinary action.
8    (a) The Department may suspend, revoke, refuse to issue,
9renew, or restore a license and may reprimand place on
10probation or administrative supervision, or take any
11disciplinary or non-disciplinary action, including imposing
12conditions limiting the scope, nature, or extent of the real
13estate appraisal practice of a licensee or reducing the
14appraisal rank of a licensee, and may impose an administrative
15fine not to exceed $25,000 for each violation upon a licensee
16for any one or combination of the following:
17        (1) Procuring or attempting to procure a license by
18    knowingly making a false statement, submitting false
19    information, engaging in any form of fraud or
20    misrepresentation, or refusing to provide complete
21    information in response to a question in an application for
22    licensure.
23        (2) Failing to meet the minimum qualifications for
24    licensure as an appraiser established by this Act.
25        (3) Paying money, other than for the fees provided for

 

 

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1    by this Act, or anything of value to a member or employee
2    of the Board or the Department to procure licensure under
3    this Act.
4        (4) Conviction by plea of guilty or nolo contendere,
5    finding of guilt, jury verdict, or entry of judgment or by
6    sentencing of any crime, including, but not limited to,
7    convictions, preceding sentences of supervision,
8    conditional discharge, or first offender probation, under
9    the laws of any jurisdiction of the United States: (i) that
10    is a felony; or (ii) that is a misdemeanor, an essential
11    element of which is dishonesty, or that is directly related
12    to the practice of the profession.
13        (5) Committing an act or omission involving
14    dishonesty, fraud, or misrepresentation with the intent to
15    substantially benefit the licensee or another person or
16    with intent to substantially injure another person as
17    defined by rule.
18        (6) Violating a provision or standard for the
19    development or communication of real estate appraisals as
20    provided in Section 10-10 of this Act or as defined by
21    rule.
22        (7) Failing or refusing without good cause to exercise
23    reasonable diligence in developing, reporting, or
24    communicating an appraisal, as defined by this Act or by
25    rule.
26        (8) Violating a provision of this Act or the rules

 

 

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1    adopted pursuant to this Act.
2        (9) Having been disciplined by another state, the
3    District of Columbia, a territory, a foreign nation, a
4    governmental agency, or any other entity authorized to
5    impose discipline if at least one of the grounds for that
6    discipline is the same as or the equivalent of one of the
7    grounds for which a licensee may be disciplined under this
8    Act.
9        (10) Engaging in dishonorable, unethical, or
10    unprofessional conduct of a character likely to deceive,
11    defraud, or harm the public.
12        (11) Accepting an appraisal assignment when the
13    employment itself is contingent upon the appraiser
14    reporting a predetermined estimate, analysis, or opinion
15    or when the fee to be paid is contingent upon the opinion,
16    conclusion, or valuation reached or upon the consequences
17    resulting from the appraisal assignment.
18        (12) Developing valuation conclusions based on the
19    race, color, religion, sex, national origin, ancestry,
20    age, marital status, family status, physical or mental
21    disability, or unfavorable military discharge, as defined
22    under the Illinois Human Rights Act, of the prospective or
23    present owners or occupants of the area or property under
24    appraisal.
25        (13) Violating the confidential nature of government
26    records to which the licensee gained access through

 

 

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1    employment or engagement as an appraiser by a government
2    agency.
3        (14) Being adjudicated liable in a civil proceeding on
4    grounds of fraud, misrepresentation, or deceit. In a
5    disciplinary proceeding based upon a finding of civil
6    liability, the appraiser shall be afforded an opportunity
7    to present mitigating and extenuating circumstances, but
8    may not collaterally attack the civil adjudication.
9        (15) Being adjudicated liable in a civil proceeding for
10    violation of a state or federal fair housing law.
11        (16) Engaging in misleading or untruthful advertising
12    or using a trade name or insignia of membership in a real
13    estate appraisal or real estate organization of which the
14    licensee is not a member.
15        (17) Failing to fully cooperate with a Department
16    investigation by knowingly making a false statement,
17    submitting false or misleading information, or refusing to
18    provide complete information in response to written
19    interrogatories or a written request for documentation
20    within 30 days of the request.
21        (18) Failing to include within the certificate of
22    appraisal for all written appraisal reports the
23    appraiser's license number and licensure title. All
24    appraisers providing significant contribution to the
25    development and reporting of an appraisal must be disclosed
26    in the appraisal report. It is a violation of this Act for

 

 

