HB2664 99TH GENERAL ASSEMBLY

LRB099 08628 HAF 28792 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2664

Introduced , by Rep. Robert Rita

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.866 new
225 ILCS 459/55
225 ILCS 459/56 new
225 ILCS 459/57 new

Amends the State Finance Act. Establishes the Appraisal Management Company Recovery Fund. Amends the Appraisal Management Company Registration Act. Provides that the Real Estate Appraisal Administration Disciplinary Board may charge a fee, not to exceed $800, to be paid at the time of submission of an original application and each renewal application, for a license as an appraisal management company. Provides that such fees shall be deposited in the Appraisal Management Company Recovery Fund. Provides that the Board shall administer the fund for the purpose of providing restitution to certified general and residential real estate appraisers who have suffered pecuniary loss due to appraisal management companies ceasing to be registered with the Board. Provides that the amount paid to an appraiser shall equal the actual amount of appraisal fees proven to be owed to the appraiser by the relevant appraisal management company, and any reasonable and appropriate court costs associated with determining the final judgment in favor of the appraiser. Provides that any monies remaining in the fund at the close of the fiscal year shall not lapse, but shall be carried forward into the succeeding fiscal year. Provides that the fund is not subject to sweeps, administrative charge-backs, or any other fiscal or budgetary maneuver that would transfer any amounts from the fund into any other fund of the State. Authorizes the Department of Financial and Professional Responsibility to adopt rules ensuring that the balance of the fund shall not fall below $900,000, and suspend imposing fees when the balance of the fund is $900,000. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by adding Section 5.866 as follows:

(30 ILCS 105/5.866 new)

Sec. 5.866. The Appraisal Management Company Recovery Fund.

Section 10. The Appraisal Management Company Registration Act is amended by adding Sections 55, 56 and 57 as follows:

(225 ILCS 459/55)

Sec. 55. Fees.

(a) The fees for the administration and enforcement of this Act, including, but not limited to, original registration, renewal, and restoration fees, shall be set by the Department by rule. The fees shall not be refundable.

(b) All fees and other moneys collected under this Act shall be deposited in the Appraisal Administration Fund, except as provided by Section 56 of this Act.

(Source: P.A. 97-602, eff. 8-26-11.)

(225 ILCS 459/56 new)

Sec. 56. Appraisal Management Recovery Fund.

(a) In addition to any other fee provided for under this Act, the Board may charge a fee, not to exceed $800, to be paid at the time of submission of an original application and each renewal application, for a license as an appraisal management company. Such fees shall be deposited in the Appraisal Management Company Recovery Fund.

(b) Any monies remaining in the Appraisal Management Company Recovery Fund at the close of the fiscal year shall not lapse, but shall be carried forward into the succeeding fiscal year.

(c) Notwithstanding any other law to the contrary, the Appraisal Management Company Recovery Fund is not subject to sweeps, administrative charge-backs, or any other fiscal or budgetary maneuver that would in any way transfer any amounts from the Appraisal Management Company Recovery Fund into any other fund of the State.

(225 ILCS 459/57 new)

Sec. 57. Administration of the Appraisal Management Company Recovery Fund.

(a) The Board shall administer the Appraisal Management Company Recovery Fund solely to provide restitution to each certified general real estate appraiser or certified residential real estate appraiser who has suffered pecuniary loss:

(1) as a result of an appraisal management company ceasing to be registered with the Board, either voluntarily or involuntarily;

(2) if an appraiser has received a final judgment from a court of competent jurisdiction; and

(3) if no viable alternative for full restitution is available, as determined by the Board.

(b) Each fund distribution for restitution shall be made payable to the appropriate appraiser as determined by the Board. The amount to be paid to the appraiser shall equal the actual amount of appraisal fees that are proven to be owed to the appraiser by the relevant appraisal management company and any reasonable and appropriate court costs associated with determining the final judgment in favor of the appraiser. If the amount of restitution to be paid to one or more appraisers at any time exceeds the balance in the Appraisal Management Company Recovery Fund, the Board shall:

(1) distribute as much of the restitution amount as possible, which shall be deemed to satisfy in full any claim the relevant appraisers have on payments from the Appraisal Management Company Recovery Fund; and

(2) in the case of distributions to more than one appraiser, provide for a pro rata distribution of the available fund balance, which shall be deemed to satisfy in full any claim the relevant appraisers have on payments from the Appraisal Management Company Recovery Fund.

(c) Whenever restitution is paid by the Appraisal Management Company Recovery Fund , the fund shall be subrogated to the amount of the restitution.

(d) The Department shall adopt rules, in accordance with the Administrative Procedure Act, that:

(1) ensure that the balance of the Appraisal Management Company Recovery Fund shall not fall below $900,000; and

(2) impose the fees assessed upon appraisal management companies under Section 56 of this Act whenever the balance of the fund is less than $900,000, and suspend imposing the fees when the balance of the fund is $900,000.

Section 99. Effective date. This Act takes effect upon becoming law.