Sen. William R. Haine

Filed: 5/6/2015





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2    AMENDMENT NO. ______. Amend House Bill 3333 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The State Finance Act is amended by adding
5Section 5.866 as follows:
6    (30 ILCS 105/5.866 new)
7    Sec. 5.866. The Appraisal Management Company Recovery
9    Section 10. The Real Estate License Act of 2000 is amended
10by changing Section 10-45 as follows:
11    (225 ILCS 454/10-45)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 10-45. Broker price opinions and comparative market



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1    (a) A broker price opinion or comparative market analysis
2may be prepared or provided by a real estate broker or managing
3broker for any of the following:
4        (1) an existing or potential buyer or seller of an
5    interest in real estate;
6        (2) an existing or potential lessor or lessee of an
7    interest in real estate;
8        (3) a third party making decisions or performing due
9    diligence related to the potential listing, offering,
10    sale, option, lease, or acquisition price of an interest in
11    real estate; or
12        (4) an existing or potential lienholder or other third
13    party for any purpose other than as the primary basis to
14    determine the market value of an interest in real estate
15    for the purpose of a mortgage loan origination by a
16    financial institution secured by such real estate.
17    (b) A broker price opinion or comparative market analysis
18shall be in writing either on paper or electronically and shall
19include the following provisions:
20        (1) a statement of the intended purpose of the broker
21    price opinion or comparative market analysis;
22        (2) a brief description of the interest in real estate
23    that is the subject of the broker price opinion or
24    comparative market analysis;
25        (3) a brief description of the methodology used to
26    develop the broker price opinion or comparative market



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1    analysis;
2        (4) any assumptions or limiting conditions;
3        (5) a disclosure of any existing or contemplated
4    interest of the broker or managing broker in the interest
5    in real estate that is the subject of the broker price
6    opinion or comparative market analysis;
7        (6) the name, license number, and signature of the
8    broker or managing broker that developed the broker price
9    opinion or comparative market analysis;
10        (7) a statement in substantially the following form:
11        "This is a broker price opinion/comparative market
12    analysis, not an appraisal of the market value of the real
13    estate, and was prepared by a licensed real estate broker
14    or managing broker who was , not acting as by a State
15    certified real estate appraiser."; and
16        (8) such other items as the broker or managing broker
17    may deem appropriate.
18(Source: P.A. 98-1109, eff. 1-1-15.)
19    Section 15. The Appraisal Management Company Registration
20Act is amended by changing Sections 55 and 65 and by adding
21Sections 56 and 57 as follows:
22    (225 ILCS 459/55)
23    Sec. 55. Fees.
24    (a) The fees for the administration and enforcement of this



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1Act, including, but not limited to, original registration,
2renewal, and restoration fees, shall be set by the Department
3by rule. The fees shall not be refundable.
4    (b) All fees and other moneys collected under this Act
5shall be deposited in the Appraisal Administration Fund, except
6as provided by Section 56 of this Act.
7(Source: P.A. 97-602, eff. 8-26-11.)
8    (225 ILCS 459/56 new)
9    Sec. 56. Appraisal Management Company Recovery Fund.
10    (a) In addition to any other fee provided for under this
11Act, the Secretary, upon the recommendation of the Board, may
12charge a fee not to exceed $500 to be paid at the time of
13submission of an original application and each renewal
14application to register as an appraisal management company.
15These fees shall be deposited in the Appraisal Management
16Company Recovery Fund.
17    (b) Any moneys remaining in the Appraisal Management
18Company Recovery Fund at the close of the fiscal year shall not
19lapse, but shall be carried forward into the succeeding fiscal
21    (c) Notwithstanding any other law to the contrary, the
22Appraisal Management Company Recovery Fund is not subject to
23sweeps, administrative charge-backs, or any other fiscal or
24budgetary maneuver that would in any way transfer any amounts
25from the Appraisal Management Company Recovery Fund into any



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1other fund of the State.
2    (225 ILCS 459/57 new)
3    Sec. 57. Administration of the Appraisal Management
4Company Recovery Fund.
5    (a) The Department, with the assistance of the Board,
6shall, subject to appropriation, administer the Appraisal
7Management Company Recovery Fund solely to provide restitution
8to each State-certified general real estate appraiser or
9State-certified residential real estate appraiser who has
10suffered pecuniary loss as provided in subsection (b) of this
11Section or to award the Department expenses, fines, or fees:
12        (1) as a result of an appraisal management company
13    ceasing to be registered with the Department, either
14    voluntarily or involuntarily or having been determined as
15    being bankrupt by a federal bankruptcy court;
16        (2) if an appraiser has received a final judgment from
17    a court of competent jurisdiction or a federal bankruptcy
18    court has discharged the debt in a bankruptcy proceeding;
19        (3) the unpaid appraisal fee was for an appraisal of
20    real estate located in the State of Illinois; and
21        (4) if no viable alternative for full restitution is
22    available, as determined by the Board.
23    If a federal bankruptcy court has discharged debts for
24expenses, fines, or fees due to or levied by the Department in
25accordance with this Act, the Board shall, prior to making a