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1    an appraiser to sign a report, transmittal letter, or
2    appraisal certification knowing that a person providing a
3    significant contribution to the report has not been
4    disclosed in the appraisal report.
5        (19) Violating the terms of a disciplinary order or
6    consent to administrative supervision order.
7        (20) Habitual or excessive use or addiction to alcohol,
8    narcotics, stimulants, or any other chemical agent or drug
9    that results in a licensee's inability to practice with
10    reasonable judgment, skill, or safety.
11        (21) A physical or mental illness or disability which
12    results in the inability to practice under this Act with
13    reasonable judgment, skill, or safety.
14        (22) Gross negligence in developing an appraisal or in
15    communicating an appraisal or failing to observe one or
16    more of the Uniform Standards of Professional Appraisal
17    Practice.
18        (23) A pattern of practice or other behavior that
19    demonstrates incapacity or incompetence to practice under
20    this Act.
21        (24) Using or attempting to use the seal, certificate,
22    or license of another as his or her own; falsely
23    impersonating any duly licensed appraiser; using or
24    attempting to use an inactive, expired, suspended, or
25    revoked license; or aiding or abetting any of the
26    foregoing.

 

 

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1        (25) Solicitation of professional services by using
2    false, misleading, or deceptive advertising.
3        (26) Making a material misstatement in furnishing
4    information to the Department.
5        (27) Failure to furnish information to the Department
6    upon written request.
7    (b) The Department may reprimand suspend, revoke, or refuse
8to issue or renew an education provider's license, may
9reprimand, place on probation, or otherwise discipline an
10education provider and may suspend or revoke the course
11approval of any course offered by an education provider and may
12impose an administrative fine not to exceed $25,000 upon an
13education provider, for any of the following:
14        (1) Procuring or attempting to procure licensure by
15    knowingly making a false statement, submitting false
16    information, engaging in any form of fraud or
17    misrepresentation, or refusing to provide complete
18    information in response to a question in an application for
19    licensure.
20        (2) Failing to comply with the covenants certified to
21    on the application for licensure as an education provider.
22        (3) Committing an act or omission involving
23    dishonesty, fraud, or misrepresentation or allowing any
24    such act or omission by any employee or contractor under
25    the control of the provider.
26        (4) Engaging in misleading or untruthful advertising.

 

 

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1        (5) Failing to retain competent instructors in
2    accordance with rules adopted under this Act.
3        (6) Failing to meet the topic or time requirements for
4    course approval as the provider of a qualifying pre-license
5    curriculum course or a continuing education course.
6        (7) Failing to administer an approved course using the
7    course materials, syllabus, and examinations submitted as
8    the basis of the course approval.
9        (8) Failing to provide an appropriate classroom
10    environment for presentation of courses, with
11    consideration for student comfort, acoustics, lighting,
12    seating, workspace, and visual aid material.
13        (9) Failing to maintain student records in compliance
14    with the rules adopted under this Act.
15        (10) Failing to provide a certificate, transcript, or
16    other student record to the Department or to a student as
17    may be required by rule.
18        (11) Failing to fully cooperate with an investigation
19    by the Department by knowingly making a false statement,
20    submitting false or misleading information, or refusing to
21    provide complete information in response to written
22    interrogatories or a written request for documentation
23    within 30 days of the request.
24    (c) In appropriate cases, the Department may resolve a
25complaint against a licensee through the issuance of a Consent
26to Administrative Supervision order. A licensee subject to a

 

 

09800HB5931ham001- 29 -LRB098 20319 ZMM 55942 a

1Consent to Administrative Supervision order shall be
2considered by the Department as an active licensee in good
3standing. This order shall not be reported or considered by the
4Department to be a discipline of the licensee. The records
5regarding an investigation and a Consent to Administrative
6Supervision order shall be considered confidential and shall
7not be released by the Department except as mandated by law. A
8complainant shall be notified if his or her complaint has been
9resolved by a Consent to Administrative Supervision order.
10(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11;
1197-877, eff. 8-2-12.)
 
12    (225 ILCS 458/20-5)
13    (Section scheduled to be repealed on January 1, 2022)
14    Sec. 20-5. Education providers.
15    (a) Beginning July 1, 2002, only education providers
16licensed or otherwise approved by the Department may provide
17the qualifying pre-license and continuing education courses
18required for licensure under this Act.
19    (b) A person or entity seeking to be licensed as an
20education provider under this Act shall provide satisfactory
21evidence of the following:
22        (1) a sound financial base for establishing,
23    promoting, and delivering the necessary courses;
24        (2) a sufficient number of qualified instructors;
25        (3) adequate support personnel to assist with

 

 

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1    administrative matters and technical assistance;
2        (4) a written policy dealing with procedures for
3    management of grievances and fee refunds;
4        (5) a qualified administrator, who is responsible for
5    the administration of the education provider, courses, and
6    the actions of the instructors; and
7        (6) any other requirements as provided by rule.
8    (c) All applicants for an education provider's license
9shall make initial application to the Department on forms
10provided by the Department and pay the appropriate fee as
11provided by rule. The term, expiration date, and renewal of an
12education provider's license shall be established by rule.
13    (d) An education provider shall provide each successful
14course participant with a certificate of completion signed by
15the school administrator. The format and content of the
16certificate shall be specified by rule.
17    (e) All education providers shall provide to the Department
18a monthly roster of all successful course participants as
19provided by rule.
20(Source: P.A. 96-844, eff. 12-23-09.)
 
21    (225 ILCS 458/20-10)
22    (Section scheduled to be repealed on January 1, 2022)
23    Sec. 20-10. Course approval.
24    (a) Only courses offered by licensed education providers
25and approved by the Department, courses approved by the AQB, or

 

 

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1courses approved by jurisdictions regulated by the Appraisal
2Subcommittee shall be used to meet the requirements of this Act
3and rules.
4    (b) An education provider licensed under this Act may
5submit courses to the Department for approval. The criteria,
6requirements, and fees for courses shall be established by rule
7in accordance with this Act, Title XI, and the criteria
8established 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 regulated by the Appraisal Subcommittee, (ii) holds a
18valid teaching certificate issued by the State of Illinois,
19(iii) is a faculty member in good standing with an accredited
20college or university or community college, or (iv) is an
21approved appraisal instructor from an appraisal organization
22that is a member of the Appraisal Foundation.
23(Source: P.A. 96-844, eff. 12-23-09.)
 
24    (225 ILCS 458/25-10)
25    (Section scheduled to be repealed on January 1, 2022)

 

 

09800HB5931ham001- 32 -LRB098 20319 ZMM 55942 a

1    Sec. 25-10. Real Estate Appraisal Administration and
2Disciplinary Board; appointment.
3    (a) There is hereby created the Real Estate Appraisal
4Administration and Disciplinary Board. The Board shall be
5composed of 10 persons appointed by the Governor, plus the
6Coordinator of the Real Estate Appraisal Division. Members
7shall be appointed to the Board subject to the following
8conditions:
9        (1) All appointed members shall have been residents and
10    citizens of this State for at least 5 years prior to the
11    date of appointment.
12        (2) The appointed membership of the Board should
13    reasonably reflect the geographic distribution of the
14    population of the State.
15        (3) Four appointed members shall have been actively
16    engaged and currently licensed as State certified general
17    real estate appraisers for a period of not less than 5
18    years. One shall be actively engaged in the appraisal of
19    commercial agricultural property.
20        (4) Four Two appointed members shall have been actively
21    engaged and currently licensed as State certified
22    residential real estate appraisers for a period of not less
23    than 5 years.
24        (5) One of the Two appointed members appointed under
25    subsection (3) or (4) shall hold a valid license as a real
26    estate broker or a managing broker for at least 3 10 years

 

 

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1    prior to the date of the appointment, one of whom shall
2    hold a valid State certified general real estate appraiser
3    license issued under this Act or a predecessor Act for a
4    period of at least 5 years prior to the appointment and one
5    of whom shall hold a valid State certified residential real
6    estate appraiser license issued under this Act or a
7    predecessor Act for a period of at least 5 years prior to
8    the appointment.
9        (6) One appointed member shall be a representative of a
10    financial institution, as evidenced by his or her
11    employment with a financial institution.
12        (7) One appointed member shall represent the interests
13    of the general public. This member or his or her spouse
14    shall not be licensed under this Act nor be employed by or
15    have any interest in an appraisal business, appraisal
16    management company, real estate brokerage business, or a
17    financial institution.
18    In making appointments as provided in paragraphs (3) and
19(4) of this subsection, the Governor shall give due
20consideration to recommendations by members and organizations
21representing the profession.
22    In making the appointments as provided in paragraph (5) of
23this subsection, the Governor shall give due consideration to
24the recommendations by members and organizations representing
25the real estate industry.
26    In making the appointment as provided in paragraph (6) of

 

 

09800HB5931ham001- 34 -LRB098 20319 ZMM 55942 a

1this subsection, the Governor shall give due consideration to
2the recommendations by members and organizations representing
3financial institutions.
4    (b) The term for members of the Board shall be 4 years, and
5each member shall serve until his or her successor is appointed
6and qualified. No member shall serve more than 10 years in a
7lifetime.
8    (c) The Governor may terminate the appointment of a member
9for cause that, in the opinion of the Governor, reasonably
10justifies the termination. Cause for termination may include,
11without limitation, misconduct, incapacity, neglect of duty,
12or missing 4 Board meetings during any one calendar year.
13    (d) A majority of the Board members shall constitute a
14quorum. A vacancy in the membership of the Board shall not
15impair the right of a quorum to exercise all of the rights and
16perform all of the duties of the Board.
17    (e) The Board shall meet at least quarterly and may be
18convened by the Chairperson, Vice-Chairperson, or 3 members of
19the Board upon 10 days written notice.
20    (f) The Board shall, annually at the first meeting of the
21fiscal year, elect a Chairperson and Vice-Chairperson from its
22members. The Chairperson shall preside over the meetings and
23shall coordinate with the Coordinator in developing and
24distributing an agenda for each meeting. In the absence of the
25Chairperson, the Vice-Chairperson shall preside over the
26meeting.