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1recommendation to award any State-certified general real
2estate appraiser or State-certified residential real estate
3appraiser any funds, recommend awarding the Department
4sufficient funds from the Appraisal Management Company
5Recovery Fund to pay expenses, fines, or fees due the
6Department from the bankrupt appraisal management company. The
7award shall not exceed $25,000, except as provided in this
9    No funds shall be paid without the approval, in writing, of
10the Secretary.
11    (b) Each fund distribution for restitution shall be made
12payable to the appropriate Illinois resident appraiser as
13approved by the Secretary after consideration of the
14recommendation of the Board. The amount to be paid to the
15appraiser shall equal the actual amount of appraisal fees that
16are proven to be owed to the appraiser by the relevant
17appraisal management company and any reasonable and
18appropriate court costs associated with determining the final
19judgment in favor of the appraiser. If the amount of
20restitution to be paid to any one or more appraisers at any one
21time exceeds the balance in the Appraisal Management Company
22Recovery Fund, the Board, in making its recommendation, shall:
23        (1) distribute as much of the restitution amount as
24    possible, which shall be deemed to satisfy in full any
25    claim the relevant appraisers have on payments from the
26    Appraisal Management Company Recovery Fund; and



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1        (2) in the case of distributions to more than one
2    appraiser, provide for a pro rata distribution of the
3    available fund balance, which shall be deemed to satisfy in
4    full any claim the relevant appraisers have on payments
5    from the Appraisal Management Company Recovery Fund.
6    If, after payment of restitution is made as provided in
7this subsection (b), any funds remain, the Department shall be
8entitled to an award of any amounts remaining owed to the
9Department after payment of the initial $25,000 provided for in
10subsection (a) of this Section.
11    (c) Whenever restitution or an award is paid by the
12Appraisal Management Company Recovery Fund, the Fund shall be
13subrogated to the amount of the restitution or award.
14    (d) The Department shall adopt rules in accordance with the
15Illinois Administrative Procedure Act that impose the fees
16assessed on appraisal management companies under Section 56 of
17this Act whenever the balance of the Fund is less than $500,000
18and shall suspend imposing fees when the balance of the Fund is
19$500,000 or more.
20    (225 ILCS 459/65)
21    Sec. 65. Disciplinary actions.
22    (a) The Department may refuse to issue or renew, or may
23revoke, suspend, place on probation, reprimand, or take other
24disciplinary or non-disciplinary action as the Department may
25deem appropriate, including imposing fines not to exceed



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1$25,000 for each violation, with regard to any registration for
2any one or combination of the following:
3        (1) Material misstatement in furnishing information to
4    the Department.
5        (2) Violations of this Act, or of the rules adopted
6    under this Act.
7        (3) Conviction of, or entry of a plea of guilty or nolo
8    contendere to any crime that is a felony under the laws of
9    the United States or any state or territory thereof or that
10    is a misdemeanor of which an essential element is
11    dishonesty, or any crime that is directly related to the
12    practice of the profession.
13        (4) Making any misrepresentation for the purpose of
14    obtaining registration or violating any provision of this
15    Act or the rules adopted under this Act pertaining to
16    advertising.
17        (5) Professional incompetence.
18        (6) Gross malpractice.
19        (7) Aiding or assisting another person in violating any
20    provision of this Act or rules adopted under this Act.
21        (8) Failing, within 30 days after requested, to provide
22    information in response to a written request made by the
23    Department.
24        (9) Engaging in dishonorable, unethical, or
25    unprofessional conduct of a character likely to deceive,
26    defraud, or harm the public.



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1        (10) Discipline by another state, District of
2    Columbia, territory, or foreign nation, if at least one of
3    the grounds for the discipline is the same or substantially
4    equivalent to those set forth in this Section.
5        (11) A finding by the Department that the registrant,
6    after having his or her registration placed on probationary
7    status, has violated the terms of probation.
8        (12) Willfully making or filing false records or
9    reports in his or her practice, including, but not limited
10    to, false records filed with State agencies or departments.
11        (13) Filing false statements for collection of fees for
12    which services are not rendered.
13        (14) Practicing under a false or, except as provided by
14    law, an assumed name.
15        (15) Fraud or misrepresentation in applying for, or
16    procuring, a registration under this Act or in connection
17    with applying for renewal of a registration under this Act.
18        (16) Being adjudicated liable in a civil proceeding for
19    violation of a state or federal fair housing law.
20        (17) (Blank). Failure to obtain or maintain the bond
21    required under Section 50 of this Act.
22    (b) The Department may refuse to issue or may suspend
23without hearing as provided for in the Civil Administrative
24Code the registration of any person who fails to file a return,
25or to pay the tax, penalty or interest shown in a filed return,
26or to pay any final assessment of the tax, penalty, or interest



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1as required by any tax Act administered by the Illinois
2Department of Revenue, until such time as the requirements of
3any such tax Act are satisfied.
4(Source: P.A. 97-602, eff. 8-26-11.)
5    (225 ILCS 459/50 rep.)
6    Section 20. The Appraisal Management Company Registration
7Act is amended by repealing Section 50.
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".