 

 

09800HB5931ham001- 35 -LRB098 20319 ZMM 55942 a

1    (g) The Coordinator of the Real Estate Appraisal Division
2shall serve as a member of the Board without vote.
3    (h) The Board shall advise and make recommendations to the
4Department on the education and experience qualifications of
5any applicant for initial licensure as a State certified
6general real estate appraiser or a State certified residential
7real estate appraiser. The Department shall not make any
8decisions concerning education or experience qualifications of
9an applicant for initial licensure as a State certified general
10real estate appraiser or a State certified residential real
11estate appraiser without having first received the advice and
12recommendation of the Board and shall give due consideration to
13all such advice and recommendations; however, if the Board does
14not render advice or make a recommendation within a reasonable
15amount of time, then the Department may render a decision.
16    (i) Except as provided in Section 15-17 of this Act, the
17Board shall hear and make recommendations to the Secretary on
18disciplinary matters that require a formal evidentiary
19hearing. The Secretary shall give due consideration to the
20recommendations of the Board involving discipline and
21questions involving standards of professional conduct of
22licensees.
23    (j) The Department shall seek and the Board shall provide
24recommendations to the Department consistent with the
25provisions of this Act and for the administration and
26enforcement of all rules adopted pursuant to this Act. The

 

 

09800HB5931ham001- 36 -LRB098 20319 ZMM 55942 a

1Department shall give due consideration to such
2recommendations prior to adopting rules.
3    (k) The Department shall seek and the Board shall provide
4recommendations to the Department on the approval of all
5courses submitted to the Department pursuant to this Act and
6the rules adopted pursuant to this Act. The Department shall
7not approve any courses without having first received the
8recommendation of the Board and shall give due consideration to
9such recommendations prior to approving and licensing courses;
10however, if the Board does not make a recommendation within a
11reasonable amount of time, then the Department may approve
12courses.
13    (l) Each voting member of the Board shall receive a per
14diem stipend in an amount to be determined by the Secretary.
15Each member shall be paid his or her necessary expenses while
16engaged in the performance of his or her duties.
17    (m) Members of the Board shall be immune from suit in an
18action based upon any disciplinary proceedings or other acts
19performed in good faith as members of the Board.
20    (n) If the Department disagrees with any advice or
21recommendation provided by the Board under this Section to the
22Secretary or the Department, then notice of such disagreement
23must be provided to the Board by the Department.
24    (o) Upon resolution adopted at any Board meeting, the
25exercise of any Board function, power, or duty enumerated in
26this Section or in subsection (d) of Section 15-10 of this Act

 

 

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1may be suspended. The exercise of any suspended function,
2power, or duty of the Board may be reinstated by a resolution
3adopted at a subsequent Board meeting. Any resolution adopted
4pursuant to this Section shall take effect immediately.
5(Source: P.A. 96-844, eff. 12-23-09.)
 
6    (225 ILCS 458/25-15)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 25-15. Coordinator of Real Estate Appraisal;
9appointment; duties. The Secretary shall appoint, subject to
10the Personnel Code, a Coordinator of Real Estate Appraisal. In
11appointing the Coordinator, the Secretary shall give due
12consideration to recommendations made by members,
13organizations, and associations of the real estate appraisal
14industry. On or after January 1, 2010, the Coordinator must
15hold a current, valid State certified general real estate
16appraiser license. The Coordinator shall not practice or a
17State certified residential real estate appraiser license,
18which shall be surrendered to the Department during the term of
19his or her appointment. The Coordinator must take the 30-hour
20National Instructors Course on Uniform Standards of
21Professional Appraisal Practice. The Coordinator Coordinator's
22license shall be returned in the same status as it was on the
23date of surrender, credited with all fees that came due during
24his or her employment. The Coordinator shall:
25        (1) serve as a member of the Real Estate Appraisal

 

 

09800HB5931ham001- 38 -LRB098 20319 ZMM 55942 a

1    Administration and Disciplinary Board without vote;
2        (2) be the direct liaison between the Department, the
3    profession, and the real estate appraisal industry
4    organizations and associations;
5        (3) prepare and circulate to licensees such
6    educational and informational material as the Department
7    deems necessary for providing guidance or assistance to
8    licensees;
9        (4) appoint necessary committees to assist in the
10    performance of the functions and duties of the Department
11    under this Act;
12        (5) (blank); and
13        (6) be authorized to investigate and determine the
14    facts of a complaint; the coordinator may interview
15    witnesses, the complainant, and any licensees involved in
16    the alleged matter and make a recommendation as to the
17    findings of fact.
18(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)".